Africa Internet Group (AIG), a leading e-commerce group in Africa, and AXA, a worldwide leader in insurance and asset management, have announced a partnership whereby the latter will become the exclusive provider of insurance products and services through Jumia and other AIG online and mobile platforms in Africa.
Going forward, AXA’s African insurance companies plan to propose custom-made insurance products to Jumia and AIG’s ecommerce client base through its ecosystem of marketplaces and classifieds services.
As part of the partnership, AXA will also become a shareholder of AIG, along with MTN, Rocket Internet and Millicom. AXA and Jumia view Africa as a fast developing market for financial services and insurance products, benefitting from strong fundamentals such as low penetration rates, a rise in middle class, urbanisation and the general youth of its population.
“Internet is creating unparalleled opportunities for consumers and businesses in Africa to connect and do business in a new way. We continue to be very excited about the growth prospects of Jumia and this new partnership will enable us to capture them,” said Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and AIG. “We expect Africa’s ecommerce and online businesses to develop rapidly as a result of the strong growth of the middle class coupled with the increasing mobile phone and internet penetration.
“With Rocket Internet’s extensive background in online business models, MTN as leading mobile carrier with its broad African presence, and now the partnership with AXA in insurance products and services, we are in a great position to continue to innovate and connect businesses to the fast growing consumer demand.”
Denis Duverne, Deputy CEO of AXA added: "This transaction confirms AXA's long-term commitment towards the African markets and represents another step in our development on the continent.
“Africa is home to some of the most dynamic and promising insurance markets in the world and our partnership with Africa Internet Group will enable us to accelerate materially our development by having access to their rich customer base and to their state-of-the-art ecommerce technology.
“Going forward, we aim to enable African consumers to better access insurance solutions to create sustainable financial wellbeing throughout their lives and those of their dependants.”
As a result of the transaction, AXA will invest €75 million and own approximately eight percent of the capital of AIG. Completion of the transaction is subject to customary closing conditions, including the closing of the previous investment round, and is expected to take place in the first quarter of 2016.