Analysis

Argentina expands offerings with renewable energy and offshore drilling auctions
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With a strained electricity grid and officials aiming to bring in more income to prop up the economy, the administration of President Mauricio Macri is expanding sector offerings for foreign investors. The government has been promoting renewable energy sources since 2016, and with offshore block auctions expected at the end of 2018, these two segments represent the most promising prospects for growth…

Analysis

Argentina's work towards a unified federal mining deal attracts new investment
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A key challenge facing mining investors in Argentina involves navigating the different legislative frameworks of each province, which under the constitution, own the subsoil mineral wealth. This gives local governments significant say in the licensing, taxing and regulation of the industry. The use of open-pit mining and cyanide are banned in Chubut Province, for example, effectively making the Navidad…

Analysis

Argentina and Chile expand gas trade and evaluate infrastructure
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Despite growing domestic gas production from reserves at the Vaca Muerta deposit (see analysis), Argentina still relies on gas imports to meet local demand. The country was a net energy exporter in the early 2000s, but artificially low electricity and gas prices set by the government saw many producers leave the country from 2006 onwards, while at the same time enabling residents to consume more energy.…

Analysis

Raised utilities costs to help Argentina tackle its fiscal deficit
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One of President Mauricio Macri’s major campaign promises in 2015 was to rein in the government’s ballooning fiscal deficit by reducing costly electricity and gas subsidies. Prices that had been kept artificially low since 2002, coupled with the steady depreciation of the peso, caused many energy producers to close up shop. In response, the current administration’s progressive subsidy cuts have…

Analysis

Argentina positions itself as a leading destination for lithium production
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In a 3000-sq-km area traversing northern Argentina and neighbouring Chile and Bolivia lies the so-called “lithium triangle” an area estimated to hold over half the world’s lithium deposits. As demand surges for the products that use lithium-ion batteries – among them electric cars, cell phones and renewable energy projects – major electronics companies are looking to ensure their supply,…

Analysis

Production picks up at Argentina's Vaca Muerta shale deposit
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Below the dry rocky earth of Neuquén Province lies one of the world’s most exciting energy prospects. The Vaca Muerta rock formation is found at depths of 1000-3000 metres, and covers an area of 30,000 sq km – similar in size to Belgium. The formation was given its name in 1931 by a geologist from the US who discovered its hydrocarbons content, but the technology required to exploit it would be…

Analysis

Initiatives promoting Argentina's food and beverage industry
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Being a sizeable producer of agricultural goods, Argentina is in a favourable position to reap the benefits of rising global demand for food products. According to figures provided by the Ministry of Agro-industry (MoA), in 2017 food exports amounted to $25bn and accounted for 43% of total Argentine exports. That same year, the food and beverage (F&B) industry represented 26% of manufacturing GDP. Performance The…

Analysis

Innovation and diversification to develop Córdoba's potential
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In management and production, Córdoba has chosen a path for innovation, creating its own Productivity Cabinet, and calling for collaboration and creativity. This cabinet is composed of the provincial ministers of industry, commerce and mining, agriculture and livestock, and science and technology, as well as presidents of three provincial agencies: the Agency for Innovation and Entrepreneurship, the…

Analysis

Outlook for Córdoba's automotive sector
OBG
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Córdoba is one of the most active provinces in the country in terms of industry, and it places a particular emphasise on automotive manufacturing, representing as much as 30% of total production. Its strength in this regard stems from a mixture of specialised human resources and a well-established network of suppliers, with more than 250 auto parts companies in operation in the province. Manufacturing…

Analysis

Argentina's small businesses adapt to liberalisation and fiscal consolidation
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According to the Ministry of Production, 99.8% of Argentina’s companies are micro-, small and medium-sized enterprises (MSMEs) – those with fewer than 200 employees – in 2017. With a 4.1m-strong workforce, they also provided the majority of jobs. A skilled local labour force and pervasive entrepreneurial spirit have also fostered a dense and diverse MSME ecosystem, covering nearly all sectors. The…