As published on AllAfrica by James Anyanzwa on November 14th 2017
Global insurance brokerage firm AON has finally exited Africa, selling off its entire shareholding in 10 subsidiaries to South African private equity company CapitalWorks. The move signals the decreasing influence of multinationals on the continent, after the 2008 global financial crisis left many firms seeking financial support from their respective governments.
Under the new arrangement, UK-headquartered AON will continue serving its global clients through an agency relationship with the newly branded Minet Holdings Africa Ltd, which will become AON’s largest global network correspondent.
“Since the financial crisis on Wall Street, there has been tight regulation and supervision of multinationals by parent companies and the sanctions are so stringent that to put together an infrastructure to comply with these rules is expensive,” Joseph Onsando, chief executive of Minet Holdings Africa told The EastAfrican. “As a result, these foreign companies find it convenient to relinquish the ownership and management of their subsidiaries to the locals.”