What are the main business opportunities in LatAm after Covid?

"Every adversity, every failure, every heartache carries with it the seed of an equal or greater benefit." Napoleon Hill

It is unquestionable, that the COVID-19 pandemic has had a significant impact on the global economy, with many industries suffering from the effects of widespread lockdowns and reduced consumer demand. Latin America has been no exception to this, as the region has struggled with the public health crisis and the resulting economic downturn. However, it is not the first time that the world faces such a challenge and if look at it correctly, we will see that a crisis is a unique opportunity to think about the new business order and how it is our responsibility to shift gears and seek ways to grow and collaborate with our region.

Below we will find the main business opportunities available in Latin America post COVID, so that we can use them as a basis to adjust the operations of our existing companies and/or launch new projects:

One of the primary opportunities in Latin America after COVID is in the area of e-commerce. As more consumers have turned to online shopping during the pandemic, there has been a significant increase in demand for e-commerce platforms and solutions. In Latin America, where e-commerce adoption has historically lagged behind other regions, the pandemic has accelerated the growth of the industry. Companies that can provide reliable and efficient e-commerce services in Latin America are well-positioned to benefit from this trend. You can say the same situation applies to other regions in the world, but there is a very potent difference that makes Latin America more attractive, the current #ecommerce penetration is still low, calculated to reach 11.7% at the end of 2022 in comparison with the United States at 20.8% in 2021 and China with an impressive 27.7%.

So, there is a lot of space for growth in Latin America and for value creation, according to Morgan Stanley, The Rise of E-Commerce Ecosystems, 2021, our region is expected to grow by an average of 19% between 2022-2027 way more than the world average at 11%. This supporting data was used by #fintech company https://rayocr.com/ that we are very familiar with, to start operations in Costa Rica, later opened in Colombia and is now about to launch its microcredit business in one of the giants of the region, Mexico. This is an example of how a company that started in Central America can collaborate with the rest of the region by driving business growth to South America and very soon to North America.

Another area of opportunity in Latin America after COVID is in the healthcare sector. The pandemic has highlighted the need for robust #healthcare infrastructure, and Latin America has experienced significant challenges in this area. As governments and healthcare providers work to address these issues, there is potential for growth in areas such as telehealth, medical technology, and pharmaceuticals. We already knew about the profitable industry of Medical Tourism in countries such as Mexico, Costa Rica and Colombia, but currently with the healthcare model shifting towards digitalization, we see the future even brighter for Latin American physicians and the healthcare industry as NorthAmerican patients will have easier access to their services.

Renewable energy is another area of opportunity in Latin America after COVID. The region has abundant natural resources, including solar, wind, and hydroelectric power. As countries work to reduce their reliance on fossil fuels and transition to cleaner sources of energy, there is potential for significant investment in renewable energy infrastructure in Latin America. In order for our region to become the world′s renewable energy powerhouse we need to leverage the power of the private sector in this industry, so that the global capital can invest in the much needed infrastructure to continue to advance in this sector.

Real Estate Investment specially for second homes in highly desirable areas has exploded in many countries of Latin America, along with incentives for #digitalnomads to relocate or work remotely from countries as varied as: Mexico, Guatemala, Honduras, Nicaragua, Costa Rica, Panama, Dominican Republic and Colombia. From our personal knowledge we see the Dominican Republic as the country having the biggest real estate market boom for tourism units in world famous destinations such as Punta Cana in which the sales are unprecedented and the ROI for Residential projects is perhaps the highest of all Latin America.

Finally, the COVID-19 pandemic has highlighted the importance of flexibility and resilience in business models. Latin America has a vibrant entrepreneurial ecosystem, and there is potential for businesses that can adapt to changing circumstances and serve the needs of consumers. This could include innovations in areas such as food delivery, education, and digital entertainment.

In conclusion, while the COVID-19 pandemic has presented significant challenges for Latin America, there are still opportunities for businesses and investors in the region. By focusing on areas such as e-commerce, healthcare, renewable energy, and flexible business models, companies can position themselves to succeed and contribute to the economic recovery of the region. However, we have been able to witness throughout the entire subcontinent, a need for better knowledge about the opportunities available in neighboring countries, we need to make considerable efforts so that important players of Latin America′s business and professional class have a better understanding of the region as a whole and not as individual countries. Lawyers, accountants, administrators, financiers and others need to open their minds and understand that no country is an island and that seeing the region as a whole is the road to enduring development.