The Ebola Scare – What Businesses Need to Know

Ebola has been dominating media coverage of Sub-Saharan Africa ever since a man stricken with the disease landed in Lagos in July. Despite the scary headlines, businesses must differentiate fact from fear in order to assess the virus’ potential impact on their West African operations. Here is what companies need to know:

Which countries are most affected by the disease?

Ebola particularly has affected small markets within West Africa. These include Guinea, Liberia, and Sierra Leone –poor economies whose governments have not been able to deal with the outbreak effectively. As of late August, about 2,000 deaths were reported in the three countries, and the WHO expects many more people to be infected with the virus.

To date, Senegal reported one death, and Nigeria reported seven deaths. Lagos State so far has proven to be quick and effective in its measures to contain the spread of the disease. In fact, various infected patients were released successfully after treatment. However, after Ebola has spread to River State in Nigeria and it remains to be seen how effective that state government will be in containing the outbreak.

Ebola_map_BBC

  • Above: A map published in the BBC highlights affected areas. Most multinationals operating in the region are present in the three largest economies: Nigeria, Ghana, and Côte d’Ivoire. All countries are on high alert, but are not facing the epidemic to the same degree.

    What are the economic repercussions?

    On Sierra Leone, Liberia and Guinea: The African Development Bank expects a 4% reduction in Sierra Leone’s GDP, the economy is currently growing at 14% The Liberian government estimates it will lose up to US$30 million to fighting the disease. The worst-hit sectors in all three countries are agriculture, services, and mining.

    In Nigeria, the panic over the Ebola outbreak is estimated to cost the country US$2 billion in Q3. Aviation, hospitality, and tourism, and trade will be most impacted. Restaurant visits in Lagos are likely to decline by 50% this quarter as people avoid crowded places. If the crisis extends into Q4, the economic loss could reach US$3.5 billion.

    The government closed Côte d’Ivoire’s borders with Liberia and Guinea. The western part of the country is one of the most fertile regions for cocoa, Côte d’Ivoire’s primary export. Border closures restrict the movement of international cocoa exporters and statisticians who calculate output forecasts for the upcoming October harvest. As a result, traders and exporters will not have accurate forecasts to predict the current cocoa crop, which could adversely impact exports and weigh on Côte d’Ivoire’s GDP growth.

    In Ghana, the impact of the disease is less direct but still felt by businesses. As the local representative of an international organization put it:

    “A lot of businesses and embassies in Accra are devoting a LOT more time to Ebola. ‘Freaking out’ would be a good way to put it. While they are not changing strategies, they are definitely losing productivity as they’re putting all kinds of people just on monitoring what’s going on in neighboring countries, having daily briefings on Ebola news, etc. As an example of what I’m talking about, a friend at a Western European embassy in Accra whose portfolio is legal and justice advisory was spending 12 hours a day just sending reports back to his home capital on Ebola news.”

    What does this mean for businesses?

    Multinationals should expect commercial activity to be marginally subdued this quarter and next as business and consumer demand slows because of the restricted movement of goods and people.

    However, as in all crises, some sectors of the economy also benefit. On the one hand, governments across West Africa are spending a larger than planned part of their 2014/2015 budgets on healthcare, and on reactive and preventive measures to contain the disease.  Companies selling materials used for the screening and treatment of the disease will see a spike in sales. Companies selling products widely perceived to protect from potential infection, such as hand sanitizers and antibacterial soap, will also benefit.

    The sectors directly related to the fight against Ebola are not the only ones that will benefit from the crisis. E-commerce, already increasing in popularity in the last three years in Nigeria, has received a real boost as people avoid public places.

    What should I expect?

    It is very difficult to predict if the disease will spread further and companies need to monitor the situation closely.

    However, FSG believes that a further spread is unlikely as governments have implemented tough measures to try and contain the disease. We expect the health crisis to begin to subside towards the end of the year as these measures take effect. The economic repercussion nonetheless will be felt in 2015, particularly in Sierra Leone, Guinea, and Liberia.

    Should the crisis worsen, governments are likely to pass tougher measures that will hamper logistics and productivity further.

    What should businesses do next?

