Insyte Weekly: IFC's Tourism Investment, Pick n Pay Boxer's IPO, Edtech & the Student Loan Crisis, and more

Media & Entertainment

As announced by Cole Martin, Microsoft launched Edge Game Assist. Microsoft's Edge Game Assist is a new browser integrated into the Xbox Game Bar overlay, designed to enhance PC gaming by enabling seamless multitasking without minimizing or alt-tabbing. The browser provides game-centric features like pinned tabs, transparency settings, and resizable windows for discreet access to guides, videos, Discord chats, and live streams. Initially supporting popular titles like Baldur’s Gate 3, Fortnite, and Minecraft, it allows users to access game-specific resources while playing. Available as a public preview for Windows 11 users with the Microsoft Edge Beta set as the default browser, Game Assist is optimized for mouse and keyboard, with plans to add support for handheld devices and gamepads in future updates.

Edtech

According to Will Fan, The U.S. student debt crisis affects over 43 million people, with total debt surpassing $1.7 trillion, limiting economic mobility and career choices, particularly for Black borrowers and low-income communities. Rising tuition costs and political challenges, such as blocked loan forgiveness programs, exacerbate the issue. Edtech companies are addressing this through innovative financing models like Stride Funding’s flexible income share agreements (ISAs) and MPOWER Financing’s no-cosigner loans, which benefit groups like international and DACA students. Future solutions lie in combining education, technology, and decentralized finance to provide accessible, transparent, and scalable funding options, empowering students to pursue education without overwhelming debt.

Fintech

As reported by Rebecca Skutak, The Latin American fintech sector is showing signs of recovery in 2024, with venture funding surpassing 2023 levels. So far, $2.6 billion has been invested across 174 deals, a 73% increase from 2023's $1.5 billion over 241 deals, though still below the highs of 2021 and 2022. According to Mike Packer of QED Investors, this rebound reflects companies resurfacing for funding after 2021’s hype and portfolio firms achieving milestones for growth. Notable deals include São Paulo-based Conta Simples' $41.5 million Series B and Félix Pago's $15.5 million raise. While the sector sees growing momentum and seasoned founders focusing on infrastructure, challenges remain, such as limited exits and dependence on local funds. Experts believe LatAm's fintech market still holds significant innovation potential, with a need for greater global investor interest.

AI

MIT researchers have developed an innovative tool that uses generative AI combined with physics-based flood models to create realistic satellite imagery predicting post-hurricane flooding. Tested in Houston, the method accurately depicted the aftermath of a storm like 2017's Hurricane Harvey, outperforming AI-only models that inaccurately placed flooding in impossible areas. Dubbed the "Earth Intelligence Engine," this technology aims to assist in disaster preparedness by visually illustrating potential flooding, encouraging timely evacuation. While promising, its broader application requires extensive training on satellite images from various regions. The research, published in IEEE Transactions on Geoscience and Remote Sensing, highlights the potential of AI to enhance public readiness and response to natural disasters.

Tourism

The IFC has partnered with Orascom Development Egypt (ODE), a leading tourism and real estate developer, to promote sustainability in El Gouna, Egypt. IFC is providing a $155 million Sustainability Linked Loan (SLL) to improve energy and water efficiency in several hotels, including the Mövenpick Resort and Spa. The funding will help ODE reduce energy consumption from non-renewable sources by up to 50% and water usage by at least 20%. Additionally, the SLL will refinance part of ODE’s debt and enhance its financial stability. As part of the initiative, hotels in El Gouna will work towards achieving IFC's EDGE green building certification. This project aligns with Egypt's economic and environmental goals, aiming to enhance the country's tourism sector, which contributes 8% to GDP and supports millions of jobs. El Gouna, recognized for its sustainability efforts, continues to lead in integrating green practices in tourism development.

Retail

As reported by Reuters, South African grocery retailer Pick n Pay raised R8.5 billion ($471 million) by selling a 34.4% stake in its discount chain, Boxer, through an IPO priced at R54 per share. This move is part of CEO Sean Summers' recapitalization strategy, which also included a R4 billion rights issue. The IPO attracted strong demand, with the order book oversubscribed at the top of the price range. Boxer, now valued at R24.7 billion, is scheduled to list on Johannesburg's main stock exchange on November 28, 2024. Despite the sale, Pick n Pay retains a 65.6% stake in the chain. Proceeds will be used to reduce debt and revitalize Pick n Pay’s core supermarket business.

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