The shift in user preference towards electronic payment methods, as well as the proliferation of digital products and services in the banking sector, are pushing transactional activity across Latin America into a phase of profound change. In the long run, the region will lead the electronic payments industry in Latin America, as consumers fully embrace digital solutions to manage their financial operations, according to a new report by the global consulting firm.

The annual report “The Future is Anything but Stable”, published by Global Payments at BCG (Boston Consulting Group) and which assesses global industry trends, predicts that Latin America’s use of digital payment methods will grow by an average of 7.9% per year between 2024 and 2029, a rate that is “almost twice as fast as the world average of 4% in the same period.

The figure means that Latin America is well on its way to not just participating but also to dominating key electronic payments industry in Latin America debates and, above all, in charting the future of financial products and services in the age of digitalization.

Electronic Payments Industry in Latin America: Global Analysis and Trends

As a reminder, the global electronic payments sector is estimated to reach revenues of US$2.4 trillion by 2029 but will register an annual decline in growth, settling at 4%. The trend of year-over-year growth deceleration is taking place even as the industry is undergoing a historic reconfiguration under the impact of the implementation of frontier technologies and business model reinvention, with a view to fully meeting customer expectations.

Artificial intelligence, as well as other digital assets, solutions, and services are key here, such as agentic artificial intelligence (AI), which the BCG Global Payments report recognizes as one of the main tools for reinventing how people and businesses buy, sell, borrow and lend money in the years to come, especially in the retail sector, along with digital currencies and next-generation fintech business models.

In fact, agentic AI is expected to change the rules of the game for e-commerce and consumer transactional behavior in particular. For those unaware, an agentic AI system is an AI that can achieve a goal with limited or no supervision. In short, an autonomous, intelligent system, similar to a human agent. Going back to digital spending and purchasing activity, the study forecasts that agentic AI may generate more than one trillion dollars in e-commerce revenues globally. In the United States, 81% of surveyed consumers say they will use an agentic AI tool to make online purchases, a clear indication that, in the coming years, this tool will be able to influence over half of all online transactions, according to the report.

Latin America: Transactional Activity Expansion

Latin America, meanwhile, is expected to ride this wave, taking the lead in electronic payments industry in Latin America thanks to regional companies’ abilities to adapt to these and other digital trends and turn them into tangible value for all customers in this increasingly competitive, highly digitalized segment. In this regard, the report says the new digital payment solutions will continue to grow in the region at a “solid” pace and are expected to move at an estimated growth rate of 8% per year until 2029.

“The evolution of new electronic payments in Latin America is set to continue positively in the coming years”, states Gonzalo Troncoso, BCG Managing Director and Partner and co-leader of the Global Payments practice. To some extent, the region will be outpacing the rest of the world in this respect, since the adoption rate for electronic payment methods there is set to reach 7.9% in the coming years against a global average of 4%: what the report calls a “very robust expansion”.

Specifically, the increase in e-payments adoption can be explained by such factors as widespread mobile technology adoption for processing transactions, enabling the development of digital wallets and P2P payments. Then, some government policy changes and regulations are intended to “facilitate” digital financial services, and then, the region’s fintech firms, renowned for their agility and creativity, are providing new payment options that are fast, secure, and easy to use.

Latin America, in short, is quickly becoming a regional leader in fintech activity and generating significant volumes of investment for e-payments industry in Latin America products, solutions, services, and companies.

Electronic Payments Industry in Latin America: National Trends

In fact, at the country level, one may highlight the example of the Dominican Republic, where the process of implementing and adopting electronic payment systems is advancing at a significant pace. The initiatives of the BC (Central Bank) to upgrade and reinforce the country’s digital finance ecosystem are key here. Consumers are being encouraged to fully embrace digital channels for their banking operations, to the detriment of more traditional financial channels. At the moment, more and more Dominican bank clients make use of electronic channels to:

• Process transfers
• Pay for services, as well as goods and other purchases
• Withdraw and deposit money at ATMs
• Buy goods and services at physical or virtual POS

The BC’s statistical evidence of how things are rapidly changing in the retail payments segment shows that, between 2008 and 2021, the volume of electronic payments recorded a spectacular increase of 503.5%, while the use of checks plummeted by -33.7%.

To be more specific, in 2008 there were 76.5 million electronic payments, compared to only 32.0 million checks, while by 2021 there were 462.0 million electronic payments and 21.2 million checks.

Market share data in that same time interval is also very revealing, for in 2008 the volume of electronic payments represented 70.5% of total operations, while in 2021 this figure had grown to 95.6% while only 4.4% of all transactions were by check. Electronic transactions, in short, have not just seen an increase in their numbers but are now considered to have reached maturity in the Dominican market.

