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While the Lima Stock Exchange (BVL) may have fallen short of expectations in terms of new issuances in 2012, its overall performance was solid, with the General Index up 5.9% over the previous year. Though market capitalisation and negotiated volumes dropped from 2012 to 2013, most analysts are positive in their outlooks for the near future. Private equity is expected to continue to grow in the coming years, given the relative shortage of high-return investment opportunities in the US and Europe. The current trend of Peruvian corporate bond listings abroad seems likely to continue, with demand remaining strong and investment banks maintaining an interest. Expansion and diversification of the BVL are also expected in the coming years as the government implements a series of reforms aimed at increasing listings, facilitating new financing structures and attracting investors. This chapter contains interviews with Francis Stenning, CEO of the BVL, and Luis Valdivieso, President of the Pension Fund Administrators’ Association.

With a banking penetration rate hovering around 30% and an expanding middle class, Peru represents a solid growth opportunity for the banking industry. Lending activity jumped by 23% in 2012, with much of this coming from a rise in consumer and retail loans. The banking sector is forecast to continue to expand rapidly, with loan growth projected at between 15% and 20% in 2013. While rapid expansion has generated concerns over a possible overheating of the sector, new lending regulations are set to cool credit growth and help ensure sustainability. In addition, the rise of mobile banking has improved access significantly, while correspondent agencies now offer a wider range of services. This chapter contains interviews with Julio Velarde, President of the Central Reserve Bank of Peru, and Walter Bayly, CEO of Banco de Crédito del Perú.

Over the course of the past decade Peru has recorded impressive economic growth, posting rates in excess of 6% from 2010-12. Though the pace of growth is estimated to slow to between 5.2% and 5.4% in 2013, mainly due to external shocks, observers are cautiously optimistic about Peru’s prospects for continued economic development. While the mining and hydrocarbons sectors continue to account for the bulk of exports as well as foreign direct investment, the recent growth of non-primary sectors, in particular construction, retail and services, point to increasing economic diversification. This is largely driven by greater domestic demand, expected to grow at 6.5% and 5.8% in 2013 and 2014, respectively. With a stable macroeconomic environment, prudent fiscal management and a number of new free trade agreements, Peru is well positioned for continued expansion. This chapter contains interviews with Karl de Gucht, EU Trade Commissioner; Luis Miguel Castilla Rubio, Minister of Economy and Finance; Javier Illescas, Executive Director, ProInversion; and Reubens Amaral Junior, CEO, Banco Latinoamericano de Exportaciones.

Plans are afoot from the Ministry of Transport to enhance regulation, improve safety and increase capacity among staff, with infrastructure such as a mass transport system being viewed as not only a necessity caused by population density increases, but also vital to boosting the private sector. Allocations have set aside to refurbish the international airport, plans have been made to link the nation to the GCC Railway by 2018, and a 45-km, $5.5bn causeway to Qatar is also under construction. This chapter contains an interview with Kamal bin Ahmed Mohammed, Minister of Transportation.

OBG introduces the reader to the different aspects of the legal system in Nigeria, in partnership with Ajumogobia & Okeke. OBG talks to Ovie Ukiri, Managing Partner, Ajumogobia & Okeke, on transfer pricing regulations.

In conjunction with PwC Nigeria, OBG explores the taxation system, examining Nigeria’s investor-friendly environment. OBG talks to Taiwo Oyedele, Partner & Head of Tax, PwC Nigeria.