Raiffeisen Certificates: Two Decades of Passion, Precision and Purpose

Built on passion, guided by prudence, and sustained through innovation, Raiffeisen Certificates has become one of Central Europe’s most trusted names in structured investments. Over two decades, the franchise has grown into a hallmark of integrity and reliability, driven by a culture that fuses capital markets expertise with a deeply human approach to client service.

When Raiffeisen Bank International (RBI) integrated its certificates business in 2022, the transition was less about structural change and more about reinforcing a legacy. The team behind Raiffeisen Certificates — already one of the most experienced and respected in the region — has spent twenty years cultivating an investor base built on trust, education, and product excellence. Today, their success story is defined as much by culture as by performance.

“Do what you do with passion,” says a senior representative of Raiffeisen Certificates. “Our team would not have achieved so much if we viewed our work merely as a job. We are united by our enthusiasm for the capital markets and for certificates in particular. Our customers and sales partners feel that passion — it is the key to our success.”

A Culture of Continuity

The shift from Raiffeisen Centrobank (RCB) to RBI was a milestone, but not a disruption. “Honestly, not much has changed,” the representative explains. “We are still the same coordinated and experienced team, operating close to our customers’ needs. During integration, it was crucial that neither product quality nor customer service suffered. Clients care about the value we deliver, not about our internal structure.”

That commitment has paid off. Since the integration in December 2022, Raiffeisen’s certificates business has grown strongly, reflecting both customer loyalty and the enduring relevance of structured products in the modern investment landscape. “Our customers have stayed with us because we’ve remained focused on their needs,” the representative adds. “Stability, transparency, and quality are constants in how we operate.”

Product Integrity and the Long Game

In a retail-heavy market, where short-term performance often overshadows long-term value, Raiffeisen Certificates stands out for its emphasis on product integrity. “The best customers are satisfied customers,” the representative says. “Those who have positive experiences with their certificates are more likely to reinvest. That’s why we prioritise diversified underlyings and adequate safety mechanisms that give investors peace of mind.”

This client-centric design philosophy is not just about compliance — it’s about building durable relationships. Certificates are crafted with a strong focus on suitability across market cycles, with red lines drawn where leverage or structural complexity could compromise investor trust. In an era where financial innovation can sometimes blur the line between creativity and risk, Raiffeisen’s disciplined approach ensures that innovation never comes at the expense of integrity.

Managing Volatility with Confidence

As Head of Certificates and Equity Trading, the representative oversees operations in markets where pricing, inventory, and hedging are constantly tested by volatility. The response is a blend of cutting-edge technology and human discipline.

“Controls are key,” they note. “We maintain robust risk management frameworks, real-time monitoring systems, and effective communication channels within our trading team. Efficient hedging requires state-of-the-art pricing models that reflect market conditions in real time.”

That rigour was tested in April 2025, when markets surged following U.S. tariff announcements. “Volatility spiked — but we saw inflows into Raiffeisen certificates on every single trading day. That tells us our systems and our clients’ confidence held strong. Investors recognised the advantages of certificates in turbulent markets.”

Educating Investors, Building Confidence

Education has been central to Raiffeisen Certificates’ mission since its inception. The firm recognises that behavioural biases often lead investors to misjudge risk and opportunity. “Many retail investors focus only on the risks of the capital markets and miss the opportunities,” the representative says. “Others want to invest but wait endlessly for better entry points — meanwhile, the market moves on.”

For such investors, capital-protection certificates provide a vital entry bridge into markets. They offer exposure with defined safety mechanisms, allowing first-time investors to participate confidently. Raiffeisen’s emphasis on accessible, transparent education has made certificates a gateway product for thousands of clients who might otherwise remain on the sidelines of investment markets.

Setting Standards, Shaping the Industry

Beyond its client base, Raiffeisen Certificates plays a leading role in setting standards for the European certificates market. The representative, active within both EUSIPA and Austria’s Zertifikate Forum Austria (ZFA), is a long-time advocate of pragmatic regulation.

“I am not opposed to regulation,” they clarify. “But balance is crucial — where does legitimate consumer protection end, and where does overregulation begin? In some cases, self-regulation is the more effective path.”

They point to the EUSIPA Principles as a milestone in establishing ethical and operational standards for the industry. “Still, I believe the best investor protection is financial education. That must begin in schools. Unfortunately, many European countries still lag in that regard.”

They also highlight the EU’s Savings and Investment Union (SIU) as an important step toward mobilising retail investors. “Certificates can play a major role in bringing individuals into capital markets in a secure, structured way.”

Nurturing Talent, Nurturing Trust

For Raiffeisen Certificates, people are as important as products. “We have two key assets — the competence of our team and the trust of our customers,” the representative explains. “Both must be continuously nurtured.”

The company’s leadership philosophy combines high expectations with continuous development. “I focus on challenging and supporting,” they add. “Young professionals need honest feedback to grow. Passion, meticulousness, and a willingness to learn are non-negotiable. The best structurers and market-makers are those who stay curious.”

This emphasis on mentorship has created a culture of consistency — where innovation is grounded in experience, and experience is continually renewed through talent development.

Harnessing Digital Tools

Technology has also been instrumental in strengthening Raiffeisen’s agility. “Our advanced pricing engines and scenario visualisers have drastically shortened time-to-market,” the representative notes. “They help us assess multiple scenarios in advance, enabling rapid, informed decision-making — especially during volatility.”

Automation, they say, has not replaced human judgement but enhanced it. “It allows us to focus our expertise where it matters most — on client outcomes and strategic innovation.”

Passion with Purpose

Today, Raiffeisen Certificates stands as a model of resilience in a rapidly evolving market. Its foundations — passion, discipline, and education — remain as relevant as ever. From its stronghold in Austria, the franchise continues to expand across Central and Eastern Europe, offering investors a blend of safety, flexibility, and transparency.

“Our growth reflects one simple truth,” the representative concludes. “When you operate with integrity and passion, success follows. We’ve built this business over twenty years not just on products, but on people — our team, our partners, and our clients. That’s what makes Raiffeisen Certificates what it is today.”


Building with Passion: How Heike Arbter Shaped Raiffeisen’s Certificates Franchise

As Head of Raiffeisen Certificates, Heike Arbter has spent two decades building one of Europe’s most respected structured products franchises. Her leadership philosophy — rooted in passion, prudence, and precision — continues to guide Raiffeisen’s evolution in a dynamic market.

Over the past twenty years, Heike Arbter has helped transform Raiffeisen’s certificates business into a cornerstone of Austria’s retail investment landscape. As Head of Certificates and Equity Trading at Raiffeisen Bank International (RBI), she attributes this success not to strategy documents or technical systems, but to something simpler — passion.

[caption id="attachment_28026" align="aligncenter" width="900"] Head of Raiffeisen Certificates: Heike Arbter[/caption]

“Do what you do with passion,” she says. “Our team would not have achieved so much if we saw our work merely as a job. We are united by our enthusiasm for capital markets and for certificates in particular. Our customers and partners feel that passion — it’s the key to our success.”

Integration and Continuity

When the certificates business moved under the RBI umbrella in December 2022, Arbter ensured that this culture of excellence remained intact. “Honestly, not much has changed,” she reflects. “We are still the same experienced team, operating close to our customers’ needs. For me, it was crucial that integration did not affect our product quality or customer service.”

Her insistence on continuity paid off. Since the integration, Raiffeisen’s certificates business has recorded robust growth, underscoring its reputation for reliability in a shifting regulatory and market environment. “Our customers are not concerned with our internal structure,” Arbter adds. “They care about the value we deliver.”

Product Integrity and Investor Confidence

In an industry where complexity can easily blur suitability, Arbter’s team draws firm “red lines” around structure design. “Satisfied customers are the best customers,” she explains. “Those who have positive experiences with their certificate investments are far more likely to invest again. That’s why we prioritise diversified underlyings and robust safety mechanisms.”

Her approach reflects a long-term philosophy that values suitability over short-term sales. It is a principle that has helped Raiffeisen maintain investor confidence across market cycles — particularly in a retail-heavy market where trust is everything.

Resilience in Volatile Markets

As Head of Certificates and Equity Trading, Arbter oversees a complex ecosystem of pricing, hedging, and liquidity management. She describes the backbone of this system as a combination of “robust risk frameworks, real-time monitoring, and clear communication.”

When volatility struck following President Trump’s tariff announcements in April 2025, the stress test was immediate. “We saw increased volatility — yet on every single trading day, inflows into Raiffeisen certificates exceeded outflows,” Arbter notes. “It was a strong validation of our controls, and of investor confidence in our secondary market performance.”

Education and Behavioural Insight

For Arbter, investor education remains the most powerful form of protection. “Many retail investors focus too much on risks and overlook opportunities,” she observes. Others, she says, “want to enter the market but wait endlessly for better prices.” For these hesitant investors, capital-protected certificates provide a structured way to gain confidence in capital markets.

Her advocacy for education extends beyond Raiffeisen. As a long-standing voice in industry associations, she has helped shape European standards aimed at improving investor understanding and trust.

Regulation and Self-Governance

Arbter’s perspective on regulation is pragmatic. “I’m not against regulation,” she says. “The right balance is what matters — knowing where legitimate consumer protection ends and overregulation begins.”

As chair of both EUSIPA and Austria’s Zertifikate Forum Austria (ZFA), she has been instrumental in advancing self-regulatory initiatives. “The EUSIPA Principles represent a milestone for our industry,” she notes. “But I believe good financial education is the best investor protection — and it must start in schools. Unfortunately, many European countries still have a significant gap there.”

She is also a strong supporter of the EU’s Savings and Investment Union (SIU) initiative, which aims to bring more retail investors into capital markets. “Investment certificates can play a major role in that effort,” Arbter asserts.

