Emerging markets are no longer the future of the global economy – they are its driving force, shaping industries and disrupting norms. The International Monetary Fund (IMF) forecasts that by 2030, these dynamic regions will account for over 60% of all global economic growth. With rapidly expanding middle classes and vibrant, youthful populations, countries like Brazil, India, and Nigeria are poised to rewrite the rules of global commerce. These markets aren’t just growing consumer bases; they are innovation hubs brimming with untapped opportunities.
What unlocks this potential? Technology. From e-commerce platforms that connect businesses with untapped markets to mobile banking solutions revolutionizing financial inclusion, technology is tearing down traditional barriers. It’s enabling businesses to scale faster and smarter – transforming challenges into lucrative opportunities. These innovations are catalysts for change, empowering small enterprises to rewrite their growth trajectory and thrive in markets that were previously considered too complex to penetrate.
But the power of technology extends beyond businesses. It’s reshaping socio-economic landscapes, giving young populations new pathways for skill development, entrepreneurship, and job creation. Mobile technology and widespread internet connectivity have democratized access to global markets, allowing young entrepreneurs to build businesses that would have been unthinkable a decade ago. Take Africa as an example: the continent’s digital economy is projected to skyrocket from $180 billion in 2025 to add a staggering $712 billion to GDP by 2050, according to the International Finance Corporation (IFC). This signals a seismic shift in economic power.
For businesses brave enough to step into these emerging markets, the rewards are substantial – but only for those who harness the full potential of technology. These regions are not waiting for permission to innovate, they are setting the pace for a new era of global trade.
Emerging Markets are Full of Opportunities
Over the next two decades, emerging markets are expected to be the engines of global growth. According to S&P Global, emerging economies are projected to average a 4.06% GDP growth rate through 2035 (compared to 1.59% for advanced economies) and are expected to contribute approximately 65% of global economic growth by 2035. These aren’t future possibilities: the shift is already in motion. Over the past 15 years, these markets have accounted for nearly two-thirds of global GDP growth and more than half of all new consumption.
At the core of this explosive growth lies rapid urbanization. Over the past two decades, the consumer class in emerging markets has doubled to 2.4 billion people. This shift isn’t just demographic; it’s economic. Additionally, in 2024, emerging and developing economies accounted for over 80% of the increase in global energy demand, which marks emerging-market consumers as a dominant force in the global economy, as they already make up most of the demand in many product categories like white goods and electronics. These markets don’t only follow trends: increasingly, they set them.
Another key factor behind the impressive potential of emerging markets is its large youth population. For example, in Africa, 60% of the population is under 25 – by 2050, one in four people on the planet will be African. Similarly, in Latin America, young people between the ages of 15 and 24 make up 20% of the population, the largest proportion of young people ever in the region’s history.
This youth surge, paired with unprecedented access to technology, could transform these continents into global power hubs. But here’s the catch. A young, growing population is only an advantage if it’s harnessed effectively. If these billions of youths are equipped with jobs and opportunities, the result is an economic transformation powered by rising incomes, increased spending, and prosperity all around. Ignore them, and the numbers invert. High unemployment and underemployment among youth can become a demographic time bomb, leading to possible instability and unrest.
Right now, many emerging markets are facing the latter. Youth unemployment rates remain alarmingly high. On average, they’re double the broader workforce. Latin America, for example, paints a stark picture. Youth face higher unemployment despite being better educated than previous generations and often settle for lower wages when employed.
Emerging markets urgently need innovative solutions to empower these young populations and unlock their full potential. The opportunity here is colossal. Imagine the impact if these millions of young people were contributors to their local economies, driving demand, innovation, and growth. Powered by technology, emerging economies could transform this untapped force into the engine driving the next wave of global prosperity.
The bold reality is this: the future of the global economy hinges on how emerging markets engage with their young population and ride the crest of urbanization. Ignore them, and you risk economic and social disruption. Empower them, and the possibilities are boundless.
How Technology Can Be the Catalyst for Growth in Emerging Markets
Technology holds unmatched potential to transform emerging markets by creating access to better job opportunities and advancing skill development. Case in point? By January 31, 2025, the information technology sector made up 23.68% of the MSCI Emerging Markets Index. This sharp upward trajectory underscores the growing significance of tech as a force driving economic progress in these regions.
The rapid spread of smartphones and internet access in emerging markets is a defining factor behind this tech-led transformation. Take Africa, where 72% of the population regularly uses mobile phones, and there are more than 300 million mobile money accounts, making it the largest hub for mobile payments globally. Likewise, in Latin America, smartphones accounted for 80% of all mobile connections in 2023 – and this figure is expected to climb to 92% by 2030.
These digital milestones aren’t just numbers; they’re foundational to economic growth. However, for technology to make the most impact, it must be accessible to as many people as possible – which is why it needs to be built with small businesses in mind.
Small and medium-sized enterprises (SMEs) are the backbone of economies in emerging markets. Across Africa, SMEs account for more than 90% of all enterprises and support over 80% of jobs. A similar story plays out in Latin America and the Caribbean, where SMEs form 99.5% of businesses, employ 60% of the workforce, and contribute 25% of GDP.
Yet despite their enormous economic significance, SMEs in these regions are often left behind when it comes to accessing the technology and resources they need to thrive. The reality is that the latest advancements in tech infrastructure and investment are often priced out of their reach, favoring multinationals and larger enterprises. This barrier limits the transformative potential of digital innovation for smaller players – and by extension, for the economies that depend on them.
To bridge the gap, technology must start working for SMEs. This begins with accessible digital platforms that connect local producers to global brands and distributors or link smaller retailers with larger suppliers. Such solutions create seamless supply chains and open up profitable opportunities for smaller businesses. The future of emerging markets lies in empowering SMEs with the right tools to compete, grow, and reimagine their role on the global stage.
RedCloud’s Intelligent Open Commerce Platform™ is Driving Growth for Millions of Small Businesses
Across emerging markets, millions of small businesses in the consumer goods sector are caught in a broken system. They face barriers that prevent them from connecting directly with global brands and distributors, making it harder to restock stores efficiently, cut costs, and fuel growth.
E-commerce promised a solution – but the traditional e-commerce model is failing these businesses. Built to serve third-party platforms, it excludes small businesses from trading freely or connecting with other businesses. Worse, it disrupts existing supply chains, undermining decades-old relationships that retailers rely on to thrive.
RedCloud is changing the game. We’ve created the world’s first Intelligent Open Commerce Platform™ to democratize trade and transform how businesses in emerging markets connect, trade, and grow. This revolutionary platform enables businesses of all sizes to directly access a wide range of global and local brands, empowering them with the products they need to thrive and the freedom to serve their customers better.
This isn’t just a platform, it’s a bold new frontier for trade. RedCloud’s technology is breaking down barriers, unlocking growth, and creating opportunities for millions of small businesses in emerging markets. The impact is massive – not just for businesses but for entire economies through job creation and community empowerment.
The old ways of doing business have failed to deliver for small businesses. With RedCloud’s Intelligent Open Commerce Platform™, the future of trade is open, fair, and profit-driven for every player, not just the big ones.
To see how RedCloud is reshaping commerce and unlocking growth for millions of small businesses, visit www.redcloudtechnology.com/contact.
