Part 2: Argentina Investment Series
Argentina was born to be an exporting superpower.
In this three-part series the Emerging Real Estate Digest will examine the investment case for Argentina. The final edition of the series will be published just two days before the consequential election for Argentina’s new President to take place on October 22, 2023. The parts are:
Argentina was born to be an exporting superpower. It has superb geographic attributes and advantages, fertile and arable land, strong economic and cultural ties to Europe, impressive population demographics, and is packed to the gills with the resources the world wants.
Superb Geography and Arable Land
Argentina’s geography gives it immense advantages which are only topped or equaled by a handful of countries such as New Zealand and America. The entire western border of the country is lined with the Andes Mountains range which contains the tallest peaks (i.e., Aconcagua) in the world outside of Asia. This impediment to invasion happens to contain vast mineral wealth, serves as a climate regulator for the fertile lands to the east, and attracts tourists with pockets full of forex.
To the east, the Atlantic Ocean offers protection as well as a 3,100 mile coast line providing sea resources such as the 1 million tons of seafood Argentinean fishermen haul out annually. Brazil is generally discombobulated and in no position to wage a credible offensive making the north also safe.
Three major and navigable rivers (i.e., Uruguay River, Paraguay River, and Parana River) in the region converge into the Rio de la Plata and pass through Argentina before emptying into the Atlantic Ocean. Rivers provide protection, drinking water, electricity and the ability to efficiently transport goods. For example, the Parana River carries 80% of Argentine farm exports. It is dredged deeply enough allowing ocean vessels into the heart of the farming region, giving it an advantage over Brazil and America who rely more heavily on less-efficient trucks and barges to move exports from the fertile interiors to coastal ports.
These rivers snake through populated areas of the Pampas region, the 4th largest contiguous chunk of arable land in the world. It is one of the world’s most naturally fertile zones for crop production and the grazing of cattle and livestock. The west Pampas is perfect for corn and soy. The south Pampas dries out and is ideal for wheat cultivation. The Pampas is far enough south of the equator that it experiences winters which serve as a natural insect suppressant and general sanitizer boosting yields naturally without copious use of pesticides. The Pampas is to South America what the Midwest is to America.
Smack dab in the middle of the Pampas sits Argentina’s economic and political capital, Buenos Aires. The city’s placement on the Rio de la Plata, the widest river in the world at 141 miles (i.e., 220 km), is the ideal location for a port to receive and send goods. Cargo shipments in the core have virtually no choice but to pass through Buenos Aires and face few natural barriers during the journey. It is a powerful natural magnet for commerce and explains why 45% of the population live in the city.
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Argentina is bigger than you might imagine. It is the 8th largest country in the world (2nd in South America) and covers an area of 1.1 million mi2 (i.e., 2.8 million km2). It is 3.5 times larger than Turkey, 7 times the size of Zimbabwe, and if imposed on Europe would stretch from Portugal all the way across Europe and nearly up to Russia’s border with Belarus and Latvia.
Click ???HERE? ?? to read the rest of the newsletter content which includes a breakdown of the export prowess of Argentina's agriculture, animal product, oil and gas, lithium, and mineral sectors.
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