Global Business Roundup: October 28–November 10
Industrial policy, political transition, and tech investments
Indonesia has banned sales of the iPhone 16 and Google Pixel for failing to meet domestic content requirements. Under Indonesian law, tech companies must source 40 percent of handset and tablet components domestically. This requirement can be met via local manufacturing, firm development, or investment in innovation projects. While Samsung has established manufacturing facilities, Apple has opted to open developer academias. This is part of Indonesia’s broader industrial policy to leverage its large consumer market for economic development.
Pakistan has become a key supplier of sesame seeds to China in recent years, as conflict in former exporting countries—such as Sudan and Ethiopia—has disrupted their ability to supply. In recent months, however, these exports have been slashed by over half. This is due in part to rival exports such as Brazil and Niger scaling up production, fueled by high demand from China, leading to a drop in global sesame seed prices. Exporters believe Pakistan will need to target high-end markets such as South Korea and Japan to compensate the loss of Chinese business.
The Botswana Democratic Party (BDP), which has been the ruling party since the country’s independence 58 years ago, has lost power. Recent poor economic growth and high unemployment dented the BDP’s popularity. It will now be replaced by the Umbrella for Democratic Change, a party pledging well-paying jobs and wealth distribution across the diamond-rich nation. The party has specifically committed to creating half a million jobs in the next five years, a pledge that has made it attractive to young voters.
Back in October, Google officially opened its first Saudi office in Riyadh. The conglomerate has since unveiled plans to establish an advanced AI hub in Saudi Arabia. This is part of an ongoing commitment to fostering innovation in the region, strategically aligned with the Kingdom’s Vision 2030. Not only will this serve as a hub for training local talent, but it will also develop localized AI solutions tailored to unique regional needs. This may contribute as much as $71 billion to Saudi Arabia’s economy.
Nigeria-based fintech company Moniepoint recently raised $110 million in funding from various investors, including Google. Since 2015, the startup has offered payment solutions for financial institutions, recently expanding to personal banking services. Moniepoint is now believed to be valued above $1 billion, giving it “unicorn” status. With the injection of new capital, the company plans to scale up digital payments and banking solutions across Africa.
Exxon Mobile has agreed to sell most of its assets in Argentina. This is the latest in a series of exits by foreign companies, amidst long-standing political and economic turmoil in the country. This is despite rising oil production in recent years, a vital source of foreign earnings for the nation’s struggling economy. In response, the country is attempting to encourage foreign investment via subsidies on shale gas.