Mongolia's business scene booms in 2024, with major strides in banking, mining, and tech fueling growth both domestically and internationally. From groundbreaking green bonds to bold international expansions, companies make significant moves and secure major investments. Let’s scuba dive into this year’s Mongolian business wrap-up. 🦈
🪽 Domestic Expansion: Banking + Mining
In 2024, the financial performance of Mongolia’s TOP-5 systemically important banks grows stronger each quarter, with all reporting positive indicators through the third quarter, including a 26% increase in revenue and a 47.5% rise in net profit compared to the previous year. Alongside these financial achievements, the banking sector places increasing emphasis on green financing, successfully issuing green and social bonds on both domestic and international stock exchanges. Here's the kicker: TML Plastics becomes the first company to issue a green bond, marking a milestone in sustainable finance.
🗺️ International Expansion: Tech + NBFIs
2023 was the year of tech companies, but this year, non-banking financial institutions (NBFIs) and manufacturers are also joining the journey to expand their international presence. For instance, Invescore NBFI (INV) opens a branch in Kazakhstan, while Mongol Basalt (MBW) signs an agreement with Uzbekistan Group to establish a $30 million joint venture plant in Uzbekistan, introducing rare basalt technology to Central Asia.
Therefore, MCS Group launches an e-commerce project in Uzbekistan to cater to the country’s growing demand for digital marketplaces and reach over 1 million potential customers in its initial phase. Similarly, Monos Foods (MFC) introduces its Monos Cosmetics health and beauty products to Kyrgyzstan, targeting urban centers with a focus on natural and organic product lines that align with local preferences.
By the way, during the Mongolia Economic Forum (MEF), Mongolia hosts the Startup World Cup Central Asia regional champions competition for the first time, where ONDO Space secures third place.
🧑🤝🧑 M&A
At the beginning of the year, Steppe Gold (STGO.TO) acquires all ordinary shares of Boroo Gold, becoming Mongolia’s largest precious metals producer listed on an international exchange. Meanwhile, the prominent Mongolian distributor MSM merges with Singaporean Jebsen & Jessen, becoming the latter’s seventh subsidiary.
🆙 Global Banks Jump in with Big Investments
International banks significantly boost their financing for Mongolian companies in 2024, driven by Mongolia’s strong economic performance and ongoing reforms aimed at improving business transparency and sustainability. The ADB and the EBRD invest a combined $230.7 million into major Mongolian banks and companies. Beneficiaries include APU Dairy, MCS Coca-Cola, KhanBank (KHAN), XacBank (XAC), Shunkhlai Holding, and Orchlon International School, spanning sectors such as food, banking, oil distribution, and education.
Finally, the year 2024 highlights remarkable growth and innovation across Mongolia’s business sectors. As companies continue to expand domestically and internationally, the outlook for 2025 is equally promising.
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