By Alex MacDonald

LONDON--Masawara PLC (MASA.LN), an investment company focused on southern Africa, said Thursday it has agreed to sell a 40% stake in its Zimbabwe-focused unit, Masawara Investments Mauritius Ltd., to South Africa-based investment firm Sanlam Ltd. (SLM.JO) for $11.6 million.

The Masawara unit will hold the group's interests in the short-term and life insurance, and reinsurance businesses in Zimbabwe, which comprise Zimnat Lion Insurance, Zimnat Life Assurance and Grand Reinsurance.

In addition to acquiring an equity interest in MIM, Sanlam, through its affiliates, will also offer technical support services to the Masawara's insurance businesses in Zimbabwe.

The deal is subject to regulatory approvals.

Masawara's shares were unchanged at 51.5 pence a share as of 0904 GMT, resulting in a market capitalization of 63 million pounds ($99 million).

Write to Alex MacDonald at alex.macdonald@wsj.com

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