Author: OBG Admin

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Changing situation: Questions are being raised about the future trajectory of China’s flagship Belt and Road Initiative amid the Covid-19 pandemic

Posted OBG AdminPosted in Uncategorized

  The Belt and Road Initiative (BRI) is a far-reaching plan for transnational infrastructure development, connecting five continents through land and sea corridors, and industrial clusters. Launched in 2013, the BRI was initially planned to revive ancient Silk Road trade routes between Eurasia and China, but the scope of the initiative has since extended to cover 138 countries, including 38 in sub-Saharan Africa and 18 in Latin America and the Caribbean. Prior to the Covid-19 pandemic the Asian Development Bank estimated that the infrastructure financing

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

On equal footing: The government focuses on bolstering local production capacity while pursuing bilateral trade agreements

Posted OBG AdminPosted in Uncategorized

  In recent years Papua New Guinea has moved away from the long-held policy of tariff reductions towards import substitution and self-sufficiency. As the Covid-19 pandemic underlined the vulnerability of international supply chains, efforts to scale up local industrial production and decrease reliance on imported staples are taking on renewed importance. Policy In August 2017 PNG launched the National Trade Policy (NTP) 2017-32 with a view to increasing exports and supporting the expansion of small and medium-sized enterprises. At the same time, the government announced

George Richani-CEO-Al Ahli Bank of Kuwait

Hedge against uncertainty: Gold exports are poised to sustain extractive sectors through the Covid-19-induced commodities slump

Posted OBG AdminPosted in Uncategorized

  The outbreak of Covid-19 in the first half of 2020 took an economic toll on countries around the world, with each experiencing the effects slightly differently. In Papua New Guinea the pandemic placed the country’s foreign exchange (forex) reserves under renewed pressure; PNG’s forex flows are primarily linked to commodity markets, many of which entered negative territory when the pandemic took hold. In 2019 extractive industries were responsible for approximately 94% of the country’s exports, mostly stemming from liquefied natural gas (LNG) and gold.

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Long way home: How is the Covid-19 pandemic affecting the flow of remittances into emerging markets?

Posted OBG AdminPosted in Uncategorized

  The onset of a Covid-19-induced global recession has affected both labour markets and financial flows around the world. At the confluence of these two are remittances, which have increasingly been among the top contributors to GDP in many emerging markets over recent decades. The issue is particularly pertinent for the countries located in the so-called yellow slice of the global economic pie – the group of high-potential economies that make up Oxford Business Group’s emerging markets portfolio. In late April 2020 the World Bank predicted that remittances to low- and middle-income countries would see the sharpest decline in recent history, falling by 19.7% to

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Small but mighty: The government is pursuing ambitious plans to develop local entrepreneurship to boost employment and growth

Posted OBG AdminPosted in Uncategorized

  Small and medium-sized enterprises (SMEs) in Papua New Guinea currently generate 0.8% of exports and account for 6% of GDP. However, policymakers see substantial opportunities in providing these smaller companies with enhanced institutional and financial support. Indeed, the government estimates that SMEs have the potential to generate more than half of formal sector employment and contribute 50% of the country’s GDP by 2030. Government Planning Nurturing the growth of SMEs forms a central part of government policy for the coming decade. The first objective of

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Knock-on effect: The government’s plans to increase financial inclusion have opened up the potential for new mobile insurance products

Posted OBG AdminPosted in Uncategorized

  Since Prime Minister James Marape took office in May 2019, the government has continued to implement a number of strategies aimed at increasing the accessibility of financial services. The National Financial Inclusion Strategy 2016-20 seeks to promote digital services and more inclusive insurance, while the Financial Sector Development Strategy 2018-30 advocates the use of financial technology to advance branchless banking services in rural communities and the development of a curriculum to enhance financial literacy. Achieving these aims should be aided by recent improvements to

George Richani-CEO-Al Ahli Bank of Kuwait

In the pipeline: Negotiations continue on two new liquefied natural gas projects as the government seeks to maximise their benefits

Posted OBG AdminPosted in Uncategorized

  Papua New Guinea first started producing liquefied natural gas (LNG) in April 2014 when the flagship $19bn PNG LNG project came on-line months ahead of schedule. With the project exceeding export expectations, the focus has now shifted to two new projects, which would more than double the country’s LNG production capacity if they come to fruition. However, as the government is determined to reap more economic and social benefits from resource projects than ever before, as of June 2020 an agreement has yet to

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Changing dynamics: Will the pandemic result in a lasting shift in global supply chains for essential pharmaceutical and agricultural goods?

Posted OBG AdminPosted in Uncategorized

  As globalisation has increased, the world’s supply chains have become substantially more interconnected, and goods often have more stages to pass through before reaching the end consumer. From national lockdowns to closed airspace and borders, Covid-19 has resulted in unprecedented disruption to the mechanics of most economies, regardless of their size or stage of development. In particular, these barriers have placed a major strain on international supply chains, including essential linkages relating to food and medicines. Pharmaceuticals While commercial airlines are temporarily repurposing their

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Unlocked land: Reforms target formalising areas under customary ownership

Posted OBG AdminPosted in Uncategorized

  Accelerating land reform has been a key priority in enabling socio-economic progress in Papua New Guinea, and several development programmes have been put in place to this end. Since being elected in 2019, Prime Minister James Marape and his administration have placed a particular focus on mobilising large areas of customary land for development, while also emphasising the empowerment of customary landowners. Legal Considerations Owing to PNG’s colonial history, the legal system recognises both English common law and customary land rights, as land ownership has historically been guided by customary traditions and passed verbally between generations. Around 97% of land in PNG was under customary

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Local focus: The importance of domestically grown produce is rising amid potential disruptions to supply chains

Posted OBG AdminPosted in Uncategorized

  Towards the beginning of the Covid-19 pandemic, many people chose to stockpile groceries, raising questions about food security in the event of prolonged disruption to supply chains. As of June 2020 restrictions included suspension of domestic and incoming international flights; a ban on movement between provinces except for approved cargo, medical supplies and security forces; and home quarantine for everyone other than essential workers. The government’s swift actions were calculated to prevent health care infrastructure being overwhelmed by cases of community transmission. As of