Mongolia

With an overall population density of only two people per square mile, and 40% of the nation living nomadically, providing 3G services has been more challenging than in other countries. However, as of December 2012, 3G services became available in all provinces. With 27% of the population under the age of 15 and a GDP that grew 15.7% per capita in 2011, the number of 3G users is expected to...

Although it may never compete with neighbours with well-established manufacturing sectors and economies of scale, Mongolia has the potential to meet domestic needs and produce goods, such as meat and cashmere for export. The move into mass production faces a host of constraints: Mongolia has a small domestic market, poor infrastructure, a growing minerals sector competing for labour and capital...

Its sparse population, landlocked location and extreme climate make developing Mongolia’s transportation and logistics infrastructure a challenge. The government is tapping into international markets to address its transportation and infrastructure issues, and in late November 2012 the country raised $1.5bn in a two-part bond offering. Diverse efforts are under way to improve transportation and...

Outdated power plants and grids, alongside a legal environment and tariff regime in need of upgrading, has made investment difficult. However, several efforts, focusing on boosting and diversifying supply for electricity and fuels, and establishing a positive track record for Mongolia as a viable destination for private investment in large-scale energy projects, are under way. The good news is...

The mining sector was a key growth driver of GDP in 2011, when the economy expanded 17.3%. Since 2012 there has been a moratorium on new licences, which is officially set to expire at the end of 2012. Although the major projects are not producing as yet, mining is already the country’s most important economic activity, contributing 20.2% of GDP in 2011, according to preliminary estimates. Coal...

While insurance in Mongolia remains in its nascent stages, important ongoing reforms may yet drive penetration, build local underwriting capacity and develop the first pool of domestic non-bank institutional investors. While the aggregate sums involved remain modest, buoyant growth bodes well for the medium term. The market is dominated by eight firms, which together account for 89% of non-life...