Atlas Magazine February 2012

2012: a critical year

What’s the way out? That is the question on everyone’s lip. Will the year 2012 be that of recovery or that of the chaos that some have already forecast.

In the MENA zone, the survival of numerous companies is at stake. In Egypt, Libya and Syria, the recently established companies are struggling to withstand the lingering crisis. The development of companies located in countries safe from the current political events will not be spared, either. The fierce competition that these companies embarked on, along with the prudential standards that governments will certainly impose, are likely to affect their profitability.

In sub-Saharan Africa, healthy growth implies the organization of the markets in conformity with international standards and appropriate financial resources. Oftentimes, such prerequisites are unfortunately missing.

In order to attract foreign capital, African insurers are therefore required to improve their corporate governance. Only by proposing a rigorous and transparent framework, can they attract sustainably the capital required to enhance their shareholders’ equity, honor their obligations or implement their development projects.

Undoubtedly, in the absence of good management, with or without a global crisis, the year 2012 will be a nightmare, a step closer to bankruptcy for all those who chose not to take any initiative.

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