Africa News - Nigeria: AXA buys 8% stake in Africa Internet Group
Source: Middle East Insurance Review | Mar 2016
AXA said it is investing EUR75 million (US$84 million) for a stake of approximately 8% in Nigeria-headquartered Africa Internet Group (AIG), which owns e-commerce company Jumia and nine other e-ventures in Africa.
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. The additional capital contributed by AXA will further strengthen the balance sheet and support AIG’s continued growth. Other partner investors in AIG include Africa’s largest mobile operator MTN, Swedish telecoms conglomerate Millicom, and Rocket Internet.
AXA will become the exclusive provider of insurance products and services through Jumia and other AIG online and mobile platforms in Africa. It is present in six African countries currently – Morocco, Algeria, Egypt, Cameroon, Ivory Coast and Senegal.
Mr Denis Duverne, AXA’s Deputy CEO, said: “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 e-commerce technology.”
Mr Sacha Poignonnec and Jeremy Hodara, founders and co-CEOs of Jumia and AIG, said: “We expect Africa’s e-commerce 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.”
AXA’s African insurance companies plan to propose custom-made insurance products to Jumia and AIG’s e-commerce client base through its ecosystem of marketplaces and classifieds services.
EUR1 = US$1.11