Mark Mobius: the role of technology in growing markets … – Portugal Funds People

Funds People | September 18, 2014 hrs.

 The impact of technology on the development of emerging and frontier markets is a subject of ongoing analysis for Mark Mobius . However, the latest monthly report from Franklin Templeton Investments the famous guru marks a new feature: “ the ability of new technology , especially that which is related to data on the Internet, to overcome much of the technology and the oldest commercial activity, creating the possibility that the advance is dramatic. “

 

 Examples are given as money transfer by mobile phone system that exists in Kenya , which eliminates the need for a physical office and banking “whose ease of use has caused an explosion of additional activities in trade, in savings and loans, assuming about a quarter of Kenya’s GDP and that includes over half of the population “; or holograms used by Narendra Modi during the election campaign, and that allowed him to perform in direct speeches simultaneously and at different sites. Therefore, technology is changing the rules of the game in these regions .

 

 In India , for example, where a nationalist legislation and an impossible bureaucracy, fought the entry of large chains and “ online stores gain prominence in the Indian retail market . Mobius points out that these business models, oriented primarily to an urban audience and agile with technology, “reported very high levels of demand in rural areas. Suddenly the retailers Indians can reach a base of millions of customers with a limited level of capital investment , which highlights the tremendous potential of any project relatively simple infrastructure. “

 

 The specialist do not bleach the importance of investment and infrastructure development in these countries. “These economies still need a basic level of power generation and transport routes, to function effectively. Lack also makes investing in education for the population that it secures the necessary tools to participate in the global market, “he explains. “ We believe that many industrial activities will continue to require a high initial capital investment , but a wide range of activities, especially consumer, technology and the internet are contacting buyers and sellers pace face an unthinkable 10 years ago, which could be beneficial to both the population of developing markets for business as created to serve “.