Sanlam, MTN partner to deepen insurance penetration in Africa

Sanlam and MTN have recently announced a strategic insurtech alliance to distribute insurance and investment products across Africa, aiming to extend consumer access and drive financial inclusion on the continent. The joint venture will offer a range of insurance products, including short-term life products and savings options, through the MTN application ecosystem. With Sanlam providing the insurance and asset management expertise, and MTN focusing on marketing and sales, the partnership is poised to leverage MTN's vast customer base of 270 million users, 50 million mobile banking customers, and 180,000 agents across Africa. This collaboration represents a new model of partnership between a telecom company and an insurance provider, signaling a potential shift in the industry landscape in Africa. The initial investment of $50 million from both Sanlam and MTN demonstrates a long-term commitment to the venture, with the goal of reaching millions of customers with tailored financial services. While the alliance may not yield immediate profits, the partners are looking at long-term targets to create value and promote financial inclusion for the African population.