Brazilian Companies Interested in Investing in Argentina Amid President Javier Milei's Tough Reforms
February 17, 2025: Brazilian companies are seeking new investment opportunities in Argentina and cautiously expanding their workforce and stores as President Javier Milei's aggressive economic reforms are helping to stabilize the country's economy after years of instability.
Brazilian Companies Interested in Investing in Argentina Amid President Javier Milei's Tough Reforms
Brazilian Companies Interested in Investing in Argentina Amid President Javier Milei's Tough Reforms
February 17, 2025: Brazilian companies are seeking new investment opportunities in Argentina and cautiously expanding their workforce and stores as President Javier Milei's aggressive economic reforms are helping to stabilize the country's economy after years of instability.
Brazilian companies across various sectors, such as consumer goods, services, oil, and technology, have told Reuters that they are interested in launching new ventures or expanding operations in Argentina, which is currently undergoing an economic restructuring process after a prolonged period of crisis that had previously deterred investment.
Milei's tough austerity measures have helped reduce triple-digit inflation, decrease a deep fiscal deficit, and rebuild reserves, boosting investor confidence. However, the country is still grappling with a recession, and capital controls are creating obstacles for business.
"Argentina is back on the radar," said Rodrigo Stefanini, CEO of Latin American operations at Stefanini Group, a Brazilian technology company. The company's annual sales in Argentina grew by 15% last year, and its workforce expanded by 10%, reaching around 1,500 employees.
Stefanini said that for the first time since entering Argentina in 1996, the company is looking at acquisition targets there, despite the uncertain economic outlook. "You don't want to be the first to arrive because you don't know if the party will be successful. But you also don't want to be the last, because everything might be over by then," Stefanini said.
Brazilian companies, due to their historical ties with Argentina, have regularly participated in the country's economic booms and busts, although some have faced losses. Currently, around 150 major Brazilian companies maintain a presence in Argentina, although some have scaled back their operations over time.
