However, Botha added that his company, which manages Botsogo Health Plan, was here to stay in the market.
African Life Health Botswana entered the health care market last year, with a different market strategy from its peers.
Its over 20, 000 clients do not pay 10 percent upfront to get medical help as their competitors do.
Since its entrance, questions were asked about its ability to cope in the market, but Botha remained optimistic.
“We are not fly by nights and we have capital. We are here to stay”, he said.
Meanwhile, Botha announced the finalisation of the merger between ALH and Momentum. The deal, which cost Momentum R186 million, was approved by the South African Competition Commission, with the effective date for acquisition being February 9.
He said the deal would result in the establishment of a holding company under the Botswana International Financial Services Centre (IFSC).
He added that Momentum and ALH share a vision of consolidating the market and growth by acquisition.
“This is a win-win deal for both parties and gives ALH access to a large capital concerned Momentum base, while ALH on the other hand provides Momentum with an entree to new market segments in Africa where we are making strong headway in countries such as Botswana, Zambia, Tanzania, Ghana, Kenya, Lesotho and Mozambique. Our clients can furthermore look forward to becoming part of one of the most innovative and successful companies in the market. They stand to benefit in particular because of their access to our extensive product ranges,” explained Botha.
He added however that there would be no change of name under the deal as it is an emerging strong brand. However there would be a holding company in Botswana.
He noted that they chose Botswana for the holding company because IFSC has a tax incentive package and there is also access to Botswana’s double taxation treaty network amongst others.
Under the arrangement, there will be a merger of staff between ALH and Momentum. Equally, under the deal there will be no change of management and shareholders. Meanwhile, the general manager for African Life Health Botswana, Odirile Merafhe was excited about his company merger with Momentum.
“It is everything for a business of our nature to get a backing from a reputable company like Momentum,” he said.
