Emerging markets in Latin America, Africa, and Asia have shown tremendous potential for growth and development in recent years. These regions are home to some of the fastest-growing economies in the world and have become increasingly attractive to foreign investors seeking new markets and opportunities.
Let's start with Latin America
The region has emerged as one of the most promising regions for economic growth in recent years, with a combined population of over 580 million people. It is home to some of the world's largest economies, including Brazil, Mexico, and Argentina. These countries have implemented structural reforms and policies to promote economic growth and development, significantly increasing foreign investment and job creation.
In recent years, Latin America has also seen a rise in entrepreneurship and innovation, particularly in the technology and startup sectors. Countries such as Colombia and Chile have become hubs for technology startups, with many young entrepreneurs developing innovative solutions to address social and economic challenges.
Furthermore, the growing middle class in Latin America presents a significant market opportunity, especially for e-commerces offering physical and digital goods.
Technology is driving new financial solutions all over Africa
Talking about Africa, one of the key drivers of economic growth in the continent has been the rise of mobile technology. Mobile phones have become ubiquitous across the continent, with more than 80% of the population having access to a mobile phone. This has opened up new business opportunities to reach consumers, particularly in rural areas where traditional retail channels may be limited.
Due to that, we are seeing exponential growth of mobile money solutions that are supplying the lack of credit and debit card access across the continent. In Kenya, for instance, credit card penetration is only 6%, while mobile money account penetration is reaching 76% of the population.
Asia will continue to be one fastest-growing regions in the world
The region is home to some of the world's largest economies, including China, India, and Indonesia. But in addition to its largest economies, Asia is also home to several emerging economies with significant growth potential. Malaysia has shown an excellent economic recovery after the pandemic and had a GDP (Growth Domestic Product) of 8.7% in 2022. One of the drivers for this growth is consumer spending growth.
According to The Diplomat, private consumption In Malaysia grew 7.4% in the fourth quarter of 2022. While in Indonesia, household consumption rose 4.9% for the year, with the most significant increases in transportation, with 9.4%, and restaurants and hotels, with 6.6%.
Payments can be a gateway to emerging markets
The dormant opportunity in emerging economies represents a new market for companies willing to expand their businesses. Expanding abroad is complex, but it can be done with good planning and the right partners.
Payment solutions can play a significant role in expanding and maintaining your company's success in foreign countries. Offering good payment gateways can be the key to a good user experience, especially in e-commerce.
dLocal Go can help you to land and succeed in new markets with a simple solution for payment gateways in several emerging countries. Learn more about dLocal Go's platform or contact us for more information.