diff --git a/api/v1alpha1/management_types.go b/api/v1alpha1/management_types.go
index 14baad517..cdf86cf38 100644
--- a/api/v1alpha1/management_types.go
+++ b/api/v1alpha1/management_types.go
@@ -104,6 +104,9 @@ func (m *ManagementSpec) SetProvidersDefaults() {
 				Raw: []byte(DefaultCAPAConfig),
 			},
 		},
+		{
+			Template: "cluster-api-provider-azure",
+		},
 	}
 }