Dominican consumers are said to be increasingly likely to use their bank accounts for retail payments, whether through the use of debit and credit cards at the POS, ATMs, or online. Financial technology companies (fintechs) have been a leading force behind this transformation. Payment fintechs in particular have grown by 23% a year and accounted for US$176 billion in revenues in 2024 alone. In 25 years, more than US$135 billion of equity capital has been raised by these businesses.

Payment fintechs account for almost half (45%) of all fintech revenues, while the top performers have grown three times faster than incumbent banks. This success is partly due to the fact that fintechs have focused on specific opportunities, and on investing and innovating rapidly to meet rapidly changing consumer expectations.

These forces put increased pressure on companies that are not active in the fintech space and which have not adjusted their business models to keep pace with market evolution. Companies and other financial institutions are increasingly compelled to use cutting-edge technology to keep up with the e-payments industry in Latin America growth and remain competitive.

AI Agents and E-commerce: The Future of E-commerce in Latin America

BCG’s report also underlines the agentic AI’s potential to completely reinvent e-commerce in Latin America. An agentic AI system is capable of using machine learning techniques to achieve a given objective with only a small amount of supervision or guidance, operating, so to speak, automatically and independently, in a manner very similar to the work of a human agent.

In terms of how it could have an impact on online buying activity, for example, the BCG report anticipates it will be used to provide product and service recommendations to consumers on the basis of previous purchases and use data, to automate non-optional purchases and transactions, and to increase the overall efficiency of the online shopping experience.

Agentic AI is also being used by a growing number of online merchants, as well as banks and other retail financial service providers, to decrease friction in the buying and checkout process, reduce the costs associated with online shopping, and increase fraud prevention and security.

As such, it is estimated that within the near future, AI agents will have the capacity to influence over half of all online sales. In short, this tool’s potential to fully personalize the customer experience and customize retail banking services according to their purchasing history and current transactional behavior.

Future Scenarios in the Electronic Payments Industry in Latin America

Summarizing and looking to the future, the electronic payments industry in Latin America will continue to grow at a rate well above the world average, at least for the next decade.

The rate of growth will be greater in the following cases:

• Fintech companies offering new services and solutions to financial sector customers
• SMEs and other companies which engage in digital finance, thus offering their services through mobile and other digital payment channels
• Agencies and central governments encouraging their citizens to adopt these types of digital financial solutions and using payments as a policy tool.
• Firms and investors, to be on the winning side of this digital growth, must therefore keep their eyes open and make sure to leverage these and other technological tools to remain relevant and competitive, and adapt business models and strategies to keep in line with customers’ preferences and needs.

In conclusion, companies that remain digitally stagnant risk not being left behind and losing market share and revenues to those that will incorporate these digital solutions into their operational model and set of activities. As a result, we can say that Latin America’s electronic payments industry in Latin America is growing and will continue to do so on an accelerated trajectory for at least another decade.

Mexico stands at a pivotal moment in its industrial development, aiming to significantly increase its participation in the global semiconductor supply chain. The country’s strategic location, trade agreements, and highly skilled workforce position it as a potential hub for semiconductor manufacturing and advanced electronics. However, as the Undersecretary of Industry and Commerce of the Ministry of Economy (SE), Vidal Llerenas, emphasized, achieving this goal requires not only leveraging existing strengths but also addressing structural weaknesses that have limited domestic industrial integration.

During the inauguration of Chapter 5 of the Mexico–U.S. Semiconductor Forum, Llerenas presented Plan México, a comprehensive strategy designed to enhance infrastructure, financing, talent development, and strategic sector growth. The plan seeks to integrate Mexico more firmly into the global semiconductor supply chain while simultaneously diversifying industrial development and increasing domestic content in high-value exports.

Diversifying Industrial Development Beyond Traditional Hubs

Historically, Mexico’s advanced manufacturing clusters have been concentrated in cities such as Guadalajara and Tijuana. These regions have become renowned for electronics and information technology manufacturing, but relying heavily on a few hubs creates vulnerabilities and limits broader economic development.

Llerenas highlighted that Mexico must expand these value chains to other regions, ensuring that more parts of the country are connected to complex production ecosystems. “We want regional development to reach more parts of the country, so that more locations are connected to these complex value chains,” he explained. By distributing investment and infrastructure more evenly across the nation, Mexico can build resilience, reduce regional disparities, and strengthen its position in the global semiconductor supply chain.

