/ 17 May 2006

Discovery sets up presence in Soweto

Discovery, one of South Africa’s fastest-growing financial-services companies and a leader in the life and health sectors, has once again broken new ground with the opening of a franchise-distribution facility in Soweto.

The Discovery Consulting Services (DCS) branch will service the needs of financial advisers in greater Soweto, through Discovery’s unique franchise model.

There are now 32 independently owned Discovery Consulting Services franchises (including DCS Soweto) across South Africa, which provide information, service and marketing support to the roughly 6 000 independent intermediaries who sell Discovery’s products. Discovery believes this entrepreneurial approach allows it to attract the best people to look after its distribution requirements and is more cost-efficient.

While official statistics place its population at about 900 000, unofficial estimates place it closer to the 3-million mark. Soweto is increasingly being seen by business as a major economic hub. A number of exciting property developments have been announced lately, and there is no doubt more businesses will move into the area in future.

According to the City of Johannesburg’s website, the Soweto Development Initiative is focusing its energies on economic development and encouraging private-sector investment in the area. It puts the combined annual buying power of Soweto residents somewhere in the region of R10-billion a year.

Hylton Kallner, general manager of marketing and distribution, says Discovery is committed to growing the number of South Africans covered by medical schemes in South Africa. “Our target will be the lower- and middle-income groups, many of whom earn salaries but are currently not covered by a medical scheme. Through building a financial-adviser network in Soweto, we can play a role in educating consumers on the importance of medical cover.” — I-Net Bridge