When Yamandú Orsi took office in March 2025, returning the Frente Amplio to power after five years in the opposition, Latin American investors were watching closely. Uruguay’s sovereign debt spreads remained stable. The investment-grade ratings assigned by the major agencies remained unchanged. By regional standards, the transition was uneventful. And that is precisely the point.

In previous columns, I have argued that the high cost of capital in Latin America is primarily due to political risk and weak institutions. Brazil, the region’s largest economy, is one of the clearest examples.

After analyzing the cost of capital across Latin America throughout this series, one conclusion stands out: the region’s high financing costs are not a fixed condition. They stem from policy decisions and persistent structural weaknesses—factors that can be improved over time.

Latin America's future growth will depend not only on politics or commodity prices, but also on a less visible yet equally decisive factor: the cost of capital.

Infrastructure is the backbone of any economy that aspires to grow sustainably. Roads, ports, dams, and canals require long-term capital. They require a large amount of capital and, above all, capital at a reasonable cost.