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Category:
Insurance News /
Investments /
October 2009
South Africa,
A Hot Spot For Global Investors
UK Trade & Investment publishes new report on emerging markets
South Africa
has been identified as one of the key markets for global investors,
moving up to 4th position, according to new research published by UK
Trade & Investment.
Addressing the Economist Intelligence Unit's Emerging Markets, the
UK Secretary or State, Lord Mandelson revealed the findings of a new
report which examines global business attitudes to emerging markets
in light of the global downturn.
"Businesses should be strategic about their exports and plan for the
long-term. Many emerging markets are outperforming developed
economies, and are expected to grow strongly for years to come,"
Lord Mandelson said.
Commissioned by UK Trade & Investment, the `Survive and Prosper:
emerging markets in the global recession' report, gives fresh
insights into the opportunities and longer-term strategic importance
offered by emerging economies.
It
is based on a survey of more than 540 high-level business executives
from across 19 business sectors; over 40 per cent of those
interviewed worked for companies headquartered in emerging markets.
Key findings include:
·
77 per cent of companies expect the
prospects for the global economy to improve in 2010-11.
·
Despite the economic downturn, emerging
markets support global profitability.
·
Emerging market economies, on the back of
the continued high growth and market size of
China
and India, have outperformed those of developed countries in 2009.
·
Sixty percent of companies surveyed
expected to derive more than 20 per cent of their total revenues
from emerging markets in five years' time - almost double the
current figure of 31 per cent.
·
Political risk (including the risk of
nationalisation and expropriation) was cited by 50 per cent of
survey respondents as the greatest government-related obstacle to
doing business in emerging markets.
Commenting on the research Lord Mandelson said:
"The global recession was a wake-up call for companies to diversify
their export base and seek out new opportunities in the emerging
world. We are encouraging UK business to look abroad and find new
business in these exciting new markets."
The report is part of a wider push by UK Trade & Investment to raise
awareness about the potential trade and investment opportunities for
British companies in high growth markets.
·
45 per cent of respondents cited
China
as their favoured future investment destination, 43 per cent cited
India and 35 per cent cited other Asian destinations. The Middle
East and North Africa (MENA) was in 4th place (32 per cent), ahead
of Central and Eastern Europe (30 per cent), Russia (28 per cent),
Brazil (28 per cent) and other Latin America (25 per cent).
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