Opportunities and challenges of doing business in Argentina today

After the first year of Javier Milei's administration, Sherlock Communications analyzes the global investment opportunities that have opened up in the country following the implementation of key reforms. The most benefited sectors and the local macroeconomic challenges of the future.

One year after Javier Milei took office as President of the Argentine Republic, the country has undergone transformations that represent a challenge, both locally and internationally. In this context, significant opportunities and complex challenges for companies have emerged for 2025. Sherlock Communications will explore key points for global companies to consider when doing business in Argentina.

The Impact of the RIGI Law

One of the most important economic projects in 2024 was the enactment of the Reform and Investment Incentive Law (RIGI Law), which opened a new universe for foreign companies. This regulation, designed to encourage foreign direct investment, offers tax and administrative benefits in strategic sectors such as technology, renewable energies and advanced manufacturing. Among its highlights are:

  • Tax exemptions: Companies that reinvest in productive projects can access significant tax deductions, reducing operating costs.
  • Bureaucratic simplification: In this way, it seeks to reduce the time and costs associated with the opening and operation of companies in the country, facilitating the initial investment.
  • Fiscal stability: It offers a guaranteed period of tax stability, which is essential in a volatile economic environment.

It is also important to clarify that there are eight sectors that may be part of the benefit: forestry, tourism, infrastructure, mining, technology, steel, energy and “oil and gas”. For most of them a minimum investment of USD 200 million is required, but there are some exceptions.

These measures are aimed at positioning Argentina as a more attractive destination for large foreign investments. However, to take full advantage of these opportunities, companies must understand local regulations and stay informed about political and economic changes.

Argentina as a Crypto Hub

A recent article by Sherlock Communications highlights how Argentina has become a key crypto hub in Latin America. In a context of high inflation and foreign exchange restrictions, cryptocurrencies have emerged as a viable alternative for both individuals and businesses. Among the most relevant points can be observed:

  • Massive adoption: Argentina leads in the region, with more than 20% of the population using cryptoassets for transactions, savings or investment.
  • Proactive regulation: Although there is still regulatory uncertainty, the current government seeks to establish a legal framework that encourages technological adoption and investment in blockchain.
  • Foreign investment: Companies such as Binance are expanding their presence in the Argentine market, recognizing its potential as a regional crypto epicenter.

For foreign companies, the crypto ecosystem offers investment opportunities in technology startups and the use of cryptocurrencies as a tool to facilitate operations in an environment of remaining foreign exchange restrictions. In that sense, another key factor is the active community of developers, entrepreneurs and startups that have been generated around these new technological paradigms. 

Buenos Aires, in particular, has become a hub of digital innovation in Latin America, with a growing number of business incubators, specialized investment funds and networking events. In parallel, the proliferation of Web3-related projects has fueled this ecosystem. Argentina has stood out as the birthplace of several startups, which seek to develop innovative solutions in areas such as asset tokenization, decentralized exchange (DEX) and digital governance applications.

Regarding crypto regulation, Javier de Milei’s government showed a clear interest in establishing a legal framework that allows cryptoassets to operate in a more formal and secure manner. In this regard, Congress is moving forward with a bill to establish clear rules on the taxation of the profits obtained and to define what kind of entities may operate in the country in this sector. Experts point out that, with proper regulation, Argentina could become a regional leader in terms of adoption of cryptocurrencies and Web 3.0.

Natural Resources and Energy Transition

Argentina is a key player in the transition to clean energy thanks to its extensive reserves of lithium, one of the most demanded minerals for electric vehicle batteries. By 2025, this industry is expected to continue to grow exponentially. Highlights include:

  • Foreign investment: companies such as Livent and Allkem are already operating in the Lithium Triangle, taking advantage of growing global demand.
  • Renewable energy: Solar and wind projects backed by the RenovAr program have attracted investment from multinationals such as TotalEnergies and Enel Green Power.

However, when doing business in Argentina, foreign companies must take into account risks such as land conflicts and compliance with strict environmental regulations.

Macroeconomic Challenges

Despite the opportunities, Argentina’s structural challenges cannot be underestimated. The most critical factors include:

  1. Declining, but persistent inflation: Although trends in inflation rates are showing downward trends, price increases continue. The Relevamiento de Expectativas del Mercado (REM) of the Central Bank (BCRA) projects 25.9% inflation for all of 2025, an exponentially low number with respect to the last few years and 2024 (117.8% final). In that sense, companies should design dynamic pricing strategies and seek mechanisms to protect their balance sheets in case of exchange rate volatility, which could change the projections….
  2. Exchange controls: Restrictions on capital repatriation continue to be a major obstacle. Some companies are already adopting innovative solutions such as the use of cryptocurrencies to mitigate these risks. However, the maintenance of the so-called “cepo” causes uncertainty as to the real value of the dollar, which in Argentina is fundamental to establish prices for goods and services. 
  3. Political risk: In addition to the two points mentioned above, there is political uncertainty. 2025 in Argentina is a year of legislative elections. Although they do not define the direction of the government’s executive decisions, the election results may establish noise in the development of economic and exchange rate policies and influence investor confidence.

In 2025, doing business in Argentina will represent fertile ground for international companies willing to face the challenges and take advantage of the opportunities offered by its unique economic, legal, and technological context. With the right combination of strategic adaptation, innovation, and collaboration, companies can successfully position themselves in this dynamic market.

Written by: Patricio Erb