    • Outline a contingency plan: A contingency plan allows companies operating in the area to manage risks and seize opportunities as they materialize. A contingency plan helps, for example, to define alternative work locations for employees, outline strategies to deal with transport disruptions, and position marketing strategies to respond to the changing environment. For example, businesses can adapt packaging for consumption at home rather than in public places
    • Educate staff, both local and international: Given that this is a health crisis, MNCs need to articulate time and over again the need for washing hands and being vigilant health-wise to their local partners. Local staff should implement simple measures to protect themselves, while international staff should be educated about the disease and the relative difficulty of infection. It is important that employees travelling to the region are not stigmatized within the company, as this will lower productivity and decrease employees’ willingness to work in the region, thus impacting long-term plans for West Africa
    • Don’t generalize: Companies should monitor the situation closely on the WHO website, differentiate clearly the risks by country, region, and city, and reduce travel to affected areas. For example, while it is unwise to travel to quarantined areas in Sierra Leone at the moment, visiting Ghana and large parts of Nigeria is very low risk
    • Adopt a wait-and-see approach, but don’t change your plans: Most multinationals operating in the region have adopted a wait-and-see mode until the crisis subsides, but are not changing their investment strategies as the opportunity in the region’s larger economies is too big to ignore. In fact, companies should take advantage of the current uncertainty to position their business for growth once normality returns to the markets
    • Highlight your commitment to countries, despite the crisis. Healthcare companies can take the current outbreak as an opportunity to gain customer loyalty and market share by providing help and support where it is most needed
    • Prepare for trends that are here to last. The popularity of E-commerce has been enhanced by Ebola and is here to stay. Plan your e-commerce strategy for Nigeria now

For our latest research on Africa and the EMEA region, FSG clients can visit the client portal. Not a client? Contact us to learn how we can support your business planning in emerging markets.

Emerging Markets View: What Our Analysts Are Reading

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McDonald’s restaurants in Russia came under increasing pressure from the Russian authorities this week as officials closed several outlets in Moscow and inspected 435 of the fast-food chain’s restaurants across the country, according to the Wall Street Journal. The increased checks come amid heightened tensions with the West, and FSG’s Head of EMEA research, Martina Bozadzhieva, says similar actions are likely to begin affecting other western businesses in the region.

“Regulatory checks are likely to intensify across industries, especially against American companies,” says Bozadzhieva. “It is very difficult to predict who the authorities may target next and for what, and companies should be aware that problems may arise with regional as well as federal agencies. Local teams should watch their industry regulators particularly carefully to get ahead of any problems.”

Meanwhile, Argentina’s latest plan to exit default is being met with skepticism by financial markets, as bond prices slip and the black-market peso hits a record low.

“Markets are rightful to be wary with Argentina’s proposed local law debt swap, as it suggests that, contrary to initial expectations, Argentina has no intention of reaching an agreement with holdout creditors in the near term,” says Gabriela Mallory, senior analyst for Latin America.

Thailand’s military-appointed legislature nominated army chief Gen. Prayuth Chan-ocha to become prime minister on Thursday, and FSG’s senior analyst for Asia Pacific, Shishir Sinha, says it may mean increased stability for investors.

“Thailand might be able to guarantee investors with more political stability as the ruling army chief is officially moving on to the helm of the country as its newest Prime Minister. While this move will delay truly democratic elections for quite some time to come, it is likely to help with economic growth; both consumer and investor sentiment should rise due to the expectation of stability,” says Sinha.


FSG clients can stay up to date with analyst commentary on the latest emerging markets headlines on the client portal. Not a client? Contact us to learn more.

Emerging Market View: What Our Analysts Are Reading

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On Friday, Iraqi Prime Minister Nouri Maliki resigned, according to the BBC. Despite hopes that a resignation would help end the political crisis in Baghdad, FSG’s Practice Leader for Middle East & North Africa says it’s not over yet.

“Iraq’s political crisis is not over yet, but Nouri al-Maliki’s decision to step aside is a critical development. Companies should watch for whether PM-designate Haider al-Abadi is able to to form a new government that promotes cross-sectarian cooperation. A new government would need to usher in political reforms that ease sectarian tensions to bring Iraq back from the brink of civil war,” says Matthew Spivack.

In Latin America, Mexico’s government has outlined a plan to open oil fields to private companies, providing opportunity for foreign investment, according to the Wall Street Journal.

“The Mexican government is quickly moving forward with the first round of bidding starting early next year, which should provide an early infusion of FDI and support higher investment growth in 2015 ,” says Antonio Martinez, FSG’s Associate Practice Leader for Latin America.

