As we have 2,000 hectares of land and forestry investments based in Uruguay, we keep a close eye on developments in its economy and wanted to show you five new developments which make it a very attractive place to invest.
- Growing export market into China – Uruguay has recently signed a protocol to allow Uruguayan mandarins to be exported into China, targeting the Shanghai market in particular, and they also have an important export of blueberries into this fast developing country.
- Uruguay’s inflation is on target – After years of higher than desired inflation, the country is now in the target window of 3-7%, with the 12-month inflation rate settling at 5.24%
- The country’s green credentials continue to increase – There is a new app to encourage recycling in Uruguay which maps the country’s recycling collection points and hopes to encourage recycling
- Foreign investments continue to be made – In September Malaysia-based Frontier Digital Ventures invested in a 31% stake in the Uruguay founded property portal Infocasas as part of a strategic expansion into the South American online classifieds market Find out more
- New pulp and paper mill plans in progress – UPM are still in negotiations with the Uruguayan government to create a new pulp and paper mill in the country, which would represent an investment of $4 billion in the country. In May they announced they were continuing the negotiations and according to Reuters, if improvements to infrastructure could be made then “Uruguay could be a competitive alternative for addressing UPM’s pulp market opportunities in the 2020s,” Jaakko Sarantola, UPM’s senior vice president for Uruguayan development said in a statement.
Uruguay Offshore Investment is becoming increasingly attractive
These five new developments cement Uruguay as a highly attractive location for offshore investments. For many years it has been known as the Switzerland as South America due to the investor friendly government policies, stability and lack of corruption. It was also described as “The Best Tax Haven you’ve never heard of” by Spears increasing its popularity with high net worth individuals.
We have chosen it as the base for our forestry investment due to this stability and favourable tax regime, but also because of its potential for forestry. It has excellent soil conditions and a soil quality map covering the whole country, which makes it easy to select the best land. The climate and soil is ideal for growing eucalyptus, the two existing pulp mills require large quantities of timber and the government is pro forestry developments as they see a big scope for increase in this area. The land prices have also been rising steadily over recent years, but have seen a brief dip, which means that land can be purchased cost effectively and offer excellent potential for increases, in addition to yields from the timber itself. Find out more about why to invest in Uruguay on our website or contact us to find out more.