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Latin America and the Caribbean Foreign Investment in 2023
By Guy José Bendaña-Guerrero & Asociados
Foreign direct investment (FDI) in Latin America and the Caribbean remained stable in 2023, totalling USD 193 billion, according to the latest World Investment Report from the United Nations Conference on Trade and Development (UNCTAD).
Greenfield FDI, where a company sets up new operations abroad, saw increased announcement values in the region. With global demand growing, commodities and minerals critical for clean energy technologies were the top sector accounting for 23% of the region’s greenfield project value over the past two years. The share is more than twice higher than in other developing regions.
Investment in renewable energy was also prominent, with four of the top ten announced projects (by value) relating to the production of green hydrogen or green ammonia.
In 2023, Latin American and the Caribbean attracted 19 megaprojects valued at more than USD 1 billion each, with 17 of them undertaken by investors outside of the region.
By FDI stock, the United States, Spain, the Kingdom of the Netherlands, and Luxembourg were the top investors.
As in other regions, the number and value of international project finance deals – which is crucial to channelling investment into infrastructure and public services - in Latin America and the Caribbean declined by 30% and 23%, respectively.
The renewable energy sector was hit the hardest, with 40% fewer deals and USD 16 billion less in value compared to 2022.
Cross-border mergers and acquisitions, which typically account for a smaller share of FDI in the region, saw their overall value fall by 26% to USD 11 billion. The information and communications technology and chemicals sectors recorded the highest decrease in transactions, while there was an increase in the basic metals and metal products industry.
In Central America, Mexico accounted for the bulk of foreign investment, showing stable numbers despite lower project values. In the Caribbean (excluding offshore financial centres), overall FDI was up by 6%, with most countries experiencing growth.
Guy José Bendaña-Guerrero & Asociados
GUY JOSE BENDAÑA GUERRERO & ASOCIADOS has a long and prosperous tradition in the field of intellectual property (IP) in Nicaragua, with roots that go back to more than 100 years, resulting on long-term relationships with renowned clients and attorneys worldwide.
The firm has its origins in the law firm Henry Caldera & Henry Caldera-Pallais, founded in 1907 by Mr. Henry Caldera. That same year of 1907, through the efforts of Mr. Caldera, Nicaragua had its first Trademark Law. In the late 1930’s, Mr. Caldera’s oldest son, Dr. Henry Caldera-Pallais, after studying law in Nicaragua, attended the University of Michigan, where he graduated as a Registered U.S. Patent Attorney. Dr. Caldera-Pallais in 1964 was a founding member of the Interamerican Association of Intellectual Property (ASIPI), the first regional intellectual property organization in the Americas. The firm continued to grow during the administration of Dr. Franklin Caldera, son of Dr. Caldera-Pallais, who obtained his doctoral degree in law from the Universidad Centroamericana in 1973.
Since 1985 the current partners, Dr. Guy José Bendaña Guerrero and Mrs. Blanca Aragón de Bendaña, took over the management of the firm. Dr. Bendaña Guerrero, Director of the firm, has distinguished himself as one of the most respected authorities in Central America in the field of intellectual property and law in general, being the author of several books such as “Course of Industrial Property Law”, “Study of the new Laws of Industrial Property” and “New Study of Contracts “, among others. Mrs. Aragón de Bendaña has served as the firm’s general manager and, thanks to her excellent management, the firm has been in constant growth, with a highly qualified staff committed to excellence. Since 1996, partner Julián José Bendaña Aragón joined the firm, and has been standing out as one of the most recognized attorneys in the field of intellectual property.
We have adapted to the constant change of the business world, supporting our clients in finding the most appropriate legal solutions for each moment. The firm distinguishes itself by understanding the needs of its clients, offering personalized service and adding value to its activities.
Nowadays we continue to be the leading firm in Nicaragua in the area of intellectual property, and at the same time, we have been consolidating other areas of service within the civil, commercial and labor fields, as well as litigation and consulting in general. The firm is well positioned to guarantee a pragmatic service that meets the requirements of the most demanding clients.