Authorities and experts from Ibero-America highlight the significance of companies’ internationalisation in the post-Covid era

Latin American authorities and experts participated yesterday, Tuesday the 26th, in a business meeting organised by ICEX-Invest in Spain, CEOE-CEIB and SEGIB, in collaboration with ANDI, as part of the presentation of the Global Latam Report 2021, which was launched in Madrid last week. A new feature this year, the fourth edition of the report includes the results of the 1st Global LATAM Barometer, prepared in collaboration with the Ibero-American Business Council (CEIB). In this respect, the business organisations that are members of this Council have been heavily involved in this initiative, which has seen the very active participation of their entire network of Latin American companies.

During the event, the speakers agreed on the huge importance of the internationalisation of Latin American companies in the post-Covid era. The event was inaugurated by Spain’s Economic and Trade Advisor in Colombia, Alicia Montalvo, and the Director of Economy and Business at SEGIB, Pablo Adrián Hardy; and the report was presented by the Head of the Latam Desk of ICEX-Invest in Spain, Adrián Blanco, and the Director of Macroeconomics at FEDESARROLLO, Martha Elena Delgado.

Thereafter, the director of La República, Fernando Quijan; the founder and CEO of MELONIN, Andrés Gómez; and the Commercial Manager of ARUS, Mario Loaiza, took part in a discussion under the slogan “Building global companies on the basis of innovation.”

The event concluded with the panel: “How to have more global Latin companies? The cases of Colombia, Spain and the Dominican Republic,” moderated by the Permanent Secretary of CEIB, Narciso Casado, with the participation of the president of ANDI, Bruce Mac Master; the Vice-President of the CEOE, Íñigo Fernández de Mesa; and the President of CEIB and of the Confederación Patronal de la República Dominicana-COPARDOM, William Matías Ramírez.

Global LatAm Report 2021

Concerning the Global Latam Report, Spain’s Economic and Trade Advisor in Colombia, Alicia Montalvo, said that it is a project led by ICEX Invest in Spain in partnership with the Ibero-American General Secretariat-SEGIB. This fourth edition explores the current state of the Latin American economy and companies through their internationalisation. “It is important to highlight the growing dynamism observed in the FDI of Latin American companies, which demonstrates an impressive degree of maturity in the business sector and a commitment to globalisation as a mechanism to increase their competitiveness,” he said. Foreign investment, he added, enables the acquisition of technology and know-how, the improvement of production processes, the upgrading of labour skills and access to new distribution networks. There is no doubt, he said, that foreign investment fosters innovation in companies, increasing their productivity.

Montalvo also pointed out that, in the case of Spain, 9.8% of all inward foreign investment comes from Latin American companies, which goes to show their significant contribution to the Spanish business sector. Spain’s advantages over other countries are its macroeconomic and institutional stability, its access to networks, technology and talent, and the ability to access the European market from Spain. The Advisor also insisted that investment should be seen as a two-way street, since companies that invest abroad achieve gains in terms of innovation, competitiveness and talent attraction that filter back to the country of origin. “Foreign investment processes must also be treated from the point of view of building global value chains,” he said.

In turn, the SEGIB’s head of Economy and Business, Pablo Adrián Hardy, said that the report that has been produced for the last four years with ICEX creates great interest, and he thanked the Ibero-American Business Council-CEIB, with which they collaborated to produce the 1st Global Latam Barometer, and in which very active participation on the part of the entire network of Latin American companies has been apparent, thanks to the business organisations that are members of CEIB.

Adrián reported that the region grew by around 7% in 2021 and is forecast to expand by around 2.2% in 2022. The problem, he explained, is that inter-regional trade stands at 17% and remains very low compared to other regions such as Asia and Europe, where it amounts to 60% or 70%. In this vein, he said that “we must create the right playing field so that companies continue to feel comfortable and confident to continue investing in the region.” Europe, he said, is going to have to strengthen its ties with reliable partners for the future, and Latin America is certainly among them. He also highlighted new opportunities that exist in the field of digital infrastructure, talent, start-up development, venture corporate, impact investment, knowledge-based services, and services based on natural resources, such as green hydrogen. “Ibero-America is a big family, in which proximity predominates, and which has to take advantage of benefits such as nearshoring to become more internationally competitive,” Adrián underlined.

The head of the Latam Desk of ICEX-Invest in Spain, Adrián Blanco, explained that the volume of Latin American investment in Spain recovered in 2021, after the plunge due to the pandemic. 1.044 billion, an increase over the previous year’s figure of 1 billion euros, was recorded. Moreover, in terms of greenfield projects received from the region, the greatest number in the historical series was reached. Spain is thus consolidating its position as the world’s second-largest destination for Latin American investment outside the region, trailing only the United States, and it is the leading gateway for Latin American capital into the European market.

Blanco also stressed the fact that Latin American companies are expected to continue investing heavily in Spain in the coming years because of several factors: the macroeconomic and institutional stability offered by the country, the possibility of building a global brand, and access to technology and knowledge networks. Other aspects that will encourage this trend, he explained, include the relative ease with which large Latin American companies continue to finance their expansion into international markets; the need to achieve scale and the ambition of the region’s technology companies to access the European market; and the progress in modernising the pending bilateral agreements with Chile and Mexico.