Talent and Team Culture

Asked what defines a best-in-class structurer or market-maker, Arbter’s answer combines rigour with empathy. “I focus on challenging and supporting,” she says. “Young professionals need honest feedback — it’s how they grow and contribute to the team’s success.”

For her, the team’s strength lies in passion, precision, and a willingness to learn continuously. “Our two greatest assets are our people and our clients’ trust,” she emphasises. “We must nurture both, always.”

The Digital Edge

Technology, too, plays an increasingly central role. “Advanced pricing engines and scenario visualisers have significantly shortened time-to-market while keeping model risk under control,” Arbter explains. “They allow us to test different scenarios in advance, enabling efficient and well-informed decisions — especially during volatile market phases.”

Automation, she adds, has not diminished human oversight but enhanced it, freeing experts to focus on innovation and client value.

Looking Ahead

Two decades on, Arbter’s influence on Raiffeisen’s structured products franchise is clear. Under her stewardship, it has evolved from a niche business to a trusted brand synonymous with reliability, education, and integrity.

As European retail investors seek transparency and protection in equal measure, Arbter’s philosophy — combining technical excellence with human passion — offers a model for the next generation of market leaders.

“Ultimately,” she says, “our success comes from trust — trust in our people, our products, and our purpose. That’s what keeps clients coming back, and that’s what will shape the next twenty years.”


Chris Taylor: Visionary Leadership in Digital Transformation in Finance - UAE 2025

CFI.co is pleased to present Chris Taylor, Chief Executive Officer of Deem Finance, with the 2025 Award for Visionary Leadership in Digital Transformation in Finance (UAE). The judging panel commended Taylor’s exceptional ability to guide a complex transformation — repositioning Deem as a purpose-led, digitally driven financial institution defined by inclusion, innovation, and impact.

[caption id="attachment_28060" align="aligncenter" width="900"] CEO: Chris Taylor[/caption]

Under Taylor’s stewardship, Deem Finance has reimagined what it means to be a non-bank lender in the UAE. Guided by a clear purpose to serve the underserved and underbanked, Deem has adopted a bold partnership-led model that accelerates innovation without the constraints of traditional in-house build cycles. By collaborating with fintechs and technology providers, the company has rolled out AI-enabled, data-driven solutions that extend meaningful financial access to both consumers and small businesses — swiftly, responsibly, and at scale.

The judging panel noted that Deem’s transformation under Taylor has blended strategic clarity with social purpose. “Deem Finance deploys alternative data and closed-loop designs to extend responsible credit to low-income workers and micro-enterprises while reducing cash frictions and risk,” the panel observed. “Retail initiatives such as nano-loans and earned-wage access solutions provide short-term liquidity for blue-collar workers earning around $1,000 per month. On the SME side, Deem is digitising FMCG supply payments by embedding commercial credit within a beverages app — offering up to 50-day terms and eliminating costly cash collection.”

Taylor’s approach to digital transformation has been both pragmatic and visionary. Rather than pursuing technology for its own sake, he has fostered a culture of experimentation and cross-functional ownership. Small-scale proofs of concept, agile execution, and a responsible approach to AI adoption have become part of Deem’s DNA. Internally, AI now monitors call quality and flags service issues in real time — a deployment that has tangibly improved customer satisfaction while building institutional confidence in data-driven decision-making.

Funding partnerships have been instrumental to sustaining this momentum. Under Taylor’s leadership, Deem strengthened its capital base through a landmark USD 400m securitisation facility arranged with J.P. Morgan — a deal that stands as a testament to investor confidence in Deem’s governance, scale, and long-term strategic direction.

Deem’s transformation is rooted not only in digital sophistication but also in a deep sense of purpose. As the company expands its footprint, it remains focused on democratising access to credit, empowering small businesses, and contributing to the UAE’s broader financial inclusion and digital economy agenda. This alignment between institutional purpose and national vision has helped Deem emerge as a model of responsible innovation in the region’s evolving financial ecosystem.

In the words of the CFI.co judging panel:

“Deem Finance exemplifies how visionary leadership can unite purpose with performance, innovation with prudence, and technology with humanity.”

CFI.co extends its congratulations to Chris Taylor and the Deem Finance team for their outstanding contribution to transforming financial access in the UAE — demonstrating that the future of finance is not only digital, but also inclusive, sustainable, and profoundly human.


Deem Finance: Driving Financial Inclusion and Digital Transformation in the UAE

Deem Finance has established itself as one of the UAE’s most progressive non-bank financial institutions — redefining inclusion and innovation in a rapidly digitising economy. Guided by a clear purpose to serve the underserved and underbanked, the company is enabling individuals and small businesses to access finance responsibly and sustainably.

Empowering the Underserved Through Digital Innovation

Founded in 2008–09 and now part of the Gargash Group, Deem Finance has become a driving force for equitable financial access in the UAE. Under the leadership of CEO Chris Taylor, the company has reimagined lending through technology and strategic partnerships, ensuring that those often excluded from traditional finance can participate fully in the digital economy — with confidence and dignity.

Digital adoption is accelerating among the very segments once considered “hard to reach.” For Deem, this shift is proof that its partnership-led model is building trust. Through collaborations with fintech innovators, Deem has helped thousands transition from cash dependency to digital engagement — a transformation closely aligned with the UAE’s national goal of becoming a cashless society.

Responsible Finance: Liquidity with Dignity

One of Deem’s most impactful initiatives is its Earned Wage Access (EWA) programme, developed in partnership with MyZoi. Through this model, Deem acts as a liquidity provider, allowing employees to access a portion of their earned salaries before payday. Crucially, this is not new debt — it is responsible liquidity based on wages already earned, protecting workers from informal lending and high-interest debt traps.

When the EWA programme launched, 98 percent of users withdrew cash via ATMs. Today, that figure has dropped to just over 50 percent — with a target of zero — illustrating a powerful behavioural shift towards digital payments, remittances, and wallet-based services. As one of the early pioneers in this space, Deem has proven that financial inclusion can be achieved without compromising prudence or sustainability.

“Most of us go about our daily lives never touching cash — why shouldn’t those in lower-income segments or small businesses benefit from the same convenience and trust in digital services?”

— Chris Taylor CEO, Deem Finance

Supporting Small Businesses and Local Economies

Deem’s community impact extends beyond consumers. Through its FMCG embedded finance model, the company provides credit lines to small shopkeepers and restaurant owners to purchase inventory directly from beverage and fast-moving consumer goods suppliers.

This digital financing model offers SMEs up to 50 days of credit, allowing them to sell goods before payments are due — improving cash flow, enhancing profitability, and reducing reliance on informal borrowing. By empowering small enterprises to manage working capital efficiently, Deem is strengthening the backbone of local economies and advancing digital inclusion at the community level.

The strategy has earned recognition from both the market and investors. A landmark USD 400m securitisation facility with J.P. Morgan — a first-of-its-kind transaction for a UAE non-bank lender — underscores investor confidence in Deem’s strong governance, disciplined credit culture, and scalable digital model.

Building Trust Through Partnerships and Technology

Deem’s transformation is built on collaboration. By partnering with leading fintechs and technology providers, the company has accelerated innovation and brought new solutions to market at pace. This partnership-driven approach has enabled Deem to leverage AI, behavioural analytics, and alternative data to extend responsible credit while improving customer experience.

Internally, the company deploys AI-powered quality monitoring to analyse service calls and ensure customer interactions remain empathetic, compliant, and efficient. This disciplined use of technology builds confidence among both customers and employees, creating a financial institution that is agile, transparent, and inclusive by design.

A Purpose-Driven Brand for a Digital Future

Deem’s journey is guided as much by its values as by its technology. Every initiative — from nano-loans and wage-access programmes to SME trade financing — reinforces a deep commitment to responsible lending and long-term sustainability. Its strategy embodies a clear brand promise: to empower people with fair, transparent, and accessible financial solutions that improve everyday life.

As the UAE accelerates its transition toward a cashless, digital-first economy, Deem Finance stands at the forefront — bridging inclusion with innovation, and purpose with performance. Its success story demonstrates that when finance is driven by empathy, integrity, and innovation, it can be both commercially sustainable and socially transformative.

CFI.co congratulates Deem Finance on its leadership in digital inclusion and responsible lending — a model for how purpose-driven innovation can power sustainable financial ecosystems across emerging markets.


Driving Digital Transformation: Nepal SBI Bank Leads Nepal’s Banking Revolution

With a pioneering spirit and deep-rooted Indo-Nepalese collaboration, Nepal SBI Bank Ltd. is redefining the banking landscape through cutting-edge digital solutions, strategic partnerships, and a steadfast focus on inclusive, customer-centric services.

Nepal SBI Bank Ltd., established in July 1993 as the first Indo-Nepal joint venture bank, has become a transformative force within Nepal’s financial ecosystem. Born from a strategic alliance between the State Bank of India (which holds a 55% majority stake), Nepal’s Employee Provident Fund, and the General Public, the Bank has successfully combined Indian financial expertise with a deep understanding of local market dynamics.

[caption id="attachment_28072" align="aligncenter" width="900"] Kathmandu, Nepal: Swayambhunath Temple[/caption]

Over three decades of steady growth have earned Nepal SBI Bank the trust of more than 1.3 million deposit customers nationwide. Operating across 51 districts, it has built an extensive footprint that delivers banking services to a broad cross-section of the population. However, it is the Bank’s commitment to innovation—particularly in the digital space—that sets it apart as a true industry leader.

Championing Digital Inclusion

Nepal SBI Bank has been at the forefront of the country’s digital banking evolution. It was the first bank in Nepal to enable RuPay card acceptance at ATMs and POS terminals, marking a significant milestone not only for digital payments but also for cross-border financial integration. The acceptance of RuPay aligns well with Nepal’s efforts to foster financial inclusion and support its growing tourism economy by easing access to financial services for visiting Indian nationals.

