Capitalworks acquires Aon’s Africa operations

Capitalworks, the private equity group that will soon delist Sovereign Foods from the JSE, has taken ownership of insurance broker Aon plc’s operations in 10 African countries for an undisclosed amount.

The deal, first announced in February, was finalised on November 3, with the new group, named Minet, unveiled in Kenya on Tuesday. The transaction adds Africa’s largest risk and human capital advisory network to Capitalworks’s investment portfolio, which includes Rhodes Food Group, IQ Business and MTN Nigeria.

Aon consults on insurance, retirement and employee benefits solutions.

Regulatory approvals had been obtained in Kenya, Lesotho, Malawi, Namibia, Uganda and Zambia, Capitalworks said on Tuesday. Approvals for Mozambique, Angola, Swaziland and Tanzania were expected in 2018.

SA and Botswana were excluded from the transaction. Aon did not give reasons for this at the time of publication.

Africa’s growing middle class is expected to yield opportunities for banks and insurance companies, particularly as penetration of financial services remains low in many African countries. The continent is expected to grow 3.4% in 2017 and 4.3% in 2018.

“We are specifically looking to take advantage of opportunities to find solutions for the various local market needs and securing Africa’s growing middle class,” said Garth Willis, principal at Capitalworks and Minet Group chairman.

Joe Onsando, CEO of Aon sub-Saharan Africa, would stay on as CEO of Minet Group.