CFI.co Spring 2024

F OL L O W ING DOE S N ’ T GE T YOU T HE R E F IR S T. ERLING HA AL AND WE ARS THE NAVITIMER .

MASERATI GRANTURISMO FOLGORE THE OTHERS JUST TRAVEL

THE FIRST FULL-ELECTRIC MASERATI EVER. Power consumption (kWh/100 km): 23,1 - 22,1; CO 2 emissions combined (g/km)*: 0; Energy efficiency category: B * CO 2 is the main greenhouse gas responsible for global warming; average of all new cars registered for the first time in Switzerland in 2024: 122 g/km. The CO 2 target value is 118 g/km.

WAT C H M A K I N G O N C E A G A I N F I N D S BRITISH SHORES The Limited Edition Bremont Longitude is a groundbreaking timepiece that not only looks back at our country’s legacy but also forward to an exciting future of British watchmaking.

The watch’s case back incorporates brass from the original “Flamsteed Line,” in Greenwich, the very spot where the first Astronomer Royal made his celestial observations in pursuit of an aid to navigation.

It has long been the goal of Bremont to bring watch manufacturing back to Britain. The Longitude represents a milestone in that journey, a homecoming of sorts, and proof that, to get where you’re going, you need to know where you came from.

First Thoughts China is the world's second-largest economy, and for decades it has been a driver of global prosperity.

in the digital sphere, have made the future seem especially bleak for recent graduates.

That contribution to the world economy, outshone only by the US, has brought millions out of poverty, changing the dynamics of worldwide trade and production.

In recent years, though, China's once apparently unstoppable economic engine has begun to stutter.

A generation of unemployed, or underemployed, youth is a decisive factor in the stifling of long-term economic growth. A lack of possibilities can lead to disillusion — and even social unrest. This is an emerging challenge to the Chinese government's traditional tactics for social control.

And that’s prompting concerns about long-term ramifications. In Early April 2024, Fitch Ratings downgraded the country's outlook to negative, after debt levels hit a worrying $442bn.

The real estate crisis in China is a big one. For years, the sector has been a consistent driver of expansion, creating wealth and increased urbanisation. But a government crackdown on excessive borrowing by developers, and a shift in demographics, have caused a significant slowdown.

The most obvious example of this problem is the case of Evergrande, one of China's biggest property developers. It has been taken to the verge of bankruptcy by mountainous debt — and that has sent shockwaves through the industry. Developers are faltering, incomplete housing projects have stagnated — and homebuyers are losing faith. Property sales, and prices, are falling.

The consequences extend far beyond the property market. Local governments have come to rely on land sales for revenue, and construction is directly related to a range of sectors. The effects are being felt across the country, with an overall slowdown — and diminishing confidence in the property sector.

Low consumer spending is another thorn in China’s economic flank. While there is still a sizable middle class, rising living costs and concern about job security are limiting household budgets. The enduring consequences of the country's draconian “zero-Covid” policies have dented consumer morale, with uncertainty discouraging spending and long-term commitment.

First Thoughts

This slowdown in spending impacts businesses — across industries, from retail to hospitality. The lack of demand has exacerbated the economic downturn — and will hamper jobs creation. The negative feedback loop between low spending and economic stagnation is further stifling growth.

China is facing a major unemployment issue, especially for young people. The jobless rate for those aged 16-24 has hovered around 20 percent in recent months, way above the normal national average. This is of concern — for its economic impact, and its effect on society.

A goodly portion of China's young, urban workforce has historically relied on the gig economy and/or the tech sector. Recent regulatory crackdowns on internet companies, and general uncertainty about employment 8

These economic woes are not limited to Chinese borders and boundaries. The nation is a major trading partner for many countries, and a critical link in the global supply network.

With its massive internal market, China is also a major consumer of goods and services. A deteriorating Chinese economy hits import demand, with knock-on effects felt around the world. This is of particular concern for nations relying on exports.

China's manufacturing capabilities are inextricably linked to global supply systems. Problems in manufacturing, whether induced by a general slowdown or the lingering effects of pandemic lockdowns, can result in shortages and delays — whose effects could be almost unlimited.

This increases inflationary pressures and makes it difficult for domestic firms to meet client demand.

All this could cause volatility in global financial markets.

Investors may move to safer havens, boosting the US dollar and putting added pressure on developing currencies. This raises additional challenges for nations struggling to manage debt or control import costs.

China's economic slowdown may reduce demand for commodities such as iron ore, copper, and oil. This results in decreased price points for these resources, which will in turn hit exporting countries such as Brazil and Australia, as well as some African nations.

The Chinese government is aware of these issues. To boost the property sector, regulators have relaxed some lending limits for developers, and encouraged banks to provide additional financing. To bolster consumer spending, the government has implemented targeted tax cuts to rebuild confidence following the pandemic lockdowns.

The efficacy of these interventions remains to be seen.

The property market may be too top-heavy and indebted for any sort of rapid revival. Consumers are likely to remain cautious as long as there is uncertainty about employment. Finding solutions to fundamental structural issues is time-consuming, intensive, and could involve some uncomfortable adjustments.

China's economic state illustrates the fine balance between supporting growth and managing risk. It also highlights the country's bumpy transition from an investment-driven economy to one orientated towards consumption.

First Thoughts

9

> Correspondence

“ “

Elon Musk's acquisition of Twitter, now X, has resulted in some major changes. While some (such as Jason Ogilvy, whose letter appeared in your Winter edition) may criticise these disruptions, it is important to evaluate the possible benefits.

Musk wants to make X an "everything app" with more features than most social media offerings. This might provide users with a means to communicate, make payments, and access “approved” news stories. New audio/video call functions indicate evolution.

Musk emphasises free expression. While there are concerns about potential exploitation, this may result in a platform for varied standpoints. X's recent candour regarding the dismantling of electoral interference teams might be interpreted as a step towards more authentic public discourse, in which users make informed decisions based on unfiltered information.

Musk's emphasis on innovation could result in a more robust platform. Upgrading infrastructure and optimising processes, if initially chaotic, may result in a more dependable platform.

Of course, obstacles persist. Addressing misinformation and online harassment necessitate a balanced approach.

Let’s give X an opportunity to prove itself.

Time will tell whether Musk’s vision is a valid one.

GRACE WITHERSPOON (Hastings, New Zealand) The UK Post Office scandal is a disgrace to British justice, and I appreciate you covering it in an earlier issue of CFI.co.

Sub-postmasters were unfairly accused, financially ruined, and even imprisoned because of flaws in the Horizon accounting system – flaws which the Post Office was aware of, but concealed.

Lives were ruined, and families split apart.

Trust in the institution has been lost. Although recent developments have brought some justice, apologies and compensation schemes will not undo the damage.

Cosmetic reform and fresh leadership are also insufficient. The deep-seated cultural issues that led to this disaster must be addressed from the heart of the organisation.

I propose a complete rebranding for the Post Office. A new name, a new identity, and a fresh commitment to transparency and responsibility. This is about more than public image; it’s about expressing a genuine break with the past and a commitment to building a trustworthy business.

This could be hazardous, and will most likely be opposed. But if the Post Office is serious about restoring its integrity, it must confront the extent of its malfeasance. Only after such a significant makeover can we again begin to believe that the Post Office represents something worthy and exceptional.

ALAN MONTCLIFFE (Newcastle, UK)

10

Spring 2024 Issue

“

The fear that AI will result in widespread job displacement is understandable, but misguided.

While it is likely to change certain organisations, history demonstrates that technological innovation usually creates more opportunities than it destroys.

As the industrial revolution shifted employment from farms to factories, AI will generate new professions. Developers, data ethicists, and human-AI interface designers are all emerging professions, and there will be more.

AI thrives on repetitive, data-driven tasks, freeing humans to focus on creativity, problem-solving, and empathy – things the bots can’t do. AI will boost efficiency across industries. This does not mean fewer jobs, but more output – and more potential for economic growth.

In the most effective applications, AI will complement human capabilities.

Doctors use it for diagnoses, and designers use it for pattern generation. These examples show the potential of human-machine collaboration.

Of course, investments in education and reskilling programmes are needed. But totally disregarding AI means missing out on its promise for a better future.

AI can, and should, be embraced as a tool for innovation, resulting in a more competent, prosperous, and joyful workplace.

SUSAN BELLO (Lagos, Nigeria)

“

The World Economic Forum’s annual Davos conference was once regarded as an important event for global leaders and thinkers. Now, its relevance is questionable.

There is a growing sense of elitism in the world, and the WEF's emphasis on high-level businesspeople and elite officials heightens that sense of distance. This engenders mistrust at a time when societal divisions are stark enough.

The WEF is frequently chastised for making lofty pronouncements without taking follow-up action. High-minded conversations about inequality and climate change rarely result in actual legislation with real-world impact.

The proliferation of alternative venues, and the ease of global communication, have devalued the WEF's exclusive nature.

Issues of global significance are now debated on a variety of fora, by people from all social strata.

The WEF may still have a role to play, but only if it becomes a true force for advancing vital issues in an increasingly complex world.

ADRIAN BROMLEY (Pretoria, South Africa)

11

IBM Thought Leadership >

Chairman Lord JD Waverley

Transparency Makes the Invisible Hand COVER STORIES Visible Again, And Inclusive

Editorial Team

Sarah Worthington

by Paolo Sironi George Kingsley Tony Lennox Strategic Reimagining Brendan Filipovski Around Blended Finance John Marinus Paolo is the global research leader in Banking and Financial Ellen Langford – 15) Markets at IBM, Institute of Business Value. IBV(14 is the Helen Lynn Stone thought leadership centre of IBM. Naomi Snelling

UNCDF

Columnists

Otaviano Canuto Lord Waverley

Production Director Jackie Chapman

Distribution Manager William Adam

Subscriptions Maggie Arts

IBM AI — A Catalyst for Economic Transformation (18 – 19)

Cover Story Green Awakening (24 – 29)

Accenture Embracing Cloud Based Operating Models

Commercial Director John Mann

Director, Operations Marten Mark

Publisher Anthony Michael

Capital Finance International Meridien House 69 - 71 Clarendon Road Watford WD17 1DS United Kingdom T: +44 203 137 3679 F: +44 203 137 5872 E: info@cfi.co W: www.cfi.co

Cover image: Ian Munro/The West Australian Printed in the UK by The Magazine Printing Company using only paper from FSC/PEFC suppliers www.magprint.co.uk

12

(94 – 95)

EY Argentina Congress to ‘Incentivise FDI’ (100 – 101)

Kellogg Insight New Tech - Who Wins & Who Loses?

(114 – 115)

Asian Development Bank Transforming Food Systems (122)

CFI.co | Capital Finance International

Spring 2024 Issue

FULL CONTENTS 14 – 31

As World Economies Converge UNCDF

Pradeep Kurukulasuriya

Otaviano Canuto

Paolo Sironi

IBM

Nouriel Roubini

Mohamed A El-Erian

Rio Tinto

Jakob Stausholm

Anthony Michael

Anya Schiffrin

Dylan W Groves

Joseph E Stiglitz

32 – 39

Spring Special Looking Back, Leaning Forward, Listening Hard, Fingers Crossed

40 – 69

Europe

70 – 83

FLI Group

Pedro Coelho

Square Asset Management

Alessandro Hatami

Pacemakers

Professor Fabrizio Ferraro

CFI.co Awards Rewarding Global Excellence

84 – 89

Africa Barrick Gold

90 – 95

Hi-Fi Review

Middle East Accenture

Omar Boulos

96 – 105

Latin America EY Argentina

Sergio Caveggia

Andrew Frost Moroz

Vector Casa de Bolsa

Edgardo Cantú

Kellogg Insight

Susie Allen

Leonid Kogan

Dimitris Papanikolaou

Lawrence Schmidt

Bryan Seegmiller

Aloha Browser

106 – 115

North America

116 – 125

Asia Pacific Jesús Escudero

126

Asian Development Bank

Qingfeng Zhang

Final Thought Jesús Escudero

CFI.co | Capital Finance International

13

> UN Capital Development Fund Sets Off on

Strategic Reimagining Around Blended Finance with Appointment of New Executive Secretary

Strategic Focus will center on deploying UNCDF’s capability to strengthen UN’s Development Offer by crowding in private sector finance to scale development impact in countries at greatest risk of being left behind.

T

he United Nations Capital Development Fund (UNCDF)—the UN’s catalytic finance entity for developing countries—announced last week that Pradeep Kurukulasuriya (Sri Lanka) will commence his tenure as Executive Secretary for the organisation.

In assuming the position, Kurukulasuriya as Executive Secretary will focus on strengthening the organisation’s unique capability to crowdin finance to scale development impact where the needs are greatest—a capability rooted in UNCDF’s unique investment mandate to blend and deploy grants, loans and guarantees as well as related advisory services, especially in Least Developed Countries (LDCs).

“The UN Capital Development Fund is an integral part of the UN Development System’s offer to developing countries. It brings a unique capacity to operate in high-risk market conditions, without the constraints of credit ratings, and where it is most needed to address last mile challenges in deploying finance,” said UNDP Administrator Achim Steiner, who also serves as Managing Director for UNCDF. “It is a perfect instrument to break through a glass ceiling that exists in financial markets and in financial engineering. UNDP is proud to welcome Kurukulasuriya in this new capacity to strengthen UNCDF’s capabilities to crowd in private capital for where it matters most.”

“It is time to get to work immediately. Time is fast running out to meet the Sustainable Development targets set for 2030. Developing countries, especially the least developed ones, are furthest behind, resulting in an inequitable context that is untenable for long-term prosperity. UNCDF, with its unique mandate of deploying blended finance solutions, must double down on its efforts to support the rest of the UN to collectively advance on the SDG agenda,” said Kurukulasuriya. “I am excited, along with my colleagues at UNCDF, to put our collective shoulder to the wheel and help play our part in propelling the UN-led effort forward”.

Kurukulasuriya’s strategic focus as Executive Secretary will involve overseeing a business 14

Executive Secretary: 2

model for UNCDF that maximises the value of the organisation’s investment mandate to deploy grants, loans and guarantees in the form of blended finance. This unique investment mandate in the UN System dates to the inception of UNCDF by the UN General Assembly in 1966, which stated that “The purpose of the Capital Development Fund shall be to assist developing countries in the development of their economies by supplementing existing sources of capital assistance by means of grants and loans(.)” Another key priority will be to strengthen UNCDF’s internal risk management, oversight practices and operational business model so that the organisation can play a scaled up role in LDCs. CFI.co | Capital Finance International

By optimising UNCDF’s investment mandate to crowd-in development finance for developping countries and LDCs, Kurukulasuriya will look to position UNCDF as an accelerating partner in service to governments to achieve their domestic development agenda, donors to achieve their international development priorities, and UN agencies as well as UN Country Teams to accelerate achievement of the Global Goals (or the Sustainable Development Goals) and the Doha Programme of Action for Least Developed Countries.

As part of the effort to support UN Partner Agencies, UNCDF will explore ways to enhance

Spring 2024 Issue

its long-standing partnership with UNDP and other UN Organisations, as per UN General Assembly directions. Building on his 18year career at UNDP—where he spearheaded partnerships with other UN organisations such as WHO, UNEP, and FAO; with multi-lateral development banks like Asian Development Bank, Asian Infrastructure and Investment Bank, African Development Bank, European Investment Bank, European Bank for Reconstruction and Development; and with asset management firms such as Pegasus— Kurukulasuriya will identify opportunities that combine the UN’s global reach and development prowess with UNCDF’s unique ability to deploy financial instruments to mobilise and crowdin finance. This will include exploring ways to strengthen support to UNDP country offices and other UN organisations, as well as with the private sector, development finance institutions and multi-lateral development banks.

Overall, Kurukulasuriya will continue UNCDF’s commitment and practice to work in countries traditionally overlooked in the capital markets; namely, to provide UNCDF’s investment tools and capabilities primarily for the 45 least developed countries. In the process, UNCDF will commit to working with partner governments as co-investors in financing national development

plans while accelerating SDG achievement to ensure that we leave no one behind.

“It is only the power of the collective— governments, private sector, NGOs, the UN and most importantly, all of us—that will help address the challenges at hand in a materially impactful manner,” said Kurukulasuriya. “I am excited about the prospects of continuing to work alongside my colleagues in UNDP, UNEP, FAO and UNICEF among many others who I have worked with for a number of years on nature, climate and energy related issues. Additionally, I am eager to now broaden such support to other development priorities, such as infrastructure, water and sanitation, education and the like, by utilising the financial instruments of UNCDF, a unique capability in the entire UN system to support development.”

Kurukulasuriya is a Sri Lankan economist with a Ph.D. from Yale University. He previously held the position of UNDP Executive Coordinator for Environmental Finance where he oversaw a US$ 5 billion nature, climate and energy finance portfolio across 140 countries. In this role, Kurukulasuriya provided strategic leadership of partnerships with multilateral environment and climate funds as well as with the private sector, development banks, and private CFI.co | Capital Finance International

equity funds related to climate finance. His experience included overseeing blended finance programming, results-based management and compliance with financial rules and regulations.

From 2019-2023, Kurukulasuriya led UNDP’s Nature, Climate, and Energy Practice, leading over 300+ personnel across headquarters and five regional hubs. Previously, he led the development and oversight of UNDP’s Climate Change Adaptation portfolio. Additionally, as a senior technical lead in the Global Environmental Finance team from 2010-2018, he played a key role in trebling UNDP's resource mobilisation efforts for nature, climate and energy. Prior to joining UNDP in 2006, he worked with the World Bank and an NGO in Sri Lanka. i ABOUT UNCDF The United Nations Capital Development Fund (UNCDF) is the United Nations' flagship catalytic financing entity for the world’s 45 least developed countries (LDCs). With its unique capital mandate and focus on the LDCs, UNCDF works to invest and catalyse capital to support these countries in achieving the sustainable growth and inclusiveness envisioned by the 2030 Agenda for Sustainable Development and the Doha Programme of Action for the least developed countries, 2022–2031.

15

> Otaviano Canuto

How Will AI Affect the Economy?

Artificial intelligence (AI) is the name given to the broad spectrum of technologies by which machines can perceive, interpret, learn, and act by imitating human cognitive abilities.

A

utomation was created to better fulfill repetitive tasks, increasing productivity. AI, with its impressive rate of evolution, can produce new content: texts, images, new computational codes, possibly medical diagnoses, interpretations of data, and so on. It is no coincidence that an AI-based technological revolution is predicted.

I like the way Jesús Fernández-Villaverde of the University of Pennsylvania illustrates the differences between automation and AI:

“Artificial intelligence is not designing a robot that will put a screw in a car on a production line when the time comes, but designing a robot that knows how to interpret that the car arrived crooked to the left or that the screw is broken, and that will be able to react sensibly to this unexpected situation.”

AI will have consequences in areas beyond the economy, including national security, politics, and culture. In the economy, it promises to reshape many professional functions, as well as the division of labor, and the relationship between workers and physical capital. While the impact of automation has been on repetitive work, the impact of AI tends to be on tasks performed by skilled labor.

Figure 1. Source: International labour Organization (ILO) and IMF staff calculations.

CFI.co Columnist

What effect will AI have on productivity and economic growth, and on social inclusion and income distribution? The impact on work processes and the labor market will be a key element in answering these questions.

It can be anticipated that, in segments of the work process where human supervision of AI will continue to be necessary, the trend will be a substantial increase in productivity and demand for work. In other segments, AI could lead to significant displacements or the simple elimination of jobs. As Daron Acemoglu and Simon Johnson put it in an article in the December edition of the International Monetary Fund’s Finance and Development magazine, “to support shared prosperity, AI needs to complement workers, not replace them”.

The systematic increase in aggregate productivity could, in principle, reinforce economic growth and, thus, underpin increases in aggregate demand, generating employment 16

Note: Share of employment within each country group is calculated as the working-age­population-weighted average.

opportunities that would compensate for the destruction of jobs. This evolution could also lead to the emergence of new sectors and professional functions, while others disappear, in a dynamic that will go beyond mere intersectoral reallocation.

In addition to the effects on employment and wage-income distribution, income distribution will also depend on the impact of AI on capital income. This will tend to grow in activities that create and leverage AI technologies or have stakes in AI-driven industries. Depending on the implications in terms of the ‘market power’ of firms, there will be effects on the distributions of capital income and between capital and labor.

On January 14, the IMF released the results of exploratory research into the impacts of AI on the future of work . An estimated 60% of CFI.co | Capital Finance International

jobs in advanced economies will be affected, with the percentage falling to 40% in emerging economies, and 26% in low-income countries, because of differences in their current employment structures (Figure 1).

The report estimated that half of the jobs impacted will be affected negatively, while the other half may see increases in productivity.

The lesser impact on emerging and developing countries will tend to lead to fewer benefits in terms of increased productivity.

The report highlighted how a country’s level of preparedness for AI will be relevant when it comes to maximising the benefits and dealing with the risks of the technology’s negative effects. The report included an index to measure the state of preparation of countries, taking into account digital infrastructure, economic integration and innovation, levels of

Spring 2024 Issue

Figure 2. Note: The figure shows the contribution of digital infra-

structure, innovation and integration, human capital and policies, and regulation and ethics to Al preparedness by country. The length of the bar indicates Al preparedness. Highlighted bars denote the country group average. AEs = advanced economies; EMs = emerging market economies; LICs = low-income countries.

Country names use International Organization for Standardisation (ISO) country codes.

human capital and labor market policies, and regulation and ethics.

In a set of 30 countries evaluated in detail, Singapore, the United States, and Germany appear in the top positions, while middleincome countries appear alongside low-income countries at the bottom (Figure 2). Increasing each country’s level of AI preparedness should clearly be considered a policy priority. i

Originally published at Policy Center for the New South.

17

CFI.co Columnist

ABOUT THE AUTHOR Otaviano Canuto, based in Washington, D.C, is a former vice president and a former executive director at the World Bank, a former executive director at the International Monetary Fund, and a former vice president at the Inter-American Development Bank. He is also a former deputy minister for international affairs at Brazil’s Ministry of Finance and a former professor of economics at the University of São Paulo and the University of Campinas, Brazil. Currently, he is a senior fellow at the Policy Center for the New South, a professorial lecturer of international affairs at the Elliott School of International Affairs - George Washington University, a nonresident senior fellow at Brookings Institution, a professor affiliate at UM6P, and principal at Center for Macroeconomics and Development. Otaviano has been a regular columnist for CFI.co for the past 12 years. X: @ocanuto

Paolo is the global research leader in Banking and Fin Markets at IBM, Institute of Business Value. IBV is thought leadership centre of IBM.

> Paolo Sironi: Artificial Intelligence —

A Catalyst for Economic Transformation Artificial Intelligence (AI) stands as a beacon of promise on the horizon of technological advancement, poised to reshape the landscape of human endeavor in profound ways.

T

he recent months witnessed an unparalleled surge in enthusiasm for AI, buoyed by remarkable advancements in generative AI—a probabilistic technology capable of producing human-like content based on vast troves of training data. Stocks tethered to AI soared to the pinnacle of market performance, indicative of pervasive investor confidence in AI's transformative potential. Meanwhile, terms like "authentic" and "hallucinate" reigned supreme in linguistic lexicons, epitomising society's infatuation with AI-driven innovation and the risks involved.

IBM Thought Leadership

The potential applications of AI are as vast as they are varied. Yet, a key question is if AI can drive substantial economic growth and enhance productivity on a global scale, reversing a trend of declining productivity rates that characterised the new century (see figure 1). Barclays Research and IBM Institute for Business Value explored how recent breakthroughs in AI could provide a boost

to labour productivity, similar to past periods of revolutionary technology change. While the debate is on among economists, Barclays’ and IBM’s research shed some light into the future.

Throughout the annals of history, transformative technologies have already proven to fuel productivity rates, measured as output per worker like Gross Domestic Product (GDP). The steam engine, electricity, and personal computers have indeed heralded epochs of unprecedented economic expansion. These innovations not only bestowed wealth upon their creators but also cascaded benefits across generations. Now, in the age of AI, could we witness a similar economic renaissance?

Examining the moving average of GDP growth reveals that the steam engine, invented in 1765, took almost 100 years to impact the productivity rate of nations. Also, the light bulb took decades from its 1879 invention to reach widespread levels of adoption and impact labor productivity. While

Figure 1

18

CFI.co | Capital Finance International

the time gap seems to shorten, a similar pattern has been observed after the 1971 invention of the personal computer: the productivity surge occurred only in the 1990s, three decades after.

This contrasts with the decline observed as the new century opened, leading to question why rates declined notwithstanding a continuous advancement in computer technology – especially considering the invention of smartphones.

Provocatively, we can ask if smartphones truly enhanced our intelligence, thus our productivity. Unrestrained access to social media and other entertainment apps may have made large impressions on the consumer, but simply might not have generated the kind of productivity improvement associated with, say, the automobile, intercontinental flight, or air conditioning. It is also possible that what we are seeing measurement errors: that the output produced in a digital world is not adequately captured by traditional GDP statistics. Many digital products have zero marginal costs and

Author: Paolo Sironi

are often provided free of charge. Therefore, they might not show up as an increase in output – even though they provide some value to consumers.

In this regard, AI is not a new technology, although public awareness surged very recently due to public accessibility of generative AI. The history of AI can be traced back to the 1950s, when Alan Turing introduced a test to measure “computer intelligence”. And that is when companies like IBM started investing in AI development.

This indicates that AI is not a “new invention” waiting for mass market adoption, but a maturating invention that is being currently adopted massmarket.

AI increased accessibility and versatility, especially in augmenting human capabilities with Large Language Models and their derivatives, seems to indicate that the time gap between invention and impact is now closing.

After the 1990s, the world economies suffered the Global Financial Crisis, while the euro-debt crisis swept across Europe. This might have reduced productivity rates. More importantly and on a structural level, an aging workforce became a common challenge in major advanced economies, where a declining workforce contributes to lower productivity and GDP. At the same time, China and other emerging economies started facing structural challenges such as premature de-industrialisation. Rapid automation of Chinese manufacturing power may hinder productivity growth by contracting the workforce. Consequently, to understand dynamics of future productivity rates we must also determine how AI intersects with the longterm challenges of aging workforce and deindustrialisation.

For instance, can AI help augment the workforce pool and mitigate premature industrialisation by shifting towards AI-aided services? According to IBM analysis (see figure

2), there is high consensus among worldwide CEOs that the future of AI is augmentation more than automation, or a balance blend of the two (see figure 2).

However, there are also concerns about the potential negative impact of AI on productivity, such as the automation of simple services leading to decreased cost competitiveness and economic viability for smaller emerging economies which just started their industrialisation journey. Addressing these concerns, and harnessing all potential, requires transparent regulations and equitable distribution of AI resources, particularly considering its concentrated ownership among a few players. And it’s nevertheless essential to recognise that AI may not be necessary for all tasks, highlighting the need for ethical considerations and workforce upskilling to mitigate potential friction.

To learn more, access the recent Barclays Research’s and IBM Institute for Business Value’s paper AI Revolution: Productivity Boom and Beyond ib.barclays/our-insights/AI-productivity-boom.html ABOUT THE AUTHOR Paolo Sironi is the global research leader in banking at IBM, the Institute for Business Value, and he is author of business literature. His latest Banks and Fintech on Platform Economies has been Amazon bestseller in banking books worldwide. relinks.me/1119756979

Figure 2

CFI.co | Capital Finance International

19

IBM Thought Leadership

Amidst these challenges and opportunities, a resounding sense of optimism pervades discussions surrounding AI's transformative potential. By embracing AI's potential with prudence, transparency, and cooperation, we stand to traverse uncharted territories of innovation and affluence. i

> Nouriel Roubini:

China Confronts the Middle-Income Trap © Project Syndicate 2024

A

t this year’s China Development Forum (the highest-level annual meeting between senior Chinese policymakers and top CEOs, current and former policymakers, and academics like me), the discussion focused squarely on the risk of China falling into the dreaded “middle-income trap.” After all, few emerging economies have successfully joined the ranks of high-income countries.

20

Will China be an exception to this pattern?

Following 30-plus years in which China achieved annual growth rates close to 10%, its economy has slowed sharply this decade.

Even last year, with the strong rebound from the “zero-COVID” era, officially measured growth was only 5.2%. Worse, the International Monetary Fund estimates that China’s growth will fall to 3.4% per year by 2028, and, given its current policies, many analysts expect its CFI.co | Capital Finance International

potential growth rate to be only 3% by the end of this decade. If that happens, China will indeed find itself in the middle-income trap.

Moreover, China’s problems are structural, rather than cyclical. Among other factors, its slowdown is due to rapid aging, a busted realestate bubble, a massive overhang of private and public debt (now close to 300% of GDP), and a shift from market-oriented reforms

Spring 2024 Issue

the limits to export-led growth. The West’s geopolitically motivated technology sanctions are constraining the growth of its high-tech sectors and reducing inflows of foreign direct investment (FDI); and the combination of a high domestic household savings rate and low consumption rates (owing to weak social insurance and the low share of household income) is further hampering growth.

capitalism over the last decade, Premier Li Qiang, a known market-oriented reformer, appears to have been sidelined. Li neither held the customary press conference following the recent National People’s Congress nor met with the full foreign delegation at the latest China Development Forum. Instead, Xi himself hosted a smaller delegation of foreign business leaders.

The old Chinese growth model is broken.

Initially, China’s low (and thus internationally competitive) wages meant it could rely on light manufacturing and exports, before pursuing massive investments in infrastructure and real estate. Now, Chinese authorities are advocating high-quality growth based on technologically advanced manufacturing and exports (electric vehicles, solar panels, and other green- and high-tech products) led by financial incentives to already-bloated SOEs. But without a matching increase in domestic demand – especially private consumption – over-investment in these sectors will lead to over-capacity and dumping in global markets.

The most charitable interpretation of these signals is that Xi now realises he needs to engage the private sector and international multinational corporations to restore their confidence and boost FDI, private sector-led growth, and private consumption. Since Li is still around, perhaps he is pushing quietly for “opening-up and reforms,” while keeping a low profile to show deference to Xi.

China’s excess supply (relative to domestic demand) is already producing deflationary pressures, heightening the risk of secular stagnation. When China was smaller and poorer, a sharp increase in its exports was manageable in global markets. But now that it is the world’s second-largest economy, any dumping of its excess capacity will be met by even more draconian tariffs and protectionism targeting Chinese goods.

Photo: AFP

back toward state capitalism. Credit-fueled investment has grown excessive as state-owned banks lend to state-owned enterprises (SOEs) and local governments. At the same time, the government has been bashing the tech sector and other private enterprises, eroding business confidence and private investment.

In this new period of deglobalisation and protectionism, China appears to have hit

China therefore needs a new growth model concentrated on domestic services – rather than goods – and private consumption. Services as a share of GDP are too low by global standards, and though Chinese policymakers continue to talk about boosting domestic demand, they seem unwilling to adopt the fiscal and other policies required to boost private consumption and reduce precautionary household savings.

The situation demands larger pension benefits, greater health-care provision, unemployment insurance, permanent urban residency for rural migrant workers who currently lack access to public services, higher real (inflation-adjusted) wages, and measures to redistribute SOE profits to households so that they can spend more.

While China obviously needs to boost privatesector confidence and revive growth with a more sustainable economic model, it is not clear that Chinese leaders fully appreciate the challenges they face. While President Xi Jinping has overseen the move back to state CFI.co | Capital Finance International

But many observers have a more pessimistic interpretation. They note that after sidelining market-oriented technocrats such as Li, former Premier Li Keqiang, former People’s Bank of China Governor Yi Gang, advisers like Liu He and Wang Qishan, and a variety of financial regulators, Xi has created new party committees on economic and financial affairs that supersede government bodies. He has surrounded himself with advisers like He Lifeng, the vice premier for the economy, and Zheng Shanjie, the new head of the National Development and Reform Commission, who are sympathetic to the obsolete dogma of state capitalism.

Lofty statements and mantras about reforms and attracting foreign investment mean little.

What matters are the actual policies that China pursues over the next year, which will show whether it can circumvent the middle-income trap and return to the path of more robust growth. i ABOUT THE AUTHOR Nouriel Roubini, Professor Emeritus of Economics at New York University’s Stern School of Business, is Chief Economist at Atlas Capital Team, CEO of Roubini Macro Associates, Co-Founder of TheBoomBust.com, and author of the forthcoming MegaThreats: Ten Dangerous Trends That Imperil Our Future, and How to Survive Them (Little, Brown and Company, October 2022). He is a former senior economist for international affairs in the White House’s Council of Economic Advisers during the Clinton Administration and has worked for the International Monetary Fund, the US Federal Reserve, and the World Bank. His website is NourielRoubini.com, and he is the host of NourielToday.com.

21

> Mohamed A El-Erian:

Navigating Major Transitions in an Uncertain Economy © Project Syndicate 2024

O

nce again, US economic and market forecasters are having a difficult time.

Worse, while 2023 surprised on the upside, the deviation from projections in 2024 could be much less favorable.

Recall the start of 2023. Forecasters had overwhelmingly anticipated a difficult year for economic growth, and that this would translate into even more losses for the diversified-portfolio investors who had already suffered one of the 22

worst years on record in 2022. In a now famous October 2022 headline, Bloomberg warned: “Forecast for US Recession Within Year Hits 100% in Blow to Biden.”

The prediction of a 2023 recession proved correct, but only for Germany and the United Kingdom, not the United States. The contrast was stunning. While the first two countries experienced two quarters of negative growth in the second half of the year, the US economy grew CFI.co | Capital Finance International

at an annualized rate of around 4%. Meanwhile, the worrisome investment losses incurred earlier in the year yielded to handsome gains overall, owing to the dramatic turnaround in October for both stocks and bonds.

Chastened by that experience, most forecasters entered 2024 with quite a rosy outlook, anticipating that America’s growth exceptionalism would continue, as would solid investment returns. Yet the growth data for the

Spring 2024 Issue

policy, renewed regulation, and sustained budget deficits on a scale that would have been unthinkable previously.

Moreover, these economies’ policies are becoming more differentiated, whereas previously they represented common responses to common shocks. Internationally, globalization is giving way to fragmentation. All this is happening at a time when economies around the world will have different sensitivities to transformational innovations in artificial intelligence, life sciences, sustainable energy, and other fields, as well as to geopolitical conflicts and trends.

Moreover, some countries are much more flexible than others when it comes to adjusting factors of production and introducing policy measures to enhance productivity in the face of changing circumstances.

In the absence of common policy commitments and external sources of convergence, the world will be subject to a much wider range of outcomes, on top of potentially more frequent and violent shocks. But this is also a world that, if navigated well, could deliver better long-term productivity-driven growth outcomes that are also more inclusive and respectful of planetary limits.

Three issues are key to deciphering what 202425 will hold for the US economy, which is now the sole major engine of global growth: the Federal Reserve’s reaction function; the resilience of lower-income consumers; and the balance between productivity-boosting innovations and political/social/geopolitical headwinds.

Sticky inflation combined with slower growth will put the Fed between a rock and a hard place. Faced with growth uncertainties and the new global paradigm of insufficiently flexible aggregate supply, the Fed will need to decide whether to stick with its 2% inflation target or allow for a slightly higher one, at least for now.

The future of American growth exceptionalism also will depend to a considerable degree on lower-income consumers. These households’ balance sheets have been deteriorating as pandemic-era savings and stimulus payments have been drawn down, and as credit-card debt has risen. Given high interest rates and some creditors’ loss of enthusiasm, this cohort’s willingness to consume will hinge on whether the labor market remains tight. first quarter came below the consensus forecast, and inflation has proved stickier than many expected.

The difficulties facing forecasters are complicated by two broader phenomena that could last for years. These can be placed in two categories: transitions and divergences. Many advanced economies have embarked on a transition from a world of deregulation, liberalization, and fiscal prudence to one oriented around industrial

The third factor relates to the tensions between exciting innovations and a fragile political and geopolitical landscape, which makes this the most difficult area in which to offer highconfidence forecasts.

While technological advances promise a new favorable supply shock that could unlock higher growth and drive down inflation, geopolitical developments could do the opposite, as well as CFI.co | Capital Finance International

limit the scope for macroeconomic policy. Just consider the stagflationary consequences of a geopolitical shock that sends oil above $100 per barrel, or of a further deterioration in ChinaUS relations. It is easy to imagine how today’s “stable disequilibrium” could give way to a more volatile disequilibrium, which would then fuel financial instability.

Sustained US growth is especially important at this juncture because China and Europe have yet to re-establish their own growth momentum, and because “swing countries” like India and Saudi Arabia are not yet in a position to substitute for these alternative global growth engines. (The same goes for Japan, even though its economy and policy mix are in the best place they have been in decades.)

From a sectoral perspective, growth for the next few years will be driven mainly by technological innovations and the economic, social, and political forces they engender. Generative AI, life sciences, and sustainable energy will bring a wide range of reactions at the company level, and sectors such as traditional defense, health care, and cyber security will also be ones to watch.

