Latam Talks: Chile
Business Finland and the Finnish-Latin American Business Council arranged the first event of the Latam Talks series on the 23rd March 2021.
Chilean year of mega elections
A Constitutional Convention election will take place on the 11th April 2021 the members of which will draft the new constitution as decided in 2020.
The Constitution will be written by the body with gender parity and with indigenous people. Governors and local deputes will also be elected on the 11th April 2021.
In 2020, the GDP contracted by 6 per cent and the unemployment rate increased. The price of cooper rose, and the economy started to grow in
the fourth quarter of 2020. The government allowed citizens to tap 10% of their retirement savings. Consumption grew and inflation rose.
The decision has been criticized referring to the already low pensions. The economy is expected to grow by 6 per cent this year.
Covid-19 pandemic has reduced the size of Chile’s middle class and had severe impact on economy. 4 million people of habitation of 19 million people are already vaccinated against Covid-19, says Eija Rotinen, Ambassador of Finland in Chile.
Business opportunities in circular economy
Chile has a national road map towards a circular economy to achieve a trash-free Chile in 2020-2040, energy route 2018-2022, commitment to have 20 per cent of electricity coming from nonconventional energy by 2025 and aim to reach carbon neutrality by 2050. All these statements are part of the 2020 Sustainable Development Report.
Cofro, the Chilean economic development agency has launched together with the Ministry of the Environment, Ministry of the Economy and Development, the Circular Economy Innovation Prototyping Programme to support the development of technological innovation prototypes for the circular economy, a production concept under which economic activities that are seen as regenerative and reparative.
Circular Economy Innovation Prototype Contest promotes the development of functional prototypes of new or significantly improved goods, services, and/or processes that are innovative and represent progress towards the circular economy model. The contest offers up to 60 million Chilean pesos in co-funding for 50-70% of total project costs, depending on company size. https://bit.ly/31vgy99
District Energy GEF Programme accelerates investment in efficient and renewable district energy systems in Chile. here will be 2 lines of support, the first for technical advice for the development of projects and the second for co-financing for the execution of projects. It is essential to have a local partner if the company or organization likes to succeed in competition. Applications should be sent by the end of 2021. For further information, please, look at https://bit.ly/3rDPrDD
CMPC is a multinational corporation that has being delivering sustainable solutions to its customers and consumers for 100 years. As part of the company’s bioeconomy strategy, CMPC wants to strengthen their position as a key player in bioeconomy and leverage the innovation ecosystem to generate value. They are looking for R+D+I cooperation and international partners, and CMPC has identified the following as their primary interests: packing, biomaterials, biobased textiles, and biofuels. More information can be found at https://bit.ly/3fyiLsZ
Chilean Navy has budgeted to obtain new vessels
Chilean Navy has budgeted to obtain new vessels, speed boats, and satellite surveillance system. These vessels should be constructed in 2022.
Chilean Navy has many tasks different those in other countries. For example, the transport of passengers, especially during the school year or in cases of emergency, together with the supply of provisions and fuel, are of key importance to the inhabitants of these insular zones.
The institution regularly carries out civil operations whereby Navy professionals provide social assistance and health care to the civilian population and provide support in cases of natural catastrophe. It also undertakes preventative education campaigns for Chile’s population on issues that include security on beaches and seaside resorts and measures to be taken in the case of a tsunami.
Mining is the core stone of the Chilean economy
Mining, specifically copper mining, is the most significant economic activity in Chile. Copper mining represents over 10% of GDP, more than 50% of exports, and is the leading recipient of foreign direct investment: accounting for one in every three dollars entering the country.
Leading mining companies are looking for new sustainable and digital solutions for growth –e.g. automation, robotics, advanced process control, integrated planning, AI, IoT, predictive analytics, among others. There is also demand for automated electrical vehicles, water, and wastewater management systems (new law coming), disruptive circular economy solutions aimed at transforming copper tailings into valuable elements.
Water resources strategy
Codelco El Teniente Division is defining its water resources strategy in the short, medium and long term, in order to face the water crisis that the country is currently experiencing, climate change, possible changes in legislation and the requirements of the society. Finnish companies maybe able to offer technical solutions to the enterprise. https://bit.ly/3cCM2k0
TAMK has a long experience in the Chilean market
Tampere University of Applied Sciences (TAMK) offers teacher training, programs for industry, degree, and double degree programs and tailormade programs. They have implemented many programmes in Chile. According to Virpi Heinonen Chileans are the Nordics of LatAm. Networking takes time and personal connections are very important in doing business. Presence in the market is highly recommended. Flexibility and patience are needed as processes in the public sector are long and while private sector is agile. WhatApps are commonly used for business purposes. Knowledge of Spanish is an advantage in business contacts in Chile. https://www.tuni.fi/en
For further information, please contact:
Ms. Heidi Virta, Head of Region LatAm, Business Finland
Ms. Anna Niittylä, Senior Advisor, Business Finland
Ms. Maria Ala-Kaila, Senior Advisor, Business Finland,
Ms. Anne Hatanpää, Finland Chamber of Commerce, email@example.com