Chile is setting the path for innovation in the region, and the investment opportunities are growing
In our last business article, we told you how Chile ended the 2020 at the top of the most relevant rankings for investors (if you haven’t read it, you definitely should click here: https://www.creimermanlaw.com/post/chile-is-leading-all-the-rankings-in-latin-america-and-is-the-best-country-to-invest-in-the-region).
To sum it up, the country is the leading Latin-American country in rakings such as the Global Connectivity Index (GCI), the Global Opportunity Index, the Global Connectedness Index, the Global Innovation Index, the Global Talent Index, and the IMD World Digital Competitiveness Ranking; and as if that weren’t enough, it also got the first position as the best country IN THE WORLD to invest in renewable energy in.
Having said that, we left you hanging with a couple of questions: What has the government done to achieve this? Does this have a serious impact in the country’s people and economy? Does this mean it is the time to invest in Chile? And here we are to bring you the answers.
The digital hub of Latin-America
That is the title Chile’s government is truly aspiring to, and with that aim, it has been working on getting the regulation and infrastructure needed done. For instance, it is currently developing a National Artificial Intelligence Policy that will regulate its use and development. It is also a key stakeholder in the Transpacific Cable project, and it is preparing the National Optical Fiber and Southern Optical Fiber network projects, which will connect the country from north to south.
The impact this could have in the country’s people and economy is not just a mere objective, it is a reality. There are more than 15 data centers in the country and a portfolio of projects in the sector that includes more than 20 initiatives for over US$3,000 million. And here are some examples:
- Huawei has announced the construction of a second data center in the country.
- Oracle is planning to open the Chile Cloud Region.
- And Microsoft has announced it largest investment in the country in the last 28 years: a program called Transforma Chile #ReactivaciónDigital to encourage the country’s digital growth, with initiatives that will generate USD 11.300 million in income for the country and create 51.000 jobs.
And that is why the International Data Corporation estimates that by 2024, the trend of investment in cloud infrastructure as a service (IaaS) will rise by 41%.
Now, does this mean it is time to invest in technology in Chile? We will let the country’s Economy Minister Lucas Palacios answer for us: “(…) Our country needs investment that focuses on technology, innovation and the sophistication of human capital that will make us more competitive in the region and the world. Chile is a country that offers companies, operators, service providers and technology firms a solid platform for the growing digital economy. This is the direction that we are looking toward for the country’s future development (…)”.
But, if you are still not convinced of the opportunity, there is another option: clean energy.
The fuel of the future
Better known as green hydrogen, it is the alternative to fossil fuels we have been waiting for.
The government has launched the National Strategy for the Promotion of Green Hydrogen, aimed at making of Chile the world’s most efficient producer and to get to the top 3 largest exporters by 2040. With such policy, the government is expecting to generate US$200,000 million in investment over the next 20 years, to create 100.000 jobs, and to transform Chile into a global center for green hydrogen.
An empowered industry
Besides those being the most relevant industries of the future, Chile has set the basis for every industry to invest in the country. Take Michelin for example, which is planning to invest USD 30 million in a tire recycling plant and generate 1000 jobs under the inspiration of the EPR LAW (a law relative to recycling and the extended responsibility of producers); or Bimbo Group that will develop a distribution center and a new production plant. Or we can take a look at Mercado Libre, that has just inaugurated it first distribution center in the country, which envisages an investment of US$100 million over two years, expects to create 5,000 jobs, and help the more than 30,000 companies that offer their products and services through the site.
Now, the first position in the rankings makes great sense, doesn’t it?