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Latin America
October 24th, 2018
2019 forecast
A webinar
presentation
Webinar agenda
- Introduction
- Latin America in a global context
- Drivers of Latin America’s economy
- Forecasting leading markets
- Industry Practice Forecasts
• Healthcare
• Payments
• Logistics
• Consumer goods & Retail
• Natural Resources
- Q&A
Introductions
AMI is the
leading
independent AMI is Latin America’s leading
AMI’s founding partners are
pioneers in the field of Market
Market
Market Intelligence and Intelligence in Latin America,
Advisory group. with over a quarter century of
experience in the region.
Intelligence
provider in
Latin America
AMI is a member of
AMI has experience in over 30
SCIP
Latin American and
Strategic and Competitive
Caribbean markets.
Intelligence Professionals.
4
About your webinar presenters
John Price
Managing Director
Abel Delgado Guillaume Corpart
Digital Marketing Director Managing Director
Healthcare Practice Director
Remi Piet Lindsay Lehr
Natural Resources Payments Practice
Practice Director Director
Mauricio Cárdenas
Diego Rodríguez
Consumer & Retail
Logistics Practice
Practice Director Director
5
Legal Notice Wherever possible, AMI has verified the accuracy of information provided by third parties, but does not under any circumstances accept responsibility for such inaccuracies should they remain unverified. It is expected that webinar attendees will use the information provided in this report in conjunction with other information and with sound management practices. AMI therefore will not assume responsibility for commercial loss due to business decisions made based on the use or non-use of the information provided.
Latin America in the global context
A slow but steady recovery
By 2021, the region will regain the $1trn USD GDP lost in 2015/16
$8,000 6.0%
$7,212
5.0%
$7,000 5.8% $6,860
$6,522
4.4% $6,389
4.0%
$6,272 $6,201
$6,064 $6,122
$6,000 $5,335 $5,755
$5,474 $5,493 3.3% 3.2% 3.2% 3.0%
$5,320 $5,301 3.0%
2.8% 2.8% 2.8%
$5,000 2.0%
1.7% 1.8%
1.0%
$4,000 0.9%
0.0%
-0.2%
$3,000
-0.7% -1.0%
$2,000 -2.0%
2010 2011 2012 2013 2014 2015 2016 2017f 2018f 2019f 2020f 2021f 2022f 2023f
GDP (USD Billions) GDP growth
Note – all data is based upon CY (calendar year).
Sources: BMI, World Bank, UN, IMF
8
LAC is rebounding but will underperform other EMs
Modest commodity prices, rising Fed rate, small productivity gains all weigh on LatAm’s future growth
10%
Africa
GDP real growth
8%
LAC
6%
East Asia
4%
Europe
2%
0% South Asia
-2% United States
2010 2011 2012 2013 2014 2015 2016 2017 2018 2019 2020 2021 2022 2023
Sources: IMF
9
Drivers of Latin America’s
economyCommodities drive the F/X of LatAm economies
Energy is making a comeback but trails industrial metals
Diverging commodity prices (indexed pricing)
300.00
Advantaged
Perú, Chile, Brazil
Rising global Energy importers – Central America, Caribbean
250.00 investment into
infrastructure • Latin Americans keep $4trn in savings off-
200.00
shore, leaving the region chronically short
of capital. LAC economies rely on foreign
debt to fuel growth and service that debt
150.00 primarily with surplus commodity exports.
• Bra, Mex, Arg, Chi, Col, Per, Ven currencies
100.00 are 97% correlated to the movement of
their respective top three commodity
exports.
