Blog Category: International Expansion

Dec #3: German African FDI, US Green Policy, UK South Korea FTA, EU Chile Trade, Ohio manufacturing, COP15

2021 saw German companies investing $1.6 billion in Africa which is a drop from 2016-2020 at $9.7bn and much less than France or the UK. Headlines report the number should be higher – only 1% of Germany’s global FDI ends up in Africa. China’s investments increase 40x year on year, but that has not been without its own issues. We also read that the new EU initiative Global Gateway which would rival the Chinese Belt and Road initiative. The new Global Gateway would invest Euro 150 billion in the African market. We also read about Germany’s approach to Namibia to fund a Euro 10 billion green hydrogen fund which would ship clean energy to Europe. This would diversity the green energy supply chain away from China which dominates the market as a producer of materials such as solar panels. Since the Ukraine war Germany has reduced energy reliance on Russia drastically as of when Russia turned off the pipeline. Germany needs to import 5 million tonnes of green hydrogen in 2025 if green hydrogen is to work, and has approached major African nations.

Dec #2: Mercosur, US states, AfCFTA vs Agoa, Make in India, US FDI, Global FDI

In 2019 EU signed the ‘Mercosur’ trade pact with 4 South American countries Argentina, Brazil, Paraguay and Uruguay after 20 years of negotiations. The deal was reportedly held up due to Brazil’s former Prime Minster Bolsonaro’s poor preservation of the Amazon rainforest. Brazil’s new Prime Minister has said he will preserve the Amazon rainforest which EU chiefs have said would lead to the signing of the deal. However, Argentina’s President says the environment was an excuse and Brazil and Argentina did not agree to the terms which would damage the car industry in those two countries. He says the deal is unbalanced and would severely affect the car industry but also would not give South America access to sell agricultural products into Europe. Argentina and Brazil want to reopen negotiations.

Nov #5 Update: Indianapolis grows, FDO outlook 2030, Colombia tax reform, India healthcare, Australia India FDI, India healthcare

Global FDI is forecast to decrease further as countries enter into recessions caused by high cost of living, global food shortages, inflation, rising energy prices and massive national debt. The Bank of England expects a UK recession of 5 quarters long with a retraction of 2% on the economy starting later in 2022. Unctad says the global FDI decline is likely to continue until 2023. Global FDI flows in the second quarter of 2022 were down 31% on the first quarter. Investor uncertainty is very high now leading to a reduction in investing.

Nov #4: UK at G20, China South Korea, Irish exodus, Saudi, Milan fintech

Sunak is taking his time with trade deals, and it’s said he prefers detail over speed. Whereas Johnson had the remit to do as many trade deals as quickly as possible to fulfil UK’s independent status after Brexit, now things are appearing to slow down. The much talked about India UK trade deal is now in focus. Sunak met with Indian Prime Minister Modi last Wednesday and hinted he was after improved terms rather than fix it by a deadline. This is a change of approach from the original ‘deal by Diwali’ headlines we saw under Johnson and Truss.

Nov #3 Update: Fintech’s future, Red Latin America, Kenya South Africa, El Salvador, ASEAN, Cold Chain, Ireland, Australia, Semiconductors, Medica

Global FDI is forecast to decrease further as countries enter into recessions caused by high cost of living, global food shortages, inflation, rising energy prices and massive national debt. The Bank of England expects a UK recession of 5 quarters long with a retraction of 2% on the economy starting later in 2022. Unctad says the global FDI decline is likely to continue until 2023. Global FDI flows in the second quarter of 2022 were down 31% on the first quarter. Investor uncertainty is very high now leading to a reduction in investing.

Nov#2 Update: Taiwan America FTA, Amazon £53m female tech fund, Latin America currency, Best countries, Japan India FDI, San Jose contraction

Global FDI is forecast to decrease further as countries enter into recessions caused by high cost of living, global food shortages, inflation, rising energy prices and massive national debt. The Bank of England expects a UK recession of 5 quarters long with a retraction of 2% on the economy starting later in 2022. Unctad says the global FDI decline is likely to continue until 2023. Global FDI flows in the second quarter of 2022 were down 31% on the first quarter. Investor uncertainty is very high now leading to a reduction in investing.

“On the Ground” Commercial Due Diligence: Middle Eastern market.

International clients increasingly question the need to undertake the commercial due diligence process when addressing a potential distributor partnership agreement. They tend to skip the due diligence process and go straight to the preparation of the transaction contract, arguing that it is time consuming and costly, and they can rely on publicly available information on the target’s business as well as with the inclusion of broad indemnities in the transaction documents.

Nov#1 Update: Global FDI, Kenya Spain trade, Private Equity, Romania, Egypt, Korean tax, UK India FTA

Global FDI is forecast to decrease further as countries enter into recessions caused by high cost of living, global food shortages, inflation, rising energy prices and massive national debt. The Bank of England expects a UK recession of 5 quarters long with a retraction of 2% on the economy starting later in 2022. Unctad says the global FDI decline is likely to continue until 2023. Global FDI flows in the second quarter of 2022 were down 31% on the first quarter. Investor uncertainty is very high now leading to a reduction in investing.

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