Addressing Low Domestic Content

One of the country’s most pressing structural challenges is its low domestic content in exports. Despite Mexico being one of the world’s most sophisticated exporting economies, much of its high-value output relies on imported inputs, including chemicals, plastics, and metal components essential for semiconductor manufacturing.

This dependence on foreign inputs limits Mexico’s ability to produce higher-value-added products and fully capitalize on the opportunities presented by the global semiconductor industry. To overcome this, Plan México emphasizes strengthening domestic industries such as chemicals, metalworking, and plastics. By building local capabilities in these sectors, Mexico can increase the domestic content of its exports, reduce vulnerabilities from supply chain disruptions, and enhance its strategic role in North American manufacturing.

A Three-Dimensional Approach: Horizontal, Regional, and Vertical

Plan México is structured along three complementary dimensions: horizontal, regional, and vertical.

The horizontal dimension focuses on improving investment conditions, including the development of a functional financial system, modern infrastructure, and streamlined regulatory processes. This creates a conducive environment for domestic and foreign investors alike.

The regional dimension addresses the uneven concentration of industrial clusters, as discussed earlier, aiming to expand value chains to new regions and ensure nationwide integration into global production networks.

The vertical dimension targets both traditional and emerging sectors. While Mexico has a long history of exporting textiles, footwear, and toys, the future lies in high-value industries such as medical devices, pharmaceuticals, electronics, and semiconductors. By strengthening vertical integration in these sectors, Mexico can produce more sophisticated components domestically, creating a robust ecosystem that supports innovation and higher-value manufacturing.

Enhancing Regional Integration Within North America

Llerenas emphasized that Mexico’s success in the semiconductor industry is closely tied to regional integration under the USMCA framework. The concept of “Made in Mexico” should be understood in a trinational context, reflecting the interdependence of supply chains across Mexico, the United States, and Canada.

However, the Undersecretary warned that this integration is not sustainable without a strong domestic productive base. Dependence on imported inputs reduces the effectiveness of regional supply chains and limits the economic benefits that Mexico can capture. Strengthening domestic production capabilities is essential to ensure that Mexico contributes significantly to the global semiconductor supply chain, rather than merely serving as an assembly hub dependent on foreign components.

Leveraging a Skilled Workforce

One of Mexico’s most significant competitive advantages is its industrial workforce. The country boasts a pool of skilled labor capable of operating complex manufacturing processes, from semiconductor fabrication to electronics assembly.

Llerenas highlighted several initiatives to maintain and enhance this workforce, including dual education programs, micro-credential initiatives, and specialized technical training. These programs aim to ensure that Mexican workers are prepared for the demands of high-tech manufacturing, making the country a more attractive destination for foreign investment in semiconductors and related industries.

“This country is fundamental not only because of its location and trade agreements but also because of our ability to participate in this race… our greatest competitive advantage at this moment is an industrial workforce of enormous capacity,” Llerenas stated. Indeed, a skilled workforce not only improves productivity but also positions Mexico as a reliable partner in the global semiconductor supply chain, capable of delivering high-quality outputs in a competitive timeframe.

Meeting the Challenge of Asia

Mexico’s ambitions in semiconductors are inevitably compared with Asia, the global epicenter of semiconductor production. Countries like Taiwan, South Korea, and China dominate the industry due to advanced manufacturing technologies, robust domestic ecosystems, and significant government support.

To compete, Mexico cannot rely solely on tariffs or its geostrategic location. Instead, it must create conditions for industrial efficiency, technological innovation, and high domestic content. By investing in upstream industries, modernizing production facilities, and cultivating a workforce trained for high-tech manufacturing, Mexico can position itself as a competitive alternative in the global semiconductor supply chain.

Infrastructure and Strategic Investments

Plan México also highlights the critical role of infrastructure in enabling industrial competitiveness. Modernized transportation networks, advanced industrial parks, reliable energy supply, and logistics hubs are essential for reducing production costs and improving efficiency. Investments in these areas not only support domestic manufacturing but also attract multinational corporations seeking to diversify supply chains away from Asia.

Furthermore, strategic investments in chemicals, electronics, and metals industries are expected to enhance domestic content and enable Mexico to participate more fully in the higher-value segments of the semiconductor market. By aligning these investments with workforce development programs and regional expansion strategies, Mexico aims to create a self-reinforcing ecosystem capable of long-term growth.

Outlook for Mexico in the Semiconductor Industry

Mexico faces both a historic opportunity and a significant challenge. With careful planning, targeted investments, and effective workforce development, the country can deepen its integration into the global semiconductor supply chain and secure a more strategic role in North American and global manufacturing networks.