Despite the many uncertainties, I will stick my neck out and offer some illustrative probabilities: I put the chance of a US soft landing at around 50%; the probability of a (misleadingly named) “no landing” – higher growth with no additional inflationary pressures and genuine financial stability – at around 15%; and the chance of recession and new threats of financial instability at 35%.

Or, for those who prefer images to numbers, picture a bumpy, winding road that could well lead to a desirable destination in the long term.

It is being traveled by cars whose engines and drivers vary widely in quality and in their stocks of spare tires; and those drivers must also interact with regulators who are still trying to figure out what the rules of the road should be.

While economic fundamentals, finance, and policymaking obviously will bear on the growth outlook for 2024-25, geopolitics and national politics will have a much bigger impact than in prior years. A world of inherently uncertain transitions and divergences calls for more granular analysis, a proper balance of resilience and agility, and an open mind.. i ABOUT THE AUTHOR Mohamed A El-Erian, President of Queens’ College at the University of Cambridge, is a professor at the Wharton School of the University of Pennsylvania and the author of The Only Game in Town: Central Banks, Instability, and Avoiding the Next Collapse (Random House, 2016) and a co-author (with Gordon Brown, Michael Spence, and Reid Lidow) of Permacrisis: A Plan to Fix a Fractured World (Simon & Schuster, 2023).

23

RIO TINTO'S GREEN AWAKENING:

LONG JOURNEY TO

SUSTAINABILITY ‘Sustainable’ and ‘mining’ don’t usually go in the same sentence — but one enterprising CEO is making it happen…

D

eep in the Australian Outback, Rio Tinto's massive iron-ore mine is buzzing with activity. But, among the massive trucks and towering stacks of gear, things are changing. The air is cleaner, the land less damaged — and the company's dedication to a sustainable future evident.

This welcome shift is the result of a business strategy confronting environmental concerns. Rio Tinto's leaders have recognised the importance of safeguarding the planet — and are offering a viable future for the industry, the corporation, and its customers.

Cover Story

The cornerstone of this approach was decarbonisation, with aggressive targets for lower emissions and bold investment in renewable energy sources. Massive solar “farms” sprang up alongside the mines, their panels gleaming in the stark desert light. Rio Tinto has also pledged to electrify its vehicle fleet.

And the firm’s ambitions go further than its domestic operations. Thousands of kilometres away from WA, in the Simandou mountains of Guinea, West Africa, it’s working on one of the world's largest reserves of undeveloped iron ore.

This is not “just another mine”; it's a project with sustainability at its core. Rio Tinto has dedicated itself to benefitting local communities, 24

"This is not 'just another mine'; it's a project with sustainability at its core." as well as the environment. That means heavy investment in infrastructure, education, and healthcare. The Simandou project demonstrates Rio Tinto's approach to sustainability. It combines a commitment to decarbonisation and environmental stewardship with an understanding of the expanding worldwide demand for responsibly-produced products.

That, of course, goes beyond iron ore. In the drive towards a circular economy, Rio Tinto threw money at recycled aluminium. In the US, a cutting-edge factory processes scrap alloy to reduce the need to mine and refine fresh bauxite.

This programme decreased the company's carbon footprint while addressing the global problem of resource depletion and waste.

Rio Tinto is also focusing on the critical role of copper will play in the global energy shift, and is growing this part of the business.

Copper is wildly versatile, necessary for electric vehicles, wind turbines, solar panels, and transmission lines. Rio Tinto's Kennecott mine in Utah, and the Oyu Tolgoi mine in Mongolia, CFI.co | Capital Finance International

were already major producers, and the company is investing in new projects such as Resolution Copper in Arizona.

This emphasis is about more than meeting market demand; it’s an active contribution to the fight against climate change. Rio Tinto is playing a central role in the transition to renewable energy and sustainable mobility.

INFLUENCE OF THE STRATEGY Greenhouse gas emissions from the mining giant are reducing, water consumption is decreasing, and company activities are becoming more efficient. These efforts to produce low-carbon minerals and engage in ethical mining have contributed to the global transition.

It won’t be a quick fix; this is a long-term commitment. The road ahead is still rutted, but Rio Tinto's efforts demonstrate how a huge organisation can embrace sustainability — and generate change along with profits.

Environmental stewardship and economic success need not be mutually exclusive.

This demonstrates the power of corporate strategy.

It's a narrative about creativity, dedication, and the willingness to take bold steps in an important battle. As the corporation expands into new markets and adopts new technology, it’s soon evident that the behemoth is not simply waking up: it’s maturing. i

Spring 2024 Issue

Rio Tinto's Decarb Initiative — From Extraction to Future

R

io Tinto is one of the world's foremost mining and metals firms — which gives it the heft and motivation to decarbonise extraction activities and contribute to a low-carbon future.

This requires a multifaceted approach prioritising renewable energy, electrification, energy efficiency, and innovative technology.

Renewable energy is key to cutting the carbon footprint. The company has invested in largescale solar and wind projects to power its mines and processing facilities. The Pilbara region of Western Australia, home to Rio Tinto's sprawling operations, is seeing solar panels popping up all over.

The renewable energy they generate dramatically reduces dependency on fossil fuels. The strategy includes electrifying the mining fleet. The dieselpowered haul trucks so commonly employed in mining operations are, for want of a better word, dirty. The solution, once again, is to go electric.

This cuts emissions and increases energy efficiency — with lower operational costs. Rio Tinto's commitment to green transport extends to its light vehicle fleet. Diesel’s being left in the dust.

Energy saving and process optimisation rely heavily on innovative equipment and new tech. By seeking out (and implementing) all possibilities, the Rio Tinto carbon footprint goes down — while operating efficiency rises.

With a combination of data analysis and AI, energy use is monitored in real time, detecting inefficiencies and optimising responsible consumption. Rio Tinto is going further still by researching and developing technology for lowcarbon aluminium smelting — traditionally a polluting, high-energy process. The company is also considering using hydrogen as a clean energy source. The hope is to push the frontiers and limits of sustainability in the sector.

This is more than lip-service, and Rio Tinto is in for the long haul — and ready to take on the attendant challenges. Mining requires a big spend on infrastructure and technology, thanks to the scale and complexity of operations. The availability and affordability of renewable energy can also vary between areas.

Melbourne, Australia: Rio Tinto Headquarters

Rio Tinto's efforts are positioning it to lead the way in the modern mining era. i 25

Cover Story

Despite any hurdles, Rio Tinto remains dedicated to its targets. It has set lofty goals to cut emissions and reach net-zero by 2050. This reflects a wider industry trend towards sustainability and responsible resource management.

> The Man Driving the Rio Tinto Bus:

Meet Jakob Stausholm Rio Tinto chief executive Jakob Stausholm is steering this mining giant as it rolls towards sustainability.

S

ince taking over as CEO in January 2021, Stausholm has led the company through hills and valleys of transition, aiming always for environmental responsibility, social engagement, and sustainable growth. During his tenure, he has rebuilt trust in the industry, cut carbon emissions, and cultivated a more inclusive and ethical company culture.

Stausholm's appointment came in the aftermath of the Juukan Gorge disaster, in which Rio Tinto destroyed ancient Aboriginal rock dwellings, sparking public outcry and damaging the company's brand. Recognising the gravity of the situation, Stausholm prioritised the reestablishment of confidence with indigenous communities and stakeholders. He launched an open conversation, apologising for the company's blunder and pledging a thorough evaluation of management standards on cultural heritage.

Stausholm has had his work cut out to reestablish Rio Tinto's social licence to operate; he advanced by emphasising cultural sensitivity and community participation. He has managed to foster a collaborative relationship with the affected communities.

Cover Story

Stausholm is an advocate of environmental stewardship, and recognises the importance of addressing the industry's impact. Rio Tinto’s ambitious carbon-reduction targets were established under his leadership, and he is holding onto that goal of reaching net-zero by 2050.

To minimise environmental damage, the corporation is putting its faith in renewable energy, electrifying its vehicle fleet and researching appropriate technologies. This commitment has been consistent with the worldwide call for climate action — and has established Rio Tinto as a leader in the field.

Stausholm prioritises operational excellence along with environmental and social considerations. He has launched a review of the company portfolio, divesting non-core assets and investing in initiatives aligned with longterm strategy.

26

"Stausholm has kept sharp focus on creating an inclusive and ethical workplace. He promotes open communication, diversity and respect at all levels to keep employees — as well as stakeholders and communities — feeling appreciated and empowered."

The CEO aims to improve financial performance and provide shareholders with long-term value by streamlining operations and focusing on high-value projects. He has also emphasised the importance of investment in R&D. Stausholm has kept sharp focus on creating an inclusive and ethical workplace. He promotes open communication, diversity and respect at all levels to keep employees — as well as stakeholders and communities — feeling appreciated and empowered. Rio Tinto is becoming a responsible corporate citizen by putting proper value on employee wellbeing and developing an integrity-driven culture.

The firm has made tremendous progress under Stausholm — but still has problems to confront.

The sector operates in a tangled web of stakeholders and regulatory regimes. Balancing environmental stewardship with economic prosperity is an ongoing challenge.

The industry's unavoidable and direct effect on the environment demands continual attention.

Stausholm sees Rio Tinto as a pioneer, contributing to a low-carbon future while keeping eyes on the prize of long-term value for shareholders and communities. His emphasis on trust, carbon cutting, operational excellence and cultural sensitivity has set the organisation on a new path.

As Rio Tinto navigates the upcoming challenges of the global energy transition, Stausholm's steady hand will be critical to its success, and its contribution to a sustainable future. i CFI.co | Capital Finance International

CEO: Jakob Stausholm

Spring 2024 Issue

CFI.co | Capital Finance International

27

> Now is the Hour:

GUIF3 Points to a Bright Future for Investors More information: guif.gov.gn

Rio Tinto’s $6.2bn commitment to Guinea is an FDI game-changer.

A

fter decades of economic underperformance, now is now the time for Guinea to reach its full potential and improve the living standards of millions. CFI.co attended the recent Guinea Investment Forum, GUIF3, in the capital, Conakry.

Cover Story

The country is endowed with resources that go beyond mineral wealth, but that is likely to be the catalyst to spark the infrastructure investment needed to transform the national economy.

Post-Covid economic data shows steady improvement, and Australian mining firm Rio Tinto’s decision to invest $6.2bn in the Simandou mining project — after 27 years of delays — is an impressive vote of confidence.

The announcement will assuage concerns about political stability or regulatory risk, and make Guinea an attractive investment destination.

Given the Rio Tinto announcement, GUIF3 could not have come at a more opportune moment.

The event bought together representatives of the World Bank, executives, diplomats, and other business luminaries — all of whom can help to drive broad growth.

28

"Guinea must capitalise on this momentum. The Rio Tinto project represents a significant opportunity for the attraction of FDI. Investors would do well to take a good, hard look at Guinea in 2024."

The APIP Guinée team which organised the forum should be the primary point of contact for potential investors. APIP CEO Diana Kouyaté’s team has vast international experience, and a dynamic approach that impressed all those who attended.

Guinea must capitalise on this momentum.

The Rio Tinto project represents a significant opportunity for the attraction of FDI. Investors would do well to take a good, hard look at Guinea in 2024.

There is a window of opportunity which can be kept open by pointing to the success of CFI.co | Capital Finance International

established investors. The Rio Tinto case is a national success story: an outstanding deal that can only improve the investment climate. But it’s far from the only country to see potential here.

Immediate promotional efforts are likely to target sectors that are first in line to benefit from mining activities: extraction, production, the provision of services, infrastructure development, and logistics.

Continued efforts to streamline business registration, regulatory processes and the issue of permits will further ease the “business of doing business”. Maintaining transparency and clear communication should address investor concerns and build trust.

Of course, Guinea must continue to address underlying challenges to ensure long-term FDI inflows. There should be a focus on fostering economic diversification that benefits local communities and delivers sustainable growth.

By capitalising on the momentum created by Rio Tinto, and implementing strategic promotion initiatives, Guinea can leverage this opportunity and unlock its full potential. i

Spring 2024 Issue

> Hot Investment Opportunities

(and a Warm Welcome) Await in Guinea CFI.co’s publisher, Anthony Michael, wanders around Conakry, smells the coffee, and makes friends…

M

uch of the Western perception of Guinea, I realised, soon after landing in the country, is outdated, uninformed — or just plain wrong.

It is thought by some to be a dangerous place, but a recent visit to the capital, Conakry, told me just the opposite. It is, undoubtedly, one of the poorest cities I've ever visited — but there are signs that this, too, is changing.

The people of Guinea are extremely friendly, and — refreshingly, in this day and age — happy to see a foreigner. A balding white man wandering around their city was a welcome distraction; tourism has not yet really taken off here. On the subject of safety, I’ve visited wealthier cities where walking alone can be dangerous. Not so in Conakry, going by my experience. Yes, the locals are watching you, but out of amiable interest, and not in a way that makes you feel like a target.

I traversed the city streets at various times of day, lengthy strolls of up to four hours. I was the sole white person around, but the only approaches made to me were of a friendly nature. Most people simply ignored me, and those who did approach usually just wanted to check if I was okay. On one occasion, when it quickly became apparent that my French language skills were lacking, a little search party went off to find a fluent English speaker. They wanted to ensure that I wasn't lost, and knew how to get to wherever it was that I needed to be.

And when they discovered I was just happily wandering around, they invited me to sit and drink coffee with them. Most visitors from Europe, and much of the expat community, confine themselves to their bubbles: gated complexes, nice hotels, and fancy four-by-fours for transport. And that, unfortunately, is their loss.

If you visit Guinea and roam around the capital, you're likely to be pleasantly surprised.

One memorable mental image I brought back from Conakry is that of students, neatly dressed in light brown uniforms, on their way to and from school.

Education here, although it requires — and merits — substantial funding, is taken very seriously indeed.

With the right governance, Guinea is capable of turning itself around and realising its potential.

Investment will improve infrastructure and enhance the wellbeing of its people.

The next generation, I hope, will see a substantial improvement in the standard of living. This is a country of huge natural wealth: not just the mineral resources, but its people, too.

I see Guinea as a very interesting investment destination. Rio Tinto obviously agrees; its decision to put $6.2bn into a mineral extraction project is a sturdy vote of confidence. Rio Tinto's board considers it safe to invest that impressive sum on behalf of its shareholders, and seems confident of a good return. The mining giant putting its money where its mouth is indicates that opportunity abounds for others. There is a booming energy-production sector, and some of the best hydroelectric resources in the region. Given its generous deposits of iron, there is potential for extraction and steel production — in a low-carbon process which won’t require excessive coal power, thanks to the high quality of the ore.

With the lure of substantial mineral, energy, and agricultural resources, there is an opportunity for CFI.co | Capital Finance International

early-stage investors who take the time to properly evaluate Guinea. Rio Tinto’s confidence, and finance, will improve local infrastructure — but a lot of additional work is needed. The potential of the agriculture sector is enormous. Getting produce to market without the current levels of waste will improve food security and boost export opportunities.

Guinea has done some important foundational work to show that this is a country creating a truly business-friendly environment.

The services extended to new investors by APIPGuinée are exemplary, and the country has an efficient civil service. The leadership and citizens want a stable environment, with a good rule-of-law to protect investors and bring in the benefits of FDI. This is not without its challenges, but the core framework is in place — and legislative changes are giving added security to investors. Plans to further improve the business environment are under way, and I, for one, am feeling positive.

The extractive industries have the strongest short-term potential, but with infrastructure improvements and that focus on education, it shouldn’t be long before a whole range of opportunities are on offer in this truly welcoming country.

I think now is the time to take a serious at Guinea.

From what I’ve seen, getting in early could make a great deal of sense. i 29

Cover Story

This amiability is an asset for any country, and the human capital in Guinea is precious — and full of potential. The young population is open to ideas, and wants to see the nation progress.

Investors will find a willing workforce, motivated by little more than a fair wage and the desire to see their country develop.

GUIF3: Anthony Michael (centre) presenting on stage

> Anya Schiffrin, Dylan W Groves, & Joseph E Stiglitz:

Quality Journalism Is More Important than Ever © Project Syndicate 2024

A

lthough news consumption soared during the COVID-19 pandemic, subscriptions have since fallen, and news outlets around the world have been laying off reporters or even shutting down altogether. That is bad news for all of us.

Our new UNESCO brief highlights recent research that demonstrates just how important high-quality information is to a well-functioning 30

economy, society, and democracy. New studies in economics and political science use rigorous methods to confirm what journalists already knew: that their work has a positive influence on democratic norms, civic engagement, and governmental and corporate accountability.

By building social trust and promoting human rights, serious, credible reporting also supports economic performance and sustainable development.

CFI.co | Capital Finance International

The 2021 UNESCO Windhoek+30 Declaration – which reaffirmed the importance of information as a public good (one from which everyone benefits, and none are excluded) – was based on numerous studies from Africa, India, Latin America, and the United States. This literature shows that high-quality news and journalism promotes accountability and responsiveness even amid rising tides of misinformation and disinformation. Fact-checking can indeed

Spring 2024 Issue

counter the lies and distortions now flooding societies around the world.

Moreover, high-quality journalism remains more effective than social media in disseminating accurate, trustworthy news. While technology can enhance the spread of good information, it is currently doing the opposite. Large digital platforms regularly downrank news, claiming that users are more interested in other categories of content. But Pew Research Center data suggest that news consumption across platforms has remained stable (at least in the US) since 2020. And with more people voting in elections this year than ever before, there has never been a greater need for quality reporting.

Everyone – even those who do not invest in journalism themselves – benefits from the investigation, curation, and dissemination of trustworthy and useful information. But this public good is unlikely to be adequately provided in a free market, even with the help of publicspirited philanthropists, aid organizations, media companies, and governments. In many markets, their support is not enough.

Governments, especially, have a responsibility to ensure the provision of public goods. Enabling high-quality journalism requires legal regimes that protect free expression and the “right to tell.” But that is not enough. For journalists to do their jobs, there also must be laws and enforcement mechanisms in place to ensure the right to access information: the “right to know.”

While many countries have passed such laws, they are rarely enforced. When public authorities even bother to respond to information requests, they often do so only after long delays, and with extensive redactions.

"By building social trust and promoting human rights, serious, credible reporting also supports economic performance and sustainable development."

Legacy media outlets are a key part of the media ecosystem and require continued support; but so do smaller outlets and those targeting underserved areas. Some promising ideas for supporting journalism include providing special funds or tax breaks (such as payroll tax credits or targeted value-added-tax (VAT) reductions) and issuing news-subscription vouchers. During the pandemic, governments around the world launched variations of these policies, thus producing a wide range of models that can now be emulated.

Another crucial step is to ensure that journalists are appropriately compensated for their work.

Big Tech (the proprietors of search engines, social media, and most artificial-intelligence platforms) relies on news media to engage users and improve its products. Since tech firms do not produce news themselves, they have no way to fulfill users’ demand for highCFI.co | Capital Finance International

quality news and search results without the content provided by journalists. However, they have long used content produced by journalists without providing much (if any) compensation, thus depriving media outlets of a major revenue source: advertising. This cycle is destroying the information ecosystem on which they, and our society, depend.

Many countries have helped sustain highquality journalism through investments in independent public broadcasting. Healthy public broadcasting institutions build social trust and generate an important spillover benefit: competition that forces private media companies to hold themselves to a higher standard. The institutional structures that facilitate the development of public broadcasting are well-known; what is required is the political will to establish the necessary frameworks.

A general principle in economics is that without public support, there will be an undersupply of public goods. Unfortunately, quality journalism is fast becoming Exhibit A for this principle, despite rigorous scholarship demonstrating its importance. Journalism’s business model is threatened by the rise of AI and the power of tech monopolies that distribute news without paying a fair price for it, and this is happening just as misinformation, disinformation, and political polarization are magnifying the dangers of journalism’s decline.

Around the world, there is a growing sense that democracy is in decline. An important step toward reversing this is to enhance support for quality journalism, starting immediately. The costs of inaction may be enormous. i ABOUT THE AUTHORS Anya Schiffrin is Director of the Technology, Media, and Communications Specialization at Columbia University’s School of International and Public Affairs.

Dylan W Groves is Assistant Professor of Political Science at Lafayette College.

Joseph E Stiglitz, a Nobel laureate in economics and University Professor at Columbia University, is a former chief economist of the World Bank (1997-2000), chair of the US President’s Council of Economic Advisers, and co-chair of the High-Level Commission on Carbon Prices. He is Co-Chair of the Independent Commission for the Reform of International Corporate Taxation and was lead author of the 1995 IPCC Climate Assessment. He is the author, most recently, of The Road to Freedom: Economics and the Good Society (Norton & Company, 2024).

31

> Spring 2024 Special – Breaking Barriers:

Critical Contributions of Female Economists in the 20th Century Economics, like many other fields, has historically been influenced by male viewpoints. But closer look at the 20th Century reveals the seminal work of women whose influence is evident – and ongoing.

T

hese women faced structural impediments, yet their genius and perseverance enabled them to transform economic philosophy, influencing academic debate and policymaking while affecting the lives of millions.

Here we feature six female economists who have had an indelible impact on the economic landscape.

Joan Robinson emerged as a prominent voice within the Post-Keynesian movement. Her insights into how markets function, particularly her understanding of imperfect competition, were revolutionary. Robinson's work on growth theory broadened our understanding of how economies grow and develop.

Elinor Ostrom was awarded the Nobel Prize in Economics for challenging the longheld notion that communal resources are necessarily subject to the "Tragedy of the Commons". Her painstaking efforts proved how communities around the world may effectively and sustainably manage common resources.

Ostrom's work transformed the way we think about environmental governance and resource management, paving the way for alternatives to overexploitation.

Janet Yellen smashed glass ceilings by becoming chair of the Fed. She brought

32

to the post a thorough understanding of labour markets and a nuanced approach to unemployment. Yellen's leadership during periods of economic uncertainty was important in guiding the world's largest economy back to stability and growth.

These outstanding women represent several schools of economic thinking, but they were all driven by a desire to challenge conventional wisdom, a commitment to thorough research, and a resolve to make economics relevant to today's concerns.

Esther Duflo, known for her revolutionary approach to poverty reduction, received the Nobel Prize for pioneering how randomised controlled trials, drawn from medical research, might systematically test the effectiveness of development programmes.

Their work has more than just historical interest.

Many of the topics these women addressed are still at the centre of economic debate, including the origins and effects of inequality, effective poverty-reduction initiatives, environmental resource stewardship, fair labour standards, and the pursuit of long-term economic growth.

They tackled topics that had ramifications not only for theory, but also for the wellbeing of millions of people.

Her impact, particularly in some of the world's poorest areas, has been revolutionary.

Labour economist Claudia Goldin shed light on the dynamics that drive the gender wage-gap via historical research of changing roles in the workplace. Her work illuminated systemic difficulties that continue to affect women's economic life, and laid the groundwork for advances towards greater equality.

Anne Kruger, a proponent of free trade, held senior roles at the World Bank and was the International Monetary Fund's first female deputy managing director. Her confidence in the ability of free markets to generate economic progress influenced her policy proposals and sparked global discussions about the path to wealth.

CFI.co | Capital Finance International

This series of features will reveal their particular journeys, including the challenges, successes, and insights that paved their way. Most notably, it will examine their contributions to economics while being marginalised in many ways.

The legacy of these outstanding women is a monument to their intellectual prowess, and poses a challenge to the discipline's future. As the 21st Century economic landscape emerges, their pioneering work serves as a reminder that a plurality of perspectives is required for economics to remain relevant, powerful, and capable of building a more equitable and prosperous global community. i

Spring 2024 Issue

CFI.co | Capital Finance International

33

> ESTHER DUFLO Reshaping the Fight Against Global Poverty Parisien flair and analytical rigour combined…

Esther Duflo’s name is well-known in the field of development economics. Her groundbreaking research and innovative approach to combating global poverty are the reason for her fame.

Born in Paris, France, in 1972, Duflo's intellectual journey was shaped by her upbringing and life experiences. She was catapulted to the forefront of her field, breaking down barriers and gaining global recognition.

Duflo's mother was a paediatrician who worked in humanitarian causes, and her father a maths professor. They instilled in her a strong sense of social responsibility and an appreciation for analytical rigour.

Duflo initially considered a career in history and public affairs, but after a 10-month stint teaching French in Russia, she saw at first-hand the effects of economic upheaval on people's lives. This sparked an interest in economics, and she devoted her working life to understanding the causes of world poverty.

Duflo returned to France and followed her academic goals, earning a Master's degree from the Paris School of Economics before heading to the US for PhD studies at the famed Massachusetts Institute of Technology. There, she crossed paths with economists Abhijit Banerjee and Michael Kremer, who would become long-term working partners (and, in the case of Banerjee, her husband).

Duflo's work stands out for her pioneering use of randomised controlled trials (RCTs) in development economics. Inspired by the rigour of medical research, she advocated using this methodology to evaluate the real-world impact of social and economic reforms.

The underlying premise is straightforward, but effective. By organising research studies with randomly assigned treatment- and control groups, researchers could isolate the unique effects of a certain policy or programme, cutting through the complications that plague observational data.

This novel approach represented a substantial change from standard macro-level analysis in development economics, shifting the emphasis to micro-level actions that could alleviate specific characteristics of poverty. Duflo, Banerjee and Kremer have conducted hundreds of RCTs worldwide as part of their work with the Abdul Latif Jameel Poverty Action Lab (J-PAL), a research institute co-founded by Duflo at MIT in 2003.

34

Their research provided essential insights into a range of development issues, including education, healthcare, access to finance, and governance.

outcomes and the distribution of mosquito nets to combat malaria. They have also influenced the design of microfinance initiatives that promote an escape from poverty.

Duflo's work is distinguished by her emphasis on the intimate relationship between research and policy. Her commitment to evidence-based solutions has resulted in beneficial co-operation with governments and NGOs all around the world.

Duflo is a dedicated educator and mentor. She has taught at MIT and the Collège de France, eager to pass on her knowledge and passion.

Duflo's contributions have received widespread recognition. In 2019, she received the Nobel Memorial Prize in Economic Sciences (with Banerjee and Kremer). She was the youngest person, and only the second woman, to earn this economics honour. Her work has other accolades, including the Princess of Asturias Award for Social Sciences and the John Bates Clark Medal.

Duflo's impact can be seen in the way her work has transformed lives. RCTs inspired have guided educational programmes to improve learning CFI.co | Capital Finance International

Her influence reaches beyond academia, and she has been praised for her ability to explain complicated economic concepts to a broad audience. Her best-selling book, Poor Economics: A Radical Rethinking of the Way to Fight Global Poverty, co-written with Abhijit Banerjee, provides an accessible account of their work, dispelling myths and emphasising the importance of evidence-based approaches in addressing development challenges.

Esther Duflo's legacy is one of unwavering dedication to academic rigour, social effect, and a spirit of innovation in the never-ending fight against poverty.

Spring 2024 Issue

> CLAUDIA GOLDIN Goldin Girl: Putting Women’s Rights on a Level Footing Claudia Goldin is a champion of economic equality for both genders…

Claudia Goldin's name evokes an unshakable commitment to increasing our understanding of gender equality in the workplace.

This distinguished American economic historian, born in 1946 in the Bronx, New York, dedicated her career to shedding light on the varied historical and current restrictions on women's economic engagement.

Goldin's intellectual journey led her to Cornell University, where she discovered an interest in economics. Following her Bachelor’s degree, she went to the University of Chicago, where she received a Master's and a Doctorate in economics. She developed a strong interest in labour economics – and the changing role of women in the workplace.

After completing her PhD, Goldin pursued a career that included teaching and research.

She earned professorial positions at Princeton University and the University of Pennsylvania, and joined Harvard University in 1990 as the first woman to be granted tenure in the economics department.

Goldin's research dug into the complexity of women's historical position in the job market.

Her research methodically documents their increased workforce involvement, as well as the long-standing obstacles they face.

In her book Understanding the Gender Gap: An Economic History of American Women, Goldin investigates how advances in technology, education, social standards, and public regulations have altered female job opportunities.

She explains how the intricate intersections of job and family life influence the female labour force.

Goldin holds that the modern gender gap must be viewed through a historical lens. By examining women's economic advancement over time, she exposes the interaction of social and economic forces and patterns that continue to impact the current landscape.

Her study, which focuses on the US, demonstrates the considerable economic achievements that have been made, particularly in the latter half of the 20th Century, while acknowledging the difficulties and limits that persist. Her work calls into question the idea of a straight path to equality, showing persistent barriers that women must confront.

One of the major contributions Goldin has made to economic debate is the concept of flexibility.

She observes that many occupations are designed to disfavour women who have caring obligations. Her work advocates for a rethinking workplace practices, with more flexibility and fewer regulations.

Goldin is a prolific writer, having written numerous books, essays, and articles. Her scholarly contributions have earned her a number of awards and honours, including the IZA Prize in Labour Economics, the BBVA Foundation Frontiers of Knowledge Award in Economics, and the Society of Labour Economists' Mincer Award for lifetime contributions. Her election as president of CFI.co | Capital Finance International

the American Economic Association in 2013 cemented her position as one of the world’s leading economists.

Goldin received the Nobel Memorial Prize in Economic Sciences in October 2023, the third woman to receive it – but the first to receive this it “alone”.

Claudia Goldin's legacy will go beyond her specific contributions to the subject of economics. She has inspired generations of aspiring economists, especially women, by demonstrating the power of intellectual rigour – and the importance of applying economic analysis to social challenges.

35

> ANNE KRUEGER Tue Pioneer of International Economics This titan of economics rose to prominence in the second half of the 20th Century – and remains influential to this day.

Anne Osborn Krueger was born in Endicott, New York, in February 1934; she would go on to have an indelible effect on worldwide economic policy.

Her research contributions, policy implementations, and leadership responsibilities at institutions such as the World Bank and the International Monetary Fund (IMF) cemented her status as one of the foremost economic thinkers of her generation.

Krueger's intellectual foundations were forged at Oberlin College, where she received an undergraduate degree before beginning her doctoral studies in economics at the University of Wisconsin-Madison. She developed a strong interest in the complex interplay between policy and economic development, a passion that would define the course of a remarkable career.

Her early professional life was defined by her dedication to academia, beginning as a teaching assistant and progressing to the position of economics professor at the University of Minnesota. This demonstrated Krueger's ability to delve into the complexity of economic theories and clearly explain them.

Krueger's career did not begin and end in academics. She made a key contribution to economic debate in 1974 with the release of her foundational paper, The Political Economy of the Rent-Seeking Society.

Rent-seeking refers to the behaviour of individuals or groups using resources to influence political and economic landscapes to enhance profits rather than provide actual economic value. This breakthrough insight reverberated throughout the economics field, challenging traditional wisdom and emphasising the distorting consequences of such behaviours on market efficiency.

Krueger's influence attracted the attention of the World Bank, which appointed her vicepresident of economics and research in 1982.

The promotion represented a watershed moment in her career. Krueger's role at the World Bank evolved away from pure theoretical analysis and towards policy implementation. She played an important role in pushing market-orientated changes in developing countries, arguing for deregulation, lower trade barriers, and a more open approach to foreign investment.

While her conviction in the transformative power of free markets was steadfast, she was aware of the difficulty of implementing 36

economic reforms in a variety of political and social contexts. A pragmatist at heart, she saw the importance of a personalised approach and adapting to the unique realities of particular nations.

Krueger continued to teach after leaving the World Bank, joining the faculty of Duke University and Stanford University. She became professor of international economics at the prestigious Johns Hopkins School of Advanced International Studies.

Krueger's illustrious career took another turn in 2001, when she was appointed first deputy managing director of the International Monetary Fund. This role put her at the core of global economic policy, addressing financial stability and macroeconomic challenges impacting member countries. Throughout her tenure at the IMF, her unshakable adherence to sound economic principles and her thorough CFI.co | Capital Finance International

understanding of international development dynamics proved essential.

One of the defining elements of Anne Krueger's career was her dogged support for free markets, which drew both praise and criticism. She was lauded for backing policies that her supporters hoped would boost economic growth and reduce poverty. Critics contended that a sole focus on free markets could overlook socio-economic inequities and stymie the establishment of critical social safety nets. These ongoing disputes highlight the complexity of international development.

Aside from her specific policy suggestions, Krueger's unwavering advocacy for economic analysis and solid policymaking raised her profile – and living standards around the world. She disputed the notion that economic development was inevitable, arguing that nations could define their own economic pathways via purposeful, well-designed policies.

Spring 2024 Issue

> ELINOR OSTROM Conundrums and Collaborations on a Global Scale: Ostrum’s Take on a Complex Economic Landscape Keeping things simple in a wildly complicated world.

The field of economics is frequently associated with lofty theories and sweeping models far removed from the messy realities of daily life.

Ensconced in this complicated intellectual landscape was one Elinor Ostrom, who provided a refreshing and distinct perspective. Ostrom believed that economics was more than a collection of abstract formulae; it was inextricably linked to the way ordinary people managed their resources and organised their societies.

Ostrom was born in Los Angeles in 1933 and grew up in a modest environment. Her mother, a musician, worked hard to provide opportunities for her daughter, instilling in her a sense of curiosity and a practical attitude. This pragmatism would become a defining feature of Ostrom's intellectual journey.

Ostrom obtained her PhD at UCLA, where she initially studied political science, but she became intrigued by the practical problems of resource management. Southern California's water basins, a microcosm of competing interests and potential abuse, were where she began to develop her breakthrough theories.

Conventional wisdom of the time maintained a negative view of common resources, which was popularised by Garrett Hardin's Tragedy of the Commons. Hardin proposed that when resources are shared, people will act in selfinterest, inevitably leading to depletion. The proposed remedies were mainly geared towards either privatisation or strict top-down government regulation.

Ostrom refused to accept such restrictions. She spent decades conducting research around the world, examining groups that had successfully managed shared resources such as forests, fisheries, and irrigation systems. What she saw was a patchwork of surprisingly effective governance systems, frequently created locally by the users themselves. These communities had devised complex rules, norms, and systems for monitoring and resolving disagreement, all without the heavy hand of the state, or the commercial motivation of privatisation.

This investigation resulted in Ostrom's magnum opus, Governing the Commons (1990). It was a groundbreaking work that challenged the accepted wisdom on resource management.

Ostrom demonstrated that, contrary to the "tragedy" myth, communities may self-govern, inventing sustainable strategies to navigate finite resources.

Ostrom's work went beyond the simple documentation of success stories; she defined a set of design principles that appeared to gird these self-governing structures. These principles emphasised defined limits, locally customised regulations, participatory decisionmaking, methods of monitoring resource use, and graded consequences for rulebreakers. The concepts provided a powerful counter-narrative for those who believed that centralised control or privatisation were the only viable options.

Ostrom's theories had a great impact. Her work resonated with politicians and development practitioners looking for more nuanced answers to environmental concerns. It inspired them to look beyond simplistic models and recognise the ability of communities to create and implement solutions. Ostrom's discoveries inspired fresh research into community-based resource management around the world.

The ultimate recognition of her intellectual revolution occurred in 2009, when she became the first woman to receive the Nobel Prize for CFI.co | Capital Finance International

Economics. The award validated a form of economics anchored in the real world, tuned in to the dynamics of human behaviour, and aware of the institutional framework.

Beyond academia, Ostrom was an unwavering supporter for grassroots solutions to complicated problems. She developed Indiana University's Workshop in Political Theory and Policy Analysis with her husband, Vincent Ostrom. The workshop became a centre for interdisciplinary study, enabling collaboration among political scientists, economists, and experts from various fields.

Throughout her life, Ostrom remained focused on the practical ramifications of her studies.

She understood that self-governance was not a cure-all; power imbalances, social inequity, and external influences could undermine even the best-designed institutions.

Elinor Ostrum was a firm believer in communities' ability to learn, adapt, and collaborate in the face of common issues.

37

> JOAN ROBINSON Sharp Mind, Sharp Tongue, and a Refusal to be Pigeonholed: Joan Robinson Forged Her Own Path Few figures in economics stand out as boldly as Joan Robinson, a brilliant, if sometimes iconoclastic, thinker.

Joan Robinson left an indelible impact on 20th Century economics by challenging long-held beliefs and bravely pushing into unknown realms of theory.

Robinson was born into a wealthy family in Surrey in 1903, and her intelligence was evident from an early age. She attended the elite St. Paul's Girls' School in London before studying economics at Girton College, Cambridge.

Robinson's mind and economic views would be shaped in those hallowed halls.

The 1920s at Cambridge were a time of great intellectual ferment. Alfred Marshall's neoclassical paradigm, which emphasised perfectly competitive markets and the invisible hand, predominated. Robinson, a voracious learner, immersed herself in Marshallian economics, but her inquiring spirit did not allow for complacency.

There was a disconnect between the elegant models she studied and the real-world complications she witnessed — power disparities, untidy defects that seemed far removed from the theoretical ideal of competition.

This unease fuelled her 1933 book, The Economics of Imperfect Competition. Robinson disrupted Marshallian orthodoxy with some force. She contended that real-world markets are rarely, if ever, totally competitive. Monopolies and oligopolies were commonplace, not exceptional. Robinson's observations have farreaching ramifications: if corporations have power, they can affect pricing and output, calling into question the underlying assumptions that underpin many economic policies.