The Bank’s digital offerings are extensive and accessible. Its flagship mobile banking application, YONO Nepal SBI, represents a comprehensive leap into omni-channel banking. The platform goes far beyond traditional mobile banking—integrating investment tools, insurance services, e-commerce, and more into a seamless user experience. Designed to cater to tech-savvy and digitally curious customers alike, YONO Nepal SBI is supported by enterprise-grade security features, including advanced encryption protocols, real-time device integrity checks, and multi-factor authentication.

Innovation in Everyday Banking

Nepal SBI Bank’s drive for innovation manifests in practical, customer-focused solutions. The bank has introduced online account opening services, allowing users to access banking facilities without visiting a branch—an important development for rural customers and young professionals alike. Its cardless cash withdrawal service enhances convenience and security at ATMs, while its in-app spend analysis tools help users manage personal finances more effectively.

Through its QR Merchant Acquiring network, the Bank supports small businesses and informal merchants by enabling digital payment acceptance with minimal infrastructure, thereby accelerating Nepal’s transition to a cash-lite economy. This initiative plays a crucial role in expanding the reach of financial services to underserved segments of society, helping bridge the gap between formal banking institutions and grassroots commerce.

Strategic Collaboration and Forward-Looking Vision

Nepal SBI Bank’s success is also underpinned by strategic partnerships and robust international linkages. Collaborations with global banks and regional financial institutions have strengthened its trade finance and remittance capabilities—vital pillars of Nepal’s economy. These cross-border banking services have facilitated smoother financial flows, making it easier for Nepali expatriates and businesses to operate across boundaries.

Internally, the Bank continues to invest in human capital development, infrastructure upgrades, and process automation. This commitment to institutional resilience ensures that the Bank remains agile and well-prepared to meet the needs of a rapidly evolving financial landscape.

A Sustainable Banking Model

Nepal SBI Bank’s forward-thinking approach extends to sustainability and governance. The Bank actively promotes responsible banking by integrating ESG (Environmental, Social, and Governance) considerations into its operations. It also maintains transparent governance standards, ensuring long-term value for stakeholders and contributing to national economic development.

Global Recognition

In recognition of its commitment to modern banking innovation and inclusive digital growth, the CFI.co Judging Panel names Nepal SBI Bank Ltd. the winner of the 2025 award for Champion in Modern Banking Innovation (Nepal). This accolade affirms the Bank’s status as a model institution in South Asia, one that is not only keeping pace with global banking trends but also setting benchmarks in digital inclusion and customer engagement.

As Nepal continues its journey towards a digitally integrated economy, Nepal SBI Bank stands at the vanguard—bridging tradition and transformation with purpose and precision.


Samaila Zubairu: Championing Africa’s Economic Transformation Through Infrastructure Investment

Under the stewardship of Samaila Zubairu, the Africa Finance Corporation has become a driving force for industrialisation, clean energy and pan-African prosperity.

Samaila Zubairu, President and Chief Executive Officer of Africa Finance Corporation (AFC), has established himself as one of the continent’s most effective champions of value creation, industrial development, and strategic infrastructure investment. With more than three decades of experience in finance and development, Zubairu has consistently advanced a bold vision of African-led growth—one centred on long-term infrastructure, job creation, and economic self-sufficiency.

[caption id="attachment_28091" align="aligncenter" width="900"] President and CEO: Samaila Zubairu[/caption]

Since taking the helm at AFC in 2018, Zubairu has driven exponential growth in the Corporation’s footprint, financial strength, and impact. Under his leadership, AFC has doubled its sovereign membership base, quadrupled its investments, and more than tripled profits as of year-end 2024. He has overseen the Corporation’s largest acquisition to date: the landmark purchase of renewable energy producer Lekela Power through Infinity Power—Africa's largest pure-play renewable energy provider. This single transaction expanded clean power access to over a million homes and avoided millions of tonnes of CO2 emissions.

Zubairu’s results-driven leadership has not gone unnoticed. In 2024, AFC was named Pan-African Champion at the Africa CEO Forum Awards and Financial Adviser of the Year at the IJ Investor Awards. In the preceding year, AFC received the Local Impact Champion award at the 2023 Africa CEO Forum and was recognised for Equity Deal of the Year by African Banker Awards for the Lekela acquisition. AFC was also awarded DFI of the Year for Europe & Africa at the 2022 Infrastructure Journal Global Awards. Zubairu himself was named African CEO of the Year by AsiaOne Magazine, cementing his reputation as a visionary leader in African finance. He was also conferred Senegal’s highest national honour, the Ordre National du Lion – Commandeur, in recognition of his service to African development.

Beyond accolades, his legacy is firmly grounded in delivery. A trained chartered accountant, Zubairu was the pioneer CFO of Dangote Cement Plc, where he led the creation of Africa’s largest-ever syndicated project finance facility. He also managed the unbundling of Dangote Industries and played a foundational role in establishing the Nigerian Infrastructure Investment Fund 1 in partnership with African Infrastructure Investment Managers (AIIM).

He also plays a leading role in shaping continental financial cooperation. Zubairu chairs the Alliance of African Multilateral Financial Institutions (AAMFI), a coalition of Africa's top development finance insitutions working to harmonise regional development efforts and amplify Africa's voice on the global stage. He additionally co-chairs the B20 South Africa Task Force on Finance & Infrastructure, where he contributes to crafting private sector policy recommendations for the G20.

His commitment to sustainability is deeply embedded in his work. As co-chair of the World Economic Forum’s Network to Mobilize Clean Energy Investment in Emerging Markets and Developing Economies (EMDEs), Zubairu is shaping global standards for climate finance. Through AFC, he has championed groundbreaking clean energy projects—from wind farms in Djibouti to integrated industrial platforms in Gabon—building climate resilience while advancing regional development.

A regular keynote speaker at major global fora including the UN Climate Summits and World Economic Forum, Zubairu continues to position Africa as a serious investment destination with global relevance. He is an Eisenhower Fellow and holds a BSc in Accounting from Ahmadu Bello University. He is also a Fellow of the Institute of Chartered Accountants of Nigeria.

Through his strategic vision and tireless execution, Samaila Zubairu is not only redefining infrastructure finance on the continent—he is helping to write a new chapter in Africa’s development story.


Africa Finance Corporation: Powering Africa’s Future Through Pragmatic Investment and Infrastructure

The Africa Finance Corporation is redefining development on the continent by championing bankable, climate-resilient, and inclusive infrastructure projects. With US$17bn invested across 36 countries, AFC is a model of how strategic capital and partnerships can catalyse Africa’s sustainable growth.

[caption id="attachment_28094" align="aligncenter" width="900"] AFC President & CEO Samaila Zubairu at the Mattei Plan–Global Gateway Summit advancing AFC’s partnership with CDP and SACE.[/caption]

In an era where long-term investment is displacing traditional aid as the engine of sustainable global development, the Africa Finance Corporation (AFC) has become one of the most dynamic institutions. Established in 2007, AFC was designed to fill a glaring gap—funding and executing critical infrastructure that drives industrialisation, regional integration, and economic resilience across Africa.

With more than US$17bn deployed across over 160 transformative projects in 36 countries, AFC combines the development mandate of a multilateral with the operational agility of a pragmatic institution. Its model is grounded in delivering bankable infrastructure that is financially viable, socially inclusive, and environmentally sound. Backed by strong credit ratings — Moody’s (A3, Stable), Japan Credit Rating Agency (A+, Stable), S&P Global (China) (AAA_spc, Stable), and China Chengxin International (AAA, Stable) — AFC has earned global investor trust while remaining deeply rooted in African priorities.

Delivering Infrastructure That Transforms

AFC’s portfolio spans the continent, with flagship projects demonstrating scale, sustainability, and cross-border impact. AFC is a major investor in Infinity Energy, the majority shareholder in Infinity Power Holdings — Africa’s largest independent renewable power producer. With operating wind and solar assets in Egypt, Senegal, and South Africa, Infinity Power Holdings generates over 4,200 GWh annually, enough to power 1.2mn homes and avoid more than 3mn tonnes of CO2 emissions. The Infinity platform is targeting 10 GW of installed capacity by 2030.

In Djibouti, AFC served as the lead developer and project manager for Red Sea Power, a consortium-owned venture that launched the country’s first utility-scale wind farm. The 60 MW Ghoubet facility now supplies clean power to nearly a million people—a milestone that sets Djibouti firmly on the path to becoming the first African nation powered entirely by renewables. This project highlights AFC’s ability to de-risk critical infrastructure and quickly mobilise capital to drive energy access and sustainability.

[caption id="attachment_28095" align="aligncenter" width="900"] The Red Sea Power project sets Djibouti on course to become Africa’s first nation powered entirely by renewables. [/caption]

Elsewhere, ARISE Integrated Industrial Platforms (IIP), a collaboration led by AFC, has become one of Africa’s leading industrial infrastructure platforms, operating across more than 14 countries. To date, it has deployed nearly US$2bn in infrastructure, while enabling over 50,000 jobs through its industrial ecosystem model. In 2025, ARISE IIP completed a landmark US$700mn capital raise, including both primary and secondary components, making it one of the largest private infrastructure transactions in Africa to date. The transaction welcomed Vision Invest — a leading Saudi infrastructure investment and development company — as a new institutional shareholder, joining AFC, Equitane, and FEDA (the impact investment arm of Afreximbank) in the ownership base. The deal also marked a successful partial exit for AFC, underscoring its ability to crowd in private capital and recycle finance into new transformative projects.

