“The only problem is getting comfortable with myself. I have to try to do the best I can.” - Alfonso Soriano (Dominican former MLB baseball player)

MARKETS

September 26, End Of Day

• Argentina
  • S&P MERVAL Index = 1,715,670.67 (YTD = 84.94%)
• Brazil
  • BOVESPA Index = 133,009.78 (YTD = -0.88%)
• Chile
  • S&P IPSA Chile = 3,537.04 (YTD = 2.00%)
• Colombia
  • MSCI COLCAP = 1,331.64 (YTD = 11.42%)
• Mexico
  • IPC Mexico BMV =  53,590.52 (YTD = -6.61%)
• Peru
  • S&P/BVL Peru = 30,159.50 (YTD = 16.18%)

BUSINESS

5G in Latin America: Key Developments and Future Outlook

As Latin America continues its digital transformation, the success of 5G will be pivotal in driving future economic growth and innovation. The region has witnessed rapid growth and significant economic impact of 5G, yet, critical challenges must be addressed to unlock its full potential.

1. Rapid Adoption of 5G

• 40 5G networks have been deployed across Latin America and the Caribbean, marking the region's entry into the next generation of mobile connectivity. Adoption is expected to accelerate significantly over the coming years, with projections indicating that 5G connections will account for nearly 60% of the region’s total mobile connections by 2030. This growth trajectory suggests that 5G will soon overtake older technologies like 2G, 3G, and even 4G in terms of market share.

2. Economic Boost from 5G

• The deployment of 5G networks is poised to deliver substantial economic benefits to Latin America, contributing more than $60 billion to the region's GDP by 2030. This represents a 0.9% increase in the region's total GDP, driven by innovations in sectors such as services, manufacturing, and smart city development. The technology will enable advancements like IoT integration, enhanced AI applications, and the development of smart grids, all of which are expected to improve efficiency, reduce costs, and create new business opportunities.

3. Overcoming Challenges for Growth

• Despite its promising future, the rollout of 5G in Latin America faces several challenges. Key issues include the allocation of spectrum, which has been uneven across the region, leading to delays in some markets. Additionally, the high costs associated with building the necessary infrastructure, particularly in rural areas, present significant hurdles. Regulatory frameworks are also varied, with some countries lagging in the establishment of clear and supportive policies for 5G deployment. Addressing these challenges is essential for the region to fully capitalize on the transformative potential of 5G technology.

Fundraising picks of the week

Avancargo: a B2B trucking platform that provides carriers and shippers with better availability by connecting supply and demand. Avancargo provides transparent management towards all those involved in the logistics chain. 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 low in operating costs and targets clients responsible for approximately 20% of global emissions. Get to know the case here.

Copper3D: Utilizing antimicrobial nanotechnology, Copper3D aims to eliminate microorganisms from devices manufactured through additive processes. They are developing antimicrobial and recyclable materials for NASA. Get to know the case here.

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Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Brazil: Microsoft has announced a $2.7 billion investment in Brazil over the next three years to boost its cloud infrastructure and AI capabilities. The investment, part of the "Microsoft Mais Brasil" initiative, is the company's largest in the country. Microsoft aims to expand its data centers in São Paulo and provide AI training to 5 million people. The company projects that AI adoption could add up to 4.2 percentage points to Brazil's economic growth by the decade's end.

Chile: The Chilean government has selected six priority areas for new lithium extraction projects, led by private companies. Proposals are due by end of the year with consultations with Indigenous communities starting in October. The plan aims to boost Chile's lithium production by 70% by 2030, with a mix of state-run and private investment. Chile is the world's second-largest lithium producer.

Argentina: Since President Javier Milei took office in December, Argentina's foreign currency deposits have surged by $8 billion, reaching over $24 billion. This spike is attributed to pro-market austerity measures and incentives aimed at attracting dollars back into the financial system. Milei's amnesty program, allowing savers to return funds without penalties, runs until end of September, helping to support the economy and stabilize state finances.

FURTHER READING

Check our recently published insights here. Recent post:

🌎 Climate Tech Challenges in Latin America

As Latin America advances in climate technology, it faces significant challenges that could impact the growth and effectiveness of this vital sector.

Key Challenges:

• Skilled Workforce Shortage: There is a critical need for more trained professionals in climate tech, with existing talent often drawn to other industries.
• Infrastructure and Adaptation: Intensifying climate events require robust infrastructure and effective strategies to mitigate impact and economic losses.
• Financial Constraints: Significant investment is needed to transition to a green economy, yet financial institutions must also navigate risks from climate events.
• Regulatory and Market Barriers: Entrepreneurs in climate tech face hurdles such as complex regulations and a relatively small market, which can impede startup growth and scalability.

Addressing these challenges is crucial for ensuring the success and sustainability of climate tech initiatives in the region.

🔍 Read more here.