The book catapulted her into the spotlight, while also sparking controversy. Some praised her work as innovative, while traditionalists stuck to their outdated models. Robinson soldiered on, refusing to be pigeonholed.

unafraid to improve and even confront Keynes’ ideas when she saw fit. Her work on growth theory, particularly her investigation of capital accumulation, expanded and deviated from several fundamental Keynesian assumptions.

Robinson exemplified intellectual independence; her devotion was to the search of economic truth, rather than any particular ideology.

The Great Depression of the 1930s ushered in new economic debates. John Maynard Keynes' innovative General Theory of Employment, Interest, and Money challenged traditional views of self-regulating markets, and Robinson became an early convert. She was a devoted advocate for Keynes' ideas, applying her intellect to his notion that government action might cure the scourge of unemployment.

As the decades passed, Robinson's focus switched to worldwide development, specifically the problems of impoverished nations. She defied easy categorisation, criticising capitalism exploitation while acknowledging the limitations of planned economies. Throughout her career, Robinson was never afraid to think in unconventional terms.

Robinson's enthusiasm was not a matter of naive faith. She was a critical thinker,

While she was largely known a theoretical economist, she did not shy away from policy

38

CFI.co | Capital Finance International

debate. She was an outspoken opponent of austerity measures and a supporter of initiatives aimed at reducing inequality. Robinson's tongue and pen could be both enlightening and devastating, and her scathing judgements of other economists became legendary.

This fearlessness, which bordered on irascibility, was probably the result of the problems she faced as a woman in a male-dominated world. Despite her brilliance, her progress through the ranks at Cambridge was gradual. Despite being promoted to full professorship, she never achieved the heights that her academic achievements warranted.

Whether this was due to sexism or the established conservativism of academic institutions is debatable, but it underscores the hurdles faced by women of the time.

Spring 2024 Issue

> JANET YELLEN Standing up to be Counted as a Change-maker of Modern Economic Policy and Limitations Janet Yellen has spent decades confronting recessions, regulating inflation, and breaking gender boundaries along the way…

As the first woman to oversee the Federal Reserve and the Treasury Department, Janet Yellen’s tale is one of revolutionary accomplishments and fortitude in the face of financial crises.

Janet Yellen was born in 1946 in Brooklyn, New York, to parents who emphasised education and public service. Her early interest in economics was prompted by the 1960s social upheavals, which motivated her to learn about mechanisms to promote fairer growth and wealth.

Yellen pursued her career with enthusiasm and rigorous academic work, receiving a summa cum laude degree from Brown University and a PhD from Yale – where she was the only female in her doctorate class. This period was pivotal, not only for the intellectual discipline it imposed, but also for Yellen's resilience and resolve to excel in male-dominated situations.

Her professional experience began when she joined the faculty at Harvard University. It was there that she developed her economic ideas, and established her reputation as an economist capable of combining academic knowledge with real policy ramifications.

Her research covered a range of economic topics, from labour markets and unemployment to monetary policy, gaining her recognition from colleagues and policymakers alike.

Yellen's move from academia to policymaking was easy enough, given her thorough understanding of economic principles and their practical applications. Her rise to power began when she was appointed to the Federal Reserve Board of Governors in the 1990s. There, Yellen helped to shape monetary policy during a period of turbulent economic transition, exhibiting an ability to balance growth with inflation.

Her reputation for pragmatic policy solutions led to her nomination as Chair of the Federal Reserve in 2014, making her the first woman to take on the role. Her tenure was distinguished by a cautious approach to post-recession recovery, with an emphasis on improving the economy while ensuring that the benefits of growth were evenly distributed. Yellen's actions aided the recovery of the US economy, indicating her conviction in the Fed's role of safeguarding financial stability and tackling income inequality.

But Yellen's influence stretches beyond the Fed. In 2021, she became the first woman to serve as the US Treasury Secretary. She negotiated the

economic impact of the pandemic and resolved international financial disputes. Her approach has constantly been collaborative and pragmatic, with an emphasis on policies that promote longterm growth and economic sustainability.

Yellen has long advocated the use of economic policy to promote social fairness. She has underlined the necessity of reducing economic disparity and promoting policies for fair growth.

Her work has frequently highlighted the interconnectivity of global economies, and she is a supporter of international co-operation.

suggestions has established her as a respected voice in global economics.

As the world faces extraordinary economic challenges, from pandemic recovery to climate change, Yellen's leadership and insights remain vital. Her career exemplifies the ability of economic policy to effect positive change, displaying a strong dedication to public service and an unwavering pursuit of policies that promote prosperity for all.

Yellen has broken barriers and set precedents.

Her career exemplifies the changing status of women in economics and finance, fields that have traditionally been male-dominated.

Her successes have opened the way for future generations of female economists and policymakers, serving as an inspiration for tenacity, intelligence, and compassion in public service.

Janet Yellen's influence extends beyond the policies she has adopted and the posts she has held. She has been a pathfinder, proving that with determination, knowledge, and a commitment to the common good, it is possible to overcome obstacles and make long-term contributions to society. Her narrative is about more than just economic policy; it is about the enduring force of dedication, intelligence, and a genuine faith in the potential of a better society through informed, compassionate administration.

Her time in public office has not been without setbacks. Yellen has handled financial crises, policy debates, and the complexity of global economic diplomacy with a steady hand. Her ability to deliver concise, evidence-based policy

Yellen's impact will continue to shape economic policy; her work emphasises the necessity of inclusive growth, the value of evidence-based policy, and the need for firm leadership in times of uncertainty.

CFI.co | Capital Finance International

39

> Europe

Innovation Unveiled: Unsung Powerhouses of Europe

It’s not all about London, Paris and Madrid: look further afield for successful start-up territory.

E

urope, a continent rich in history and culture, may not first come to mind when discussing global hubs of cuttingedge innovation.

However, beyond the well-travelled cities and tropes of London, Berlin, and Paris, a thriving web of entrepreneurial ecosystems is blossoming.

These hidden gems provide a rare combination of opportunity, skill, and government support, fostering the next generation of ground-breaking firms.

ESTONIA: DIGITAL GIANT With a population of about 1.3 million people, Estonia punches above its weight in the tech sector. It has an administration that embraces digitalisation. It was among the first to offer “e-residency”, allowing entrepreneurs to start and run enterprises purely online. This attracted talent from the world over. The outcome is a thriving start-up scene, home to global successes such as Skype, Transferwise, and Bolt.

Estonia's prosperity is largely due to an encouraging business environment. There is little bureaucracy, and starting a business takes only a few minutes. A dedication to digital infrastructure, and early adoption of technology in education, paved the way for an expanding tech workforce.

This tiny, but technologically advanced, nation provides a look into a possible future of business, where borders are blurred, and creativity thrives in nimbleness.

PORTUGAL RULES THE WAVES Portugal, historically known for its era of sea exploration, is currently riding a new wave.

Lisbon, in particular, has seen an increase in entrepreneurial activity. The allure stems from a mix of characteristics, including a lower cost of living than most major European cities, a hospitable culture, and a large talent pool. The government's Web Summit, now one of Europe's largest digital gatherings, established Lisbon as a global innovation hub.

Government initiatives, such as Start-up Portugal, provide incentives and resources to promote entrepreneurship. Established digital businesses and international companies attract people and provide a supporting ecosystem for smaller enterprises. Portugal's success demonstrates that a combination of affordability, a dynamic lifestyle, and intelligent government assistance fosters an environment where companies can thrive.

"Polish start-ups frequently reflect strengths in software development and gaming, with success stories such as CD Projekt Red (creators of the

Witcher games). The development of e-commerce and fintech is clearly visible. Poland's economic clout, competent workforce, and supportive climate equip it for future growth." offering for businesses. The Czech government has recognised this potential and is aggressively promoting innovation hubs and incubators.

The Czech Republic's particular strength is its ability to combine technical knowhow with an entrepreneurial culture. Notable success stories include Avast (cybersecurity), Kiwi. com (travel), and Productboard (product management). The growing tendency in Czech entrepreneurship follows a focus on developing sturdy, technologically complex products rather than pursuing transient trends.

SLOVENIA’S BIG AMBITIONS Slovenia, a small country straddling the Alps, is quietly making its impact on the European startup landscape.

Ljubljana, the capital, has a burgeoning entrepreneurial culture, particularly in sustainable technology, biotechnology, and smart-city solutions. Slovenia's natural beauty and emphasis on sustainability are consistent with a growing global trend among corporations to address environmental and social issues.

The Slovenian government's commitment to entrepreneurship is shown in numerous support programmes, accelerators, and funding possibilities. The country's small size nurtures a tight-knit society, making collaboration and knowledge-sharing simple. Slovenian entrepreneurs benefit from a solid support structure and a value-driven focus on innovation.

ENGINEERING MEETS INNOVATION With a strong industrial and engineering background, the Czech Republic is becoming a powerhouse in European enterprise.

POLAND, THE POWERHOUSE Poland, aided by a strong economy and a vast talent pool, is emerging as a start-up hotspot.

Warsaw has long been a regional hub, while Krakow, Wroclaw, and Gdansk also provide promising opportunities.

Prague, in particular, is an emerging star. With technical institutes producing competent workers and featuring a lower cost of living than its Western rivals, the city presents an appealing

Poland's entrepreneurial scene benefits from a young, motivated workforce, eager to succeed.

The government's emphasis on attracting international investment and developing a

42

CFI.co | Capital Finance International

business-friendly environment strengthens its appeal.

Polish start-ups frequently reflect strengths in software development and gaming, with success stories such as CD Projekt Red (creators of the Witcher games). The development of e-commerce and fintech is clearly visible. Poland's economic clout, competent workforce, and supportive climate equip it for future growth.

RECIPE FOR SUCCESS While each country has its own distinct assets and traits, several similar elements fuel these under-the-radar innovation hubs.

Successful start-up ecosystems rely on strong technical universities and a highly qualified workforce.

Proactive policies, funding programmes, and efforts to streamline bureaucracy help entrepreneurs to thrive.

Close-knit communities encourage information exchange, mentoring, and the formation of supportive networks. Lifestyle and affordability play a part, too. Quality of life, paired with a lower cost of living than large metropolitan areas, entices domestic and international talent.

FUTURE OF INNOVATION Europe's entrepreneurial scene is anything but static. As these hidden jewels achieve traction, they attract additional investment and spark new waves of innovation. A greater geographic distribution of European success stories can be expected, with smaller cities and regions emerging as mini-powerhouses.

The rise of these unsung heroes suggests a possible shift in global perspective. Europe is no longer merely a haven for established enterprises and traditional industries; it is a vibrant place for ideas to thrive.

For entrepreneurs looking for opportunity, support, and the chance to be a part of something new, Europe has a plethora of options. i

access more potential

Spring 2024 Issue

Through Tailor-Made Solutions in Trade Finance The Access Bank UK Limited takes an innovative approach to trade finance, delivering financial solutions that are designed for the African market. / Export Letters of Credit / Import Letters of Credit / Standby Letters of Credit / Payment Guarantee Contact us: tradefinancesbu@theaccessbankukltd.co.uk www.theaccessbankukltd.co.uk

more than banking

The Access Bank UK Limited is registered in England & Wales, Company Number 06365062.

CFI.co | Capital Finance Registered InternationalOffice: 4 Royal Court, Gadbrook Way, Gadbrook Park, Northwich, 43 Cheshire, CW9 7UT. Authorised by the Prudential Regulation Authority and regulated by the Financial Conduct Authority and the Prudential Regulation Authority. FCA & PRA Registration Number 478415.

> Generational Call-to-Arms in the

Fight to Save Our World

An Irish group puts into words the unspoken fears of a global population, and turns buzzwords into direct action.

E

nvironmental services and technology business FLI Global is ready to take on the world — or its problems, anyway.

The firm, headquartered in Waterford, Ireland, specialises in providing solutions wherever air, land, or water is threatened or in need of protection.

Building climate resilience and resistance are frequently heard terms just lately, and even those who have figuratively been living under a rock should have concerns about extreme weather events. Storms, droughts and floods wipe out crops. Temperatures are rising, and frequent deluges have disrupted food production and supply chains.

The damage isn’t limited to agriculture; there has been damage to housing and roads — and the loss of economic opportunities in some regions of the world. Especially in those whose people can least afford it: island nations, and in Africa and Asia. These areas of the world are bearing the brunt of climate change — while high-income Western countries are driving up greenhouse gas emissions.

We, in the developed world, have knowingly abused Nature for more than a century. Now, it’s time to take responsibility for that, and reverse the damage caused by our actions. “Progress” has been unstoppable; our transport systems have moved from horse and cart and bicycle to car, trains and aeroplanes.

Our ease of movement across the planet has contributed to population growth, with more than eight billion of us now... and a predicted nine billion by 2050. Oil and mining have created untold wealth — for some — in the past 150 years. These materials are more than resources to be exploited; they are finite, and were created

by Nature.

The industrial revolution and the spectacular advances that followed have benefitted education, science, the arts, engineering, medical and tech advances, food production, healthcare and longevity. Personal and corporate wealth have burgeoned, too. And all these things have come with a dire cost to the natural world.

The global imbalance in population growth and poverty can be directly connected to locating and 44

"The FLI Group has the skills, expertise, abilities, and technologies to improve water management and wastewater treatment, rainwater harvesting, and process water re-use." mining oil and ore. We humans have taken much more than we have given back.

Our exploitation can no longer be sustained, the damage can’t go on. Each of us is now responsible — and individuals and corporations must be held accountable. The time to face up to our responsibilities and do what we can to get our world back into balance is now.

This is where building climate resilience provides us with an opportunity. The United Nations’ Global Climate Action plan has created a vision statement for all to follow.

By 2050, our world is likely to be at least 1.5 degrees warmer than it should. Countries, cities, companies, and communities continue to strive for economic security in the face of the multiple risks posed by climate change.

The FLI Group businesses, management and staff, can see the writing on the wall. They are focused on playing a part in decarbonisation. The group’s engineers and project managers make a difference where they can, and they want their knowledge and expertise to be fully utilised in finding sustainable solutions.

The FLI Group has the skills, expertise, abilities, and technologies to improve water management and wastewater treatment, rainwater harvesting, and process water re-use. Also within its scope and remit are brownfield, landfill and groundwater remediation, air quality management and the production of low-carbon precast concrete infrastructure.

The group also has the capacity and ability to help the world with rapid housebuilding, data storage, fibreoptic cabling, wind power, and coastal protection.

CFI.co | Capital Finance International

Action must come from individuals and corporations, and needs to focus on the crucial sectors most impacted. The future of the planet depends on it. In the group’s focus are agriculture and food-production sectors, city infrastructure, and services including waste management, energy generation and transport.

Nature’s terrestrial and marine ecosystems take the brunt of the destruction — and are the first line of defence against climate risks and disasters. The quality of air, land and water must be prioritised in balancing human impact on the natural world.

Spring 2024 Issue

This water-treatment plant provides a fine example of FLI Precast’s

Project Management supervision, in just three weeks. The client had

a lower carbon footprint than building an in-situ alternative, as well as

design and manufacture capabilities. The tank was shipped from

been seeking alternatives to in-situ concrete construction, which

considerable financial savings. This semi-precast system is unique to

Ireland to Queensland in Australia, then transported by road to Mirani,

would have involved the associated costs of setting up a project camp

FLI Precast, a subsidiary of FLI Global. The concrete contains 70%

some 1,000km inland. The structure was erected on-site, under FLI

in the remote location. Transporting the tank by sea and road created

GGBS thereby reducing the carbon footprint by the same amount.

The Marrakech Partnership helped to create the UN’s Global Action Plan, which states that urgent and coherent management measures, accompanied by mitigation actions, must be adopted by public, private, and community actors. Only with direct action can there be a transition to an inclusive, resilient, and sustainable world. It’s imperative to protect the most vulnerable sections of the population, many of whom live in under-developed countries and island states.

appropriate actions to mobilise resources — financing, monitoring, measuring and tracking progress. Last, but not least, we must share knowledge, experience and expertise.

the damage caused to our environment and to help create a better world for all, not least those yet to be born. We all need to be accountable for our actions. Let’s embrace the challenge. i

Decarbonisation is a key element in addressing climate change damage, but a macro-view shows we can never achieve a carbon-free planet. What we can achieve is balance, where carbon production is able to be absorbed by the natural world.

For more information on Marrakech Partnership for Global Climate Action, please visit unfccc. int/climate-action/marrakech-partnership-forglobal-climate-action

The steps to success here include increased awareness and advocacy, risk assessments, and

We as humans have the ability, the wherewithal, and the responsibility to reverse

More information on precast concrete solutions: fliprecast.com | fli-group.com

CFI.co | Capital Finance International

45

Scottish Friendly A name you can trust Our commitment to excellence has earned us many awards along the way.

Including ‘Best Mutual Insurer’ for six years running at the CFI.co awards.

For over 160 years now, we’ve been helping families save and invest for their future.

Today we’re one of the UK’s largest mutuals looking after assets worth more than £4.6 billion as at 24/04/24.

2019

2020

T L BESU EASRT B T U EUAL 2022 M SM RTBEST UU IN IN RKER SERUU NMUTUAL N I W WIN NEBREUSKT INSURER M UT A2L023 WINNER INSURUUK ER W MINUBNTEESRTUK INSU UAL RER W 2021

INNE

R UK

Scottish Friendly Asset Managers Limited, Galbraith House, 16 Blythswood Square, Glasgow G2 4HJ. Authorised and regulated by the Financial Conduct Authority. Details can be found on the Financial Services Register – Registration No. 188832. Member of The Investment Association.

23185

Find out more at scottishfriendly.co.uk

Spring 2024 Issue

>

To Get Ahead, Get a Head with a Heart B

ehind every go-ahead company is a go-ahead personality – and in the case of Square Asset Management, that person is Pedro Coelho.

The CEO and founder of this firm heads a 70-person team dedicated to consistent performance for its clients – with a low-risk/ return framework. This aim is pursued through meticulous selection of real estate assets without financial leverage.

Lisbon-based Coelho is committed to fostering innovation and cultural growth, with a penchant for positivity and high regard for his colleagues.

Add to that an unwavering adherence to high standards of values, business ethics, and environmental consciousness and you have the profile of a leader.

With over 35 years of experience in the financial industry, mainly in real-estate asset management and finance, Coelho earned an accounting degree from ISCAL in 1986.

Before Square AM, he held senior positions at ESAF Asset Management and served as Head of Planning at Barclays Bank, Portugal. From 2001 to 2004, he taught the MBA programme at Escola Superior de Actividades Imobiliárias in Portugal.

The CEO sees challenges, whether in the boardroom or on the volleyball court (where he coaches), as part of life. "As in life,” he says, “sometimes you just have to throw the ball and see where it goes."

Under his leadership, the firm has gone from zero to €1bn in AUM in open-ended real estate funds – not once, but twice, in separate institutions.

Square AM focus remains steadfast on client performance, primarily through real estate openended funds, while continuously advancing ESG initiatives, positioning the company as a national and regional leader in real estate fundmanagement.

Square is anchored in long-term lease contracts, with the absence of financial leverage, and robust risk-control.

Reflecting on his journey, he says: "I have always been driven by challenges and client returns, so being the CEO of Square AM is a tremendous motivation and an enduring reward."

Square AM has pledged support for the United Nations Sustainable Development Goals and is a participant of the UN Global Compact Network. i

CEO: Pedro Coelho

CFI.co | Capital Finance International

47

> Living the Iberian Dream, Fair and Square:

A Risk-Control Real Estate Asset Management Firm Square Asset Management has history behind it, and big plans for the future.

S

quare Asset Management has celebrated its 18th year of sustained growth – and it’s clear that company’s steadfast commitment has contributed to that success.

Commitment to proper ESG policies, of course, but personal commitment, too. CEO and founder 48

Pedro Coelho says that most of the team members have been working together for around 35 years.

regulated by the Portuguese Securities Stock Commission (CMVM), considered as an AIFM.

Square Asset Management is Portugal’s largest independent real-estate asset manager, with more than €1.9bn in AUM. Square Asset Management (in Portuguese, Sociedade Gestora de Organismos de Investimento Coletivo) is

With specific expertise in all aspects of real estate – management, development, law, and banking – Square AM’s management team has the knowledge and reassurance that comes with decades of experience.

CFI.co | Capital Finance International

Spring 2024 Issue

Square focuses on client needs and performance, primarily via open-ended funds, prioritising investment in diversified Iberian real estate assets. It has long-term lease contracts across sectors – with ESG front-and-centre – positioning Square as a leading real estate fund manager on the Iberian Peninsula.

Square pioneered a low-risk investment strategy, anchored on long-term lease contracts, absent of financial leverage, and with robust risk-control.

Against the age-old real estate cry of "location, location, location", Square replies with an ethos revolving around "risk, risk, risk". Look at the firm’s 18-year streak without negative performance for confirmation.

Square AM manages several real estate funds and consultancy services, including income funds: the management of risk/return on core and core plus assets, especially in office, retail, logistics, distribution. That includes two open-ended real estate funds, CA Património Crescente (CA PC) with €1.2m in AUM, and the Property Core Real Estate Fund, recently launched for institutional and retail clients (€60m AUM).

DISTRESSED ASSET FUNDS Square AM also undertakes the long-term management of non-core assets, with the aim of increasing their market value and selling them on.

With specialised funds, there is tailored management of thematic assets with the aim of optimising market value and performance.

Square AM oversees other funds covering health and hospital, supermarkets, shopping centres and hotels, diverse sectors within the Iberian market.

CONSULTANCY AND SERVICES Square AM partners with institutional investors to assist the management of their investments, either through an investment fund or another specific solution.

View from Square AM offices

"With specific expertise in all aspects of real estate – management, development, law, and banking – Square AM’s management team has the knowledge and reassurance that comes with decades of experience."

CFI.co | Capital Finance International

CA PATRIMÓNIO CRESCENTE FUND This flagship, open-ended fund – recognised

by MSCI for 13 consecutive years as the bestperforming Iberian/Portuguese balanced portfolio – is a point of pride for the firm. Managed as a balanced fund with solid tenants on long-term leases, it is the largest open-end real estate fund in Iberia. It is also an SFDR – Article 8º.

LOOKING AHEAD As Square AM charts its trajectory, there's no sign of deceleration. Continuously expanding in assets and geographies, the company is poised to penetrate international markets, and ready to reaffirm its commitment to innovation and excellence. i 49

The first of its kind

THE NEW MASERATI MC20 - A TRUE OBJECT OF DESIRE Discover more on maserati.ch

MC20: Fuel consumption (l/100 km): combined 11.5 - CO2 emissions (g/km): combined 261 - Efficiency class: G The stated energy values correspond to the WLTP standards. CO2 target value 118 g/km, average CO2 emissions 169 g/km.

Spring 2024 Issue

> Woody Allen:

Master of Neurotic New York Wit Filmmaker, writer, actor and comedian, Woody Allen has used his own anxieties to build a comedic empire.

W

oody Allen’s films inject selfdeprecating humour into an exploration of the foibles of modern relationships, the fruitless search for meaning, and the ever-present shadow of mortality.

"I don't want to achieve immortality through my work,” he once quipped. “I want to achieve it through not dying." Allen's in-jest-but-serious comments encapsulate the way he uses his social and personal anxieties to fuel his creativity.

If you’ve ever seen one of his films — and if you haven’t, you should — it’s easy to imagine his hunched, bespectacled figure pacing a New York apartment, ranting about failed relationships or the inherent meaninglessness of existence. He aims his blend of intellectualism, self-deprecation, and relentless exploration at the absurdity of life.

STAND-UP YEARS Woody Allen, born Allan Stewart Konigsberg in 1935, has always been his neurotic, hypochondriac self. As a teenager, he found his comedic voice by selling jokes to newspaper columnists, perfecting his delivery on the written page.

The transition to stage and screen was fuelled by a desire to add proper emphasis and timing to his words. But he didn’t start out with that classic persona of neurotic NYC intellectual.

In his early days on-stage, he simply delivered a stream of one-liners and absurdist observations, meme-worthy even in 2024. "The other day I was kidnapped by a gang of mimes," he'd deadpan.

"They did unspeakable things to me."

His style echoes the classic humourist authors SJ Perelman and Robert Benchley, masters of the offbeat, and the absurdist wit of Groucho Marx.

Hints of Vaudeville comedians also found their way into his early material.

While his later work became more introspective, the foundation of his comedic empire has always been self-deprecating humour — and a biting commentary on the bizarreness of everyday life.

As Allen transitioned into filmmaking, those early comedy gigs provided fertile soil for the complex, anxiety-ridden characters that would become his trademark.

"The real Woody Allen is somehow inseparable from the characters he created, nervous hyper-intellectuals bumbling their way through relationships, agonising over their mortality, and searching for meaning in an uncaring world."

COMIC PERSONA The real Woody Allen is somehow inseparable from the characters he created, nervous hyperintellectuals bumbling their way through relationships, agonising over their mortality, and searching for meaning in an uncaring world.

This archetype, with echoes of the traditional Jewish “schlemiel” — “dork” would be an English approximation of the term — provides a perfect vessel for exploring such anxieties and observations.

Allen's genius lies in transforming the pain of being human into something hilarious and universally relatable — almost always to a tasteful jazz soundtrack. He, and his characters, obsess over illness and death. They navigate a minefield of romantic blunders, awkward encounters, and infidelities, somehow gleaning laughter from the sheer messiness of the human condition.

Underlying all this was a genuine existential angst; Allen has grappled all his life with the futile search for purpose. He elevates his themes through wit, and his scripts overflow with memorable one-liners. "I don't believe in an afterlife,” goes one, “although I am bringing a change of underwear."

THEMES AND HANG-UPS New York City isn't just a setting for Allen's films — it's a folio on which to write large the anxieties and aspirations he shares with many of its residents. He satirises their (and his) cultural obsessions and pretentiousness. In Manhattan, recognised as one of his best works, Diane Keaton's character pontificates on modern art, and name-drops philosophers and psychoanalytic theories.

Modern relationships provide rich fodder for his talent. Allen dissects the complexities of love, lust, and infidelity, always with wry humour. His characters stumble through awkward dates, and navigate messy breakups and farcical betrayals with relatable vulnerability. The evolving relationship between Alvy and Annie in Annie Hall is a prime example, as is the complex love triangle of Manhattan, where Isaac's dissatisfaction with his much younger partner leads to an entanglement with his friend's mistress.

The absurdity of life and the human search for meaning are core to his thematic explorations.

His characters grapple weighty questions, using our ultimate inability to find satisfying answers as a foil for his laugh-out-loud lines. Alvy Singer's philosophical rants in Annie Hall embody the trials of the mid-life crisis and contemplation of his beloved Manhattan.

Life's absurdities are unmissable — we all come across them — but few writers are able to reliably turn them into smirks, smiles and guffaws. While his characters often inhabit a specific time and cultural sphere, their struggles are timeless and universal. This, along with his rapier wit, solidified his status as a comedic master of undeniable influence.

Intellectual references are woven seamlessly into the dialogue of his films: Annie Hall, Manhattan, and Hannah and Her Sisters perfectly encapsulate his mastery of using language as a comedic weapon.

He has won recognition from his peers, too.

Quentin Tarantino once named him as "one of the greatest screenwriters of all time", while fellow director Martin Scorsese admitted he loved Allen's work (but admitted it was "foreign to me. It's not another world; it's another planet").

Allen's power over the audience stems from his honesty and self-awareness. He lampoons and communicates his personal foibles through his characters, inviting laughs at his own expense.

Despite the intellectual veneer, his explorations of life, love and death resonate on a distinctly human level.

Woody Allen proves that even in the face of darkness and life's inherent complexities, humour offers a lifeline. It's a testament to his enduring legacy that over decades he has managed to make audiences laugh, think... and perhaps recognise themselves in his endearingly flawed characters. i

CFI.co | Capital Finance International

51

> Film Review: Woody Allen's Coup de Chance

A Parisian Delight … With a Twist

W

oody Allen, renowned master of troubled wit and urban mope, returns to the City of Lights with Coup de Chance.

This French-language venture is a light-hearted investigation of unexpected encounters and their ramifications. The plot revolves around Alain (Niels Schneider), a disillusioned writer, and Fanny (Lou de Laâge), an art specialist. Their paths inevitably intersect, and what begins as the rekindling of an old friendship quickly turns into an affair. Well, you know Woody.

Paris serves as more than a backdrop for the New York director. Cinematographer Vittorio Storaro bathes the city in autumnal light, making cobblestone alleyways and dim-lit cafes collaborators in the burgeoning romance. The 52

"While it may not rank among his classics, it is a pleasant reminder that, even at 87, Allen is a brilliant storyteller – and Paris, as always, is an ideal muse." film is a love letter to the city's legendary charm – even when the story takes an unexpectedly dark turn.

Despite the usual themes – betrayal, desire, and the absurdity of existence – Coup de Chance is less pessimistic than some of Allen's previous works. The film moves forward with a light touch and engaging enthusiasm. Performances are CFI.co | Capital Finance International

uniformly good, with Schneider and De Laâge in fine form.

The film does occasionally veer into clichéd territory. Its examination of the artist's life is a little predictable, and a couple of Eastern European heavyweights come across as lazy stereotypes rather than fleshed-out characters.

Thankfully, these shortcomings have little impact on the overall viewing pleasure.

With a twisting plot that culminates in a sardonic and slightly macabre finale, Coup de Chance is not a reinvention for Allen. It has something that is sometimes absent from his recent work.

While it may not rank among his classics, it is a pleasant reminder that, even at 87, Allen is a brilliant storyteller – and Paris, as always, is an ideal muse. i

Spring 2024 Issue

CFI.co | Capital Finance International

53

> Shock Factor Fades, Music Endures:

Can Rebels Still Rock Our World?

In the stuffy 1970s, it didn’t take much to cause public outrage. That didn’t stop punk pioneers ladling it on thick...

A

stage covered in glitter and feathers, an androgynous performer spitting out lyrics that shred social taboos, men in make-up, women in leathery rags. This is no fever dream: it was the electric reality of the 1970s music scene.

From David Bowie's extravagant glam to The Sex Pistols' seminal and uncompromising punk, these musicians relished the chance to push buttons and boundaries. But do their onceshocking behaviours and sounds still offend sensitive souls, or have we all become more accepting — or jaded — in the face of everchanging cultural landscapes?

SHOCKWAVES ACROSS GENRES Bowie, that chameleon of outrage and invention: a red mullet and a lightning bolt painted across his face, prancing about in a garment more Martian than Earthly. He was the embodiment of gender-bending theatricality, lyrics loaded with ambiguity and social satire, always challenging, always fascinating. How would the modern world receive the stage persona he created in an era where drag queens are mainstream and gender fluidity is accepted? His influence opened a path to a more forgiving environment — and reduced our susceptibility to the shock factor.

Alice Cooper (Vince Furnier to his mates) was another Grand Guignol of the ‘70s stage, bloodred lighting, a boa constrictor draped around his shoulders and a guillotine seemingly about to lop off his head. His intentionally macabre concerts, a fusion of rock and theatrical terror, sent shivers down our collective spines. But now, in a society desensitised to gore by movies and online games, would his onstage antics evoke screams? Or would it just be campy entertainment? Does his dark humour still have the ability to disturb?

Patti Smith, punk poet and prophetess to her fans: she wasn't hesitant to lambaste audiences with painfully honest lyrics about sexuality, social injustice, and personal problems. Dramatically aggressive, frequently barefoot and clad in leather, her stage persona reflected the rawness and ferocity of her words. How would her lyrics and rebellion resound with a world where social media magnifies and glorifies unruly perspectives? Confronting cultural norms has perhaps become less controversial.

54

"Conventions have altered, attitudes have softened, but musicians will always provoke debate."

Back to The Sex Pistols: Anarchy in the UK was the song that summed-up the rage they ignited with four-letter words, safety pins, and witty but determined rudeness to the media.

Their brief reign was a sonic middle finger to the establishment, and their words were a direct anti-authoritarian attack. The Pistols epitomised punk's raw energy, a revolt against staid societal standards.

An outrageous attitude was all the rage then, but it’s old-hat in 2024. Has the rebellious spirit of music been so absorbed and commodified that it fails to disturb?

Then there was Kiss, of course: wild facial makeup (that the band members were never pictured without), Gene Simmons' reptilian tonguewagging, Ace Frehley's spacey demeanour, Peter Criss's feline alter-ego...

Kiss was more than a band; this was a show, a garish cartoon come to life. Their fire-breathing antics and spectacular costumes challenged boundaries. Even now, their extreme look is undeniably dramatic. But, in an era of extravagant music videos and special effects, could it be considered groundbreaking? Has the distinction between performance art and spectacle eroded?

ENDURING SHOCKWAVES David Bowie, the chameleon of glam rock, didn’t just push limits, he demolished them. From wearing a frock on The Man Who Sold the World album cover to the creation of the mysterious Ziggy Stardust character, his songs stuck with the theme of “strange”, questioning identity and sexuality. America, at least, was taken aback — at the time. The shock factor may have faded, but the impact he left on artistic expression is intact, and unmistakable.

CFI.co | Capital Finance International

As vocalist for Alice Cooper, Furnier was a mastermind of shock rock, never afraid —eager, even — to blur the lines between drama and real life. His guillotine theatrics and simulated violence in the School's Out era were gleefully accepted by young insurrectionists. Tame, perhaps even cheesy by modern standards, his humour and societal critique may still be relevant. Shock, after all, comes from something unexpected, and Alice Cooper delivered that in spades.

Punk poet Patti sang, and shouted, truths about sex (Because the Night), conventions (Piss Factory), and resistance. In a maledominated movement, Smith’s combative stage demeanour defied challenge — and expectations. Her themes may appear less surprising today, given increasing openness, but her tough spirit and ear-searing insights

Spring 2024 Issue

are still pertinent. Her legacy is as an inspiration to artists of all ages and genders.

While some punk components have been absorbed into modern pop, anti-establishment messages retain their relevance. The voicing of adolescent frustration is still a driver for rebellious artists.

AI-assisted videos and special effects may have made artsy make-up and sweary lyrics less divisive now, and iconic imagery and infectious songs continue to captivate new audiences. The shock factor delivered by 1970s rebels may have been diluted, but music and messages continue to resonate. Expectations defied, limits pushed, youth inspired: job done. Socio-economic shifts have mitigated the initial assault, but they have not killed significance. Their stories serve as a reminder that music lives on — whatever its form.

OUTRAGE BECOMES ECHO The shockwaves of the ‘70s have receded, leaving only ripples in the cultural pond. Echoes reverberate, although at different frequencies.

Reflecting on the legacy of these magical times, the shock factor unquestionably played a part.

And it’s evolving with contemporary performers.

What once made us wince now evokes a shrug or a smirk.

David Bowie's androgyny, once a cultural earthquake, resonates differently today — a quirk, rather than an assault on decency. Alice Cooper's theatrical gore, red as ever, is almost moderate. But the rowdy spirit of their art broke assumptions, started conversations — end generated fresh careers for newcomers.

Punk's defiance lives on, too, as its raw energy takes on new forms. Combative lyrics may CFI.co | Capital Finance International

appear less surprising, but messages of youth, and female, empowerment resonates still. The underlying artistic expression has lost none of its importance.

There are issues, however, that remain contentious. Anti-establishment messages have perhaps an even greater role to play in an era of political polarisation. Conventions have altered, attitudes have softened, but musicians will always provoke debate.

Because shock factor takes two: performer and listener. The shock itself may pass, but the right and boldness to question, inspire, and spark discourse ensures a lasting impact. The 1970s rebels may not shock us in the same way in 2024, but the echoes of their rebellious nature shape the music being produced now. Fury fades — theirs and ours — but the music endures. i 55

> Beyond the Screen:

Are Violent Video Games and Films Desensitising Youth?

Debate smoulders in the background as a conflagration of simulated violence rages online.

I

n 2019, a 19-year-old man entered two mosques in Christchurch, New Zealand, with a loaded rifle. He opened fire at both locations, killing 51 people and wounding 40 others.

Australian Brenton Tarrant pleaded guilty to the murderous escapade, and to engaging in “a terrorist act”. He was sentenced to life imprisonment without parole — the first time such a sentence had been handed down in New Zealand. The attack was linked to white supremacy and alt-Right extremism. That is shocking enough, but equally disturbing is the suggestion that there is also an ugly link with technology and social media: the killer livestreamed his deadly act online.

Tarrant was, he admitted in court, inspired by violent video games. Tragedies like this have spurred an important, but long dormant, debate: Do "shoot-'em-up" video games and violent films desensitise people to real-world violence? The prevalence of such material is indisputable; the link with actual violence is the nebulous issue under discussion.

According to research by the Entertainment Software Association, 67 percent of American adolescents aged eight to 18 regularly play video games — and many of those games depict digital, but gruesomely realistic, violence. It’s not just video games, of course; ultra-violent movies perform consistently well at the box office, tapping into some degenerate facet of the human psyche.

Whether the desensitising effect of watching violent media exists remains contentious, sparking psychological theories, empirical studies, and conflicting perspectives.