This capital infusion will support ARISE IIP’s continued expansion and the deepening of green, inclusive industrial ecosystems across Africa.

In the Democratic Republic of the Congo, AFC provided a US$350mn senior loan to support the expansion of the Kamoa‑Kakula Copper Complex—one of the world’s greenest copper mines. The project contributed around 4% of the country’s GDP in 2023, and approximately 91% of its workforce is Congolese, offering a strong model for sustainable and inclusive natural resource development.

One of the Corporation’s most ambitious undertakings is the Zambia–Lobito Rail Corridor: an 830km greenfield railway connecting Zambia to Angola’s Lobito Port. This project, once complete, will reduce transit times by half and unlock an estimated US$3.3bn in economic value.

Pioneering Climate-Resilient Infrastructure

Recognising the dual challenge of development and climate change, AFC launched AFC Capital Partners and its flagship Infrastructure Climate Resilient Fund (ICRF)—a US$750mn blended finance vehicle to accelerate investment in low-carbon, climate-proof infrastructure. To date, the ICRF has secured over US$400mn in commitments from international and regional partners.

The Fund aims to support over 760MW of new renewable capacity, bring clean power to 6.5 million people, and mitigate 24 million tonnes of CO2 emissions. In parallel, AFC continues to innovate with green bonds and carbon-linked instruments to help global investors finance Africa’s energy transition.

Climate resilience is increasingly built into every stage of AFC’s project planning. New investment proposals are assessed against physical and transitional climate risk scenarios, and environmental sustainability is systematically embedded into every stage of project design, construction, and operation.

Financial Strength That Attracts Capital

AFC’s operational and financial performance remains robust. Following a record 2024 where the Corporation generated over US$1.1bn in revenue and US$400mn comprehensive income, 2025 has pivoted toward capital mobilisation as a defining theme.

[caption id="attachment_28096" align="aligncenter" width="900"] Empowering local industry: AFC-backed ARISE IIP creates jobs and value across Africa’s manufacturing hubs[/caption]

This year, AFC achieved a series of landmark fundraising milestones that cement its reputation as Africa’s premier capital mobilisation platform. In January 2025, the Corporation issued its debut US$500mn hybrid bond, setting a benchmark for African issuers, which was significantly oversubscribed and drew strong participation from investors across Europe, Asia, and the Middle East. The momentum continued in February with the signing of a US$350mn Murabaha facility with leading Middle Eastern banks, advancing AFC’s strategy to diversify funding sources and deepen ties with Islamic finance markets. In June, AFC secured a US€250mn 10-year term loan from Cassa Depositi e Prestiti, guaranteed by SACE, to support renewable energy and infrastructure projects. This was followed in July by a AED 937.5mn (approximately US$255mn) sustainability-linked loan from UAE banks, structured to reward environmental performance. The fundraising drive culminated in September with the closing of a US$1.5bn syndicated loan, the largest in AFC’s history, attracting lenders from across the Middle East, Africa, Asia, and Europe. Together, these transactions illustrate AFC’s growing sophistication in mobilising diverse pools of capital at scale.

Further momentum was built through the Africa Saving for Growth Programme, launched at the 2025 UN General Assembly under the Global Africa Business Initiative, which aims to mobilise US$1.17tn of institutional savings into long-term infrastructure across the continent.

Empowering Sovereigns and Markets

Beyond deploying its own balance sheet, AFC supports sovereign and corporate issuers in accessing capital markets. In 2024, it served as Joint Lead Manager for Ecobank’s US$400mn Eurobond, the first by a Sub-Saharan bank since 2021. AFC also supported Egypt’s second Samurai bond issuance in November 2023, a private placement offering worth JPY 75bn (approximately US$50mn), acting as re-guarantor to SMBC.

These transactions demonstrate AFC’s vital role in helping African issuers tap both global and domestic liquidity through structured, credit-enhanced instruments. They also reflect growing global investor appetite for emerging market infrastructure—when paired with the right partners and governance.

AFC is also working with central banks and capital market authorities to deepen regional financial markets, improve liquidity, and build tools such as infrastructure credit guarantee schemes that can derisk long-term investment.

Looking Ahead

With Africa’s population projected to double by 2050, and infrastructure demand intensifying, the case for institutions like AFC has never been stronger. As President & CEO Samaila Zubairu notes: “Africa does not need charity. It needs capital. It has bankable projects. What it needs are trusted partners to execute and scale what it already has.”

By blending commercial discipline with a development mandate, AFC continues to redefine what’s possible in African infrastructure—building not only roads, ports, and power plants, but also economic sovereignty, climate resilience, and inclusive prosperity.

Its journey is far from over. AFC is actively exploring opportunities in digital infrastructure, clean energy storage, and regional connectivity projects that align with Africa’s Agenda 2063. With innovation, partnerships, and patient capital, AFC is poised to remain one of Africa’s most important institutions for decades to come.


Tekcapital: Building Companies That Change Lives — And Create Value for Shareholders

Tekcapital has honed a differentiated model for discovering university inventions, turning them into real businesses, and listing them on major markets. With a near-term push into GenAI ventures and a clear intent to return capital via special dividends, the company’s playbook blends impact with disciplined value creation.

Tekcapital likes to start where many corporates stop: in the lab. The company’s investment and incubation engine is purpose-built to find university intellectual property with real-world utility, carefully screen targets, create or acquire ownership in operating companies around those inventions, refine them, and then scale to liquidity events on public markets. It is a process Tekcapital has refined over a decade — and it is one that has repeatedly converted patents and ideas into products and services that make a positive impact on the customers they serve.

A Disciplined Incubation Process, Designed for Outcomes

The method is clear. Tekcapital sources promising IP — often at an early stage — from leading research institutions. It then forms and capitalises operating companies (frequently as majority-owned subsidiaries), recruits specialist management, underpins go-to-market strategy and governance, and targets value realisation through listings in the US and UK. Crucially, this model is not “research for research’s sake”: it is anchored in technologies that improve everyday life, from healthier food to safer mobility and better digital tools.

That emphasis on usefulness is matched by an explicit return on invested capital mindset. Tekcapital stated long-term goal, is that successful spin-offs and listings are intended to create the option to distribute special dividends — passing realised value back to shareholders rather than warehousing it indefinitely on the balance sheet.

Public-market Credibility in the US and UK

The playbook has already produced multiple public listings. MicroSalt plc, the low-sodium salt company, was admitted to trading in 2024 on London’s AIM (ticker: SALT). Innovative Eyewear, the smart-glasses maker commercialising Lucyd® technology, which listed on Nasdaq (ticker: LUCY) in 2022 and GenIP plc, a generative AI analytic services company focused on helping research institutions assess the market potential of new discoveries, listed on AIM in 2024 (ticker: GNIP)— all underscored investor appetite for Tekcapital-incubated assets. These milestones matter: they validate technology in the most candid forum available — the public markets — whilst creating opportunities to accelerate growth and pathways for recycling capital to enhance returns.

Portfolio in Focus: Practical Innovation that Improves Lives

MicroSalt plc (AIM: SALT)
Excess sodium intake is a silent driver of cardiovascular disease. MicroSalt tackles this with a patented, micron-sized salt particle that delivers the same salty taste with significantly less sodium per serving. The technology can be applied directly to snacks or incorporated into food manufacturing, enabling brands to meet tightening health targets without sacrificing flavour. Listing on AIM has given MicroSalt the capital access and profile to accelerate B2B adoption in the UK and beyond — a tangible example of research translating into population-level health benefits.

Innovative Eyewear, Inc. (Nasdaq: LUCY)
The smartphone is migrating to the face. Innovative Eyewear sells everyday-style optical frames with open-ear audio, touch controls and an AI assistant that aggregates multiple models — all without shouting “gadget”. This is not novelty hardware; it is a wearable interface for knowledge workers, drivers, and on-the-go consumers who want hands-free access to calls, prompts, and productivity. Nasdaq status provides a deep investor base for scaling distribution and software features over time.

[caption id="attachment_28079" align="aligncenter" width="494"] Reebok Flash smart eyewear Powered by Lucyd[/caption]

GenIP plc (AIM)
GenIP® provides generative artificial intelligence analytic services to help organisations assess and commercialise new discoveries. GenIP combines expert human technical review with GenAI algorithms to deliver insightful, verified solutions. The integration of advanced artificial intelligence models, such as GenAI, is revolutionising the fields of analytics and search. By automating data analysis, generating insightful reports, and accelerating candidate identification, GenIP empowers analysts and recruiters to work smarter and faster. This leads to more accurate and faster predictions, improved decision-making, and, ultimately, better and more cost-effective outcomes for its clients.

[caption id="attachment_28080" align="aligncenter" width="757"] Guident CEO: Harald Braun[/caption]

Guident Corp.
Safe autonomy needs more than clever sensors; it needs reliable oversight. Guident provides remote monitoring and teleoperation software for autonomous vehicles and robots — plus automated incident reporting — to enhance safety and uptime for delivery bots, industrial movers and driverless fleets. As autonomy scales, regulators and operators alike will demand resilient human-in-the-loop control rooms; Guident is building that backbone.

Near-term Priority: GenAI Companies with Real Customers

Tekcapital’s latest half-year update sharpened its focus: mobility software and generative AI are the two near-term investment themes. On GenAI, the company is prioritising start-ups that can embed models within products, not just demonstrations — think co-pilots for docs and customer service, domain-specific retrieval, or agentic tools that automate back-office work safely. The emphasis is on ventures with clear unit economics and a path to enterprise adoption, reflecting an institutional shift from “model hype” to measurable ROI.

