“In the mirror one morning. It was seen on outside, forgotten on the inside.” - Josefina Plá (Paraguayn poet)

MARKETS

November 22, End Of Day

• Argentina
  • S&P MERVAL Index = 2,211,988.06 (YTD = 137.92%)
• Brazil
  • BOVESPA Index = 129,125.51 (YTD = -3.77%)
• Chile
  • S&P IPSA Chile = 3,550.88 (YTD = 2.40%)
• Colombia
  • MSCI COLCAP = 1,391.96 (YTD = 16.46%)
• Mexico
  • IPC Mexico BMV = 50,430.02 (YTD = -12.12%)
• Peru
  • S&P/BVL Peru = 30,543.51 (YTD = 17.66%)

BUSINESS

Paraguay: The Hidden Gem of Latin America | Episode 1: A Country Ready for Business

We’re thrilled to release the first episode of our documentary series, Paraguay: The Hidden Gem of Latin America.

At Helmi, our mission is to unlock capital and resources for emerging economies like Paraguay. When we first visited this incredible country, we were captivated by its opportunities and potential. But we also faced the challenges: too often, Paraguay is misunderstood or overlooked.

That’s why we made this documentary—to show the world what Paraguay has to offer, to bridge that gap, and to help unlock its potential.

Here's why Paraguay is a hidden gem and why it’s open for business:

1. Economic Stability and Competitive Advantages

• Paraguay’s economy has grown faster than the regional average over the past two decades. In 2023, it led Latin America with 4.7% GDP growth.
  • Stable Inflation and Currency: With inflation averaging just 4% over the last decade, Paraguay's guaraní stands out in a region known for volatile currencies.
  • Pro-Business Tax Regime: The simple 10-10-10 tax structure (10% corporate, income, and VAT) makes Paraguay one of the most competitive destinations for investment in the region. For large investments, taxes can be reduced to as low as 1%.

2. Renewable Energy and Green Economy

• Paraguay is generating 100% of its electricity from renewable hydropower. The Itaipu Dam, the third-largest hydroelectric facility globally, positions Paraguay as the largest electricity exporter in Latin America.
  • Green Energy Potential: The country's abundant renewable energy is not only a cornerstone of its economy but also an opportunity for industries seeking sustainable operations.
  • Future Outlook: Government initiatives aim to harness this green energy surplus, promoting digital industries and positioning Paraguay as a global leader in sustainable development.

3.  Potential in Key Sectors

• Agriculture: Employing 20% of the workforce and contributing 10% to GDP, Paraguay is a leading producer of, for instance, soybeans. Favorable climate conditions and fertile land support year-round productivity.
• Forestry: With 40% of its land covered in forests, Paraguay is an emerging player in sustainable forestry. Innovative practices, like combining reforestation with cattle farming (i.e., silvopastoral systems), provide economic, environmental, and social benefits.
• Manufacturing: Supported by low costs and abundant green energy, Paraguay’s industrial sector has grown over fivefold in 20 years. Key industries include food, textiles, and wood products, with potential for expansion into higher-value manufacturing.

Fundraising picks of the week

VREIX: VREIX is a mobile ERP designed for construction companies, addressing industry challenges such as poor control, inefficiency, and outdated information. The platform enables users to record and report data quickly directly from the construction site. Dive deeper into the case here.

Rentennials: Rentennials is a peer-to-peer carsharing platform that connects local vehicle owners with renters. The platform has over 600 cars available for rental and has facilitated more than 2,600 rentals across six countries. Rentennials achieved a 5x increase in revenue over the last year. Dive deeper into the case here.

Adelántalo: Adelántalo is revolutionizing the logistics industry in LatAm by providing immediate financial liquidity to underserved truckers. Their innovative platform offers same-day payments and embedded factoring, ensuring truckers get paid after unloading. 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

Brazil: Brazil’s development bank BNDES signed a $2.89 billion deal with the Asian Infrastructure Investment Bank (AIIB) during the G20 summit. The partnership will fund projects aligned with Brazil's climate fund and policies to boost growth, focusing on transport infrastructure, energy connectivity, and sanitation. BNDES aims to enhance economic ties with Asia and attract private capital for sustainable infrastructure development.

Costa Rica: Costa Rica joined New Zealand, Switzerland, and Iceland in signing the Agreement on Climate Change, Trade, and Sustainability (ACCTS) to eliminate tariffs on hundreds of sustainable goods and services. The agreement, finalized at the APEC summit, promotes exports of products like insulation materials, recycled paper, and LED lamps, supporting Costa Rica's export sector and sustainable trade initiatives.

El Salvador: Bitcoin surged past $90,000 following Donald Trump’s U.S. election victory, fueling optimism among crypto investors at El Salvador’s Adopting Bitcoin conference. President Nayib Bukele’s decision to make Bitcoin legal tender three years ago continues to draw global attention, despite domestic challenges and IMF criticism. Investors view Trump’s stance as a boost for broader Bitcoin adoption and deregulation.

FURTHER READING

🔍 📰 Helmi in news this week:

La Nacion: Destacan a Paraguay como la joya escondida de América Latina

Ultima Hora: Documental finlandés explora potencial de Paraguay para inversiones

HOY: Paraguay es la joya escondida de Latinoamérica, destaca documental

The Asuncion Times: Paraguay: Latin America’s Hidden Gem

IP Agencia: Documentary highlights Paraguay’s economic and energy potential.