By increasing domestic content, diversifying industrial development, and expanding regional value chains, Mexico can transform from a participant in assembly and low-value production to a producer of high-tech, high-value-added semiconductor components. This shift will not only strengthen Mexico’s industrial base but also ensure that its economy captures a larger share of the economic benefits of global trade in advanced manufacturing.

In conclusion, Mexico’s strategy to strengthen its position in the semiconductor industry is multidimensional, involving infrastructure development, regional diversification, domestic content enhancement, and workforce training. With sustained commitment and strategic investments, Mexico has the potential to emerge as a key player in the global semiconductor supply chain, competing effectively with Asia and contributing significantly to regional and global industrial networks

Costa Rica has launched the first-ever Costa Rican tourism guide. This guide is a strategic tool for positioning the country as a global leader in sustainable tourism, attracting responsible investment and generating inclusive development in the sector, taking advantage of its competitive advantages. Costa Rica’s first-ever tourism investment guide is being launched with the aim of establishing itself as the preferred destination for sustainable tourism investments that also generate economic growth and jobs.

The guide’s launch was celebrated as part of two significant anniversaries. First, World Tourism Day was commemorated, and second, Costa Rica Tourism Institute (ICT) celebrated 70 years of history, coinciding with the presentation of the “Tourism Doing Business – Investing in Costa Rica” guide, which is a key tool for strengthening tourism investment processes in Costa Rica and the industry’s competitiveness.

The Costa Rican tourism guide is the result of a collaboration between the United Nations World Tourism Organization (UNWTO), the Costa Rican Tourism Institute (ICT), the Costa Rican Foreign Trade Promotion Agency (PROCOMER), and the Development Bank of Latin America and the Caribbean (CAF).

Offering investors a strategic vision

The Costa Rican tourism guide is a strategic tool that provides investors with information on the general context for tourism investment in the country. The guide highlights the macroeconomic conditions, the competitiveness of the destination, and its comparative advantages over other countries. In addition, specific investment opportunities in different sectors are identified, such as hotels and resorts, tourism infrastructure, complementary services, and sustainable tourism projects.

Natalia Bayona, Executive Director of the United Nations World Tourism Organization (UNWTO), shared:

“Costa Rica is already a well-consolidated tourist destination. Its stability, sustainability leadership, and robust infrastructure allow investments to be transformed into high-value projects.”

The Costa Rican Minister of Tourism, William Rodríguez, also commented on the importance of this strategic tool and its impact on the national tourism industry:

“This Investment Guide represents a key step in our national strategy to attract responsible capital and consolidates Costa Rica as an ideal destination for those investors who are committed to sustainable development”.

Human talent is a fundamental pillar

The Costa Rican tourism guide is a fundamental tool that positions the country’s human talent as one of its strengths and most recognized competitive advantages. Mónica Umaña, Manager of Foreign Direct Investment Attraction at PROCOMER, stated:

“The guide highlights one of our country’s most recognized strengths: the quality of our talent. PROCOMER continues to strengthen initiatives that promote specialized human capital, aligned with incentives for companies in the tourism sector.”

Sustainability as one of Costa Rica’s key assets

The Costa Rican tourism guide also highlights the main strength and one of the most recognized competitive advantages of the country, sustainability. Óscar Rueda García, Director of Tourism at CAF, declared:

“Costa Rica has been a paradigm of sustainable tourism long before it became a global trend. This guide arrives at a critical moment to stimulate new developments while maintaining our commitment to being a sanctuary for nature-focused tourism.”

Five reasons to invest in Costa Rica

The Costa Rican tourism guide presents five main reasons to invest in the country, which are fundamental to understanding its positioning as one of the most competitive destinations in the region and globally, as they allow investors to position their resources in places where they generate value for their own benefit and for the destination in the long term.

In addition, this strategic guide offers six chapters that provide a clear picture of the Costa Rican market. The first of them refers to the macroeconomic context, which analyzes the national and regional environment, taking into account the strategic weight that tourism represents for Costa Rica. In this way, the investor can have an approximate view of tourism’s contribution to GDP, generation of direct and indirect employment, foreign exchange income, and the importance of tourism in the country’s economy.

The second chapter presents the general legal and regulatory framework for investment. The tax system is also one of the sections that investors will find in this guide, as it is an important point to take into account in the decision-making process. This publication also includes, among other aspects, an analysis of the main requirements for the creation of new legal entities, as well as regulations that are directly related to the tourist offer, all of which will be of great importance for the entire process of entry into the market.

On the other hand, the investment panorama in Costa Rica shows the behavior of foreign direct investment in the country, focusing specifically on the main trends in the last decade, the main sources of investment and the most relevant investment areas in the tourism sector, as well as opportunities with greater growth potential for those looking for long-term profitability.

