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MARKETS

August 8, End Of Day

• Argentina
  • S&P MERVAL Index = 1,530,365.70 (YTD = 64.61%)
• Brazil
  • BOVESPA Index = 128,660.88 (YTD = -4.12%)
• Chile
  • S&P IPSA Chile = 3,412.01 (YTD = -1.60%)
• Colombia
  • MSCI COLCAP = 1,299.24 (YTD = 8.70%)
• Mexico
  • IPC Mexico BMV = 52,876.55 (YTD = -7.86%)
• Peru
  • S&P/BVL Peru = 28,536.39 (YTD = 9.92%)

BUSINESS

GenAI Redefining Jobs

A recent ILO and World Bank study finds that nearly 17 million jobs in the region could benefit from GenAI, but are limited by digital access and infrastructure gaps.

Market Overview

• Exposure Statistics: Approximately 30-40% of employment in Latin America is exposed to GenAI. This includes a small portion of jobs at risk of automation (2-5%), a larger portion with augmentation potential (8-14%), and many jobs in an uncertain category, "the big unknown."
• Country Variability: Exposure levels vary significantly, with some countries showing higher levels of exposure, indicating differing impacts across the region.

Socioeconomic Factors

• Gender: Jobs held by women are twice as likely to face automation risks compared to those held by men.
• Urban vs. Rural: Urban jobs are more exposed to GenAI than rural jobs, reflecting the concentration of technology in cities.
• Age and Education: Younger workers with higher education levels are more likely to interact with GenAI, especially in formal sectors like finance, insurance, and public administration.
• Income: Higher-income individuals and those in formal employment have greater exposure to both automation and augmentation potential.

Digital Divide

• Computer Use: Access to digital infrastructure is crucial. Many jobs that could benefit from GenAI are hindered by the lack of computer use at work.
• Country-Specific Gaps: In countries with lower income levels, significant digital gaps exist, preventing many jobs from leveraging GenAI technologies.

Challenges

• Infrastructure: The lack of access to digital technologies at work is a major barrier, preventing nearly half of the potentially beneficial jobs from realizing productivity gains.
• Skill Levels: Foundational digital skills are often lacking, limiting the effective use of GenAI in many regions.

Opportunities

• Targeted Investments: Improving digital infrastructure and access to technology can significantly enhance productivity and job quality in the region.
• Policy Support: Governments need to implement supportive policies to bridge the digital divide and enable wider adoption of GenAI tools.

Addressing the digital divide is essential to fully harness the benefits of GenAI in Latin America. By investing in digital infrastructure and education, the region can transform its labor markets and boost productivity, ensuring that the benefits of technological advancements are widely shared.

Fundraising picks of the week

Welaw: Welaw simplifies legal processes by providing a digital platform for creating and signing contracts. Utilizing AI and blockchain technology, it offers secure, fast, and user-friendly services for generating legal documents without intermediaries. Dive deeper into the case here.

Ualabee: Ualabee offers data solutions that enhance urban mobility by integrating multiple transport operators into a single platform. Serving over 3 million users across 30 cities, their B2B offerings include trip planning and mobility analytics, utilized by prestigious clients such as Google and the World Bank. Get to know the case here.

Einsted: Einsted’s technology transforms methane into hydrogen, which is then reused for combustion, while carbon is fixed into graphene. This process is not only low in operating costs and environmentally friendly but also targets clients responsible for approximately 20% of global emissions. Get to know the case here.

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Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Panama: Panama's government has authorized the economy ministry to secure up to $9 billion in financing through two new decrees. The first decree allows for the issuance of treasury notes on the local market for up to $6 billion with maturities between two and ten years. The second decree permits the ministry to enter financing agreements with local and international institutions for up to $3 billion.

Paraguay: Moody’s upgraded Paraguay’s credit rating to Baa3, citing strong economic growth, resilience to shocks, and effective institutional reforms. The upgrade highlights economic diversification and infrastructure investment. The outlook is stable, with expected growth supported by key projects. This follows a BB+ upgrade by S&P Global in February.

Dominican Republic: Mexican cement maker Cemex announced the sale of its operations in the Dominican Republic to Cementos Progreso and partners for approximately $950 million. The sale includes a cement plant with two production lines and related assets, as well as export businesses to Haiti.

FURTHER READING

Check our recently published insights here. Recent post:

🚀 The Potential of Healthtech in Latin America

Latin America's healthtech sector is positioned for growth, driven by widespread smartphone usage and a rising demand for affordable healthcare solutions. The region offers a fertile ground for innovations that enhance healthcare delivery and improve patient outcomes.

Key Growth Drivers:

1. 📱 Tech Adoption: With 71% smartphone penetration in 2019 and rising, digital platforms are increasingly used to deliver healthcare remotely, reaching a broader audience.
2. 💡 Affordable Care: Healthtech solutions like telemedicine and remote monitoring are making healthcare more accessible and cost-effective, addressing the escalating costs of traditional care.
3. 🌐 Government Support: Increased government initiatives are bolstering the sector, providing a supportive environment for healthtech innovations.

🔍 Read more here.