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.

• ⛏️ In the mining sector, several forward-looking projects are progressing to the next stage, including TMK Energy’s (TMK.AX) Gurvantes XXXV coalbed methane gas project, Erdene Resource Development’s (ERDN) Bayankhundi gold project, and Xanadu Mines’ (XAM.TO) Kharmagtai copper-gold project. Some of these projects have announced they are on track to begin production next year, signaling a promising future for the sector.

🗺️ 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. 

• Additionally, And Global secures 2 business expansion agreements, exporting its AI-based software "mindox" to Thailand and attracting investments from 2 major Japanese groups to expand its market in the Philippines. And Global steadily expands into Southeast Asia, building on last year’s achievements.

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.

• Monlogistics Holding (MLG), after operating as a public company for one year, acquires 51% of Central Asian Road LLC, a subsidiary of TESO Group, and establishes a new subsidiary in Tianjin, China. This expansion brings its total number of subsidiaries to 11.

🆙 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.