Investment opportunities in South America

Investment Opportunities in Lucrative South America

Book 1

Š 2016 Tenlavi All rights reserved.

All rights reserved. No part of this publication may be reproduced, distributed or transmitted in any form or by any means, including photocopying, recording or other electronic or mechanical methods, without prior written permission of the publisher, except in the case of brief quotations embodied in critical reviews and certain other noncommercial uses permitted by copyright law.

The use of trademarks is not an official consent by the trademark owner for the reuse of the eBook or brand. All trademarks and brands in this book are for clarifying purposes only and are owned by respective owners

TABLE OF CONTENTS INTRODUCTION CHAPTER 1: Investment in Chile CHAPTER 2: Investment Opportunities in Panama CHAPTER 3: Investment Opportunities in Brazil CHAPTER 4: Investment in Colombia CHAPTER 5: Investment in Uruguay CHAPTER 6: Investments in Argentina SUMMARY

Introduction South America is gifted with natural resources, yet very few investors are aware of the existence of such resources. This is why this book takes a critical look at some of the countries in this region, which are rich with natural and manmade resources; and the factors that any prudent investor needs to consider before talking that leap.

This book critically looks at six South American countries that have attracted international investors and still present opportunities for entrepreneurs willing to take huge risks for bigger returns.

I hope that you will find what you are looking for in this little bundle.

Chapter 1: Chile 1.0 Investment in Chile Chile is loated in the south east of South America. It has an area of about 12,290 km² of water and 743,812 km² of land. It covers a total area of 156,102 km², which makes it the 38th largest nation in the world. In early 2016, Chile had a population of over 17.5 million people. It borders Peru, Bolivia, and Argentina. Chile’s capital city is Santiago. Other important cities include San Bernardo, Antofagasta, Valparaiso, Puente Alto, Vilna del Mar, Temuco, and Talcahuano among others. The country is a signatory of Antarctic Treaty and is the only country in the south with a vast mainland.

1.1 Currency The country’s currency is Chilean peso (CLP$), and it traded at 663.7 CLP per USD, on 15 April, 2016 1.2. Trading Bloc Chile together with Colombia, Mexico, and Peru are members of the Pacific Alliance.

The Alliance’s objective is to reduce tariffs on goods traded by the member states.

The four countries share the Pacific Ocean meaning that they are easily accessible and have thriving trade between them. The goal of the trading bloc is to reduce tariffs and allow firms, individuals, and governments to trade easily with one another. It focuses on boosting economies of the members, expanding the market, and giving access to a variety of goods from member states. This is what has made Chile grow and increase her volume of trade to other member countries.

1.3. Taxation Chile’s tax system is liberal; just a minimal amount is levied on expats who work or reside in the country. However, the retirees enjoy massive tax breaks. Among the taxes paid by the expats include income tax, import duties, and value added tax. It should be noted that Chile does not levy income tax on pension, social securities, and retirement benefits. Even though, foreigners who are duly registered and who have received a RUT number are taxed, the tax rate is lower compared to their counterparts in other countries.

Chile is ranked 42nd in terms of the largest export economy in the world. It is also considered as the most complex economy in the word according to the ECI (Economic Complexity Index). For instance in 20 13, the country exported $79.4 billion and imported goods worth $77 billion. The top export products include refined copper, raw copper, copper ore, fish fillet, sulphate and chemical wood pulp.

It imports petroleum products, cars, planes, delivery trucks, and spacecraft. China, the US, South Korea, Japan and Brazil remains Chile’s top export destinations.

1.4. Infrastructure The growth of Chile’s economy is anchored on the massive investment in the road infrastructure and power plants projects. Also, the country is taking advantage of the

weak oil prices and is heavily investing in infrastructure. Already, a new infrastructure fund is awaiting approval and will pave the way for the creation of the concessions agency to support Chile’s construction industry. The fund is an incentive meant to spur economic growth and create thousands of jobs.

The on-going road infrastructure development and the renewable energy projects have opened Chile to foreign investors and have reduced the cost of doing business in the country by a great margin. The country has witnessed a strong growth in the solar, biomass, marine and wind power generation, a thing that has brought the cost of energy to its lowest.

Also, the Chilean President has already presented a national infrastructure plan that includes a concession plan worth US $9.9 billion which is expected to run up to 2020 and an additional US$ 18 billion that will run until 2021. The concessions target airports, highways and reservoirs. The 2014-2020 concession will expand the Arturo Merinoo Benitez International Airport at a cost of US$6555 million, Costanera Central highway and part of the Americo Vespucio Oriento urban highway to US$1.98 billion. All these facilities are located in Santiago.

1.5. Legal Framework Already, President Bachelet has promulgated a new framework law that targets to increase foreign investment in Chile. The law requires the establishment of a committee of ministers who will advise the president on matters of foreign investment. The law targets productivity, growth, and innovation. Its objective is to help Chile attract projects from investors. They target projects associated with increased productivity, innovation, diversification and added value.

The institutional framework aims at implementing a state policy to help attract foreign capital investment. There is a law that guarantees full access to the foreign exchange market and allows free remittance of capital earnings. Also, it guarantees the right to freedom from discrimination. In addition, it aims at exempting investors from tax imports on capital goods as well as freeing them from tax on the sale of certain goods that comply with specific requirements.

Even though most parts of Latin America are still susceptible to corruption and dictatorship, Chile is one of the four countries that are exempted from both dictatorship and corruption. This is why it is rated high among the Latin America countries that continue to attract foreign investment. In fact, Chile is one of the success stories of Latin American countries that have actively courted foreign investment for many decades. The Decree law 600 subjects all non-residents to the same regulations that apply to native investors. For instance, Chile’s corporate tax rate is considered the lowest in the region at only 20 %. In America, the corporate tax rate is as high as 35 %. Similarly, the 2004 trade agreement between various countries has set Chilean tariffs at the modest 6%. This has made the Chilean market the most competitive in South America.

As a country, Chile has numerous areas that are suitable and which have continued to attract foreign investment. Buying property in the south of Santiago for

investment or as a place you can call a home is continuing to attract both local and foreign investors. The central coastline is popular with tourists and has also continued to attract investors interested in tapping into the rich tourist sector.

1.6. Climatic Condition The Mediterranean climate and the higher rental yields in Santiago make the capital appealing not only to the local investors but foreigners as well. The unemployment rate in Santiago has hit its lowest level in a period of 15 years. This implies that crime rate has drastically reduced. Also, the population of Chile is fairly educated and gives investors a wide range of educated labour force to choose from.

