Burkina Faso: AfricInvest backs insurance company
AfricInvest, an asset management firm for private equity, venture capital and private credit in Africa, announced an investment in the Burkina Faso-based RAYNAL Assurances, one of the leading and most dynamic non-life insurers in the market. The transaction was made through AfricInvest FIVE, an evergreen investment vehicle dedicated to the financial sector in Africa, allowing the exit of the pan-African financial group SUNU, one of the founding shareholders of RAYNAL Assurances.
Since its establishment in 2005 as a partnership between local entrepreneurs and SUNU, RAYNAL Assurances has grown to become the third-largest non-life insurer in Burkina Faso.
The company has developed a comprehensive range of innovative products and services by leveraging its expertise in the automotive, health, transport and fire multi-risk segments, and has built a strong distribution network of brokers and agents.
AfricInvest FIVE’s investment will enhance this distribution model in order to broaden RAYNAL Assurances’ client base – currently at 100,000 end-users – and to further address Burkina Faso’s unserved/underserved population, including a rural population of 15 million as well as 80,000 micro- and small- enterprises (MSMEs).
While it is one of the fastest-growing economies in Africa, Burkina Faso’s expanding population still requires the creation of at least 300,000 new jobs annually to maintain its existing rate of employment. Access to insurance, as provided by RAYNAL, can serve as an important prerequisite for facilitating job-creating private investment by providing protection against downside risks. Provision of an affordable insurance offering that can be digitally distributed is also key to unlocking the high potential of the rural population and MSMEs, which are the main contributors to economic growth in Burkina Faso.
Thanks to its expertise in insurance and technology-enabled finance, AfricInvest FIVE intends to play a significant role in expanding RAYNAL Assurances’ product line and geographic coverage, while shaping the company’s operations for digitally-infused development and strengthening the governance framework to drive the agreed-upon transformation strategy.
Seydou Diakité, founder and chairman of RAYNAL Assurances commented, “Thanks to the unique skills and the commitment of its team, RAYNAL Assurances has built a strong brand, offering some of the best insurance products and services in Burkina Faso. With the support of AfricInvest FIVE and its deep financial sector knowledge across Africa, we will fast-track our digital transformation agenda to better serve our loyal customers and emerge as a leading institution in Burkina Faso and beyond.”
Omar Bekkali, partner at AfricInvest, who will represent the fund on the board of RAYNAL Assurances commented, “We are pleased to partner with RAYNAL Assurances in its transformative strategy to become a key player in Burkina Faso’s insurance ecosystem. The transaction is reflective of the type of investments AfricInvest FIVE pursues, with an emphasis on financial inclusion and with clear visibility on strong returns for stakeholders. We are excited to play a part in this journey and will be fully supportive by leveraging our network and expertise.”
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