Argentina Business Investment Forum: challenges and opportunities
The first edition of the Argentina Business Investment Forum was held in Buenos Aires from September 12 through September 15 as an initiative of the Federal Government and was hosted by the Argentina Investment and Trade Promotion Agency.
The Argentina Business Investment Forum was aimed to highlight investment opportunities and attract foreign direct investment. Gathering business leaders and government officials from Argentina and all over the world, the Argentina Business Investment Forum served as a springboard for showcasing investment opportunities and entice high-level meetings between Argentinean business, government leaders and international investors and partners.
Our firm had the honor to get an invitation to participate in the Argentine Business Investment Forum, which gave us a close and personal view of where Argentina is heading. A summary of some relevant data will be presented below.
First of all, the forum was an opportunity to have updated key figures and data on the potential of Argentina as an international investment destination, such as:
- 8th largest country in the world with 53% of agricultural land;
- 3rd largest economy in Latin America with a GDP of $500Bn (after Brazil and Mexico);
- 2nd highest GDP per capita in the region in PPP terms (U$22,600, after Chile);
- 2nd highest proportion of middle-class population, lowest Gini coefficient in Latin America;
- Ranked #1 in Latin America in Human Development Index; #1 in Education Index; 98% literacy rate (Age 10 and over can read and write); High English Proficiency (Ranks 15º in the world according to the Education First English Proficiency Index);
- World-class labor force, renowned for its technical skills, creativity, and versatility;
- High connectivity levels, with 75% broadband and 141% mobile penetration;
- 20 International Airports; 14 ports; 182,000 km of routes and 25,023 km of railways.
(Sources: Argentina Business Investment Forum and Argentina Investment and Trade Promotion Agency)
According to the Argentina Investment and Trade Promotion Agency, investment opportunities for approximately USD 240 Bn have been identified across multiple sectors, both at federal and local levels. Some of these areas are:
- Transportation infrastructure;
- Federal infrastructure and public works;
- Power and renewable energy (wind – 3º largest wind reserve in the world- and solar – 2º largest solar reserve in the planet);
- Mining (copper, gold, silver, lithium – 4º largest reserve in the world – potassium);
- Oil & Gas (4º largest shale oil reserve in the world);
- Real Estate and Urban development;
- Telecommunications & High Technology; and
The Federal and Local governments will foster the private sector participation in the finance, development, and operation of these sectors in multiple forms (e.g. concessions, construction contracts, etc.) and grant different and important incentives for investments.
Venture capital development will also be a public policy backed by the Entrepreneurship and Small and Medium Enterprises Secretariat of the Argentine Ministry of production. The goals are double: on one hand, to support the creation of accelerators and expansion venture capital funds, specialized in launching, assisting and financing new companies; on the other hand, to promote the creation of high-impact Argentine business venture. Benefits for those qualifying for the programs will be significant.
Investment programs, incentives and benefits are not only backed by the Federal Government but also by the City of Buenos Aires, the Buenos Aires Province and some other major Provinces of Argentina, such as Santa Fe, Córdoba and Río Negro.
All of these programs and initiatives have a general legal business background (e.g. for setting up the businesses, human resources, taxes and intellectual property protection) and some activities even specific regulatory frameworks (such as those for energy and natural resources, mining, oil and gas, banking, insurance and securities). Therefore a professional and careful legal review and evaluation have to be conducted to take the most advantage of the business opportunities presented. Please, contact us to request any further information needed.
Mario Eduardo Castro Sammartino
Our publications exclusively express the author´s opinion and do not purport to be legal counsel on any case. Should you need it, you must consult with your trusted lawyer or may contact us at your convenience. If you liked the article, please, share it.
Recent articles in our Legal Blog
Salaries and working conditions in Argentina may be governed by the Contract of Employment Law No. 20,744 (the CEL), additional laws, collective bargaining agreements, and company or individual agreements.
Further to branches , foreign companies usually do business in Argentina through subsidiaries. Following, we will cover different types of subsidiaries in Argentina and their basic setting-up requirements.
Labor Guide to Doing Business in Argentina: hiring employees in Argentina
Continuing with our series of articles covering different labor issues in Argentina, we will cover now hiring employees in Argentina.
Foreign companies usually do business in Argentina through branches or subsidiaries. In this opportunity of our future Commercial Guide to Doing Business, we will focus on branches in Argentina.
As the kickoff of a series of article that would be eventually combined in a full Labor Guide to Doing Business in Argentina, we will now cover the sources of Argentine labor law.