Costa Rica’s tourism competitiveness is based on several factors such as infrastructure and connectivity as well as diversity of its tourism offer. This is how the country’s assets such as eco-lodges, natural areas, adventure tourism, gastronomy and wildlife tours, rural tourism, and others are demonstrated. With this information, it is also possible to determine the comparative advantages that Costa Rica has with respect to other destinations.

The financing alternatives with CAF refers to information on the financing and technical assistance mechanisms that CAF has and that are currently available for the execution of sustainable tourism projects.

Finally, the public sector investment initiatives include investments and investment projects of the current government, so the private sector is given an overview of infrastructure improvements such as docks, tourist police stations, and accessible trails. This information also serves to identify opportunities for the private sector to carry out projects and those in which public-private partnerships can be designed.

The Costa Rican tourism guide can be consulted free of charge in digital format and is available on the official websites of ICT, PROCOMER, UNWTO and CAF.

Latin America has further established itself as a region with considerable economic opportunities. It has seen a proliferation of natural resources, geographic advantages, and in recent years, an increasingly diverse manufacturing and service industries. Costa Rica’s rapid growth in sustainable technology, Chile’s rise as a new fintech hub, and Colombia’s expansion in e-commerce and logistics are only a few examples of how the region has consolidated itself as a new frontier for international investment and development. However, there are also significant structural issues that present a drag on the growth potential for Latin America. Informality, low wages, underemployment, and bureaucratic hurdles remain part of the structural economic factors for many countries in the region. These factors continue to challenge economic growth in Latin America, especially when it comes to creating inclusive and formal employment.

Per the Inter-American Development Bank (IDB), while 70% of the working-age population of Latin America is already engaged in employment, most of these are informal jobs with no social protection, insufficient wages, and limited opportunity for professional growth. This limits the potential for full, shared, and sustainable development. In this context, foreign direct investment (FDI) is playing a key role to accelerate change in the region. FDI brings much-needed capital, creates formal jobs and hiring, fosters skill development and technology transfer, and drives overall productivity growth and competitiveness in key sectors across the region, such as renewable energy, manufacturing, agriculture, and digital services. Indeed, strategic FDI is increasingly being recognized as a critical lever for economic growth in Latin America, supporting innovation and modernizing industrial sectors.

FDI in Latin America: Regional Trends

FDI flows to Latin America have experienced ups and downs in recent years. A combination of global economic uncertainty, political transition, and commodity price fluctuations have driven considerable change across the region. Mauve Group analyzed FDI data for 20 Latin American markets, finding a 9% contraction in total FDI inflows in 2023, despite high growth recorded by some of the region’s largest economies.

Mexico remains one of the most attractive Latin American destinations for foreign investment. The country has reported an influx of USD 35.74 billion in foreign capital between January and September 2024, representing a 8.5% increase in FDI compared to the same period last year. The rise in FDI was driven by increased nearshoring to Mexico, especially in automotive manufacturing, electronics, and renewable energy. Both U.S. and Asian firms have been expanding or setting up new operations in the country, focusing primarily on northern states like Nuevo Leon and Chihuahua for their proximity to the North American market and competitive labor costs.

Other markets have also experienced high growth in FDI flows, according to Latinometrics data. Argentina grew by 57% while Costa Rica saw a 28% increase in FDI, followed by Chile with 19%. Argentina’s growth was driven by investments in lithium extraction, agriculture, and energy projects; Costa Rica has seen a sharp increase in foreign capital inflow with its leadership in sustainable manufacturing and life sciences, while Chile’s technology, renewable energy, and banking sectors have led its impressive growth. These trends demonstrate that FDI continues to serve as a cornerstone for economic growth in Latin America, reinforcing sectors with high potential for innovation and long-term competitiveness.

FDI in Latin America: Market Opportunities

Jaime Bustamante, Regional Director of Business Development at Mauve Group, a Latin American employer-of-record (EOR) and Global Employment Organization (GEO), spoke on these trends and their impact on development in the region. “FDI not only brings in foreign capital, but it also accelerates skill development and innovation,” Jaime Bustamante said. “It creates jobs, stimulates industries, and trains local workers with the skills they need to fill in-demand positions. In that way, it creates a virtuous cycle of productivity and resilience that can help foster long-term and sustainable growth in Latin America.”

