In recent decades, the aerospace industry in Brazil has expanded. One aspect of the industry’s growth that has been achieved in recent times is its expanded activities in the defense-related export sector. The country’s industry has been transformed from an exclusive supplier to the private sector to more significant military-related sales to leverage growth in international markets further.

In this article, we present some interesting points about the history of the aerospace industry in Brazil.

Santos Dumont

The founder of the aerospace industry in Brazil is recognized to be Alberto Santos Dumont or just Santos Dumont. Considered the father of the aviation sector, he was fascinated by combustion engines from a young age. He had a dream to create a device that allowed man to fly. In 1906, Santos Dumont and the famous 14-Bis plane managed to accomplish this feat. In a flying club in France, a device heavier than air flew, before a supervisory committee, approximately three feet from the ground and for a distance of about 200 feet.

After this first achievement of the aerospace industry in Brazil,  a similar flight was carried out for a distance of about 720 feet at a height of approximately 20 from the ground. As a result of these initial achievements, Santos Dumont became known worldwide and placed the country on the route towards the development of the aerospace industry in Brazil.

Single engine monoplane São Paulo (1910)

After the first achievements registered by Santos Dumont, the father of Brazilian aviation developed an aircraft that was known as the “Avião São Paulo,” or the São Paulo Airplane. This was the first fully built aircraft in Brazil. Its prototype was flown over the city of Osasco. It was piloted by the French aviator Dimitri Sensaud Lavaud.

Until this time, the early initiatives that led to Brazil’s aerospace industry’s development were the result of individual efforts. However, the personal initiatives carried out by hobbyists inspired feats that contributed uniquely to the creation of the industry as it is today.

World War I

After the First World War, an aircraft manufacturing factory in Brazil was established. Brazilian industrialist Henrique Lage initiated this project. Lage was a specialist in maritime shipping lines. He believed that aviation constituted a promising manufacturing trend and decided to reorient the direction of his business.

Through his Companhia Nacional de Navegação Aérea (CNNA), Lage signed a contract for production for customers in Great Britain. As a result of this, CNNA started to produce airplanes and aeronautical engines in Rio de Janeiro,

Advances in the aerospace industry in Brazil in the 1940s

In the 1940s, a new phase of the aerospace industry in Brazil began with the creation of more than 20 companies in the sector.

The large-scale emergence of the aerospace industry in Brazil was motivated by the creation of the Brazilian Ministry of Aeronautics as well as by the demand for aerospace industry output precipitated by the advent of the Second World War in Europe.

The creation of Embraer

Embraer (Empresa Brasileira de Aeronáutica S/A was founded in 1969. It was a critical component of a project to implement Brazil’s military plans and was co-founded by the aeronautical engineer Ozires Silva. This plan sought to establish a domestic and sovereign aerospace industry in the country, such as those for the oil and steel industries.

Embraer was established with mixed capital, with 51% of the shares belonging to the State and 49% the property of private capital. As a milestone of its creation, the Brazilian engineers that were a part of the project were challenged with creating a 12-seat twin-turboprop plane. That airplane would become known throughout the world by the name of Bandeirante.

In the 1990s, the company went through a privatization process. Embraer remains in the hands of private capital to this day.

The trajectory of the aeronautical industry in Brazil

Since the beginning of its trajectory, the Brazilian national aviation industry has sought to establish itself in an economically sustainable way.

The first phase of the aerospace industry in Brazil was its inception with pioneers such as Santos Dumont. The second was marked by events that took place in the 1930s. At that time, the Department of Civil Aviation was created. In the 1940s, Brazil established its Ministry of Aeronautics. Finally, the creation of Embraer took place at the end of the 1960s.

The third phase corresponds to post-privatization. The main characteristic of this phase is the Brazilian aerospace industry’s new international reach. As a result of its robust development, Embraer reached third place in the world among the largest aerospace manufacturers, following only Boeing and Airbus.

This characteristic demonstrates the potential of Brazil’s aerospace industry and the valuable opportunities that may continue to arise.

The current state of the aerospace industry in Brazil

Brazil has a well-established aerospace industry with several notable achievements. Here are some key features of the current aerospace industry in Brazil

Embraer: Embraer (Empresa Brasileira de Aeronáutica) is the largest aerospace company in Brazil and one of the world’s leading regional aircraft manufacturers. It produces various commercial, military, and executive aircraft, including the popular E-Jet series. Embraer has a strong presence in both the domestic and international markets.

Military Aviation: Brazil has a significant focus on military aviation. The country has developed indigenous military aircraft, such as the AMX fighter and the Super Tucano turboprop aircraft, which are widely used by the Brazilian Air Force and exported to other nations.

Space Industry: Brazil has a space program led by the Brazilian Space Agency (AEB). It has developed the VLS-1 (Satellite Launch Vehicle) and operates the Alcântara Launch Center. The space industry in Brazil focuses on satellite development, space research, and applications such as remote sensing and telecommunications.