How to have more global Latin companies

After this panel/speech, a discussion was held under the theme of “Building global companies from innovation,” which featured the Editor of La República, Fernando Quijan; the founder and CEO of MELONIN, Andrés Gómez; and the Commercial Manager of ARUS, Mario Loaiza, the event concluded with the panel: “How to have more global Latin companies? The cases of Colombia, Spain and the Dominican Republic.” The Permanent Secretary of CEIB, Narciso Casado, moderated the round table, which was attended by the Executive Vice-President of ANDI, Paola Buendía; the Vice-President of the CEOE, Íñigo Fernández de Mesa; and the President of CEIB and of the Confederación Patronal de la República Dominicana-COPARDOM, William Matías Ramírez.

In his role as moderator, the Permanent Secretary of CEIB, Narciso Casado, highlighted the importance of having contributed to the 1st Global LATAM Barometer, the major new feature included in this edition of the report, which reflects the great participation of CEIB’s business organisations and its network of companies. Casado also recalled that “the Council is the voice of business in the region to debate freedom, multilateralism, the protection of business interests, sustainability, equality, training, internationalisation and many other vital issues for the Ibero-American community.”

Casado also added that if there is one thing that unites all the organisations in the CEIB community, it is their commitment to establishing a roadmap, focused on regional integration and the internationalisation of their companies, which must be guided by the new priorities and demands of the current context, in this stage of economic recovery, such as digitalisation, innovation, trade, sustainable investments, the reshaping of global value chains, sustainable, inclusive and accessible tourism, the future of SMEs, education, training, entrepreneurship, management and retention and recycling of talent, among others. Casado and the other speakers on the panel agreed as to the need to continue to support the region, its companies and its citizens, to build “More and Better Ibero-America,” the CEIB’s motto.

With respect to the internationalisation of companies, the Vice-President of CEOE, Íñigo Fernández de Mesa, highlighted some specific measures to promote this process, such as planning subsidies for continuity in the field of internationalisation; boosting the support offered by ICEX to companies and sectoral associations for the internationalisation of our economy; increasing the degree of companies’ internationalisation, improving the sector’s foreign sales capacity especially SMEs; and intensifying international cooperation and the exchange of up-to-date information between EU Member States.

Fernández de Mesa also advocated giving further impetus to the diversification of markets and sectors abroad; promoting the international mobility of workers to reactivate our companies’ international operations; speeding up customs and import procedures through digitalisation; enhancing our Embassies, Consulates and Spanish Missions abroad, as well as the Permanent Delegation of Spain to the European Union, with more human and material resources; and reaching agreements to avoid double taxation and agreements for the Promotion and Reciprocal Protection of Investments (APPRIS).

In turn, the president of CEIB and the Employers’ Confederation of the Dominican Republic-COPARDOM, William Matías Ramírez, focused on the important role business organisations and the private sector play as a whole in Latin America’s recovery. “Organisations have never been so engaged, cohesive and structured as they are now. They played an invaluable role in building and now they are playing an indispensable role in rebuilding the region,” Matias said. Following the impact of the pandemic, the business sector’s role has been and will be critical, he said. Areas such as sustainable development, digitalisation and innovation are increasingly important, as is their implementation through disruptive technologies. “It is also necessary to focus on public-private partnership as the most efficient way to advance and cooperate in designing and implementing public policies and regulatory frameworks. This commitment is also reinforced at the Ibero-American Summits which, according to Matías, is the most important regional integration tool there is. “We are busy preparing for the Ibero-American Business Meeting that will take place in Santo Domingo, Dominican Republic, next year, under the motto “Together for a fair and sustainable Ibero-America,” as part of the 28th Ibero-American Heads of State and Government Summit to be held afterwards,” he said. And for the first time, he stressed, we are working with all the island’s business organisations, together with CEIB and SEGIB to prepare this event.

Finally, Matías referred to some sectors which show great potential for the future, which have emerged as a result of the crisis, such as sustainability, the 2030 agenda and the SDGs; the blue economy, which seeks to maximise the opportunities presented by the oceans and which will offer the region great benefits; the yellow economy, focused on technology and science; the orange economy, focused on transforming ideas into cultural goods and services; and the colour purple, which represents the economic activities that have culture and the identity of the territory at their centre. “These niches are where much of the future of Ibero-America lies,” said Matías.

Paola Buendía, Executive Vice-President of the National Business Association of Colombia-ANDI, said that internationalisation is undoubtedly a key factor in boosting the country’s economic recovery and business competitiveness. This is why, “ as part of our National Strategy 2025, we have prioritised this area as one of the five cornerstones of the Organisation, with a view to positioning Colombia as one of the three most competitive countries in Latin America and significantly increasing its profile at the international level,” Buendía said.

This event concluded the intensive schedule of business meetings held in Bogota with the support of ICEX, which have yielded significant results, such as the creation of the Spain-Colombia Business Council, and the promotion of the internationalisation of companies through the presentation of the Global Latam Report 2021.