This news comes in the same week as The Economist’s story “Mexico’s minimum wage: Stingy by any measure,” highlighting the low interest in the country’s consumer opportunity over the past two decades.

“Over the last two decades the increase in earning power of Mexican workers has severely lagged most of the other large LATAM economies, and is an important reason why the consumer opportunity in Mexico has not been as attractive to B2C companies as the economy’s size would suggest,” says Antonio Martinez.

In the Asia Pacific region this week, good news for Malaysia’s economy as second quarter growth shows unexpected acceleration on exports, according to Bloomberg.

“Malaysia’s impressive Q2 performance bodes well for the country’s growth over the coming months. The government’s efforts to address bottlenecks in the economy and improve the domestic operating environment are clearly paying dividends,” says Adam Jarczyk, FSG’s Practice Leader for Asia Pacific.


FSG clients can stay up to date with analyst commentary on the latest emerging markets headlines on the client portal. Not a client?  Contact us for more information.

Emerging Market View: What Our Analysts Are Reading

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After defaulting on some of its restructured debt on July 30, Argentina has petitioned the International Court of Justice to hear a lawsuit against the U.S. According to the Wall Street Journal, the South American nation claims that decisions by the U.S. courts in the legal battle between Argentina and some of its creditors have violated its sovereignty, but FSG’s senior analyst for Latin America research says it’s merely a stalling tactic.

“Argentina’s lawsuit against the U.S. is a stalling tactic intended to bolster the Argentine government’s political rhetoric. Most likely, its main result will be a further delay in negotiations with holdout creditors,” says Gabriela Mallory.

On Tuesday, South African publication The Daily Maverick asserted that “corrupt, incompetent governments and their repeated failure to protect their citizens” was more to blame for the Ebola outbreak than the disease itself. FSG’s Sub-Saharan Africa analyst Alexa Lion agrees, adding that the virus will have little affect on Western businesses involved in the region.

“Ebola is scary but is fairly isolated from Western economic interests. Its spread speaks more of government inability to contain the virus rather than high risk of contagion. MNCs must be vigilant and articulate health precautions to their partners, but also remain aware that it is business as usual in West Africa’s largest hubs,” she says.

In Indonesia, members of losing presidential candidate Prabowo Subainto’s political coalition are planning to form a special committee, or pansus, in the House of Representatives, claiming electoral fraud. Despite Prabowo’s large presence in the legislature, FSG’s Adam Jarcysk says it is unlikely the court will rule in his favor.

“The Prabowo camp’s decision to begin saber-rattling now about launching a pansus in October suggests that the Constitutional Court is likely to support Jokowi in its ruling later this month,” says Adam Jarczyk, FSG’s Asia Pacific Practice Leader.


FSG clients can stay up to date with analyst commentary on the latest emerging markets headlines on the client portal. Not a client?  Contact us for more information.

Côte d’Ivoire: an Elephantine Opportunity

Cote d'Ivoire Elephant Crest
Côte d’Ivoire is Francophone West Africa’s largest economy.

Côte d’Ivoire is once again open for business. After a brief civil war in 2010-2011 that all but halted the economy, the country is witnessing a large stream of FDI targeted at a wide variety of sectors. The government is pushing Côte d’Ivoire, and especially its economic capital Abidjan, to become a hub for the wider French-speaking region.  Côte d’Ivoire was once Francophone West Africa’s most prosperous country, and it is poised to reclaim its title as the region’s economic powerhouse. This is due to a variety of reasons:

  • GDP Growth: Côte d’Ivoire is one of Sub-Saharan Africa’s fastest-growing economies, with GDP growth expected to reach 8.5% YOY in 2014. Its strong economic performance is driven by infrastructure developments, exploration in the mining, oil, and gas sectors, and growth in the telecom, banking, and consumer goods industries.
  • Stable macroeconomic environment: Unlike many Sub-Saharan African countries, Côte d’Ivoire displays low inflation, relatively low interest rates, and little currency volatility. The CFA Franc, also used in seven other French-speaking West African countries, is pegged to the euro and partially held in the French treasury. Companies therefore benefit from low exchange rate risk and transactions costs.
  • Business reforms: The government is aggressively promoting Côte d’Ivoire as a preferred destination for investment in West Africa. It has passed a series of reforms that increase transparency, decrease bureaucratic delays, digitize registries, and improve accessibility to relevant information. Moreover, major infrastructure projects will further open up the country to trade and promote new distribution channels as private consumption increases.