The majority of Chile’s population live the central part of the country, and the climate is temperate and humid. It is suitable for grain cultivation. It is worth noting that Chile’s economy is based on agricultural production, nitrate, copper and iron mining as well as the exploitation of the sea resources. However, the country does not entirely depend on mining and agriculture as it is in the neighbouring states. She has a well-developed manufacturing sector which has made her one of the most urbanized country in Latin America. Since she joined Pacific Alliance, the manufacturing sector has continued to expand courtesy to many people in the bloc who rely on the goods and services produced by her manufacturing sector. The fact that the country is run by a democratically elected government and is free from coups has helped to create a good business environment for both foreign and local investors.

1.7. Opening a Bank Account If you are a non-Chilean, and you are interested in opening a bank account, all you need is to get a trusted Chilean attorney to help you carry out the transaction.

Alternatively, you can do so by approaching any of the stock brokers in Santiago who will help you open an account. If you have established yourself as a temporary resident, all you need to do is to establish a relationship with a bank and apply for a bank account called Cuenta Vista. The account puts a limit on the amount of money you can deposit. Ideally, one is restricted to a maximum US$ 10,000 threshold but is free to use the account to pay bills and wire money within Chile. Once you become a permanent resident, opening an account becomes easy, and you’ll be allowed to open a brokerage account that pays an attractive interest rate. Also, you become eligible for local financing as well.

1.8. Tourism In Chile, its tourism and hospitality industry is rated high among the Latin American countries. There are a lot of tourists who visit Santiago every year. The country has a pool of well-trained Chileans who work in the hospitality industry and serve as chefs, receptionists, and translators. Naturally, the country attracts tourists from across the globe. Chile is referred to as the longest country in the world. It is 4,270 km long and 177km wide. It has the world’s driest desert and boasts of other spectacular scenery

fjords and glaciers, as well volcanoes that have continued to attract thousands of tourists every year.

1.9. The risks Political risks The country has a solid financial market while its political risk is considered the least in the region. The independence of judiciary and government is evident, as recently as this year (2016) when the Constitutional Court rejected parts of the labour reform as unconstitutional. This was despite the fact that the Chilean Senate had passed the reform.

Currency risk Inflation is just above the 3% target. The Chilean peso traded at 663.7 CLP per USD, on 15 April, 2016; the strongest value since May 2015. The weakening of the USD has led to the recent appreciation of the Chilean peso. Moreover, the peso was partly supported by a moderate rise in prices for copper, which is Chile’s top export.

Liquidity risks Despite the persistent external deficit, the strong macroeconomic environment in Chile is a great offset for liquidity risk thus making Chile a haven for investors.

Institutional risks Chile has a well-developed institutional framework. It has good accounting standards, robust regulatory oversight and clams down hard on insider trading. However, its small and open economy makes it vulnerable to external shocks. Despite this, there are many international companies operating in distribution, air transport, and paper.

1.10. Conclusion As a country, Chile is rated top among the South American countries, it is hospitable, politically stable and avails numerous investment opportunities for the locals and foreign investors. The country has invested heavily in the infrastructure and has the most advanced financial sector in the region. As an investor, you will never go wrong if you make Chile your country of choice for investment.

Chapter 2: Panama 2.0. Investment Opportunities in Panama Panama is one of the countries in South America with the fastest growing economy.

It boarders Colombia, Costa Rica and the Caribbean Sea to the north as well as the Pacific Ocean to the south. Its capital is called Panama City. The country has a population of 3.9 million people half of whom reside in Panama City.

One of t major source of revenue for the country is the Panama Canal; However other sectors such as banking, tourism and commerce are growing and have become a major source of income as well.

Panama uses a presidential representative system where the president is the head of state and the head of the government. It runs a multi-party system with the executive power exercised by the president. The legislative power is vested in both the government and the national assembly. Panama’s judiciary is independent of the legislative and executive.

2.1. Currency The country’s currency is Panamanian balboa (B/.), and it traded at (B/.) 0.90 per USD, on 15 April, 2016 2.2. Infrastructure The country has a well-developed infrastructure that can attract investment and induce growth. It has a total 11,258 kilometres of roads, of which 3,783 kilometres are paved. There are plans to construct two major highways. The rail network covers about 355 kilometres. The Panama government is in the process of privatizing the national railway line to strategic investors. The country has about 105 airports out of which 41 have paved runaway. Panama has a stretch of 130 kilometres of crude oil pipelines and 800 kilometres of navigable waterways. The shipping terminal in Manzanillo is so far the largest, but a Hong Kong company has initiated a $150 million port project that intends to develop a port facility on the Pacific side of Panama.

2.3. Investment Opportunities There are hundreds of foreigners who reside in Panama and who have started numerous businesses. In addition, the country offers many opportunities for both local and foreign business entrepreneurs. Areas that can be targeted by low end tier businessmen include restaurants, bar, retail shops and hotels. Also, there are many opportunities open to providing professional services such as tour services.

The law provides for three forms of businesses in Panama. They include corporation, partnership, and sole proprietorship Panama offers numerous investment opportunities to both locals and foreigners.

Panama is an ideal destination for anyone looking for a country that promises a high return on the capital invested. Investors looking for a country that gives financial

privacy and does not tax income have Panama as one of the countries to consider.

The country is close to the fast growing Latin America market and makes it a natural base for business operations in the region.

The high end tier investors have the lucrative real estate market to consider. They can invest in timber and agricultural land transactions. Panama is a fast growing country that boasts of a dynamic economy with incentives that attract foreign investment.

Tourism Investors interested in real estates can choose to invest in burgeoning condos, or choose to invest in beachfront properties. Other sectors that ideal for investment include the tourism and the service sectors whose future looks bright following increased activities in the tourism industry.

The service and tourism business are also attracting a multitude of middle tier investors. One can invest in restaurants and tour guide services. The numbers of cruise ships that dock Panamas ports have continued to increase. This has also increased the number of activities at the ports and is a huge boom to businesses interested in investing in the service sector. The capital outlay in this sector ranges from $50,000 - $100,000 Residential There is a plan to build residential project with high-end hotels and residential of any kind including shopping malls, golf courses and much more. The projects plan to offer low-end tier investors with space that will allow them to invest between $10,000- $50,000 in retail outlets.

Real estate Real estate prices have continued to accelerate in the last two years with houses costing about $200,000 - $500,000. This is cheap compared to buying property in other places. Investing in such a property guarantees one a steady income and those planning to resale the property will only have a few years of waiting before they can recoup their investment.

Other than the real estate and the tourism sector, investors have opportunities in the agriculture sector. Crops such as rice, coffee, corn, bananas, sugarcane, livestock, vegetable shrimp and livestock do well in most parts of the arable lands. Agriculture contributes about 17% of Panamas GDP and thus anyone with a passion in this sector has many options to choose from.