50.00 Expansion of the US
energy sector (Shale). Disadvantaged
Venezuela, Ecuador, Colombia, Trinidad &
0.00
Tobago
2003M1
2003M5
2003M9
2004M1
2004M5
2004M9
2005M1
2005M5
2005M9
2006M1
2006M5
2006M9
2007M1
2007M5
2007M9
2008M1
2008M5
2008M9
2009M1
2009M5
2009M9
2010M1
2010M5
2010M9
2011M1
2011M5
2011M9
2012M1
2012M5
2012M9
2013M1
2013M5
2013M9
2014M1
2014M5
2014M9
2015M1
2015M5
2015M9
2016M1
2016M5
2016M9
2017M1
2017M5
2017M9
Industrial Metals Energy
Source – The Economist
Data is updated through May 2018
11The 2nd longest bull-run in US history will slow in 2019
However, the dollar, employment and wage growth will remain strong, buoying closely linked LAC economies
The U.S. labor pool is shrinking – The dollar will
immigrants are needed further strengthen
Full employment is The Fed plans to raise rates
driving up wages steadily (2% inflation target)
U.S. GDP and Fed Rate Forecasts (2017-2022) Business Cycle Co-Movement with U.S. Economy
Mexico
4% 4%
3.4% Chile 2004-16
4% Costa Rica
3% 2.6% 3% Honduras
2.4% Ecuador
3% 2.2% El Salvador
1.9%
2% 1.7% 2% Guatemala
Paraguay
2% Colombia
1% 1% Panama Mexico and Central
Venezuela America
1% Uruguay
0% 0% Peru South America
Brazil
2017 2018 2019 2020 2021 2022
Argentina
GDP Interest rates 0. 3 0. 4 0. 5 0. 6 0. 7 0. 8
Sources: IMF, Kiplinger report 12Taper tantrum 2.0?
Is the market over-reacting to the Fed’s rising rates?
Target Federal Funds Rate
20% 2018 currency movement
(January - September)
18%
16% (45%)
14%
(17%)
12%
(11%)
10%
8%
6%
4%
2%
0%
1980
1981
1982
1983
1984
1985
1986
1987
1988
1989
1990
1991
1992
1993
1994
1995
1996
1997
1998
1999
2000
2001
2002
2003
2004
2005
2006
2007
2008
2009
2010
2011
2012
2013
2014
2015
2016
2017
2018
2019
2020
Fed rate
13Thrown out
Voters are rejecting the status quo, not shifting right or left
✔ ✔ ✘ ✘
Leading Candidate Mexican Pres. Brazilian Ex-President Brazilian President
Jair Bolsonaro Candidate AMLO Dilma Rousseff Michel Temer
✘ ✘ ✘ ✘
Peruvian President Peru Opposition leader Mexican President Chilean President Bachelet
Kuczynski Keiko Fujimori Peña Nieto
14LatAm governments face a fiscal crisis
LAC governments still need to catch up with cost cutting. None can afford expanded infrastructure. Growth over
the next two years will come from a rebounding private sector, not public spending
Fiscal Deficit/Surplus as % of GDP
5%
2%
1% 1%
0%
-1% -1%
-2% -2% -2% -3% -2% -2% -2% -2%
-3% -3% -3%
-5% -4% -4% -3% -4%
-4%
-5% -5%
-8%
-10%
-10%
-15%
-15%
2012 2015 2018
-20%
-20%
-25%
Brasil México Argentina Chile Perú Ecuador Venezuela Panama Colombia
Source – World Bank, BMI
15Business confidence is on the rise, with caveats
Recovering debt levels, mineral prices and declining fear of Trump policies underpins rising confidence
Recent rebound in business investor confidence in LatAm
Trump election victory & Taper tantrum
105 inauguration 2.0. Rise of
AMLO
100 Drop in Drop in
mineral energy
Confidence index
95 prices prices
90
85
80
75
Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2 Q3 Q4 Q1 Q2
2012 2013 2014 2015 2016 2017 2018
Source: World Economic Outlook Database
16Forecasting Leading Markets
Did Mexico dodge a bullet?
AMLO has built a constructive relationship with Trump, helping create an alternate NAFTA agreement. However, the
pragmatism of his domestic economic policies remains in doubt.
