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While global insurance markets have been showing lower levels of growth in recent years, Peru’s insurance sector has expanded apace, averaging 15% annual growth in premiums over the past five years. There are 14 insurance companies providing a variety of plans and services. Life in particular has performed particularly well by global standards: while life insurance sales dropped by 4.3% globally in 2009, premiums in Peru grew 9.73% that year. Though insurance penetration in the country remains low, at 1.6%, recent levels of growth indicate that the Peruvian population is becoming more attuned to the benefits of insurance plans, boding well for future expansion in the sector.

Strong economic growth in recent years has enabled Peru’s capital markets to remain relatively unscathed by the global economic crisis that devastated many exchanges around the globe. While the Lima Stock Exchange (Bolsa de Valores de Lima, BVL), with market capitalisation of around $135bn, is one of the region’s smaller exchanges, it is likely to attract interest based on its recent successes. Indeed, in March 2012 it was reported that the exchange had grown 19.1% year-on-year. The BVL still must concentrate on building a broader and deeper marketplace with more regularly traded companies. The focus for the exchange now is on attracting more institutional and retail investors to build a more solid foundation for domestic capital markets. This section features interviews with Walter Bayly, CEO, Banco de Crédito del Perú; and Francis Stenning, President, Lima Stock Exchange.

As banks in the US and Europe faced buyouts and nationalisation, Peru’s banking sector held firm in the wake of the financial crisis. With a sound regulatory body, hefty capital reserves and limited exposure to complex financial instruments, no Peruvian banks were forced to close their doors. The country currently has 15 banks and 59 financial institutions, including 34 microfinance institutions, and increasing bank penetration throughout the country is a priority for the sector. Growth in lending rates and deposits have indicated that more people are taking advantage of the country’s banking services and overcoming historical distrust in banking institutions. Further retail operations are likely to remain the focus in the years to come, as the sector continues its expansion. This chapter includes an interview with Julio Velarde, President, Central Reserve Bank of Peru; and a roundtable discussion with Eduardo Torres-Llosa, CEO, BBVA Continental; José Antonio Blanco Cáceres, CEO, Citibank; Luis Felipe Castellanos, CEO, Interbank; and Carlos González-Taboada, CEO, Scotiabank.

A dynamic emerging market, Peru has enjoyed a decade of sustained economic growth driven principally by its export-oriented extractive industries, with exports reaching a record $46.3bn in 2011. Even in spite of the global economic crisis, Peru posted positive growth of 0.8% in 2009 and rebounded impressively with 8.8% growth in 2010. The government has begun putting a greater focus on social equality and poverty reduction programmes, supporting agricultural development and restructuring policies on mining royalties. Government reserves and debt are both at healthy levels. Meanwhile, though inflation has been rising, it remains relatively tame compared to previous decades. This chapter includes interviews with Luis Miguel Castilla Rubio, Minister of Economy and Finance; Milton von Hesse, Executive Director, ProInversión; Diego de la Torre, Chairman, La Viga, and President, UN Global Compact-Peru; Alessandro Texeira, Brazil’s Deputy Minister of Development, Industry and Foreign Trade; José Luis Silva Martinot, Minister of Foreign Trade and Tourism; and Muhamad Noor Yacob, Executive Director, Asia-Pacific Economic Cooperation.

As one of the most modern and efficient shipping centres in the region, the transport and logistics facilities on Bahrain’s Muharraq Island continued to draw business to the Kingdom throughout 2011. The Khalifa Bin Salman Port (KBSP), which opened in 2009, showcases the government’s dedication to further developing the country’s transport offerings, which it sees as integral to its diversification push. On the roads, although traffic in Bahrain has increased and can be acute at rush hour and on weekends, a variety of upgrades are planned or are under way which should substantially alleviate existing congestion problems. The Ministry of Works (MoW), which oversees road design and construction projects, is in the process of implementing a comprehensive plan for the nation’s road and highway system. This chapter includes an interview with Hassan Ali Al Majed, Director-General, General Organisation of Sea Ports.

While activity and liquidity on Ghana’s capital markets are both still relatively low, transaction values have been on the rise and certain reforms are set to inject significant funds into the market in 2012. As of March 2012 there were 34 companies listed on the Ghana Stock Exchange (GSE). The GSE’s value reached $264.4m, the highest to date. The agro-processing and petroleum industries have been among the best-performing sectors in the GSE in 2012. The government is seeking to undertake reforms that will increase liquidity, including pushing firms with few shares to dilute them. Further measures, such as increased tax incentives, might also be instated to boost listings. This section contains an interview with Kofi Yamoah, Managing Director, Ghana Stock Exchange (GSE); and a viewpoint by David Awuah-Darko, Managing Director, IC Securities. In conjunction with IC Securities, OBG provides analyses and data for five major shares on the GSE.