Although the country is on the right track to reconstruction, it still faces several challenges to reaching its goal of becoming an emerging economy with a robust middle class and an open market by 2030:

The 2010-2011 civil war erupted at the onset of presidential elections pitting Laurent Gbagbo against Alassane Ouattara.
The 2010-2011 civil war erupted at the onset of presidential elections pitting Laurent Gbagbo against Alassane Ouattara.
  • Political risk: Society in Côte d’Ivoire remains divided in the wake of the 2010-2011 civil war, which erupted when then-president Lauren Gbagbo refused to concede to president-elect and current incumbent Alassane Ouattara. The conflict around Gbagbo’s refusal to give power was the culmination of years of tensions between adherents to opposing political parties and the legal status of Ivoirians of foreign descent. Now that Gbagbo is indicted at the ICC and Ouattara is expected to re-run for president, uncertainty prevails over the security situation ahead of the October 2015 presidential election. The common sentiment on the ground is to avoid war at all costs, but the process of reconciliation has been slow, old wounds remain, and skirmishes are likely.
  • Wealth gap: Poverty is acute and the gap between wealthy and poor is very wide. The middle class remains small and concentrated in Abidjan. Government policies that target small and medium enterprises (SMEs), the agriculture sector, and value-added industries are vital to bridging the wealth gap and encouraging inclusive growth.

As such, Côte d’Ivoire is most attractive when taken in context. It is part of the West African Economic and Monetary Union (WAEMU), a common monetary, legal, and interbank market of eight French-speaking countries: Mali, Niger, Benin, Togo, Burkina Faso, Guinea Bissau, Senegal and Côte d’Ivoire. As the wealthiest, most developed country in this group, Côte d’Ivoire is an attractive hub for companies seeking to tap into less accessible, yet rapidly growing Francophone countries.  As more companies such as Standard Bank, Carrefour, and Accor Hotels enter Abidjan, a wider range of business infrastructure will become available and boost Abidjan’s attractiveness.

Côte d’Ivoire is a long-term game. While wealth is not widespread and politics are sensitive, Côte d’Ivoire has the macroeconomic fundamentals, business reforms, and infrastructure projects to become the first stop for companies entering Francophone West Africa.


FSG clients can access our full report, “Market Spotlight: Cote D’Ivoire,” on the client portal.  Not a client? Contact us for more information.

Nigeria: Insecurity and its impact on business

Despite ongoing violence in Nigeria, opinions about the country’s security challenges and what they mean for investors differ widely among local entrepreneurs and international business leaders.

Some executives, whether in Lagos or other commercial centers like Abuja or Port Harcourt, say they aren’t concerned. They believe business will continue as usual and that the threat from militant group Boko Haram will subside after the elections in February next year.

Boko Haram is generally believed to be sponsored by a few political forces who are keen on influencing election results. The group’s terrorist activity has increased dramatically since the election of President Goodluck Jonathan, the country’s first Southern and Christian president, and some believe that Boko Haram was able to emerge because traditional power structures were disrupted in many of the northern states when the central power shifted to the South.

Other business leaders are deeply troubled, not only by the rising violence but by its underlying dynamics.

“We don’t understand why Nigerians are blowing themselves up for a cause. It simply isn’t part of the Nigerian psyche,” a senior manager of a consumer goods company told me.

The head of marketing at a Nigerian bank echoed these sentiments, before adding: “The dynamics here are changing. Everything is getting more expensive because most of our food comes from the north, prices have been going up and what the average Nigerian earns is simply not enough anymore. I fear this may impact the balance here in Lagos, particularly as we get more refugees from the north. Our infrastructure can’t cope with it.”

Business Impact

The volatile state of Nigerian security has also lead to varied experiences among business leaders. As the owner of a distribution company explained: “In our annual sales meetings, one of our local representatives stood up and pronounced huge losses due to the instability in the North. In response, another representative exclaimed that his major customer sits in Borno state!”

Consumer goods companies tend to be the businesses that suffer most, selling low value, high volume products in the populous yet poor northern states. State-imposed curfews mean less people are going out to buy things, and many traders in neighboring Niger, Chad and Cameroon have ceased buying their products in bulk from Northern Nigeria.

Still, businesses operating in affected areas are developing creative ways to address the challenges.

