Introduction
In the complex world of cross-border infrastructure and strategic access, understanding institutional dynamics is often more critical than financial modeling. To explore these realities, CrossborderLedger spoke with Dror Shvetz, Co-Founder & Executive Director of VERTEX Strategic Group, a firm specializing in strategic access and institutional execution.
Assessing Institutional Viability
When evaluating a cross-border infrastructure opportunity, Shvetz emphasizes that the first question should not be about profitability. "The first question we ask is not whether the project is profitable. It's whether the government genuinely wants it."
He explains that successful projects begin with institutional alignment. "We look at whether the project supports the country's national priorities, whether the relevant authorities are aligned, and whether there is long-term commitment beyond individual decision-makers." This approach reflects a core principle: "Business follows institutions - not the other way around."
Common Bottlenecks in Government Procurement
Many qualified firms overlook the procedural and relational complexities of government procurement. According to Shvetz, "Many companies focus on winning a tender. We focus on understanding the institution behind it."
The biggest delays, he notes, are rarely technical. "They come from misaligned expectations, regulatory processes, and insufficient stakeholder engagement. Companies that invest time in understanding how governments actually make decisions usually move much faster." This insight aligns with broader research on public procurement challenges in emerging markets.
Commodity Pathways vs. Capital Pathways
Shvetz draws a clear distinction between how commodities and capital enter new markets. "Capital usually follows confidence. Commodities often create that confidence first."
He explains that commodity trade can establish working relationships, demonstrate execution capability, and build trust between the private sector and public institutions. "We've seen many situations where commodity trade became the foundation for broader infrastructure and investment discussions." This dynamic is particularly relevant in resource-rich regions where critical minerals supply chains are reshaping investment patterns.
Political Risk in Cross-Border Agreements
Political risk is a perennial concern, but Shvetz cautions against overreaction. "Political risk should never be ignored, but it should also never be exaggerated."
He advocates for structuring agreements around durable institutions rather than transient personalities. "Strong agreements are built around institutions, legal frameworks, and transparency, not around individual personalities. Governments change, administrations change, but well-structured agreements are designed to remain stable through those changes." This perspective is supported by best practices in political risk insurance and sovereign contracting.
The Convergence of Infrastructure and Commodities
The traditional separation between infrastructure and commodities is dissolving. "Today, infrastructure and commodities are no longer separate conversations."
Shvetz points to the growing interdependence: "Critical minerals require infrastructure. Infrastructure requires reliable supply chains. Governments increasingly look for partners who understand both." This convergence has transformed the role of strategic advisory firms. "Today, success is less about opening doors and more about connecting governments, industry, finance, and long-term implementation into one coherent strategy."
Key Takeaways for Practitioners
- Prioritize institutional alignment over financial projections when evaluating cross-border opportunities.
- Invest in understanding government decision-making processes to avoid procurement delays.
- Leverage commodity pathways as a foundation for broader infrastructure and investment relationships.
- Structure agreements around institutions and legal frameworks, not individual personalities, to mitigate political risk.
- Adopt an integrated approach that connects infrastructure, commodities, and strategic access.
For more insights on strategic access and institutional execution, visit VERTEX Strategic Group.