What Our Analysts Are Reading – 6/30/2017

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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.

Zeynep Kosereisoglu on “UAE envoy: Gulf states considering new Qatar sanctions”

“Executives should prepare for the Qatar crisis to be extended; as expected, the concrete list of demands from Qatar are seeming to escalate the crisis further. MNCs should align internally on Qatar’s position in the MENA portfolio and which actions would be taken in a scenario where businesses are forced to chose between Qatar and other markets in the region.”

Link to article | Read More of Zeynep’s Commentary | Have a Question for Zeynep?

William Attwell on “Zim audit shows shocking abuse of public funds”

“The Auditor General’s latest findings will frustrate Finance Minister Patrick Chinamasa’s efforts to re-establish credit lines with multilateral lenders who have made improved fiscal governance a precondition for any new loans. Given Zimbabwe has few funding streams other than domestic taxation, government spending will remain under severe pressure, limiting B2G opportunities.”

Link to article | Read More of William’s Commentary | Have a Question for William?

Dalia Naguib on “Egypt’s govt hikes fuel prices, second time since currency float”

“The fuel price hike is another measure that will mount pressure on consumer budgets, after already facing a first round of fuel price increases, a new VAT, and severe depreciation in the pound. Increased gasoline and diesel prices will also increase operations costs for MNCs, especially in terms of transportation. However, the measure improves Egypt’s long term outlook and investor confidence.”

Link to article | Read More of Dalia’s Commentary | Have a Question for Dalia?

Pratima SinghPratima Singh on “India’s New Tax May Unleash a Flood of Litigation”

“Challenges in interpreting the classification of goods/services, tax rates applicable, and the anti-profiteering clause have made the GST extremely complex. Furthermore, lack of information and short timelines have left companies ill-equipped for an effective transition. Executives should expect a short-term disruption in economic activity and ensure internal alignment on the impact of the tax.”

Link to article |Read More of Pratima’s Commentary | Have a Question for Pratima?

Matthew KindingerMatthew Kindinger on “UPDATE 1-DR Congo hikes key rate to 20 pct to stabilise franc -central bank”

“Borrowing costs for companies operating in DRC are expected to rise following the central bank’s decision to sharply increase its base interest rate from 14% to 20%. The move was designed to temper the country’s high inflation rate, and arrest the depreciation of the franc.”

Link to article Read More of Matthew’s Commentary | Have a Question for Matthew?

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