Conference Presentation, Webinar, Panel
Investing for Impact in Emerging and Frontier Markets
Milken InstituteGlenn Yago, Bonnie Glick, Ambassador Gil Haskel, Strive Masiyiwa, Weldon Turner, Malado Kaba, Gil Haskel
- The next seminar is scheduled for August 27th, focusing on zoonotic diseases and planetary health, while the global conference concluding the Institute's recent series is set for October 12th to 21st.
- A transition from the current pandemic is projected to unlock enormous growth potential driven by demographics and the economy for the remainder of the century, with significant activity expected in the current decade.
- Digital technologies and finance are expected to be combined to foster a robust post-pandemic recovery, creating an inclusive and regenerative economy that prevents economic depression in emerging frontier markets.
- $12 trillion in business opportunities exist for sustainable development, while current data shows 50% to 60% of global GDP is concentrated in developing markets, a figure projected to reach 70% in Sub-Saharan Africa and Asia by mid-century.
- Private sector engagement is deemed essential to address development challenges, with private sources expected to represent approximately 90% of financial flows into emerging markets.
- Governments are expected to reduce political and regulatory uncertainty and partner with the private sector to strengthen local markets, facilitating a shift where market forces drive demand back to an upward trend.
- Trusted digital networks are viewed as a development opportunity and national security priority, prompting USAID to coordinate advocacy and co-financing for 5G deployment in emerging markets alongside partners like Israel.
- Bilateral collaboration is being expanded through a global MOU agreed upon one year ago, with efforts focused on adapting technology to local standards even if initial ROI is lower than standard investments.
- A funding gap of $5 to $7 trillion is projected between current SDG resources and the $23 trillion in climate funding needs, with an estimated $5 trillion required annually to address housing, banking access, and fragile economies.
- Financial instruments are being mobilized to support these goals, including $913 billion invested in green, social, and sustainability bond markets, and $60 billion to be deployed by the U.S. Development Finance Corporation (DFC).
- Africa is expected to sustain growth for over 20 years, leveraging a population of 1.2 billion people through regional collaboration platforms like the Africa Free Trade Area to attract investment from both Eastern and Western sources.
- By 2050, Africa's population is projected to reach approximately 2.5 billion, creating a need for integration of financial markets into local currencies or a unified currency to sustain prosperity.
- Investors are expected to recognize that Africa rewards patient capital, though structured entrepreneurs will continue to face a funding gap for job creation despite debt cancellation being a topic of continued debate.
- Development efforts require extensive proof, convincing, and door-to-door mentoring to overcome conservative cultural habits, with local leadership expected to lead proactive efforts to ensure success.
- Local markets must not be left behind to ensure global growth returns, and the administration investing heavily in development-based infrastructure is expected to manage the transformation of emerging markets into developed economies.