The largest non-banking financial services group in Africa, Sanlam, and leading emerging market operator MTN Group have confirmed a strategic alliance to market and distribute insurance as well as investment products across Africa.
The initiative has reached a significant milestone with the fulfilment of the regulatory, competition and other requirements, with the effective transaction set at 31 October 2022.
The strategic alliance is being implemented
through MTN Group’s InsurTech platform, aYo Holdings (aYo), where each partner will hold 50% of aYo. Through aYo, the alliance will continue to
build and develop digital insurance and investment offerings that provide people across Africa with easier access to Sanlam’s products, particularly those who have typically been unable to access traditional distribution channels.
MTN Group President and CEO Ralph Mupita said the alliance was aligned to the Group’s strategic intent to lead digital solutions for Africa’s progress: “We are confident that this alliance will build and leverage the strengths and assets of both companies to establish a digital insurance and investment capability across Africa”.
Said Sanlam Group CEO, Paul Hanratty: “We are delighted to reach such a critical stage in our drive to deepen penetration of insurance and investment products across Africa through strategic partnerships”.
“We are confident that a strong foundation is in place for this alliance. Sanlam believes this strategic alliance with the MTN Group will make a considerable contribution to financial inclusion in Africa,” Hanratty added.
It is envisaged that by leveraging off the MTN brand, Sanlam’s licensing, broad product capabilities, financial services expertise and both groups’ geographical footprint across the continent, the alliance has the potential to pre-empt and adapt to digital disruption in markets where both companies operate.
Launched in 1994, MTN Group is a leading emerging market operator with a vision to lead the delivery of a new digital world to African customers.
The MTN Group is listed on the JSE Securities Exchange in South Africa.
Sanlam is a pan-African financial services group listed on the Johannesburg, Namibian and A2X stock exchanges.
Headquartered in South Africa, Sanlam has a direct stake in financial services entities in Namibia, Botswana, Swaziland, Zimbabwe, Mozambique, Mauritius, Malawi, Zambia, Tanzania, Rwanda, Uganda, Kenya and Nigeria.
The Group also has a footprint of insurance operations in Morocco, Angola, Algeria, Tunisia, Ghana, Niger, Mali, Senegal, Burkina Faso, Cote D’Ivoire, Togo, Benin, Cameroon, Gabon, Republic of the Congo, Madagascar, Burundi and Lesotho.
Sanlam also has business interests in India, Malaysia and the United Kingdom as well as a presence in a number of developed markets.