The Latin American seafood industry is encountering a period of “unprecedented uncertainty” as political transitions in key nations create a challenging environment for businesses, Ignacio Kleiman, managing partner of AntarcticaAdvisors, a corporate finance boutique, told UndercurrentNews.
“Argentina, in the midst of ongoing elections and substantial economic changes, is battling uncertainty spurred by drastic shifts and devaluation,” he added.
“Chile, once celebrated for its stability, now grapples with political unrest due to proposed legal and regulatory changes, making it arduous for businesses to devise long-term investment strategies. Peru is dealing with the ongoing El Nino phenomenon, intensifying pressure on local companies,” he also said.
Meanwhile, Ecuador, “previously stable and operationally growing,” finds itself entangled in political turmoil and rising insecurity, with imminent elections looming.
“The consequence of this political upheaval has created a dilemma for companies equipped with strong financial capabilities. Faced with unpredictable local conditions, many businesses are turning their gaze abroad,” he also toldUndercurrent.
This way, companies from Chile, Peru, or Ecuador are now seriously considering establishing footholds in the US or Europe instead.
“This shift is anticipated to significantly decelerate domestic investments, marking a fundamental change in the industry landscape,” he shared.
Additionally, Kleiman’s observations underscore another trend, with major players showing reduced interest in the Latin American sector despite its vast potential.
“While sporadic large transactions do occur, these investments represent only a fraction of the industry. They serve more as strategic maneuvers than substantial involvements,” he concluded.