The interest in Argentina, despite their macroeconomic and political challenges, shows that global actors are willing to assume certain risks not to be out of competition for these strategic resources.
Created by the Base Law, The incentive regime for large investments (Rigi) is one of the Government’s great bets to trace large -scale investments in strategic sectors such as energy, technology, tourism and industry. It is true that for this to happen, not only more favorable macroeconomic conditions are needed, but rebuild trust of the great investors in the predictability of the rules of the game in our country.
This will clearly depend on the evolution of the political, economic and social landscape in Argentina, but above all of a central element: Time. That is why it is important to understand, three months after the entry into operation of the Rigi, what investment projects were presented so far? What tells us about the world geopolitical stage?
To date there are 9 projects announced by an approximate total of 11,366 million dollars, of which one has already been approved by the Evaluation Committee and the remaining 8 are under study, according to official and transcended statements. Three preliminary observations. What do the announced projects have in common? The vast majority of them are focused on export and are projects of the energy and mining.
On the other hand, it is evidenced A territorial balance of proposalscovering the northwest, Cuyo, Patagonia and Centro, with a marked exception of the northeast region; This is important, since by their nature much of these investments are negotiated with the provinces. Finally, it is observed The absence of projects in other sectors contemplated by the Rigi, such as Technology, Forest Industry and Tourism.
Energy projects represent 56% of the amount of proposed investments and are concentrated mainly in the exploitation of Muerta Vacathrough a new pipeline that will cross the provinces of Neuquén, Río Negro and Buenos Aires and a liquefaction ship for the production of LNG. But there are also two projects on Renewable energy: The YPF Luz Solar Park in Mendoza (first project approved by the Evaluation Committee, which will install more than 500,000 solar panels in the town of Las Heras) and the wind farm proposed by PCR and Arcerational acindar in Olavarría, both with the intention of supply local residential and industrial consumption.
The other focus is undoubtedly the mining (Approximately 41% of the amount of proposed investments), with initiatives in Salta, Catamarca and San Juan proposed by foreign capital companies. Here highlights lithium, one of the critical minerals of our time for its relevance for the energy transition and its uses for the technology industry, and gold in Gualcamayo, San Juan. The steel sector completes the panorama with a project for a new high -tech plant in San Nicolás.
The proposed investments at the moment in the framework of the Rigi reflect the deep geopolitical transformations that we are going through. The dominant presence of foreign capitals for mining and local capital projects in association with them in the field of energy is no accident: it responds to a scenario in which the access and supply of critical minerals such as lithium and energy security are central in a context of growing international tension.
The war scenarios in Europe, the Middle East and Africa and the new imprint on foreign policy but also of domestic-industrial politics of the United States with the arrival of Trump accelerate an already visible trend in recent times: in a largest panorama uncertainty, companies and countries seek with emphasis reduce its dependence on traditional suppliers and build more diversified supply chains and therefore – more resilient is assumed.
From that look, South America presents numerous opportunities to invest in key sectors. In particular, interest in Argentina, despite its macroeconomic and political challenges, shows that Global actors are willing to assume certain risks not to be out of competition for these strategic resources.
* Executive Director of the Master in International Relations of the Universidad Austral.
Source: Ambito
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