Foreign firms, however, still face significant administrative and regulatory challenges when investing in Latin America. One of the most complex issues that still exists for foreign companies entering or expanding in Latin American markets is the sheer complexity of regulatory and tax systems. For example, in countries such as Mexico or Brazil, the administrative burden of navigating labor and tax compliance is often compounded for businesses unfamiliar with local frameworks. Mexico’s corporate tax season, for example, begins on March 31 of every year, while Brazil’s tax season starts on March 17. In both countries, business expansion is often stymied by a lack of support in managing compliance with myriad obligations, such as payroll, human resources, and rigid labor codes and stipulations. This can create a bottleneck of bureaucracy that slows business development.

FDI in Latin America: Regulatory Hurdles

Foreign investors are also sometimes discouraged by abrupt policy shifts and protectionist agendas in certain Latin American countries. Governments undergoing transitions or reform sometimes change tax breaks, minimum wages, or labor stipulations that directly impact foreign investment. This unpredictability underscores the need for stable and transparent regulatory policies that will incentivize long-term FDI.

In this context, employer-of-record (EOR) solutions and global employment organizations (GEO) have become a key differentiator. Mauve Group and similar platforms are helping foreign businesses across the region manage time-intensive and laborious HR and compliance processes, ensuring seamless and localized onboarding with significantly less bureaucracy, risk, and legal exposure. The EOR model allows investors to navigate regulatory frameworks with the support of local experts who can help businesses operate within the rule of law, which is particularly critical in Latin America, where missteps can incur high costs.

FDI and Global Mobility: Latin America

A third key dimension of FDI and its impact on growth in Latin America is global mobility. Cross-border employment and talent exchange are vital aspects of knowledge transfer and development. However, there are also significant gaps between companies and the foreign workers they employ in Latin America.

According to a 2024 study from Mauve Group, 90.8% of expatriate employees in the three countries surveyed, including Brazil, Mexico, and Colombia, reported having had little to no knowledge of labor regulations before their relocation to Latin America. 69.3% also reported feeling “not at all prepared” to navigate administrative processes, including, but not limited to, visa applications, tax compliance, or employee benefits. These findings point to a clear gap in knowledge and preparation for expatriate workers before assignment in Latin America and the importance of on-the-ground HR support.

Latin America is also acutely aware of the need to attract and retain skilled professionals, and governments and private sectors across the region are working to improve their relative advantage in this area. For example, Brazil has been developing its “Startup Visa” for foreign entrepreneurs and innovators, and Chile has unveiled a “Tech Visa” to attract high-tech talent from abroad. Countries are not just competing for capital but also for human capital with these investments in recruitment and onboarding for key industries such as artificial intelligence, clean technology, life sciences, and fintech. These resources are vital for both sustainable innovation and long-term competitiveness in the region.

FDI Success Stories

The potential for FDI to positively impact economic growth in Latin America is evident in the region’s success stories. The deepening relationship between Brazil and China is one example of a growing symbiosis. Trade and investment between Brazil and China are on the rise, with China’s consumption of Brazil’s primary products helping to drive increased demand for Brazilian agribusiness and mining exports. Brazil’s processing and export capabilities are also growing, and Chinese companies are investing in Brazil’s clean energy and automotive manufacturing.

Costa Rica, as mentioned earlier, is another compelling case study for FDI and its sustainable development potential in Latin America. FDI in sustainable technology and related manufacturing is helping position the country as a new global leader in eco-friendly business. Major firms in medical devices, biotechnology, and renewable energy have been attracted by Costa Rica’s reputation for political stability, well-trained workforce, and institutional transparency. This provides a model not just for FDI in Latin America, but one that also aligns with more sustainable, longer-term development plans.

Colombia’s government reforms and successful security measures have opened the door for investment in logistics and transportation. Peru, similarly, has been a regional leader in attracting multinational mining and engineering firms. Chile, despite some limitations, has maintained a consistent and open environment that has made it one of the region’s most attractive destinations, aided by its growing digital ecosystem and services.

The Future of FDI

As global supply chains are reconfigured, nearshoring will remain a critical factor that will determine how and where long-term investors decide to commit capital. Latin America, especially Mexico, Central America, and northern South America, will likely play a key role in the re-shoring and nearshoring of production and supply chains away from Asia. At the same time, Latin American countries must address the institutional and regulatory inefficiencies that have plagued much of the region for decades. Governments must improve the rule of law, reduce bureaucracy, and streamline processes while also making real investments in education and workforce development to ensure that people have the skills they need to support further growth. These are complex goals, however, which are not easily achieved, especially as it takes many years to train a capable workforce.

