Supporting South African initiative, Urban Ubuntu, offers funeral insurance to the African diaspora
New South African Startup Aims to Revolutionize Funeral and Repatriation Insurance for African Diaspora
Urban Ubuntu, a South African startup founded in 2019 by Shingie Maramba, is set to disrupt the insurance industry with a mobile-first, culturally sensitive, and convenient platform designed specifically for the African diaspora, particularly the Kenyan community in South Africa.
The platform aims to address the cultural and financial needs of a significant, underserved group with deep cultural ties and a high financial burden related to funerals and repatriations. Urban Ubuntu plans to redirect a portion of the US$5 billion in annual remittances flowing into Kenya into structured funeral cover that is affordable, customisable, and digital.
According to Maramba, while competitors exist, none address the diaspora gap fully. Urban Ubuntu's services blend AI-driven cultural rite-matching, blockchain-backed transparency, and diaspora-friendly payments like M-Pesa, forex, and banking apps. The platform's design is multi-lingual and low-bandwidth, making scaling across Africa and the diaspora practical.
Projected uptake for Urban Ubuntu's policies in the first year is between 15,000 and 20,000, with 5,000 of those being Kenyans in South Africa. Funerals for diaspora families can cost between US$7,000 and US$10,000, and traditional insurance providers are criticized for lacking cultural sensitivity, fast payouts, and mobile-first convenience.
Urban Ubuntu is supported by partners such as Old Mutual (underwriting), AVBOB (repatriation), Kenbright (24/7 call centre), and KEDASA SACCO (distribution). Seventy percent of surveyed diaspora respondents have shown interest in culturally tailored funeral cover offered by Urban Ubuntu.
The total value of remittances in Africa targeted by Urban Ubuntu is approximately US$30 billion annually. The plan is to target and expand into markets beyond South Africa, with a focus on diaspora communities and African markets. The target market for Urban Ubuntu's expansion includes Kenyans in the United States, Europe, and Australia, followed by Old Mutual's 14 markets in Africa.
KEDASA and other entities have expressed interest in co-branding and distributing Urban Ubuntu's policies. Funding for Urban Ubuntu has been through seed and bridge rounds to support the November go-live. Although still in the pre-launch phase, early traction for Urban Ubuntu is strong.
Urban Ubuntu generates revenue through a 10% commission on premiums, 8% from sales and servicing, and 2% from infrastructure and platform use. The startup's design and services are intended to offer mobile-first convenience, fast payouts, and cultural sensitivity, addressing criticisms leveled at traditional insurance providers.
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