The general consensus of those who believe in the link is that repeated exposure to a stimulus — in this case violent content — gradually reduces its emotional impact. This deficiency can extend to real life, making acts of aggression less shocking, or even acceptable. Emotional numbing refers to a state of diminished receptivity and empathy; research seems to indicate that this impairment could be real. Might the consumption of games with titles like Manhunt, Mortal Kombat, and 56

"Conventions have altered, attitudes have softened, but musicians will always provoke debate."

Gears of War lead to an inability to understand the consequences of real actions?

Some deny it has any influence on human behaviour; others are certain the link is real — and worrying.

A 2010 study published in the Social Cognitive and Affective Neuroscience journal, from Oxford University Press, found that people who viewed violent films had “dampened emotional responses” to subsequent similar stimuli. A 2015 longitudinal study published in the Journal of Youth and Adolescence, a peer-reviewed multidisciplinary academic publication, found a definite correlation between exposure to violent video games and increased aggressive behaviour in young boys.

Pamela Anderson — the media psychologist, not the one from Baywatch — emphasises the possible risks, believing that constant exposure to violent media “can chip away at our emotional sensitivity”, leading to detachment. This, she contends, could potentially lead to the evolution of a more hostile and heartless society.

Research in the field is continuing, but has its limitations. Reaching concrete conclusions is tricky, and requires a thorough understanding of some complex subjects.

COUNTER-ARGUMENT There are many experts and pundits who dispute any straightforward link. One important counter-argument is based on catharsis theory.

This hypothesis — first offered by Aristotle, presumably not referring to video games — contends that witnessing or participating in violence in a fictitious environment might be CFI.co | Capital Finance International

a healthy outlet for pent-up aggressive urges.

And that, say many, ultimately leads to less aggression in real life. What others see as an inducement to violence, these experts view as a release valve, allowing people to safely explore aggressive emotions.

It is crucial to confront the shortcomings and limitations of desensitisation research. Study findings are seldom consistent. Some discovered no substantial link to increased hostility; determining causality remains a challenge. It is impossible to conclusively say that exposure to violent material promotes violent actions. It is equally possible that those drawn to such content are already of an aggressive disposition.

The debate brings up questions about censorship and freedom of expression. These are important factors; restricting access to certain content raises issues of artistic expression and free speech. Striking a balance between protecting young people — and society in general — from potentially harmful content and preserving fundamental liberties is a challenge.

While the possibility of desensitisation deserves serious attention, the intricacies and nuances

Spring 2024 Issue

involved must be addressed. Further study, media-literacy education, and open debate are critical for negotiating whatever link exists.

recognise the narratives, methods, and potential real-world consequences of bingeing on media violence in any form.

indeed reduce emotional responses to violence.

If they are correct, there are serious potential ramifications.

FINDING A BALANCE With those complexities laid out, the question becomes: How can we approach this topic in a responsible way?

Aside from addressing any potentially negative consequences, encouraging healthy alternatives is a positive avenue worthy of pursuit.

Participating in sports, creative hobbies, and social interaction promotes healthy development — and provides alternative routes for emotional expression.

Counter-arguments emphasise the limitations of existing research, and tout the possible benefits of catharsis and free expression.

Age-appropriateness is a key factor. Parents and guardians should be aware of young people’s online habits, and guide and supervise their media use. Is the content they are drawn to appropriate for their age and developmental level? Existing rating systems can provide some guidelines, but parental engagement is necessary. The difficulty of knowing exactly what one’s children are watching is, of course, another story.

Developing media literacy is crucial. We encourage young people to make educated decisions about the content they consume; but violence is hard to escape. Watching the evening news can be disturbing for any age group. What young people need is a strategy for critically analysing and evaluating the messages they encounter. Educational programmes can help them to develop critical thinking skills, and

Achieving a balance requires a broad and varied strategy. Healthy relationships between young people and violent media can be engendered by emphasising the risk of desensitisation, recognising opposing points of view, and encouraging responsible media output and interaction. This could help to protect young audiences from potential damage, while also preserving their ability to access the content they find stimulating.

This is, undeniably, a complex issue, with persuasive arguments on both sides of the debate. Desensitisation proponents put forward psychological theories, backed by data, that show frequent exposure to violent content does CFI.co | Capital Finance International

There’s a need for a nuanced and balanced strategy, but quite what that is remains elusive.

Parental advice, media literacy instruction, and advocating healthy alternatives are all likely to be indispensable components of whatever solution emerges.

Some questions remain. Does context matter as much as content? How, other than instinctively and anecdotally, can we assess the effects of violent media?

Adults need to critically examine their own media use and consumption, and advocate for initiatives that promote responsible social interactions. Encouraging open dialogue, debate, and collaborative efforts is a step along a path that could empower young audiences to connect with the world around them in a healthy and educated way. i 57

> Digital Transformation:

Ignore People and Talent at Your Peril

By Alessandro Hatami MD of strategic consultancy Pacemakers

Key trends that emerged at Davos will define the global financial services sector in 2024.

W

orld leaders gathered at the Davos World Economic Forum in January and told us what we already knew – that the global economy is still volatile.

Geopolitical conflicts, disruption to Red Sea trade routes, high-profile elections, energy-price hikes and the ongoing climate crisis were just some of the factors cited by policymakers and thought leaders as contributing to the current sense of unpredictability and fragility.

Christine Lagarde, president of the European Central Bank, summed it up rather nicely when she called the post-pandemic period "strange, extraordinary, and difficult to analyse". While the consensus at the forum was that consumption, trade and inflation had begun to stabilise in 2023, Lagarde warned: "It is not normality that we are heading to.”

For the financial services sector, such developments have an inevitable and immediate impact on business. The Red Sea crisis alone could drive goods inflation up by two percent – forcing banks to delay interest rate cuts.

The re-election of Donald Trump would probably redefine the US's relationship with the rest of the world. But that shift would tell only part of the story. For banks and fintechs, the pursuit of a New Normal is defined not just by Davos 2024 headlines, but also by the technological revolution unfolding in parallel.

These strands overlap, with macro-economic factors determining how much investment and attention financial services companies can pay to digital transformation. At other times, the advance of technology seems like an unavoidable force for change, uncovering topics that warrant discussion.

Either way, financial services companies must avoid being dazzled by the Davos agenda and neglect the 24/7 task of business transformation.

So, what are the trends likely to define the next 12 months?

FINTECH FALLOUT Thanks to the current VC desert, fintechs that rely on equity investment to grow have seen their financial muscle wither. Many will not be able to meet the targets they set in the previous flat and down rounds. Depending on how long the lack 58

of VC investment lasts, some may fail as their finances dwindle.

The ones that secure investment will be profitable, or able to demonstrate a clear trajectory towards returns. A case in point is Starling Bank, which saw a sixfold increase in profits in 2023.

OPPORTUNIST AND STRATEGIC M&A Activity is likely to increase here. Some fintechs continue to be transformative and sustainable – but have nonetheless seen market valuations slide because of the downturn. As a result of bargain-basement valuations, some will become the focus of private equity and corporate investments. PEs will see cut-price fintechs as a tactical financial opportunity, expecting valuations to pick up post-crisis.

Corporate investors, meanwhile, will seize on an opportunity to accelerate transformation by integrating acquisitions with existing business capabilities. Big tech may view M&A as a means to enter financial services. PwC expects wealth management, insurance and payments to be hot targets for M&A – and estimates that 47 percent of financial-services chief executives are planning to make acquisitions over the next three years.

INCUMBENT BANKS Now, these could prosper. It hasn't been a great time for them recently, and they have been slow to change and poor at capitalising on customer experience. But with a reduced threat from fintech rivals, established businesses could do very well in the new financial climate.

Along with the neutralised fintech challenge, banks can expect customer deposits to earn them more. If their risk models function effectively, an increase in borrowing from employed, cashstrapped individuals will increase their profits. Of course, banks won't want to brag about that – for fear of invoking a windfall tax.

MOBILE BANKING This is becoming a battleground. Last year, the banking industry shed 60,000 jobs and closed hundreds of high street branches. More brickand-mortar banks will shut in 2024 as banks seek to reduce costs.

They now rely on getting customers to sign up for mobile apps – but this reduces their CFI.co | Capital Finance International

differentiation from fintechs and neobanks like Monzo, Revolut, and Starling. It has also created a window of opportunity for companies like JP Morgan Chase.

This transformation became very real for the 1,600 Lloyds Banking Group branch staff due to be laid off in the coming months. The bank said this was driven by the fact that just eight percent of its 21 million customers rely on physical branches. With the tipping point reached in real life vs digital banking, expect traditional banks to ramp up their efforts to win mobile banking customers with improved CX and incentives.

THE NORMALISATION OF CRYPTO Despite all the scandals, smoke, and mirrors, the crypto economy is moving mainstream, as evidenced by former chancellor George Osborne joining the Coinbase exchange as an adviser. Banks and governments know that there is a lot of money to be made – but the sector remains anarchic and opaque. So, regulation will accelerate.

Countries will also be seeking to legitimise the sector by introducing CBDCs. At this stage, the Eurozone looks ahead of the pack – though the Bank of England is moving slowly. With tighter regulation and the introduction of CBDCs,

Spring 2024 Issue

consumer confidence (and investment) in crypto will return.

In a few years, the FTX debacle will be seen as a turning point. The regulators are getting serious: the FT calculated that in 2023, crypto and fintech groups were fined $5.8bn in a global crackdown on illicit financial practices.

INCREASED INVESTMENT This is likely to shore-up banking resilience. In the year to June 2023, the UK financial services sector experienced 640 cybersecurity breaches – up from 187 the previous year. Fastly recently reported that businesses lost, on average, nine percent of their revenue over the past 12 months thanks to the cyberattacks. This figure rises to 11 percent for UK firms.

Based on responses from almost 1,500 IT decision-makers, the research revealed that financial services firms suffered more than any other sector. Respondents reported an average of 50 attacks each last year, and nearly a third saw customer accounts compromised. Against this backdrop, expect even greater attention to banking resilience.

The EU’s Digital Operational Resilience Act (Dora) came into force on January 16 last year – but organisations have until January 2025 to

become compliant. Dora aims to introduce a framework for digital operational resilience for financial institutions. This will change the way many bank boards view tech resilience.

create “good” jobs and give people the skills they need to drive the economy. Research from FDM Group shows this is seen as a major factor for the future of the financial services sector.

BANKING AS A SERVICE Pioneers will take the AI initiative. You won't find a “future trends” article that doesn't reference AI, so profound is the anticipated impact. It was a key talking point at Davos, with leading economists predicting generative AI will "increase productivity and innovation".

The future may be all about AI, crypto, cybersecurity and mobile apps, but countries and companies that fail to provide the necessary investment and incentives in talent will fall behind. i

Of course, not everyone will benefit to the same degree – so financial services firms need to get their ducks in a row to secure a competitive advantage. The key to being a serious player in generative AI is in data control, not just in its linear creation. Leadership in gen AI will go to players with access to the richest array of data about usage, timing, patterns, and goals.

This puts specialised banking-as-a-service platforms in pole position as they collate data from banks, consumers and businesses. A key area will be personal financial management.

INVESTMENT IN TALENT One high-profile theme at Davos was the issue of investment in jobs, skills and people. Over numerous sessions, Davos explored ways to CFI.co | Capital Finance International

Author: Alessandro Hatami

59

> ‘Economically Inactive’ —

Is That a Euphemism for Unemployment, or a Metric to Assess the Economy?

Just under 40 percent of those living in England and Wales are said to be “economically inactive”; what does that mean for the economy?

M

ore than half the people living in England and Wales — 61 percent — are in work, or actively seeking jobs.

The remaining 39 percent have been designated “economically inactive”.

Data from the ONS 2021 Census have been analysed by “income-protection” firm Eleos to reveal what proportion of the population is working, and which industries they are in.

More than 28.2 million people, excluding fulltime students, are considered economically active, with 95.12 percent of them employed and 4.87 percent looking for work. Those who are both full-time students and economically active make up 2.28 percent of the population; Rank 1.

2.

3.

4.

5.

6.

7.

8.

9.

10.

But 19,117,521 people — the 39 percent — are considered inactive, over half of them retirees.

Those looking after home and family make up 12.12 percent, followed 10.59 percent who are suffering from long-term illness or disability.

The industry with largest proportion of the workforce is retail, excluding vehicles sales.

Some 2.8 million people, or 10.2 percent of the working population, are in this sector.

In second spot is the education sector, accounting for 2,722,418 people; third is human healthcare, with 2,476,180.

Industry Retail trade, (ex motor vehicles) Education Human health activities Construction & civil engineering Public administration & defence Social work activities w/o accommodation Food & beverage services Programming, consultancy, and related Wholesale trade (ex motor vehicles) Services to buildings and landscape

10 MOST POPULAR INDUSTRIES IN ENGLAND & WALES As well as looking at what industries people work in, the analysis also looked at modes of transport for commuters.

Just less than half — 45 percent, or 12,480,002 people — drive to work; 31 percent work mainly from home, while four percent use public transport, minibuses or coaches. Just 0.4 percent, or 127,804 workers, arrive at work astride motorcycles, scooters, or mopeds.

Eleos CEO Kiruba Shankar Eswaran says defining the number of economically active people is “a key metric in assessing the overall economic health of a country”.

60

14.33 percent of students say they are not looking for work.

N° of people 2,838,718 2,722,418 2,476,180 2,397,460 1,636,980 1,175,424 1,146,261 788,517 767,154 705,935

% of workforce 10.2% 9.8% 8.9% 8.6% 5.9% 4.2% 4.1% 2.8% 2.7% 2.5%

“High levels of economic activity often correlate with a vibrant and growing economy,” he said, “while low levels may indicate economic challenges.

“Person-facing roles, such as customer service, healthcare, education, and hospitality, are integral to the functioning of society. They contribute directly to wellbeing and quality of life for individuals. Monitoring these roles helps identify shifts in societal needs and preferences.”

It also helps policymakers, businesses, and researchers to identify “which industries are thriving, where there may be skill shortages, and which sectors are experiencing growth or decline”. i CFI.co | Capital Finance International

Spring 2024 Issue

"The industry with largest proportion of the workforce is retail, excluding vehicles sales. Some 2.8 million people, or 10.2 percent of the working population, are in this sector. "

CFI.co | Capital Finance International

61

> ESG Leadership Trends, from

‘Woke Capitalism’ to ‘Quiet Sustainability’ This is no time to get distracted, argues Fabrizio Ferraro — sustainable impact will bring the lasting change we need.

A

s world leaders and business titans gathered at Davos this year for the annual World Economic Forum, ESG was at the top of the agenda — albeit framed within the theme of “Rebuilding Trust”.

The title is a nod to a challenging global landscape that includes a growing backlash to social and sustainable indicators across the financial sphere. Even as WEF members made the case for a “green, digital and inclusive economy”, Republicans in New Hampshire were proposing a ban on using ESG criteria to attract state investment. Critics in Europe, meanwhile, have cast doubt on the viability of fair regulatory ESG metrics. Blackrock, in a departure from Larry Fink’s usual championing of ESG, intends to emphasise “financial resilience” in its talks with companies. Barclays has announced a Sustainable Banking Group, combining teams from the Sustainable Capital Markets and ESG divisions.

From political resistance to emerging EU regulation, the debate around the deployment of ESG responsibilities remains febrile. As the business world continues to face the fallout, four trends are likely to influence ESG leadership.

New EU disclosure laws With the EU’s Corporate Sustainability Reporting Directive coming into play in 2025, a broader range of corporates and SMEs will have transparency thrust upon them. This should narrow the gap between sustainability leaders and slackers.

It will also provide structure for norms on sustainability reporting to reign-in greenwashing.

The introduction of the EU Sustainable Finance Disclosure Regulation in 2021 has sparked a decarbonisation of investment portfolios. EU funds claim to make investment decisions based on sustainability criteria.

QUIET ESG This is a response to politicisation. From US Republicans pulling $1bn from BlackRock over ESG investing concerns to the legal feud between Florida Governor Ron DeSantis and Disney, multinational corporations are finding themselves in the crossfire of a Right-wing backlash against so-called “woke” capitalism. This is likely to continue until the US presidential elections.

62

Author: Professor Fabrizio Ferraro

But this distracting wave of anti-ESG sentiment won’t move the needle at a time of such seismic change. Climate change continues to be the most common reason for portfolio exclusions.

Despite stellar profits due to the Russian invasion of Ukraine, fossil fuels are increasingly being shunned.

Danish biotech Novozymes was one of the first to do so, amid increased demand for sustainable bio-solutions. Madrid-based Acciona Energia is leading a call to repower Europe’s ageing wind farms. It, too, is on the SDG path, declaring that “social progress, environmental balance and economic growth go hand-in-hand”.

Nonetheless, anti-ESG noise has prompted a more discreet approach from those asset managers inclined to use ESG as a ruse to market funds.

It's a policy that allows companies to resist shortterm temptations. The SDGs provide them with a North Star in troubled times.

DECARBONISATION Corporations will be stepping-up their game up here. Major players are re-organising their core business around decarbonisation, and the need for a positive societal impact.

Schneider Electric has undergone such a transformation. It began life in 1836 as an armaments company — and has been reborn as a world-leader in sustainability and efficiency management. Finland-based Neste has moved from oil giant status to the world’s largest producer of renewable aviation fuels. Even Amazon, with its contentious track record on labour issues, is ahead of schedule on its plans to operate with 100 percent renewable energy by 2025.

UN BLUEPRINT ESG champions will increasingly align with the UN's 17 Sustainable Development Goals (SDGs).

CFI.co | Capital Finance International

As the Davos elite are no doubt aware, there are no quick fixes in the realm of ESG. Against the backdrop of a competitive and divided market, personal interests are naturally protected — regardless of the greater good. But the WEF highlighted the need for open, transparent conversations as a path away from crisis-driven dynamics.

With the fight to keep global warming below the 1.5°C mark reaching a critical stage, businesses and investors must double-down on ESG commitments. This is no time to get distracted.

Let’s co-operate and use sustainable impact as a lever for lasting, positive change. i ABOUT THE AUTHOR Professor Fabrizio Ferraro is head of the Strategic Management Department at IESE Business School, and academic director of IESE’s Institute for Sustainability Leadership.

Open your world to new discoveries.

Introducing the World Elite Mastercard with the contactless feature.

Mastercard credit cards.

Free access to over 850 airport lounges worldwide with one guest**

Concierge** services

50% discount* on movie tickets

Buy-1-get-1 offer* at Costa Coffee and many other outlets

10% discount* on air tickets through “Cleartrip”.

For more information, please call our 24 hours Phone Banking on 17531532. Download “Mastercard for you” app on your phone to know the World Elite Mastercard features.

sc.com/bh * Terms and conditions apply. ** Exclusive benefit for World Elite Mastercard customers.

Licensed by the Central Bank of Bahrain as a Conventional Retail and a Wholesale bank.

> Lights, Camera ... Safety?

How to Avoid Future ‘Sacrifices’ to Hollywood’s Altar An all-too-real scenario recently played out on the set of the western Rust. Scene: a dimly-lit church. Mood: tense.

Outcome: tragic — and ultimately disturbing...

T

he camera’s focus is on the actors; tension hangs in the air. The sudden report of a gunshot is not entirely unexpected — the film in question is a western. But after the blast comes unscripted screaming and commotion.

Leading actor Alec Baldwin’s stage firearm, a Colt .45, had discharged. The exact circumstances have been disputed, but the effects were immediately clear: Cinematographer Halyna Hutchins lay dying of a fatal chest wound, and director Joel Souza had been injured.

This tragedy on the New Mexico set of Rust has captured public attention since October 2021.

It was, and will continue to be, a reminder of the risks that sometimes lie behind the scenes enacted for our entertainment.

The delicate balance of artistic freedom and on-set safety tilted wildly that day; Baldwin was handed a prop firearm with a live round in the chamber.

Armourer Hannah Gutierrez-Reed has been found guilty by a US court of involuntary manslaughter, which carries a potential prison sentence. While the investigation is ongoing and legal difficulties have arisen, one clear fact remains: Hollywood can, and must, do better.

EXAMINING THE ISSUE The glitzy world of cinema, with engaging narratives, vibrant visuals and hypnotic special effects, is not without risk. Potential hazards hide behind — and in — the scenes played out for us. The invocation of cinematic magic comes with risks and rules that can’t be ignored.

There have been catastrophes over the years: Accidental shootings, stunt mishaps, set malfunctions, imprecise pyrotechnic explosions, and electrical hazards. There are natural risks, too: filming in extreme weather, with dangerous animals, and in settings that pose real dangers.

The Rust on-set incident shocked the industry, and film fans. Before the camera rolled, the sidearm was discharged — and Hutchins died, 64

"The delicate balance of artistic freedom and on-set safety tilted wildly that day; Baldwin was handed a prop firearm with a live round in the chamber." despite frantic efforts to save her. Debate and criticism followed almost in the echo of the fatal shot, highlighting lax safety measures and their potentially lethal implications.

There has been a surge of scrutiny and a scrabble for reform initiatives in the industry: calls for more stringent laws, better training, and a renewed emphasis on safety.

The Rust tragedy isn't an isolated incident.

Other regrettable accidents over the years should have served as pointers to the importance of a proactive attitude to on-set safety. Somehow, they failed to do that.

What is needed now is a broad, concerted approach that addresses all facets of movie production.

The obvious place to start is with prop safety. It's vital to implement stricter handling and storage standards for the firearms and explosives that are an embedded part of every blockbuster.

This could include more stringent licensing standards for armourers, mandatory inspections of prop guns before and after use, and explicit processes for the handling of “blank” and other ammunition.

TRAINING FOR PERSONNEL Mandatory weapons safety training should be provided to all on-set personnel in contact with prop weapons — including the actors.

This should cover handling techniques, safety considerations, and effective communication protocols.

CFI.co | Capital Finance International

Is it perhaps time to consider alternatives to the use of real firearms on set? Surely the audience would lose no sense of excitement if non-firing replicas (or CGI effects) were used in shoot-out scenes?

When it comes to stunt safety, the starting point is working with highly skilled professionals who carefully prepare action sequences. Co-ordinators and committed safety inspectors should be present at all stages of production.

The unsparing use of safety equipment and regular drills could reduce hazards: Stronger cushioning for falls and tumbles, specialised set-ups and routines for fight scenes — there are options. As in any business, effective communication and risk-detection are key points. Regular briefings, open communication lines, and proactive risk-assessments are critical.

Unions and guilds help to enforce such standards. They collectively lobby for stronger legislation, provide suitable safety resources, and keep productions accountable. This should apply to any safe workplace.

Recognising the human component of showbiz is vital. Actors and set specialists are people, too. Setting realistic working hours and minimising stress can help to avoid fatiguerelated accidents, and keep everyone alert.

Spring 2024 Issue

By implementing simple steps, the film industry can work to create a more secure atmosphere for everyone involved — those in front of the camera, and those behind. The intention is not to limit creativity or artistic freedom, but to ensure that violent tales are portrayed and recorded with proper regard for human safety and wellbeing.

THE ROAD AHEAD The road to improved standards has been set, but it is not without hurdles. Tougher rules may cut into production and timeline costs — but balance those constraints against the sanctity of human life, and think again.

Prioritising safety should not affect artistic vision.

Thousands of action movies have been safely completed, despite explosive, dramatic action scenes. Many studios and production houses have integrated safety measures to demonstrate how explosive scenes can coexist with artistic integrity.

To be effective, industry-wide co-ordination is crucial. From filmmakers and actors to unions, guilds, and regulatory authorities, there must be a shared commitment to embrace a tougher set of procedures. This should be conducted with a zero-tolerance stance. Life is invaluable, and every adverse incident, no matter how small, should serve as a wake-up call.

By putting safety first and encouraging transparency and communication, in a

collaborative way, the film industry can ensure that on-screen magic is never eclipsed by preventable tragedy.

The dynamic imaginary world of cinema hinges on the effort and participation of many creative individuals. The quest for a fascinating narrative and spectacular images should never encroach on human safety. We must commit — as audiences, actors, producers and directors — to a future free of preventable tragedy.

Safety is not negotiable, or even an ethical necessity; it should be an intrinsic part of the whole.

Remember that a film set is a workplace — but a more complicated one than a building site. It’s also a community, so let’s create a culture where everyone feels cherished, protected, and empowered.

The awe of the narrative stems from a potential to transport us, inspire us, and connect us to our imaginative sides. Let’s focus on tales that are captivating, but also sympathetic to the sensibilities and safety of all concerned. It's time to rewrite the script.

So: Action! And let’s ensure that safety is paramount to the moving picture. i

Lest We Forget: Cinematographer’s Death will at Least Boost Set Safety On March 6, 2024, Hannah GutierrezReed, the armourer on the set of the wester film Rust, was found guilty of involuntary manslaughter.

Her conviction came as the first result of an on-set shooting that resulted in the death of Ukrainian-born cinematographer Halyna Hutchins. The legal case for others involved is ongoing.

Gutierrez-Reed was in charge of handling weaponry on the set. This included making sure the prop guns and blank ammunition were safe. The prosecution showed that GutierrezReed had failed in that singular duty. Her negligence led to a tragic outcome.

Gutierrez-Reed, who was found not guilty of an additional charge of tampering with CFI.co | Capital Finance International

evidence — there had been allegations of druguse — did not testify in her own defence.

Lead actor Alec Baldwin, who fired the revolver in question, has not yet faced trial.

He too has been charged with involuntary manslaughter.

The court case is only one aspect of a wider tale involving lax safety procedures — and potential liability in film projects. Baldwin's case is yet to be decided, and the entire story of what transpired on the set of Rust is unlikely to be revealed until all legal issues are resolved.

There has been an outpouring of public grief and private recriminations after the incident that cost Halyna Hutchins her life.

Improvements to security and safety protocols on film sets will be one of her legacies.

65

> Beyond the Chant:

Horror and Scandal of Hillsborough, 1989 As kick-off approached, rising pressure outside the stadium prompted a catastrophic decision which set off a deadly chain of events.

A

JUSTICE DELAYED The Hillsborough Family Support Group was created by bereaved relatives to challenge the official narrative. Their advocacy, calling for investigations, the release of official papers, and combating false accusations against their loved ones, was an example of sheer determination.

football game is designed to elicit passion and a sense of shared excitement. On April 15, 1989, Liverpool FC followers travelled to Sheffield's Hillsborough Stadium, where the excitement was palpable.

For the fans, getting tickets to the FA Cup semifinal match against Nottingham Forest was one more step towards the trophy. But this was a day that would permanently change the landscape of British football.

The Hillsborough Stadium, while a familiar venue for important matches, was unprepared to manage the enormous number of Liverpool fans. Its design, notably of the standing-only Leppings Lane pens, provided an inherent risk that would soon be brutally exposed.

As kick-off approached, rising pressure outside the stadium prompted a catastrophic decision which set off a deadly chain of events.

A terrible crush began, one that claimed the lives of 96 people, including sons and daughters, husbands and wives, friends and neighbours. And in the immediate aftermath, another horror began.

The responsible authorities tried to blame the victims for the tragedy.

There were accusations of hooliganism, intoxication, and misbehaviour. The papers were full of it, but this was a deliberate attempt to deflect blame. In truth, systematic failure at all levels of organisation and law enforcement enabled a calamity.

And the quest for truth had only just begun. The fans’ drive to clear their loved ones' names, as well as their courage in exposing the lies of those in power, would serve as a tribute to human resilience in the face of enormous injustice.

A CHRONICLE OF ERRORS Chief Superintendent David Duckenfield, the match commander, was a key character whose actions had deadly ramifications. Inexperienced with large-scale events such as this, he made some major mistakes, including failing to block the tunnel leading to the already overcrowded pens. He also ordered the opening of the now infamous Gate C, which resulted in an uncontrolled stampede of supporters.

The Hillsborough stadium was not constructed for this level of capacity, and the Leppings Lane pens 66

lacked proper barriers or escape routes. These factors, along with a breakdown in communication between police and emergency services, was a recipe for disaster.

The aftermath of the crush was an indescribable spectacle of agony, with injured and dying fans on the pitch, desperate people attempting to climb fences, and homemade stretchers being constructed from advertising hoardings.

Emergency services responded, but in a sluggish and disorganised manner; several ambulances were unable to reach the stadium. Families had to deal with the horror of identifying their loved ones in the middle of chaos and unfathomable sorrow.

In a 1991 inquest, the coroner established a cutoff point of 3:15pm, rejecting evidence of deaths which occurred after that time. This, combined with the eventual decision of “accidental death”, dealt a crushing blow to the families.

The Hillsborough Independent Panel report released in 2012 was a step forward, if greatly delayed. It exonerated the fans, revealed the full scope of the cover-up, and showed the shortcomings of the police and emergency services. The 2014–2016 inquests marked a watershed moment. Prior findings were overturned, and the fatalities were finally classified as “unlawful”.

The Hillsborough disaster was not only a failure of crowd management, but also a breach of public confidence in police enforcement. The disaster's legacy extends beyond the immediate loss of life.

The elimination of standing-only areas has had a significant impact on football safety standards.

But the families' unwavering fight remains the most significant reminder of the Hillsborough disaster.

Their steadfast quest of truth serves as a reminder of the enormous power of collective action to combat injustice. Perseverance and faith in the sanctity of truth can hold even powerful institutions to account. Hillsborough should never be forgotten. It serves as a vivid and grim example of the disastrous effects of neglect – and demonstrates the value of the unwavering pursuit of justice. i

The Hellish Legacy of a Poor Decision, and a Lack of Responsible Planning Chief Superintendent David Duckenfield's decision to open Gate C at Hillsborough appears to have been driven in part by a desire to minimise disorder outside the stadium.

This raises more general questions concerning crowd-control measures at the time. Football hooliganism was a huge problem in the 1980s.

Tactics for dealing with big crowds were frequently heavy-handed, with concerns about ticketless fans outside the arena causing trouble.

It's possible that Duckenfield viewed admitting un-ticketed fans as a lesser risk than the potential violence outside. However, it was a choice that tragically ignored the hazards of overcrowding CFI.co | Capital Finance International

in Leppings Lane, where safety was already compromised. Even if preventing a disturbance was a major consideration, the decision was a terrible one. It exhibited a lack of knowledge of crowd dynamics in the stadium’s distinctive configuration.

Authorities should have had contingency measures in place to securely divert fans should the need arise.

What worsened the tragedy was not just the opening of the gate itself, but the officer’s inability to combine it with any internal safety measures. There was no system in place for fan diversion, insufficient stewarding, and no way to close off the tunnel.

In all, it was a catastrophic failure of responsibility.

Spring 2024 Issue

doctors & healthcare professionals upgrade your practice Are you looking to purchase new or perhaps sell & lease back your existing medical imaging equipment?

A bespoke lease of up to 5 years with competitive terms could be the perfect solution for you to free up capital.

Contact a team member to discuss your unique business needs. +971508467126 babar.malik@link-lease.com link-lease.com LinkLease Equipment Rental Dubai, United Arab Emirates CFI.co | Capital Finance International

67

68

CFI.co | Capital Finance International

> Film Review: Scoop, Netflix

A Journalistic Coup with a Nasty Aftertaste

B

ritain’s Prince Andrew and the late American sex offender Jeffrey Epstein have become inextricably linked in the public perception of scandal and the abuse of power.

Netflix's Scoop delves into the historic BBC Newsnight interview, so often (and so rightly) referred to as a train wreck, which supposedly gave the Prince once known as “Randy Andy” a chance to clarify, and justify, his relationship with Epstein.

Director Philip Martin does a deeper dive into the back-office and newsroom conflicts than into the relationship itself. This is a tale of journalistic ambition and lurid public interest colliding, with predictable ethical quandaries.

Based on producer Sam McAlister's book Scoops: Behind the Scenes of the BBC's Most Shocking Interviews, the video poses some important questions. One of them is this: Where is the line between responsibility and exploitative spectacle?

Scoop has a stripped-back, docudrama feel.

A sense of stark realism helps to convey the frenzied, behind-the-scenes manoeuvring at the Beeb. We witness stressful phone calls, hushed boardroom meetings, and the unwavering tenacity of production staff.

This visual restraint becomes a double-edged sword, to the film’s detriment. The interview sequence, which serves as the narrative's climax, lacks visual vibrancy. Luckily, the actors’ performances provide ample compensation.

Rufus Sewell's portrayal of Prince Andrew is masterful; he nails an excruciating blend of entitlement, defensiveness, and the complete disconnect of a person born into uncontested power. Billie Piper portrays Sam McAlister as the news producer doggedly pursuing her narrative. There's an underlying vulnerability in

"The film is a squandered opportunity to delve into some of the hardto-bear truths that so often lay beneath the headlines." her performance as McAlister, who struggles with the weight of her responsibilities.

Keeley Hawes plays Amanda Thirsk, Prince Andrew's private secretary, with hints of an intriguing split personality. There's a steeliness beneath the mask of loyalty, and Hawes skilfully depicts Thirsk's internal battle as she navigates the tricky task of defending her boss – while acknowledging the possible consequences for all concerned. Gillian Anderson's Emily Maitlis, while competently done, leaves little room for manoeuvre, relying primarily on the presenter’s icy serenity.

SCRIPT AND STORY Scoop balances fidelity to its source material with the cinematic need for dramatic intensity.

The result is a film with intermittent pacing issues. Early scenes, while crucial to establish the setting and stakes, feel somewhat protracted.

An examination of the journalistic ethics of interviewing a royal, while unquestionably vital, lacks crispness, and is ultimately less than compelling.

But as the pace accelerates towards the interview itself, a compensatory momentum emerges. This is where the unusual collaboration between CFI.co | Capital Finance International

McAlister and Thirsk comes to the fore. The script manages to emphasise how these two women, on opposite poles, must collaborate and fence to achieve their particular objectives.

Accuracy and nuance form the space where Scoop is likely to receive its most damning criticism. The on-screen Andrew veers into a series of bizarre caricatures, and while these infamous mannerisms may make for compelling viewing, they raise concerns about the film's actual purpose.

In its depiction of Thirsk, Scoop finds a more delicate balance. We see an ambitious and bright woman on a moral tightrope-walk – within a system that favours the rich and powerful. The film wrestles with the fact that even the most exhaustive interviews risk giving a PR platform to the person under scrutiny. This dichotomy is presented with insufficient force, ultimately being eclipsed by pure shock value.

WORTH A WATCH? Scoop unquestionably succeeds as a case study for the sheer determination required to acquire journalistic exclusives. It will be useful to those interested in high-stakes news-gathering, and in the specifics of the Andrew interview. But the film falls short as a detailed examination of such complicated subjects.

The ethical handwringing is a bit mechanical, a box to be ticked rather than a genuine exploration of the long-term ramifications that come with the cinematic portrayal of people accused, or suspected, of awful behaviour. While McAlister's journalistic tenacity is shown to be admirable, Scoop struggles to transmute that energy into anything more than armchair fascination.

For some, the film is a squandered opportunity to delve into some of the hard-to-bear truths that so often lay beneath the headlines. i 69

Giannis Antetokounmpo

Spring 2024 Issue

ANNOUNCING

AWARDS 2024 SPRING HIGHLIGHTS Once again CFI.co brings you reports of individuals and organisations that our readers and the judging panel consider worthy of special recognition. We hope you find our short profiles interesting and informative.

All the winners announced below were nominated by CFI.co audiences and

70

then shortlisted for further consideration by the panel. Our research team gathered additional information to help reach a final decision. In many cases, senior members of nominee management teams provided the judges with a personal view of what sets their companies and institutions apart from the competition.

CFI.co | Capital Finance International

As world economies converge we are coming across many inspirational individuals and organisations from developing as well as developed markets - and everyone can learn something from them. If you have been particularly impressed by an individual or organisation’s performance please visit our award pages at www.cfi.co and nominate.

Spring 2024 Issue

> MOODY’S RATINGS: BEST CREDIT RISK ANALYSIS LATAM 2024

Moody’s Ratings has unparalleled expertise in navigating the dynamic landscape of private credit and digital finance. With over a century of credit risk assessment acumen, Moody’s Ratings stand as a beacon of trust for investors seeking robust insights into non-bank lending opportunities, particularly in the burgeoning private credit market.

Moody’s Ratings facilitate informed decisionmaking by offering transparent evaluations of leading private debt investment vehicles, including Business Development Companies (BDCs), Collateralised Loan Obligations (CLOs), and Managed Funds. Moreover, Moody’s Ratings

unrivalled digital finance initiatives, such as data stories and special reports, provide a comprehensive overview of emerging trends and potential risks in the digital assets space, ensuring stakeholders remain well-informed and prepared to tackle evolving challenges. Its reports are well respected. Moody’s Ratings commitment to Environmental, Social, and Governance (ESG) principles further enhances its credibility, with rigorous assessments of green, social, and sustainability financial instruments. Leveraging its extensive second-party opinion framework and net-zero assessments, Moody’s Ratings empowers

investors with actionable insights to align their portfolios with global sustainability objectives.