Sustainable investment, in particular, is an area of focus. Latin America must do more to promote FDI that creates a circular economy around renewable energy, clean technologies, and other eco-friendly industries, while also boosting inclusivity and participation. For example, public-private partnerships (PPP) can help bridge infrastructure and digital gaps, and developing a national brand to attract green investment and digital innovation can help countries like Panama and Uruguay reduce the gap with their neighbors in other areas of economic growth.

Conclusion

Foreign direct investment (FDI) is an essential pillar for sustainable and inclusive economic growth in Latin America. FDI creates formal jobs, stimulates local industry, transfers skills and technology, and connects Latin American economies to global value chains and trade. Despite existing regulatory challenges and structural issues, there are reasons to be optimistic about FDI’s long-term outlook. Latin America is increasing diversification in trade, production, and investment, especially in regards to growing partnerships with China. The region’s future trajectory is bright and will be highly influenced by external factors such as nearshoring as a global economic trend. The most effective strategy to mitigate downside risk and boost the attractiveness of the region in the medium to long term will be to pursue greater transparency, simpler regulations, and investments in human capital to sustain economic growth in Latin America over the coming decades.

The Australian company Ausenco bets on Peru as it strengthens its long-term commitment to expanding its presence and operations in the country. Operating in the Peruvian market for over 17 years, Ausenco aims to position itself as a regional reference for mining engineering and consulting services in South America. This statement was made by Leonardo Peña, Vice President of Minerals and Metals for the Peru office, as the company announces its plans for growth over the next two to three years. With a clear focus on sustainable mining, digital transformation, and innovative engineering solutions, Ausenco Peru has set an ambitious goal of achieving 30% growth by the end of 2025, responding to the increasing demand from the industry.

Ausenco’s Global Background and Presence in Peru

Ausenco is a Brisbane-based company that offers comprehensive consulting and engineering services to the mining, metals, and related industries. In Peru, the company’s portfolio includes services related to studies, project execution, asset management, and maintenance, covering the entire mining value chain.

“Our work has always been aligned with the market and national development. In nearly two decades, we have participated in significant mining projects such as San Gabriel, Zafranal, Marmato, and Warintza, among others. These projects have strengthened our team and consolidated our reputation for delivering projects characterized by technical excellence and environmental commitment,” said Peña.

Peru as a Strategic Hub for Regional Expansion

Currently, Australian company Ausenco bets on Peru not only as a platform for growth in South America but also as a strategic node in its network of engineering and consulting operations worldwide. As one of the top copper producers globally and with an increasing portfolio of projects in critical minerals, Peru offers an attractive base for the company’s regional expansion plans.

Ausenco’s activities in the country, coordinated from its Lima office, are also part of a regional engineering hub that supports projects in Ecuador, Colombia, and Guatemala, among others, while maintaining close relationships with other offices in the Americas, Australia, and other countries.

Growth Performance and Market Demand

Leonardo Peña, vice president of minerals and metals of Ausenco Peru, detailed that the company has recorded sales growth throughout the first half of 2025. This performance, he said, is both a reflection of an increase in market demand for sustainable engineering solutions and Ausenco’s ability to capture that demand through its proactive approach to anticipate the needs of the sector.

“We have taken advantage of this window of opportunity thanks to our multidisciplinary integration capacity, from the very beginning of the development of a mining project. This allows us to optimize project timelines, reduce risks and ensure alignment with the sustainability objectives of our clients,” he said.

Strong Project Backlog and Long-Term Growth Outlook

The executive highlighted that Ausenco’s growth in Peru is supported by a solid project backlog. This backlog consists of committed contracts with enough work to guarantee billing for several months, in addition to strategic partnerships in copper and critical mineral projects. The company, he said, expects to reach a 30% increase in business volume, year-on-year, by the end of this year and to continue at that growth rate over the next two to three years.

All of these projections, the executive added, are in line with global megatrends towards responsible mining and the decarbonization of industrial processes.

Peru’s Role in Ausenco’s Latin American Portfolio

In regional terms, Peru already represents about 40% of Ausenco’s total portfolio of projects in Latin America. Although Chile remains the region’s leading market in terms of total mining volume, thanks to its long-established copper production, Peña said that Peru has shown a dynamism in recent years that has allowed it to position itself as one of the main poles of sustainable mining in the region.

“We have reached similar operating volumes to those of our Chile office, demonstrating the capacity and commitment of our local team and the growing relevance of Peru as a destination for mining,” he explained.

Building a Regional Hub for Sustainable Engineering

All these aspects, he added, outline how Australian company Ausenco bets on Peru as one of the central pillars of its strategy for its entire Latin American network of operations. The company, he said, has a clear long-term vision of transforming its Lima office into a regional hub that, in addition to serving clients in South America, will position the country as an exporter of engineering excellence to other emerging mining markets worldwide.

