Mongolia’s new four-year Action Plan is favorable to foreign investment, easing the concerns of private equity investors in the country.
The newly-elected parliament of Mongolia has approved a four-year Action Plan that helps ease concerns over foreign investment in the country, according to a statement from UK-listed fund manager Origo Partners, which has $100 million invested in Mongolia.
Although the 21-page Action Plan has yet to be published, Dale Choi, an associate at Origo, describes the plan as “ambitious and progressive” and said that the country is generally moving toward favourable foreign investment policies.
“The new government has been extremely action-oriented,” Choi said, adding that they are intent on seeing results from foreign investment in the Mongolian market, he said.
In May, the Mongolian government passed several bills regulating foreign investment in strategic sectors, causing Origo to put several projects on hold, PE Asia reported earlier.
However, the new Action Plan is more welcoming for foreign investment and includes several projects the government hopes to do in conjunction with foreign investors.
“We welcome these aggressive policies,” Choi said.
Mongolia is a resource-rich nation, but underdeveloped production chains mean that exports are low-value added and product quality varies. This provides an opportunity for first-time private equity investing, particularly in early-stage mining companies, PE Asia reported earlier.
Origo Partners is a Beijing-based private equity investment company focused on growth opportunities created by the urbanisation and industrialisation of China. Origo is listed on the London Stock Exchange.