Despite some economist’s fears that asset bubbles may be produced by the flood of investment capital into the region, PwC predicts that emerging economies – such as Nigeria, Vietnam, and South Africa – are set to grow much faster than the developed G7 countries over the next four decades.
Around 70 per cent of world growth over the next few years will come from emerging markets, with China and India accounting for 40 per cent of that growth. The IMF forecasts that the total GDP of emerging markets could overtake that of the developed economies as soon as this year.
What’s more, countries in the Middle East, which have enjoyed encouraging forecasts as growth rates of the region’s oil exporters remain healthy, are hiring the most MBA students. According to QS Top MBA, the Middle East saw a staggering 21 per cent increase in MBA demand in 2012, and a further 8 per cent increase last year.
Africa has also reported increased demand, in sectors such as energy, mining, consulting and finance. Across both Africa and the Middle East, MBA demand from recruiters is expected to increase by a further 13 per cent between 2013-2014.
“We seek to expand our footprint in the world. We are looking to work in emerging economies, grow our share in these regions and get talent that knows the region well,” says Willie Okpoyo, from the company’s Leadership Development Program.
GE is one of the biggest MBA employers and invests about $1 billion each year on training and education programs for its employees world-wide. Willie says that the company has four different businesses within sub-Saharan Africa, and employs 107,000 people across the entire continent.
“We are in expansion mode; we’ve established commercial entities in Ghana and Mozambique, and we’ve made a $1 billion dollar investment in the region,” he says. “We’ve made a bold statement that we’re here to stay.”
GE opened its first office in South Africa in 1898. As the country shifted from military rule to democracy, they began establishing more willing and able partners in the region, says Willie.
An MBA career with the company will allow you to broaden your exposure to different markets in emerging economies, says Vuyelwa Mahanyele, a Wits Business School graduate currently working for GE in Johannesburg. “My experience has been what I wanted; to broaden my exposure to different markets, out of country experience, and operate in different sectors,” she says.
“In Africa we’re given a unique opportunity to work in an environment where we are defining the business models in our regions.”
The company has a HQ in Nairobi, Kenya, and last year signed a $350 million memorandum of Understanding (MoU) with the Federal Government of Nigeria, allowing them to provide power services in the country. And it is easy to see why: Renaissance Capital forecasts that the Nigeria’s GDP will hit $5 trillion by 2025 – which would make it the world's third-biggest economy.
GE's vice chairman John Rice said in October that he expected the firms’ infrastructure businesses in emerging markets to post 10-15 per cent growth in the next five to 10 years.
The oil and gas equipment business was also singled out as one of GE's key growth areas, signalling the importance of energy to the conglomerate as it returns to its industrial roots.
Rice also added that China would continue to have double-digit growth, after growing up to 20 per cent in recent years. China is GE's biggest single market for infrastructure outside of the United States.
And it can provide MBAs with an exciting career, says Maggie Jing Yuan, Commercial Development Manager at GE Global Growth & Operations, China. “China is a place with quite a lot of exciting opportunities for MBAs, especially in the energy and healthcare sectors,” she says.
“I see a lot of resumes from MBA graduates and people who have previously worked here, done MBAs in the States and are looking for opportunities back in China after graduation.”
GE’s Experienced Commercial Leadership Program (ECLP) snaps up about 100 candidates each year – most of them MBA graduates. Maggie says that they are attracted by the opportunity to work in different sectors; GE has businesses in healthcare, energy, technology infrastructure and capital finance, among others.
MBAs on the ECLP have three different rotations, which are often in different sectors and in different parts of the world. Career advancement is key for most graduates, and GE aim to hire 100 per cent of their ECLP candidates, says Chris Thomas, the company’s Global ECLP Program Manager.
According to EPFR Global, investors poured up to $50 billion last year into emerging markets for mutual funds that invest in developing countries. Buoyed by a new-found interest in developing markets, economists predict that China, considered one of the most prosperous, will experience 45.9 per cent GDP growth between 2013 and 2017.
Although China’s growth has slowed this year, it is still much stronger than most Western countries. And the country’s economic growth plans fit GE’s focus, says Maggie. “The healthcare industry is a topic of local government and China is doing a lot of things to [improve] the industry. And GE has really benefited from that,” she says.
“Healthcare in China is moving from inter-city to country level, and our sales strategy fits into that.”
The renewable energy industry also holds a lot of opportunity, says Maggie. “There is terrible pollution in Beijing and the renewable market has potential. GE provides wind turbines and we have also distributed oil and gas power,” she says.
There are a lot of state-owned enterprises in the country, but that hasn’t affected business or career opportunities, Maggie adds. “We are seeing more devolution from central to local Government and the market is now more open,” she says.
“So for GE, we are competitors, but we will be partnered with these enterprises as well, and business is still quite strong in China. It attracts people who like a challenge."
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