This orientation fits Tekcapital’s house style. The firm is not a spray-and-pray investor in frontier tech; it backs applied intelligence that solves narrow, valuable problems — the kind boards will pay for because it reduces cost, increases throughput or creates new capability. And, in keeping with Tekcapital’s theme of improving lives, the GenAI pipeline skews to practical benefits: accessibility in wearables, safer automation, healthier food systems, and software that eliminates drudgery so people can do more human work.

Why the Model Works: Proximity to Universities, Pragmatism with Capital

Two structural advantages underpin Tekcapital’s execution. First, its proximity to university tech transfer gives it asymmetric access to undervalued IP. This reduces development time, lowers input costs (compared with late-stage venture) and increases the scope for value-add in company-building. Second, the firm is pragmatic about capital formation: it routinely chooses the listing venue that best fits a company’s customer base, peer group, risk profile and funding needs — AIM for UK-anchored health-tech and food ingredient companies, Nasdaq for mobility and consumer tech with global addressability. The result is a portfolio where the route to scale — and to liquidity — is designed in from day one.

Governance, Liquidity — and Returning Cash

Shareholders care about two things: that portfolio companies can access the right capital at the right time, and that when value is created with successful exits, it finds its way back to owners. Tekcapital’s record on the first is visible in its US/UK listings. Its intent on the second is stated explicitly in portfolio disclosures: where appropriate, it will consider returning capital via special dividends following successful admissions or monetisations. That commitment aligns the incubation engine with shareholder outcomes, turning public-market credibility into distributable cash or shares rather than just corporate financial gains.

The Road Ahead

Tekcapital’s strategy is not complicated — it is consistent. Source consequential IP. Build companies that make life healthier, safer and smarter. List them where they have the best chance to thrive. And, when profits are realised, share the proceeds. In an era when many technology investors chase narratives, Tekcapital’s insistence on utility, governance and repeatable process feels refreshingly old-fashioned — and, increasingly, exactly what the market rewards.

As GenAI shifts from novelty to infrastructure and as autonomy, digital health and smart wearables transition from niche to mainstream, and the nutritional profile of food is improved, the firm’s portfolio is well placed. Each asset addresses a real friction: too much sodium in our food; too little safety in autonomous mobility; and too much cognitive drag in the way we access information. If Tekcapital continues to do what it does best — choose well, build well, and exit well — it will not only improve lives at scale, it will also keep compounding value for the shareholders who funded the journey.


Clifford M Gross: From Lab to Leadership — Steering Tekcapital’s Commercialisation Engine

Since founding and leading three publicly listed companies and co-founding numerous other high-growth ventures, Dr Clifford M Gross now drives Tekcapital plc as CEO. His rare blend of academic, inventor and investor experience has shaped Tekcapital’s strategy: converting university research into commercial value and building a resilient portfolio of tech-enabled businesses.

[caption id="attachment_28103" align="aligncenter" width="871"] CEO: Clifford M Gross[/caption]

For over twenty-five years, Dr Gross has operated at the intersection of invention and enterprise. A former Acting Director of NYU’s graduate Biomechanics & Ergonomics programme and Chairman of the Nelson Rockefeller Department of Biomechanics at the New York Institute of Technology, he holds a PhD from NYU and an Executive MBA from Oxford. He is a Fellow of the National Academy of Inventors and a named inventor on more than fifty issued or pending patents.

A Track Record of Commercialisation

Gross has built multiple companies from idea to IPO. He founded Biomechanics Corp., UTEK Corporation and Tekcapital itself. He also co-founded private ventures including HumanCAD, MicroSalt, GenIP and Guident — each linking academic innovation to specific market applications.

Among his earlier successes are ergonomic products still in use today: the DEWALT cordless drill for Black & Decker, the Parachute Chair for Knoll, and the first PC-based human CAD software from HumanCAD. Several of these breakthrough products were exhibited by the Smithsonian.

This unique experience gives Tekcapital a strategic advantage. Under Gross’s leadership, the company is not merely an investor but a commercialisation engine — identifying university discoveries, managing IP, shaping spin-outs and guiding valuations toward exits.

Reinventing the Innovation Value-Chain

In the fast-evolving technology ecosystem, Gross’s vision is simple but disciplined. He urges the team to focus on three dimensions:

Source quality IP. Academic research possesses the raw potential but often lacks commercial edge. Tekcapital bridges the gap.

De-risk early. Gross emphasises rigorous early-stage screening, structured governance and active spin-out support rather than passive capital allocation.

Scale selectively. The company commits to business models based on proprietary intellectual property that can be grown, licensed or sold — not speculative lab stories.

This model resonates with institutional investors and public market participants. In a world where capital markets favour scalable monetisation rather than endless research, Tekcapital under Gross has positioned itself accordingly.

Governing with an Inventor’s Discipline

Gross’s leadership reflects his scientist/inventor mindset. Tekcapital employs quantifiable progress metrics, patent-to-market tracking and milestone-led spin-out phases. Governance is structured, transparent and well-suited to the public investor context.

This corporate rigour enabled the company to attract high-calibre management teams into its portfolio companies and strategic partners who value alignment, execution and exit clarity.

Building for the Long Term

Under Gross’s direction, Tekcapital is being built for durability, not hype. Gross says the best innovation does not require a “pivot” two years in — it requires foundational technology, a defensible business model and a credible plan for monetisation. His mantra: invent once, commercialise many times.

Employees and stakeholders receive the same message: continuous learning, disciplined execution and long-term thinking. His direct-feedback approach, honed in academia and start-ups, is embedded across Tekcapital’s team culture.

The Future of Tekcapital

As global universities ramp up research output, Gross sees a growing pipeline of opportunity — particularly in Generative AI  spin-outs. Tekcapital is expanding its footprint with early-staged technology companies and building its platform to support global commercialisation, not just UK or North American deals.

Whether licensing software from a UK university or backing a U.S. listed AI aggregator, the model remains consistent: source, de-risk and scale. With a diversified portfolio and Gross’s leadership, Tekcapital is poised not only to capitalise on academic innovation — but to deliver returns to public-market investors via exit-driven success.

In a world enamoured with disruptive technology, Clifford Gross stands out for his steady execution, deep inventor DNA and his ability to navigate the long arc from lab to liquidity. At Tekcapital, he is building a franchise that rewards patience, quality and commercial realisation — a blueprint for investors seeking more than the next product hype.


Barrow Hanley: Insights from a Global Value Investing Leader

Cory Martin, CEO of Barrow Hanley Global Investors, reflects on the firm’s growth, its value investing philosophy, and how technology and ESG considerations are shaping the future of asset management.

[caption id="attachment_27214" align="aligncenter" width="900"] CEO: Cory Martin[/caption]

Cory Martin’s Journey at Barrow Hanley

For the second consecutive year, Barrow Hanley Global Investors has been named Value Manager of the Year by Capital Finance International (CFI.com), a testament to the firm’s enduring commitment to the firm’s disciplined value investing under Cory Martin’s leadership. As CEO, Martin has witnessed and guided the firm’s transformation from a US-centric focus to a world-class global manager. With 27 years at the firm, he has overseen the expansion into multiple equity strategies, including US, Non-US, and Emerging Markets, along with various fixed-income strategies such as Bank Loans, and CLOs. Under his leadership, Barrow Hanley’s diversification has significantly grown its client base outside North America.

Martin’s initial interest in global investing began early in his career as a research analyst and consultant, focusing on Non-US and Emerging Market managers. Influenced by National Geographic as a child and the writings of Sir John Templeton, the first truly global investor, Martin’s passion for global investing only deepened. In addition to his role as CEO, he remains an active member of the firm’s global team, which manages approximately $10bn in client assets.

Barrow Hanley’s Value Investing Approach

Barrow Hanley’s value investing philosophy has remained consistent for over 45 years, despite changing market and economic conditions. According to Martin, the firm defines value by seeking companies that have temporarily disconnected from their intrinsic value. These are fundamentally strong businesses that have historically produced competitive returns, including metrics like Return on Equity and Earnings Per Share (EPS) growth.

Martin emphasises that Barrow Hanley looks for companies that offer multiple catalysts for potential outperformance, such as depressed stock valuations, stabilising fundamentals, and defined pathways to recovery. The goal is to buy securities that present immediate value, as opposed to investing in growth companies with projected earnings far in the future. “We love world-class technology companies,” Martin explains, “but we want to buy them, as we have in the past, at value multiples when opportunities arise.”

This value-oriented approach extends to the firm’s fixed-income strategies. Barrow Hanley’s fixed-income team focuses primarily on security selection, building portfolios from the ground up based on underlying fundamentals. By maintaining close collaboration with equity analysts, the team gains a comprehensive understanding of corporate fundamentals, allowing them to make informed selections that can outperform benchmarks across different phases of the credit cycle.

Integrating ESG into the Investment Process

As Environmental, Social, and Governance (ESG) factors become more integral to investment decisions, Barrow Hanley has fully integrated ESG considerations into its process. Martin explains that the firm uses a combination of third-party ESG research from sources like ISS Climate, MSCI, and Sustainalytics, alongside its own independent ESG scoring system.

“Creating our own composite ESG score is critical to our process,” Martin notes, “because our analysts assess financial materiality.” Barrow Hanley’s research team leverages these insights to engage with companies on ESG issues, fostering ongoing dialogues to better understand the challenges they face. This integrated approach allows Barrow Hanley to stay ahead in an investment landscape increasingly driven by ESG considerations.

Leveraging Technology in Asset Management

The rise of technology has revolutionised the asset management industry, and Barrow Hanley is no exception. The firm is leveraging advancements like artificial intelligence (AI) and data analytics to enhance its operations and streamline decision-making processes.

The use of AI tools, such as CoPilot and generative AI, has improved the firm’s efficiency. AI assists in reducing the time analysts spend combing through filings and press releases, enabling them to focus on the financial implications of new information. AI-driven market and portfolio summaries also allow Client Portfolio Managers to spend more time engaging with clients and discussing market movements.

