Companies are required to consolidate their shareholders’ equity and rebuild their cash flow strained by the outstanding payments and by the crisis. They must also provide the resources needed for their growth.
In Africa and in some MENA zone countries, the margins made by insurers are too poor and the costs are too high to finance growth out of the resources reaped from operations. In this situation, recourse to external funding is essential.
The Ivorian group NSIA in recent times, and the Moroccan holding SAHAM succeeded in 2012 to attract capital. Both examples prove that funds are available and that numerous investment funds and other financial establishments are willing to deal with insurers.
While insurers are in search of funds, the investors’ concern is totally different. They won’t commit unless a coherent corporate project and a realistic business plan are available. This project has to be run by a top-quality operational team.
Hit by the economic crisis, these investors have their minds on profitability and competitiveness. Projects aimed at modernity and innovation will not be short of investors.