Week 23, 2024 - Latin America

"Sooner or later, we will have to recognize that the Earth has rights” - Evo Morales (Former President of Bolivia)

MARKETS

June 6, End Of Day

• Argentina S&P MERVAL Index = 1,503,728.32 (YTD = 61.74%)
• Brazil BOVESPA Index = 122,898.80 (YTD = -8.41%)
• Chile S&P IPSA Chile = 3,625.89 (YTD = 4.57%)
• Colombia MSCI COLCAP = 1,406.47 (YTD = 17.68%)
• Mexico IPC Mexico BMV = 54,477.25 (YTD = -5.07%)
• Peru S&P/BVL Peru = 29,741.49 (YTD = 14.57%)

BUSINESS

Minas Gerais: The Emerging Hub of Innovation and Sustainable Growth in Brazil

Minas Gerais, historically known for its rich mining heritage, is undergoing a remarkable transformation, emerging as a key player in Brazil's economic and technological landscape. Here are the main insights into the region's current state and trends:

Key Insights:

1. Economic and Political Significance:

• Minas Gerais is Brazil's third-largest economy (after S?o Paulo & Rio de Janeiro), with a diverse industrial base that includes agriculture, technology, and manufacturing.
• As a bellwether state, Minas Gerais’ economic and social policies often set the tone for the rest of the country.

2. Technological Renaissance in Belo Horizonte:

• Belo Horizonte (the capital of the state of Minas Gerais) is repositioning itself as a tech hub with initiatives like the establishment of an innovation center in its technology park.
• The city has attracted major companies such as Google and ArcelorMittal, aiming to boost its digital technologies and decarbonization efforts.

3. Lithium Boom in Jequitinhonha Valley:

• The discovery of substantial lithium deposits has transformed Jequitinhonha Valley into a hotspot for mining investments, led by companies like Sigma Lithium.
• This growth is creating jobs and boosting local economies but also brings challenges such as rising living costs and environmental concerns.

4. Sustainable Mining Practices Post-Brumadinho Disaster:

• The 2019 Brumadinho dam disaster prompted stricter regulations and the decommissioning of hazardous tailings dams.
• This shift towards more sustainable mining practices is crucial for restoring public trust and ensuring long-term environmental stewardship.

5. Strategic Importance of Niobium Production:

• Minas Gerais is a global leader in niobium production, essential for high-strength steel and advanced technologies, dominated by Companhia Brasileira de Metalurgia e Minera??o (CBMM).
• The state is exploring new applications for niobium, particularly in electric vehicle batteries, positioning Brazil strategically in the global energy transition.

Fundraising picks of the week

Te Ayudo: Te Ayudo is offering a digital platform that connects users with trusted service providers. Te Ayudo simplifies the process of finding and booking various services via a mobile app. Dive deeper into the case here.

Pura Mente: Pura Mente is a leading wellness and meditation platform, with consistent growth traction (25% QoQ), over 30k paying users, and more than 2 million downloads. Dive deeper into the case here.

LEAF: LEAF is led by co-founders who bring over 20 years of combined experience in technology and climate change. Their platform addresses the growing demand for accessible carbon management solutions. Dive deeper into the case here.

Interested in Latin American startups? Subscribe here to get startups’ monthly progress updates in the verticals that interest you the most.

Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Mexico: Claudia Sheinbaum won a landslide victory to become Mexico's first female president, securing c. 60% of the vote. The ruling coalition may also achieve a supermajority in Congress. Sheinbaum, a former Mexico City mayor and climate scientist, aims to continue the legacy of outgoing President Lopez Obrador, focusing on welfare policies and economic stability. However, she faces challenges such as security issues, economic growth, and managing state oil giant Pemex.

El Salvador: President Nayib Bukele began his second term, pledging to fix the economy after reducing gang violence during his first term. Re-elected with over 80% of the vote, Bukele now faces challenges like poverty and rising unemployment. Despite ambitious projects like Bitcoin City faltering and public debt increasing, he aims to balance economic reforms with maintaining social benefits for the poorest Salvadorans.

Chile: The world's largest digital astronomy camera, with a 3.2-gigapixel resolution, will be installed at the Vera C. Rubin Observatory on Cerro Pachón in the Atacama Desert. This decade-long project will generate 20 terabytes of data per night to study dark energy, dark matter, and potential asteroid collisions with Earth. The observatory is managed by the AURA consortium, taking advantage of Chile's clear skies for astronomical research.

FURTHER READING

?????Paraguay: The Hidden Gem of Latin America

Helmi’s new production explores the overlooked Paraguay and gets a feel of what the future awaits for the “heart” of South America - a country that boasts stability, low taxes, and many opportunities.

Check the trailer and stay tuned for the documentary here: