MTN Group and financial services provider MMI Holdings have announced they’re creating a new joint venture, branded aYo, to deliver micro insurance solutions across Africa.
Insurance penetration is low in many countries on the continent, and using the resources of MMI and MTN, aYo will improve this by offering “relevant, accessible and easy-to-use insurance solutions to consumers”, the companies said in a joint statement on Wednesday.
MTN group chief digital officer Herman Singh said the deal will allow the telecommunications operator to further expand its mobile financial services offerings across its footprint.
MMI group chief operating officer Danie Botes said the tie-up will create new revenue streams for the insurer through finding opportunities in new markets and segments.
The aYo offering will be rolled out in a number of African countries from the end of 2016, the companies said, without providing more details.
The partnership comes as MTN ups its focus on the financial services sector.
Apart from hiring Singh last year — he previously headed the innovation business inside Standard Bank before joining MTN rival Vodacom — the group recently appointed Absa Corporate and Investment Bank head Stephen van Coller as vice-president of strategy and mergers & acquisitions. And Vodafone executive Rob Shuter, who has extensive experience in financial services, will take over as MTN’s new group CEO in mid-2017. — © 2016 NewsCentral Media