We just had to adapt to the environment. When Boko Haram destroyed the mobile phone masts, we couldn’t call our local representatives anymore. So we just invested in VoIP (Voice Over Internet Protocoll) technology, which is a little more expensive, but now we can communicate frequently with our local representatives, and business is flourishing,” the CEO of an FMCG distribution company told me.

A Common Enemy

While the threat resulting from Boko Haram is still geographically contained around the Northern and central states, the country’s commercial capital has been spared. It is believed that those funding Boko Haram have business interests in Lagos they do not want to be undermined.

Many business have refocused their attention to safer and more prosperous parts of the country to capture the abundant commercial opportunities Nigeria has to offer, but there is till concern that what led to the rise of Boko Haram is not just political maneuverings but real socioeconomic grievances which if left unaddressed could incite insecurity in more stable places.

Some business leaders stress the need for the government to take action. But as Nigeria enters what is only its fourth electoral cycle, others are more patient. They believe that more time is needed for democratic processes to mature and for the disrupted traditional structures to be corrected, calming the power struggles that lie at the heart of the Boko Haram threat.

And still a few try to look at the situation with a typically positive Nigerian attitude:

“In history, the unifying factors of nation states have often been the existence of a common enemy. We have that now, and it could help us focus less on what divides us as tribes and regions, but what unites us as a country.”


Anna Rosenberg is Head of Sub-Saharan Africa Research at Frontier Strategy Group, a Washington headquartered information services provider advising multinationals on doing business in emerging markets. Anna is currently on a research trip to Nigeria and Ghana, meeting representatives from local and international businesses, journalists and government officials. Follow Anna on twitter @anna_rosenberg

*This article is Part 1 of an ongoing series, originally published in conjunction with How We Made it in Africa.

Emerging Market View: What Our Analysts Are Reading

EM View

On Thursday, EU diplomats will consider increased Russian sanctions. The sanctions include a proposal to ban all Europeans from purchasing any new debt or stock issued by Russia’s largest banks, according to the Financial Times, and FSG’s Head of Research for EMEA says it’s time for multinationals to make contingency plans.

“If some or all of the proposed measures are approved by the EU, MNCs operating in Russia will be significantly affected. Executives should build a targeted contingency plan for their Russia operations to prepare. Read FSG’s report Protecting Your Russia Business for analysis and suggested actions for building a contingency plan in the case of further sanctions against Russia.” – Martina Bozadzhieva

In Southeast Asia, a rising middle class and strong demand for more expensive foods has led to increased investment by Japanese food companies, mirroring FSG predictions on the rising competition from multi-ASEAN corporations.

“The increasing sophistication of regional firms and growing demand is attracting several global players to partner/acquire ASEAN firms. MNCs should explore all types of partnerships with such regional firms; they understand the market better, tend to have deeper distribution networks, and lower-cost operations.” – Shishir Sinha, FSG’s Senior Analyst for Asia Pacific after reading this WSJ article.

Good news for Argentina this week. Last Friday, the Latin American country struck a deal to borrow $7.5 billion from China for power and rail projects, according to Reuters.

“Argentina has reached a deal with China to borrow US$ 7.5 billion to finance energy and railway projects, and the two countries have also signed a three year, US$ 11 billion currency swap, in which Argentina will receive Chinese yuan that it can then use to finance Chinese imports or exchange to USD to bolster reserves. This news is welcome given Argentina’s balance of payment concerns.” – Christine Herlihy, FSG’s Senior Analyst for Latin America.

FSG clients can keep up to date with the latest emerging markets headlines and exclusive analyst commentary on the client portal.

Multinationals must build contingency plans for Russia

European foreign minister
European foreign ministers gathered in Brussels on Tuesday. Associated Press

The EU has decided to impose more sanctions on Russia. For now, these fall short of the so-called Level 3 sanctions that could be against whole sectors of Russia’s economy and crucially, its banking sector. However, the international fallout from the downing of flight MH17 and the growing tensions between Russia and the West mean that Level 3 sanctions are increasingly a possibility.

For an MNC executive, this means that it’s time to plan. Level 3 sanctions would dampen Russian growth further, reducing demand across industries; they would cause significant problems for customers and distributors to access finance, affecting operations; and are likely to be met with Russian retaliation that could make it more difficult for MNCs (especially American ones) to do business in Russia. All of this will have an impact on a company’s customers, finance, supply chain, people, and marketing strategy and MNCs should be building step-by-step play books on how to respond to spillover across their Russia operations.

martinachart2This is not to say that MNCs should be pulling out of Russia. In fact, planning is so important because of the significant role that Russia plays in many MNCs’ EMEA and even global portfolios. Companies that have stuck with Russia through crises have historically reaped significant benefits and this could be an opportunity for MNCs to strengthen partner and customer relationships and to make low-cost investments.

