From Tech to Green Energy: How key industries are shaping the economic future of the region
Latin America is the most urbanized region in the world- meaning over 80% of its population lives in cities! The result of this urban concentration has paved the way for major innovation in business sectors across key LATAM cities such as São Paulo, Mexico City, Bogotá, and Buenos Aires.
Meanwhile, Miami, FL, stands out as the pivotal North American hub for Latin America. The city’s strategic role in linking the region has allowed for a surge in business innovation. With over 1,000 LATAM multinationals setting up their headquarters in Miami, the city plays a key role in fostering and enhancing business connections across the region.
Today we take a closer look at which sectors are propelling this remarkable growth for the Americas (LATAM alone has reached a collective GDP of $5.3 trillion in recent years) and explore the potential opportunities they herald for global investors and entrepreneurs alike.
Tech Startups: The Fintech Takeover
While Latin America may have entered the tech scene later than some regions, today there is over $15.3 billion in venture capital investments- with countries like Brazil, Mexico, and Colombia leading the charge. The growth is spearheaded by fintech and EdTech– areas where Latin American startups are not just competing but setting important global examples. @Nubank from Brazil, is now one of the largest digital banks globally and is a crucial representation of how the fintech innovation is transforming financial inclusion in the region.
Green Energy: Harnessing Natural Assets
With the Amazon, the most biodiverse region on the planet occupying nine Latin American countries, it is no wonder that Latin America can take the helm in building practices for a sustainable global future Countries such as Chile, Brazil, and Mexico are investing in solar, wind, and hydro, energy production. In Chile, an ambitious plan has been set to generate 70% of its energy from renewable sources by 2050. Meanwhile, Brazil is currently generating 60% of its electricity from hydro sources. The focus on this green transition has created new jobs and burgeoning investment opportunities from northern countries.
E-Commerce: How Apps have Led Growth
The e-commerce sector, already on an upward trajectory, saw unprecedented acceleration due to the pandemic, particularly in Latin America. This region, home to over 650 million people, fully embraced digital commerce and the app experience like never before, transforming shopping habits and consumer expectations. A prime example of this digital revolution is @iFood, a food delivery app that has become a household name across Latin America. Founded in Brazil, iFood has rapidly expanded to become Latin America’s leading food delivery service, operating in multiple countries across the region. The company reported a staggering 400 million orders in 2020 alone, a significant increase from previous years. iFood’s success is emblematic of the broader e-commerce boom in Latin America, with the company securing over $500 million in funding to fuel its expansion and technology development.
Are you interested in tapping into Latin America’s booming business sectors?
Whether you’re an investor, entrepreneur, or new business, opportunities abound across the region and @Rubi Group is here to position you in the right direction
Contact us today and we can explore the region’s possibilities together!