GDP (US$ bn) and Growth Upside & downside risks
1,600 3.0%
NAFTA put back on track after US mid-terms
Oil prices continue to rise, modestly
1,400 2.8%
2.7% 2.5% o USMCA ratification complicated by new US
2.6% congress
1,200 o AMLO super-majority (all branches of govt)
2.3% 2.3% 2.3%
2.0% leads to overspending and punishes the Peso
1,000 2.0%
800 1.5% Foreign direct investment (US$ bn)
600
1.0%
$45
400 $40
0.5% $35
200 $30
$25
- 0.0%
$20
2014 2015 2016 2017e 2018f 2019f 2020f
$15
GDP (USD) GDP growth $10
$5
2014 2015 2016 2017e 2018f 2019f 2020f
Some data estimated since many of the official sources in the region are still finalizing last year’s data.
Sources: BMI, additional sources listed in final slide.
18President Bolsonaro will aid recovery, for a while
Households and the corporate sector have paid down debt. Will Bolsonaro follow through on needed reforms?
GDP (US$ bn) and Growth Upside & downside risks
3,000 4.0%
Temer reforms remain intact with the next gov’t
3.0% (most likely Bolsonaro)
2,500 Further reforms achieved with next government
2.7%
2.0% including Pension reform.
2.5% Brazilian currency strengthens
2,000 Corporate sector raises equity financing
1.0%
1.6%
1,500 0.5% 1.0% 0.0%
o Economic nationalists, not neo-liberals, win the
ear of President Bolsonaro
-1.0%
o Lava Jato case continues to disrupt Brazil’s
1,000 political process
-2.0%
500
-3.0%
0 -3.5% -3.5% -4.0%
2014 2015 2016 2017e 2018f 2019f 2020f
GDP (USD) GDP growth
1952% YTD depreciation lessens support for Macri
With few foreign reserves , Argentina was targeted by financial traders and forced to petition a line from the IMF
GDP (US$ bn) and Growth Upside & downside risks
700 3.5% 4.0% IMF strategy settles markets, currency strengthens
Investors continue with plans
2.9
2.6% Macri hangs on and is re-elected in 2019
600 3.0%
2.0% o Unions negotiate hard, pushing up inflation
500 2.0% o Domestic investment stifled by high interest rates
o Peronists win the election and turn the clock back on
400 1.0%
reforms
Inflation and Interest rates
300 0.0%
60% 40.0
200 -1.0%
30.0
40%
-1.3%
100 -2.0% 20.0
-1.8% 20%
10.0
-2.5%
0 -3.0% 0% 0.0
2014 2015 2016 2017e 2018f 2019f 2020f 2014 2015 2016 2017e 2018f 2019f 2020f
GDP (USD) GDP growth Inflation Interest rate FX (ARS/USD)
Some data estimated since many of the official sources in the region are still finalizing last year’s data.
Sources: BMI, additional sources listed in final slide.
20Ivan Duque’s election should aid Colombia’s recovery
Colombia’s economic recovery stalled due to election uncertainty. Duque’s pro-investment policies should entice
more investment
GDP (US$ bn) and Growth Upside & downside risks
400 5% Duque administration will continue much needed
reforms and loosen regulations
5% Investor appetite for infrastructure projects should
350
4.4% 4% return
300
4% o Renegotiating FARC peace accord ignites violence from
3.6%
250
3%
FARC dissidents and frightens investors (e.g. mining
3.1% 3.2% sector)
200 3% o Venezuelan immigration grows into refugee crisis
2.6%
2%
150
2.0%
1.8% 2%
100
1%
50
1%
0 0%
2014 2015 2016 2017e 2018f 2019f 2020f
GDP (USD) GDP growth
Some data estimated since many of the official sources in the region are still finalizing last year’s data.
Sources: BMI, additional sources listed in final slide.