Meanwhile, larger strategic questions are looming in the background for EMEA and global leadership teams. With the likely opening of Iran for business, a Russia that is increasingly closing in on itself could lose out in the competition for corporate investments.

For a full report on Russia contingency planning, FSG clients can click here. A full report on preparing for a post-sanctions Iran is also available.

Preparing Your Business for Post-Sanctions Iran [Infographic]

Iran_Infographic_PostSanctions

International negotiations involving Iran’s nuclear program were extended until November 24, which is good news for Western multinationals. Senior executives should use this extra time to lay out plans for entering or expanding in the Iranian market. Today, FSG released a report for our clients that outlines actions to take in order to prepare for major challenges and capitalize on huge opportunities in post-sanctions Iran.

Many companies are preparing to enter or expand in post-sanctions Iran, and 40% of FSG clients surveyed already view it as a priority market. A comprehensive nuclear deal and the subsequent opening of the Iranian market would represent the biggest shake-up to the MENA portfolio since the Arab Spring erupted between late 2010 and early 2011. Iran’s population is the second largest in MENA, and its oil and gas reserves are the 4th and 2nd largest in the world, respectively.

Before committing significant resources to overcome operational challenges in Iran, senior executives must first determine whether their organizations are even willing to take the risk by reassessing market potentialsanctions exposure, and indirect vulnerabilities, such as reputational risk. Iran’s opportunities will not outweigh the risks for every company. However, pharmaceuticals, medical devices, and consumer goods companies are especially likely to prioritize post-sanctions Iran given its attractive demographics and future spending power.

For companies focused on entering or expanding in post-sanctions Iran, it is imperative to prepare for the top three challenges identified by FSG clients in a recent poll: a lack of access to bank services, compliance risk, and difficulties in becoming a first mover ahead of competition. FSG clients can read our report on post-sanctions Iran to learn about actions for overcoming these challenges and many others.


FSG Poll Results

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Emerging Market View: What Our Analysts Are Reading

EM View

India’s newly elected Bharatiya Janata Party (BJP) government announced its first budget last week, and according to the Wall Street Journal, it proved a letdown for those expecting big-bang reform, MNCs included.

“While it is a well-balanced fiscal plan with focus on reviving consumption and investments, markets have not been overly pleased and experts find certain growth targets to be quite unrealistic. The absence of specifics on several big-ticket items and lack of an overarching vision should rightfully disappoint companies,” says Shishir Sinha, FSG’s Senior Analyst for Asia Pacific.

(Readers can view FSG’s original expectations for India’s BJP government here.)

Last week, Portugal’s Banco Espirito Santo SA bonds hit record lows after parent company Espirito Santo International reportedly missed a debt payment, rekindling market fears and reminding investors that the eurozone’s woes are far from over.

“Executives should be wary of headlines for recovery in WEUR, and prepared for the heavy downside that could accompany bank failure. Banco Espirito Santo, a Portuguese bank, delayed payments on some securities, reminding us that just because banks have not been in the news does not imply that they are healthy. FSG’s WEUR Regional Outlook outlines how banks could impact MNCs throughout the region,” says Lauren Goodwin, Senior analyst for Western Europe.

In Latin America, Argentine presidential hopefuls are dealing with the issue of debt negotiations and exploring opportunities for business-friendly reform, according to Reuters.

“As Argentina strives to negotiate with holdouts to avoid default, executives should consider the potential for improvement as elections approach in 2015. The current frontrunners favor negotiating with holdouts and would likely be more pragmatic and business-friendly than President Fernandez,” says Christine Herlihy, FSG’s Senior Analyst for Latin America.

In global news, Forbes recently released an article on local companies competing with foreign investors in emerging markets, citing a new study by Boston Consulting Group and echoing past FSG reports.

“Echoing the same message in FSG’s report Winning the Race For The Market Diamond, local competition gaining market share in emerging markets is an increasing concern for multinationals, particularly for MNCs that focus on the burgeoning emerging market middle class. Read the report to understand the strategies other companies have used to battle the evolution of growing domestic companies,” says Sam Osborn, Associate Practice Leader for FSG’s global analytics.