25 April 2012
Latin America an uncertain place for investors despite its economic growth.
By: Nicholas Newman
Last week was bad news for foreign investors in Argentina; the question is, will investors in other Latin American
countries face similar uncertainties. Currently, countries such as Brazil, Chile and Colombia are experiencing
rapid growth, which is viewed with envy by many Western governments.
However, like in other prosperous countries throughout the world, the problem of providing secure and affordable,
sustainable power supplies is never-ending. Many countries in the region have opted for Hydro solutions which have
met with opposition from environmentalists; others are looking at traditional solutions such as coal and gas.
However, some countries have begun to take a late interest in exploiting none Hydro renewable technologies such as
solar, geothermal, wave, tidal and wind.
Already we've seen Brazil rapidly turned round its power sector so it is no longer the region’s Nigeria when it
comes to affordable power supplies. In Argentina, we are likely to see the countries desperate need for power to be
solved in part by the recent discovery of shale gas deposits in the north-west of the country.
However, how rapidly it can utilise such discoveries will depend on how all Argentina is viewed by foreign
investors, as a result of the recent partial nationalisation of Spain's Repsol