Sanlam, a pan-African insurance company, has teamed up with MTN Group, a multinational telecommunications company, to sell insurance and investment products all over Africa.
Since all the regulatory, competition and other requirements have been met, the transaction will go into effect on Monday, October 31. This was said in a press release from the second group on Tuesday.
Customers can purchase insurance products from Sanlam through the MTN mobile app, website, and USSD platforms. Sanlam is widely considered a significant insurer operating on the African continent.
This will make it possible to build and improve digital insurance and investment products. This partnership started in 2019 when MTN South Africa worked with the company to enable financial services to be used on MTN’s digital platforms.
According to a statement seen by FintechPad, the strategic alliance will be carried out through MTN Group’s insurtech platform, aYo Holdings (aYo), and both parties will get 50% of aYo.
The alliance will continue to build and develop digital insurance and investment offerings through a platform called aYo. These offerings will give people in Africa easier access to Sanlam’s products, particularly those who have traditionally been unable to access traditional distribution channels.
Ralph Mupita, President and CEO of MTN Group, said the partnership was part of MTN’s plan to lead digital solutions for Africa’s progress.
“We are optimistic that this agreement will build on and exploit both firms’ capabilities and assets to construct a digital insurance and investment capability across Africa,” he added.
Sanlam Group CEO Paul Hanratty commented on the news, saying, “We are convinced that a robust basis is in place for this cooperation.” Sanlam thinks its strategic partnership with the MTN Group would significantly contribute to financial inclusion in Africa.”