Manufacturing The manufacturing industry is also growing steadily. Sugar millings, cement production, brewing are some of the areas that have continued to attract investors due to the high returns expected. Other resources that can be exploited include gold, iron and steel waste. Products such as medicine, steel rods, and cellular phones have

huge demand, so investors who can put their money in this sector are guaranteed great returns.

2.4. Natural resources Panama is gifted with plenty of Natural resources. It has vast forests of mahogany, plenty of copper, shrimp and hydropower.

There are numerous opportunities that can be considered by investors. The most lucrative ones include the real estate and the tourism industry. Investment in the beach areas offers some opportunities as well. Note that Panama has dual coasts – the Caribbean and the Pacific, which means that there are a lot of real estate investment opportunities on the coast. The coast is hardly touched, yet it has continued to attract tourists in the recent years. About 75 % of the coast is underdeveloped, and there are miles of pristine beaches. Available also are numerous investment opportunities in the tourism industry while other investors can consider investing in the business executive group.

One of the reasons that have accelerated growth in the tourism sector is the economic incentives that have been given by the government. The reduced government tax and the price discounts for retirees have increased activities in this sector. The fact that the country has been rated the world’s best place for retirement has also increased its attractiveness to potential investors.

2.5. Regulations and Incentives Panama enacted a law, # 80 in 2012 which has the objective to promote foreign investment in tourism. This law replaced the 1994 law 8. The law exempts investors from income tax as well as real estate tax for 15 years. Also, the investors are allowed to import duty free materials and equipment for five years. They are also exempted from capital gain tax for five years.

2.6 Taxation As a country, Panama has a history of being a tax haven. The country passed laws in 1927 which exempted corporations from paying taxes. It adopted the standard tax haven model which exempted international investors and businesses from enforcing taxes. The country enforces strict banking laws and has adopted competitive incorporation laws.

2.7. Trade Agreements Panama has expressed interest in joining the Pacific Alliance that brings together four countries namely Colombia, Chile, Mexico, and Peru. Already, she has signed deals with Colombia, Chile, and Peru. It has also signed free trade deal agreements with Mexico and recently joined the Pacific Ocean Alliance.

2.8. Business Ideas

1. The establishment of cafes with Wi-Fi is one of the areas that promise a lot to investors given the number of portable jobs and businesses that are emerging.

The few cafes available are always full of people.

2. Panama has many chocolate lovers, thus, if you do not have a lot of money to invest, you can consider starting an international chocolate shop.

3. Dealers of leather products are not many, and there is no specialty leather shop in the country. You can combine this with other businesses such as importing high-end products and custom beach wear therefore benefitting from the ever increasing number of tourists.

4. If you love art, you will not be disappointed. The art community has continued to increase in the recent years. Many galleries have popped up in many towns, therefore, starting high-end specialty shops, tattoo & piercing shops, old-style record shop and jewelry stores are some of the options investors have.

5. If you are just about to retire, and you are looking for a business that will allow you to lead a slower paced life, there are plenty of hotel inn opportunities in Panama as well.

2.9. The risks Political risks Panama is a stable, multi-party, democratic state. With improved political transparency, Panama is an emerging country to invest in. The Panama government supports trade and open markets and therefore is investor friendly. The government is committed to a constitutional reform process that would ensure a greater separation of powers among the branches of government. Panama's outlook is looking brighter with its stable political environment and a strong and diversified economy.

Currency risk The country uses the US dollars thus, removes currency risks from any investment made. Even though there are other hazards that the investor may face including transactions taking long, identifying a trusted local consultant and counsel, there are experienced U.S counsels accustomed to cross border transactions. These professionals can help bridge the gap between the foreign legal, business principles and the US. Further, Panama is a financially stable country.

Liquidity risks The nine banks in Panama are compliant with the Panamanian liquidity requirements. Liquidity holdings are ample since banks need to self-insure against funding risks in the absence of a lender of last resort.

Institutional risks Institutional frameworks are somewhat underdeveloped. The progress has been small, but the new government is promising to come down heavy on corruption.

Panama is a regional banking and financial centre with Colón free-trade zone, and the world’s 2nd-largest import-export platform 2.10. Conclusion Panama’s infrastructure and its convenient location are the main reasons why the country is attracting many U.S investors. Many multinational corporations are also pitching tents in Panama because of its high-end business sector. There are many multinational banks and law offices that have set up operations in Panama. Looking at these activities, it is obvious that the country is on its way to becoming one of the fastest growing economies in the world.

Chapter 3: Brazil 3.0. Investment Opportunities in Brazil Brazil is the largest country in both South and Latin American regions. In the world, it is among the world largest country in terms of population and size. It is also the largest Portuguese speaking country in the world. The country has a coastline of about 7, 491 kilometres and boarders other South American countries apart from Chile and Ecuador. It covers 47.3 % of the South American continent. Its Amazon River basin is vast and is a home to tropical forests, natural resources, diverse wildlife and a diversified ecological system. Its environment is unique and makes Brazil one of the 17 countries that have a mega diverse environment.

As a country, Brazil boarders the following countries Argentina, Uruguay, Bolivia, Paraguay, Peru, Venezuela, Guyana, and Colombia. It has numerous natural resources, climate, and relief. The country is also geographically diversified. It covers an area of about 8,515767. 049 km ², this includes 55,455 km² of water. The topography is diverse and includes hills, highlands, plains, mountains and scrublands. It has a complex system of rivers and eight drainage basins that drain in the Atlantic. The main rivers include Amazon River; the world largest (in terms of volume) and second longest river in the world. Most parts of the country make up the Amazon rain forest considered to be the richest and the world’s most diverse rainforest.

3.1 Currency The country’s currency is Brazilian Real (BRL$), and it traded at 3.4358 BRL per USD, on 15 May, 2016 3.2. Demographic At the beginning of 2016, the Brazilian population was 209,567,920. This is an annual increase of 0.83 % with the majority of the population being concentrated in the South-east and hosts approximately 80 Million while the North-east is inhabited by over 53.5 million.

3.3. Politics and Governance Brazil is a democratic federative republic that uses a presidential system where the president is the leader of government and head of state. The president is elected for a four year term and can choose to be re-elected for the second successive term.

3.4. The Infrastructure Roads The main form of transportation in both urban and rural Brazil is still roads. Its highway system is considered the largest in the world but has always been considered inadequate because of the increasing number of motorists in the country. Because of

this, most of the roads are undergoing a major expansion and revamp. About 1.2 billion people are believed to travel on Brazil highways every year.

The hosting of the FIFA World Cup by Brazil in 2014 contributed greatly to the revamping of the road network. Also, the forthcoming 2016 Olympic Games are considered part of the motivation that has led to massive development and expansion of the road network that links the industrial sector with the less developed parts of Brazil.

