Before we dive in, I want to set the stage. What is South-South trade, anyway? this refers to the increase in economic exchange and collaboration between developing countries in South main regions being Asia, Africa, and the Middle East.

This important because South-South trade reached $5.3 trillion in 2022 which accounted for 21% of global trade, up from 19% a decade earlier, with is not projected to hit $32.6 trillion by 2030.

Why is this happening? For one, many of these countries have protectionist policies in place, and geopolitical tensions are reshaping global supply chains. This shift is transforming trade among developing nations into a powerful growth engine, one that can no longer be ignored.

For venture capitalists, this rapid expansion of South-South trade is this treasure chest in emerging markets. VC firms who understand these the global landscape, build solid deal flow, and master cultural nuances and strategic partnerships are likely to come out as big winners in this new era.

Trade corridors are flourishing across Asia, Africa, and the Middle East, driven by initiatives like the African Continental Free Trade Area and the ASEAN Economic Community. These agreements are more than bureaucratic milestones they’re creating fertile ground for opening up new markets and boosting  growth through production, consumption, and innovation.

The biggest growth drivers? It’s tech, manufacturing, and primary commodities.

Intra-ASEAN trade, particularly in electrical machinery and fuels, along with Africa's intra-continental trade in key export sectors, present compelling investment opportunities for VCs. But the real game-changer is China. Once the world’s manufacturing hub, China is now setting up production facilities overseas.

That is why unlocking the full potential of South-South connectivity requires not only strategic investment in digital infrastructure, fintech solutions, and supply chain innovations but also education for Founders, Investors, Government and Corporate, At 2080 Ventures, this is exactly what we do, but that’s a story for another day.

VCs need to see how to facilitate these, by backing things that make trade more efficient, transparent, and sustainable. Bridge critical financing gaps, such as access to working capital and trade finance.

So, if I had to break it down, here’s where I’d focus:

1. Fintech: Here we need solve for critical issues like limited access to credit, cross-border payment inefficiencies, and the high cost of traditional banking. Digital lending platforms, mobile payment solutions, blockchain-based trade finance, and decentralized finance (DeFi) this can be tricky based on government regulations in these area change a lot, Bank in these nations are no less then god and the only to make this happen is to work with the banks to become the innovative and work startups.
2. Logistics & Supply Chain Tech: As trade among emerging markets grows we need back startups that enhance transparency, reduce costs, and improve supply chain resilience are key players. So who are the Digital freight forwarders, last-mile delivery platforms, supply chain optimization tools, and AI-powered logistics platforms.

Once the two are done, this will allow everything to be built on top

1. E-commerce & B2B Marketplaces: Amazon for X, like Coupang was for Korea, We need E-commerce platforms that will cater to local and regional markets and of course B2B marketplaces that streamline cross-border trade within the Global South are particularly attractive.
2. Agritech: Agriculture remains a major sector in many emerging markets. Startups that enhance agricultural productivity, access to markets, and efficient distribution can drive substantial economic growth and trade volume. So things like Agri-finance platforms (this can also be Fintech), precision agriculture tech, digital marketplaces for farmers, and cold chain solutions (this can also be Supply Chain Tech).
3. Manufacturing & Industry 4.0: In lots of these part of the world manufacturing ****is outdated and startups that modernize manufacturing facilities through automation, robotics, and AI will drive efficiency will be the once to look out for. So IoT in manufacturing, AI-based production optimization, etc.
4. Infrastructure & Construction Tech: We are seeing a lot in Saudi Arabia and as infrastructure development fuels trade growth, we need to look for startups that provide innovative construction solutions and infrastructure tech can benefit from large-scale projects across regions.
5. Healthtech: South-South trade is not just about goods but also services. Healthtech startups that enhance access to healthcare and improve health outcomes are critical to long-term regional development.

The next decade isn’t just about finding opportunities it’s about creating them by bridge financial gaps, and focusing on foundations for sustainable growth across the global south and of course the most important part creating liquidity and return for our investors.

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