Regime Change, Minimum Wage Hikes and AI Among the Forces Reshaping Investment in Latin America in 2026

In the early hours on Saturday, explosions could be heard across Venezuela’s capital city of Caracas.

Venezuelan President Nicolás Maduro had been captured by U.S. forces after a “large scale strike”, President Donald Trump wrote on social media.

The President and his wife were flown out of the country following the strike, with U.S. Attorney General Pam Bondi saying that Maduro had been indicted on charges of narco-terrorism conspiracy and importing drugs.

In a subsequent press conference by Trump, oil opportunities in the country were discussed. Venezuela's state-run oil production and refining have been operating normally and suffered no damage, according to Reuters.

The public is bracing for a shock from these turn of events.

As 2026 gets underway, the greater Latin America region presents a nuanced landscape for investors. While there is increasing growth along with strategic advantages, this is counterbalanced by greater geopolitical turbulence.

Recognizing these forces reshaping investment will be key to navigating risk in the region in the year ahead.

Regime change in Venezuela

Maduro and his wife, taken in the middle of the night from a military base, were brought to a U.S. warship following their capture, where they will face criminal charges in New York.

Trump said the U.S. plans to “run Venezuela” until a transition of power can take place. He has claimed the American presence was already in place, though there are no immediate signs that the U.S. is overseeing the country. 

Said Trump, "We're going to run the country until such time as we can do a safe, proper and judicious transition.”

In his press conference the U.S. President claimed that the arrest of Maduro was in part about its vast oil reserves, stating that American oil companies will rebuild the country's crude industry to compensate the U.S. financially and support the Venezuelan people.

According to Trump, “We’re going to have our very large United States oil companies—the biggest anywhere in the world—go in, spend billions of dollars, fix the badly broken infrastructure, the oil infrastructure, and start making money for the country".

“We’re going to have a presence in Venezuela as it pertains to oil. We’re going to be taking a tremendous amount of wealth out of the ground,” added the U.S. President.

The impact of the Trump administration's airstrikes and capture Maduro are already being felt across Latin America, with Nicaragua and Cuba, two of Venezuela's closest allies, closely monitoring the situation.

Neighbor Colombia has also announced that security forces are being deployed along its border with Venezuela.

Colombia hikes 2026 minimum wage by nearly 23%

The breaking news follows a busy week for Venezuela’s neighbor Colombia, which made news one week ago after its government announced it would raise the country's minimum wage by 22.7%, to 1.75 million Colombian pesos per month.

The new minimum wage would apply to approximately 2.5 million workers across the country, and would start this month.

According to Colombia’s President Petro, this decision was made to "democratize wealth so that working people, who make up the majority of the Colombian population, can live better."

The announcement also raised concerns about inflation in the country, which central bank economists had estimated at 3.6%, down from the 5.1% projected for 2025. 

Petro has acknowledged the measure would put pressure on inflation.

Banco de Occidente chief economist David Cubides said he considered the increase absolutely unsustainable. The increase is expected to have an impact on the government’s payroll, pension costs and the informal labor market.

Economic growth across Latin America

According to recent multilateral forecasts, Latin America’s economic growth in 2026 remains modest compared with other international markets. 

The region’s GDP is expected to grow around the low-to-mid single digits through 2026, according to the World Bank, which sees moderate expansion as inflation stabilizes and investment firmament improves slightly. 

At the same time, the United Nations’ ECLAC has discussed persistent structural slowness, with its forecasts indicating only around ~2.3 % growth in 2026 due to weaker private consumption.

This being said, with the price of gold and silver increasing we should expect the region's economy to benefit due to its reputation as a global mining powerhouse, with its massive deposits of minerals including copper, lithium, silver, gold, and iron ore.

For investors, this means selectivity matters: countries such as Argentina, which is forecast to continue higher growth as compared to its neighboring countries, may outperform, while larger markets may face slower expansion.

Geopolitical change follows wave of multinational investment into the region

The commotion in Latin America this week follows a wave of recent foreign investment into the region.

In particular Mexico has been a recipient of this, having attracted big tech companies like Facebook (META), Google (GOOGL), Apple (AAPL), Netflix (NFLX) and LinkedIn (MSFT) to its tech center of Guadalajra, which already houses over 1,000 tech companies. This has helped to drive innovation across the region and create more than 150,000 jobs in the country.

The city of Guadalajara, in the state of Jalisco, has risen above all expectations and made a name for itself as a center for research, innovation, and development. As a result, 40% of the entire IT industry in Mexico is now concentrated in the state.

Multinational Ness Digital Engineering, which is owned by KKR, recently announced plans to open its new offices in the city, which will serve as a hub for digital innovation. The new center recognized the strategic relevance of Guadalajara’s robust tech ecosystem. Said the company’s CEO Dr. Ranjit Tinaikar, “Guadalajara, one of North America’s most vibrant tech communities, was the natural choice for our nearshore presence.”

Source Meridian, a multinational specializing in software development for life sciences, big data and business intelligence, also announced in 2025 its expansion into Ecuador, representing a key opportunity to energize Ecuador's digital ecosystem.

According to Entrepreneur Magazine, this will “undoubtedly boost Ecuador's presence as an emerging technology hub in the region”.

Venture capital, AI and fintech growth

Beyond traditional commodities, Latin America’s innovation ecosystem is attracting growing interest. VC investments focused on fintech and AI in particular are expected to continue momentum in 2026 as domestic financial markets mature and digital adoption increases.

Companies such as Midi Financial, which is a financial platform that gives both U.S. companies and Latin American remote workers access to U.S. banking, payments and financial services, is one company standing out in the market.

Leadsales, a startup focused on providing specialized CRM for WhatsApp and social media that is based in Mexico, is another company to watch, along with Fracttal, a platform that integrates asset management software, IoT, and AI. Brands Like Bands, founded by Fernando Gaspar Barro, will also make its presence felt in the region with its innovative festival focused on corporate culture being held in São Paulo, Brazil this year.

AI in particular is experiencing rapid growth in the region, with potential to add up to 5.4% to regional GDP by 2030. Startups aligned to this trend include Saas company Credibl ESG, which is the company behind an impressive AI-powered ESG platform; 360 Health Data, a bespoke resource platform that connects Spanish-speaking clinicians in Latin America with high-quality medical knowledge; and Buddy.ai, which is on a mission to democratize English education in Latin America. 

When it comes to AI adoption in Latin America, according to the Latin American Artificial Intelligence Index Chile leads in the technology's adoption, followed by Brazil and Uruguay. Governments in the region are increasingly adopting national AI strategies, focusing on ethical frameworks and regulation.

Across the region, businesses and investors will need to manage the opportunities for growth this year, along with their accompanied risks. Investing in Latin America in 2026 means balancing economic growth with geopolitical uncertainty, while also capitalizing on strategic resources and emerging technology sectors.