Rail The use of railway in Brazil began in 1800’s. There are about four rail gauges across the country which is under the control of both the public and private operators.

Air The air transport infrastructure in Brazil is advanced and well developed. The country has approximately 300 airports out of which 50 are considered the major commercial ports. 21 of them are international airports. On average, over 115 million passengers fly in and out of Brazil every year.

Power Hydroelectric plants generate 90 % of Brazil's power. The plants produce power through harnessing the gravitational force of flowing water. It also produces power from fossil fuels and nuclear. Unfortunately, only those companies owned by the state are allowed to produce power. It should be noted that the power supply in Brazil is relatively stable and therefore ideal for companies that rely on electrical energy.

Telecommunications Brazil has a well-developed and efficient telecommunication service. There are the mobile and the landline services, the radio and television broadcasting, and internet services. Currently over 45% of the Brazilian population have access to the internet.

The central and the north have fairly modern telecommunications infrastructures.

Waterways Brazil has approximately 50,000 kilometres of navigable waterways. It has about 15 seaports and harbours along its cost. Corumba is among the international waterways of the Paraguay River.

3.5. Economy Brazil has the largest economy in South America. As a country, Brazil has a mixed economy, which boasts of its abundant natural resources. The IMF and World Bank have predicted that in a few decades to come, the economy will become the fifth largest in the world. The country is the world’s fourth largest car market in the world.

In addition, it exports products such as aircraft, automobiles, electrical equipment,

footwear, textiles, steel, iron ore, orange juices, coffee, soybeans, corned beef, rice, sugar and other agricultural products. It is ranked 23rd in the world in terms of the value of her exports and the third largest exporter in the world.

As a country, Brazil has a diversified economy and relies on agriculture, industry and offer a wide range of services. The agriculture and the allied sector including forestry, fishing, and logging account for over 5.1% of her gross domestic product. She is the world largest producer of coffee, oranges, cassava, sugar cane, soybeans, and papayas.

The industry sector produces steel, automobiles, aircraft, computers and other consumer durables. Most of the industrial activities are concentrated in Sao Paulo, Belo Horizonte Capinas Porto Alegre, and Rio De Janeiro.

When it comes to energy consumption, she is the world tenth largest consumer of energy from renewable resources such as ethanol and hydroelectricity.

3.6. Investment Opportunities Brazil’s stock market dropped down to about 25% in 2011. The depreciation of her currency against the US dollar makes buying assets in Brazil cheaper. Also, the fact that Brazil’s economy is diversified gives the foreign investors a wide range of options.

According to Fortune magazine, the weakening Real gives anyone who earns pounds, euros or USD a golden opportunity to invest in Brazil. Investing in the stock market gives the investors more shares than they would have done in 2011. Also, many assets can be bought at low prices.

The middle-end investors have a great opportunity in investing in coffee since Brazil is open to the export market.

The high-end investors have unlimited opportunities in buying and lending currency.

The weakening of the Real has given banks and those who can invest in financial institutions a chance to invest and lend out money at elevated prices.

Also, Brazil’s diverse market offers a savvy investor a wide investment option to choose from.

3.7. Trading Bloc Membership Brazil is a major economic force in Latin America. To bolster its position, it is a member to various trading blocks in the region. It belongs to the following trading blocks.

Aladi It stands for Latinoamericana de integration which is the Spanish version for Latin America Integration Association. This trading bloc was created in 1980 and has 13 members. The member states include Bolivia, Argentina, Brazil, Colombia, Chile, Ecuador, Cuba, Nicaragua, Mexico, Panama, Paraguay, Uruguay, Peru, and Venezuela. Aladi aims at creating a common market using different mechanisms

such as Regional Tariff Preference, which grants numerous trade tariffs to her members.

Mercosur It stands for Mercado Comun del Sur i.e. a Southern Common Market. This is the most successful trading bloc that Brazil participates in. It was formed by Argentina, Paraguay, Uruguay and Brazil in 1991. Its objective is to promote the integration of the members by allowing free circulation of goods and services. It also seeks to amplify trade between member countries and countries located outside the bloc.

3.8. Investing in Real Estate Brazil has a lot of real estate property on offer. There is virtually everything ranging from beachfront resorts to metropolitan flats. The low-end investor has the farmland in the rural area with numerous investment opportunities. Thousands of foreigners looking for cheap real estate investment opportunities can invest in the vast real estates in the North- East Brazil. Note that those who have bought and developed their own property have benefited most compared to the investor who bought from international realtors. The area is densely populated hence the sudden appreciation of real estate in the last ten years. Note that buying property in the urban areas of Brazil is secure since the country has a well-organized property registration system and an advanced real estate market.

3.9. Natural Resources As a country, Brazil is blessed with diverse natural resources. It has Bauxite, iron ore, gold, and manganese deposits. Brazil also has huge deposits of nickel, platinum, phosphates, rare earth element and uranium. Available also is plenty of hydropower and petroleum that power the manufacturing sector. It also boasts of huge tracts of forests that guarantee timber for export as well as for domestic use.

3.10. The Tourism Sector Brazil has a beautiful landscape and the vast Amazon rain forest, beautiful beaches and a wide range of wild animals. It owns beautiful tropical beaches most of which are untouched and provide profitable high end investment opportunities. Brazil has numerous historical cities that boast of breath-taking waterfalls and incredible night life. The North eastern part is a loved holiday destination for the millions of Brazilians and foreigners. In 2015, about 6 million tourists visited Brazil, and the number is expected to soar up as we approach the 2016 Olympics.

3.11. The risks Political risks Even though there are many corruption allegations, there is an effective political and democratic system in place and functioning properly

Currency risk Brazil is vulnerable to global commodity demand and prices, but this is balanced with its moderate external debt. In January 2016, Brazil’s Central Bank started to offer programmes to hedge currency risk to assist Brazilian companies to cope with the volatile market. Accordingly, currency risk in Brazil is minimal because it’s resistant to external shocks and has considerable reserves.

Liquidity risks One of the main strengths of Brazil is its solid financial system. The liquidity levels of the Brazilian banks are looking good. The weak economic conditions have decelerated several years of growth in high loans which have increased the liquidity of many banks.

Institutional risks Brazil also has a big institutional investor base and many things that appeal to international investors when they are deciding where to allocate their capital – the first of which is sheer size. It has entrepreneurial and capable financial intermediaries, banks and a strong and vigilant regulator.

