Investing in Central and South America

Investing in Central and South America

Building an expansive portfolio in today’s global investment economy means being ready and willing to do business where business needs to get done.

What does that mean as 2019 turns into 2020? It’s simple, your best investment opportunities are going to come from the countries with the most extensive economic development, and right now that looks like the northern half of South America and nearby countries in Central America. The reason is simple.

Colombia has invested heavily in creating the infrastructure to make full use of its shoreline on both oceans, and this has made trade in neighboring countries that much more lively, on top of its positive impact on the local economy there.

Opportunities Abound
It doesn’t matter what kind of investment you favor, working in countries that are positioned to take advantage of the widespread economic opportunity in the region means finding opportunities in a wide range of industries.

You can put your money into opening companies to take on the infrastructure contracts and construction involved in this change, open shipping companies to take advantage of the trade, or invest in the support structure for the new economic investments in the area by opening public-facing businesses, and that’s just the range of opportunities for an entrepreneur.

Fund managers and speculative investors will also find a lot of venture capital opportunities, a lively and growing stock market, and increased ease of trade in commodities thanks to all the ongoing development.

Diversify Investments
While Colombia’s infrastructure investments are attractive, don’t miss out on investing in the countries that are benefiting from its penumbra. Peru, Ecuador, Guyana, and many other nations that trade heavily with Colombia and the global markets on other continents are also benefiting from the additional infrastructure in their neighboring country.

Economic activity in the region is up from the increased ease of trade, multiple options for bringing cargo from the Atlantic to the Pacific, and of course, from their own investment in the growth.

Contractors from all over the region are working hard to get the lucrative construction and administration contracts that come during times of investment in growth, and many of them are hungry for investors.

Building a Presence in-Country
To be effective in the financial markets in a country, you need a banking presence there. The right bank will have a variety of useful resources, including:

  • Programs to help provide financing to companies founded by foreign investors
  • Account services that include easy international wire transfers
  • Currency exchange services
  • Electronic banking for access from outside the country
  • Business checking support for local and foreign investors
  • Merchant services

For each country you want to operate in, you’ll need a banking presence. This gives you a local account to use when paying out, whether it’s investment money or vendor payments for your own business.

It also gives you a way to receive money and keep it in country, to manage your cash flow without an excessive number of international wire transfers.

Working with institutions like the Guyana Bank for Trade and Industry Limited, which specializes in providing banking access to international entrepreneurs working in Guyana, means being able to put your money to work efficiently while making it easy to keep your books in order across your entire operation.

Never Underestimate Base-Building
While there are a lot of opportunities in the region and many investors feel like they could be pulled in a dozen directions at once, it’s important to understand how resource building and investment infrastructure work when you’re operating across continents.

You’ll need a regional base of operations of sorts, in addition to in-country banking wherever you have business interests. This provides a larger chain of command structure for managing your different financial projects.

It also gives you an easy way to move money as you need it throughout the region. When you’re considering where to build the core of your investment empire, consider your options carefully, because the boom is likely to pass, but a strong business with a good core concept will continue to flourish long after it settles down.

Your most viable long-term investment is probably where you should emphasize building your base of resources, using its success to hedge against misjudgments and shortfalls as you expand into other areas, or into the same trade in more countries.

While a lot of countries vying for international investors offer great tax incentives to investing, they all still do require you to file the adequate financial documents and make the payments that don’t wind up absorbed by an incentive. If you’re opening a business and not just doing capital investments, that can be a complex bit of administration, so make sure you’re organized as you build your new investments abroad.

Tyrone is a passionate financial literacy advocate. He started this blog on November 2008 when he watched The Secret which talked about Law of Attraction because he wanted to become a millionaire and wanted to know how a millionaire acts. At the age of 26, he achieved his first million. To find out more about him, click here or follow him at Instagram

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