Challenges of urbanization

Latin America is experiencing intense urban demographic growth, with a projection of 90% of the population living in urban centers by 2050. This rapid urbanization puts considerable pressure on infrastructure and essential services. For example, in Mexico, many neighborhoods do not have access to water 24 hours a day, and groundwater is often contaminated. In Brazil, although water coverage is close to 100%, sanitation remains a major issue with coverage below 50%. This article is based on a round table held during BIG10 with Auriane Sacoman, Deputy General Manager of IGN FI, Julien Guittet, CEO of Bluspark, and Lana Ravel, Export Development at Bpifrance.

Innovative solutions from french companies

Several examples show that French companies are providing innovative solutions to address these challenges. Spark Hopper, created five years ago by Julien Guittet, has developed a digital platform to improve the management of essential infrastructure such as water, sanitation, and waste management. This technology optimizes existing systems, reduces water leaks, and improves service quality in disadvantaged neighborhoods.

Oriane Sacoman, Deputy General Manager of IGN FI, explains that they use advanced technologies such as LIDAR and photogrammetry to create digital twins of cities. These 3D models are used to analyze urban risks, such as landslides and floods, and to plan effective interventions. Additionally, sensors installed on transport infrastructure, such as urban cable cars in Bolivia, help optimize maintenance and reduce operational costs.

Initiatives and challenges: concrete examples from companies

In Mexico, Spark Hopper is working on optimizing water networks to reduce leaks. In Bolivia, the installation of sensors on the Mi Teleferico urban cable car system helps maintain low maintenance costs, allowing for more affordable social tariffs. In Brazil, IGN FI has worked on green space projects and faced challenges related to climate change, such as floods and wildfires, which directly impact business operations.

Patience: key to success for french companies

To succeed in Latin America, French companies must be patient and well-prepared. It is crucial to consult lawyers and tax experts to avoid pitfalls related to local taxation and regulations. For example, some countries like Peru do not practice double taxation avoidance, which can affect profit margins. Partnering with local entities is also essential to navigate administrative and cultural complexities. Finally, understanding the specific needs of the market and offering tailored solutions is important.

Succeeding and contributing to sustainable development in Latin America

Urbanization in Latin America presents unique challenges but also considerable opportunities for French companies. By being patient, surrounding themselves with competent professionals, and establishing strong local partnerships, entrepreneurs can not only succeed but also significantly contribute to the sustainable development of the region.

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