As a trusted partner in the financial ecosystem, Moody’s Ratings continues to redefine industry standards, driving innovation and fostering resilience in credit risk analysis across the LATAM region. CFI.co extends its sincere congratulations to Moody’s Ratings for its exemplary contributions to credit risk analysis in LATAM, setting a benchmark for excellence and integrity in the financial industry. Without question the judging panel confirms Moody’s Ratings as winner of the 2024 award Best Credit Risk Analysis (LATAM).

> SCOTTISH FRIENDLY: BEST MUTUAL INSURER UK 2024

Emerging from a year marked by economic turbulence, Scottish Friendly stands out for its unwavering commitment to core purpose: empowering customers and their families to achieve financial wellbeing. Its dedication is evident across multiple facets of operation. Firstly, its mutual status ensures a focus on customer value, not shareholder profits. This is reflected in the "Special Members' Share" profit distribution, directly benefiting policyholders. Furthermore, Scottish Friendly actively invests in creating user-friendly digital tools that equip customers with the knowledge to make informed financial

decisions. Recognising the evolving needs of its customers, Scottish Friendly recently undertook a comprehensive strategic review, reaffirming existing strengths and identifying growth opportunities. A key focus is expanding offerings through strategic partnerships, with the Unisure deal demonstrating commitment to this goal.

An agreement in April 2023 confirmed Scottish friendly as mutual insurer for Unisure’s UK Group Life division (alongside Allianz). Additionally, Scottish Friendly pursues complementary acquisitions. Understanding that positive customer experience is paramount, Scottish Friendly invests

heavily in improving digital services and fostering employee development, achieving "Very Good Company to Work For" status. This recognition speaks to its commitment to creating a supportive environment, translating into a superior customer experience. Beyond financial metrics, Scottish Friendly shows a strong commitment to social good, investing in initiatives such as supporting children's mental health. Combining resilient financial performance with strategic focus and a customer service ethos, Scottish Friendly, a repeat winner, is declared 2024 winner of the award for Best Mutual Insurer (UK).

> THE ACCESS BANK UK LTD: BEST AFRICA TRADE FINANCE BANK 2024

The Access Bank UK Ltd has demonstrated an impressive journey of success, marked by a consistent rise in income over the past 13 years. According to the judging panel, "The Access Bank UK Ltd should be proud of its international development, support to Africa, and commitment to conducting sustainable business. The Bank plays a key role in its parent’s (Access Bank Plc) and Group’s vision to be the world's most respected African bank." With a focus on relationship banking, it holds a strong position as a Correspondent Bank in Nigeria, facilitating trade volumes. Despite challenges

such as currency weakness, the bank remains steadfast in its support of Nigeria, emphasising the importance of maintaining corporate integrity through employee training and development initiatives, as noted by Jamie Simmonds, CEO/ MD of The Access Bank UK Ltd. In a testament to its commitment to industry collaboration, The Access Bank UK Ltd co-sponsored the GTR Africa 2023 event, providing a platform for stakeholders to address challenges and explore opportunities in African trade finance.

Additionally, the bank’s recent approval to establish a branch in Hong Kong signifies CFI.co | Capital Finance International

potential for cross-continental trade expansion.

The bank’s branches in strategic locations such as the Dubai International Financial Centre and Paris cater to trade and investment needs in Africa, the MENA region and Francophone Europe, offering tailored services via dedicated Relationship Managers. The Bank has been reconfirmed as platinum status by Investors in People, demonstrating commitment to helping its employees reach their full potential along with promoting a strong company culture. Repeat winner The Access Bank UK Ltd takes the 2024 award for Best Africa Trade Finance Bank.

71

> FLI GLOBAL LTD: BEST ENVIRONMENTAL SOLUTIONS PARTNER EUROPE 2024

FLI Group has been delivering environmental engineering solutions for the private and public sector since 1989. The group comprises a diverse selection of firms pushing the boundaries in land remediation, water and wastewater management and treatment, geosynthetic linings and ecologically-focused engineering and manufacturing. In November 2023 VertaseFLI was the winner of the “Best Sustainable Re-Use of Materials” category in the UK environment analyst Brownfield Awards together with Arup, Vinci and Liverpool City Council for the Liverpool Festival Gardens Landfill remediation project.

Circular economy principles are key to the group’s sustainability mandate, which permeates every aspect of its operations. FLI’s contributions to the Liverpool Festival Gardens Landfill remediation will help improve the region’s economic prospects, the community’s social well-being and the resilience of the environment.

Another group member, FLI Precast, has been tasked with the design and offsite manufacturing of Europe’s largest underground drinking water reservoir. The new reservoir will boast a capacity of around 43 million litres of water, or about 17 Olympic-sized swimming pools, to future-proof

water resources for approximately 250,000 properties. FLI Global is a future-forward company delivering solutions for a rapidly changing world. It shapes product development through continuous innovation to address the most urgent market needs, including rapid-build panelised systems to alleviate housing shortages across Ireland and the UK as well as coastal and river defence systems to cope with rising sea levels and flooding. The CFI.co judging panel presents repeat winner FLI Global with the 2024 Best Environmental Solutions Partner (Europe) award.

> CORDET: BEST ALTERNATIVE CREDIT INVESTOR UNITED KINGDOM 2024

CORDET has established itself as a leading alternative credit investor in the United Kingdom, demonstrating a formidable and truly impressive presence within the financial sector. The company has shown a consistent drive towards innovation, focusing on improved internal procedures and new systems, all while maintaining a diverse investment portfolio. With recent transactions in the Netherlands and Austria, CORDET is clearly expanding its geographical footprint.

The company's commitment to ESG practices remains robust, aligning with its focus on sustainable investments. As CORDET navigates

a challenging financial landscape, it continues to bridge the gap for well-performing businesses that might otherwise struggle to secure financing. This strategy has contributed to its success, attracting industry recognition and awards, including the European Small Cap Direct Lending Manager of the Year. CORDET has also been proactive in adjusting to shifting market conditions, balancing risk exposure with the need to seize new opportunities. The company's strategic approach to business services and its preference for B2B investments have contributed to its ongoing success. Additionally, CORDET

has embraced technological advancements, optimising internal processes and reporting systems to meet investor demands. This forwardthinking mindset ensures that the company stays ahead of industry trends while maintaining its core values. CORDET's unwavering commitment to excellence and continuous adaptation to market dynamics have solidified its reputation as a leader in alternative credit investment.

CORDET’s ability to maintain momentum, despite industry fluctuations, makes it deserving recipient of the 2024 award Best Alternative Credit Investor (United Kingdom).

Bedrock Group has carved out a distinct niche in the investment management industry through its dedication to providing bespoke solutions for clients ranging from high-net-worth individuals to institutional investors. Its investment philosophy is centred on understanding that everyone sees wealth differently. At the centre of how they work with families is helping them to explore the different forms of capital, and helping clients and their families to understand the purpose behind wealth so they can achieve both their shared financial and nonfinancial goals.

Bedrock Group’s team comprises of seasoned professionals across offices in London, Geneva, and Monaco with extensive expertise in global

financial markets, enabling the company to offer a diverse array of investment solutions, including equities, fixed income, and alternative investments, to create resilient portfolios capable of withstanding market fluctuations. The company's commitment to client satisfaction is reflected in its transparent communication and comprehensive reporting, which keeps clients informed about their investment performance and broader market trends.

Bedrock Group's focus on risk management is central to its strategy, with rigorous analysis and ongoing monitoring ensuring that portfolios are optimised for both growth and stability.

The firm's emphasis on ethical investing and

sustainable practices aligns with the growing demand for responsible investment strategies, reinforcing Bedrock Group's reputation as a socially conscious industry leader. Additionally, the company's adaptability to evolving market conditions and its embrace of cutting-edge technologies, such as artificial intelligence and data analytics, allow Bedrock Group to stay ahead of industry trends and offer innovative solutions to clients. This forward-thinking approach has earned the company a loyal clientele and widespread recognition within the financial sector. Bedrock Group is confirmed as 2024 winner of the award Best Investment Portfolio Manager (United Kingdom).

> BEDROCK GROUP: BEST INVESTMENT PORTFOLIO MANAGER UNITED KINGDOM 2024

72

CFI.co | Capital Finance International

Spring 2024 Issue

> RÉGION ÎLE-DE-FRANCE: BEST IN CLASS BOND ISSUER GLOBAL 2024 Région Île-de-France has established a commanding presence in the realm of green and sustainable financing, and the judging panel applauds this winner for demonstrating a pioneering commitment to environmentally conscious and socially responsible investment practices. Région Île-de-France plays a central role in promoting responsible financing and harmonising practices across European regions. lt has a clear and determined focus on green finance and adheres to European green taxonomy criteria.

Région Île-de-France's robust green and sustainable bond framework has contributed to its extraordinary success in attracting investors and issuing bonds.

In 2024, it launched an €800 million bond issue under its green, social, and sustainable framework, yielding 3.222 percent, marking its most significant bond issuance to date. This transaction

drew interest from 87 investors across 12 countries, underscoring the Region's quality offering and unmistakable financial strength. The region's financial ratios remain solid, with a debt-payback ratio of 6 years and a 26 percent gross savings forecast, which indicates prudent financial management. The judging panel points out that, "The Region's commitment to sustainable practices is reinforced by its continued pursuit of innovative solutions in green and socially responsible finance." The panel aise commended the publication of annual reports detailing the allocation and impact of its green loans, as well as the establishment of a Sustainable Finance Committee. Through its green bond framework, Région Îlede-France demonstrates an exemplary position in the sustainable finance sector, earning it the 2024 award Best in Class Bond lssuer (Global).

> SQUARE ASSET MANAGEMENT S.A: BEST REAL ESTATE FUND MANAGER IBERIA 2024 Headquartered in Lisbon, Square Asset Management has created an enviable track record over its 18 years of conducting business, and with 1.9bn Euros under management, now accounts for 13 percent of its domestic market share. Our winner is the largest real estate fund asset manager in Portugal and manages the biggest Iberian real estate open-ended investment fund. According to the judging panel, “Because Square’s flagship fund, CA Património Crescente has never reported a negative return since its establishment, and has an outstanding team of 70 top professionals, this manager has been relentlessly recognised as a leader in its industry and has the awards to prove it.” CEO Pedro Coelho has many years of relevant real estate experience and espouses the values of independency, reliability

and professionalism. Many of the major Portuguese and international corporates rely on Square, and benefit significantly because of these cherished values. Smaller investors are welcome in our conservative and lowvolatility approach towards investments.

Looking forward, Square wants to grow its business in Spain and is seeking out a distributor in that country. The panel goes on to say, “A partnership of this kind with Square is likely to be highly productive for the fund manager’s Spanish counterpart, because of this winner’s outstanding achievements and consistent, well-deserved reputation for excellence.” The panel expects to see more great results coming from Square Asset Management S.A and, without hesitation, confirms the 2024 award Best Real Estate Fund Manager (Iberia).

> SegurCaixa Adeslas: BEST INSURER SPAIN 2024 SegurCaixa Adeslas, a pre-eminent Spanish health insurance company, has demonstrated a formidable and truly impressive presence in the competitive landscape of Spain’s insurance industry. In a challenging year marked by economic uncertainties and geopolitical instabilities, the company has not only retained its leadership in the health insurance market but also expanded significantly. Through strategic acquisitions, including the notable integration of the IMQ Group, SegurCaixa Adeslas has reported a robust increase in earnings from premiums, which reached €4,889 million, reflecting a growth of 11.9 percent. This performance contributes significantly to the success of its parent company, the Mutua Madrileña Group. Additionally, the company's commitment to digital transformation and customer-centric innovations has strengthened its market position. The launch of tailored insurance

products like Adeslas Pyme Total, and the expansion of its digital health platform, which now boasts over one million registered users, underline its dedication to meeting the diverse needs of its customers. With a network comprising over 51,000 health professionals and more than 1,400 medical centres, SegurCaixa Adeslas ensures top-tier service delivery to its 6.2 million insured members.

The strategic focus on leveraging commercial growth, particularly through the banking channel, has further cemented its standing, with SegurCaixa Adeslas now poised to embark on its ambitious 2024-2026 Strategic Plan. This plan aims to fortify its market offerings and customer experience, promising continued leadership and profitable growth in the health insurance sector. The judging panels confirms SegurCaixa Adeslas as deserving winner of the 2024 award Best Insurer (Spain).

CFI.co | Capital Finance International

73

> RÉGION ÎLE-DE-FRANCE: BEST GREEN BOND THOUGHT LEADERSHIP TEAM GLOBAL 2024

Région Île-de-France has established a profound and impressive presence in the green bond sector, focusing on advancing sustainable finance practices globally. The region's leadership in green finance is underscored by its role as lead partner for the European "lnterreg" programme, spearheading the GREENGOV project to improve governance and financing for socially responsible investments. The region's commitment to sustainability is further demonstrated by its extensive issuance of green and sustainability bonds, with 12 public bonds issued since 2012, totalling €6.5 billion. In

2023, 91% of the region's outstanding debt is green and sustainable borrowings. The region's green bond framework, updated in March 2021, is regarded as best in class, and already largely aligned with the European principles of green taxonomy. This rigorous approach to sustainable finance has attracted strong investor interest, as evidenced by the successful launch of an €800 million bond issue in January 2024. The issuance garnered orders from 87 investors across 12 countries, showcasing the region's widespread appeal and its strong financial credentials. The transaction's success reflects

the quality of the region's financial strength and its sustained commitment to green finance.

Furthermore, Région Île-de-France's focus on robust impact assessment and comprehensive reporting reinforces its position as a leader in sustainable finance. The ex¬post impact report project, in collaboration with an auditing firm, aims to evaluate the region's green investments' medium-to-long-term effects, providing transparency and accountability to investors. These efforts culminate in the region's recognition in 2024 as Best Green Bond Thought Leadership Team (Global).

> INTESA SANPAOLO BANK ALBANIA: BEST BANK ALBANIA 2024

Intesa Sanpaolo Bank Albania has unwaveringly demonstrated its commitment to fostering economic growth and stability within Albania's financial sector. As a vital subsidiary of the Intesa Sanpaolo Group, which ranks among Europe’s premier banking groups, it brings a substantial level of international expertise, finely tuned to meet local demands. According to the judging panel, “The bank has consistently excelled in offering an extensive range of financial products and services, designed to meet the diverse needs of a wide array of customers, from individuals to large-scale enterprises.

Its dedication to innovation is particularly evident in its adoption of cutting-edge digital banking technologies, which have substantially enhanced both the customer experience and operational efficiency.” Furthermore, Intesa Sanpaolo Bank Albania places a strong emphasis on sustainable banking practices, actively engaging in projects that contribute to environmental conservation and social welfare. The bank’s strategic approach to corporate social responsibility, especially its initiatives aimed at improving financial literacy and supporting the community, underscores

its role as a fundamental pillar of societal development in Albania. These efforts have not only garnered acclaim from its clients but have also solidified its position in the Albanian banking sector as a leader in ethical banking. With its well-established presence and ongoing commitment to excellence and community engagement, Intesa Sanpaolo Bank Albania sets a benchmark for other financial institutions in the region. In recognition of these achievements, Intesa Sanpaolo Bank Albania has been named winner of the 2024 award Best Bank (Albania).

Luxembourg, one of the smallest countries in the world, boasts one of the highest GDP per capita and is renowned as an international trade hub with a proud history of entrepreneurship and sustainable development. Luxembourg Trade & Invest promotes the country as a premier business destination for investors and an ideal springboard for international expansion.

It works with partners to strengthen the country’s international economic promotion network, providing targeted and serviceoriented assistance for foreign direct investors while also facilitating international expansion

for Luxembourg-based companies. Digital innovation is a key aspect of that work, underpinning Luxembourg’s status as a high-performance business and industry hub. The agency falls under the auspices of Luxembourg’s Trade & Invest Steering Committee, which is chaired by the Ministry of the Economy, and coordinates with various government entities to fulfil its economic promotion, prospection and trade mandates.

Luxembourg Trade & Invest works with a wide range of industries to accelerate digital transition strategies, strengthen collaborative

networks and showcase expertise. It conducts training sessions across the digital spectrum, from AI, blockchain and cybersecurity to UX and virtual reality. It helps companies to chart a digital innovation roadmap to unlock growth and efficiency. The agency has also introduced a novel range of “test before invest” services that enable businesses to finetune their skills before presenting their case before investors. The CFI.co judging panel announces Luxembourg Trade & Invest as the 2024 award winner for Digital Economy Investment Champion (Europe).

> LUXEMBOURG TRADE & INVEST: DIGITAL ECONOMY INVESTMENT CHAMPION EUROPE 2024

74

CFI.co | Capital Finance International

Spring 2024 Issue

> BAKER TILLY BURJ FINANCE: BEST INVESTMENT BANK MOROCCO 2024 In the competitive landscape of Moroccan investment banking, Baker Tilly Burj Finance stands out for innovation and excellence.

As an independent entity within the Baker Tilly Morocco network, the firm has cemented its position by offering bespoke and comprehensive corporate finance solutions. Specialising in mergers and acquisitions, financial restructuring, investment advisory, and more, Baker Tilly Burj Finance has become synonymous with robust and insightful financial strategies that propel businesses forward.

The essence of its success lies in a deep-seated understanding of market intricacies, combined with the agility to craft and implement customised solutions that transcend conventional financial approaches. This independence not only allows for unparalleled confidentiality but also ensures that the advisory is genuinely objective, catering precisely to the unique

needs and strategic goals of clients.

Commitment to excellence is further exemplified by its contribution to raising more than 10 billion MAD for clients across various sectors, demonstrating a formidable and truly impressive presence in the industry. The affiliation with the Baker Tilly International network expands its reach and resource pool, enhancing the capability to support clients on both a local and global scale.

Through a culture that robustly prioritises excellence, innovation, and unwavering professional ethics, Baker Tilly Burj Finance has indubitably shaped the Moroccan investment banking sector. It is this distinctive blend of local expertise and global reach, underpinned by a commitment to tailor-made financial solutions, that rightfully earns Baker Tilly Burj Finance the 2024 award Best Investment Bank (Morocco).

> GHANA INVESTMENT PROMOTION CENTRE (GIPC): BEST INVESTMENT PROMOTION AGENCY AFRICA 2024 Ghana, with a population of 32 million, has a rich culture, abundant resources (including a talented diaspora) and great potential for investment. The President speaks of his country’s sense of urgency and purpose.

Ghana wants to be wholly self-reliant and seeks investment partners for its journey.

Housing the headquarters of the African Continental Free Trade Area, Ghana represents a gateway to the continent. The country is very much worth considering as an investment destination according to the judging panel which points to its “world-class industries, focused industrialisation drive, and determination to be a truly businessfriendly destination”. The GIPC website provides testimonial videos from investors that know this to be true. GIPC is building bridges with the Ghanaian diaspora to excellent

effect (and last year launched promising trade missions to the Caribbean). The centre is congratulated on creating closers ties with other African countries via the Association of African Promotion Agencies (which is likely to result in a brighter future for all).

CEO Yofi Grant has been re-elected to the steering committee of the World Association of Investment Promotion Agencies, (representing Africa for a third term). The panel congratulates GIPC not only for showcasing Ghana, but also for significantly raising the profile of other African investment opportunities. GIPC activities represent an effective drive for economic development and growth. The panel is delighted to confirm Ghana Investment Promotion Centre (GIPC) as 2024 winner of the award Best Investment Promotion Agency (Africa).

> CAISSE RÉGIONALE DE REFINANCEMENT HYPOTHÉCAIR (CRRH-UEMOA): BEST AFFORDABLE HOUSING SOLUTIONS WEST AFRICA 2024 Caisse Régionale de Refinancement Hypothécair (CRRH-UEMOA) deserves to be praised for assisting low-income residents in the West African Economic and Monetary Union in finding good, inexpensive housing. Every year, an additional 250,000 units are required due to population growth and rapid urbanisation. A World Bank project to address commercial banks' inadequate long-term financing choices is helping CRRH-UEMOA improve access to affordable homeownership across the region. CRRHUEMOA effectively boosted its capital resources by attracting new investors in regional and international bond markets. These additional funds enable CRRHUEMOA to offer mortgage loans to commercial banks at highly competitive rates. As a result, banks can offer customers inexpensive mortgages with prolonged repayment durations. The impact is apparent to all, with more than 12,000 West Africans becoming

proud homeowners. The panel of judges said: "The happiness expressed by families whose situations have improved so dramatically after acquiring homes with far less financial burden and significantly fewer worries than before is truly wonderful."

Furthermore, CRRH-UEMOA's commitment to affordable housing has resulted in significant job development in the construction industry, amplifying its positive influence throughout the region. Thus, Caisse Régionale de Refinancement Hypothécaire, backed by a game-changing World Bank project, is profoundly improving West Africa's affordable housing sector. Their tireless efforts to overcome financial barriers have transformed countless lives and strengthened communities. The panel confirms Caisse Régionale de Refinancement Hypothécair (CRRH-UEMOA) as 2024 winner of the award Best Affordable Housing Solutions (West Africa).

CFI.co | Capital Finance International

75

> QNB ALAHLI: BEST SME BANK AND BEST RETAIL BANK EGYPT 2024

Digital innovator QNB ALAHLI is Egypt’s secondlargest private sector bank. As an integral part of the QNB group, which ranks among the largest financial institutions in the Middle East and Africa, the bank levers the expertise and reach of its parent company to accelerate financial inclusion and prosperity throughout the country. Retail clients rely on QNB ALAHLI’s comprehensive suite of services and products to make the most of their money. In addition to life insurance, it offers a range of checking and savings accounts as well as loans and credit facilities. The bank partners

with Visa to issue debit cards, credit cards as well as prepaid cards and wristbands. It has developed programmes designed to encourage entrepreneurship and support women’s financial independence. QNB ALAHLI’s Hayat programme bundles banking products and non-financial services to help women take control of their finances, build business skills and provide for their families. The programme offers a maternity break for up to three months of postponed loan instalments and free insurance coverage against breast cancer. Professionals appreciate the

bank’s strong SME offering, which entails various electronic banking avenues, payments processing, payroll management, leasing and factoring. The bank’s Nilepreneurs programme connects young innovators with the resources needed to transform aspirations into reality, including feasibility studies, financial analyses, licensing assistance and networking opportunities. The CFI.co judging panel congratulates QNB ALAHLI — a repeat programme winner — on claiming the 2024 awards for Best SME Bank and Best Retail Bank (Egypt).

> RIYAD CAPITAL: BEST WEALTH MANAGEMENT TEAM SAUDI ARABIA 2023

Riyad Capital commenced operations in 2008 as a closed joint stock company. The investment firm is a fully owned subsidiary of Riyad Bank — one of the largest financial institutions in Saudi Arabia — and pulls from the expertise of its parent company to tailor investment solutions according to each client’s needs.

Riyad Capital offers a diversified range of products, including public and private funds as well as discretionary portfolio management.

It helps investors navigate the wide world of equity, fixed income and money market funds.

The firm specialises in IPO preparation and international brokerage, providing exceptional service to spur organisational growth while creating value for institutional investors and shareholders alike. Riyad Capital works with clients to enhance the savings and returns of their employees. It also enables investors to turn property into profits through carefully curated REIT products. The firm stays on top of market trends to anticipate change, seize opportunities and mitigate risks. Riyad Capital is licensed by the Saudi Arabian Capital Market

Authority and provides investors with access to 15 assets in the US and Europe. The Saudi firm recruits seasoned professionals with extensive market experience and maintains a pipeline of fresh graduates who undergo inhouse training to meet Riyad Capital’s exacting standards.

Future endeavours will focus on preparing novice investors to capitalise on innovations in the technology field. The CFI.co judging panel announces Riyad Capital as the 2023 award winner for Best Wealth Management Team (Saudi Arabia).

Fujairah, the fifth largest UAE emirate has a relatively low population. Visitors remark on its beautiful, rugged landscape and sandy 70km coastline.

It boasts a business-friendly environment. In business since 1982, the National Bank of Fujairah (NBF) offers impressive full service corporate banking solutions which contribute close to half its profits. In 2003, the Bank was one of the first in the country to offer a dedicated SME business unit. According to the judging panel, “NBF fully understands the critical role

of SMEs in supporting the local economy and is their champion, levering all necessary banking expertise to provide a perfect partnership”.

The Bank goes to great lengths to understand customer needs and delivers.” Skilled SME relationship managers are available throughout the UAE and expert team members are on hand.

The SME lending book has increased significantly over the years. NBF Connect, a digital platform, unlocks a treasure trove of business services to SMEs. An NBF partnership with Etihad Credit

Insurance brings clients risk mitigation, credit solutions and cash flow assistance. A co-lending scheme involving Emirates Development Bank helps SME funding. The biggest corporates and other UAE business leaders are no strangers to NBF. Its highly professional business and tech teams are at the disposal of clients. There is a clear focus on innovation and modern technology at NBF which bodes well for the future. National Bank of Fujairah (NBF) takes the 2024 award Best Business Banking Solutions (UAE).

> NATIONAL BANK OF FUJAIRAH (NBF): BEST BUSINESS BANKING SOLUTIONS UAE 2024

76

CFI.co | Capital Finance International

Spring 2024 Issue

> APPLIED SCIENCE PRIVATE UNIVERSITY

MOST INNOVATIVE COMMUNITY IMPACT RESEARCH UNIVERSITY MIDDLE EAST 2024 Applied Science Private University's innovative approach to community impact research has significantly contributed to its recognition as a leading institution in the Middle East. The Jordanian university's focused research initiatives address pressing regional and global challenges, engaging with a wide array of stakeholders to deliver practical solutions and sustainable outcomes. Its projects span diverse fields such as renewable energy, water resource management, and public health, reflecting a deep commitment to societal welfare and environmental

sustainability. Through collaborations with local communities, government bodies, and international organisations, the university has not only enhanced the applicability of its research but also ensured it drives tangible benefits for society. The integration of community feedback into research processes further illustrates its inclusive approach, ensuring that the projects are both relevant and impactful. This strategy has not only fostered community development but also positioned the university as a hub for pioneering research in the region. The commitment to using

research as a tool for social change is a hallmark of Applied Science Private University's mission.

The efforts of the university in this important field have been noticed with appreciation by the CFI.co judging panel over the years. The panel considers that this centre of academic excellence has been a trailblazer in motivating other bodies to improve their performance in advancing academic and scientific research. Applied Science Private University is our 2024 award winner and named Most Innovative Community Impact Research University (Middle East).

DIGITAL TRANSFORMATION LEADER IN HIGHER EDUCATION MIDDLE EAST 2024 Applied Science Private University has been a pioneer in digital transformation within the Middle East's higher education sector. Its comprehensive digital strategy encompasses innovative teaching methodologies, state-ofthe-art learning technologies, and a robust digital infrastructure that supports both faculty and students. The university's investment in advanced learning management systems and digital research tools has greatly enhanced the quality of its educational offerings. By integrating artificial intelligence and data analytics into operations, it has improved

academic outcomes and operational efficiency.

These technological advancements have not only enriched the learning experience but also prepared students to thrive in a digital-centric world. Moreover, the university's proactive approach to online education, particularly during challenges such as the COVID pandemic, demonstrated its capacity to adapt and lead in times of crisis. This commitment to embracing and leveraging digital innovations continues to set Applied Science Private University apart as a leader in transforming education through technology. The judging panel congratulates

this university for responding to the critic developments in cybersecurity and cloud computing (a dedicated department was created in 2021/22). This came in response to the high rates of cyber-crime and associated hacking risks. According to the judging panel, “The quality of work coming out of this department is exemplary. This initiative will equip a generation to better protect itself from security breaches and vulnerabilities.” Applied Science Private University in Jordan rightly earns the accolade Digital Transformation Leader in Higher Education Middle East 2024.

BEST UNIVERSITY INTERNATIONALISATION STRATEGY MIDDLE EAST 2024 Applied Science Private University in Jordan has established a formidable and truly impressive presence in higher education internationalisation in the Middle East. With a comprehensive approach to embedding global perspectives into its curriculum, the university has not only attracted a diverse student body but also fostered numerous international collaborations.

These initiatives have significantly enhanced its academic offerings and research opportunities, thus broadening the educational horizons for its students. Its strategic partnerships with universities and research institutions across

various continents have facilitated a robust exchange of ideas, resources, and cultural insights, contributing markedly to the global competence of graduates. Furthermore, the university's dedication to providing international students with a supportive and inclusive learning environment exemplifies its commitment to global education standards. The active participation in international conferences and symposia underscores its endeavour to remain at the forefront of global educational trends. By effectively leveraging technology and cultural exchange, Applied Science Private University CFI.co | Capital Finance International

has not only enhanced its own prestige but also enriched the academic landscape of the Middle East. The judging panel applauds this university’s insistence on being a “home away from home” for its international students. It is committed to making Applied Science Private University the first choice for these young people. Students and faculty are exposed to best international academic practice and there is a clear focus on diversity and inclusiveness.

Applied Science Private University is worthy winner of the 2024 award Best University Internationalisation Strategy (Middle East).

77

> KRUNGTHAI BANK PCL: BEST SOCIAL IMPACT BANK THAILAND 2024

Established in 1966, Krungthai Bank PCL set out to support the economic development of the country and is dedicated to improving the financial and social wellbeing of the population. The Bank has become part of the daily life of the Thai people.

It is eager to improve the competitiveness of the country, help reduce inequality and conduct business in an ethical and sustainable manner.

The Bank’s current five-year plan calls for improved accessibility for grassroots customers and encourages staff members to adapt and learn new skills. Innovative modern technology

harnessed by Krungthai addresses customer needs and is helping to raise standards of living.

The Paotang App serves not only customers but the broader population too. Open architecture allows partners to integrate their offerings into the platform. Significantly, Paotang helps government deliver financial and economic stimulus packages. The Health Wallet in Paotang provides easier access to universal healthcare for citizens. The App is democratising investment opportunities. Krungthai supports government initiatives in public services. Our winner is

committed to financial inclusion, with particular concern for the elderly, disabled and those of low income. It promotes financial literacy and best financial practice for customers. The judging panel remarks that, “Krungthai is dedicated to establishing a circular economy, recognising the benefits accruing to people, the planet and profits. Its strategy is well thought out and beautifully expressed.” A repeat winner over many years, the panel has no hesitation in confirming Krungthai Bank PCL as 2024 winner of the award Best Social Impact Bank (Thailand).

> BANK ONE LIMITED: BEST CUSTODIAN BANK INDIAN OCEAN 2024

Bank One Limited, a Mauritian commercial bank established in 2008 through a joint venture between CIEL Finance Limited and Kenya's I&M Group PLC, leverages its significant presence in sub-Saharan Africa to diversify and broaden its client base into regions including Madagascar, Kenya, Tanzania, Rwanda, and Uganda, positioning Mauritius as a burgeoning private wealth hub for the continent. With a robust custodian network that spans over 50+ countries and Euroclear as its main depository, the bank provides clients —

ranging from individuals to financial institutions — with unparalleled access to expert insights on both local and international levels, ensuring the safety of securities and assets off-balance sheet while utilising Euroclear's high credit ratings for secure settlements. In 2023, Bank One's Private Banking & Wealth Management recorded a landmark year. Its B2B custody platform, initiated in 2017, has significantly boosted the bank's assets under management to over one billion USD, supported by expansions

and new partnerships leading regional financial institutions. The bank places a high value on its experienced team and strong cross-border partnerships, continuously driving forward digital innovation in its services, exemplified by its cutting-edge custody portal which offers instant reporting and real-time pricing through Bloomberg. The CFI.co Judging Panel congratulates Bank One Limited on winning the 2024 award for Best Custodian Bank (Indian Ocean).

> LOITA CAPITAL PARTNERS: PIONEER IN AFRICAN FINANCIAL MARKETS INDIAN OCEAN 2024

Loita Capital Partners, with its strategic base in Mauritius, commands a formidable and truly impressive presence in the landscape of African financial markets. Established in 1992 and operational by 1993, this company has cemented its reputation over three decades as a leading force in investment banking specifically tailored for African businesses. Loita Capital Partners offers a comprehensive array of services including debt and equity financing, mergers and acquisitions advisory, and venture capital initiatives. Its focused expertise spans vital sectors such as 78

healthcare, media, agriculture, transportation, energy, and information technology, all of which are pivotal to the continent's development objectives. The firm’s influence extends across the African continent with operational offices in key regions, ensuring a broad and impactful reach. Moreover, Loita’s strategic emphasis on industries like healthcare, agriculture, and energy not only underscores its commitment to fostering regional development but also aligns seamlessly with the broader goals of economic empowerment and sustainability in Africa. According to the CFI.co | Capital Finance International

judging panel, “The future appears robust for Loita Capital Partners as it plans to expand operations into West Africa, a move that promises to enhance capabilities and extend its impact even further.” This expansion strategy is poised to leverage the company's extensive experience and deep-rooted understanding of the unique dynamics of the African financial landscape.

Such strategic and targeted growth initiatives are what distinguish Loita Capital Partners and provide the reason for the 2024 award Pioneer in African Financial Markets (Indian Ocean).

Spring 2024 Issue

> NCB CAPITAL MARKETS: BEST INVESTMENT BANKING SOLUTIONS CARIBBEAN 2024

NCB Capital Markets provides investment products and services for institutions and individual clients.

This firm is one of the major stockbrokers in Jamaica and offers outstanding wealth advisory and asset management services.

Off-shore facilities are available via related companies in the Cayman Islands. Core values include transparency, client satisfaction, team entrepreneurism, and respecting the dignity of all clients. The efficient geographical spread of activities, and depth of understanding is quite amazing. The Trinidad office also handles

the firm’s business in the Dutch Caribbean.

Similarly, the Guyana office reaches out in South America. In each hub it operates, NCB Capital Markets has been responsible for major transactions. No other financial institution in the Caribbean can lay claim to a more impressive record. The firm has developed capabilities to operate at every layer of capital markets, often in contrast to the competition. NCB Capital Markets sponsors major industry conferences in Jamaica, Trinidad, and Guyana. The Guyan gathering – in October 2023 – was the first such

conference to be held in that country. With its leading role in Caribbean capital markets, the firm’s presence ensures greater sophistication, improved overall efficiency and commendable transparency. In an often-troubled world, the stability of the Caribbean is a key factor in the success of our winner. The firm, which has such a secure hold on English-speaking Caribbean will be seeking further growth in South and Central America. NCB Capital Markets receives the 2024 award Best Investment Banking Solutions (Caribbean).

> CORPORACIÓN ZONA FRANCA SANTIAGO

OUTSTANDING CONTRIBUTION TO THE ECONOMIC DEVELOPMENT DOMINICAN REPUBLIC 2024 Corporación Zona Franca Santiago (CZFS) is a cornerstone of the Dominican Republic's economic success. It has made significant contributions to the economy, creating employment, attracting foreign investment, and boosting exports. CZFS provides thousands of jobs for Dominicans across numerous industries. The free zone fosters a diverse business environment, attracting companies from numerous sectors, leading to a wide range of opportunities. By providing training programmes and encouraging a skilled workforce, CZFS empowers Dominicans to contribute to the economy. CZFS plays a

crucial role in attracting foreign investments.

The free zone's attractive incentives, combined with world-class infrastructure and services, make it ideal for international businesses. This influx of foreign investment injects significant capital into the economy, contributing to overall growth and development. Companies operating within CZFS contribute substantially to the Dominican Republic's export sector. The free zone's streamlined regulations and efficient logistics infrastructure are exemplary. CZFS helps generate valuable foreign exchange earnings and positions the Dominican Republic

as a significant player in global trade. CZFS serves as a model for sustainable industrial development and is a catalyst for prosperity.

The judging panel congratulates our winner on its 50th anniversary. Founded in 1974, CZFS stands as a testament to the vision of those who saw the potential to establish a thriving industrial hub. Its journey has been marked by outstanding transformation and remarkable resilience. Corporación Zona Franca Santiago wins the 2024 award Outstanding Contribution to the Economic Development (Dominican Republic).

BEST ESG INDUSTRIAL FREE ZONE LATAM & CARIBBEAN 2024 Corporación Zona Franca Santiago (CZFS) is a trailblazer, encouraging good Environmental, Social, and Governance (ESG) practices within Latin America and the Caribbean's industrial free zones. The judging panel applauds the CZFS commitment to sustainability, noting many worthy initiatives in environmental protection, social responsibility, and ethical governance.

CZFS prioritises responsible waste management through efficient programmes for recycling and proper disposal. It actively promotes energy efficiency by encouraging tenant companies to adopt sustainable practices and make use of

renewable energy sources. Additionally, it invests in green infrastructure projects such as parks and water conservation measures, fostering a healthier environment for employees and the surrounding community. Our winner fosters a positive social impact through its commitment to employee wellbeing, is dedicated to worker safety with robust training programmes and CZFS adheres to strict safety regulations. CZFS supports initiatives for community development, promoting education and healthcare access in the surrounding areas.

