Despite Uruguay’s small size and lack of natural resources, the country punches well above its weight within Latin America. President Mujica’s liberal financial and social policies led The Economist to name Uruguay their “Country of the Year 2013.” Uruguay’s strategic location, combined with a well-educated work force and open trade policies, make it an ideal hub for doing business in the region.
Many infrastructure companies do not bother much with Uruguay, preferring instead to concentrate their efforts in the larger, neighboring markets of Brazil and Argentina. However, large infrastructure projects, especially in the maritime sector, are slated for construction in the near- to medium-term.
Uruguay is also a logistics and financial hub for businesses operating in the region. The country’s unique zona libre (free trade zone) allow importers to maintain large quantities of stock in Uruguay without ever passing through customs – “stock in transit” – ideal for just-in-time fulfillment to Brazil and Argentina.
What’s more, Uruguay is facing an energy crisis – the cost of electricity is among the highest in Latin America. Within five years, current hydroelectric production will be operating at maximum capacity. President Mujica has stated publicly that renewable energy sources – solar and wind – are the government’s preferred option to keep the cost of energy affordable.
Conclusion: Uruguay is an excellent financial and logistics hub in the region. The country’s coming energy crisis means it will likely be a world leader in the renewable energy sector. Find our Free Marketing Research here.