Chapter 4: Colombia 4.0. Investment in Colombia Colombia borders Panama to the northwest, Brazil and Venezuela on the east. On the southwest, Colombia boarders Ecuador and Peru. The Andean ranges run through the western part of the country, and half of the eastern part of the Colombia is a jungle-covered plain drained by the Orinoco Rivers. The tropical Indian tribes inhabit it. The eastern range valley and the fertile plateau is the most densely populated part of the country.

As a country, Colombia covers a total area of 1,138,910 km2. The land occupies 1,038,700 km2 while water covers 100,210 km2. Colombia is located in the northwestern part of Latin America. The coastline stretches for about 3,208 km: 1,760Km on the Caribbean Sea while 1,448 km beside on the Pacific Ocean. The country enjoys tropical climate in the eastern plains and along the coast while the highlands enjoy a cooler climate.

The country has numerous natural resources ranging from natural gas, petroleum, coal, nickel, copper, iron ore, hydropower, and emeralds. Already 10,870 km2 of land is under irrigation.

The country experiences natural hazards such as volcanic eruption, long periods of drought and earthquakes.

4.1 Currency The country’s currency is Colombian peso (COL$), and it traded at COL$3089.0 per USD, on 15 April, 2016 4.2. Trading Blocs and Partner Colombia’s leading trading partner is the US. Almost 40 % of her exports go to the U.S., and this makes up 30 % of US imports. Other trading partners include Venezuela 7 % imports and 10 % exports, Ecuador, Mexico, Brazil, and Germany. So far the country is the largest US export market and the 31st largest source of U.S imports. The U.S imports crude oil, coal, precious, petroleum oils, coffee, flowers, tea and plants from Colombia.

Colombia like Mexico, Colombia, Peru, and Chile are members of the Pacific Alliance Trade block. The Alliance plans to strengthen ties with other trading blocs like Mercosur (Southern Common market). Members of the Pacific Alliance have also agreed to meet with representatives from Mercosur to look at the possibility of becoming partners as reported by the think tank of the US American Society-Council.

The Mercosur comprises of the following countries: Argentina, Brazil, Paraguay, and Venezuela The trading bloc was established in 1991 and has witnessed increased trading activities between the countries.

The Pacific Alliance is committed to promoting small businesses. It also has plans to collaborate with other organizations for the economic corporation and development meant to make small and medium enterprises grow to international levels and at the same time promote competitiveness. The member countries have agreed to have a working holiday in which young people from member countries will receive a yearlong visa that allows them to travel and work in partner countries. The Trading bloc is thought to be the tenth biggest trading bloc in the world. Trinidad & Tobago and Belgium are its new observer states.

Colombia’s economy was once controlled by the cocaine cartels but started declining in the past few years. Since 2009, it has been expanding at the rate of 4 %. This has seen the poverty level decline steadily. Since 2009, the poverty level among the Colombian population declined from 40 % to 30 %. The country is well endowed with natural resources, which gives it a head-start compared to other Latin American countries. However, Colombia still has a long way to go.

4.3. Natural resources As a country, Colombia boasts of the following natural resources: Petroleum Even though Colombia is not synonymous with oil, the country is so far the biggest oil producer in the entire Latin America behind Mexico and Venezuela. Receipts from oil account for more than 20 % of government revenue and constitutes 42% of her total exports. Unfortunately, the future of this resource is uncertain just as it is in the world top producers like Saudi Arabia and Kuwait. The prices of oil have continued to drop, and the revenue from the sector has continued to dwindle in the past few years. Even though, Colombia’s share of gas and oil reserves is considered the third largest after Venezuela and Argentina. Already, the government has initiated steps meant to help it tap into these reserves by granting rights to Exxon and Royal Dutch Shell.

Coal Colombia is the largest coal reserve in the Latin America. The country exports about $9 billion of coal annually. This is about 14 % of the country’s total exports. However, infrastructure upgrading especially the reconstruction of the railway line, on which it is transported, has slowed down the process of exporting the commodity.

Commodities Gold is one of the commodities Colombia relies on to prevent price shocks and stabilize its market. So far, Colombia is the 19th largest producer of the beautiful green emerald. Colombia produces 50– 90 % of the world’s emerald gold. The jewels can be used in making jewellery and are commonly found in museums.

Hydroelectric Energy The above discussed non-renewable resources constitute the majority of Colombia’s resources even though the country has a diversified economy. The country has plans to boost her non-traditional exports by over $30 million and has made serious investments in the renewable resources including hydroelectric resources which make up about 70 % of the country’s electricity.

The resource is quite underdeveloped, but the country is producing 93 GW, which is approximately seven times its demand.

4.4. Infrastructure Colombia has a highly developed transportation system both in the urban and rural area. The Pan-American route connects the northern part of the country to the rest and has thousands of roads and rivers that cover the public, commercial and private activities.

Railways Colombia has a rail network of about 3,034 kilometres, but only 1,960 rails are currently in use. The network remains underdeveloped, but about ten major cities are connected by railroad. In 2006, more than 2000 kilometres of the railroads were refurbished to link the Caribbean coast and Bogota. Also, over 499 kilometres of the Pacific coastal network that links Cali to the port of Buenaventura was refurbished.

The road network is also well developed. There are three main highways, the Caribbean, the central trunk Highway and the Eastern Highway. Colombia has an estimated road system of between 115,000 -145,000 kilometres, with 80% of which is paved.

Ports and Waterways Colombia has natural waterway systems connecting all parts of the country. This is despite the fact that armed rebel conflicts have made half of the waterways difficult to use because of the dangers associated with their illegal activities.

Aviation As a country, Colombia has a well-developed air route with an estimate of about 984 airports out of which only 100 of them have a paved runaway, two of which have heliports. Out of the 74 main airports, just about 20 of them can accommodate jet aircraft.

4.5. Education The literacy rate is about 93.2 over 100 ranking. Of all the youth only 37% of those aged between 17 and 21 is receiving higher education. The Andes University is the best ranked institution in Colombia, but it is not among the top 100 in the world. The level of her education is low compared to the world rate. In addition, the level of

education is not as good as the one offered in Europe and the U.S where the literacy rate is above 98.5%.

The re-establishment of the investor confidence in Colombia has led to an increase in the Foreign Direct Investment (FDI) inflow. The strong economic growth and the growing interest of foreign investors in Colombia have contributed to the increase in FDI. The oil sector has accounted for 30 % of all FDI. The FDI has benefited from the attractive legislative framework. Also, the fact that the country is ranked 54th out of 189 when classified as favourable countries in doing business due to the ease of accessing credit and registration has given the country a head-start.

