Foreign Investors Rush Into Argentina, Driving $27 Billion Inflows Under Milei’s Business-Friendly Reforms

Argentina’s government is touting early signs of success from its flagship investment incentive regime as President Javier Milei seeks to attract billions of dollars in foreign capital to revive an economy long plagued by inflation, currency instability, and chronic shortages of hard currency.

Argentina’s government said investments tied to its flagship RIGI incentive regime have now surpassed US$ 27 billion after authorities approved two new mining projects this week.

The country’s Economy Minister, Luis Caputo, said the latest approvals included the $891 million San Jorge copper project in Mendoza province and a $1.24 billion expansion of the Cauchari-Olaroz lithium operation in Jujuy province. The new approvals brought the total number of projects admitted or approved under the regime to 16, according to Argentine media reports.

The Large Investment Incentive Regime, known by its Spanish acronym RIGI, was introduced under Milei’s sweeping 2024 reform package to encourage large-scale investments in sectors including mining, energy, infrastructure, oil and gas, technology, and manufacturing.

The program offers tax, customs, and foreign exchange incentives to companies investing at least $200 million, including a fixed 25% corporate tax rate instead of the standard rate that can rise to 35%, along with long-term regulatory stability guarantees lasting up to 30 years.

The scheme also gradually eases restrictions on access to foreign currency and dividend repatriation, key concerns for multinational investors wary of Argentina’s history of capital controls and abrupt policy shifts.

The government has also recently discussed expanding the framework with a proposed “Super RIGI” initiative aimed at attracting emerging technology sectors such as artificial intelligence, robotics, data centers, and advanced manufacturing.

Under proposals being discussed by officials, qualifying projects could receive an even lower corporate tax rate of 15%, along with additional foreign exchange and regulatory benefits designed to compete with other global investment hubs.

Mr. Caputo has argued that the incentives are essential to reposition Argentina as a competitive destination for global investment and transform Argentina’s production matrix by incentivizing the industrialization of the country’s natural resources

“The idea behind a Super RIGI is that many of these industries operate with very, very low margins and we compete with countries that are decades ahead of us in terms of institutions and tax structure,” said Mr. Caputo in a press conference on May 8th.

According to Argentina’s central bank, projects approved under the program generated a net inflow of about $762 million through March, marking one of the first measurable signs that investor interest is translating into actual capital entering the country. 

Also, Argentina’s sovereign risk index recently fell to 498 basis points on JPMorgan’s EMBI Global Diversified Index, its lowest level since February, reflecting improving market sentiment as President Milei’s government maintains tight fiscal policies and posts budget surpluses. Fitch Ratings also upgraded Argentina’s sovereign credit rating to “B-” with a stable outlook earlier this month.

The lower country risk “reflects the economic policy of Argentina winning credibility with the passage ​of time, especially because it has maintained a fiscal balance,” Pablo Guidotti, a vice minister of economy under former President Carlos Menem, was cited as saying by Reuters.

Officials and analysts believe the RIGI program could eventually attract as much as $100 billion in investments, especially in energy and mining. Much of the investor interest has centered on Argentina’s vast natural resources, including the Vaca Muerta shale formation and the country’s extensive lithium and copper reserves.

State-controlled energy company YPF last week submitted a $25 billion oil development project under the RIGI framework aimed at accelerating production in Vaca Muerta, one of the world’s largest shale reserves.

The project, known as LLL, targets output of 240,000 barrels of crude oil per day by 2032 through the drilling of 1,152 wells, with all production earmarked for export markets. YPF estimates the project could generate roughly $6 billion annually in export revenue while creating around 6,000 direct jobs during its development phase.

Mining is also emerging as a major pillar of the government’s economic plans. Argentina expects lithium and copper exports to surge to $32.7 billion within a decade, up sharply from around $6 billion in mining exports recorded in 2025, according to Argentine Mining Minister Luis Lucero.

“In 10 years, Argentina could be producing 580,000 tons of ​LCE (Lithium Carbonate Equivalent) and 1,641,000 tons of copper annually,” Mr. Lucero said in an interview on the ​sidelines of a mining event.

Global mining firms have increasingly shown interest in the country’s resources as the government dismantles economic controls and expands investment protections.

Anglo-Australian miner Rio Tinto secured approval for its multi-billion-dollar Rincon lithium project in Salta province under Argentina’s RIGI investment incentive regime, becoming the first mining project formally approved under the framework.

The Rincon lithium project is expected to strengthen Argentina’s position in the global battery materials market as demand for electric vehicles and energy storage technologies continues to grow.

Other companies, including BHP, Lundin Mining, Posco, Ganfeng Lithium, and McEwen Copper, have also advanced investment plans tied to the incentive regime.

Argentina has also extended the window for companies to apply for RIGI benefits until July 2027.

Supporters of the program argue that the incentives are beginning to reverse years of underinvestment in strategic sectors and could help transform Argentina into a major exporter of energy and critical minerals.

While critics warn that generous incentives alone may not fully overcome investor concerns about Argentina’s long-term political and economic stability, given the country’s history of repeated debt crises, high inflation, currency devaluations, and policy reversals over recent decades, factors that have often discouraged long-term investment.

Experts also caution that the benefits largely favor large multinational corporations capable of meeting the program’s high investment thresholds, while smaller domestic businesses continue to struggle with financing constraints and weak domestic demand.

That said, for President Milei, whose government has pursued aggressive austerity measures to tame inflation and stabilize public finances, attracting foreign investment remains critical to sustaining economic recovery and easing the country’s recurring dollar shortages.

Whether the influx of announced projects ultimately translates into long-term economic growth may depend on Argentina’s ability to maintain macroeconomic stability and preserve investor confidence beyond Mr. Milei’s presidency.

Tanmay Kadam is a geopolitical observer based in India. He has experience working as a Defense and International Affairs journalist for EurAsian Times. He can be contacted at tanmaykadam700@gmail.com.