When most companies think of emerging markets they only consider China and the other BRICS countries. However, this can lead to missed opportunities in other rapidly growing emerging markets that are well worth a look. As many businesses plan their 2016 global growth strategies, we wanted to highlight five emerging markets to consider for 2016. These five markets are primed for growth in 2016 and should be on your radar:
Indonesia has the fourth largest population in the world with more than 250 million people and its growth rate for 2016 is projected to increase to 6%. A majority of Indonesia’s middle class are unbanked, which presents a huge opportunity for businesses in mobile banking.
The sanctions and low oil prices that have crippled Russia’s economy have caused many businesses to simply write off the entire region. While there are challenges to doing business in the region, there are many overlooked opportunities, especially in Russia’s neighboring countries like Azerbaijan. One unique opportunity is the new skiing and winter sports market created by the recently development luxury ski resorts in Azerbaijan’s Caucasus mountains.
Kenya, like many other emerging markets, has leapfrogged technology to catch up to, and in some cases surpass, more developed countries. Perhaps their most notable success is M-Pesa, a mobile financial services platform that had more than 237 million transactions in one year, and in 2013 43% of Kenya’s GDP flowed through M-Pesa.
Colombia is Latin America’s fourth largest economy and the only South American country with two sea coasts, which provides important transport benefits. Since the free trade agreement with the U.S. in 2012, Colombia has become the third largest market for U.S. exports in Latin America.
India is the largest democracy and has the second largest population in the world. India’s ninth largest city, Pune, has a larger population than Chicago. By 2017, India’s growth rate is anticipated to exceed that of China. This is due to several factors, including new leadership in India’s Central Bank, a popular new government focused on economic reform, increased infrastructure development, and reduced bureaucratic red tape.