21Chile: prepared for a challenging 2019
Falling copper prices and a high USD debt levels will be off-set by rising FDI in mining and infrastructure
GDP (US$ bn) and Growth Upside and downside invitation
400 4% Copper prices strengthen due to Asian demand
Reform agenda can move forward, particularly tax and pension
350 3.2% 3.2% 3% reforms
300 o China-US trade war hurts copper demand
3%
250
2.3%
2% Consumption & industrial growth
200 2.0%
1.8%
2% 6%
150 1.5% 5%
1.3%
1% 4%
100
3%
1% 2%
50
1%
0 0% 0%
2014 2015 2016 2017e 2018f 2019f 2020f -1% 2014 2015 2016 2017e 2018f 2019f 2020f
GDP (USD) GDP growth Consumption growth Industrial production growth
Some data estimated since many of the official sources in the region are still finalizing last year’s data.
Sources: BMI, additional sources listed in final slide.
22Peru: Are the Fujimoristas down and out?
Billions sit on the sidelines waiting for a political clarity in Peru. Will Keiko’s arrest enhance or further disrupt
governability in Peru?
GDP (US$ bn) and Growth Upside & downside risks
300 5% Mining investment plans continue unabated
4%
Political alignment paves the way for new infrastructure and
250 energy projects
3.9% 3.9% 3.9% 3.8% 4%
o Investigation of Fujimori provokes more political antagonism
200 3.3% 3%
3%
150 2.5%
2.4%
2%
100 2%
1%
50
1%
0 0%
2014 2015 2016 2017e 2018f 2019f 2020f
GDP (USD) GDP growth
23LatAm disruption 2.0
LAC relied on demographics to grow. That will change.
• LAC growth relies
disproportionately on an expanding
Contribution of labor input and productivity increases to GDP growth, 2000-15 % labor pool. For the next 10-15
years, the region can sustain >2.5%
annual grow but by 2035, the
region must begin to rely in
productivity boosting innovation to
22 27 30 enhance growth.
37
51
69 Productivity
83 contribution • Very low patent registration
86
volumes in Latin America are the
78 73 result of a weak rule of law that
70 63
49 Labor input discourages risk capital from
31 contribution investing in start-ups. Instead,
17 14 many Latin American inventors
Latin Middle East Oceania Africa Western North Eastern Asia leave the region to launch their
America Europe America Europe and ideas.
Central Asia
GDP growth,
CAGR %
0.6 1.1 0.9 1.8 0.6 1.4 3.2 6.1 • As we enter an époque of digital
disruption, the world’s technology
Source – McKinsey divide may further exacerbate
Latin America’s growth
disadvantage.
28LAC technology needs will be serviced from abroad
China publishes 50 times more patents PER CAPITA than Latin America
• Latin America is one of the fastest growing IT markets in the
world with CAGR of 5.5% through 2021
• Cloud computing demand is growing at CAGR above
10% (through 2021)
• Brazil (#2), Mexico (#6), and Argentina (#8) are top 10
global markets for total hours per week spent on the
internet.
• 450 million mobile internet subscriptions by 2020
• Brazil (#2), Argentina (#3) and Mexico (#4) are among
the highest users of Social Media worldwide
• Close to 200 million smart phone users today
• Latin America has an abysmal track record of developing its
own technology, responsible for less than 1% of the world’s
patents. Therefore, Latin America relies on international
sources for almost all of its high-tech needs.
• High tech products will continue to be a cross-border logistics
opportunity for consumers and businesses inside Latin
America.
Source – World Bank
292017-2027: Latin America’s decade of disruption
Latin America’s inefficient domestic service sectors are ripe for disruption
• E-comm growing at 20% CAGR. Presently 2.5% of retail versus 10% in US, 20+% in China.
Retail • Amazon in Mexico, entering Brazil; Alibaba in Brazil, Mexico soon.
