Week 25, 2024 - Latin America

Newsletter
Latin America is rapidly transforming into a major player in the global talent market, driven by a blend of favorable conditions, technological advancements, and a shift towards flexible work arrangements (FWAs). This dynamic region, known for its diverse cultures and burgeoning economies, is setting new standards in the global talent...
Published on
July 12, 2024

"I'm at that age where everything in life becomes a question” Roque Dalton (Salvadoran poet)

MARKETS

June 20, End Of Day

BUSINESS

Future of Work in Latin America: Flexibility & Talent

Latin America is rapidly transforming into a major player in the global talent market, driven by a blend of favorable conditions, technological advancements, and a shift towards flexible work arrangements (FWAs). This dynamic region, known for its diverse cultures and burgeoning economies, is setting new standards in the global talent landscape.

  • Widespread Adoption of FWAs: The COVID-19 pandemic accelerated the adoption of FWAs in Latin America and the Caribbean. Currently, 7 out of 10 companies use some form of FWA, enhancing productivity and worker well-being. Telework and compressed workweeks are likely to remain integral to the future of work in the region.
  • Booming Tech Ecosystem: Cities like Medellín, São Paulo, and Buenos Aires are now tech hubs, attracting global businesses with their innovative startups and dynamic tech talent.
  • Cost and Quality Balance: Latin America offers skilled professionals at competitive rates, making it an attractive destination for North American and European companies.
  • Time Zone Advantage: The region's time zones align closely with North America, facilitating smoother workflows and real-time communication, enhancing team collaboration and productivity.
  • Cultural Compatibility: Latin American professionals easily integrate with Western business values, minimizing misunderstandings and speeding up processes.
  • Rising Language Proficiency: Countries like Argentina, Costa Rica, and Chile are improving their English proficiency, combined with specialized skills, making Latin American talent highly competitive globally.
  • Legislative Changes: The pandemic spurred regulatory changes, with most countries now having telework laws. However, outdated labor regulations need further flexibility to fully embrace new work models.

Fundraising picks of the week

Ubanku: Ubanku is a financial super app designed specifically for the youth. It aims to accelerate users' dreams by offering simple yet effective financial products, with a focus on frictionless scalability and guaranteed low-cost distribution in campuses Get to know the case here.

Mobi: Mobi is transforming the landscape of last-mile delivery. This innovative company has reached a significant milestone by achieving break-even in November 2022. Mobi's impressive seed round funding of $1.38 million, off a $5 million valuation, marks the largest ever for a startup in Bolivia.  Dive deeper into the case here.

Avancargo: a B2B trucking platform that provides carriers and shippers with better availability by connecting supply and demand. Avancargo provides transparent management towards all those involved in the logistics chain. Get to know the case here.

Interested in Latin American business? Subscribe here to get business updates in the verticals that interest you the most.

Dive deeper into other fundraising firms in LatAm here.

CURRENT AFFAIRS

Argentina: Argentina reported a record monthly primary fiscal surplus of $2.57 billion in May, marking the fifth consecutive surplus under President Javier Milei. This aligns with Milei's austerity measures aimed at achieving a "zero deficit" to stabilize the economy. The government’s commitment to fiscal balance addresses inflation, capital controls, and debt issues, improving the country's standing with global creditors and investors.

Mexico: MercadoLibre's fintech arm, Mercado Pago, saw its mobile credit-card readers more than double in adoption over the past year, outpacing traditional bank options. Despite Mexico's reliance on cash, digital payment penetration is accelerating. The company has deployed over 4 million credit-card readers, with growth in the "low triple digits." Mercado Pago plans to apply for a banking license to expand services like savings accounts and commercial loans.

Brazil: Microsoft will purchase 8 million carbon credits from BTG Pactual's forestry arm, marking the largest-ever sale of such credits. The credits, generated by BTG Pactual's forest restoration projects in Latin America, allow companies to offset greenhouse gas emissions to meet climate goals.

FURTHER READING

Check our recently published insights here. Recent post:

Latin America is leveraging blockchain technology to drive significant advancements across various sectors. Nations like Brazil, Mexico, and Argentina are pioneering its use to enhance financial inclusion, secure elections, and improve supply chain management.

Key Areas of Impact:

  • 💸 Decentralized Finance and Financial Inclusion: Blockchain is revolutionizing access to financial services, from DeFi platforms that offer lending and borrowing to providing banking services to the unbanked.
  • 🔗 Supply Chain and 🗳 Secure Voting: Enhancing transparency in supply chains and safeguarding electoral processes to ensure product authenticity and vote integrity.
  • 🏦 Asset Tokenization and 📊 Credit Scoring: Opening investment opportunities through asset tokenization and providing fair credit scoring that includes wider data sets for financial assessments.
  • 🔒 Digital Identity and 📜 Legal Automation: Streamlining bureaucracy with blockchain-based identity verification and automating legal contracts to ensure document authenticity and transaction integrity.

As blockchain continues to evolve, its potential to transform industries and democratize access to technology in Latin America is increasingly evident.

🔍 Read more here.