Comprehensive Services Across the Mining Value Chain

The opportunities, he added, are extensive and involve all segments of the mining value chain. Ausenco’s service portfolio in Peru includes all the phases of a project—from conceptual and feasibility studies to engineering design, project management, construction, and long-term optimization of assets and facilities.

In this context, the company has been playing a very active role in providing consulting services related to environmental, social, and governance (ESG) issues, helping its mining clients align with international sustainability standards and improve operational efficiency.

Engineering Innovation and ESG Commitment

In this regard, Peña mentioned the design of concentrator plants and the development of mineral transport infrastructure, such as mineral pipelines, as key segments. The implementation of innovative logistics and maintenance solutions to improve the productivity and sustainability of mining operations in Peru would also be an area of growth in the coming years.

Challenges Facing the Peruvian Mining Sector

However, the executive acknowledged that Peru’s mining potential is not without challenges. He noted that the country still faces a need for a more stable and predictable regulatory framework, especially regarding permits for exploration and development of new mining projects. Lengthy approval processes and changing requirements increase uncertainty and costs for investors.

Additionally, the geographical location of many projects in hard-to-reach areas, as well as the increasing demand for mining operations to generate tangible and sustainable benefits for local communities, remain significant challenges for companies like Ausenco.

A Holistic and Stakeholder-Focused Approach

Australian company Ausenco bets on Peru through an integrated and holistic approach that involves not only technical innovation but also active engagement with all stakeholders.

“We apply comprehensive risk analysis from the very first stages of the design of a project, maintain continuous dialogue with the different communities and authorities involved in the project, and design solutions that are tailored to the specific environmental and geographic conditions of each project,” explained Peña.

This approach, he added, not only makes projects more viable and less susceptible to delays and cost overruns but also strengthens the company’s reputation as a trusted and responsible partner in the Peruvian mining industry.

Investment Priorities: Talent, Technology, and Sustainability

As part of its commitment to long-term growth, Ausenco plans to increase investment in Peru over the next few years, focusing on three fundamental areas: talent, technology, and sustainability.

Peña announced that the company is betting on the implementation of AI-based systems to optimize project design and execution, improve predictive maintenance, and enhance decision-making. “These investments, while capital intensive, are critical for us to maintain our competitive edge in an industry that is rapidly changing and transforming worldwide,” he added.

Driving the Energy Transition Through Innovation

“We will also be making investments in the development of innovative engineering solutions that will allow us to promote the energy transition. Finally, we will continue to make investments in the continuous training of our local human talent,” said the executive.

The company plans to position Peru as a regional hub for sustainable engineering and a center of innovation where technology and environmental responsibility go hand in hand.

Peru as a Source of Innovation and Human Capital

This commitment also translates into how Australian company Ausenco bets on Peru not only as a market but as a source of innovation and talent that can drive the transformation of mining worldwide.

Among other actions, the company has acquired cutting-edge tools that allow more precise, efficient, and less polluting engineering processes. This includes dynamic simulation, which allows engineers to anticipate potential operational bottlenecks and optimize designs before the construction phase, reducing costs, risks, and environmental impact.

Advanced Engineering Tools and Digital Transformation

Ausenco has also incorporated next-generation platforms such as SmartPlant 3D, which allows detailed three-dimensional modeling of complex facilities, and EcoSys, an integrated project management system that improves control over capital expenditure (capex) and financial forecasting.

The company has also invested in proprietary solutions such as OutGrind, specialized software that integrates the company’s engineering knowledge for sizing critical equipment in concentrator plants.

Commitment to Sustainability and Community Development

The company’s vision of long-term sustainability for Peru is based on environmental stewardship, community engagement, and shared economic growth. By training Peruvian professionals in the latest digital and green technologies, Australian company Ausenco bets on Peru with the aim of strengthening local human capital and contributing to equitable development.

Its sustainability strategy includes efforts to reduce water consumption and energy use, promote circular-economy practices, and design energy-efficient facilities that support clients’ net-zero goals.

Collaboration with Academia and Human Capital Development

Ausenco is also engaged in collaborative initiatives with local universities and technical institutes to develop a new generation of engineers and technicians with the skills needed for the future of mining. These alliances contribute to strengthening the company’s talent pipeline and Peru’s broader human capital base.

Conclusion: A Long-Term Vision for Sustainable Growth

In sum, Australian company Ausenco bets on Peru as a market of opportunities and a laboratory for sustainable mining. The company’s longstanding presence, technical expertise, and commitment to environmental and social responsibility have positioned it as a key player in the country’s mining future.