Martin highlights that non-standard data sources are becoming increasingly useful, as advancements in technologies like Optical Character Recognition (OCR) further enhance the firm’s data-gathering capabilities. However, Barrow Hanley adopts a measured approach, ensuring that all new technologies undergo quality assurance to maintain the integrity of their research.

Risk Management in Uncertain Times

In today’s volatile market environment, risk management is more important than ever. Barrow Hanley approaches risk mitigation by adhering to portfolio construction guidelines and employing daily analytics to review holdings. These reviews, which assess diversification, factor exposure, and intra-portfolio correlations, help the firm manage risks while maximising potential returns.

Martin emphasises that while Barrow Hanley avoids making major macroeconomic bets, the team maintains a deep understanding of where its risks lie. The firm’s proprietary risk reports and regular meetings with the Investment Risk Committee ensure that portfolios are well-prepared for various market conditions.

Navigating the Future of Asset Management

Looking ahead, Martin sees sustainable investing as a lasting trend in the asset management industry. He believes that providing customised solutions for asset owners will be key to the future of active management. “Client requirements are shaping the future of long-only active managers,” Martin explains, adding that delivering competitive performance will remain the most important factor for maintaining relevance in the market.

Barrow Hanley is positioning itself for the future by staying true to its value-oriented philosophy while embracing new technologies and adapting to client-driven trends like ESG and sustainability. The firm’s approach has not only strengthened its investment platform but also earned industry recognition for consistency and innovation.

Final Advice for Investors

When asked for advice on navigating today’s complex financial markets, Martin emphasises the importance of discipline. “Stay focused on executing your discipline and adhering to the process and philosophy that built your firm,” he advises. “Recognise that you cannot be everything to everyone—stay specialised.”

By maintaining this focus, Barrow Hanley continues to be recognised as a leading global value investing firm. The firm’s second consecutive CFI.co award underscores its commitment to delivering consistent, long-term results for clients in a constantly changing market environment.


Can Google Escape Nvidia’s Gravity?

If Gemini’s training run proves anything, it is that Google’s in-house silicon is no longer a science project. The bigger question for markets is whether TPUs can bend the economics of AI at scale—and, in doing so, redraw the cloud pecking order.

Google has spent a decade building towards this moment. The company that authored the “transformer” paper and catalysed the generative-AI era is now field-testing a parallel bet: a compute stack built around its own Tensor Processing Units (TPUs), not just Nvidia’s flagship accelerators. With its latest Gemini generation trained on TPUs and deployed across Google Cloud, the firm has signalled a strategic ambition that extends well beyond model releases. It wants to change the cost curve of intelligence.

[caption id="attachment_28119" align="aligncenter" width="900"] Google CEO Sundar Pichai. Image: Google[/caption]

For investors and enterprise buyers alike, the implications are twofold. First, if TPUs prove a cheaper, more power-efficient path to training and inference at scale, the industry’s compute inflation could finally moderate. Second, if Google can translate silicon control into cloud share gains, the hyperscale hierarchy may not be as fixed as it appears.

From Showcase to Supply Chain

AI has been running into two hard constraints: accelerator availability and total cost of ownership. Nvidia’s hardware and CUDA software stack have dominated because they deliver performance and an unrivalled developer ecosystem. That combination has conferred pricing power and made capacity the ultimate gating factor for AI roadmaps.

Google’s counter is vertical integration. By co-designing models, compilers and data-centre infrastructure with TPUs at the centre, the company argues it can deliver comparable performance at a lower unit cost—and do so predictably, because it controls much of the supply chain from datacentre design to scheduling software. For enterprises used to waiting in the queue for H-series capacity, a credible alternative is more than a bargaining chip; it is a way to keep product roadmaps on time.

Crucially, Google is selling TPUs as a cloud service, not merely an internal advantage. That positions TPUs as a demand valve for customers who care less about the badge on the chip and more about throughput per dollar and per kilowatt-hour. If those economics hold in production, TPUs become not just an anti-inflation tool for Google’s own AI spend but a market share lever for Google Cloud.

Economics Will Decide the Winner

Hype will not unseat CUDA. Economics might. Most AI P&Ls are now dominated by two lines: compute and power. Training frontier models soaks capital; serving them at useful latencies consumes opex and grid headroom. To “escape Nvidia’s gravity”, TPUs must demonstrate three things repeatedly and transparently: predictable availability at scale, favourable $/token for training and inference, and credible energy efficiency within real datacentre envelopes.

Google’s pitch is that its system-level engineering—custom interconnects, compiler optimisation and software scheduling—yields higher utilisation and, consequently, better effective economics than like-for-like accelerators. If customers see those savings on their own workloads, a portion of them will re-platform. If they do not, the centre of gravity will remain where the developers already are.

The Software Moat is Real—but Not Immovable

Nvidia’s most durable advantage is not silicon; it is software. CUDA and its surrounding libraries are where years of engineering and community practice live. Google’s answer—principally XLA and JAX, with support for leading frameworks—has matured quickly, but enterprise AI teams are pragmatic: they migrate only when switching costs are outweighed by speed or savings.

That is why Google’s TPU strategy is as much ecosystem as engineering. Porting toolchains, reference architectures, tuned kernels and managed services that reduce the cognitive load of change are essential. So too are partnerships with high-signal model developers and systems integrators who can attest to performance and shorten buyers’ time to confidence. If Google can make “CUDA-adjacent” feel near-native, the moat narrows.

Cloud Competition and Co-opetition

There is a paradox at the heart of this market. Google, Microsoft, Amazon and others all sell Nvidia capacity, even as they race to wean themselves from a single-vendor constraint with their own silicon. Expect this co-opetition to persist. In the medium term, the hyperscalers will run mixed estates: Nvidia for customers with CUDA-bound workloads or specific performance profiles; house silicon where economics or availability demand it.

For Google Cloud, TPUs are a differentiator in two segments. First, AI-native companies that care about scale, predictability and unit costs more than they care about brand loyalty. Second, large enterprises reassessing multi-cloud strategies to de-risk procurement and improve resilience. In both cases, TPU capacity and pricing can be used to win incremental share or to move strategic workloads that anchor broader platform consumption.

Training, Inference—and the Race to Power Efficiency

Even if TPU economics prove compelling for training, inference is where the market will be won. The real cost shock for enterprises is not a single blockbuster training run but millions of daily interactions that must be served at low latency and reasonable cost. Here, energy efficiency becomes decisive—especially as grids tighten and jurisdictions tighten reporting on carbon intensity.

Google’s system-level approach, including networking and cooling design, aims to push more useful work through each watt. If TPUs can consistently deliver lower $/1,000 tokens with acceptable latency for mainstream tasks, CFOs will take note—and so will sustainability committees. That is particularly true for firms deploying agentic systems and retrieval-augmented applications that keep models resident and hot.

What Would “Conquering Dependency” Actually Mean?

Total independence is neither likely nor necessary. “Conquering dependency” in practice would mean three things. First, Google can meet its own model roadmaps without external bottlenecks, allocating between TPUs and third-party accelerators as portfolio economics dictate. Second, Google Cloud can offer enterprise customers a credible choice that insulates them from spot shortages and price spikes. Third, TPU demand is sufficiently broad-based that continued investment in the stack is self-funding and compounding.

To get there, Google must keep doing the unglamorous work: publishing repeatable benchmarks on real workloads, expanding software tooling, hardening migration paths, and securing long-dated supply for its own datacentres. It must also demonstrate that TPUs are not a niche for a few marquee customers but a mainstream option for model training, fine-tuning and inference across industries.

Implications for Nvidia—and for Everyone Else

None of this implies Nvidia is toppled. Far from it. The company’s roadmap, execution and ecosystem depth remain formidable, and demand for accelerators continues to outstrip supply across segments. In a growing market, losing share can still mean growing revenues. But pricing power is not a law of nature. If credible alternatives normalise delivery and economics, the industry moves from scarcity to choice. Margins compress at the edges, and capital allocation gets a little more rational.

For enterprises, that competition is healthy. It promises more predictable access to compute, more resilient supply chains and, over time, a gentler slope for unit costs. For investors, it shifts the question from “who owns the chip du jour?” to “who controls enough of the stack to bend the curve on utilisation and power?”.

The Verdict—For Now

Google has proved that TPUs can train and serve state-of-the-art models and can be productised as a cloud service. Whether that becomes a structural discount to the cost of intelligence—and a catalyst for cloud share gains—will be settled not in keynote demos but in procurement halls and monthly invoices.

The most likely outcome over the next few years is a hybrid equilibrium. Nvidia remains the anchor for a vast share of AI workloads; Google grows a TPU franchise that is large enough to matter and disciplined enough to compound; enterprises arbitrage availability and price between them. If Google’s integration continues to unlock meaningfully lower $/token at scale, that equilibrium tilts.

CFI.co’s take: the market is moving from a single-lane bridge to a dual carriageway. Google does not need to dethrone Nvidia to win. It needs to make AI compute less scarce, less volatile and more economically rational—for its own models and for its customers. If TPUs continue to deliver on that brief, Google will not have escaped gravity so much as rewritten it.


CABEI’s AA+ Breakthrough: How a Smarter Balance Sheet Is Financing Central America’s Next Growth Chapter

The Central American Bank for Economic Integration (CABEI) has secured an S&P upgrade to AA+, capping a year of balance-sheet innovation. The move reduces funding costs, widens investor appetite and—crucially—equips the Bank to deliver more regional transport, clean energy and MSME finance on better terms, with lower risk.

