South Africa’s Liberty to buy 75% stake in Nigerian insurer

South Africa’s Liberty Holdings will acquire a 75 percent stake in a Nigerian long-term insurer for $12 million, the company said. The acquisition is to enable the insurer to pursue its strategy of expanding into the West Africa region.

Liberty has been expanding beyond its home base to parts of Africa, where demand is rising from a growing middle class.

Part of Liberty’s strategy is to grow its presence in West Africa through the long-term insurance business and entering the asset management business.

“We see Nigeria as a market of the future,” Liberty Chief Executive Thabo Dloti told Reuters.

“It may be having difficulties now, but everything indicates to us that in the long term, Nigeria is going to be a big contributor of growth if you are doing business in Sub-Saharan Africa.”

Liberty, South Africa’s fourth biggest insurance firm by market value, already has presence in Nigeria through Total Health Trust.