MercadoLibre Pumps $3.4B into Brazil; Ecuador Rescinds China Hydro Contract

A roundup of Tuesday’s news from across Latin America

Bloomberg Línea
March 22, 2022 | 10:30 PM

Bloomberg Línea — Latin American e-commerce retailer MercadoLibre (MELI) will invest around $3.4 billion in Brazil this year, 70% more than in 2021, the company said in a statement. The company seeks to expand MercadoPago’s product offering and continue strengthening its logistics capacity with four new distribution centers.

Ecuador’s state-owned power company CELEC has unilaterally terminated a construction contract for works on the Toachi Pilatón hydroelectric project, signed on December 24, 2010, with China International Water & Electric Corp (CWE). The Ecuadorian company declared CWE as the “defaulting contractor” on the Sarapullo and Alluriquín power plants, which have a total power generation capacity of 254.4MW.

Of the region’s stock markets, Colombia’s had the best performance on Tuesday, with the Colcap index up 1.05%, while Brazil’s Ibovespa (IBOV) had the second best performance of the day and closed with an increase of 0.96%. The Mexican stock market also added to the optimism, with the S&P BMV/IPC (MEXBOL) up 0.46% at closing, while Chile’s IPSA index (IPSA) closed with a drop of 2.13% after Monday’s fifth consecutive session with gains and its second best day of the year.

Following is a roundup of Tuesday’s news from Bloomberg Línea and Bloomberg reporters across Latin America.

Argentina:

Brazil:

  • Latin American e-commerce retailer Mercado Libre will invest around $3.4 billion in Brazil this year, 70% more than in 2021, the company said in a statement. The company seeks to expand MercadoPago’s product offering and continue strengthening its logistics capacity with four new distribution centers.
  • The Entrepreneurial Cities Index of the National School of Public Administration (Enap), with the support of Endeavor, places the city of São Paulo in top position as the best city for entrepreneurship.

Colombia:

Ecuador:

El Salvador:

Guatemala:

Mexico:

Panama:

Peru:

Venezuela:

  • Diosdado Cabello, vice president of Venezuela’s ruling Socialist Party and a key figure in the government of President Nicolás Maduro, said in statements to the media that the country should carry out a military invasion of Colombia, likening such an operation to the Russian invasion of Ukraine.