FSG’s bold regional expansion plans
Lewanika Timothy | Monday May 12, 2025 20:10
Homegrown funeral services giant, FSG Limited, is aiming to expand further beyond the country’s borders in search of growth.
FSG Group Managing Director, Fergus Ferguson, says Zambia is one destination the group wants to achieve success in. This will be driven by knowledge transfer to the Zambian market from lessons learnt from at home in Botswana.
This week, the group MD said that the business also seeks to grow its insurance division more, which is currently its main revenue driver.
Mmegi: Recently FSG said that it was planning to triple the value of its business through regional expansions. How are these targeted markets performing? Ferguson: FSG has made significant strides in expanding its footprint across several key regional markets. As indicated in the company's regional expansion strategy, it currently operates in Botswana, Zambia, and South Africa, with a presence of over 40 branches across these regions.
The targeted markets are performing well, as FSG continues to offer a broad range of funeral services, positioning itself as the leading funeral services provider in Botswana and gaining considerable ground in Zambia and South Africa. Further, the continued growth of our Insurance business provides significant opportunity for future cross sell of products. These regions are integral to the company’s long-term growth strategy.
Mmegi: Does FSG plan to enter new markets in the short-term horizon and are there any plans to exit some markets. Ferguson: FSG is actively pursuing further regional expansion to enhance its market share, with Zambia and South Africa being key areas of focus for growth. However, as of the latest available insights, there is no indication of plans to exit any current markets. The company remains committed to expanding its presence and adapting to evolving market dynamics, with no immediate market exit strategies being disclosed at this stage
Mmegi: Does FSG have any other regional expansion and is there a specific budget set aside for that? Ferguson: FSG’s expansion strategy is ongoing, with a clear focus on maintaining its competitive edge within its current operational regions. FSG is strongly capitalised and continues to actively assess opportunities as they arise. FSG’s commitment to geographical growth and market penetration is evident from its growing presence across southern Africa. As a part of its regional strategy, the company continues to invest in strengthening its infrastructure and services.
Mmegi: Given liquidity pressures that have been facing the economy recently, is FSG directly feeling the impact of the economic pressures facing citizens?
Ferguson: FSG, operating within the funeral services and insurance sector, is indirectly influenced by the broader economic pressures that impact citizens, particularly in Botswana. The liquidity challenges faced by the economy may affect consumer spending habits, including funeral-related services, although FSG remains well-positioned with its diversified service offerings to navigate these challenges.
The company continues to offer products designed to alleviate financial pressure for families during difficult times, which positions it favourably even during economic downturns.
Mmegi: Does FSG have any capital raising activities planned in the short to medium term and are you able to share more on these? Ferguson: Currently, there are no plans for capital raising. The company is in a strong position to fund its growth ambitions in the short to medium term. However, the company’s ongoing expansion and strategic investment into regional markets indicate that it may explore capital-raising options as part of its broader growth strategy. Any future plans for fundraising are likely to be linked to sustaining its ambitious expansion goals and enhancing service delivery
Mmegi: Kindly comment on the funeral insurance sector and the levels of competition. How is FSG keeping ahead of competitors both locally and regionally? Ferguson: The funeral insurance sector remains highly competitive, both locally and regionally. FSG is well-positioned within this space due to its strong brand presence, a comprehensive range of insurance products, and its commitment to providing a high level of customer service.
FSG continues to differentiate itself through its customer-centric approach, offering affordable solutions and ensuring peace of mind for families during critical moments. The company’s ability to adapt to the changing needs of the market, along with its established reputation, helps it stay ahead of competitors in the region.