• Uberization of the first and last mile freight transportation – e.g. Chazki
Logistics • New marketplaces for established carriers – e.g. Gurucargo
• Productivity tools – e.g. Logiety
• Government austerity is leading to investment in cost saving software, and tighter procurement
Healthcare • New mobile private clinics servicing underfunded segments
• Uber’s fastest growing market region in the world in Latin America
Transport • Mexico City is Uber’s 3rd largest market on the planet, commanding prices 2 x conventional taxis.
Education • Self-paced e-Learning valued at $2.5bn, 10+% CAGR
• 10% of EdX rev from LatAm; 30% of Coursera LatAm via phone
• LatAm stars: Descomplica, EduK, Tareas Plus, Platzki, veDuca
Banking • P2P lending is still nascent but growing quickly (e.g. Kubo Financiero)
• Alternative payment players beating banks & networks at: digital wallets (PayPal, Samsung Pay);
remittances (Xoom, WorldRemit);
• New players to come: Apple, Facebook, Google, Alibaba
30Practice outlooks
Healthcare
Outlook 2019
Presented by:
Guillaume Corpart
29Harnessing emerging markets is key to growth
Number of hospitals by economy Number of hospitals by country
Developed China
economies India
~25,000 Japan
Brazil
Russia
United States
Mexico
Korea
Emerging Germany
markets Nigeria
~75,000
France Emerging markets
Colombia Developed
Argentina economies
• There are 3x as many hospitals in emerging markets as there are in developed economies.
• Out of the top 10 emerging markets, 4 are in Latin America.
• Access is still the biggest challenge across the region.
40Forces of change reshape LatAm healthcare
MICRO (PATIENT) MACRO (SYSTEM)
HIGHER IMPACT
3 MAJOR TRENDS
Obesity
Ageing pop. • Ageing population
epidemic
• Obesity epidemic
Dependency Lack of
$ • Lack of efficiency
ratios Private insurance efficiency
Tight budgets
Private care
Patient
participation Mobile
disruption
LOWER IMPACT
Value based Provider
care consolidation
41Forces of change reshape LatAm healthcare
MICRO (PATIENT) MACRO (SYSTEM)
HIGHER IMPACT
EFFECTS
Obesity
Ageing pop. • Household structure and
epidemic dependency ratios
• Financial strain on public
Dependency Lack of
$ systems
- Longer wait times,
ratios Private insurance efficiency Lower quality of care
Tight budgets
Private care • Migration to private care
Patient • Growth of private
participation Mobile insurance
disruption
• Provider consolidation
LOWER IMPACT
(vertical integration,
Value based Provider conglomerates)
consolidation
care • Rise in value-based-care
41Forces of change reshape LatAm healthcare
MICRO (PATIENT) MACRO (SYSTEM)
HIGHER IMPACT
EFFECTS
Obesity
Ageing pop. • Financial strain on public
epidemic systems
- Longer wait times,
Dependency Lack of
$ •
Lower quality of care
Migration to private care
ratios Private insurance efficiency - Private care growing at
Tight budgets
Private care >10% per year
Patient
participation Mobile • People wanting to take a
disruption more proactive stance in
LOWER IMPACT
health management
Value based Provider • Use of mobile apps to do
care consolidation so
41Forces of change reshape LatAm healthcare
MICRO (PATIENT) MACRO (SYSTEM)
HIGHER IMPACT
EFFECTS
Obesity
Ageing pop. • Shift in paradigm, moving
epidemic away from caring for the
ill and looking to
Dependency Lack of
$ •
population health
Increase in value-based
ratios efficiency
Private insurance Tight budgets care
Private care • Use of mobile
Patient
participation technologies and Patient
Mobile
disruption
participation in order to
LOWER IMPACT
reduce costs and achieve
outcomes
Value based Provider
care consolidation
41Payments Outlook 2019 Presented by: Lindsay Lehr
The technology battle for in-store payments
Contactless card mandates from networks QR codes from closed-loop networks
QR codes in Argentina
Cobro SPEI in Mexico w/ QR
January 2019 April 2019
P2P & QR merchant payments in Peru
Tencent investment in Nubank
April 2019
LatAm Australia
Contactless today
90%
Winners Winners
Card Modern Card Modern Traditional QR code
Banks Banks
networks merchants networks merchants merchants network
31Commerce moving toward an open platform model
Digital natives obscuring brands Traditional merchants under pressure
purchase of
On-demand delivery
Restaurant delivery acquisition of
Supermarket delivery launching delivery app
Mass success in ride hailing As marketplaces grow….
