It looks like Sanlam and MTN are getting into bed together.
The two conglomerates said on Tuesday that their strategic alliance to market and distribute insurance and investment products across Africa had reached a significant milestone.
In a statement, the companies said that they had achieved the fulfilment of the regulatory, competition and other requirements.
The effective date of the transaction is 31 October 2022.
“The strategic alliance will be implemented through MTN Group’s InsurTech platform aYo Holdings (aYo), and each partner will hold 50% of aYo,” the statement said.
“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.”
“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,” MTN Group President and CEO Ralph Mupita said.
“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,” Sanlam Group CEO Paul Hanratty said.
“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.”
BUSINESS REPORT