Each week Frontier Strategy Group’s global team shares their view on key media stories, and what the implications are for businesses that operate in emerging markets. For more information about how to contact our analysts, send us an email.
Pratima Singh on “Government Approves India-UAE Pact for $75 Billion Investment In NIIF”
“While public investment in infrastructure will have long term benefits through lower transport costs, the government also aims to spur private investment in the infrastructure sector. Multinationals should closely monitor projects under the NIIF and evaluate opportunities to partner with the government on large projects or supply key inputs.”
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Alexa Lion on “South Africa’s 2016 budget: Will Gordhan’s gradual approach deliver?”
“South Africa’s 2016-2017 budget avoids austerity measures as the economy skids recession. Instead, it calls for fiscal consolidation aimed at reducing recurrent expenditures, managing wasteful spending, and promoting transparency in the public procurement process. It avoids the topic of privatizing SOEs, which is crucial over the long-term to free up government resources and stabilize the economy.”
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Antonio Martinez on “Venezuela’s Revised `Floating’ Bolivar Is Falling Fast”
“The new floating bolivar exchange rate has shown significant movement over the last few weeks, but only 7% of all foreign exchange provided by the government is offered at this exchange rate, while 93% remains at the preferential exchange rate of 10 BsF/USD. The black market rate has barely changed since the new exchange rate system came into place.”
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Alec Lee on “Plan to Rescue Puerto Rico Advances, Led by House Republicans”
“While the news is positive, the timeline for implementation will be short, with Puerto Rico set to default on over US$ 400 million in interest and principal payments on May 1st. Likewise, the deal as it currently stands would do little to improve the island’s underlying structural issues that restrict the competitiveness of its exports.”
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