Proparco, the private financing arm of Group Agence Française de Développement (AFD Group), has agreed to invest $10m in MUA, a regional insurer with operations in Mauritius, Kenya, Uganda, Rwanda, Tanzania, and the Seychelles.

The investment represents a landmark partnership between Proparco and MUA, with the strategic investor being the largest international investor of its kind in the regional insurance group.

Djalal Khimdjee, Proparco’s Deputy CEO, said: “This strategic investment testifies to Proparco's confidence in MUA and its potential to contribute to the growth of the insurance industry in Africa, while pursuing its transformation into a marketleading sustainable insurer.”

“We are pleased to make this investment, which highlights Proparco’s longstanding dedication to backing African insurance players committed to sustainable development. MUA’s experienced and committed team, as well as its strong risk management culture and underwriting capabilities have given resilience to the company during the covid-19 crisis and will be key assets to realize its ambitious strategic objectives over the coming years.”

Proparco has been promoting sustainable economic, social, and environmental development practices for over 40 years.

This long-term strategic partnership will strengthen MUA’s ability to improve insurance coverage in Africa and accelerate the group’s digital transformation.

Proparco will also contribute to the MUA’s governance and value creation through the appointment of one board member to the Board of Directors of MUA.

Through previous investments in the region, Proparco has demonstrated a capacity to mobilise considerable resources and facilitate partnerships, creating opportunities to strengthen business relationships and position investees as leaders in their respective industries.

Proparco’s mandate is to foster private investment in emerging and developing economies with the aim of supporting growth and sustainability, and as such is aligned with MUA’s strategy of being a sustainable and responsible insurer as outlined in the group’s current 3-year strategic plan, TRANSITION 2023.

MUA is a leading insurer in the region and is part of the GLOBUS Pan-African insurance network.

Over the past year, MUA has launched its 3-year strategic plan, TRANSITION 2023, been included in the Stock Exchange of Mauritius’ Sustainability Index (SEMSI) and defined its Socially Responsible Investment Policy.

The strategic investor aims to facilitate and assist with further improvements to MUA’s environmental, social and governance initiatives.

“We are looking forward to working with Proparco to strengthen the group’s financial capacity and expand insurance coverage in East Africa. As we embark on a new phase of our regional journey with this respected partner, we aim to deliver on our sustainability objectives and have a greater social impact. Along with the equity proceeds, Proparco brings its considerable regional experience, world-class capabilities and an extensive cross-sector network,” said MUA Group CEO, Bertrand Casteres.