Merchant brands lose relevance
Card-on-file and recurring payments prevail
Digital goods top-ups
Blurred lines between the physical and digital
Planning LatAm expansion Mobile phone grows as transactional channel
32Logistics
Outlook 2019
Presented by:
Diego Rodríguez
38Maturing e-commerce generates more returns
30%
Impact
25%
Product returns is a profit-killing operation
in Latin America.
20% Online retailers have begun to prioritize
and evaluate the reverse logistics
15% capabilities and flexibility of their 3PL
suppliers.
10% Today retailers prefer to ship a new
product to a cross-border customers to
5% avoid the hassles of returning the faulty or
mistaken product.
0%
Product returns as % of total sales
Peru Colombia Chile Mexico Brazil
Source: AMI internal analysis
34Warehouse automation and data analytics
Big Data 2%
6%
Analytics
Spend 7% Impact
in LatAm, The e-commerce boom is forcing change
2017 8%
upon where and how warehousing and big
data is managed by logistics customers.
Big Data is catching on among big firms in
47%
LAC as it gives them insights from the
information that they already have to
deliver a better customer experience and
improve the efficiency of the business
operations.
27%
Brazil Mexico Colombia Chile Argentina Peru
Source: Frost & Sullivan
35Logistics customers strive to cut costs
100%
Impact
90%
Logistics buyers are under tremendous
80%
cost pressures. Logistics spend is one of
70% the largest cost items of any manufacturer
60% in LatAm.
50% According to AMI surveys, the most
important trigger of change to a
40%
customer’s choice of logistics vendor is the
30% pursuit of lower costs.
20%
10%
0%
Mexico Brazil Panama Colombia
Cost reductions and efficiency Re-design logistics operation
Unstatisfied with current 3PL
Source: AMI internal analysis
36Consumer Goods & Retail Outlook 2019 Presented by: Mauricio Cárdenas
A volatile region with optimistic consumer sentiment
LatAm Consumer Sentiment Index
105
Col
99
100
Mex
93
Confidence
Per
95
+ Spending mode
95
95
Brz
88
90
Chi
95
70
Arg
Uncertainty
-
83
65 Savings mode
Vza
57
0 20 40 60 80 100 120
Proj 2019 Q2 2018 Q1 2018
Source: The conference board in collaboration with Nielsen, AMI
38Consumer/Shopper at the center of strategy
Always Healthy Simplicity Authenticity
on lifestyle
Consumer
DISRUPTORS
Shopper
Omnishopper e-commerce Changed Big Data
shopper route Price/Promo
39Effective strategies to drive growth in 2019 and beyond
Consumer Goods Retail
• Boost Productivity • Hybrid strategy (on/off)
• Innovation • Personalize experience
• Targeted marketing • Clear value proposition
• Corporate & Social responsibility • Promote healthy lifestyle
• Agility! • Test new products/models
40Natural
Resources &
Infrastructure
Outlook 2019
Presented by:
Remi Piet & John Price
462019: LAC Mining sector trends
Positive mining reforms throughout the continent but local community opposition continues to strengthen
01 National governments re-embracing mining investment
In Colombia, Ivan Duque reformed the disbursement
of royalties and strengthened answers to illegal
mining
In Ecuador, Lenin Moreno adopts a more constructive
attitude towards the private sector
In Peru, Martin Vizcarra issues favourable regulations
for lithium and uranium mining.