CZFS upholds strong ethical principles in its operations, ensuring transparency through clear CFI.co | Capital Finance International

communication with stakeholders and adherence to international regulations and best practice. A commitment to fair labour practices ensures a positive working environment for all employees within the free zone. By proactively addressing ESG concerns, CZFS attracts environmentally and socially conscious businesses, solidifying its position as a leader in sustainable industrial development within Latin America and the Caribbean. The judging panel commends Corporación Zona Franca Santiago and confirms the 2024 award Best ESG Industrial Free Zone (LatAm & Caribbean).

79

> AFGHANISTAN INTERNATIONAL BANK: BEST CORPORATE GOVERNANCE AFGHANISTAN 2023

Afghanistan International Bank (AIB), Afghanistan's premier financial institution, is the country's largest bank by assets and continues to excel in profitability and liquidity. AIB's mission is to promote economic development, foster growth, and contribute to the prosperity of Afghanistan and its people. Given the challenges the country has faced in recent years, AIB's strong corporate governance has been essential in ensuring compliance with international best practices for financial institutions, exceeding regulatory requirements, and enabling the bank to maintain global financial relationships while providing essential services to the people

of Afghanistan. In 2023, AIB's compliance and governance culture allowed it to sustain its business relationships, retaining direct correspondent bank relationships, and facilitating critical imports and humanitarian aid transfers. The bank also strengthened its compliance measures, adding new modules to its Financial Crime Compliance Management System, enhancing anti-money laundering and cybersecurity protocols, and introducing a new Regulatory Compliance Unit to ensure alignment with domestic and international obligations. AIB's commitment to digital solutions and technology has resulted in

outstanding cybersecurity infrastructure, with key certifications such as ISO 27001 and the Payment Card Industry Data Security Standard (PCI), ensuring robust protection of data and processes. AIB's continuous efforts in risk management, compliance, and governance contribute significantly to Afghanistan's economy, demonstrating a commitment to best practices and a focus on fostering sustainable growth. The judging panel congratulates Afghanistan International Bank as a distinguished repeat winner over the years and confirms their 2023 award Best Corporate Governance (Afghanistan).

> XM.com

OUTSTANDING GLOBAL FOREX BROKER XM.com, an acclaimed online broker, specialises in forex and CFD trading on stocks, commodities, indices, metals, and energies. Established with a commitment to providing superior trading solutions, XM.com has consistently expanded its global reach and technological prowess, setting benchmarks in the industry. Its platforms offer comprehensive trading tools, real-time market analysis, and access to global financial markets.

Notably, XM.com supports diverse trading strategies and caters to a wide range of traders, from novices to experienced professionals. It does so by offering flexible account types, tight

spreads, and no re-quotes. According to a highly impressed awards judging panel, “XM.com’s dedication to providing innovative educational resources underscores a commitment to client empowerment and trading excellence.

Furthermore, as a broker regulated by multiple financial authorities, XM.com maintains stringent compliance standards, ensuring reliability and trust.” Its user-friendly online platforms are designed for optimal trading efficiency, and they are equipped with advanced security measures to safeguard trader information and funds.

The continuous and dedicated investment in

customer support and platform technology illustrates XM.com’s leadership in adapting sensitively and promptly to the dynamic needs of global trading environments. Its strategy not only enhances user experience but also strengthens its reputation as leader in the competitive forex brokerage landscape. 2023 saw XM.com maintaining a robust growth trajectory, affirming their position as a significant player in the global market. Reflecting on these achievements and market impact, the panel concludes that it is evident why XM.com has earned recognition in 2024 as Outstanding Global Forex Broker.

OUTSTANDING CUSTOMER SERVICE GLOBAL 2024 The pursuit of outstanding customer service lies at the heart of this broker’s offering. XM.com stands as a prominent online trading broker offering extensive resources in forex and CFDs on stocks, commodities, indices, metals, and energies. Renowned for its technological innovation and client-centric approach, XM.com provides a trading environment that is both supportive and efficient, prioritising customer satisfaction. Its commitment to customer service is reflected in XM.com’s 24/5 availability, providing traders around the globe with constant support through live 80

chat, email, and by phone. The multilingual support team is trained to address a variety of issues promptly and accurately, ensuring a seamless trading experience for all its users.

XM.com has developed a reputation for resolving queries and providing market insights and technical support, thereby enhancing the trading capabilities of all clients. It offers tailored educational materials aimed at enriching traders' knowledge and skills, further supporting a strategy of fostering informed and confident traders. This approach is not only about addressing immediate customer needs CFI.co | Capital Finance International

but also about building long-term relationships based on trust and transparency. XM.com’s dedicated efforts in service improvement are continually recognised by the trading community, reflecting its commitment to excellence and client satisfaction. XM.com's robust framework for client support has set a standard in the industry, leading to a consistent increase in client retention and satisfaction. The 2024 award of Outstanding Customer Service (Global) to XM.com is a further testament to its unwavering dedication to clients and an exemplary service-first philosophy always.

Spring 2024 Issue

> BARROW HANLEY: BEST GLOBAL VALUE INVESTMENT PARTNER US 2024 Founded in 1979, Barrow Hanley delivers competitive performance based on a singular focus of value investing.

It partners with corporate clients and institutional investors to execute their vision and achieve their financial objectives. It relies on principled practices and 50-person team of dedicated investment professionals dealing with clients around the world including Asia, Africa, Australia, US, and Europe.

The US investment firm is globally active, with 14 value equity strategies and 14 fixed-income strategies delivering proven performance. As of March 2024, Barrow Hanley stewards clients’ capital to the tune $51.6b in AUM. On the equity side, Barrow Hanley prioritises value stocks of companies, focusing on US, global and emerging market equities across all capitalisations. The firm

launched its first ESG-driven strategy in 2017.

The fixed-income portion of its portfolio comprises corporate bonds, treasury inflation protected securities, mortgage securities and alternative US government issues with intermediate and long-term turnaround. It backs assets with the potential to produce higher returns with lower volatility. Barrow Hanley favours a bottom-up approach to portfolio management that’s strengthened by fundamental and quantitative analysis and benchmarked against major indices. The firm’s investment universe spans multiple sectors, including credit-focused vehicles and customised investment solutions. The CFI.co judging panel presents Barrow Hanley with the 2024 award for Best Global Value Investment Partner (US).

> LA TROBE FINANCIAL: BEST INVESTMENT MANAGEMENT TEAM AUSTRALIA 2024 With AUM of A$18bn, this highly disciplined investment team ensures that La Trobe Financial maintains, with distinction, its position as one of Australia’s dominant asset managers. The firm traces its legacy back over seventy years and has funded customers to the tune of A$34bn. Its investors include major institutions, the big domestic banks, family offices, high net worth individuals and retail investors. The team operates the largest retail credit Fund in Australia which recently passed the A$10bn milestone. La Trobe Financial, passionate about ESG, is committed to safer communities, creating employment, and serving the underserved.

Its values are trust, excellence, accountability, and making a difference. On 1 December 2023, La Trobe Financial announced its new global asset management strategy, designed to bring the best of the world’s alternative investment opportunities to Australian investors. The first global product

to launch was a US Private Credit strategy with Morgan Stanley. “We worked very closely with Morgan Stanley over the last two years in designing this strategy, ensuring we are getting it right for Australian investors “. According to CIO, Chris Paton, “the strength of our distribution footprints and asset management operations are recognised globally, reflected by this tremendous award, our partnership with Morgan Stanley and the growing number of our global asset management counterparts seeking to work with us in Australia.”

La Trobe Financial is known for its quality offerings and Paton is always happy to be on the road talking to investors and advisors. The CFI.co judging panel comments that, “year-by-year, this outstanding repeat winner has a great story of tell of exciting new developments.” Without hesitation, La Trobe Financial takes the 2024 award for Best Investment Management Team (Australia).

> AIA INSURANCE LANKA LIMITED: BEST LIFE INSURANCE COMPANY SRI LANKA 2023 AIA Sri Lanka is part of AIA Group which has a history of over 100 years of helping people live healthier, longer, better lives. In Sri Lanka the company has been delivering on this promise for over three decades and has established itself as one of the leading life insurers in the industry.

We have a strong distribution network covering the entire island, employ over 4,300 Wealth Planners and operate over 120 branches. We are also the pioneer in Bancassurance in the country and work with some of the leading banks, further expanding our distribution network. Backed with AIA Group’s strength and expertise, we are committed to staying in and growing in Sri Lanka and helping you live healthier, longer, better lives.

While providing protection to customers at every stage of their lives, AIA offer a wide range of retirement, health and savings solutions for individuals, large corporates and small & medium enterprises. The product suite is designed and enriched by the understanding and experience acquired in hundred years of experience in Asia. AIA believes that helping to create a healthier Asia is one of the most important

and valuable things for the communities, today and in the future.

The company is credited with numerous pioneering achievements in Sri Lanka. AIA Insurance Lanka is leading the industry’s digital transformation with cloud-based processing, automation, digital signatures and data analytics. AIA Sri Lanka’s strongly capitalised shareholder’s equity — LKR 24.7 billion as at the end 2023 — gave the company the strength and stability to withstand any risks while continuing to honour customer commitments. Its high-quality portfolio and prudent investment strategy helps to maintain a solid fiscal footing. CSR initiatives in 2023 included donations to underprivileged children, donations to the SL Cancer Society and Alzheimer’s Foundation, donations to animal charities educational scholarships, community safety programmes and foster-parenting programmes. AIA Insurance Lanka has been recognised in numerous awards programmes over the years — and the CFI.co judging panel adds to the accolades with the 2023 award for Best Life Insurance Company (Sri Lanka).

CFI.co | Capital Finance International

81

> GALLAGHER RE: BEST REINSURANCE BROKER GLOBAL 2023

It’s been about two years since Gallagher Re closed on the acquisition of Willis Towers Watson’s treaty reinsurance business and since then, the business has gone from strength to strength. The deal resulted in one Gallagher Re with more than 70 offices across 31 countries, making it the third-largest reinsurance brokerage in the world. The past year has been spent in a comprehensive integration of systems, technologies and personnel — allowing the company to retain top talent, provide seamless client services and achieve double-digit growth.

Gallagher Re has maintained a workforce with

proven capabilities of closing strong transactions in turbulent times. The company takes pride in its people and the positive impacts generated from its activities. It brokered a parametric programme, covering the Moroccan non-insured population against the peril of earthquake, resulting in a loss estimate within 24 hours and a $275m payout within two weeks. Gallagher Re continues to be a trailblazer in the cyber sphere. It structured and launched the market’s first cyber catastrophe bonds for specialist insurer Beazley; $81.5M across three bonds in 2023 on a private-

agency basis (“Cairney”), then $140M in 2024 in underwritten-Rule 144A (“public”) format (“PoleStar Re”), which closed at almost double Beazley’s initial capital target (the largest increase of any cyber bond).” Gallagher Re is prioritising strategic advisory services to increase engagements with the underwriting side of clients’ business. The strategic reinvestment of free cash flow has set up the company for even more forward-looking and dynamic growth in the future. The CFI.co judging panel announces Gallagher Re as the 2023 global award winner for Best Reinsurance Broker.

> VECTOR CASA DE BOLSA: MOST INNOVATIVE FINANCIAL BROKER MEXICO 2023

This impressive broker dealer and wealth manager offers specialised products and services to institutional investors, companies, individuals, government, and foreign investors.

The talented Vector teams provide a highly personalised advisory. Ethical considerations are of paramount importance at Vector and its risk management is exemplary. Vector avoids conflicts of interest. According to the judging panel, “Vector Casa de Bolsa rates highly as an innovator by developing and making sound use of technological advances. The firm invests

heavily in AI which it believes to be of critical importance. Vector has a markedly cerebral approach, and its focus is on accuracy and precision, identifying trends and explaining the significance of global analytics. The firm’s products and services deliver world-class solutions”. Vector has received recognition from the financial industry, international award bodies and specialised publications. It is notable for having achieved several financial services “firsts” and is in the vanguard of its industry.

Vector’s numbers are impressive with mutual

funds nicely outpacing domestic industry averages. The firm has recorded pleasing growth in assets under management. The panel notes that, “Vector shows clear signs of achieving its vision to be a global benchmark for innovative financial solutions. We offer congratulations on its 50th anniversary, an occasion to reflect on some fine achievements. But we feel sure that Vector will spend more time looking to the future and planning further triumphs.” Vector Casa de Bolsa is 2023 winner of the award Most Innovative Financial Broker (Mexico).

> ASANTE CAPITAL GROUP: BEST GLOBAL PRIVATE EQUITY PLACEMENT ADVISORY US 2024

Asante Capital has advised on over $150bn in private capital raisings from worldwide institutional investors during the past two decades. This provides evidence of excellent results, extensive experience, and successful outcomes over a long period. 2023 was a year of strong progress too.

The business expects the 2024 market to be more competitive, innovative, and specialised.

Its view is that innovative liquidity solutions will drive further PE activity. Asante efforts are focused according to the needs of clients and 82

the market, irrespective of sector. Asante seeks talented entrepreneurial teams with good track records. It looks for long term relationships and works according to the motto “Performance without Compromise.” Offices in London, New York, Hong Kong, and Munich provide international reach and the ability to connect to investors wherever they may be. Asante is selective and limits the number of fund-raising activities underway at any one time. It invests heavily in training and staff development. New CFI.co | Capital Finance International

hires tend to grow with the team. The corporate culture is collegial, solutions-driven, and high energy. Staff report a strong work-life balance (with family coming first). The job can be a rollercoaster ride, but there is always respect and backup from colleagues. The future will be exciting and there is likely to be further expansion. The Asante aim is to be the best, if not the biggest. Asante Capital Group is winner of the 2024 award: Best Global Private Equity Placement Advisory (US).

Spring 2024 Issue

CFI.co | Capital Finance International

83

> Africa Rising:

The Continent of Unlimited Entrepreneurship The vast landmass is fairly bursting with opportunities and challenges that call for solutions-driven entrepreneurism.

84

CFI.co | Capital Finance International

A

frica, rich in history but full of diversity and sometimes adversity, is frequently associated with hardship and underdevelopment.

But a fresh wave of innovation is reshaping the continent's economy. Against all odds and obstacles, a thriving business spirit has taken root. African entrepreneurs are defying stereotypes, launching successful businesses, and using technology to solve challenges.

NIGERIA: THE GIANT Lagos, Nigeria's enormous megacity with an estimated population of some 20 million, is at the vanguard of Africa's tech revolution.

The sheer scale of its market spurs innovation in finance, e-commerce, and health-tech, which addresses long-standing concerns.

Success stories like those of Paystack (fintech), Flutterwave (payments), and Andela (tech talentdevelopment) demonstrate Nigeria’s potential.

The country’s business drive came from necessity. Gaps in traditional sectors served as springboards for start-ups to develop solutions tailored to African environments. A young, techsavvy workforce drives this expansion, while government initiatives and the rise of incubators and accelerators foster the ecosystem.

Nigeria shows how a combination of resource limits and unlimited ambition create a fertile business environment.

KENYA: INNOVATION FRONTRUNNER Kenya, sometimes known as "Silicon Savannah", has solidified its place on the African innovation map.

Nairobi serves as a regional hub, attracting talent and investment. M-Pesa, a pioneering mobile money system, demonstrated the latent potential. Kenyan companies are currently thriving in sectors such as agriculture, logistics, and healthcare, addressing difficulties specific to the region.

Kenya advantages come from extensive mobile penetration and early adoption of technology, allowing solutions to have a broad influence on its populace. The government recognises innovation as an economic driver, which fosters a favourable climate for entrepreneurs. Kenya's emphasis on digital infrastructure, and its competent workforce, have created a favourable environment for rapid expansion.

RWANDA’S DISRUPTIVE SPIRIT Rwanda, with its grim history and inspiring story of reconstruction, is an active environment for entrepreneurship. Its capital, Kigali, has been lauded as "Africa's Singapore", encouraging innovation and embracing digitalisation. Kigali Innovation City developed clusters filled with innovative firms, attracting talent and investment.

Rwandan entrepreneurship is motivated by solving local problems – often with a global 86

"Kenya advantages come from extensive mobile penetration and early adoption of technology, allowing solutions to have a broad influence on its populace. The government recognises innovation as an economic driver, which fosters a favourable climate for entrepreneurs.

Kenya's emphasis on digital infrastructure, and its competent workforce, have created a favourable environment for rapid expansion." perspective. Healthcare, renewable energy, and agritech firms are promoting sustainable development. Rwanda's innovative leadership and commitment on developing a businessfriendly climate position it for future success.

SOUTH AFRICA: THE GATEWAY As Africa's most developed economy, South Africa's established urban centres such as Johannesburg and Cape Town offer infrastructure and marketplaces for start-ups.

Its entrepreneurial landscape reflects the country's complex and troubled past, addressing social concerns while producing cutting-edge technological solutions. Areas such as healthtech, insurtech, and e-commerce are all growing.

South Africa has a highly educated workforce, universities that foster innovation, and a strong finance system. While the digital divide persists, South Africa serves as a hub for innovation, frequently with solutions adapted to the larger African market.

THE ESSENTIALS While success rates vary across the continent, some common threads connect African innovation.

• Entrepreneurs provide solutions that address unmet needs and infrastructural deficiencies.

• Pan-African ambitions: Businesses recognise the vast possibilities of a connected African market, rather than limiting themselves to national borders.

• Overcoming problems such as limited resources, intermittent power supply, and bureaucratic hurdles fosters a distinct type of resilience.

• Technology as a tool: Mobile technology, in particular, enables organisations to overcome old barriers and hasten development.

African entrepreneurs face challenges. Access to finance remains a big one for many, while unreliable internet connectivity and inadequate legal frameworks impede progress. But entrepreneurs' drive and innovation indicate growth potential.

With a greater emphasis on the use of technology to create social and environmental transformation, and as governments prioritise ease of doing CFI.co | Capital Finance International

business, the environment for Africa's start-up should soon boom.

EMERGING HOTSPOTS While some countries have received prominence, fascinating innovation clusters are sprouting throughout Africa.

Ghana's capital, Accra, has a thriving digital culture and government programmes that assist companies. Dakar, Senegal, is known for its fintech and e-commerce innovations.

Addis Abeba, Ethiopia, has a huge and young population, making it an ideal location for entrepreneurs. Kampala, Uganda, has a thriving start-up community focused on agriculture and renewable energy.

• TRENDS SHAPING THE FUTURE • AfCFTA: This ambitious pact seeks to establish a single pan-African market, so increasing intraAfrican trade and collaboration – and perhaps offering game-changing prospects for businesses.

• The continent's vulnerability to climate change will drive an increase in entrepreneurs focusing on renewable energy, resource management, and climate-smart agriculture.

• Female entrepreneurs are positioned to significantly contribute to Africa's economic progress through efforts focused on funding and mentorship.

• African diaspora are increasingly investing in and supporting companies in their home countries, offering finance and experience.

ENTREPRENEURIAL PROMISE Africa's entrepreneurial tale is one of tenacity, invention, and the desire for a better future.

The challenges are significant, but so are the opportunities. Africa's entrepreneurial spirit is unstoppable, thanks to a youthful, energetic population, increased awareness of market potential, and a willingness to confront difficulties.

The continent will not just follow established innovation patterns, but chart its own course.

An increase in solutions tailored to African reality is likely to disrupt industries around the world. Africa's start-up sector is more than just an economic narrative; it's about transformation, resilience – and a region ready to reshape the world's perception of its abilities. i

dPA 6544/A

Building a Sustainable Future From board diversity to biodiversity, climate risk to community

relations, Barrick’s commitment to managing sustainability effectively and responsibly has long been entrenched in its DNA and Barrick approaches it with the same diligence it applies to understanding its orebodies and accounts.

www.barrick.com | NYSE : GOLD • TSX : ABX Barrick Gold Corporation’s 18-country portfolio holds 14 gold mines, including six of the world’s Tier One operations as well as three strategic copper producers, all with long-term business plans based on declared resources.

> Is Your Hi-Fi Still Doing

All It Should to Keep You Happy?

From Edison's cylinder to modern wireless wonders: What has happened to sound systems in this digital age?

R

emember the crackling of a stylus on a vinyl LP? Or the warm glow of oldeworlde tube amplifiers that gave that such immersive quality to a tune?

These were the hallmarks of the Golden Age of hi-fi, when music was properly savoured as a delicacy. Today, it’s all about streaming, Bluetooth speakers, and on-demand access. In some ways, we’ve never had it so good. Remember trying to find an unscratched copy of Dark Side of the Moon, with silence where silence should be?

It was a quest, and now — sadly or not — that has become a thing of the past. How did it all change so quickly? Prick up your ears; we’re about to delve into the history of musical home entertainment, and the stereo systems that relayed it. Crackly here and there they may have been, but truerto-life and warmer in tone (say the connoisseurs) than our present aural landscape.

Have those coveted high-fidelity systems of yesteryear genuinely slipped into obscurity, or have they merely evolved to suit a new generation of music lovers? And — big question — has the pursuit of aural perfection ended, or simply skipped a beat?

THE GOLDEN ERA There was a time when music was more than just background noise; it was a soundtrack to our lives. Giving your fave “record” (note to Gen Z: a record, or LP, was like a primitive CD — if you even remember those...) a spin was a sensory experience to savour. And hi-fi was more than an abbreviation of “high-fidelity”; it was shorthand for equipment capable of sound reproduction that did justice to the original.

It wasn't — then, anyway — about portability or convenience; that came later, with the introduction of the Sony Walkman. Having a “real” hi-fi was an audiophile's dream, and many a person’s ambition; true aficionados would pay more for a stylus (needle) than others paid for their entire system. These beauties were made in, and for, simpler times: finely constructed components working together to create an immersive auditory voyage.

The desirable characteristics were: • Modular design, a step away from oldfashioned, all-in-one cabinets. Turntable, amplifier, pre-amplifier, tuner and speakers 88

all had a specific purpose, and were carefully designed to complement one another. This left room for true fanatics to customise their equipment to produce a soundscape adapted to their specific preferences.

• High fidelity — it’s more than a generic term. The ultimate system prioritised accurate, distortion-free reproduction across all frequencies. This entailed capturing (and then releasing into the atmosphere) the subtleties of each instrument, setting free all the richness and depth put into the grooves by your musical heroes and heroines. No tinny distortions or muddy bass, thank you.

• Optimised audio quality came via painstaking attention to all elements, from stylus to speaker cones. Materials, construction, and engineering were carefully considered — without thought of ever sacrificing sound quality. This focus resulted in unprecedented levels of detail and clarity, back in the day — and some say it has never been bettered, despite tech advances.

• Post-war prosperity increased disposable income in the mid-20th Century, and hi-fi systems were often the first purchase after a windfall.

Music has always been a symbol of status, culture and refinement, and nothing said that with more clarity than a high-quality sound system.

• Advances in technology — going back in time, remember, so we started out with things like valves and transistors — led to smaller and more affordable components. Quality sound was becoming more accessible.

• Vinyl records provided better sound quality than AM radio and less hiss than cassette tapes — although (now outdated) reel-to-reel tape gave a voluminous, pure sound. Vinyl led the way, of course, and the fragile black plastic discs allowed sound systems to be used to their full potential.

ICONIC BRANDS True audiophiles wanted equipment from marques such as Marantz; the Model 7 amplifier was said to have a distinctly warm tone, making it greatly sought-after. McIntosh amplifiers, including the famous MC275, are still renowned for their highquality construction and performance.

For some, it was all about the speakers — and if you were in with the in-crowd, you’d opt for KLH to put some boom in your box. The KLG Model Six provided high-fidelity sound at an affordable price point; Wharfedales were pricy, but greatly respected and rightly treasured. Tannoy speakers, such as the Monitor Gold, were also popular.

CFI.co | Capital Finance International

The typical Golden Age hi-fi was an agglomeration of brands and models, each part adding to a unique whole. Technology and trends have changed, but the legacies live on for those in the know.

THE STREAMING REVOLUTION Have services like Spotify or iTunes dethroned these grand old systems? Treasured vinyl certainly faded in the face of a digital threat — CDs — but it’s making a determined comeback. Online services have surely driven a fundamental shift in how we consume our musical pleasure.

Convenience reigns supreme: no more flipping through tightly packed albums in a store, or precisely calibrating the weight of the stylus to suit your record collection. Streaming has provided swift and direct access to millions of tunes — on any device. No more searching, no more constraints. But the apparently limitless libraries at our disposal have killed the pleasure of finding a rare record at a boot-sale or secondhand shop. This accessibility has been groundbreaking, though, and music consumption has been simplified, and personalised.

But what about the physicality? The pride of ownership that came with that big spend on a hifi... The faint crackle of vinyl, the ritual of curation; all these things have been replaced by ephemeral, but omnipresent, digital streams. Ownership, in this sense, has gone by the wayside. While some feel the loss of a tangible, physical connection, or collection, others appreciate the freedom and diversity of streaming. Today’s listeners literally have no limits; neglected masterpieces are a mouse-click away, as are those treasured tunes you grooved to as a youth.

Anyway, the tech story isn’t finished. Wireless speakers and smart-home integration have widened the split between tradition and modernity.

No unwieldy set-ups nowadays; sleek speakers, your mobile phone and a handful of apps are all you need. The distinction between hi-fi and casual listening has blurred somewhat, and convenience has trumped quirky charm.

CONSUMER BEHAVIOUR This revolution has changed not only how we listen to music, but how we interact with it. Concentrated listening sessions (in rooms curtained against outside distraction, and possibly sound-proofed

Spring 2024 Issue

for the neighbours) are over. Music has been woven into our everyday routines. Binge-listening to customised playlists is the norm, displacing focused appreciation of “special numbers”, as the individual tracks were once called.

So, where does this leave hi-fi in 2024? Is it a relic of a bygone age, a niche for audiophiles? Not at all. Old concepts have been influenced almost beyond recognition, but the desire for high-quality sound remains. And that point brings us to the next phase of our journey: the evolution of systems themselves...

EVOLUTION, NOT DEMISE Before anyone prematurely announces the death of hi-fi, let’s remember a key point: the yearning for superb audio quality will never fade. It adapts, evolves, and redefines itself. But while the systems and sources may have changed, the ethos of aural brilliance lives on. And finding it relies on new forms that have adapted to changing needs and lifestyles.

MP3s — initially notorious for glitching and poor reproduction — are no longer so highly compressed. FLAC, DSD, and MQA formats provide lossless (or near-lossless) output, capturing the nuances and subtleties of the original recording.

It’s not all about speakers, either. Headphones have come a long way from those fragile “Alice-bands” with foam pads for your lugholes. They now come with sophisticated drivers, noise-cancellation to cut out the neighbours or rumbling traffic, and personalised profiles. They’re affordable, too, and ideal for on-the-go audiophiles.

Despite the decline of component-based systems, quality remains a priority. High-end DACs, amplifiers, and speakers continue to push the limits of sound reproduction.

NICHE MARKETS Remember how popular hi-fi was in the mid-20th Century? Today, we find a similar phenomenon: niche markets catering to specific demands and preferences. From headphones fans looking for perfectly balanced audio characteristics to vinyl collectors after rare (and sometimes valuable) pressings, high-quality sound is still available, and rightly venerated.

It's not about the technology, anymore; it’s about the experience, and personalised listening.

Curated playlists can be conjured-up to suit any preference or mood, and spatial audio tech create immersive soundscapes — for movies, as well as music. We have in no way lost that meaningful connection.

So, the next time you hear someone dissing the days of hi-fi, remind them that it is still very much alive. The pursuit of perfection has merely taken on a new form to suit the digital age. Sonic joy is no longer limited to dedicated listening rooms, or headphone posts in record shops; it’s integrated into our lifestyles, and modified to our tastes.

Hi-fi has certainly evolved, but the spirit of old endures.

BUSINESS OPPORTUNITIES The changing tides of sound technology aren't simply influencing listening behaviour; they're producing a plethora of commercial opportunities.

The advent of high-resolution audio formats and affordable, high-end headphones and speakers creates opportunities to cater to a growing spectrum of modern music fans. Personalisation has been prioritised, and is appreciated by the masses: Streaming services can generate impressive incomes thanks to advanced features such as AI-powered artist or genre suggestions.

Integration with IoT systems enables seamless audio experiences in almost any circumstance.

Voice-controlled speakers — “Alexa!” — incorporate music into workdays, as well as offhours.

As listeners become more demanding, streaming services are prioritising audio quality as a fundamental distinction. Lossless formats, artistor genre-specific playlists and unique content collaborations help to attract new fanatics of sound — and retain the loyalty of their mums and dads.

Companies can, of course, use our data to better understand listening patterns, preferences, and trends. This may improve product development, marketing strategies, and personalised content recommendations. DACs, headphones and speakers can be tailored to meet the growing awareness of what is possible. Audio solutions that are AI-powered can cater for user-specific CFI.co | Capital Finance International

profiles. Many consumers are investing in spatial solutions such as 3D soundbars, and VR/AR tech is meeting the need for multi-sensory output.

Audio control systems seamlessly integrate with smart-home platforms.

For future trends, keep your ears to the ground, as well as to the speakers. AI-powered soundsynthesis can transform music compositions, with instant, real-time adaption to meet individual preferences. Biometric integration allows for tailored, immersive experiences based on emotions, and even physical and mental health needs. Multi-sensory experiences can include haptic features such as vibration — as well as odours, and even temperature changes. The line between real and virtual soundscapes is blurring.

Understanding the potential business ramifications allows entrepreneurs to position their firms to take advantage of the demand for goods, services, and experiences. So, pay attention to the sounds that increasingly surround you — and prepare to join the symphony of tomorrow.

From the crackle of vintage vinyl to the smooth flow of streaming, the evolution of sound has been fascinating. Hi-fi, formerly defined by componentry and sound reproduction, has evolved to incorporate ease-of-use and affordability. While traditional settings may have shrunk, the desire for high-quality audio endures.

Quality and convenience are no longer mutually exclusive. Streaming services provide immediate access to immense collections, whereas those in niche markets are happily catering to audiophiles looking for specialised equipment.

The future promises more personalised, and probably more immersive, experiences. AI will certainly be in the mix at one level or another.

A final thought: There is an unbroken demand for high-quality sound. It may take various forms, adapt to emerging technologies, and cater for changing habits — but the fundamental desire to have music in our lives is unlikely to diminish.

Just as the variety of instruments create an orchestra's sound, new tech and trends will combine to affect, and perfect, our musical lives for generations to come. i 89

> Beyond Oil

The Startup Surge in the Middle East It’s not all about the black stuff under the sand…

90

CFI.co | Capital Finance International

Spring 2024 Issue

CFI.co | Capital Finance International

91

T

he Middle East conjures up visions of desert sands and, in commercial terms, hidden reserves of oil.

But a surge of innovation is altering perceptions of the region. Fuelled by innovative administrations, a young and tech-savvy populace is emerging – with global ambitions.

The United Arab Emirates is where ambition meets opportunity. The UAE, particularly Dubai, has long been recognised as a global powerhouse for commerce and innovation. A forward-thinking administration devoted to diversification has fostered a favourable climate for entrepreneurs.

Dubai's infrastructure and quality of life make it a unique destination in many ways. The ultra-modern city draws tourists from all over the world, as well as talent. The melange has created a melting pot for bold ideas and limitless ambitions. Start-ups there have long been thriving in industries including the e-commerce, financial, logistics and tourism sectors.

Ambitious government-backed projects, such as Expo 2020, drive innovation and investment.

The UAE's location and identity as a literal and cultural bridge between East and West serves as a gateway for firms expanding into Asian and African markets.

This emphasis on connectivity and diversification has paved the way for sustained entrepreneurial growth in the region. Oil-rich it may be, but there is more to the Middle East than that.

SAUDI ARABIA’S VISION 2030 Saudi Arabia, the original oil powerhouse, is undertaking a dramatic transformation as part of its Vision 2030 programme. The goal is to lessen reliance on the crude oil that lies beneath it, diversify, and promote a knowledge- and talent-based economy.

Entrepreneurship is prominent in this plan, and the government has committed significant funds to foster innovation and exploration.

The emphasis is now on industries such as renewable energy, healthcare, and technology, which symbolise and bolster the country's transition to a sustainable future.

Saudi Arabia's huge market potential and abundance of available finance make it an appealing environment for start-ups.

Government-backed efforts establish hubs, offer mentorship, and reduce regulatory costs on new companies. While challenges remain, Saudi Arabia's goal heralds a new era of innovation in the kingdom and across the region.

FROM BAHRAIN TO QATAR Beyond the established leaders, a new wave of innovation hubs is rising throughout the Middle East.

92

"This emphasis on connectivity and diversification has paved the way for sustained entrepreneurial growth in the region. Oil-rich it may be, but there is more to the Middle East than that."

Bahrain, with a focus on fintech and progressive rules, hopes to establish itself as a startupfriendly destination.

Qatar's investments in education and future infrastructure have laid the groundwork for enduring, long-term entrepreneurial growth.

Egypt's enormous domestic market and young population present significant positives for the land once known mostly for its ancient pyramids. The economic landscape is becoming as visible as its links with history, notably in e-commerce and ed-tech solutions.

MIDDLE EASTERN ENTREPRENEURSHIP Despite its diversity, some trends in the Middle East connect the region's entrepreneurial mentality. Visionary leadership and direct funding have energised start-up ecosystems, with innovation and drive critical to diversification plans.

Youth is part of that. A young population yearning for change and opportunity fuels growth – as does a focus on impact. Many business leaders start out by addressing critical regional concerns, particularly those related to sustainability and resource management.

This is a region of ambitious visions. Middle Eastern entrepreneurs frequently aim above and beyond their local markets, creating the genesis of enterprises that can go on to develop globally.

THE FUTURE The Middle East's goal of diversification and economic transition is far from complete.

Entrepreneurs have additional challenges due to political, geographical and societal complications. However, the combination of government backing, a largely untapped talent pool, and a desire for alternative paths ahead creates a positive picture.

As the region evolves, a vibrant entrepreneurial ecosystem has the potential to reposition the Middle East in the global economic landscape.

The world will almost certainly see the birth of Middle Eastern digital behemoths, handling uniquely localised issues, while abetting, or undermining, some established sectors. i CFI.co | Capital Finance International

> Accenture: Embracing Cloud Based Operating Models

Five Actions for Organisations in the Kingdom of Saudi Arabia

By Omar Boulos Accenture’s Market Unit Lead in the Middle East

T

he Kingdom of Saudi Arabia (KSA)—the Middle East’s largest economy—has embarked on the cloud adoption journey later in comparison to other economies in the region. However, they have a historic opportunity at hand that they must not ignore. The KSA can establish unique benchmarks in cost competitiveness and innovation, building cloud-based operating models helping it achieve its goals enshrined under its Saudi Vision 2030 on time and with fiscal prudence.

What might a “digital first” country look like? The Kingdom of Saudi Arabia (KSA) envisions a future where its people—especially for the young—can live and thrive. One where transactions will be both seamless and secure, with an ecosystem of service providers offering everything from entertainment to education.

These and other goals have been laid out in the Saudi Vision 2030, an ambitious $3.3 trillionplan to pivot away from a dependence on oil and remake society in the process. Spanning major infrastructural projects and socioeconomic reforms, achieving the aims of Saudi Vision 2030 will require continuous innovation and prudent financial management, involving stakeholders across the globe collaborating and co-creating value.

A CENTERPIECE STRATEGY: CLOUD TECHNOLOGY Cloud-driven operating models will be a key enabler. Recognising this, the KSA has been strategically positioning itself as a cloud-friendly nation in the region over the last five years. In 2019, it launched the Saudi Cloud Strategy to promote the use of cloud computing, following up with the Cloud Computing Special Economic Zone in April 2023.

Moreover, forward-thinking regulatory policies— such as the Cloud Computing Regulatory Framework, the Cloud First Policy and the National Cybersecurity Authority’s Cloud Cybersecurity Controls—are paving the way for more widespread cloud adoption.

These policy changes have been backed up with government investments in key infrastructure.

In 2021, the Saudi Ministry of Communications and Information Technology (MCIT) launched a US$18 billion plan to build a network of largescale data centers across the Kingdom.

The growing commitment of the KSA to cloud computing is attracting investments from the 94

Author: Omar Boulos

world majors in this space. For example, in November 2023, the Google Cloud Region has been launched in Dammam. Research commissioned by Google Cloud and conducted

by Access Partnership estimates that this could potentially boost the country’s gross domestic product by $109 billion and generate 148,600 jobs between 2024 and 2030.

NOT JUST ANY CLOUD TECHNOLOGY Although the KSA may have embarked on its journey of cloud adoption later than other nations in the region, it now has a massive opportunity to set the benchmarks for efficient and responsible cloud operating models that drive innovation and cost-competitiveness.

The Cloud Continuum will provide organisations of all sizes involved in such mega infrastructure projects with an optimised, scalable, and agile platform, accelerating their digital transformation CFI.co | Capital Finance International

by integrating technologies such as AI, Big Data and analytics, and Internet of Things. These can only be built responsibly with a strong digital core bringing together applications, services and data via the cloud powered by green software and programming.

Done right, it will create a technology foundation providing workers a flexible way of accessing and creating value with their data at anytime, anywhere. Most importantly, it will do so without the cost burden that a physical function would require.

How can organisations in the KSA go about building operating models on the Cloud Continuum?