The bilateral free trade agreement ratified between Colombia and the US has contributed greatly to improving the attractiveness of the country. The establishment of the special regulation trade zones has also made the country more attractive. In addition, the richness in its resources and its domestic market makes it ideal for high-end, medium-end as well as low-end investment 4.6 Reasons Why One Should Invest In Colombia First, Colombia is one of the few countries in Latin America that is economically stable. The government has been able to maintain its growth rate at 2.5%. In the recent past, the country has shown some recovery and foreign investment confidence has grown considerably. Foreign investment has so far reached 6,295 million. As a result, over 700 multinational companies have launched numerous investment programs in the country.

It has competent and qualified human resources, and its work force is the most competent among the South American countries. Its education system is considered the best in the region and boasts of literacy rate of 95%. Geographically, the country is situated on the most strategic point and can easily access different markets in the region. It has developed and modernised port facilities making it a hub that facilitates trade between European countries, Asia, and the U.S. The country has numerous development centres, well developed infrastructure, and modern communication infrastructure. Violence is the country’s weak point and increased attacks by the Revolutionary Armed Forces of Colombia. However, the country is working hard to contain the situation. It is also struggling to contain drug production and has taken drastic measures meant to motivate FDI. The government is actively involved in free trade agreements which followed a series of other investment agreements with the EU, which is all meant to develop a transparent economic environment that will contribute to massive capital growth in the near future.

4.7 The risks

Political risks Politically, the country is stable, and its democracy is considered the oldest among the South American countries. Colombia is also greatly benefiting from the implementation of democracy ideologies that aim at creating a favourable economic condition to give both the local and foreign investors some confidence.

Currency risk The decline in oil prices could fuel additional currency depreciation and inflation.

However, the fuitition of the peace process could further enhance business confidence and capital inflows.

Liquidity risks From December 2015, the Central Bank has been authorised to impose higher levels of capital and liquidity to financial institutions that show a higher risk profile, thus enhancing its ability to manage potential financial risks.

Institutional risks The Central Bank has transparent foreign currency intervention mechanisms that could prevent chaotic movements in the exchange rate and ease liquidity pressures.

Furthermore, the floating exchange rate will remain the first line of defense against fluctuation in global financial conditions.

Chapter 5: Uruguay 5.0. Investment in Uruguay One would find Uruguay on the east coast of South America. Uruguay boarders Brazil on the south, and Argentina on the east. It consists of the low plateau and low rolling plain in the south. The country has a 193 stretch on the Atlantic shoreline. It covers an area of 176,215 km2. Its longest river is called the Rio Negro The country is water–rich and has prominent water bodies that mark its boundaries on the south, east, and west. It has numerous lagoons and lakes with three systems of rivers that drain the land. It has a humid sub-tropical climate that is moderately uniform with a few season variations. Extreme temperatures are rare. Fog and humidity are common occurrences because there is so much water in the country.

As a country, Uruguay is densely populated and has well developed education system, communication, health, and industries. It is fairly industrialised with the northern part that borders Brazil being more developed than the other areas.

5.1 Taxation The country has three main political parties all of which support free trade and economic reform. It continues to be an offshore haven that guarantees little tax burden on any foreign resident. Any income and holdings coming to Uruguay from other countries are not taxed. In fact, the government does not require individuals to disclose these facts. Even though, the country has strong laws on tax as well as banking secrecy, whatever information is reported is not made public. Some of the common taxes include Vat popularly known as IVA (Spanish) which is 22% on most of the goods and 24 % on basic goods. Property tax ranges from 0.25% to 1.2% of the property’s market value. The school tax is only applicable in cities and ranges between 0.1% - 0.3 %. Personal Income tax is only paid on income generated within the country on any amount exceeding $8,656. This amount is taxed at a rate of 10%25%.

Individuals renting out property are required to pay a flat income tax of 12 % while any capital gain attracts a tax of 12 % for individuals, 25 % for Uruguayan corporation and 12% for foreign corporations.

5.2 Currency The country’s currency is Uruguay Peso (U$), and it traded at U$30.93 per USD, on 15 April, 2016 5.3. Infrastructure The country is located in a corridor that connects the Pacific Ocean and the Atlantic Ocean. It is the gateway to Paraguay Panama River. Uruguay must improve its

transportation infrastructure if it wants to take advantage of its superb geographical location. Such improvement would certainly reduce its freight cost.

The country boasts of 8,983 km of roads, most of which are paved. Uruguay also plans to build a passenger railway and an underground subway system to serve Montevideo and the neighbouring suburbs. The country has partnered with Argentina and is constructing a 35 km bridge to connect Buenos Aires Colonia, Argentina, and Uruguay. On completion, the bridge will be the longest in the world and will be expected to increase trade between Argentina and Uruguay. Uruguay has 2,073 km of railway and about 1,600 kilometres of navigable waterways. The waterways are used to transport goods within the country. The country has plans to partner with Argentina, Uruguay, Bolivia and Brazil to develop a 4,022 kilometre of Panama Uruguay River to facilitate transportation of goods to the Atlantic Ocean based port. The countries are also planning to construct dredging port estimated to cost about US 935million. Uruguay has some strategic ports that include Nueva Palmira, Fray Bentos, Paysandu, Piriapolis, Colonia and Punta Del Este. It has one merchant ship which is used to transport petroleum.

Airport Uruguay has about 65 airports, but only 15 of them have paved runways. The country is served by ten international airlines and one national carrier. Its main international airport is Montevideo. The airport has undergone a $60 million renovation that has significantly expanded its capacity, in the recent past. The country is also building a $40 million airport at the Punta Del Este town.

Telecommunication Already, there are 27 telephones for every 100 people, and there are plans to privatize the telecommunications so as to lower the cost of services offered by telecommunication and also expand and improve the quality of the services. By 1998, the country had 100,000 mobile phones and about five internet service providers.

5.4. Natural resources Uruguay does not have its own fossil fuel and relies on imported oil. It has a 19 kilometre stretch of pipeline that was constructed in 1998 which supply it with natural gas from Argentina. There is also another stretch of 213 kilometres pipe that is being constructed by BP, Amoco, and ANCAP. When completed, the pipeline will be expected to supply natural gas to over 70 towns in Uruguayan cities.

Uruguay has numerous power plants that produce over 9,474 billion kilowatt-hours of electricity. Over 95% of this power is water power energy (hydropower energy).

The land is the country’s greatest natural resource. The soil is naturally fertile, and the lush grass cover ensures that the soil is supplied with organic matters. It receives moderate and evenly distributed rainfall, and the lush grass prevents leaching;

therefore the nutrients are not washed away. Hydroelectric power is important to the economy of Uruguay. It is generated by Salto Grande situated on the Uruguay River. The other plants in operation include the Rio Negro and another one constructed on the Brazilian border. The generation and supply of the power are under the control of the government.

