Sanlam,MTN Group partners to provide insurance and investment products in Africa

Pan-African financial services Group Sanlam and telecommunications group MTN Group alliance to distribute insurance and investment products in Africa has been approved.

This is after the two groups fulfilled the regulatory and competition requirements among others thus receiving the nod to transact business effective October 31.

The strategic alliance will be implemented via MTN Group’s InsurTech platform aYo Holdings (aYo) where the two will hold 50 per cent of aYo.

Through the platform, the alliance will continue to build and develop insurance and investment offerings that will provide easier access to Sanlam’s products, especially to those who can’t access the products through the traditional distribution channels.

MTN Group President and Chief Executive Officer (CEO) Ralph Mupita said the alliance was in sync with 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 Mupita.

Sanlam Group CEO Paul Hanratty on his part noted that the pact will play a crucial role in not only ensuring that insurance products reach different parts of the continent but also contribute to the continent’s financial inclusion.

“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 that this strategic alliance with the MTN Group will make a considerable contribution to financial inclusion in Africa,” said Hanratty.

The alliance has the potential to pre-empt and adapt to digital disruption in the market by leveraging on MTN’s brand, Sanlam’s licensing, financial services expertise, and both group’s geographical footprint in Africa.