Into Africa
For all its strength in neighbouring countries, Old Mutual remains a newcomer in much of Africa. The big green has increased its footprint and become a genuine pan-African organisation after signing an enhanced strategic agreement with Ecobank.
Ecobank — based in Lomé, Togo — is already connected to Old Mutual, as the latter’s subsidiary, Nedbank, owns 20% of the banking group. Ecobank has operations in countries where Old Mutual is virtually unknown, including Chad, Guinea-Bissau and the Central African Republic. It has 1,200 branches and 20,000 staff.
The agreement promises convenient access to insurance products for Ecobank clients, initially where both groups have operations. The product set will include life insurance, savings and short-term insurance. Many of these products will be adapted from existing SA products, particularly from the set designed by the low-income Mass & Foundation Cluster. And much of the “back end” investment management will be carried out by the Old Mutual Investment Group.
There could also be opportunities for institutional businesses such as employee benefits, as Ecobank serves governments and financial institutions.
Ecobank CE Ade Ayeyemi says the plan for the integrated model includes providing access to Old Mutual products through Ecobank’s banking operations in selected countries. The two groups between them will offer holistic financial services.
Old Mutual Emerging Markets CE Ralph Mupita says that it is in the mutual interest of both groups to ensure that this alliance grows from strength to strength.
“We look to complement Ecobank’s range of banking services to its customers with Old Mutual’s financial products across the bank network.”
Old Mutual has recently expanded its own distribution in Kenya, Ghana and Nigeria.