The CEO’s Guide to the Global South

For the CEO

What’s in Play

The world order is fundamentally changing as an “America First” policy, shifting trade dynamics, and fluctuating alliances are breaking apart Western-led geopolitical and economic frameworks.

Underneath the volatility and uncertainty lies a powerful but overlooked story. A “third front” is rising in the Global South—130+ nations representing 62% of the global population and, soon, 20% of global GDP. Long seen as peripheral, these countries are pooling influence and redefining their role in the global order, economically and diplomatically.

The Global South is not a formal bloc, but a moniker these nations now embrace with pride—signaling confidence in their ability to rise on their own terms. They have resources, labor, growing consumer markets, and geostrategic relevance. Though diverse, they share defining attributes that position them as a proactive force and a field of opportunity in the global realignment:

• Geopolitically neutral, economically strategic. Global South nations are multialigned. They are maximizing leverage and business opportunities by forging new partnerships with both East and West.
• Business-friendly pragmatism. With a relentless focus on growth and reducing poverty, these economies welcome trade, investment, and innovation—advancing climate and development goals in tandem.
• A voice demanding to be heard. Through G77, BRICS+, and the G20, they are reshaping the global agenda and governance.

What’s at Stake

CEOs everywhere should take note of the growing sophistication and economic strength of the Global South. Countries in the Global South account today for approximately 18% of global GDP. Combined, GDP is projected to grow by an average of 4.2% annually through 2029, compared with 1.9% for advanced economies. Commensurate with the rapid growth, Global South trade is projected to reach $14 trillion by 2033. Countries like India, Brazil, and Indonesia are climbing the ranks of the world’s largest economies. CEOs can no longer afford to treat the Global South as peripheral—it is becoming an important engine of global growth.

Winning in the Global South

To help their organizations achieve resilience and grow in a volatile global environment, CEOs must rethink the traditional Northern-centric approach to markets and opportunities. They need diversified strategies for winning in the Global South.

Cultivate country-specific entry and growth strategies. As trade becomes more complicated and less predictable, CEOs stand to benefit by hedging country risk through diversification and a more balanced approach to global engagement. One way to do this is with a coherent, South-facing strategy that aligns with organizational goals and has clearly defined trade, investment, or supply chain objectives.

Of course, countries in the Global South are diverse and require tailored entry strategies. While the many development successes have not eliminated the growing pains common to developing economies—such as lack of infrastructure, nascent markets, and corruption—the opportunities in many places are undeniable. Due diligence and proper risk management are essential. Success requires planning, sustained investment, and patience. To achieve this, CEOs need a reliable research and planning pipeline that can help guide global strategy development and decision making.

• Potential first step: Establish a geopolitical strategy leadership team, embedding talent, real-time intelligence, scenario planning, and geopolitical foresight into decision making. By strengthening their capabilities to monitor global dynamics, companies can detect and interpret geopolitical trends in a timely fashion. A key goal is improving your organization’s capability to identify risks and opportunities and respond decisively based on a balanced view of both. For risks, leaders can conduct scenario modeling to assess exposure to potential disruptions from rising costs, tariffs, supply chain interruptions, and so on. For opportunities, companies can conduct market scanning to gauge demand, competition, regulatory support, ease of entry, and their ability to win based on the company’s product lines and capabilities.

Localize your offering. Once a company identifies a country as a destination for investment, it can create a tailored strategy involving a shift from an import-based model to local sourcing, manufacturing, and R&D. Global players will need to conduct research to understand local markets, including customers’ preferences and consumption patterns. For example, CEOs should not be surprised to find that consumers prefer local value brands over premium, international products. Success will come to those who eschew a global, top-down approach. Instead, design marketing approaches and distribution networks that accommodate local circumstances, such as the needs of customers with lower disposable incomes. Marketing can be the spearhead for matching the price of local products and accommodating branding preferences.

