AfricInvest, a leading asset management firm for Private Equity, Venture Capital and Private Credit in Africa, is pleased to announce an investment in the Burkina Faso-based RAYNAL Assurances IARD Burkina Faso (“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). Providing appropriately designed insurance products to these segments contributes to improving financial resilience and fostering greater investment.
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 FVIE 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.”
For the transaction, RAYNAL Assurances and AfricInvest FIVE have been advised by CMS Francis Lefebvre and by Grant Thornton on legal and financial/tax matters, respectively.
About RAYNAL Assurances IARD
RAYNAL Assurances IARD is an insurance company incorporated in 2005 and headquartered in Ouagadougou (Burkina Faso). The Company underwrites a large range of non-life insurance risks associated to automotive, health, accident, fire, transport, and other multi-risks, addressing a clientele composed of both corporate and retail customers. Over the past 15 years, RAYNAL Assurances IARD has been successfully deploying its operations across the main cities of the country, leveraging a strong sales team as well as a large network of agents and brokers allowing to build trusting partnerships with both leading companies and high potential SMEs, hence contributing to the economic and social development of Burkina Faso.
Driven by a culture of service and innovation, RAYNAL Assurances IARD experienced a steady growth over the years to become the third-largest non-life insurer in Burkina Faso with a market share exceeding 13%. Thanks to a strategy that leverages high added value development drivers, and particularly the use of emerging digital technologies, RAYNAL Assurances IARD aims to accelerate the deployment of its offer by proposing new products, in line with an increasingly sophisticated market demand from both corporate and retail clientele, while improving service quality and customer experience making insurance more affordable and inclusive.
For more information about RAYNAL Assurances please visit:
Contact: Leila Mane Head of administration, RAYNAL Assurances
AfricInvest is among the leading private equity firms in Africa with over US$1.9bn of funds raised. Founded 27 years ago, AfricInvest has made over 180 investments in more than 25 countries across the African continent in a variety of sectors, contributing to significant socioeconomic development mainly thanks to revenue growth and profitability improvement across its portfolio companies.
AfricInvest FIVE is an evergreen investment vehicle raised in December 2017 and dedicated to the financial sector in Africa. FIVE stands for Financial Inclusion Vehicle. The number five represents the aspiration of AfricInvest and FIVE’s investors to contribute to achieving universal access to financial services in Africa. As the current level of penetration on the continent is a mere 20%, achieving universal access will require a fivefold increase. Digital transformation is one of the key drivers toward the universal access and as such, FIVE seeks to enhance the digital strategies of its portfolio companies.
Its evergreen structure enables it to support its portfolio companies in achieving meaningful strategic transformations. FIVE is backed by a strong investor base including FMO Norfund, KfW, BIO, AfDB and IFU. The fund is supported by AfricInvest’s eight offices across the continent which impart deep experience and relationships, sectoral expertise, and environmental, social and governance improvements for investee companies.
For more information about AfricInvest, please visit:
Contact: Ann Wyman Senior Partner, AfricInvest
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