5.5. Investment opportunities Uruguay boasts of a favourable business climate. It is politically stable, has an ideal business climate and offers great tax incentives to the investors. Uruguay follows a consolidated democratic system that is committed to following and respecting the rule of law. The political climate is trustworthy and attractive to foreign investors.

Foreign investors enjoy incentives like the locals; there is no restriction on transferring profits, and there is no tax discrimination. The existing law in Uruguay provides for bank and tax secrecy, and there are many areas that one can invest in.

5.6. Tourism High-end investors have plenty of investment opportunities in the tourism sector.

The business climate is favourable; there are plenty of incentives to help them tap into the tourism sector which contributes 7% to the Uruguayan GDP. The fact that the number of tourists visiting Uruguay is growing steadily and that domestic tourism is expanding means that any investment made in this sector promises great returns. Investment in the beaches, condos and restaurants guarantee good returns.

The sector enjoys great tax benefits including tax exemptions and regulations which are used to guide the sector.

5.7. Investment in logistics Uruguay is a regional hub in the southern region and enjoys a great advantage that helps in the development of logistic ventures. Middle-tier investment in distribution centres guarantees great returns as well because of the deep water ports, a brand new airport, and well developed infrastructure that is conducive for logistic investments.

The countries legal framework provides a major advantage to logistic companies operations. They include free port, duty free zones, bonded warehouses, free airports and admission regimes. To assist with both the private and the public sectors’ participation in logistics development, the National Institute for Logistics (“INALOG�) was created.

5.8. Investment in services Uruguay is strategically located putting it in an advantageous position compared to her neighbours. She boasts of excellent skilled manpower and has many professionals who are internationally acknowledged. The rapid expansion of the internet, reliable power supply makes it ideal when it comes to offering services. Its location allows her to offer various services to America and Europe. This means that the low-tier end businesses can venture in the service industry and excel. Already,

the Uruguayan government is developing support programmes for Global services Export, which is to help in the development of the export service market.

5.9. Investing in vehicle and auto part industry This industry provides lots of opportunities to foreign investors. Investors can venture in the assembling of vehicles or choose to concentrate on auto parts manufacturing. In 2015, the industry exported goods worth US$ 322million.

Companies that choose to invest in this sector enjoy 100% corporate income tax deduction. Also, the exports from this industry enjoy a reimbursement of 10 % on Free On Board (FOB) value. The country has a temporary regime for exported goods and machinery.

5.10. Construction industry Uruguay features strong corporate accountability, legal security, favourable business climate and plenty of tax incentives that makes an investment in the construction industry profitable. Investors can undertake work on the airport, road, rail construction as well as the construction of waste disposal treatment plants. Other opportunities that exist include construction of housing units for middle and low income earners, pipelines and ports development.

The country provides different types of incentives for industrial and commercial service activities. They include the free zones, public –private partnership, free airport schemes, temporary admissions and industrial parks. All these schemes serve as incentives meant to encourage investment.

5.11. The risks Political risks Uruguay is a democratic republic that uses a presidential system in which the president is the head of government and the head of state. He exercises executive powers while the legislative powers are vested in the general assembly chambers.

There is a clear independence of the judiciary from the legislative and the executive.

It follows a political system that is similar to that of the U.S, but elections are carried out after five years. There is political stability despite that tension between Argentina and Venezuela.

Currency risk There are no exchange controls in Uruguay. The country has liberalized the exchange market, and there are no restrictions on sale or purchase of foreign currency. The investor does not need to request prior authorization before making the investment as long as the environmental department clears his or her project. Foreigners are free to carry out transactions in foreign currencies. There will be a slow the rate of peso depreciation if there are strong foreign reserves coverage.

Liquidity risks The government is tightening policies which should lead to the narrowing of the fiscal deficit from current peaks. The banking sector is liquid and well capitalised.

Institutional risks As Uruguay is the least corrupt country in South America, corruption is a low risk for companies operating there. However, corruption is an obstacle for those in the public procurement sector. The operational uncertainty of agencies who will implement government reforms is a risk as reform implementation will take some time.

Chapter 6: Argentina 6.0. Investments in Argentina Covered with a terrain that encompasses glacial lakes, the Andes mountains, and pampas grassland is the country, Argentina. It’s famous for tango, football, and steak Its capital city is called Buenos Aires. By January 2016, the country had a population of 43,646,358 people 6.1 Currency The country’s currency is Argentine Peso (ARS$), and it traded at ARS$13.96 per USD, on 15 April, 2016 6.2. History Paraguay and Bolivia are to the north of Argentina while Brazil and Uruguay are to the east. The northern part of the country is swampy and a woodland. The southern part of the country is rolling and is rich in agriculture and is ideal for sheep and cattle raising.

Argentina is one of the few Latin countries that pursue democratic ideals. It has multiple parties system with dominant political parties being Justicialist Party and radical civic union. The president is bestowed with executive authority and serves for four years in a term. Its judiciary is independent thanks to its independence and nonintervention policy.

6.3. Trading bloc membership Argentina is a member of Mercosur trading bloc. Other members of the bloc include Brazil, Uruguay, and Paraguay. Mercosur stands for ‘’Common market of the south”.

Its aim is to promote free movement of people, services, and goods among the member countries. It targets to eliminate obstacles that slowdown the hamper of trade. The obstacles include income inequalities and tariffs. In 2012, the Mercosur admitted Venezuela as its fifth member. As an economic trade bloc, Mercosur has a population of 260 million people, and its total GDP is about $2.9 trillion. The Mercosur is the fourth largest trading bloc in the world.

6.4. Infrastructure Argentina has a very good infrastructure system compared to other Latin American countries. It has a total of 215,434 km of roads. This includes 734 kilometres of highways and expressways with 63, 556 kilometres which are paved. The country has 10,950 kilometres of navigable waterways, but most of her ports are located along Atlantic coast. The main ports include Bahia Blanca, La Plata, Buenos Aires, Commodore Rivadavia and Mar La Plata. The port of Ushuaia is located at the southern tip. It has a small merchant marine of 26 ships which includes 11 petroleum tankers that provide fuel to inland areas. Available also is a pipeline system that transports crude oil and other petroleum products. There are 4,090 kilometres of crude oil pipelines, 9,918 kilometres that transport natural gas and about 2,900

kilometres which transport other petroleum products. Buenos Aires is gifted with an extensive system of transportation including subways and buses. Even though other smaller cities have limited transportation resources, luckily, most of the major cities are connected by passenger railways with Buenos Aires having the most extensive commuter rail system.

Airports When it comes to airports, Argentina has 1,359 airports, but only 142 of them have paved runways. The capital city has two major airports. International departurs and arrival use Ezeiza International Airport as its main port. Aerolineas Argentinas is the national carrier for the country. The government has embarked on a program whose objective is to privatize the airports. About 33 major airports are being run and operated by private entrepreneurs.

