Argentina Election Briefing: Foreign Investment Opportunities Under the Milei Presidency

Written by Luke Musto, Associate

Argentina has long been a country with immense economic potential. The election of economist Javier Gerardo Milei as president has sparked renewed interest and curiosity among global investors. While much of the foreign media attention has been focused on Milei’s at times eccentric persona, his election is cause for optimism, particularly for foreign investors looking to explore opportunities in Argentina. Milei is known for his pro-market and liberal economic views, in contrast to protectionist policies that have dominated Argentina policy over the course of its history. In this blog post, we will delve into the potential foreign investment landscape in Argentina under the Milei administration, including discussion on where we expect opportunities to arise.

Economic context

Argentina, a South American nation with a rich and complex economic history, has grappled with a series of challenges that have shaped its economic landscape. Historically characterised by periods of prosperity and setbacks, the country has struggled with high inflation rates, fiscal deficits, and external debt. The late 20th century saw Argentina oscillate between economic booms and devastating crises, including the infamous economic collapse in 2001. While the country has abundant natural resources, a skilled workforce, and a diverse economy, structural issues such as government intervention, protectionist policies, and a volatile currency have posed persistent hurdles. Over the years, various administrations have attempted to address these challenges through a range of economic strategies, with varying degrees of success. As of Milei’s election, Argentina stands at a crucial juncture, with the hope that a commitment to liberal economic principles and significant reforms will pave the way for sustainable growth and increased foreign investment.

Introducing Javier Milei

Javier Gerardo Milei, a prominent Argentine economist and senator, has emerged as a dynamic and influential figure in the nation’s political landscape. Known for his charismatic persona and unapologetically liberal economic views, Milei has gained widespread attention (and, at times, controversy) both domestically and internationally as he entered the elections as a major disruptive candidate. Prior to his political career, Milei made a name for himself as an economist and commentator, advocating for free-market principles and challenging the status quo of Argentina’s economic policies. His rise to political prominence culminated in the 2023 presidential election, where he secured victory on a platform promising significant economic reforms and a departure from traditional policies. Milei’s presidency has sparked interest among investors seeking opportunities in Argentina, as his administration aims to create a more business-friendly environment, address economic challenges, and position the country for long-term sustainable growth.

Currency and Fiscal Policies

The cornerstone of Milei’s platform has undoubtedly been a focus on addressing long-standing issues such as inflation and currency instability. Milei’s economic team has proposed measures to stabilise the Argentine peso and curb inflation, creating a more predictable and favourable environment for investors. The most radical measure of Milei’s platform has undoubtedly been the “dollarization” – the adoption of the US dollar as legal tender. His plan aims to address Argentina’s chronic inflation and economic instability by eliminating the peso and surrendering monetary policy to the US Federal Reserve.

Milei believes that dollarization will anchor prices, stabilize the exchange rate, and foster growth by attracting foreign investment. He argues that the loss of monetary sovereignty is a necessary sacrifice to break Argentina’s cycle of economic crises. In practice, the USD is so widely adopted in Argentina that it could already be viewed as a de-facto local currency.

Critics of the plan warn that dollarization could lead to job losses, higher interest rates, and increased dependence on the US economy. They also raise concerns about the potential for economic hardship if the US dollar strengthens significantly.

Despite the potential drawbacks, Milei’s dollarization plan has gained traction among Argentines frustrated by the country’s chronic economic woes. If implemented, dollarization would represent a radical shift in Argentina’s economic policy and would have a profound impact on the country’s future – no other economy of its size has ever embarked on such a plan, making it essentially a step into the unknown. This being said, it is unlikely that Milei would ultimately be able to obtain the support of Congress needed to adopt the radical measure. Nonetheless, the process of just working towards dollarization would have long-term economic benefits for the country.

Economic Reforms

One of the key factors that have attracted attention is Milei’s commitment to implementing significant economic reforms, with the aim of transforming Argentina’s economic landscape. The administration’s agenda encompasses a wide range of initiatives, including the reduction of trade barriers and the simplification of regulatory processes to stimulate both domestic and foreign investment. Milei’s platform seeks to dismantle protectionist measures that have been a major deterrent to foreign investment, fostering competition, and promoting market-driven dynamics. The proposed labor market reforms seek to introduce flexibility, allowing businesses to adapt to changing economic conditions while maintaining fairness for workers. Additionally, tax reforms are on the agenda, with a focus on creating a more transparent and predictable tax system in comparison to the existing convoluted system. The government is committed to ensuring that these reforms are not only substantial but also sustainable, laying the groundwork for a resilient and adaptive economic structure. By addressing structural challenges in sectors like agriculture, manufacturing, and services, these reforms aspire to unlock the full potential of Argentina’s diverse economy, fostering innovation, job creation, and sustained economic growth.

