From Mexico to Africa, thriving in today’s global hotspots means mastering local infrastructure, payment systems, and regulatory nuances.

Whether through investment or business expansion, localization has become a global trend in 2024. In the process of exploring markets, the competition is no longer just about the ability to migrate and expand brands. Instead, a company’s understanding of outbound business models, local market infrastructure, and regulatory policies is becoming increasingly critical.

This trend is particularly evident in longstanding outbound pathways like B2B foreign trade and cross-border e-commerce, where the window of opportunity in an emerging market often lasts only 5–10 years. Companies that can enter markets early on are more likely to experience rapid, unbridled growth.

Characteristics of 2024’s emerging markets

The most promising emerging markets for 2024 share three defining traits.

First, they often feature large, consumption-driven populations undergoing transitions to new economic models. Some are strategically positioned as geopolitically significant trade hubs, linking major global markets.

Second, these markets typically demonstrate rapid growth in digital services, fueled by rising internet penetration and accelerating e-commerce adoption.

Third, they present lower barriers to entry for international businesses. Infrastructure that supports secure transaction settlements and facilitates trade fund repatriation enables companies to safeguard their earnings.

Emerging markets across Latin America, the Middle East, and Africa—where economies are shifting from traditional to future-focused models—stand out as critical territories for global expansion in 2024.

Mexico is 2024’s rising star

In 2024, calling Mexico a rising star in the global supply chain is no exaggeration.

Geopolitical shifts have long-term impacts on foreign trade, with regions adopting trade-friendly policies often reaping significant benefits. Mexico, once viewed as peripheral to the global supply chain and hindered by limited e-commerce infrastructure, has turned the tide. Leveraging the tariff-free provisions of the United States-Mexico-Canada Agreement (USMCA), the country has become a crucial transit hub for Chinese businesses targeting North America. Today, it is recognized as one of the fastest-growing manufacturing powerhouses.

Beyond its role as a bridge to North America, Mexico’s domestic market is equally compelling. As LATAM’s second largest economy, it boasts a population of 130 million, a robust industrial base, and a longstanding reputation as the “backyard” of U.S. industry.

In 2023, Mexico’s e-commerce industry reached approximately USD 33 billion in value, driven by its dynamic informal economy. This marked a 24.6% year-on-year growth, positioning the country among the world’s fastest-growing e-commerce markets.

Tech giants are taking note. In March, Amazon Web Services (AWS) announced a USD 5 billion investment in local data centers, while companies like Tesla, Volkswagen, and BYD have embraced nearshoring strategies, leveraging Mexico’s geographic and manufacturing advantages. According to Statista, Mexico’s retail e-commerce sector is projected to maintain a compound annual growth rate (CAGR) of 13.67% from 2023–2027, highlighting its appeal as a key market for foreign trade and cross-border e-commerce enterprises.

However, challenges remain. Many Chinese companies lack foundational knowledge of the LATAM market, and efforts to build localized teams have been slow. Infrastructure for outbound services is also underdeveloped, and high costs of fund repatriation in USD present hurdles. While local buyers prefer transactions in pesos, settlements often occur in USD via accounts in Hong Kong or Singapore.

The lack of localized payment solutions is another critical issue. Establishing local bank accounts is a cumbersome process, and few payment providers offer direct peso settlement options. Recognizing this gap, BBVA Bancomer, Mexico’s largest financial institution, has partnered with global payment service providers like Sunrate to simplify the process. This partnership allows cross-border businesses to set up local accounts free of charge, enabling buyers to make direct peso transfers and facilitating faster, loss-free settlements.

These innovative solutions, combining the reliability of local banking institutions with the operational efficiency of global payment platforms, are transforming the market. By enhancing transactional trust and addressing diverse payment needs, this approach is emerging as the top choice for businesses aiming to establish a foothold in Mexico.

UAE remains a gateway to the Middle East

The Middle East, lauded as a future hub of the new economy, is emerging as another key avenue for outbound expansion in 2024.

The region’s tech boom continues unabated, with companies like Nio establishing R&D centers in the UAE and Abu Dhabi’s artificial intelligence firm G42 collaborating with Microsoft. Among Middle Eastern markets, Saudi Arabia and the UAE stand out. While Saudi Arabia focuses on reducing its reliance on oil through economic transformation, the UAE leverages its established strengths: world-class infrastructure, strategic location, trade-friendly policies, and tax exemptions. With a population of around 10 million and a per capita GDP of USD 50,600, the UAE has cemented its position as a critical trade hub.

The UAE is also an attractive open market, boasting 46 economic free trade zones. Dubai, the Gulf’s gateway for foreign trade, hosts thousands of foreign companies. Its appeal as the first stop for many businesses lies in its relatively low operational risks, robust industrial resources, and manageable localization costs.

Expanding into the UAE has long been a logical choice for global enterprises. However, in 2024, as most emerging markets focus on expanding internet and e-commerce penetration, the UAE is already shifting its priority toward outbound expansion, driven by economic diversification.

Specialized China-UAE industrial parks, for instance, have become a hub for Chinese enterprises in Abu Dhabi to develop industries tied to the new economy, such as smart manufacturing, digital innovation, biopharmaceuticals, and fine chemicals. Meanwhile, Dubai is positioning itself as a metaverse hub, leveraging Web3, renewable energy, and cross-border e-commerce.

