Connecting Africa is part of the Informa Tech Division of Informa PLC

This site is operated by a business or businesses owned by Informa PLC and all copyright resides with them. Informa PLC's registered office is 5 Howick Place, London SW1P 1WG. Registered in England and Wales. Number 3099067.

FinTech

MTN, Sanlam receive approvals for insurtech partnership

Article Image
Telecoms giant MTN Group and pan-African financial services firm Sanlam are following through on a strategic alliance to market and distribute digital insurance and investment products across Africa.

This partnership idea has been on the cards since August 2021 and has now received all of the regulatory and competition approvals needed and the transaction was official as of October 31, 2022.

The two companies said the strategic alliance will be implemented through MTN Group's insurtech platform aYo Holdings and 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 people who have typically been unable to access traditional distribution channels," the groups said in a statement.

Fintech for all

MTN Group President and CEO Ralph Mupita said he was confident that the alliance will build and leverage the strengths and assets of both companies to establish a digital insurance and investment capability across Africa.

"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," added Sanlam Group CEO Paul Hanratty.

Sanlam believes the partnership "will make a considerable contribution to financial inclusion in Africa".

Many Africa operators are seeing success in the mobile financial services and fintech space and are rolling out more products and services to users across areas like insurance, loans, payments and e-wallets.

MTN's insurtech business reached 17.9 million registered aYo policies by the end of June 2022, up by 31.9% year-on-year (YoY), and is targeting 30 million policyholders by 2025.

In total, aYo generated $2.8 million in service revenue and $4.7 million in premium income during the first six months of 2022 and MTN believes the Sanlam partnership will further accelerate its insurtech growth on the continent into 2023.


Want to know more about mobile financial services in Africa? Check out our dedicated Fintech content channel here on Connecting Africa.


By leveraging the MTN brand, Sanlam's licensing, broad product capabilities, financial services expertise and both group's geographical footprint across the continent, "the alliance has the potential to pre-empt and adapt to digital disruption in markets where both companies operate," the groups added.

MTN operates in 17 markets across Africa while Sanlam has a direct stake in financial services entities in 13 African nations and a footprint of insurance operations in 18 markets on the continent.

Related posts:

*Top image source: Image by pressfoto on Freepik.

— Paula Gilbert, Editor, Connecting Africa

Innovation hub

Story

Hot startup of the month: Pan-African fintech KamaPay

This month's hot startup is pan-African fintech KamaPay, which helps individuals and businesses make cross-border payments on the continent.

Story

Afretec awards $3.3M in grants to African research teams

The African Engineering and Technology Network (Afretec) has awarded grants worth $300,000 each to 11 university research teams across Africa to advance digital technologies.

More Innovation hub

Latest video

More videos

Sponsored video

More videos

Industry announcements

More Industry announcements

Flash poll

All polls

Africa Tech Perspectives

Story

Deep dive into East Africa's tech startup ecosystem

New survey reveals a lack of access to investors, reliance on international VCs and global recession trends as the biggest barriers for East African tech startups to access funds.

Story

Challenges and opportunities for women's tech careers

A new survey reveals that COVID-19, the cost-of-living crisis, skills shortages and a lack of mentorship have negatively affected women's career development over the past two years.

Story

Survey: Opportunities for Women in Tech

Take our new survey for women across Asia, Europe and Africa looking at the biggest challenges and opportunities for women-led enterprises and trends in tech careers for women.

More AfricaCom perspectives

Upcoming events

London Tech Week
June 13-16, 2023
Queen Elizabeth II Centre, Broad Sanctuary, London SW1P 3EE
Cybertech Africa 2023
August 1-2, 2023
Kigali Convention Center, Kigali, Rwanda
Africa Tech Festival, Home of AfricaCom and AfricaTech
November 13-16, 2023
CTICC, Cape Town
More Upcoming events

Guest Perspectives

Story

Omdia View: February 2023

By Omdia Analysts

In February 2023 key events in the Middle East and Africa included a major Internet project for Africa's underserved by Liquid Intelligent Technologies and Microsoft as well as a 5G launch in Tanzania – that and more in this month's Omdia View.

Story

Omdia View: July 2022

By Omdia Analysts

Kenya and Zambia move towards 5G with new spectrum allocations while Tunisie Telecom plans to shut down its 3G network - that and more in this month's Omdia View.

More Guest Perspectives

Partner perspectives

All Partner Perspectives

Like us on Facebook

Newsletter Sign Up


Sign Up