Infrastructure Development

Argentina boasts abundant natural resources and a skilled workforce, but its infrastructure has long been a bottleneck for economic growth. The incoming Milei administration recognizes the importance of infrastructure development and has outlined plans to invest in transportation, energy, and technology. For foreign investors, this presents opportunities to participate in and contribute to the modernization of Argentina’s infrastructure, unlocking the country’s full economic potential.

Trade Opportunities

Argentina’s strategic location and membership in regional trade blocs, such as Mercosur, provide an excellent platform for international trade. Milei’s administration aims to leverage these relationships to foster increased trade partnerships and agreements. Foreign investors can explore opportunities in sectors such as agriculture, energy, and technology, benefiting from Argentina’s position as a key player in the Latin American market.

Argentina’s Mineral Wealth and Opportunities

Argentina possesses a wealth of mineral resources, including lithium, gold, copper, silver, and zinc. The country holds the world’s largest lithium reserves, second only to Bolivia. These resources are in high demand due to their use in batteries for electric vehicles and other electronic devices. However, they have been historically underexploited by successive governments.

Milei’s economic policies are expected to create a more favourable environment for mining investment. Tax cuts will reduce the cost of doing business in Argentina, making it more attractive for mining companies. Regulatory streamlining will reduce bureaucratic hurdles and expedite the permitting process. And increased labour market flexibility will make it easier to hire and fire workers, which is important in the mining industry. There are already several specific mining projects that are hoping to benefit from Milei’s election, including lithium, gold and copper projects.

Challenges and Risks

While the prospects of foreign investment in Argentina under the Milei presidency are promising, it’s essential to acknowledge potential challenges and risks. Argentina has a history of economic volatility, with issues such as high inflation rates, fiscal deficits, and external debt posing persistent challenges. Implementing significant economic reforms often faces resistance from various interest groups, and the success of Milei’s policies will hinge on his ability to navigate these complexities. Additionally, the global economic landscape and external factors, such as commodity price fluctuations and geopolitical events, can impact the success of Argentina’s economic transformation. Political stability is another crucial factor to consider, as shifts in public sentiment or opposition to Milei’s reforms could create uncertainty for investors. As with any emerging market, foreign investors must carefully assess and monitor these risks, adapting their strategies to the evolving economic and political conditions in Argentina under the Milei presidency. Despite the potential rewards, a nuanced understanding of the challenges at hand will be essential for investors to make informed decisions and safeguard their interests in this dynamic and evolving environment.


Argentina, under the Milei presidency, is set to begin a transformative period that has already captured the attention of global investors. While there will undoubtedly be challenges and risks associated with investing in Argentina under the Milei presidency, there remains a palpable sense of optimism for foreign investors. The commitment to economic reforms, fiscal responsibility, and infrastructure development signals a departure from historical economic patterns and opens up new avenues for growth. Argentina’s strategic location, abundant resources, and membership in regional trade blocs position it as a promising destination for international investment. However, prudent risk management, thorough due diligence, and a keen awareness of the evolving economic and political landscape are imperative for investors looking to capitalize on the opportunities presented by this transformative period. With a resilient mindset and a strategic approach, foreign investors have the potential to contribute to and benefit from Argentina’s journey toward economic revitalization under the Milei presidency. The coming years will undoubtedly be a dynamic chapter in Argentina’s economic history, and those willing to commit to the country and navigate the challenges may find themselves at the forefront of a new era of prosperity.

Harris Gomez Group opened its doors in 1997 as an Australian legal and commercial firm. In 2001, we expanded our practice to the international market with the establishment of our office in Santiago, Chile. This international expansion meant that as an English speaking law firm we could provide an essential bridge for Australian companies with interests and activities in Latin America, and to provide legal advice in Chile, Peru and the rest of Latin America. In opening this office, HGG became the first Australian law firm with an office in Latin America.
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