By Peter OBIORA InvestAdvocate

Lagos (INVESTADVOCATE)-South African insurer Sanlam said it has acquired a 40 percent stake in a unit of Ghana’s Enterprise Insurance Company worth $21 million in its latest move to expand in fast-growing sub-Saharan markets, according to a Reuters report.

The unit acquired is Enterprise’s non-life insurance business, one of the biggest in Ghana, Reuters quoted Sanlam saying in a statement on Wednesday.

The deal remains subject to regulatory approval in Ghana, Sanlam said.

According to the report, Sanlam, South Africa’s top insurer by market value already owns 49 percent of Enterprise’s life insurance business and 40 percent of its pension fund administration arm.

Johan van Zyl, Sanlam’s chief executive officer (CEO) according to Reuters last month said the South African firm has 3.3 billion rand set aside for expansion in India and Africa, adding it was looking for possible acquisitions in both Ghana and Kenya.

The report further affirmed that South African companies are looking to tap the rising middle class in sub-Saharan Africa to offset slower growth in the country.

‘’Market penetration for insurers in Ghana is 1.1 percent, the market has grown at an annual average of 26 percent over the past five years,’’ Sanlam said.

Sanlam has operations at least 10 other African countries, including Nigeria.