From the surge in small commodities trade over the past decade to today’s influx of high-potential industrial giants, the UAE’s rise as a destination for outbound opportunities brings fresh challenges.

First, competition for economic leadership in the Middle East has intensified, prompting the UAE to diversify its trade ecosystem. The influx of B2B enterprises and new industries demands stronger localized services in areas like transaction management, supply chain operations, and team building.

Second, high localization demands apply across industries, particularly in sectors like AI, renewable energy, and smart manufacturing. These high-value industries often involve slow cash flow turnover and require flexible, efficient localized operations—a difficult balance to achieve.

For example, building localized teams in the UAE requires navigating cultural differences and managing limited talent pools. Recruiting and retaining top-tier talent demands extensive experience and a deep understanding of local labor laws to ensure operational flexibility.

Payment infrastructure is another critical challenge. While the UAE’s systems are relatively advanced, USD dominates settlements. However, the country’s strict foreign exchange review mechanisms complicate USD remittances, requiring lengthy procedures and incurring dual currency conversion costs when neither party operates in their home currency. This creates additional uncertainty for businesses entering the region.

Payment issues are a significant hurdle for companies expanding into the UAE. One cross-border seller highlighted the difficulty of opening local bank accounts: “It’s incredibly difficult for non-local companies to open a local bank account. Even if we were to register a company and go through the process, the entire procedure is very long and cumbersome,” the seller said.

Recognizing these challenges, service providers like Sunrate have introduced dirham-based payment solutions. These services enable businesses to open local collection accounts at no cost through partnerships with leading international banks. Features such as fully online account management, one-on-one support, and direct deposits in the original currency significantly reduce costs and improve efficiency.

Optimized payment processing, now offering same-day turnarounds, further accelerates cash flow recovery. These solutions cater to the specific transactional demands of emerging industries, establishing a dependable foundation for sustained operations in the UAE.

Africa can be a market of miracles

The African market has evolved beyond being a secondary choice for businesses looking to avoid competition.

With the 2024 Forum on China-Africa Cooperation introducing zero-tariff policies for 33 African countries and providing RMB 360 billion in funding, the stage is set for Africa—once seen as challenging due to trade barriers and regulatory risks—to become a major market within the next 3–5 years.

Historically, for many Chinese companies, expanding into Africa as part of national strategy was often viewed as a last resort. While China has remained Africa’s largest trading partner for 15 consecutive years, with bilateral trade reaching USD 282.1 billion last year, many sectors still require long-term cultivation, with healthcare and medical pioneers being notable exceptions.

However, Africa’s trade potential is increasingly impossible to ignore. The continent encompasses 54 countries, 1.4 billion people, and a rapidly growing population. By 2025, Africa’s total market size is forecasted to reach USD 3.5 trillion, with its B2B e-commerce sector alone expected to hit USD 1.1 trillion.

This growth is driven by two primary factors. The first is strategic support from nations like China, which are spearheading improvements in Africa’s mobile internet infrastructure and digital foundations. These developments are expected to dramatically increase e-commerce penetration in the short term.

The second factor is the gradual transformation of transaction channels. Africa, historically reliant on traditional commerce methods, is beginning to overcome offline delivery challenges through the involvement of third-party global suppliers, paving new pathways for trade.

In 2024, product categories such as stationery and secondhand clothing from China are gaining significant traction in African markets. Platforms like Jumia and Egatee, which spearheaded Africa’s e-commerce wave, are delivering impressive gross merchandise value (GMV) performance.

Despite its promise, expanding into Africa presents considerable challenges. Localization and digitization hurdles are more complex compared to mature trade markets. Establishing local teams remains difficult due to cultural nuances and a scarcity of skilled labor, while heavily criticized customs clearance policies continue to complicate entry. Entrenched offline-first consumption habits further deter businesses from fully capitalizing on the region’s e-commerce potential.

One of the most pressing concerns is ensuring safe and efficient payment collection. Africa’s market is still dominated by offline transactions, and local currency payment solutions remain scarce. Strict foreign exchange controls in countries like Nigeria exacerbate these challenges. While USD transactions are common, issues like insufficient quotas and exchange rate volatility often result in losses for buyers and sellers. Addressing these payment challenges starts with enabling deposits in local currencies.

A new wave of cross-border trade service providers with experience in mainstream markets is working to improve Africa’s payment infrastructure. These solutions aim to minimize transactional losses while unlocking high-growth potential. For instance, Sunrate, in collaboration with licensed institutions in Africa, has launched local currency collection services in Nigeria. By connecting directly with local clearing networks, payments can now be deposited in as little as five minutes. Businesses benefit from reduced hidden fees, while transactions in smaller African currencies have become as seamless and transparent as those in mainstream currencies. These services are steadily expanding to more countries across the continent.

In the era of blue ocean markets, the transaction chain must move beyond outdated and chaotic processes. Stability is now as crucial as speed, and payment and treasury management capabilities are becoming key differentiators for businesses venturing into new territories.

For service providers like Sunrate, the challenge lies in balancing the development of strong local foundations with delivering increasingly diverse and efficient digital services to global enterprises.

In 2024, the foundations of global trade are taking root in markets once considered untapped. For companies and service providers alike, seizing the opportunities presented by the next wave of global outbound growth will require thoughtful evaluation of emerging market potential and deliberate, secure expansion strategies.

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