Conservative governments in Chile, Argentina and
most likely Brazil favour mining investments.
Number of local conflicts
against mining operations
02 Investor risk shifts to local communities
Degradation / improvement of Local consultations and referendum against extractive industries
national regulations and business will continue spreading throughout the continent.
environment for the mining
industry
Rise in local insecurity and criminal activity in particular in
Mexico, Colombia or Brazil will impact mining operations
Unclear frameworks of “consulta previa” in several jurisdictions
and ILO 169 convention will fuel litigation from indigenous
communities and NGOs
422019: LAC Energy sector trends
The rise of global energy prices will lead to regulatory reforms and new investment opportunities.
01 Energy reforms debates will dominate the agenda in several key jurisdictions
AMLO will give preferential treatment to Pemex over private players,
allowing the state company to regain its leading position in Mexico’s energy
landscape with an exploration and production budget of $11 billion in 2019.
Bolsonaro plans to privatize non-core units of Petrobras and Eletrobras but
will limit foreign investments in “strategic businesses” in the energy sector.
Macri phased out energy subsidies and increased tariffs but also capped the
price at which companies producing oil in Argentina can sell to refineries
Degradation / improvement of
national regulations and
business environment for the
02 Guyana, Chile, Colombia will offer the strongest investment opportunities
energy industry
Large offshore oil finds, supportive business regulations place Guyana at
the top of the ranking of investment opportunities
Chile, already one of the world’s 10 leading producers of clean
energy, wants 90% of electricity from renewables by 2050, up from 17% in
2017.
Duque’s solution to dwindling oil reserves is to encourage investment in
exploration. He promised tax cuts to facilitate the industry’s investment
needs ($7 billion a year)
432019: LAC Infrastructure sector trends
Project boom delayed by fiscal deficits. Increased scrutiny after Lava Jato scandal means higher need for
comprehensive due diligence
01 Project boom on hold and increased local opposition
Public sector financing reduced by Odebrecht scandals and corruption Greater due diligence and intelligence
macroeconomic and fiscal imbalances concerns led to sounder PPP frameworks reports needed for future projects
02 What jurisdiction will be the most promising for infrastructure projects in 2019?
The renewed legal framework (2012) makes Colombia one of the most attractive countries in Latin America for PPP and private investment.
Over the last 5 years, Colombia has developed 37 PPP projects. The country is finalizing the settlement of the fourth generation (4G) of road
licenses, the most ambitious road infrastructure project in its history.
Chile approved more than 70 PPP projects in the last 5 years. Airports, generation of electric power projects, road licenses, railroads, water
and sanitation and hospitals
Half of the PPP projects in Latin America are developed in Brazil, mostly for public lighting , penitentiary, health and education establishments.
A Bolsonaro administration is likely to diversify the type of infrastructure and multiply opportunities
The public-private participation system in Argentina is modern and solid but still very recent. The Macri Administration passed a new PPP law in
2016 and designed the Belgrano Plan that involves a road, railway and commercial air project to boost the development of northern provinces.
44Summary
• LatAm is entering its 3rd year of gradual recovery with plenty of runway ahead
• 2018 elections should lead to pro-investor policies
• LatAm will largely escape the ill-effects of US protectionism
• An era of disruption has begun in all service
sectors in LatAm
• Cost cutting, not revenue growth will drive
corporate strategies
45Questions/Answers
Contact us
@ info@americasmi.com Lindsay Lehr
Payments
Diego Rodriguez
Logistics
Remi Piet
Mining, energy &
llehr@americasmi.com drodriguez@americasmi.com Infrastructure
rpiet@americasmi.com
+1 (305) 441-9300
www.americasmi.com
Guillaume Corpart Mauricio Cardenas John Price
Healthcare Consumer goods & Retail General enquiries
gc@americasmi.com mcardenas@americasmi.com jprice@americasmi.comYou can also read
