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As the population and economy grow, demand for energy grows ever further and conventional power plants are finding it increasingly difficult to meet energy needs in Argentina. Aiming to enhance energy security and mitigate climate change, renewables are becoming an attractive source of energy to exploit and use by the Government. Argentina’s location with an abundant amount of wind and sunlight makes renewables a highly viable option.

Background: From the year 2016, Argentina has pledged to increase the share of renewables in its energy mix. Therefore, Argentina declared 2017 as the ‘Renewable Energy Year’ and was focused on increasing awareness about the advantages and the importance of sustainability. Since then, the country has diversified its renewable energy sources as planned. According to ‘Renewables Now’, an independent outlet for business news and market intelligence about the global renewable energy industry, the country produced its largest amount of renewable energy where 80.69% corresponded to wind, 8.7% to photovoltaic, 6.57% to bioenergy, and 4.04% to hydropower plants in July 2021.

The current circumstances show that the ICT sector in Argentina still has a lot of room for growth, despite being relatively developed compared to the region. More rural areas are especially in need of further development.

Background: Based on the resources from 2019, the expansion of Argentina’s fiber optics network is estimated to further reach 1200 local areas over the next 2 years. This presents a USD 240 Million in fiber optic deployment and USD 67 Million in fiber optic enabling equipment. The current fiber optic network covers over 32000 km but only 85% is operational, presenting another opportunity for development and growth in the sector. A report from CESSI (the Argentine Chamber of Software and IT Services Companies) shows that 80% of companies in Argentina plan to invest in Information and Communication Technology in 2019.

As digitalization advances and its potential uses increase, governments must include policies and initiatives to harness its potential. The policies put in place by the Government allow Argentina to stay ahead of the curve in the realm of digital technologies.

Background: According to the Organisation for Economic Co-operation and Development (OECD) OUR data Index, various initiatives have been put in place over the years to improve alphabetisation for various uses. These include the programs such as road safety education and programming which encourages innovation in education and digital alphabetisation and offers digital education. The Programa País Digital (Digital nation program) aims to modernise public administration, improve the quality of services, and promote transparency, digital inclusion, and innovation across the country. The Argentine Industry 4.0 Plan was also launched to enhance the industrial sector’s competitiveness through the adoption of digital technologies.

The agro-food sector in Argentina is well supported by a range of factors, from natural resources to its conducive environment (such as the soil and climate) for agriculture. This may be on track to change, however, as land laws and export laws are proving to be counter-productive to the sector and its progress.

Background: Agrofood and agriculture have been a key part of Argentina’s economy, and are predicted to strengthen in the coming years. In 2020, the top 5 exports of the country were agriculture-related, including corn, soybeans and its oil products, along with other food products. This may be due to the rich natural resources of the country supporting agro-food activities.

With abundant opportunities for funding and investment, more organisations and companies will be attracted to do business in Argentina. This will result in increased digital development and a beneficial cycle.

Background: Historically, funding for digitalization projects has been difficult to find and Argentina has often resorted to organisations such as the Inter-American Development Bank (IDB), who recently approved a $100 million loan for a program to promote Internet access and digitization in Argentina. Moreover, a series of funding policies and initiatives launched by the government and other groups have since increased access to funding. These include the launch of ARS37.9 billion Plan Conecta, in a bid to improve broadband coverage, and a USD 18m project aimed at increasing the productivity of teleworking, education, and health by the Financial Fund for the Development of La Plata River Basin (FONPLATA).

Argentina is still heavily reliant on its reserves of fossil fuels for energy and exports. Although renewable sources of energy are being increasingly exploited, they are currently only used as a complement to the overall energy mix of the country.

Background: Argentina does not export any form of renewable energy overseas. However, it does export certain fossil fuels required for energy generation. An example is crude oil from 2019 to 2020, where the country exported -27.4% in comparison to Saudi Arabia´s -32.56 %, Egypt’s -38.3%, or Brunei Darussalam’s -55.4% (these countries are one of the highest exporters of crude oil). Certain initiatives also support this, an example being a planned oil pipeline from Argentina to Chile that will begin operations in 2022.

As one of the main sectors in Argentina, agro-food is seeing increased investments and attention. This makes for a prime opportunity for companies to set up a base here and support the resulting ecosystem.

Background: To further boost the output of the agro-food sector, multiple initiatives have been piloted to spur innovation in the space. This includes the introduction of an AgTech Week by the Agencia Argentina de Inversionesy Comercio Internacional in 2018, aimed at consolidating meetings and conferences related to agro-food. The aftermath of this event sent out experts to learn more about the agtech boom in Argentina and to hear feedback from early adopters of new technology. However, investment in high-profile events, like Silicon Valley Argentina, is shifting from the capital out to the provinces which signals a monumental shift in decision-making power. Agtech in Argentina has the potential to improve agricultural, and ultimately, economic outcomes in the country as rural Argentinian farmers are the key to growing the region’s economy. Also, a plan to invest USD 600m into a microwave imaging satellite to monitor natural disasters and soil moisture is currently underway. This paints a positive picture for the future of the agro-food sector in Argentina.

Argentina’s government is shifting their priority to boosting Argentina’s ICT sector. The government has proposed a new telecom convergence law to increase competition and accelerate technology uptake.

Background: According to the EU-U.S. and Swiss-U.S. Privacy Shield Frameworks, Argentina's government is proposing a new telecom convergence law to strengthen the country's ICT sector by increasing competition and accelerating technology adoption. Over the next four years, the government plans to invest $20 billion in telecommunications. The strategy aims to reduce the cost of internet access by ensuring a total of 29 million Argentines have access to high-quality broadband within two years. As of early 2019, 500 have been connected.

Argentina is the second-largest country in South America, after Brazil, and also has the second-best economy in South America. The country is a member of the Group of 20 (G20), an intergovernmental forum that brings together the world's 20 most powerful economies. Test your knowledge about innovation in Argentina!

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Last updated: 06.05.2022 - 13:28
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