As inflation, uncertainty about the economic situation, and political conflicts among countries have been increasing; investors have been wondering lately, which is the safest and most beneficial place for investment?
For many investors and companies globally, the answer is Latin America. According to recent research, it has been concluded that the investors living outside of this region are not only interested in investing here but already started to look at the perks and benefits of investing in Latin America.
Despite the challenges and risks of investing in Latin America, investors and companies hope to succeed in this region. Not only this, 52% of the companies and investors agree that there is a ‘high-risk, high-reward’ case in Latin America.
In this informative article, we will dive deeper into why this market is suitable for investment purposes and how investors are successful here.
Opportunity Optimism
Investors and companies are very excited about investing in Latin America, even more than those living there. According to the survey, it is concluded that 400 investors and companies from 14 countries are twice as interested as those living there.
Investment Opportunities in Latin America
Looking towards the investment opportunities, the companies and investors have 3 most attractive aspects of investment in Latin America.
- Growth opportunities in various sectors, such as technology, media, agriculture, and financial services, by 37%.
- There is a great opportunity for entering the new markets and taking benefit of regional free-trade agreements by 38%.
- They have an opportunity to diversify their risk exposure by 27%.
Moreover, the companies and investors from the rest of the world (RoW) are also looking for the following 3 attractive sectors to invest in:
- Technology 37%
- Energy 38%
- Agriculture 34%
RoW Investors and Companies Leading the Way in Latin America
The companies and investors from the rest of the world are not only more excited than Latin America itself but also performing and developing well. Almost 88% of the companies and investors say their progress and activity in Latin America is extremely successful compared to the other 68% in this region.
The reason why RoW investors and companies are doing better than Latin American companies is that foreign companies are looking forward to experimenting and taking risks, which is an interesting angle to be in Latin America. Companies and investors that successfully navigate through the economics and politics of that area are gaining progress in Latin America.
Furthermore, 70% of the RoW investors and companies say that they are successfully completing the tasks through proper target identification, evaluation, and assessment. In addition, experience and competency, coupled with the correct knowledge and sensitivity to the local business culture, are paramount when entering the Latin American market.
To Sum Up
The uncertainty of the geopolitical climate in the Latin America region is attracting RoW investors and companies. The success stories of the RoW in this region and the opportunities for them for growth and development have made this region more welcoming.
Despite having high risks, Latin America’s status in investing opportunities is expected to rise in the future.
