Farmfolio and Investments in Latin America

Many people wonder, why invest in Latin America? It is certainly is a fair question. I asked myself the same thing before embarking on the adventure that is Farmfolio. However, after years of experience, research, and travels, I have no doubt that Latin America presents a unique opportunity to capitalize from emerging market dynamics and an untapped sector, such as organic agriculture. However, it is important to know which sectors and countries in the region are best suited for invest, which is why Farmfolio issues an annual Agricultural Investment Guide that is available to download for free on our website.

Farmfolio and Investments in Latin America

According to the World Bank’s Ease of Doing Business ranking for Latin America, Colombia is the third most favorable country in the region for doing business, after Mexico and Peru. Colombia is followed by Costa Rica, Jamaica, El Salvador, and Panama. Nevertheless, under the categories of Protecting Minority Investors and Getting Credit, Colombia ranks first in all of Latin America. Likewise, Panama ranks first in the region in terms of Getting Electricity as well as second in the categories of Starting a Business and Trading across Borders. Furthermore, within the sub-region of Central America, Panama City ranks as the easiest and most favorable place to do business, followed by San Jose, Costa Rica. Similarly, within Colombia, the city of Bogota ranks third in terms of ease of doing business, Medellin ranks fourth, and Monteria ranks fifth, out of a total of 32 major cities.

At an international level, Colombia is ranked 59 out of 190 countries in terms of ease of doing business, which is right above Turkey. Meanwhile, Panama is ranked 79 out of 190, right below China. Moreover, another key advantage of countries in Latin American is the fact that most of them have regional and international Free Trade Agreements (FTAs). Currently, the United States has FTAs with Mexico and Canada through NAFTA, as well as Chile, Peru, Colombia, Panama, the Dominican Republic, Costa Rica, Nicaragua, Guatemala, El Salvador, and Honduras. Likewise, the European Union has FTAs with both Mexico and Chile. Simultaneously, Latin America has numerous dynamic economic blocs of its own that profit from regional production and exports, as well as advance regional economic interests. One such bloc is the Pacific Alliance, formally constituted in 2012, which currently brings together Mexico, Colombia, Peru, and Chile. Furthermore, Costa Rica and Panama are currently in the process of joining the Pacific Alliance as full members.

This is why, as Farmfolio’s CEO, I want our investors to capitalize from agriculture as a unique, renewable natural resource by ways of a new and innovative asset class. Our Farmshare offerings contribute to the communities where they are settled, while also benefiting their stakeholders and investors. Farmfolio’s investment model is unprecedented when it comes to foreign investment because it provides for sustainable economic development.

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