The positive impact of “Multilatinas” companies
The Business Council Alliance for Latin America (CEAPI for short), a think tank focused in this region, published a report on the role of the so-called “Multilatinas” companies as a driver of growth and regional integration, but also as a driver of internationalization of the region. Specifically, the report highlights the expansion of this type of company into Spain, which has meant that Latin America as a region become the fourth largest investor in Spain, only behind France, the United States and the United Kingdom.
Key findings of the report are the following:
- “Multilatinas” are good news for Latin America. They are companies with Latin American origin and capital, which have a parent company located in a Latin American country with subsidiaries in different countries in the region and the rest of the world. According to the report, in addition to being an important source of investment and wealth, they represent the creation of a world-class business fabric that uses local supply chains and promotes intra-regional trade. All this, in an environment that can benefit the region following the recent disruptions in global supply chains and the phenomenon known as near-shoring and friend-shoring and considering that the region represents 25% of the world's drinking water, arable land, a major producer of grain and animal protein.
- Spain is a destination for the investments of "Multilatinas". Both because of historical ties and common language, and because Spain offers an excellent opportunity to grow in the European market, and to access other nearby markets that will have a lot of potential in the coming years, such as North Africa. Latin America has positioned itself as the fourth largest investor in Spain behind only France, the United States and the United Kingdom with data from 2020. The “Multilatinas” that are coming to Spain the most are Mexican, followed by Brazilian, Colombian and Argentinean. According to the report, there are already 600 “Multilatinas” from 20 countries in the region in Spain, generating 32,000 direct jobs.
- Multilatinas not only have a positive economic impact for Latin America: According to the report, internationalization will help the region to improve its “soft power”, which is essential to continue attracting investment in the future.