FIVE ACTIONS TOWARDS BUILDING CLOUD BASED OPERATING MODELS Recent research from Accenture, titled The

Spring 2024 Issue

Race to the Cloud, has five actions to offer organisations—both public and private—in the KSA: To begin with organisations must strategically pursue the full power of cloud as a force to drive total enterprise reinvention. They must prioritise use cases according to time-to-value and align investments with emerging business strategies.

Next, they must embrace cloud as a strategic enabler and adopt the right mix of capabilities and services across the Cloud Continuum.

They must recognise that a cloud operating model can only succeed with transforming people and processes in tandem—from ways of working to organisational cultures—to thrive in the Cloud Continuum.

Most importantly, to unleash value of your cloud investments they must incur equal or more spend on data and AI. With data excellence, cloud investments help carve out an important competitive edge. And with right insights across the enterprise, organisations innovate value with speed.

Mastering and optimising cloud economics is essential. This requires not only transparency and oversight, but also shifting the conversation from cloud-cost to cloud-value.

Leading companies across key industries such as banking are already putting these lessons and

actions into practice and reaping benefits. Take Minna Bank, for example, which was not only Japan’s first digital bank but the world’s first full cloud banking system.

From the outset, it was designed as a “digital first” company that provides financial services to everyone, including digital natives—individuals that the KSA looks to attract in terms of talent pools and residents in its cities of the future.

Specifically, in the context of their “Zero Bank Core Solution”, Minna Bank’s digital core was built on Google Cloud using a cloud-first approach, connected technology and cloud-native core solution. Thus, empowered by the right combination of technologies, it took less than 18 months to launch a transformational bank amid strict regulations governing financial institutions during the COVID-19 pandemic.

Executives at Minna Bank agree that if it was not for cloud driven operating model, they would have been six months late in opening. Cloud gave them scalability, enhanced speed of deployment and made them efficient in fixing bugs.

REMEMBER… Cloud operating models are like a muscle; building them with the appropriate capabilities, data-driven insights and ecosystem partnerships requires constant nourishment. With strong government and corporate support, the time is right for organisations in the KSA to build and flex their cloud muscle now. i

Setting Global Benchmarks:

KSA All Set to Boost Status

By Omar Boulos

I

n Saudi Arabia, an ambitious vision is taking shape — a future in which its people can thrive in a seamlessly connected digital landscape.

It's a world supported by layers of impenetrable security, with an ecosystem of service-providers ready to fulfil every need, from leisure and entertainment to education.

This relentless pursuit of digitalisation lies at the core of Saudi Vision 2030, a $3.3tn blueprint aimed at propelling the nation beyond its historical reliance on oil, and revolutionising society along the way.

Such ambition needs powerful and adaptable technology to deliver on its goals.

Saudi Arabia stands at a crossroads, with an opportunity it cannot overlook – entering Cloud computing. By adopting these models, the KSA CFI.co | Capital Finance International

can set new standards for cost competitiveness and innovation.

Historically, Saudi Arabia embarked on its cloud journey a bit later than its regional counterparts.

But what it lacked in timing, it made up for with strategic vision. The past five years have seen a concerted effort to position the Kingdom as a Cloud powerhouse.

The government has been pouring resources into building the necessary infrastructure.

A testament to this is the Ministry of Communications and Information Technology’s (MCIT) 2021 initiative, an $18bn investment to establish a network of data centres across the kingdom.

This is about more than establishing infrastructure; it’s about setting global benchmarks. It isn’t just about technological integration, either: it’s about building a sustainable digital core. i 95

> Latin America:

¡Emprendedores!

Unstoppable Spirit Driving Latin America

Moving to modern rhythms and driven by fresh innovations, South America is where it’s at right now.

L

atin America, a tapestry of lively cultures, rich history, and varied landscapes, is brimming with business activity.

Passionate, resourceful, and driven by a desire to innovate and create change, the region’s entrepreneurs are reshaping economies, meeting societal goals, and creating a lasting local legacy.

Latin American inventiveness is influencing the global entrepreneurial scene, from long-term solutions to disruptive technology.

LAUNCHPAD: CHILE Chile's reputation for political and economic stability, along with focused government support for entrepreneurs, has created a thriving entrepreneurial hotspot. Santiago, the busy metropolis, attracts foreign investment, fostering collaboration between start-ups and major enterprises.

This co-operative environment encourages socially conscientious companies; success stories such as Betterfly, which is rethinking health insurance, and NotCo, which is revolutionising the food industry with plant-based alternatives, give examples of the country's entrepreneurial potential.

URUGUAY’S SOCIAL RESPONSIBILITY Uruguay, dubbed the "Switzerland of South America", combines technological advancement with a devotion to social progress.

The country's high level of digital adoption, and its educated population, create the perfect environment for IT start-ups to thrive. Uruguayan entrepreneurship frequently has a strong social mission. Companies such as Zonamerica, a freetrade zone with a relentless focus on ethical business practices, illustrate the capacity to combine commercial success with a desire for positive social effect.

PERU: RESOURCEFULNESS ITSELF Peru's dynamic economy and diverse landscape provide numerous entrepreneurial prospects.

Peruvian entrepreneurs are noted for their ingenuity, developing solutions out of necessity that are adapted to their expanding market.

Peru's entrepreneurial culture is driven by a sense of persistence and adaptation, from tourism companies that celebrate the country's cultural heritage and natural beauty to those addressing logistical challenges across its diverse terrain.

The government's growing acknowledgment of the importance of start-ups, with moves to reduce cut red tape, bodes well for the country’s entrepreneurial future.

COLOMBIA: ACCELERATING INNOVATION Colombia's amazing revitalisation in recent years has been paralleled by a thriving entrepreneurship scene.

"The growth of businesses that combine financial goals with a significant emphasis on social and environmental effect is a growing trend in Latin America. Startups provide tech skills to people from marginalised communities, paving the route for economic opportunity and bridging any digital gaps."

Bogotá, the capital, has developed as a prominent start-up hub, attracting talented individuals eager to build a name for themselves.

Colombian entrepreneurs are experts at using technology across sectors. Successes such as Rappi, a multidimensional "super app," and Platzi, an online education platform that trains the region's workers, demonstrate the capacity to scale solutions – and appeal to an increasingly tech-savvy populace.

The Colombian government's go-ahead approach to assistance, including programmes like Ruta N, that nurtures a dynamic innovation ecosystem, is hastening this trajectory.

BRAZIL: THE GIANT Brazil, the biggest country in Latin America, is the regional powerhouse, a sleeping giant now realising its business potential.

Its sheer market size, and massive untapped prospects, attracts ambitious business people.

Cities like São Paulo and Rio de Janeiro are thriving, and bustling with entrepreneurial activity. Start-ups are growing across industries, with disruptive fintech companies like Nubank upsetting the legacy banking landscape, and logistics firms like iFood changing the way goods and services move through its complex urban centres.

Recognising entrepreneurship as an economic growth driver, the Brazilian government is working to streamline laws and provide a climate more conducive to prosperity.

The entrepreneurial attitude includes a desire to develop both successful enterprises and beneficial social change.

When it comes to technological adoption, Latin America is rapidly moving ahead, generating a potent catalyst for entrepreneurship.

For ambitious business leaders, navigating complex procedures and overcoming obstacles is considered a badge of honour.

IMPACT-DRIVEN VENTURES The growth of businesses that combine financial goals with a significant emphasis on social and environmental effect is a growing trend in Latin America. Start-ups provide tech skills to people from marginalised communities, paving the route for economic opportunity and bridging any digital gaps. Environmentally conscious companies, such as Betterfly, leverage technology and behavioural incentives to encourage more sustainable lifestyles. Platforms such as Colombia’s Crehana democratise access to education and upskilling, resulting in a skilled workforce.

SETTING THE STAGE FOR GROWTH The future of Latin American entrepreneurship looks bright. Increased government backing, a rising pool of ambitious and skilled individuals, and an emphasis on impact-driven innovation position the region for long-term growth and global competitiveness.

ENTREPRENEURSHIP ESSENTIALS While success varies, certain key elements drive the Latin American entrepreneurial spirit.

As infrastructure and regional integration improve via efforts such as the Pacific Alliance, Latin American start-ups are expected to dominate local markets – while also becoming major players on the global stage.

Resourcefulness is chief among them. Regional entrepreneurs are distinguished by their capacity to adapt, innovate solutions, and traverse challenges.

This dynamic region, driven by passion, inventiveness, and a desire for change, seems unquestionably positioned to leave an indelible impression on the world. i

"While success varies, certain key elements drive the Latin American entrepreneurial spirit."

98

CFI.co | Capital Finance International

Spring 2024 Issue

MASERATI GRANTURISMO FOLGORE THE OTHERS JUST TRAVEL

The first full-electric Maserati ever.

Power consumption (kWh/100 km): 23,1 - 22,1; CO 2 emissions combined (g/km)*: 0; Energy efficiency category: B * CO 2 is the main greenhouse gas responsible for global warming; average of all new cars registered for the first time in Switzerland in 2024: 122 g/km. The CO 2 target value is 118 g/km.

CFI.co | Capital Finance International

99

> EY Argentina:

New Tax Bill for Argentina’s Congress to ‘Incentivise FDI’

By Sergio Caveggia

Milei’s new administration considers the realities of reforming a troubled economy.

W

hen Right-wing economist Javier Milei took over Argentina's presidency, he also took on the challenge of transforming a country in the grip of severe economic

challenges.

The international business community has taken a keen interest. Milei's presidency pledges to redefine the established norms of his country’s economic landscape, emphasising radical tax reform and macro-economic stabilisation.

Argentina had been in economic turmoil, with high inflation, rising public debt, stagnant wages, and a raging unemployment rate. This was the picture of a nation in distress, with an unfavourable business environment, erratic economic policies, and steep tax obligations.

These challenges resulted in a 200 percent annual inflation rate in 2023 and a poverty index of over 45 percent.

EARLY ACTIONS Milei's administration wasted no time introducing reforms aimed at corporations and individuals.

The first, a tax reform bill, was rejected by Congress. Milei said that ruined an opportunity to stimulate economic recovery and attract foreign investment. He remains committed to his vision of tax reduction and simplification.

TAKING ON INFLATION Inflation is the most pressing issue to be addressed. From December 2023 to March 2024, it dropped from 25 percent a month to 11, and at the time of writing it is still falling.

Market expects a single-digit inflation rate for the second quarter of 2024.

INVESTMENT CLIMATE Improving the investment environment is a key goal of Milei's administration. The proposed transformations intend to make Argentina a lucrative investment hub for oil and gas, mining, agribusiness, technology, and infrastructure.

One significant measure is the Incentive Regime for Large Investments (Regimen de Incentivo para Grandes Inversiones, or RIGI, in Spanish).

Although this was withdrawn by the executive branch in January 2024, in early April a new 100

bill, including such a regime, was sent back to Congress for consideration.

The purpose is to give those who commit to investments of over $200m with predictability, stability, legal certainty and protection of acquired rights in tax, customs, and foreignexchange matters.

The RIGI focuses on all sectors of the economy, across the country. It aims to encourage national and foreign investment, develop and strengthen the competitiveness of various sectors, increase exports, promote job creation, and generate welcoming conditions for investors.

The regime will be available for two or four years after it comes into force and will apply to solepurpose vehicles (SPVs, or VPUs in Spanish) for large investment. The bill defines “large” investments as those involving the acquisition, production, construction and/or development of assets to be used for activities of the sectors included in the RIGI. The investment amount in computable assets is determined by regulations, and will, for the first and second years, be subject to a minimum.

Acquisition of companies may also be computed as “large investment” under certain conditions.

In order to obtain tax stability, investments must be long-term and have a ratio of no more than 30 percent between the current value of expected net cashflow — excluding investments — and the net present value of the investments during the first three years.

Tax and customs incentives: • SPVs will be subject to a 25 percent income tax rate (as opposed to the general rate of 35 percent).

• An accelerated amortisation mechanism may be applied.

• Net operating losses (NOLs) that cannot be absorbed by taxable profits from the same period may be carried forward indefinitely, and deducted from taxable profits in subsequent years. After five years, any remaining losses may be transferred to third parties.

• NOLs can be adjusted for inflation.

• Dividends distributed more than three years CFI.co | Capital Finance International

from the closing of the fiscal year in which the profits were realised are subject to a zero percent withholding tax. This applies only for profits realised in fiscal years that close more than four years from the date of adhesion to the RIGI. • When the SPVs receive invoices for the purchase, construction, manufacture, elaboration or definitive importation of fixed assets or for investments in infrastructure and/ or services necessary for their development, they may pay the VAT with tax-credit certificates.

The regulations establish the requirements, procedures and conditions for the issuance, delivery and/or transfer of the certificates.

• This particular mechanism would enhance working capital because no cash disbursement

Winter 2021-2022 Issue

following the adhesion to the RIGI. • Import and export restrictions cannot be imposed.

• SPVs may choose to keep their accounting records and financial statements in US dollars, following NIIF standards.

• Simpler procedure for reorganisations carried out for the purpose of establishing an SPV. FOREIGN EXCHANGE INCENTIVES The export collections made by the SPVs are exempt from being entered and settled in the local Official Foreign Exchange Market in the following percentages: • 20 percent of the collections from the first year as from the date of adhesion to the RIGI • 40 percent of the collections from the second year as from the date of adhesion to RIGI • 100 percent of the collections from the third year as from the date of adhesion to RIGI. These funds in the referred percentages are to be freely available.

SPVs will not be obliged to enter and/or settle the foreign currency of other concepts related to the project (capital contributions, loans, etc) in the official foreign exchange market.

Exchange regulations that establish, or may establish, restrictions or prior authorisations for access to the official foreign exchange market for (i) the payment of a loan principal and other financial indebtedness with foreign countries, or (ii) the payment of profits, dividends or interest to non-residents, among others, will not be applicable under certain conditions.

STABILITY SPVs that adhered to the RIGI will benefit from a 30-year stability period in tax, customs and foreign exchange matters. The incentives may not be affected either by the revocation of the current regime or by the creation of tax, customs or foreign exchange regulations more burdensome or restrictive than those contemplated in the RIGI. New taxes created on or after the adhesion date, and increases in existing taxes, will not be applicable to the SPVs. would be needed to fund VAT upon purchases of goods and services.

• SPVs may claim an income tax credit for the entire amount paid and/or collected for the tax on debits and credits in bank accounts.

• Imports of capital goods, spare parts and components made by the SPVs are exempt from import duties, statistics and destination verification, and from any regime of reverse withholding, prepayment or withholding of national or provincial taxes.

• Exports made by the SPVs will be exempted from export duties after three years from the date of adhesion to the RIGI. • Thin cap rules included in the income tax law should not apply to SPVs in the first five years

The foreign exchange regime in force at the date of adhesion to the RIGI may not be affected by exchange regulations that may be issued establishing more burdensome conditions.

A special procedure is provided for contesting infringed stability.

Author: Sergio Caveggia

would provide security for investors’ projects. If this bill is passed by Congress, it is expected that the country will receive FDI in many competitive sectors, with a particular boost for the economy. i ABOUT THE AUTHOR Sergio Caveggia is a tax partner currently in charge of Transaction Tax area in Argentina. He joined EY Argentina in 1994 and has developed expertise over 26 years in international taxation and merger and acquisition matters. Sergio is also focus on servicing clients in the Private Client Services (PCS) area. He is highly experienced in inbound and outbound investments, buy side, sell side and restructuring services within the Transaction Tax area.

Sergio has served in a variety of industries and has also been involved in many due diligence procedures performed in the past over 20 years.

He has given lectures in national universities and is a frequent speaker in tax seminars. He has also written several articles dealing with Argentina tax issues.

He is a Certified Public Accountant who graduated from University of Belgrano in Argentina. He obtained his Tax Specialist’s Degree at the University of Belgrano and has a postgraduate certificate in Business and Management from Universidad Catolica Argentina (UCA). He is also member of the Professional Council of Economic Sciences of Buenos Aires and the Argentina Fiscal Association.

LOOKING FORWARD These proposed economic reforms bring a sense of cautious optimism to Argentina's economic outlook.

The new Tax Bill recently sent to congress includes an incentive regime for foreign and local investments. A 30-year stability period CFI.co | Capital Finance International

101

> Privacy is a Right, Not a Luxury

– and it’s Worthy of Protection

By Andrew Frost Moroz Founder of Aloha Browser

Data-harvesting, monitoring, ad-targeting and even industrial espionage are threats for modern Internet users – and one company has a practical solution.

T

ech advances of the past 20 years have forever changed the way people communicate, work and live. The number of people using smart phones this year is expected to reach seven

billion.

Mobile devices, emails, messaging services, social networks and video calls are how we stay in touch – with those far from us, or perhaps sitting just across the table.

The internet and AI have “brought the world into our homes” as never before. From armchair travel or chatting with a friend in another country to shopping, watching a movie or learning, all this can take place in the comfort of your sitting room.

Since the pandemic and the emergence of flexible- and remote working, even being employed no longer requires a daily commute.

The freedom of information is great, and seductive. We don’t even question whether the services of Google, Yahoo, Meta or Amazon come at a price.

But they do.

As the old adage has it, there is no such thing as a free lunch – and it’s a harsh economic reality.

Everything comes with a price tag. In this case, it’s our personal privacy and security. It’s no secret that user-data is collected, analysed, and ultimately monetised by corporations, who own 80 to 95 percent of the market.

We would really like to be reassured that it’s possible to still be a “private individual” – respectful of the rights of others, but away from the public eye and political scrutiny – able to think, act, speak, shop, or learn without our actions being monitored and analysed. But each time we go online, somebody, somewhere, is watching.

And that matters, even if we have nothing to hide.

It’s a matter of principle. Academics, economists and intellectuals increasingly share the view that networked computer databases are a threat to 102

Author: Andrew Frost Moroz

personal privacy. Billions of people have little or no knowledge of how their information is being harvested, collected, stored – and used.

Cyprus-based Aloha Browser is one company that feels strongly about these issues. It is a mobile and desktop private web browser that allows users to maintain online privacy, and have full control of their personal data.

Aloha does not use, collect, or monetise user data. Instead of selling data to advertisers, the firm generates revenue via premium and VPN services subscriptions. The core philosophy is that digital privacy is a right, not a privilege, and internet users must have access to the net and maintain total control over their personal data and privacy.

In the same way, Aloha users will be invisible among the millions of other users. It will be impossible to establish who is performing which specific action.

First launched in the EU in 2015, Aloha has seen steady user growth in Europe, North America and Asia. Consumers globally are increasingly aware of their privacy options, and more companies are hitting the headlines for breaches of privacy.

Aloha offers free and paid-for options for a range of services. It gives users that freedom – and has found alternative ways to remain profitable and continue to grow without stooping to the datamining and individual tracking common to many IT companies.

The EU enacted the Digital Markets Act, or DMA, this year. This increased user protection and loosened the grip corporate giants like Google and Apple have had on mobile device browsers, making it easier for users to find alternate browsers. Since the introduction of this Act, Aloha has seen average user rates rise by 250 percent in Europe – in the first month alone.

It achieves the highest levels of privacy by mixing all finger-printing data in a way that a single user can’t be distinguished from the masses. If millions of images are piled on top of each other, it will be impossible to identify a single one.

Aloha’s priority remains that of giving users the right to be private, which is crucial for all internet users, now and in coming years, particularly with the adoption and integration of AI into so many aspects of our lives.

CFI.co | Capital Finance International

Spring 2024 Issue

The overall approach is to provide simplicity and accessibility while meeting consumer needs and expectations. Modern users have choices for browsers, and often have more than one installed on their device. We dream of a better, more secure future for our customers – but we are realists. We believe Aloha can become the go-to option for people who realise that they need privacy for a particular transaction, search, or interaction.

that activity, and what that information is being used for. A browser that can limit your exposure is quite simply part of that right to privacy.

Another goal is to make the complex matter of privacy as simple as possible. It works right out of the box, without the need for advanced setup or fiddling with extensions or complicated switches. Even non-tech-savvy users can benefit from it. Building complex products is hard, but building simple ones that can do the same thing is infinitely harder. This is where Aloha comes into its own.

Despite the overall dominance of the sector by Google and Apple, Aloha still has a strong share of followers, with more than 250 million users worldwide, 10 million of them each month.

These numbers have been growing more since the EU’s recent rulings made such choices easier to attain.

Consumers and users spend an average of three hours and 15 minutes each day on mobile devices. It’s crucial to have some degree of control over who is monitoring

Remember the 1998 film with Will Smith and Gene Hackman, Enemy of the State? Many wonder if it was based on a true story. It wasn’t – but the tech that looked so far-fetched then is now becoming reality.

This growth shows that there is a large, but still not fully-served, population that wants control of all their personal data.

Owing to technology advances, access to the Internet has never been easier. The flip side is CFI.co | Capital Finance International

that the higher the number of access points, the higher the number of opportunities for a cyberattack. More Internet users are becoming concerned about their privacy, and the fact that a lack of it can be a real threat should personal data end up in the wrong hands.

At Aloha, we are not only protecting our users from the annoyance of cookies, cross-device tracking, browser fingerprinting, or bombardment by ads while visiting certain websites. We are looking further ahead.

The AI era brings more urgency to the issues of privacy and personal data. It has already taken over many aspects of home and work life, and one should be able to benefit from it without compromising privacy and avoiding phishing, spyware, and identity fraud.

Aloha is pioneering AI privacy to protect users from today’s threats – as well as emerging ones.

We’re working hard to ensure privacy rights, and looking ahead to stay abreast of coming challenges. i 103

> Otaviano Canuto:

The Global War of Subsidies US bids to limit tech imports and exports send a message of frustration and fear.

P

rior to her visit to China on April 4 — her second in nine months — Janet Yellen, US Secretary of the Treasury, sent a message demanding that the country not flood the world with cheap exports of clean energy.

That would “distort global markets and harm workers abroad”, she said. Yellen is not the only official from other major economies who has referred to a potential deluge of Chinese products.

China’s excess industrial capacity, and the government support that has fuelled it, were the subject of discussion during Yellen’s meeting with Chinese Premier Li Qiang.

Current levels of idle capacity and consumer restraint are some of the challenges China must address. Exports may be the way to address domestic demand issues, and the world monitors the Chinese exchange rate for signs of devaluation.

Xi Jinping has referred to clean energy and other tech sectors as the primary path to prosperity.

China is ahead of the US and Europe when it comes to clean energy. Little wonder, then, that American and European officials make frequent reference to Chinese exports and subsidies.

CFI.co Columnist

Large-scale subsidies have proliferated in a race to subsidise strategic sectors. In response, the US has put its own subsidies in place for the local manufacture of clean-energy and semiconductor products. Volkswagen called this “a gold rush” when announcing a decision to build an electric vehicle (EV) factory in South Carolina.

On the basis that it is supporting investments to combat climate change and reduce healthcare costs, US subsidies take the form of tax incentives, grants, and loan guarantees to bolster domestic manufacturing. While many are available for investment in countries with which the US has free-trade agreements, their scope and value are lower than those available to companies in-country.

The CHIPS Act aims to revive the local semiconductor industry. The US leads the sector in terms of core technology and equipment, but mass production of occurs mostly in Taiwan, 104

South Korea, Japan, and the Netherlands. The law aims to reduce dependence on Taiwan in the event of a crisis there. Expenditures on the Inflation Reduction Act (IRA) alone are expected to reach $1.2tn.

The EU has expressed almost immediate concern about the Act, with protests focused on strengthening US domestic production.

European Commission president Ursula von der Leyen called for the establishment of an EU Sovereignty Fund (ESF) to directly combat the effects of the IRA. The EU needed to consider “how our so-called 'like-minded partners' are proceeding in the ongoing industrial and technological race”, she said. Rules that limit national government subsidies to industry have been adjusted.

Member-state governments can match subsidies offered outside the EU if there is a risk of a project of “strategic importance” being relocated.

The EU is obviously concerned about China and the penetration of its EV industry – and a production facility has been announced in Hungary. Declarations of intent have been made to establish trade restrictions in response to Chinese subsidies.

South Korea and Japan have their own responses to subsidies. South Korea, after describing incentives for EVs and batteries manufactured in the US as “a betrayal”, received updated guidance on the IRA from the US Treasury. Japan obtained a similar agreement, qualifying its EV batteries and components for IRA incentives.

Major battery and semiconductor companies in both countries are planning new factories in America to ensure receipt of the subsidies. Local content requirements under the IRA become more stringent over time. Both the South Koreans and the Japanese say that US subsidies pose a threat to their domestic industries. Both pursue a dual strategy covering incentives available under the IRA, while implementing their own policies to protect key sectors.

Even Australia, which has a free-trade agreement with the US and little in the way of industry to protect, has decided to enact a subsidy programme to bolster critical mineral processing, which is considered strategically significant.

Judging by announcements and initial investments, the effect of incentives on US supply chains has been intense. Mexico, a beneficiary of the IRA, replaced China as the largest exporter to the US last year. That was a first time since 2006 that China has not been top dog. A realignment of global trade is under way.

Any cost-benefit evaluation of these subsidy programmes faces difficulty: the desired results are not optimal in economic terms. There is a risk that countries, especially the US and China, will adopt increasingly broad definitions of what constitutes a “strategic” sector.

This could trigger fresh global subsidy wars. For countries with no fiscal space to compete in cutting-edge sectors, this is bad news. i

This story was originally published in Policy Centre for the New South

Spring 2024 Issue

Navigate risk with confidence As a leading global provider of credit ratings, research, and risk analysis, we offer valuable insights into the financial stability and creditworthiness of organizations, debt instruments, and securities.

For more information, please visit ratings.moodys.io

CFI.co | Capital Finance International

105

© 2024 Moody’s Corporation, Moody’s Investors Service, Inc., Moody’s Analytics, Inc. and/or their licensors and affiliates (collectively, “MOODY’S”). All rights reserved.

> Beyond Silicon Valley:

Uncovering America's Hotspots of Ingenuity The genius-in-the-basement syndrome that has driven US entrepreneurism is far from dead…

106

CFI.co | Capital Finance International

Spring 2024 Issue

CFI.co | Capital Finance International

107

S

tories of game-changing technology launching from the garages of typical California family homes are embedded in our entrepreneurial lore.

But the cliché obscures the vast and complicated entrepreneurial landscape of North America. From the cold Canadian tundra to Mexico's teeming urban hubs, inventors face varied challenges, have diverse resources, and are driven by diverse reasons.

MYTHS AND REALITY The Silicon Valley narrative, with brilliant founders, unrestricted access to cash, and an unwavering high-risk strategy, endures. That’s because it’s consistent with the larger ideal of the American Dream. However, the drivers of entrepreneurship are more nuanced – and more intriguing.

Canadians, with better social safety-nets may be freer to try their luck: failure is less likely to result in devastation. This freedom allows for the pursuit of ambitions with delayed rewards.

In Mexico, where economic hardship is greater, fearless entrepreneurship is required. This can lead to a concentration on specific local problems and a focus on establishing critical sources of revenue.

Changing Landscapes North America has advantages that many other regions lack, such as venture capital networks, tech infrastructure, and famous colleges that serve as launching pads. But these resources are not evenly dispersed.

An entrepreneur in a remote location, regardless of country, confronts more hurdles than someone who is physically close to investors and major centres. Income disparity, exacerbated by systematic racism and sexism, remains a barrier, defining who receives the support and mentoring required.

Nonetheless, the landscape is changing.

Crowdfunding helps some to skip traditional gatekeepers, providing a channel for those who do not fit the perfect profile that venture capitalists look for. Online resources are increasing, but their value is dependent on

"North America has advantages that many other regions lack, such as venture capital networks, tech infrastructure, and famous colleges that serve as launching pads. But these resources are not evenly dispersed." internet access. This democratisation holds enormous promise, but it depends on narrowing the digital divide, which still exists in in parts of North America.

problem-solving abilities honed through adversity, and fresh perspectives. This outsider's perspective can result in innovative solutions, tailored to benefit under-served regions.

Exploration can be a diverse entrepreneurial journey. Toronto and Montreal are indisputable AI hotspots, fuelled by academic research, government funding, and a critical mass of expertise. Austin, Texas, with a cheaper cost of living than Silicon Valley, attracts techies looking for a different lifestyle without sacrificing innovation potential.

Younger generations alter the terrain. Millennials and Generation Z have grown up in an era of constant technological change, value agility and iteration. They value impact over profit, resulting in a surge of social-impact in tackling issues such as climate change and educational and healthcare inequality. While not every initiative succeeds, this shift in thinking shows a values-driven approach that may lead to a more sustainable version of capitalism.

Despite confronting economic hardship, Detroit can leverage its automotive history for transport innovations, with targeted investment and creative retraining programmes to combine history with new possibilities. Mexico City's burgeoning fintech ecosystem addresses financial inclusion that is scalable – and relevant far beyond the country borders.

There has been an increase in indigenous-owned enterprises throughout the Canadian Arctic, working on complex problems such as food security, tools that meet the specific demands of remote communities, and sustainable tourism models. These ventures demonstrate the value of local expertise.

THE HUMAN FACTOR North America's entrepreneurial strength lies in its people. Immigrants face distinct problems, but they frequently demonstrate perseverance,

LOOKING AHEAD North American entrepreneurship is not without its issues. Vast economic inequality remains the most significant impediment to success. Global events such as pandemics, wars, and supply chain disruptions all have an impact. But North American culture, shaped in part by disruption, may nurture more agility and unconventional thinking, The future belongs to solution-orientated innovators free from preconceived notions about genius, and where it might be found. The next commercial giant could arise from any tiny town, university lab, or community centre. It is crucial to identify and assist innovation in historically marginalised areas. This will unleash the full potential of North American business – and produce a bright future for all. i

"The future belongs to solution-orientated innovators free from preconceived notions about genius, and where it might be found.

The next commercial giant could arise from any tiny town, university lab, or community centre. It is crucial to identify and assist innovation in historically marginalised areas."

108

CFI.co | Capital Finance International

Spring 2024 Issue

CFI.co | Capital Finance International

109

Market leading global investment solutions La Trobe Financial is one of Australia’s leading alternative asset managers.

We are dedicated to providing financial solutions to meet the needs of global investors. Over 70 years we have built a deep reservoir of trust with our investors and have genuine conviction in the resilience of our strategies through market cycles. We have won many awards, including the cfi.co ‘Best Investment Management team' multiple times.

Today, we manage over $18 billion AUM and continue to deliver outstanding performance through every economic cycle.

2020 BEST INVESTMENT MANAGEMENT TEAM

WINNER AUSTRALIA

cfi.co Best Investment Management Team 2020 to 2024.

+613 8610 2800

|

latrobefinancial.com.au

La Trobe Financial Services Pty Limited ACN 006 479 527 Australian Credit Licence 392385.

La Trobe Financial Asset Management Limited ACN 007 332 363.

Australian Financial Services Licence 222213 Australian Credit Licence 222213.

Past Performance is not a reliable indicator of future performance.

To view our Awards please visit the Awards and Ratings page on our website.

Spring 2024 Issue

> From Solo Star to Team Captain:

An Accidental Manager's Journey

Suddenly shunted into the C-suite, or find yourself the foreman of your former colleagues? Don’t panic…

T

hey were the top performers, consistently exceeding expectations and thriving in their respective fields. But then came the promotion, an unforeseen turn of events that catapulted them into the role of team leader.

Welcome to the realm of the "accidental managers", a growing bunch of individuals who find themselves unwittingly thrust into leadership positions. Sometimes, without any formal training…

While these people are unquestionably masters of their domains, they face a unique challenge: Navigating the uneven and often uncharted terrain of people-management, mastering the delicate art of enablement, and cultivating a dynamic team atmosphere.

The syndrome is not new, or unusual. According to studies, up to 80 percent of new managers begin their leadership path with no professional training. They are frequently promoted for their demonstrated technical knowledge – leaving them with a major skill-gap when it comes to managing people.

This can be linked to circumstances, including rapid company growth, a strong demand for specialised talents, and organisations' limited resources when it comes to leadership development programmes.

FACING THE UNFAMILIAR The adjustment to a new set of responsibilities can be discombobulating. Previously familiar tasks, such as project completion or problemsolving, must be tackled in a different way.

Performance evaluations, conflict resolution, and strategic direction-setting all demand distinct skill sets.

Initially, there may be a propensity to micromanage, or to rely on technical abilities, or even to become overwhelmed. This can hinder team growth and foster a culture of dependency, rather than empowerment.

NAVIGATING THE RAPIDS So, how can these managers rise to the challenge and effectively lead their teams? Here are some key strategies: • Embrace continuous learning and recognise that leadership is an ongoing process. Actively seek out development opportunities, mentorship programmes, insightful books, and internet resources. Effective communication, delegating, coaching, and conflict resolution skills will be necessary.

• The most successful transformation entails switching from a "doing" to a "enabling" perspective. Learn how to empower your team members through effective work delegation, clear guidance, and constant support. Trust them to step up and shine.

• Foster trust and open communication by CFI.co | Capital Finance International

providing a secure environment in which your team may communicate ideas, issues, and challenge the status quo. Create a culture that welcomes diverse viewpoints.

• Celebrate individual and team accomplishments. Take the time to appreciate what your team does. Emphasise how individual contributions add to shared successes, and communal achievement.

• Even experienced leaders rely on others for assistance. Don't be afraid to seek advice from more experienced co-workers, HR officials, or external coaches. A mentor can provide a sounding board and help you navigate difficult situations.

UNEXPECTED REWARDS Despite the initial challenges, the accidental manager's journey has enormous potential for personal and professional development. As your team begins to grow and meet its goals, you will experience the sense of success that is unique to leadership. The abilities you develop will open up new career opportunities for you, and those who work under your guidance.

The journey of the accidental manager is one of continuous learning, adaptation, resilience – and it comes with a rewarding sense of accomplishment. By facing obstacles head-on, investing in your own development, and always putting your team first, you may become the captain your team has been waiting for. i 111

> Viva, Mexico:

Vector Casa de Bolsa Really has the Bit Between its Teeth A string of ‘firsts’, an enterprising attitude, and a promising outlook — this finance company sees a positive future ahead.

G

lobal Mexican finance company Vector Casa de Bolsa launched the first stock certificates in Mexico for international private equity.

It has underwritten the first SAPIB (stock investment promoting corporation) via a new regulatory framework. It’s also the first brokerdealer to distribute bank certificates with Institute for the Protection of Bank Services Independent Payment Advisory Board (IPAB) guarantee.

MUTUAL FUND Vector has achieved positive certification by major agency Fitch Ratings. It is an authorized participant for Blackrock to be an iShares operator. Since 2008, Vector has been one of 14 participants authorised by Blackrock to operate ETFs. Vector’s mutual funds have been noted across the financial industry sphere for stability and competitive yields. With data from the international leader on investment analysis, Morningstar, Vector Fondos was judged the best fund-management company in México for average assets per quartiles (2016 to June 2019), considering gross returns.

“We strive to continue offering our investment funds to our clients for the best combination of security and performance,” says CEO Edgardo Cantú.

Mundo Ejecutivo (Executive World) magazine adjudged Vector as best broker-dealer in Mexico in its “Where to invest?” rankings.

INDUSTRY RECOGNITION The prestigious World Finance publication, headquartered in London, picked Vector Casa de Bolsa as winner of its 2013 awards for best broker-dealer in Latin America — and best provider of financial client services in the region.

In the first edition of the Thomson Reuters StarMine Analyst 2015 Awards for Latin America, Vector was recognised as one of the most active contributors of 2014; it took the Partnership & Commitment Award for 2015.

Vector was also victorious in an evaluation

by Consensus Economics in the Accuracy in the Forecast of Mexico category for 2014.

112

"For the third consecutive year, Fitch Ratings has raised Vector Casa de Bolsa's national longterm counterparty risk rating: to AA- (mex) from A+ (mex), while affirming the short-term rating at F1+ (mex)."

Bloomberg accorded Vector Brokerage Firm top in the search for Best Forecaster of the Mexican Economy 2015.

PERFORMANCE The assets in Vector custody have presented an average annual growth of 11 percent since 2018 to 2023. It presented a compound annual growth of 16 percent in net gross income from 2018 to 2023.

The average growth of the firm’s annual net assets in mutual funds for the past 10 years (as of September 2019) is 14 percent; the Mexican industry average growth was 10 percent for the same period.

And it’s not all about the money. “We are a socially responsible company,” says Cantú, “a distinction granted by the Mexican Centre for Philanthropy.”

For the third consecutive year, Fitch Ratings has raised Vector Casa de Bolsa's national longterm counterparty risk rating: to AA- (mex) from A+ (mex), while affirming the short-term rating at F1+ (mex). The long-term outlook remains Stable.

In November 2023, PCR Verum reaffirmed Vector Casa de Bolsa's corporate ratings of AA-/M for long-term and 1+/M for short-term. The longterm rating outlook is Stable.

FIVE DECADES DRIVING THE GROWTH OF THE MEXICAN ECONOMY As Vector Casa de Bolsa approaches its 50th anniversary, it is time to reflect on the company's remarkable journey and enduring impact on the country’s economy. Vector Casa de Bolsa has consistently demonstrated its commitment to excellence, innovation, and collaboration, helping shape the financial landscape of Mexico and contribute to economic growth.

