Argentina, with a population of 45,4 million people, a highly-educated workforce and vast resources across its more than 3, 76million km2 is a country with a remarkable potential when it comes to doing business.
Abundance of natural resources, unbeatable conditions for the development of clean energies, a highly diversified industrial base, competitive costs and a highly educated labor force are key factors that make of Argentina an extraordinary place to invest in. Argentina has a much diversified economy but, we are going to focus on a range of eight key sectors: ICT, energy, oil & gas, mining, agribusiness, beef and livestock, aquaculture and tourism.
This has been one of the most vibrant and fast-growing sectors in the Argentine economy during the last decades. Only in the last ten years, six unicorn tech startups have emerged in Argentina. In early May, the giant Google announced plans for expanding its facilities in Buenos Aires for the opening of an engineering and services center aimed at optimizing the Google cloud service in South America. This initiative not only shows Google’s trust in Argentina, but also its determination to increase its presence in the country thanks to its highly-qualified human resources ready to provide high tech services at a global level and at an affordable cost. In the last decades, Buenos Aires has become an important pole of development for the ICT sector thanks to its excellent universities and to the creativity and talent of its people.
Argentina has an ambitious plan to integrate renewable sources and foresees its share of renewable energies rising from 8% by the end of 2017 to 20% by 2025. This sector offers interesting investment opportunities considering Argentina’s potential for the generation of clean energies. Renovar 2, Private Market, Miniren (auction for smaller projects –10 megawatts capacity) and PPP Transmission are some of the projects. Bariloche, a beautiful Patagonian city placed on theshores of one of Argentina’s most picturesque lakes, Nahuel Huapi, hosts INVAP, an Argentine first-rate technological center dedicated to several major areas: nuclear, space, defense and security, as well as environment and medical systems. Also in Bariloche we find the Balseiro Institute, a free public institution considered the best experimental physics and nuclear engineering study center of Latin America, as well as a very prestigious one worldwide. Argentina has achieved a remarkable level of development of its nuclear sector for peaceful purposes. Since Poland is working on its energy matrix, INVAP might well offer a reliable and experienced partnership at every stage of this transformation, including studies for plant siting. Recently, in the Netherlands, INVAP has won a tender for the provision of a nuclear reactor for research and production of radioisotopes for medical use.Likewise, INVAP has an extensive experience in space activities including the production of satellites for scientific applications and communications, consulting services and other related services.
Oil & gas
Argentina hosts significant untapped mineral and energy resources, particularly in the Andes region. Being the largest gas producer and having the fourth-largest oil reserves in South America, Argentina is one of the main regional players in this sector accounting for a production of 2.4 billion barrels.Furthermore, the world’s fourth-largest shale oil and the second-largest shale gas deposits are also placed in Argentina.
Given the remarkable of Argentina’s mineral resources -particularly in the Andes region-mining is another sector that offers very attractive investment opportunities. Furthermore, the Government support to these activities is visible when considering that Argentina has been globally ranked 1st when it comes to budget-allocation to lithium exploration and 10th when it comes to mining exploration. In the northernmost province of the country, Jujuy, is located the lithium triangle. Argentina has the third largest lithium reserve in the world. Its estimated production might well account for more than 200 thousand tons next year. Australian, American and Chinese companies operate in this region.The country is also positioned in the second place of the world top 30 gold mines. Copper and silver deposits complete the mining map of Argentina.
With 53% of its territory being apt to agriculture, Argentina has developed an export-oriented agricultural sector. The central and northeast areas of the country, known as the Pampa and the MesopotamiaRegions respectively, arethe heart of the agricultural-livestocksector. The production of cereal, oil grains and seeds, sugarcane, fruit, wine, tea, tobacco and cotton are to be highlighted, making of Argentina one of the major food-producers and food-exporters of the world.
Beef and livestock
Even though anything but salt is needed for seasoning it, the Argentinebeef has earned a worldwide reputation thanks to its flavor,tenderness and high quality. The explanation lies on the grass-feedingprocessand the mildclimatein which the animals are bred.Argentina iscurrently the 5th beefglobalexporter and its production stands for a natural, healthy and high quality origin. In a world whose populationgrows at exponential levels, Argentina being one of the largest food producers offers investment opportunities for billions of dollars.
Alarge continental shelf and an extensive marine coast over the South Atlantic Ocean, with plenty of fishing resources easily accessible makes of Argentina a great destination for investing in projects related to aquaculture.Wideareas are certified as disease and antibiotics freezone. Argentina has what it takes for the creation and developmentof salmonids and mussels aquafeeds on a large scale.
Breathtakinglandscapes, a huge range of tourist attractions and 11 UNESCO World Heritage sitesmakes of Argentina an obliged destination for thousands of tourists from all over the world. While Argentina is the top tourist destination in the region, its capital city,Buenos Aires, has also been chosen as the first city destination during the last eleven years.
SETTING UP A BUSINESS IN ARGENTINA
Argentina and Poland share strong bonds thanks to a history of immigration. Thousands of Argentines proudly recognize their Polish rootsand many of them do their best to find ways to trade with their ancestral homeland. The Embassy of Argentina in Poland is ready to help you start your own business and to provide with the information you may need. A foreign investment in Argentina can be done in different ways, being the most common the Corporation (SociedadAn nima , the Limited Liability Company (Sociedad de Responsabilidad Limitada) and the Branch (Sucursal). There are also other forms of investment entities and business participation such as Partnerships (Sociedades Colectivas), Joint Ventures (Uniones Transitorias), Cooperating Groups (“Asociaciones Colaborativas , cooperating consortium agreement (onsorcios de cooperaci n and Trusts (Fideicomisos). In this regard, the Polish-Argentine hamber of ommerce’s advice is of paramount importance when the investor must decide which business model to choose. Its president, Mr. Wachowicz, works with enthusiasm and diligence offering advice and support to those willing to do business between our two countries.
At this point, it is also worth mentioning InvestArgentina, a website dedicated to private investment projects in a wide range of productive sectors throughout the countryand a reliable network wherepotential investors can findopportunities according to different searchcriteria in an easy way. Finally, ExportArgentina is yet another useful onlinetool aimed atopening upthe accessto relevant information to those willing to explore business opportunities between Argentine exporters and international companies, connecting importers from all overthe world with local productsand services.
Argentina offers thousands of opportunities and is willing to do business with the world. Do notmiss the chance to explore this market full of potential and much to be done.
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