6.5. Telecommunication In 1990, the country started deregulating the information and communication sector.

Currently, it boasts of the most advanced telecommunication infrastructure in the region. The state owned Entel ( Empresa nacional de Telecommunicaciones) was founded in 1991. The duopoly was mandated to provide telecommunication services across the nation.

6.6. Argentine economy Argentina has a high income economy and is the third largest economy in Latin American countries and the second largest in South America. The country has rich natural resources and a highly educated population. The agricultural sector is export oriented and has a diversified industrial sector. In the past, the economic performance of the country was considered uneven with economic booms alternating with severe recessions. However, today her economy is doing well no wonder the country is among the world high income countries. Some of the leading industries include petrochemicals, electronics, pharmaceuticals, copper, machinery, cement, tobacco products, machinery, biodiesel, furniture, leather, and steel.

6.7. Natural Resources There are plenty of mining and extractive activities especially petroleum and gas activities. Coal, metals, and minerals are all mined in Santa Cruz province. Copper, magnesium, lead, sulphur, uranium, tungsten, titanium, gold, and borate are among the metals and minerals that are mined in Santa Cruz province. The country produces 35 million m3 of petroleum fuels. It also produces 50 billion m3 of natural gas. This makes the nation self-sufficient. It uses 90 % of the oil produced and exports the remaining 10%.

The backbone of the Argentine economy is the manufacturing industry. It caters for about 15 % of her GDP. The sector is integrated into Argentine agriculture with more

than half of the nation’s industrial exports being agriculture based. They range from food and beverage processing.

The service sector is well developed and contributes to over 60 % of her GDP. The country has a diversified service sector that including financial, transport, real estate, corporate, insurance, communication service, corporate and tourism.

6.8. Investment opportunities If you are considering investing in Argentina, real estate is one of the areas you should consider. Investing in rental units in Buenos Aires guarantees you a steady income. Also, tourism has, in recent past become a lucrative business that has attracted high-end tier investors. Building smaller apartments for short term renting guarantees high returns especially in times when most hotels are fully booked.

Investors who have purchased apartments in a strategic location in Retiro areas and Recoleta areas are guaranteed of return on their investment. The south of the city especially the Buenos Aires has numerous real estate investment opportunities that are attractive because of the proximity to better areas.

Argentina is one of the largest and wealthy countries in Latin America that owns abundant natural and human resources. Its economy is highly diversified, and the 43 million people guarantee sufficient demand of goods and services. The country is second for having largest shale gas resource in the world, despite the fact that investors have to grapple with a few restrictions such as price, currency controls as well as a double digit inflammation.

6.9. Investment Incentives Incentives have been put in place y the govement to induce both domestic and foreign investment. Both the federal and municipal governments offer numerous incentives all meant to attract investment in various sectors. The government allows foreign firms to participate in government funded development programs, research, and subsidies. Foreign investors have the right to establish businesses, acquire interests in business and dispose of interests in the business.

6.10. Foreign direct investment laws The presidential decree on foreign investment stipulates that foreign investors can invest in Argentina without going through the rigorous investment procedures. The company may carry out investments before government approval. The decree further provides that investors have the freedom participating in mergers, joint ventures or acquisition at their own whim. The firms have the freedom to participate in research financed by the government. However, it should be noted that the Central Bank restrict investors from remitting dividends profits and investment out of Argentina.

6.11. Industrial Promotion

Already, there are investment promotion programs that allow a refund of VAT. The programs also allow for accelerated depreciation of capital goods and offers tariff incentives to locally produced capital good. Other special incentives the government is using to attract investment include creating special customs area and creating free trade zones.

On taxation, Argentine firms have the same tax liabilities. The taxes are assessed on imports, consumption, financial transactions, assets, property as well as payroll. The law aims to ensure that economic interests are promoted, and there is fair competition in all the sectors of the economy.

6.12. Investment Trends Although the investor confidence has remained low, there is hope that the investment climate can be improved if the currency controls are removed, and the unresolved sovereign debt dispute is resolved. Some international companies which have already established themselves in Argentina have reported plans to expand their investment, which is expected to bring stability and certainty in the economy.

Sectors that look bright and are attracting investors include energy, telecommunication, agribusiness, technology, mining and infrastructure development. In 2015, the National oil company and Buenos Aires was able to raise US$ 500 million, which shows that there is a huge demand for the Argentine bond.

6.13. Challenges Argentina has a black market called La Salada. This is the largest black market that deals in counterfeit and pirated goods. Smaller Las Salada which have proliferated Buenos Aires are raising concerns especially when one considers that the number of illegal vendors who are selling counterfeit products have reached alarming levels in the recent past.

The trademark laws that were passed in 1980 which were meant to deter criminal activities in the economy and the fact that the judiciary is reluctant to impose penalties on these criminal activities have not helped the country. Accordingly, despite having numerous investment opportunities, the government needs to do more to create a conducive environment that attracts investors and guarantee sustainable economic growth.

6.14. The risks Political risks Argentina faces hardship with the continued political uncertainty (arising from protests and strikes), a weak economic environment, and debt issues that will limit its growth potential. However with the new government and their policies, one only hopes that it will bring much needed foreign investment into Argentina.

Currency risks To support the currency and reduce inflation, restrictive capital, and imports control were put into place in 2011; however accommodative monetary policy continues to put pressure on prices, therefore, distorting market forces.

Liquidity risks On December 17, 2015, the government abandoned the strictly managed exchange rate regime and allowed the peso to float to a demand and supply driven level. The peso depreciated by more than 30%, moving much closer to the black market rate where most “unofficial� dollar transactions occurred. However, the currency appears to be settling, and officials report that international reserves are on the rise already.

Institutional risks With the new government (2015), investors can now depend on the finance ministry, the central bank (BCRA) and the statistics agency (Indec) to enact policies and be transparent to help with economic growth and to contain inflation.

SUMMARY This book has covered the main concerns for investors when dealing with how to make their money grow in a foreign land. Each chapter has covered the important factors when deciding to take your money to Chile, Panama, Brazil, Colombia, Uruguay and Argentina It is now the time to take a bold move and put your money to where it will earn a greater return. Look at the infrastructure because this is what guarantees the greatest return of investment. Consider the country’s political system governance and commitment to creating an enabling environment for businesses. The natural resources available in the country of your choice are equally important.

Put your money in a country with vast resources. This helps to maximize returns on your investment. Lastly, don’t just sit there and marvel at your friends who are making money out there. Take a bold move and join them.

Finally, please tell us what you think about this eBook by leaving a review on Amazon.

Coming soon