As credibility follows authenticity, organizations should demonstrate commitment and affinity with local communities. CEOs can set the tone from the top: that the company is committed to improving local livelihoods by investing or participating genuinely in community projects. Unilever’s Project Shakti, for example, finances women entrepreneurs in rural India to sell the company’s products in their local markets.

• Potential first step: Push the organization—not just the marketing function—to understand and embed local context into its approach. Maintain the flexibility to adopt business approaches that differ, when necessary, from established practices. Establish relationships with local agents or distributors. Gain market insights through partnerships with local industry peers, suppliers, regulators, and local staff. Businesses will also benefit by developing databases, based on localized pricing playbooks, for example, to help address challenges like inflation, fluctuating interest costs, and volatile currencies. Leaders entering new markets should consider engaging local market research firms as partners to help understand consumption patterns, demographics, and technological adoption.

Reshape your operating model. Acting on opportunities in the Global South requires a flexible, decentralized business model. CEOs can set up differentiated business units designed for a fragmented world based on cooperative or stakeholder-aligned structures to promote inclusion. Embrace digital transformation—implementing AI, data analytics, and agile workflows—to streamline operations and quickly adapt to market changes. The Global South offers CEOs opportunities to diversify and improve their supply chains. Companies are more likely to find success with supply chain restructuring when it is done sustainably. For example, companies can source locally and consider local manufacturing to improve efficiency, ensure consistent supply, and build goodwill. Forge strategic procurement alliances with suppliers, leveraging synergies within the region, and develop contingency plans, such as inventory buffers, to reduce risk from disruptions.

• Potential first step: Adapt governance frameworks to empower decision making and innovation. Frequently, large multinationals find that the advantages of global size and reach are not automatically beneficial (and can even be a hindrance) in markets where they must compete with adept local firms, diversify their supply chains, and adapt to new regulatory regimes. Grant regional autonomy by empowering fast decision making while ensuring that local operations have access to global platforms that enable scalability and cost efficiency. Two typical challenges companies face in emerging markets are a lack of in-depth understanding of local conditions and a perception that these markets do not justify R&D investment. Decentralizing R&D to regional and local innovation centers may solve both issues. Decentralization requires decisiveness and transparency about which decision powers and resources are being decentralized to avoid duplicating resources.

Cultivate talent for the future. CEOs need to prioritize the development of localized leadership pipelines through training, mentorship, and partnerships with universities. A fully realized people program should include compelling career paths and benefits to attract and retain top talent at the corporate level and in local markets. Companies should take advantage of diverse talent pools to foster innovation and improve problem solving. By building local teams, leaders can build trust and signal long-term commitment, rather than extractive intent.

• Potential first step: Prioritize the development of homegrown talent. CEOs can grow talent pipelines by partnering with local universities and vocational schools and by sponsoring education, internships, or apprenticeships. Invest in the development and retention of high-impact leaders, who should be empowered to shape strategy, not just execute orders. Collaborative engagement can foster innovation, enhance market relevance, and provide the company with valuable cultural context. Companies can develop local talent through onboarding, mentorship, and ongoing training—especially in tech and leadership. Fair wages, clear growth paths, purpose-driven work, and community engagement can all help attract and retain top talent. Companies like GE have notable leadership training programs that operate in developing countries worldwide. They are designed to fast-track young talent into leadership roles and to cultivate future leaders who understand local consumer behavior and global operational standards.

A Parting Thought

As the world trading order becomes increasingly fragmented into regional blocks, players in the Global South are successfully using their embedded multipolar outlook and neutral stance to maximize opportunities and pull their populations out of poverty. This pragmatism, in turn, opens opportunities for CEOs of companies that have the capability to bring jobs, training, and economic growth. The impressive growth taking place in many Global South countries means that these regions will become attractive consumer markets of the future. There are risks, of course, but the potential benefits outweigh the challenges in many places, and companies that invest early and with the right mindset and approach can benefit locally and globally.