CFI.co | Capital Finance International

A Legacy of Trust Established in 1974, Vector Casa de Bolsa quickly made a name for itself as a leading player in the Mexican financial sector, earning a reputation for high standards of service and dedication to providing clients with comprehensive financial solutions. The company's strong financials, diversified business model, and experienced management team have consistently attracted investors, helping to boost economic activity and promote market stability.

A Diversified Business Model At the heart of Vector Casa de Bolsa's success lies its diversified business model, which encompasses a range of services catering to the diverse needs of institutional and retail investors. Its brokerage arm provides access to a wide array of financial instruments, while its investment banking division facilitates mergers and acquisitions, underwriting, and other transactions that drive economic growth. Vector Casa de Bolsa's asset management arm offers a variety of products tailored to various risk profiles and investment objectives, helping individuals and institutions achieve their long-term financial goals.

A Commitment to Innovation Vector Casa de Bolsa has always been at the forefront of technological innovation, embracing new technologies to enhance its services and provide its clients with a superior user experience. The company has invested heavily in cutting-edge platforms and applications that provide real-time market data, trading tools, and investment analysis: empowering clients to make informed decisions and manage their portfolios effectively.

A Beacon of Collaboration Vector Casa de Bolsa has played a pivotal role in fostering collaboration and partnership within the Mexican financial community. The company has actively participated in industry initiatives and associations, working alongside regulators, other financial institutions, and all participants to promote market development, enhance transparency, and protect investor interests.

Advancing Corporate Social Responsibility PCR Verum considers that Vector observes ESG factors at a level above average, highlighting that year after year it seeks to increase its positive impact on society. Favorably, over the past

Spring 2024 Issue

President & CEO: Edgardo Cantú

eighteen months, the brokerage firm has already consolidated the formation of an ESG leadership team with the aim of fully incorporating these principles at the institutional level, seeking to impact favorably all stakeholders related to the company (primarily its employees and clients).

This leadership team, made up of members representing all areas of the brokerage firm, has generated a materiality study that allowed it to establish 12 priority topics to strengthen the Vector25 institutional strategy.

While the ESG leadership team works hand in hand with the Brokerage Firm's Management Committee to communicate everything related to the ESG topic, it also collaborates with the planning area to define ESG KPIs and thus keep a precise track of the organization's progress towards integrating these topics.

On the other hand, Vector Asset Management, responsible for the management and commercialisation of institutional investment strategies (funds and investment portfolios),

is currently a member of the Green Finance Advisory Council (CCFV) in order to promote the professionalization of participants in the financial system in green finance topics.

A Driving Force for Economic Growth Throughout its 50-year history, Vector Casa de Bolsa has played a significant role in driving the growth of the Mexican economy. The company's expertise in investment banking and asset management has also helped to attract foreign investment, and channel funds into the country, thus creating jobs and stimulating economic activity. Vector Casa de Bolsa's commitment to providing dependable financial advice and guidance to businesses and individuals has also contributed to improved decision-making, increased investment, and overall prosperity.

markets. The company's strong financial position, experienced management team, and focus on innovation have allowed it to navigate difficult times and emerge stronger, continuing to play a vital role in supporting the Mexican economy.

A Legacy of Growth As Vector Casa de Bolsa embarks on its next 50 years, it is poised to build on its legacy of growth and innovation, driving economic development and contributing to the continued well-being of Mexico. With its unwavering commitment to excellence, its dedication to clients, and its wholehearted support of the national economy, Vector Casa de Bolsa is well-positioned to play a major role in shaping the financial landscape of Mexico for another five decades and more. i

A Symbol of Stability and Resilience When Mexico faced economic challenges and periods of uncertainty, Vector Casa de Bolsa demonstrated its resilience and commitment to providing stability and support to financial CFI.co | Capital Finance International

113

> Kellogg Insight:

When New Technology Arrives, Who Wins and Who Loses?

By Susie Allen. Based on the research of Leonid Kogan, Dimitris Papanikolaou, Lawrence Schmidt, and Bryan Seegmiller. This story first appeared in Kellogg Insight

AI levels the playing field within an occupation, argues the Kellogg Institute’s Dimitris Papanikolaou

T

he release of ChatGPT in 2022 brought to a boil a conversation that had been simmering for years: How, and by how much, will new technology change the labour market?

While generative AI represents a major advance, it’s not the first time a new tool has seemed poised to change — or eliminate — certain jobs. And that previous experience may provide important lessons for the future.

The Kellogg Institute’s Dimitris Papanikolaou and Bryan Seegmiller (professor and assistant professor of finance, respectively) have tackled the question of how the arrival of new technology affects workers, and their earnings. The study was co-authored by Leonid Kogan and Lawrence Schmidt of the MIT Sloan School of Management.

Their analysis focuses on the period from 1981 to 2016 — a time span in which many new technologies were introduced across a variety blue- and white-collar occupations.

They found that when a new tool can perform a task in place of a worker, the workers suffer.

“They experience a loss of earnings, and that is largely independent of age, income level, which sector they’re working in, the type of job that they do, or whether they have a college degree,” Papanikolaou says.

But when a new technology complements workers performing a task, the effects are more variable. The most experienced and highly paid workers suffer, while new hires appear to benefit.

Papanikolaou, Seegmiller, and their colleagues also studied the potential ramifications of AI on today’s workers. “AI, as a technology, levels the playing field within an occupation,” Papanikolaou says. In other words, if everyone can code, a skilled and experienced coder will be less valuable in the job market. The upshot is that “it’s going to hurt workers that are better at their jobs”.

MEASURING EXPOSURE The researchers began by gathering job descriptions from ONET, the Occupational Information Network, as well as the 1991 edition of the Dictionary of Occupational Titles — both widely used as sources of information about 114

"AI, as a technology, levels the playing field within an occupation." professions and the functions they perform. The ONET entry for the job of “Kindergarten Teacher, Except Special Education” lists 37 tasks, among them to “demonstrate activities to children” and “read books to entire classes or to small groups”.

Then — in a slightly ironic twist — the researchers asked ChatGPT to classify each job’s tasks as either routine (requiring little experience and easy to automate) or non-routine (requiring lots of experience and probably difficult to automate). They compared ChatGPT’s results against other classification methods.

“As a professor, sometimes I teach, sometimes I write papers, sometimes I field reimbursements,” Papanikolaou explains.

Dealing with reimbursements “is probably routine, while the other two are totally non-routine.”

Next, they gathered a list of patents issued from 1980 to 2007. They focused on “breakthrough” examples — those that differed from previous patents, but were influential on future ones.

Then the team calculated how closely these breakthrough patents matched routine and nonroutine job tasks. If a patented technology was closely related to a routine task, the researchers considered it a labour-saving technology — one likely to fully automate that task. If a patented technology was closely related to a nonroutine task, the researchers considered it a labour-augmenting technology — one likely to complement the efforts of a worker.

This information was used to compute measures of exposure to labour-saving and labouraugmenting technology for various occupations.

A job experienced high exposure to labour-saving technology if many of its tasks were automated within a given time period. A job experienced high exposure to labour-augmenting technology if many of its non-routine tasks were complemented by technology within the time period.

CFI.co | Capital Finance International

HOW EXPOSURE AFFECTS OCCUPATIONS To determine the consequences of exposure to labour-saving and labour-augmenting technologies, the researchers gathered US government data on workers in different occupations, including earnings, ages, and levels of education from the years after the breakthrough patents were granted.

Overall, for any given occupation, exposure to labour-saving technology predicted lower wages and lower employment. Exposure to labouraugmenting technology, meanwhile, predicted higher wages and higher employment for that job.

But when the researchers shifted gears and began analysing the effects of technology exposure at the worker level, rather than the occupation level, they discovered a more complicated story — particularly when it came to labour-augmenting technology.

Across all occupations, the average worker whose exposure to labour-augmenting technology suddenly spiked saw a small decrease in earnings and a small increase in the likelihood of losing their job. These trends were even more pronounced among white-collar workers, older workers, and highly paid workers within an occupation.

This, combined with the knowledge that wages increased at the occupation level, “leads you to suggest that a lot of the benefits go to newly hired workers”, Papanikolaou says. In other words, workers who were used to doing things in a certain way struggled to adapt when complementary technology arrived, while lessexperienced workers could harness the power of these new tools.

WHAT DOES THE FUTURE HOLD? Will the trends of technological advances in decades-past extend to AI? To find out, Papanikolaou, Seegmiller, and their colleagues ran a new analysis. Instead of using patents as their proxy for technological change, the researchers asked ChatGPT whether AI could perform a given task without human intervention.

As before, the researchers matched this information with occupation descriptions to determine whether a job’s routine and nonroutine tasks could be complemented or

Spring 2024 Issue

"While less-experienced workers in these roles may benefit from the robotic assistance, the researchers suggest that older ones may struggle and see their wages decrease. Their expertise and experience may no longer provide the competitive edge they once did." substituted by AI. They used census data on Americans’ earnings to predict the effect of AI exposure on wages.

While speculative, the findings suggested that workers in office and administrative occupations, as well as those in production and transport, face high levels of exposure to AI as a labour-saving technology. The occupations most exposed to AI as a complementary technology included insurance underwriter, medical transcriptionist, customer-service representative, personal financial advisor, and budget analyst.

While less-experienced workers in these roles may benefit from the robotic assistance, the researchers suggest that older ones may struggle and see their wages decrease. Their expertise and experience may no longer provide the competitive edge they once did.

COMPLEX EFFECTS Papanikolaou says the research offers muchneeded perspective on how AI — or any new technology — can change the workforce.

“Especially with the case of AI, everyone freaks out, and they interpret the statement, ‘AI will affect my job’ as ‘AI will do my job for me’,” he says. “And those two things are not the same, because AI can be a tool or substitute. And just because the job may change doesn’t mean that it will be eliminated.”

The findings also suggest that “soft” skills may become more important. Jobs that mostly rely on interpersonal skills are less likely to be affected by technology.

Papanikolaou points out that AI tools may, in the future, aid doctors and nurses in determining medical diagnoses — but they probably won’t be able to offer the emotional care and support that patients need. “That’s something where AI would probably do much worse.” i

115

> Asia Pacific’s Innovation Boom:

Technological Titans are Emerging Go east, young entrepreneur…

116

CFI.co | Capital Finance International

Spring 2024 Issue

CFI.co | Capital Finance International

117

T

he Asia Pacific region is a driving force in global innovation. From established tech powerhouses to fast-expanding countries, the area is influencing the global start-up scene.

"Capitalising on expanding consumer demand in South East Asia, and a shift Asia Pacific, driven by ambition, government towards sustainable buying, Carousell efforts, and megacity hubs, is a monument to innovation outside the “usual” Western centres. established itself as a prominent SINGAPORE: START-UP HAVEN Singapore, a city-state strategically placed in marketplace platform for second-hand South East Asia, is a shining example. Its probusiness policies, world-class infrastructure products. This demonstrates how a quick and strong financial sector create a perfect environment for entrepreneurs. response to market shifts can drive success."

This success can be seen in companies such as Grab. Originally designed as a ride-hailing service, Grab has evolved into a "super app" that provides a range of services from transport to food delivery and mobile payments. Its performance demonstrates an ability to detect market gaps and scale regionally.

Razer, founded in Singapore, has become a global leader in premium gaming gear and accessories. Its constant emphasis on a specific market and understanding of gamers’ demands exemplify niche domination.

Capitalising on expanding consumer demand in South East Asia, and a shift towards sustainable buying, Carousell established itself as a prominent marketplace platform for secondhand products. This demonstrates how a quick response to market shifts can drive success.

Singapore shows how a small country can become a worldwide innovation engine with a clear strategy and enabling infrastructure.

HONG KONG: THE BRIDGE It’s the gateway between East and West, providing a unique opportunity for businesses.

Hong Kong’s strong banking system, proximity to the China mainland and its massive market, provide a unique environment.

Hong Kong’s WeLab pioneered the notion of virtual banking, using technology to provide access to financial services. Its emphasis on diversity and creativity meets a genuine regional need.

GOGOX (formerly GoGoVan) recognised logistics inefficiencies in Asia's congested metropolitan areas. It developed a platform that connects drivers, individuals, and businesses for ondemand deliveries. This reflects trends in the sharing economy and urbanisation.

Prenetics is a leader in health and genetic testing, offering affordable preventative care solutions throughout Asia. This identified an under-served sector.

Hong Kong's entrepreneurial spirit is based on adaptability, response to global trends, and the ability to take advantage of its geographical and political location.

INNOVATION DOWN SOUTH While New Zealand and Australia have robust economies and excellent infrastructure, entrepreneurs are also lured to quality of life.

This promotes an innovative culture centred on creating globally competitive enterprises with a human touch.

Canva, founded in Perth in Western Australia, democratised graphic creation with its simple drag-and-drop platform. Its worldwide reach reflects the desire to provide solutions that transcend local markets.

Atlassian, based in Sydney, creates collaboration software such as Jira and Confluence, which are essential for global teams. This reflects the emphasis on developing scalable software with a global impact.

Xero was founded in New Zealand, and its cloud-based software transformed accounting for small businesses. This shows the benefits of simplifying a complex procedure that has popular demand.

Australia and New Zealand drive innovation in environments that value a healthy work-life balance.

SOUTH KOREA: POWERHOUSE South Korea's commitment to innovation has resulted in a thriving start-up ecosystem. The

government's emphasis on R&D, along with a highly educated population, provides a fertile foundation for disruptive ideas.

Pioneers such as Coupang, dubbed the “Amazon of South Korea”, revolutionised e-commerce with fast delivery and a customer-centric strategy.

It emphasises the focus on upgrading existing models.

The developer of the global hit PlayerUnknown's Battlegrounds, Krafton cemented South Korea's place in the gaming business. Woowa Brothers revolutionised meal delivery with the Baedal Minjok app, identifying service delivery gaps in the marketplace.

South Korea sets the bar for countries seeking to improve themselves via constant innovation and investments in technology and education.

INDIA AND SOUTH EAST ASIA India is an entrepreneurship powerhouse because of its large population, expanding tech talent, and emphasis on economic development.

Flipkart is one of India's e-commerce pioneers. It effectively adapted global concepts to meet local demands and tastes.

By making education accessible, BYJU's online learning platform personalises learning experiences for India's large student population.

Paytm's mobile payment solutions have enabled millions of people to participate in the digital economy, driving financial inclusion.

Countries such as Indonesia, Vietnam, Cambodia and the Philippines are quickly expanding startup hubs. Their young and tech-savvy populace, combined with rising smartphone penetration, are the driving forces. i

"Australia and New Zealand drive innovation in environments that value a healthy work-life balance."

118

CFI.co | Capital Finance International

Committed to the prosperity and future of Afghanistan.

> Kellogg Insight:

How Will AI Reshape Our World? It’s Really Up to Us

By Jesús Escudero. This story first appeared in Kellogg Insight

We need to be proactive to ensure AI supports — rather than supplants — human priorities, according to research by the Kellogg Institute’s Hatim Rahman.

L

et’s start with a quick guessing game: How many of the 270 jobs listed in the 1950 census have since been eliminated by automation?

A quarter? A third? “Just one,” answers Hatim Rahman, assistant professor of management and organisations at the Kellogg Institute. “And, in case you’re wondering, that job was an elevator operator.”

It’s a statistic that Rahman wants us to bear in mind as we ponder the future of the workplace — and, specifically, the fear that AI is going to lead to mass unemployment. He addressed the controversial topic at a recent Insightful Leader webinar.

His reassuring take? That decades of research have shown our fears to be largely unfounded.

(It does have a very real carbon footprint — but that’s a separate issue.)

Where we’re headed is largely up to us, Rahman says — although we’ll need to be proactive to ensure that the future isn’t chosen for us.

"Where we’re headed is largely up to us, Rahman says — although we’ll need to be proactive to ensure that the future isn’t chosen for us."

They are changing.

AI is being gradually incorporated into work streams, and new infrastructure is emerging to support it. “The more complex the technology, the more technical, human, and monetary resources are needed to develop, integrate, and maintain [it],” says Rahman.

This means that we, as a society, have time to decide how we want to AI to be used. The technology is neither good nor bad; it’s simply a tool. Much will depend on how we deploy it.

And there’s an opportunity for us to collectively decide on that.

‘RAPID’ CHANGE HAPPENS SLOWLY As much as it feels like technology advances so rapidly that we can barely keep up, it takes much longer for those changes to fully embed themselves in society. This will be true of AI, too, says Rahman. “It’s going to take a long time for it to penetrate an industry, especially in ways that will affect your career.”

We could use it to replace as many workers as possible — or to bolster talent and identify it when it goes unrecognised. We could let machines make crucial decisions about healthcare, education, and defence — or choose to keep people at the helm, ensuring that human values and priorities rule the day.

This may be cold comfort to illustrators, translators, and journalists who have already lost some of their work to generative AI. But zoom out a little, and it’s clear that while these professions are the first to be affected, they have not become obsolete.

And the opportunity to make a choice is real, rather than the result of wishful thinking. In some areas, says Rahman, we’ve already opted to prioritise human involvement. In aviation, for example. Some 90 percent of a pilot’s responsibilities can be automated, but society

has decided to keep well-trained professionals, capable of flying manually, in the cockpit. Just in case things go awry.

Automation has worked out pretty well for that sector, says Rahman. The number of working pilots, and their pay rates, have increased over the years.

But there are other voices that must be heeded when setting our priorities. Pilots have more than just training behind them: they also have strong professional organisations that advocate for them. Not all workers are so fortunate, and it’s unlikely that everyone will have the opportunity to shape employment decisions that affect them.

This is a real problem, says Rahman. “Without diverse voices and stakeholders, the design and implementation of AI has [reflected], and will reflect, a very narrow group of people’s interest.”

Much of the current discourse around generative AI has come from tech companies themselves, all eager to find profitable-use cases for their products. No surprise, then, that a lot of the way they talk about AI “is a hammer looking for a nail”, he observes: “Here are large language models. How can we use them?”

Rahman doesn’t think that approach will help humans to thrive. We should be thinking about what outcome AI is trying to measure, predict, or generate — and whether we should be using AI to make such predictions and deductions. “This is where we need diverse voices and experts in the room, answering this question.”

Rahman advises that individuals do all they can to join the conversation. Even grassroots organisations composed of like-minded laypeople can be effective at pressuring companies and

"But there are other voices that must be heeded when setting our priorities. Pilots have more than just training behind them: they also have strong professional organisations that advocate for them. Not all workers are so fortunate, and it’s unlikely that everyone will have the opportunity to shape employment decisions that affect them."

120

CFI.co | Capital Finance International

Summer 2023 Issue

"And, as it’s impossible to intelligently advocate for our own interests if we’re kept in the dark about decisions that affect us, we also need to demand transparency around how the systems are being trained, used, and double-checked." local governments to develop and deploy the technology in ways that are mutually beneficial.

And, as it’s impossible to intelligently advocate for our own interests if we’re kept in the dark about decisions that affect us, we also need to demand transparency around how the systems are being trained, used, and double-checked.

LET HUMANS BE HUMANS Rahman points out that the term artificial intelligence is a bit of a misnomer; it is neither “artificial” nor “intelligent”.

AI is trained using gigantic quantities of humanderived data, and fine-tuned by a small army of low-paid workers. Intelligent? Bots still can’t “think” in any meaningful way. Rahman says that if we were to ask a model like GPT4 several times what the fifth word in a sentence is likely to be, it will give a different answer every time. Generally, the wrong one.

AI takes human inputs and manipulates them in probabilistic ways. But it is undeniably powerful.

“AI tends to excel with efficiency, speed, and scale,” says Rahman. “AI doesn’t get tired or bored in the same way humans do.”

Conversely, he explains, humans excel at innovation, emotional intelligence, and quick adaptation to new situations. It might take AI thousands of training cycles to learn to differentiate cats from dogs; a human toddler could pick the difference up from a few illustrations in a book.

With these relative strengths and weaknesses in mind, it becomes easier to think logically about AI’s place in the world — not as a replacement for us, but as a collaborative partner, capable of amplifying whichever human values and priorities we dictate. i

CFI.co | Capital Finance International

121

> Asian Development Bank:

Pathways to Transform Food Systems in Asia-Pacific Region

By Qingfeng Zhang Senior Director - agriculture, food, nature, and rural development at ADB’s Sectors Group

I

n the Asia and Pacific region, where the highest number of people face acute food insecurity, rice prices soared by more than 40 percent last year – against a global backdrop of falling food prices.

and consumer sides of the fence. Early warning systems for extreme climate events can help farmers to better manage crops.

Incentive mechanisms should be created to shift governmental support towards Nature-based solutions and infrastructure. This includes using lakes and wetlands to treat wastewater and improve storage, “sponge” villages to mitigate stormwater run-off and extreme heat, zero tillage to conserve soil quality, mangrove protection to reduce coastal erosion and flooding, and forest maintenance to support groundwater recharge.

High rice prices hit the poorest people first and hardest; around 45 percent of Asian residents have trouble accessing healthy food. Floods in Pakistan, heatwaves in India and droughts in central Asia have worsened this. Disruptions to livelihoods are exacerbating food scarcity, and are compounded by climate-change-induced migration.

These Nature-based solutions provide a range of added benefits, including carbon storage, climate moderation, food security, and eco-tourism.

Small farmers need help transitioning to crops that are less dependent on chemical fertilizers, and using technologies such as drip-irrigation.

Enhancing infrastructure such as road networks and port facilities can help farmers to connect with international markets. Improving access to adequate storage and transport systems can reduce food waste.

Food systems have been hit by loss of biodiversity, environmental damage, and climate change.

Ecosystem degradation has put pressure on Asia’s vulnerable food-production systems. The region’s ecosystems, from tropical forests to coral reefs, have been polluted, ignored, or damaged over recent decades. Biodiversity loss leads to a worsening of climate change – and an increasing threat to food security.

Agriculture accounts for 70 percent of the world’s water resources and 50 percent of its habitable land – and causes up to 80 percent of its biodiversity loss. Emissions of methane and nitrous oxide are significant contributors to global warming.

The cost of existing global food systems stands at $3tn annually. A shift towards healthier diets, with better protection for biodiversity, could yield as much as $10tn a year in benefits, says the Food System Economics Commission.

Leading international financial institutions have agreed to address the climate-foodNature nexus by introducing coherent tracking methodology, adopting co-ordinated policy diagnoses, promoting joint knowledge-sharing, and establishing an innovation platform.

There are clear avenues for action for the AsiaPacific region. In the short term, there is a need to strengthen emergency-response mechanisms.

This should include social assistance, foodvoucher programmes, school lunches, and a countercyclical support facility to provide fastdisbursing financing.

In the medium term, the focus must be on strengthening regional co-operation to share policy and market information and jointly respond to food security risks instead of imposing export bans.

122

Author: Qingfeng Zhang

The food supply chain needs to be climateresilient, with adequate cold storage, warehousing, rural connectivity, and digital services that are affordable to farmers. The recent Pakistan and Bangladesh floods showed the importance of climate-resilient food storage.

Over the long term, developing more transparent and reliable markets will create stronger, more resilient agriculture value chains, and empower agribusinesses to become more efficient.

Better rural connectivity can support the logistics of agriculture supplies, while technologies such as remote sensing can improve land-use and management via monitoring and diagnostics.

There is also a need to promote a value-chain approach to transform systems and cover all activities related to food production and consumption.

The greatest need is to improve the supply of healthy, nutritious food. This means more education, better labelling and regulation, fortification and diversification, an emphasis on food safety, and disease prevention.

Agrifood value chains comprise activities from seed- and fertilizer production to food products in various forms. They also support extensions, research and development, technical education and training, logistics, marketing, and financing.

By viewing a series of interlinked activities as a whole, the value-chain approach can improve efficiency in primary agriculture products, the use of energy, water, land and soil, and limit carbon footprints. It can also help to ensure food safety and traceability.

Digitalisation is an efficient and inclusive way of connecting various stakeholders on producer CFI.co | Capital Finance International

There is a lot of pressure on Asia’s fragile food systems, and support must be scaled-up to help developing countries meet their challenges.

Such a method requires strong knowledge of adaptation solutions, available good-quality data, and support from development finance institutions. i

The views expressed are those of the authors and do not necessarily reflect the views of the Asian Development Bank, its management, its Board of Directors, or its members.

Spring 2024 Issue

One stop shop for all your real estate needs

Advisory Services

Real Estate Appraisals

Property Managememt

Real Estate Financing

Manage, evaluate and maximize your properties with KIB Aqari app

Download Now! CFI.co | Capital Finance International

123

> Otaviano Canuto:

China's Economic Growth is on-Target Despite Challenges

T

he IMF World Economic Outlook recently released a projection of China's economic growth of 4.6 percent and 4.1 percent for this year and next.

In 2023, after the economic reopening with the end of the “Covid-zero” policy, the rate was 5.2 percent, above the official target of five (Figure 1).

This year, the official target has again been set at five percent. The challenges approached here notwithstanding, the macro-economic performance in the first quarter of 2024 has been in sync with such a target.

Six challenges can be identified for China’s economic growth.

Figure 1: China's real GDP growth vs government's growth target. Source: NBS, JPMorgan

First, the exhaustion of the real estate sector, after having reached a quarter of the country's GDP. The restrictions placed in 2021 on developers' access to cheap credit, due to concerns about the real estate bubble, cut the boom, but also exposed the fragility of developers' assets, as seen in the case of Evergrande. Since then, there has been a sharp drop in home sales, new construction, and investment (figure 2).

The debt of local governments is another problem, because revenues from the sale of land to developers have shrunk. The degree of exposure of Chinese banks to both, with possible consequences in terms of loan losses, could negatively affect the supply of credit.

Figure 2: China's Residential Construction and Sales. Source: Douglas, J. (2024). What’s Wrong With China’s Economy, in Eight Charts,

Wall Street Journal, March 1st. Note: 12 month rolling totals.

CFI.co Columnist

A problem with domestic demand by families represents a third challenge for growth.

Chinese families took on heavy debt to buy real estate during the boom, and spending cuts accompanied the turbulence. Even though it increased last year, consumption remains on a trajectory below that before the pandemic (figure 3, left side). Measures of consumer confidence point to this.

Private investments for the domestic market, as well as hiring, accompanied this retraction.

While investment in manufacturing kept pace, it slowed in real estate and infrastructure (Figure 3, right side).

Figure 3: China's low consumption and investments. The consumption share of GDP remains relatively low in China; investment is

A fourth challenge lies in external resistance to such an increase in exports as an alternative, given that they now face geopolitical rivalry, especially in the US. Much talk has been given to a “second shock” in terms of Chinese exports, particularly because of the size of the figures.

124

grwoing faster in manufacturing but is slowing down in infrastructure and real estate.

Source: World Bank (2024). East Asia and the Pacific Economic Update, April.

Note: A. Countries with more than 1.5 million population are shown. B. Figure shows average year-on-year growth.

The Chinese lead in clean-energy tech has been accompanied by expansion in sales of electric cars (EVs). Chinese EV exports have surpassed CFI.co | Capital Finance International

Japan's, and Chinese companies are seeking to strengthen positions abroad: BYD in Brazil, Hungary, and elsewhere.

Spring 2024 Issue

Figure 4: China's deflation and capacity utilisation rates. Source: Ma, G. and Feng, P. (2024). China Spotlight - Deflation calls for more policy stimu-

lus, IIF, February 28 (left). Herrero, A. G. et al (2024). Is China’s excess capacity a problem or a solution for its economy?, Natixis, April 10 (right).

"Two reforms would have a strong effect on growth. First, reinforce social protection in order to convince Chinese people to save less. Then resume the proposal made by Hu Jintao in 2011 – left aside by Xi Jinping – to rebalance public and private companies, with a gain in productivity." for a “rebalancing” of the Chinese economy.

There would have to be a gradual redirection towards a new growth pattern, no longer associated with investment rates close to 50 percent of GDP and with domestic consumption increasing in relation to investments and exports.

An effort would be needed to consolidate local insertion in the highest rungs of the added-value ladder in global value chains. Services should also increase their weight in GDP in relation to manufacturing. There would no longer be the double-digit GDP growth rates of previous decades, but it would no longer be unstable.

Figure 5: China's demographic dicidend is over. Source: Kroeber, A. and Cui, E. (2024). How to Fight the Democratic Drag, GavekalDragonomics, February 28.

Given the low level of domestic consumption in GDP, and the dependence on investments and trade balances, the transition would run the risk of experiencing an abrupt drop in growth. To allay fears, waves of credit-driven over-investment in infrastructure and housing followed. A second round was implemented in 2015–2017 in response to a housing slowdown and stock market decline. In addition to the expansion policies adopted during the pandemic crisis in 2020, of course.

Figure 6: China's growth despite the property sector drag - manufacturing investment and exports are still holding up growth.

Source: He, W. et al (2024). The Middling Growth Trap. Gavekal Dragonomics, April 16.

But the risks of facing additional market access restrictions are high.

The insufficiency of aggregate demand in China has been manifesting itself in the form of domestic deflation. Consumer prices have been stable or falling for months and companies have been reducing prices for more than a year (Figure 4 – left side). Idle capacity is high in many sectors, reflecting the excess investments relative to levels of demand (Figure 4 – right side).

The high youth unemployment rate provides a source of work to be employed, but this does not change the direction on the issue of the proportion of Chinese people of non-productive age.

To understand how the first four challenges intertwine, it’s worth going back to the beginning of the last decade.

In December 2011, then-president Hu Jintao made one of the first statements about the need CFI.co | Capital Finance International

Two reforms would have a strong effect on growth. First, reinforce social protection in order to convince Chinese people to save less.

Then resume the proposal made by Hu Jintao in 2011 – left aside by Xi Jinping – to rebalance public and private companies, with a gain in productivity.

Such reforms do not seem to be on the front line. Despite the challenges, China’s economic growth path remained steady in the first quarter of the year. Exports, manufacturing investment and travel-related consumer spending compensated for the drag from the property sector (Figure 5), so far lifting the chances of achieving the target of “around five percent” GDP growth this year. i 125

CFI.co Columnist

A fifth challenge concerns the radical change in the mood of foreign investors. Since the third quarter of 2023, China's balance of payments has recorded a net outflow of almost $12bn in direct investment, due to asset sales or nonreinvestment of profits. Portfolio investments, shares and debt securities also changed signs.

Demography constitutes yet another challenge.

The increase in the supply of workers accompanying rapid urbanisation has reached its limit. The ongoing population decline, with a growing share of the population out of the job market, means – as in many other parts of the world – the end of the demographic dividend (Figure 5).

The decline in Chinese GDP growth rates was six percent in 2019. Now, however, the lever of over-investment in real estate and infrastructure is running out. Not only because of the debt levels, but also because returns in terms of GDP growth were declining.

> José Antonio Ocampo:

Finishing the Job of Global Tax Cooperation © Project Syndicate 2024

This year’s Spring Meetings of the World Bank and the International Monetary Fund, and the followup United Nations Forum on Financing for Development, have put international tax cooperation high on the global agenda once again. Brazil has declared that it will use its G20 presidency to advance the issue (whereas last year’s New Delhi G20 summit made no mention of it), and the second phase of UN negotiations toward a global tax convention is now underway.

T

he earlier OECD/G20 Inclusive Framework helped advance this issue in two ways: it stipulated that very large multinational corporations should pay taxes in all the places where they operate (Pillar One of the agreement); and it held there should be a minimum 15% global corporateincome-tax rate (Pillar Two). But implementation has been slow, and even if most parties to the agreement sign the multilateral treaty necessary for Pillar One, the United States is unlikely to secure the two-thirds Senate majority required for ratification. Given that many of the world’s largest tech firms are headquartered in the US, the deal would be written in water, and the global digital economy would remain under-taxed.

Final Thought

Moreover, the benefits of the Inclusive Framework are expected to accrue mainly to developed countries, which is why the African Union subsequently pushed for negotiations toward a global tax convention at the UN General Assembly. The UNGA resolution was adopted last November, albeit along a sharp North-South divide, with most developed countries voting against it (Norway and Iceland abstained) and almost all developing countries voting in favor.

Now that UN negotiations are proceeding, they should focus first on improving the Inclusive Framework. The best way to achieve Pillar One is to create a broadly applicable rule based on the principle of “significant economic presence,” whereby multinationals would be obliged to pay all taxes, including sales and income taxes, on the profits they make from their activities in all countries. This rule should be supported by a mechanism to apportion multinationals’ global profits between countries, as several federal countries already do within their own borders.

Equally important, the minimum tax rate should be higher – rising at least to 21%, as the US proposed in the OECD negotiations, or preferably to 25% (the average rate across richer countries).

Finally, there should be as few exceptions as possible (preferably none) to the minimum rate.

This year’s spring meetings also featured debates over a proposal to levy a 2% annual wealth tax on the world’s super-rich. Having been backed

by Brazil, this proposal most likely will be on the G20 agenda, too. Considering that the super-rich 126

"If anything, the UN negotiations should aim for an even broader minimum tax on the richest people in all countries, with an additional wealth tax complementing income taxes." generally pay very low taxes, the case for it is strong. A recent study by the EU Tax Observatory, led by Gabriel Zucman of the University of California, Berkeley, shows that a 2% global wealth tax on the world’s billionaires (roughly 3,000 people) would raise $250 billion annually.

If anything, the UN negotiations should aim for an even broader minimum tax on the richest people in all countries, with an additional wealth tax complementing income taxes. This is necessary because wealth is more concentrated than income, and it benefits from many exemptions and exceptions, such as the lower rate on capital gains in the US and other countries.

During my recent stint as Colombia’s minister of finance, lawmakers approved the government’s proposal to introduce a wealth tax on top of the country’s income tax, demonstrating that such measures are politically achievable at the national level. But it will take greater international cooperation – a coordinated minimum tax, taxes on people and firms that have moved their residence abroad, and more exchanges of information between tax authorities – to ensure that the richest people everywhere pay their fair share.

In fact, the agenda of the UN tax convention should be broader. The Independent Commission for the Reform of International Corporate Taxation (ICRICT), on which I serve, has also called for common principles and minimum standards for taxing income and wealth; international coordination on windfall or excess profits; measures to strengthen anti-avoidance instruments; new mechanisms for coordinated digital service taxes; and public country-bycountry reporting of taxes paid by multinationals.

One might also add a standard minimum tax on the exploitation of natural resources, as CFI.co | Capital Finance International

several developing countries are giving foreign companies tax incentives for that purpose (a truly irrational policy decision).

Another ICRICT proposal would provide greater transparency of wealth ownership by creating a global asset registry that lists final beneficial owners (based on the information that national tax authorities and other public-sector agencies hold). Such transparency is crucial for effectively implementing any of the other tax proposals for capital income and wealth.

Finally, the UN Committee of Experts on International Cooperation in Tax Matters should be transformed into a formal intergovernmental body, as this will be essential to strengthening and sustaining international cooperation. Though this proposal was previously defeated in 2004 and 2015, the expert committee was at least strengthened on those two occasions, and now momentum for an intergovernmental organ is building once again.

So far, global negotiations on tax matters have been confined to the OECD/G20 Inclusive Framework, which has more than 140 members, but lacks the UN’s universal membership. The UN should now work together with the OECD to strengthen international tax cooperation.

While developed countries voted against the African Union resolution last November, they are participating in the new negotiations.

At a time when the world is becoming more multipolar and fragmented, reforms to the international tax architecture – through a UN global tax convention and the G20 resolutions – can breathe new life into multilateralism, as well as help countries mobilise the resources they need to provide social services, build infrastructure, and strengthen resilience against climate change. i ABOUT THE AUTHOR José Antonio Ocampo, a former United Nations under-secretary-general and a former minister of finance and public credit of Colombia, is a professor at Columbia University, a member of the UN Committee for Development Policy, and a member of the Independent Commission for the Reform of International Corporate Taxation.

Spring 2024 Issue

INTERNATIONAL BANKING

ONE, THROUGH MANY.

Africa is synonymous with opportunity, growth and challenges.

But to us, africa means home. A home that we share with fellow africans, a home whose boundaries are indiscernible to us.

The community is at the heart of every move we take and our philosophy aligns with the ancestral african ubuntu philosophy that spreads across the continent: i am because we are.

We are proud. We are determined. We are skilled.

We are stronger, together. We are one, through many.

Bank One International Banking

FitchRatings “BB-” with a Stable Outlook (23 June 2023)

Bank One Waterfront, Astrolabe Building, Port Louis Waterfront, Mauritius T: +230 202 9200 | E: SalesteamIBD@bankone.mu bankone.mu/international Bank One Limited is licensed and regulated by the Bank of Mauritius A Joint Venture of I&M Group PLC & CIEL Finance Limited.

CFI.co | Capital Finance International

127

The Alternative Credit Investor with a Northern-European focus Providing financing solutions for lower mid-market businesses, with superior returns and low structural risk

SUPPORTIVE. TAILORED. SOLUTIONS. 128

CFI.co | Capital Finance International