Liberty Health targets Africa for growth
July 13, 2009
By SLINDILE KHANYILE
Liberty Health expected to start generating more revenue from other parts of Africa than in South Africa because growth prospects in the continent were huge, Peter Botha, the chief executive of the medical aid administrator, said on Friday.
At present, two-thirds of revenue comes from South Africa while one-third is from Africa, although Botha refused to divulge the overall figure.
He said income locally would remain flat unless it secured more medical schemes.
Liberty Health was established 18 months ago and it covers 485 000 lives across Africa.
The strategy had always been to look at emerging markets that had large populations, Botha said.
The focus for now is in the 17 countries where Standard Bank has a presence as it wants to leverage off the brand and the footprint. In the next three years it will also look at developing markets outside Africa.
Standard Bank owns 53.7 percent of Liberty Group, of which Liberty Health is a subsidiary. The bank has a presence in countries that include Rwanda, Burundi, Tanzania, Zimbabwe, Angola, Mozambique and Botswana.
"Growth prospects in Africa are huge because there is a demand for health insurance plans," Botha said.
For now, Liberty Health has a strong presence in east and west Africa. The company acquired a stake in THT, a health maintenance business in Nigeria, for R35-million.
It has an agreement with Ugamed in Uganda, as well as CFC in Kenya. The company has developed Liberty Health Blue, an international health insurance product for Standard Bank employees in Africa.
Botha said the effect of the economic downturn had not been significant. He said the market in South Africa was consolidating and the company was talking to some schemes about possible mergers.
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