Week 46, 2024 - Latin America

Newsletter

Latin America’s response to climate-driven health challenges highlights the critical role of social innovation in tackling complex issues. With increasing risks to food security, public health, and agricultural resilience, communities are finding creative ways to adapt, leveraging local strengths and partnerships. Key insights from newly...

Published on

November 21, 2024

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"If the heart was free of passions and the mind rid of illusions, is this not the state of the greatest freedom?" - Rubén Darío (Nicaraguan poet)

MARKETS

November 14, End Of Day

Argentina
- S&P MERVAL Index = 2,087,646.57 (YTD = 124.55%)
Brazil
- BOVESPA Index = 127,791.60 (YTD = -4.76%)
Chile
- S&P IPSA Chile = 3,508.32 (YTD = 1.18%)
Colombia
- MSCI COLCAP = 1,347.68 (YTD = 12.76%)
Mexico
- IPC Mexico BMV = 50,553.31 (YTD = -11.91%)
Peru
- S&P/BVL Peru = 30,429.53 (YTD = 17.22%)

BUSINESS

Social Innovation at the Forefront for Health and Climate

1. Tackling Food Insecurity through Social Solutions

Rising food prices and limited access underscore Latin America’s paradox as a major food exporter with local insecurity. Social innovation is stepping in to bridge gaps and make nutritious food accessible.
- Innovative Food Redistribution: Initiatives like Nilus in Argentina and Peru redirect surplus food to low-income neighborhoods, reducing waste and improving nutrition.
- Empowerment through Education: Brazil’s CREN combines nutrition education and job training, equipping communities with skills to address food insecurity sustainably.

2. Expanding Healthcare Access via Social Enterprises

Climate-driven health risks are overwhelming Latin America’s healthcare systems, especially in rural areas with limited resources. Social enterprises are creating scalable solutions to improve access and equity.
- Affordable Rural Care: Argentina’s Umana provides subscription-based healthcare, addressing preventive care needs for underserved populations, particularly women.
- Telemedicine Outreach: Digital health solutions are increasingly bridging healthcare gaps, enabling remote communities to receive essential care.

3. Supporting Climate-Resilient Agriculture

Climate change poses severe risks to Latin American agriculture, threatening soil quality and crop yields. Social innovation in sustainable farming is helping build resilience.
- Regenerative Farming Practices: Colombia’s Ecosistema Jaguar supports regenerative agriculture, helping farmers adopt climate-smart techniques that maintain soil health and boost productivity.

4. Mobilizing Impact Investment for Sustainable Development

Economic challenges and restrictive policies often hinder progress, but impact investing networks are essential in funding sustainable solutions across the region.
- Latimpacto’s Role: By channeling private capital into agritech and education, Latimpacto connects impact investors with initiatives that tackle pressing social and environmental needs, fueling innovative solutions.

Social innovation is reshaping Latin America’s response to climate and health challenges. From food redistribution to regenerative farming and telemedicine, these initiatives empower communities and pave the way for resilient, sustainable growth.

Fundraising picks of the week

Coco: Bridging the digital gap, Coco offers an "Internet in a box" solution, striving to provide internet access to every community. Their innovative approach has already connected over 10,000 people to the internet. Dive deeper into the case here.

Recylink: This B-Corporation, profitable since July 2023, connects waste generators, transporters, and destinations. With a 2x YoY revenue growth and only a 2.3% churn rate since 2021, Recylink demonstrates a strong market presence. Dive deeper into the case here.

Beu: Beu is revolutionizing monetization and ownership for creators. In its first 15 months, Beu achieved a remarkable 2.6M with a consistent growth rate of over 30% MoM. Dive deeper into the case here.

Interested in Latin American businesses? Subscribe here to get business updates in the verticals that interest you the most.

Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Argentina: Fintech leader Ualá secured $300 million in funding from Allianz and Alan Howard, valuing the company at $2.75 billion. Launched in 2017, Ualá now serves 8 million customers across Argentina, Mexico, and Colombia. This investment is one of Latin America's largest recent VC rounds and comes amid President Javier Milei's reforms aimed at stabilizing Argentina's economy and fostering tech growth. Ualá’s CEO, Pierpaolo Barbieri, aims to make Ualá Argentina’s largest bank, capitalizing on the country’s underbanked population and expanding private credit market.

Mexico: President Claudia Sheinbaum plans to constitutionally protect Mexico's non-GMO white corn, highlighting its importance for biodiversity and health. Mexico, self-sufficient in white corn for tortillas, imports GMO yellow corn from the U.S. for livestock feed. This follows former President Lopez Obrador's efforts to limit GMO imports, sparking a USMCA dispute, with a panel ruling expected by Nov. 29 and broader trade talks in 2026.

Brazil: Brazil has set a new climate pledge to reduce greenhouse gas emissions by 59-67% by 2035, compared to 2005 levels. This updated target, ahead of COP29 in Azerbaijan, builds on a prior goal of a 53% reduction by 2030. The government aims to achieve climate neutrality by 2050, though environmental advocates argue the pledge may fall short of the global 1.5°C goal.