Theme Selected: Challenges Facing Growth in Emerging Markets

From macro volatility to logistics gridlock, we explore the real-world hurdles that shape growth trajectories across emerging markets—and the resilient strategies leaders use to keep moving forward. Join the conversation, share your experiences, and subscribe for future deep dives on overcoming these challenges together.

Macroeconomic Headwinds and Currency Volatility

Imported Inflation and Everyday Pricing Pain

When currencies slide, importers feel it first—and consumers soon after. A food distributor in Accra told us he rewrites shelf labels weekly, renegotiates shorter payment terms, and builds small safety margins into orders. It is exhausting but necessary to keep essential items affordable and cash flowing.

Commodity Dependence and Sudden Terms-of-Trade Shocks

Many economies still hinge on a few commodities, so price swings ripple across budgets, jobs, and credit. When cocoa, copper, or oil wobble, tax revenues shrink and public projects stall. Diversifying exports takes patience, new skills, and infrastructure—yet the cost of waiting is even higher during downturns.

Hedging, Forecasting, and Cash Discipline Under Stress

Forward contracts, natural hedges, and tighter cash cycles help, but they require discipline and data. One CFO in Phnom Penh set weekly micro-forecasts, shaved days off receivables, and paired USD sourcing with USD sales where possible. The result was fewer surprises, calmer sales teams, and steadier supplier trust.

Infrastructure Gaps and Logistics Bottlenecks

A textile mill in Dhaka installed generators after repeated blackouts ruined production runs. The capital cost was painful, but downtime was worse. They now schedule heavy loads during off-peak hours, monitor fuel efficiency daily, and pilot rooftop solar to stabilize costs. Reliability, they learned, sells as much as price.

Infrastructure Gaps and Logistics Bottlenecks

Container dwell times, manual paperwork, and unpredictable inspections stack up costs. A mango exporter missed European shelf windows when a border closed early, turning ripe fruit into losses. Digital customs, pre-clearance, and better cold chain links matter. Small procedural fixes can save entire seasons for perishable goods.

Regulatory Uncertainty and Governance Risks

Overnight taxes, import restrictions, or licensing shifts can freeze investment and marketing. A beverage company paused a national campaign after label rules changed mid-rollout, redirecting budget to legal reviews. Scenario planning, contingency inventories, and candid conversations with distributors helped them restart with fewer costly surprises.

Regulatory Uncertainty and Governance Risks

Integrity is a competitive advantage where doubt runs high. A founder in Karachi refused facilitation fees, digitized procurement, and opened supplier tenders to public audits. It was slower initially, but employee pride, investor confidence, and bank terms improved. Transparency pays, and it compounds over time.

Finance, Capital Access, and FX Controls

High Interest Rates and Shallow Local Markets

An SME bakery in Lima compared microfinance rates with supplier credit and realized predictable flour terms beat cash loans. They added pre-order discounts for cafes to fund inventory. Blending trade credit, supplier partnerships, and careful pricing gave them breathing room without surrendering too much equity too early.

Foreign Exchange Controls and Repatriation Risks

When dividends get trapped or approvals stall, investors lose patience. A regional treasury diversified banking partners, kept modest offshore buffers, and synchronized capex with clearer funding windows. It reduced stress and improved transparency with boards. Clear rules help, but disciplined cash mapping helps even more during uncertainty.

Fintech, Mobile Money, and New Rails

QR payments help micro-merchants record sales, yet working capital still lags for many. One distributor shared anonymized sales data with a lender to unlock dynamic limits tied to real turnover. The rates were not perfect, but speed and flexibility made growth possible without missing peak season demand.

Talent, Education, and the Skills Mismatch

A garment plant in Addis Ababa launched apprenticeships pairing shop-floor mentors with vocational students. Early defects rose, then plunged as teams standardized workflows. Graduates advanced quickly, loyalty improved, and scrap fell. Practice beats theory when machines, materials, and pace are real. Apprenticeship pipelines turned out to be a win.

Talent, Education, and the Skills Mismatch

While talent emigrates, diaspora networks can still power local growth. A fintech in Lagos arranged remote mentoring with professionals abroad, then hired returnees to scale compliance and risk. Knowledge flowed home without forcing relocation, building confidence with regulators and banks. Mobility became an asset, not just a loss.

Talent, Education, and the Skills Mismatch

Growth stalls without capable supervisors translating strategy into daily routines. A packaging plant introduced five-minute morning huddles, simple visual dashboards, and weekly coaching. Output steadied, quality complaints dropped, and hiring pressure eased. Training managers to teach others is the multiplier that keeps improvements alive under pressure.

Climate, Shocks, and Building Resilience

A farmer cooperative adopted index insurance bundled with mobile money. Payouts triggered after rainfall thresholds, not paperwork battles. Members stabilized cash flow, financed better seed, and negotiated volume discounts. It was not perfect, but it moved risk from guesswork to predictable protection and kept planting schedules intact.

Climate, Shocks, and Building Resilience

Manufacturers selling into stricter markets face reporting burdens and rising costs. A metals exporter mapped emissions, upgraded metering, and documented energy sources to maintain access. Compliance felt daunting, but it preserved customers and unlocked a pilot with greener inputs. Transparency created credibility in negotiations on price and timelines.