South African organization Urban Ubuntu provides funeral insurance services to Africa's diaspora communities.
Urban Ubuntu, a groundbreaking platform founded in Pretoria in 2019, is gearing up for its launch in November. The service, designed with the unique needs of the African diaspora in mind, aims to address the financial challenges faced by diaspora families, particularly in relation to funeral expenses.
The platform's services include AI-driven cultural rite-matching, blockchain-backed transparency, and diaspora-friendly payments such as M-Pesa, forex, and banking apps. Urban Ubuntu's partners, including Old Mutual, AVBOB, Kenbright, and KEDASA SACCO, have shown their support for this innovative venture.
According to a survey, 70% of diaspora respondents have expressed interest in culturally tailored funeral cover. Shingie Maramba, the founder of Urban Ubuntu, highlights that traditional insurance providers often lack cultural sensitivity, fast payouts, and mobile-first convenience. He points out that funerals can cost anywhere between US$7,000 and US$10,000 per case, making it a significant financial burden for many families.
Urban Ubuntu aims to redirect a portion of the US$5 billion in annual remittances flowing into Kenya into structured funeral cover that is affordable, customizable, and digital. The initial target market for expansion includes 5,000 Kenyans in South Africa, with plans to target Kenyans in the United States, Europe, and Australia, followed by expansion into Old Mutual's 14 markets in Africa.
KEDASA and other partners have plans to co-brand and distribute Urban Ubuntu's policies. The platform's design allows for scalability across Africa and the diaspora due to its multi-lingual, low-bandwidth features, making it accessible to a wide audience.
Urban Ubuntu's revenue comes from a 10% commission on premiums, 8% from sales and servicing, and 2% from infrastructure and platform use. Projected uptake for Urban Ubuntu in year one is between 15,000 and 20,000 policies. Funding for Urban Ubuntu has come through seed and bridge rounds to support the November go-live.
Despite having competitors, Maramba states that none fully address the diaspora gap. Urban Ubuntu's services are expected to go live in November, with plans to target various international markets in the following year. The search results do not provide information on the names of partners supporting Urban Ubuntu in countries outside South Africa for expansion to Kenyans in the USA, Europe, and Australia. However, with its innovative approach and strong early traction, Urban Ubuntu is poised to make a significant impact in the funeral services industry for the African diaspora.
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