Global leader in insurance and asset management, AXA, has acquired an 8 per cent minority equity in Africa Internet Group (AIG).
This move is in an effort to strengthen its insurance and financial solutions across the continent.
The additional capital contributed by AXA will further strengthen the balance sheet and support AIG’s continued growth.
Jumia, AIG’s main subsidiary, is currently present in 11 African markets and grew its transaction volume by 265 per cent during the first nine months of 2015 to reach €206 million.
The two companies said yesterday that AXA 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 customs-made insurance products to Jumia and AIG’s e-commerce 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, rise in middle class, urbanisation as well as its youth population.