Allianz Commits to Funding African Infrastructure

Allianz Commits to Funding African Infrastructure

By CultureBanx Team

  • Allianz is investing $120M in the Emerging Africa Infrastructure Fund

  • Only 35% of people have access to electricity

CBx Vibe: “Message” Abby Jasmine

Allianz announced it’s funding infrastructure projects in Africa by investing in the Emerging Africa Infrastructure Fund (EAIF) to the tune of nearly $120 million. Could this encourage other major financial institutions to look more closely at investing in what are generally considered risky African projects?

Why This Matters: Africa has become more attractive for investors as the continent offers long-term growth opportunities. Some of those factors include positive demographic trends, a growing middle-class and increased urbanization. The European firm is going to make this investment over a 12 year period. “We believe in Africa’s growth potential and will invest across different asset classes across the continent,” said Sebastian Schroff, global head of private debt at Allianz.

Read More

Uber Picks Up Driver Insurance in South Africa

Uber Picks Up Driver Insurance in South Africa

By CultureBanx Team

  • South Africa has 5,000 Uber drivers

  • Uber’s net revenue in 2017 came in at $7.4B

CBx Vibe: OTW” Khalid

In its four years of operation in Africa, Uber has seen significant progress on the continent. So as part of an extended commitment to driver-partner protection in its largest African market South Africa, the ride hailing giant has linked up with Chubb Insurance.

Why This Matters: Attacks are on the rise across South African cities. The country has a notably high rate of murders, with around 52 occurring every day, according to Bloomberg. It’s only right the company looks to better protect their driver investment in the country. In South Africa Uber has 5,000 drivers along with with 969,000 active riders.

Drivers will now have access to emergency medical treatment. In addition to driver injury protection, Uber will also provide assistance and legal representation through its RoadCover partnership.

“The partner injury protection has been tailored specifically for those on the road, building on the security available through the Uber app and ensuring a safer ride during every journey booked through the Uber app,”

Uber’s net revenue in 2017 came in at $7.4 billion, lagging behind public companies with similar valuations. The company doesn’t shell out financial information with much consistency and has worked to downplay its persistent losses.

Read More

Ivory Coast is Liquidating “Chocolate” From Exporters

Ivory Coast is Liquidating “Chocolate” From Exporters

By CultureBanx Team

  • SAF-Cacao group owes Ivory Coast banks an estimated $280M

  • Ivory Coast dominated by 5 banks, representing around 60% of banking system assets

CBx Vibe:Chocolate” Big Boi

The largest cocoa exporter from Ivory Coast, SAF-Cacao group has been  ordered to liquidate its group of companies over unpaid debts to the country. Cocoa exporters are major borrowers from the Coffee and Cocoa Council, which serves as the country’s marketing board. Just how hard will the country’s banking sector be hit if they can’t recoup the outstanding debt?

Why This Matters: The banking sector in Ivory Coast is predominantly run by five banks, which represent around 60% of banking system assets, according to Reuters. As of now SAF-Cacao group owes Ivorian banks an estimated $280 million. The company buys around 150,000 to 200,000 tonnes of cocoa annually and Reuters reports its thought to have around 50,000 tonnes of cocoa beans in its warehouses.

Earlier this year the International Monetary Fund (IMF) released a study where it found lending to the five largest borrowers made up almost 99% of the country’s banking system’s total capital. The report paints a vivid picture of just how hard banks could be hit by only a few defaults.

Bank officials told Reuters that outstanding loans coupled with the impact of SAF-Cacao’s liquidation could discourage international banks from continuing to lend to Ivory Coast. Furthermore, this statement highlights the importance of the court taking actions now against companies with large outstanding debts, to avoid destabilizing their financial sector.

Read More