[caption id="attachment_28121" align="aligncenter" width="900"] Executive President Gisela Sánchez & CFO Humberto Rodríguez[/caption]

A Historic Upgrade Built on Intrinsic Strength

S&P Global Ratings’ November action went beyond lifting CABEI to AA+: it upgraded the Bank’s stand-alone credit profile (SACP) to AA+ from AA, alongside the long-term foreign currency issuer credit rating, citing materially stronger capital and a decisive reduction in sovereign concentration—improvements driven by a set of first-of-their-kind Exposure Exchange Agreements (EEAs) with peer multilaterals. “This upgrade confirms our financial strength and the full confidence of our members,” said Executive President Gisela Sánchez. “It is excellent news for our 15 member countries because it enables us to channel resources under better conditions and translate those benefits into concrete savings for national budgets.”

On the technical foundations, Chief Financial Officer Humberto Rodríguez noted that the two EEAs executed in 2025—totalling US$1.15bn with CAF and the Caribbean Development Bank—addressed the key structural risk on CABEI’s balance sheet by directly diversifying exposures. “We reduced sovereign concentration from 76 percent to 66 percent of the portfolio and lifted our risk-adjusted capital well above S&P’s ‘Extremely Strong’ threshold of 23 percent,” he said. “These were the first EEAs carried out by non-AAA MDBs; CABEI originated and led them to deliver immediate, measurable capital efficiency.”

S&P also recognised CABEI’s strong liquidity, a decade-long track record of preferred-creditor treatment and broader market access in multiple currencies, alongside progress toward a potential general capital increase and the addition of new, highly rated members. With a stable outlook, the Bank now sits at the AA+ level alongside the United States, Austria, New Zealand and its partner, the Republic of China (Taiwan).

From Rating to Real-economy Impact

Upgrades are often discussed in basis points; the development story is bigger. “AA+ strengthens our ability to implement the 2025–2029 Institutional Strategy,” said Sánchez. “It means more competitive lending terms, larger and more innovative operations, and a deeper pipeline in priority areas such as regional transport integration, the clean-energy transition and MSME competitiveness—always with prudence and financial sustainability.”

Lower funding costs and deeper investor demand allow CABEI to originate more, structure more creatively and pass savings to public budgets across its footprint. For ministries of finance, that translates into a reduced debt-service burden; for line ministries, it compresses time-to-delivery on growth-critical projects that boost productivity and jobs.

Local-currency Lending that Protects Borrowers

Currency mismatches can derail otherwise sound projects. “CABEI has long offered local-currency financing under a disciplined asset–liability management framework, and always on a selective basis,” Rodríguez noted. “The AA+ upgrade does not change that approach, but it strengthens our capital position and enhances market confidence—allowing us to continue providing financial solutions that meet the evolving needs of our members within a sound and sustainable framework.” When used appropriately, local-currency funding can help reduce borrower exposure to exchange-rate shocks, support domestic capital-market development and protect service delivery through cycles.

Beyond the Loan: Innovation in Instruments and Partnerships

With enhanced market perception and a stronger capital base, CABEI can push further on financial innovation. “The upgrade advances our agenda to deploy sustainability bonds, outcome-based bonds, guarantees and debt-for-nature swaps at greater scale,” said Sánchez. “These instruments help mobilise private capital into public priorities, multiplying impact in climate resilience, nature-positive infrastructure and digital public goods.”

Rodríguez added that portfolio risk-sharing is now a standing capability rather than a one-off. “We have signed an agreement to advance a third exposure-sharing structure with FONPLATA. Together with disciplined liquidity management and currency diversification, these tools preserve resilience while creating headroom for development lending.” CABEI’s funding strategy also reflects the Bank’s sustainability orientation; by 2025, 99 percent of issuance was ESG-labelled, widening the investor base and reinforcing alignment with member priorities.

Governance, Membership and the Path to AAA

The upgrade caps two years of disciplined financial management and governance strengthening. “We view AA+ as a platform, not an endpoint,” Sánchez said. “A potential ninth General Capital Increase and the incorporation of new, highly rated members would thicken our capital base and strengthen our shareholder quality—key steps to consolidating AA+ and building a credible path to AAA over time.” The sequencing is clear: diversified risk today, larger paid-in capital tomorrow and an even stronger platform for transformational finance thereafter.

What Changes for Clients—Beyond the Basis Points

Borrowers will notice the difference in both access and design. “The combination of lower funding costs and higher market confidence enables us to expand guarantees, take a measured increase in risk appetite for innovative climate operations and capitalise project preparation more effectively,” Sánchez explained. “That means faster progress on regional corridors, cleaner grids delivered sooner and MSME programmes scaled with better risk-sharing.”

For the finance function, the delivery model is anchored in optimisation. “We will continue to manage capital and liquidity for resilience while using targeted innovations to unlock impact,” Rodríguez said. “That includes selective local-currency loans, structured co-financings and instruments that crowd in private investors without compromising our risk standards.”

A Regional Engine—Now with a Larger Gearbox

Economic growth is built on momentum: projects that start on time, supply chains that work, firms that can finance inventory and expansion. “CABEI is the gearbox in that engine,” Sánchez observed. “AA+ enlarges it. Transport integration becomes more bankable when the financier at the centre can syndicate larger tranches and offer longer tenors. Clean-energy pipelines accelerate when we anchor sustainability programmes and bring in commercial partners. MSME lending scales when guarantees stretch bank risk limits and local-currency lines protect cash flows.”

These are not abstract benefits. They translate into faster road links that cut logistics costs for exporters; grid upgrades that reduce outages and attract manufacturing; climate-smart agriculture that lifts rural incomes; and formalised finance for small firms that employ the majority. For treasuries, lower net interest costs and reduced FX volatility are fiscal dividends that can be redeployed to health, education and climate resilience.

Confidence Begets Confidence

Upgrades shape expectations—and unlock participation. “AA+ tells global markets that our governance, capital and risk culture meet the highest standards short of AAA,” said Sánchez. “It tells member countries that we can deliver more—and more efficiently—against their priorities. And it signals to peer DFIs and institutional investors that CABEI is a reliable partner for complex regional operations where collective action is essential.”

From the balance-sheet chair, Rodríguez underscored the focus on continuity. “The stable outlook reflects the expectation that member support and preferred-creditor treatment will continue, while we maintain prudent capital management and a high-quality liquidity portfolio. Our job is to keep that foundation strong as we scale impact.”

The Bottom Line

CABEI’s AA+ upgrade is a financial milestone with direct economic consequences. By attacking sovereign concentration risk through innovative EEAs, strengthening capital to “Extremely Strong” levels and broadening liquidity, the Bank has earned both lower funding costs and greater market trust. The result is a more capable institution—one that can finance regional integration, clean energy and MSME competitiveness at the pace and scale Central America requires, while shielding borrowers from currency shocks and mobilising private capital into public priorities.

“We have the mandate, the model and now the rating to power the region’s next growth chapter,” Sánchez concluded. Rodríguez agreed: “The task ahead is to convert financial strength into projects on the ground—roads built, kilowatts delivered, firms financed—while safeguarding the resilience that got us here.”


A Handbag’s World: How Hermès Handbags Became Blue-Chip Assets

A new kind of currency has emerged in high finance—soft to the touch, exquisitely crafted and wrapped in mystique. The iconic Hermès handbags, notably the fabled Birkin and Kelly, have transcended mere accessory status to become an asset class in their own right. Powered by deliberate scarcity, peerless craftsmanship and a booming secondary market, these pieces have, for decades, rivalled—or outpaced—traditional benchmarks from the S&P 500 to gold. This is not simply fashion; it is a study in value creation.

The Foundation of Value: Craftsmanship and Scarcity

Hermès’s journey from a Parisian harness workshop in 1837 to a global luxury powerhouse rests on an unyielding commitment to quality. The house’s philosophy is disarmingly simple: never compromise on craft. Each Birkin and Kelly is hand-made by a single artisan, a process that can take 18 to more than 40 hours. New makers spend years in training before they are entrusted with a bag. This human-centred production model imposes natural limits on output and is integral to the product’s aura—and its price.

Scarcity is not incidental; it is strategy. Unlike rivals that scale to meet demand, Hermès does the opposite. The most coveted bags are never casually available. They are offered to clients with a demonstrated relationship and meaningful purchase history, stewarded by sales associates who act as gatekeepers to the brand’s rarest pieces. The informal “quota” system—limiting most clients to two quota bags per year—perpetually tilts demand over supply, preserving mystique and, crucially, price integrity.

The Rise of the Resale Market

Tight primary-market controls have seeded a sophisticated secondary market. For buyers with capital but not patience, resale offers immediacy—at a premium. What was once the preserve of discreet dealers is now a data-driven global ecosystem of online platforms, specialist auction houses and informed collectors.

Digital marketplaces such as Vestiaire Collective and The RealReal, alongside niche operators and the salerooms, have widened access while professionalising authentication and pricing. Transparency has accelerated growth: a classic Birkin 25 in Noir or Étoupe can command premia well above retail, with market values tracked and shared in real time. Over the past decade, aggregated indices and auction records suggest annualised returns for select Hermès models in the low-to-mid teens—outperforming many conventional asset classes. The driver is not trend but permanence: the designs are canonical, the quality enduring.

What Makes a Bag a Blue-Chip Asset?

Not every Birkin or Kelly is equal in the eyes of the market. A handful of variables determine whether a piece is merely valuable—or truly investment grade.

Rarity and Exclusivity. Scarce materials heighten appeal. Exotic leathers—Porosus or Niloticus crocodile, ostrich and alligator—are challenging to source and work, limiting production. At the apex sits the Himalaya Birkin, its painstaking gradient evoking alpine snow. With diamond hardware, examples have achieved record prices well north of £300,000 at auction.

