Sanlam’s Partnership with MTN’s aYo Holdings Receives Approval from Regulatory Authorities
Regulatory authorities have approved the partnership between Sanlam and aYo Holdings, the insurtech platform owned by MTN Group. This opens the door for the two companies to create and expand digital insurance and investment solutions. Today, MTN declared that the strategic alliance has accomplished a major milestone by satisfying the regulatory, competitive, and other conditions. The transaction went into effect on October 31, 2022.
The largest insurer in Africa, Sanlam, will make its insurance products available on MTN’s mobile app, internet, and USSD platforms as a result of the cooperation.
Recall that MTN and Sanlam, a financial services company listed on the JSE, agreed to offer a variety of financial services through MTN’s digital platforms in 2019. The mobile provider has now revealed that the strategic partnership will be conducted through MTN Group’s insurtech platform aYo Holdings, with a 50% stake for each partner.
According to MTN, the partnership “will continue to grow and enhance digital insurance and investment options that enable people across Africa with simpler access to Sanlam’s products, particularly those who have previously been unable to access traditional distribution channels.”
Ralph Mupita, group president and CEO of MTN, speaking said that the firm was sure that the agreement will strengthen and use the strengths and resources of both companies to construct a digital insurance and investment capability across Africa.
The agreement, he continues, was in line with the group’s strategic goal of taking the lead on digital solutions for Africa’s advancement.
Sanlam group CEO Paul Hanratty says he is delighted to reach such a critical stage in the company’s 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.
“By leveraging off 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,” says Hanratty.