South Africans often ask a recurring question: What changed in Argentina for the perception of our country’s economy to shift from risk to opportunity in just over two years? The answer is a sequence of bold decisions whose results are becoming visible.
The starting point was macroeconomic stabilisation. In 2023, monthly inflation exceeded 25%, international reserves were at critical levels and exchange-rate pressures dominated business calculations.
With a fiscal and monetary adjustment programme, monthly inflation was reduced to single digit, while reserves recovered.
Less volatility and greater predictability are the foundations upon which confidence is rebuilt.
The second shift was fiscal balance. In 2023, Argentina carried a deficit of 5.5% of GDP, largely financed through monetary issuance. The correction made it possible to achieve primary and financial surpluses in 2024 and 2025. The reordering of public finances also made it possible to reduce taxes by 2.5% of GDP. For investors, it signals a state that is living within its means.
At the same time, foreign trade was normalised. The previous system combined multiple exchange rates and restrictions that discouraged exports and imports. Exchange-rate simplification and normalised access to the currency market helped align expectations. They were accompanied by growth in exports and trade surpluses in 2024 and 2025.
This was complemented by a deregulation agenda. Hundreds of regulations were eliminated
or reformed, registrations and permits were reduced, procedures were streamlined and digitalisation advanced. The objective: the simpler and clearer the rules, the easier it is to invest, produce and consume.
Finally, investment attraction was fostered by the Incentive Regime for Large Investments, which provides legal certainty and tax and customs benefits for long-term projects.
Twelve projects have been approved for more than $26 billion (about R437bn), several of them in gold, silver, copper and lithium mining, with the potential for significant exports and the creation of thousands of jobs.
Argentina’s economy stands as an opportunity for the South African mining sector to leverage its experience in large-scale operations at a time when firm global demand will reward those who enter early.
Raúl Santiago Ailan is the ambassador of Argentina