He 29% of industrial SMEs and 19% of software SMEs have their investment projects paralyzed by 2024, which could have generated some 17,000 jobs, according to data corresponding to the SME Observatory Foundation (FOP).
The entity, which carries out one of the most detailed and extensive surveys of the sector in the country, revealed that “the High uncertainty and high costs, along with difficulty in accessing capitalgroup together the main reasons for the slowdown in productive investment.”
The study warns that “productive investment projects that cannot be carried out without also generating jobs and labour insertion prevented or, at least, reduced.”
Thus, the FOP indicates that, according to its own estimates, “17,000 jobs could be created additional if manufacturing and software and IT services SMEs could carry out their stalled projects.”
Still, the report indicates that, in April of this year, 27% of industrial SMEs considered that it was a good time to invest, which meant an improvement of 4 points compared to February. For 41% of software companies, however, it was a good time. to develop investments. In the case of industrial ones, the figure is 10 points lower than in 2023 and, in technological ones, 20 points higher.
Waiting for the RIGI at the UIA
The entrepreneurs of the The Argentine Industrial Union (UIA) is waiting for the regulation of the Large Investment Incentive Regime (RIGI) since it could open the doors to some investments, especially for large companies.
This week, The Board of Directors, which includes representatives from the interior of the country, addressed the issue although with demands for SMEs, which represent more than 90% of the firms.
According to the view of industrialists, “The regulation of the Large Investment Incentive Regime (RIGI) must strengthen the network of national suppliers and regulated for this purpose, as the spirit of the law suggests.”
They also claimed that Anti-dumping mechanisms against imports from Asia are streamlined and insisted on the need for a new SME law is passed to compensate smaller units for the benefits that RIGI grants to larger units.
Some projects in progress
The regime may be of interest to a dozen companies that, due to their size, would have the capacity to develop projects of more than US$200 million as required by the regulations.One of the recently announced projects is the Techint Group, which is seeking to build an iron factory for construction for US$300 million, as announced a couple of months ago when the RIGI case became known.
But strictly speaking, The vast majority of the industry is made up of SMEsthe RIGI is of no use to them unless they can be part of supplier networks of large corporations.
So The Government is expected to announce this Friday the regulations of the program that grants fiscal and exchange stability until 2038, the objective of which will be to boost operations at the Vaca Muerta unconventional oil and gas field. This project alone involves an investment of US$30 billion in the coming years.
But beyond these specific and punctual projects, It is not expected that there will be an explosion of investments, especially from abroad. The country’s recent history of breaching contracts and changing tax rules plays against it.
In this sense, the Government officials They try to ensure that the RIGI is robust enough to prevent it from going backwards in the event of a change of administration. Legal advisors, however, recommend making limited and punctual use of the plan to avoid potential multi-million dollar lawsuits in the future.
Source: Ambito