Size and Colour. Shifts in lifestyle have favoured compact silhouettes: the Birkin 25 and Kelly 25 are highly sought-after. While seasonal shades have their moments, classic neutrals—Noir, Gold, Étoupe—consistently hold value, pairing effortlessly with wardrobes and outlasting trends.

Condition, Stamp and Provenance. Condition is paramount. “Store-fresh” pieces—unused, with plastics intact—achieve the highest multiples. The blind stamp (year code) can influence pricing, with newer pieces often trading at a premium, though rare vintage can buck the rule. Full provenance—original box, dust bags, rain cover, care booklet and receipt—bolsters value and confidence.

Famous Collectors and the Market’s Direction

The client base is broadening. While ultra-high-net-worth collectors dominate the trophy end, a new cohort of younger, globally connected buyers views these bags as both cultural artefacts and balance-sheet assets. High-profile owners—Victoria Beckham is rumoured to hold a three-digit Birkin collection; Singapore’s Jamie Chua and YouTuber Jeffree Star curate vault-like displays—add celebrity wattage that reinforces desirability and, by extension, liquidity.

Looking forward, the market’s infrastructure is maturing. Transparent pricing, richer data sets and third-party authentication standards are reducing information asymmetry. The sustainability lens is also relevant: pre-owned luxury is increasingly favoured as a low-waste, high-quality alternative to fast fashion. For diversified portfolios, the secondary market in Hermès bags offers a distinctive proposition: tangible assets with demonstrable resale demand, underpinned by a house that treats craft as doctrine and scarcity as policy.

Risk, Liquidity and Practicalities

No alternative asset is without caveats. Liquidity is episodic: the right piece can sell in hours; a less favoured size or colour can sit for months. Transaction costs matter—seller commissions at marketplaces and salerooms can range from the low teens to 30 percent—so underwriting a spread is essential. Currency swings can amplify or erode returns for cross-border buyers.

Condition risk is real. Storage should be climate-controlled, with bags kept stuffed and away from light to prevent creasing and colour fade. Insurance (often under valuable articles schedules) adds cost but protects capital. Counterfeits are increasingly sophisticated; buyers should insist on multi-point authentication (stitch count, font, hardware, leather grain, odour profile), preferably with a reputable third-party certificate and a robust return policy.

Regulation adds complexity at the high end. CITES documentation is mandatory for cross-border movement of exotics; incomplete papers can impair resale or invite seizure. Ethical considerations are moving up the agenda: some investors now screen for non-exotic leathers (e.g., Togo, Epsom, Clemence) to widen the buyer pool and sidestep regulatory friction.

Building a Collection Strategy

Treat acquisition as portfolio construction. Anchor with core, highly liquid SKUs—Birkin 25/30 and Kelly 25/28 in Noir, Gold or Étoupe with palladium hardware—then layer selective seasonals or rare leathers. Time-in-market generally beats timing-the-market: hold periods of three to seven years have historically captured step-ups tied to retail price rises, brand momentum and macro liquidity cycles. Diversify exit routes—trusted dealers for speed, auctions for theatre and peaks, peer-to-peer platforms for fee control.

Finally, correlations are attractive but not zero. Luxury resale values can soften in recessions or when global liquidity tightens; conversely, scarcity-led brands like Hermès have often proved resilient versus logo-heavy peers. The hedge, as ever, is quality: canonical models, impeccable condition, impeccable paperwork.

The conclusion is counter-intuitive only to those who view handbags as ephemera. In a world awash with mass production and copy-paste branding, Hermès has engineered a textbook case of value creation: timeless design, uncompromising manufacture and disciplined supply. The result is an object that signals taste, stores value and—properly selected—compounds it. Trends come and go. The Birkin and Kelly endure, functioning not only as emblems of luxury but, increasingly, as blue-chip assets in their own right.

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From Air-Sickness Bag to Icon: The Serendipitous Birth of the Birkin

The Birkin’s origin story is a masterclass in chance meeting design. It captures Hermès’s human-centred philosophy: objects of desire shaped by real lives and practical needs.

In 1983, British actress and singer Jane Birkin—celebrated for her effortless, bohemian style—boarded an Air France flight from Paris to London. Struggling to stow her wicker basket in the overhead bin, she watched its contents—papers, a diary and a baby bottle—spill into the aisle and onto the lap of the man beside her. Exasperated, she remarked that it was impossible to find a weekend bag both elegant and genuinely useful for a young mother.

Her neighbour, courteous and curious, was Jean-Louis Dumas, then chairman of Hermès. Rather than offer platitudes, he posed a challenge: what would the perfect bag look like? Birkin sketched her answer on the back of an air-sickness bag—an unpretentious canvas for an enduring idea. She envisioned a supple, capacious tote with a clean, classic line, a protective flap and a discreet lock; larger than the Kelly yet smaller than a travel case, robust enough for daily life and refined enough for the front row.

A year later, in 1984, Dumas presented Birkin with a prototype in black leather and pledged to name the design in her honour. She accepted; an icon was born. That the silhouette has remained virtually unchanged since speaks to the clarity of the original brief: beauty anchored in function, craftsmanship serving real use. From a hurried sketch at 30,000 feet to the most coveted bag in the world, the Birkin endures as proof that great design often begins with a simple, human problem—and a willingness to listen.


Peru’s Export Paradox: How Micro-Policy Shielded SMEs from Macro-Politics

While the headlines focused on Peru’s political carousel, a quiet technocratic revolution was taking place in its trade corridors. The result? A resilient class of SME exporters that defied both global protectionism and local instability.

In the volatile landscape of Latin American economics, Peru has long been the intriguing outlier. Often cited for its "Teflon economy"—where GDP growth seemed impervious to political turmoil—the narrative has shifted in 2025. The real story is no longer just about copper and gold; it is about blueberries, alpaca textiles, and specialty coffee, driven by a legion of Small and Medium Enterprises (SMEs) that have integrated themselves into global value chains with surprising tenacity.

For the discerning investor or policy-maker, Peru offers a textbook case study on how targeted central government interventions—specifically the PENX 2025 strategic plan—can decouple private sector performance from public sector noise.

The Mechanism: Policy as a Stabiliser

The core of Peru’s success lies in the decoupling of trade policy from political cycles. While ministries shuffled, the Plan Estratégico Nacional Exportador (PENX 2025) remained the constant north star.

Three specific policy levers have proven instrumental for SMEs:

The Digital Shield (VUCE): The Single Window for Foreign Trade (VUCE) did more than just digitise paperwork; it democratised access. By reducing transaction costs by roughly 15%, it allowed low-volume exporters—who previously couldn't afford the administrative burden—to enter the market. In 2024, nearly 70% of firms utilising VUCE were SMEs.

The 'Drawback' Lifeline: Perhaps the most debated tool is the simplified duty restitution regime (Drawback). It allows exporters to recover a percentage of the FOB value of their exports if they incorporate imported inputs (like packaging or fertiliser).

Strategic pivot: In a move to enforce efficiency, the government froze the rate at 3% only until July 2025. From August 2025, this drops to 1%, signaling to SMEs that the era of state subsidy is transitioning to one of competitive self-reliance.

Resilience to Protectionism: When the US imposed a temporary 10% tariff on agricultural goods in April 2025, the sector feared a collapse. However, the diverse web of Free Trade Agreements (22 agreements covering 58 countries) allowed larger SMEs to pivot quickly to Asian and European markets.

Update: By November 2025, the US had quietly lifted tariffs on key Peruvian perishables (avocados, blueberries) due to domestic supply gaps—a victory for Peru's indispensable position in the off-season food supply chain.

The Innovation Nuance: Adaptation Over Invention

Is the model perfect? Far from it. The OECD’s 2024 SME Policy Index identifies a glaring "innovation gap." However, this critique requires context. It does not imply a failure to build heavy machinery—an unrealistic goal for a mid-sized economy with a comparative advantage in natural resources. Rather, it highlights a failure in value-addition.

Peruvian SMEs excel at technology adoption (importing the best equipment) but lag in process adaptation (tailoring that technology to create unique, higher-margin products). They are efficient users of global tools but rarely creators of local IP. This leaves them vulnerable: they compete on price and volume, rather than on the proprietary uniqueness of their goods. The challenge for the next decade is moving from "selling the best fruit" to "selling the best derivative product."

The Human Element: Moving Beyond Commodities

While mining giants still hold the purse strings of total GDP, SMEs are the heavy lifters of diversification. SMEs now represent roughly 90% of exporting firms and are responsible for 70% of new product introductions.

Consider Villa Andina, a Cajamarca-based SME. In a region historically dominated by mining conflicts, they aggregated over 500 smallholder families to export organic "goldenberries" (aguaymanto) to Europe. They didn't just sell fruit; they sold a certified, traceable, organic story.

Or Kero Design, an alpaca knitwear exporter. While Italian cashmere giants dominate luxury, Kero utilised the state-backed "Alpaca del Perú" brand to penetrate the US market with high-fashion, sustainable garments. These firms represent the "missing middle" of the economy—formal, tax-paying, and globally connected.

The APEC Connection: The Lima Roadmap

The culmination of this decade-long effort was enshrined in the Lima Roadmap, adopted at the APEC 2024 summit. Unlike the lofty, vague declarations often seen at such forums, the Lima Roadmap specifically targets the "transition to the formal economy."

For Peru, this is existential. With informality hovering near 70%, the roadmap provides a multilateral framework to pull informal micro-enterprises into the export fold via digital literacy and simplified tax regimes. It is not just a document; it is a survival strategy.

Bureaucratic Insulation

The lesson for emerging markets is clear: You do not need political tranquility to build a robust export sector. You need bureaucratic insulation. By walling off trade facilitation from the daily grind of politics, Peru has built a lifeboat that keeps its SMEs afloat, even when the waters get rough.

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