Research and Development: Brazil invests in research and development (R&D) activities related to aerospace technology. ITA mentioned earlier, is a prestigious institution that offers aerospace engineering programs and contributes to technological advancements in the sector. There are also partnerships between universities, research institutes, and the industry to promote innovation.

International Collaborations: Brazil actively collaborates with other countries and participates in international aerospace programs. For instance, Brazil is a partner in the Airbus A380 program and has contributed to the development of various components for the aircraft.

Job Creation: The aerospace industry provides employment opportunities in Brazil. It encompasses various sectors, including manufacturing, engineering, research and development, maintenance, and support services. The industry’s workforce comprises highly skilled professionals contributing to the country’s development of human capital.

Economic Growth and Revenue Generation: The aerospace industry in Brazil contributes to the nation’s economic growth and generates revenue through multiple channels. Domestic aerospace companies like Embraer contribute to the country’s export earnings by selling aircraft and related services to international markets. The industry also fosters innovation and technological advancement, attracting investments in Brazil and driving economic activity.

Technology Transfer and Spillover Effects: The aerospace industry in Brazil often involves collaborations with international partners, enabling technology transfer and knowledge exchange. These partnerships can lead to spillover effects, benefiting other sectors of the economy. For example, advancements in aerospace technology can have applications in areas such as telecommunications, defense, and materials science.

Workforce and Supply Chain: Brazil has a skilled workforce in aerospace engineering and related fields. The country has developed a robust supply chain to support the aerospace industry, including producing components and systems.

Export Potential: Brazil’s aerospace industry, mainly through companies like Embraer, has a strong export orientation. The country exports aircraft, components, and related services to customers worldwide. These exports contribute to Brazil’s trade balance and help generate foreign exchange reserves.

Challenges and Opportunities: Like any industry, the Brazilian aerospace sector faces challenges, including competition from established players, technological advancements, and funding constraints. However, Brazil also has growth opportunities, such as expanding its market share in regional aircraft, leveraging its military aviation expertise, and exploring space technology advancements.

Overall, the aerospace industry in Brazil has, from its beginnings to the present, become a strategically important component of the nation’s economy. It continues to create jobs,  spur economic growth, and technological development,  generate export earnings, preserve national security, and drive research and development. It catalyzes innovation and high-value manufacturing, enhancing Brazil’s global competitiveness in the aerospace sector.

 

According to the document “Knowing the medical device industry,” prepared by the National Institute of Statistics and Geography (INEGI) and the Mexican Association of Innovative Industries of Medical Devices (AMID), three economic activities have been identified in Mexico that reflect the economic behavior of the medical device industry in Mexico.

The first is the manufacture of disposable material for medical use, the second activity is the manufacture of non-electronic equipment for medical, dental, and laboratory use, and the third is the manufacture of non-woven fabrics (compressed).

It is worth mentioning that medical devices not considered in these economic activities are produced in other activities or are imported products.

The study states that, in this way, by the amount of what was produced, the manufacture of disposable material for medical use was the most important activity since the production value was 13.8 billion dollars in 2021, which reflects an increase of 11.1% compared to the previous year, due to the rise in demand for these products due to the COVID-19 pandemic.

In this case, the average annual growth from 2013 to 2021 was 4.2%.

For its part, the manufacture of non-electronic equipment for medical, dental, and laboratory use had a production of 1.8 billion dollars in 2021, with a growth of 2.9% compared to the previous year. Likewise, the average annual growth rate was 6.2% from 2013 to 2021.

Finally, the growth in the manufacture of non-woven fabrics (compressed) was 4.7% from 2020 to 2021. While from 2013 to 2021, this activity grew 1.3% on average each year.

It should be noted that according to the report, production, employment, and wages showed increases in the medical device industry in Mexico or have remained stable in recent years.

“These increases were due to the increase in demand for products from this industry, derived from the COVID-19 pandemic, a situation that contrasts with what happened in most economic activities, which reduced production, employment, and wages in those years,” the report details.

Exports and imports of the medical device industry

The INEGI and AMID report indicates that  2020 exports of medical devices reached 10.7 billion dollars in 2020 and imports 5.24 billion dollars, which generated a surplus of 5.46 billion dollars.

“Mexico exported the vast majority of medical devices to the United States (96.7% of the total) in 2020, a percentage corresponding to 9.6 billion dollars. In addition, the origin of imports of these products was mainly the United States (60.7%) and China (12%); both accumulated 72.7% of the total,” details the document.

Other export destinations were France, China, the United Kingdom, the Netherlands, and Germany. At the same time, Mexico also imported from countries such as Germany, Malaysia, South Korea, Japan, Italy, Ireland, Pakistan, and Taiwan, among others.

It should be noted that, from 2003 to 2020, exports of medical devices grew by an annual average of 8.6% and imports by 7.9%, which caused the surplus balance of the trade balance to increase by a yearly average of 9.4%.

Aerosol therapy devices, respiratory resuscitation devices, and other respiratory therapy devices totaled 9.2 % of total exports.

On the import side, the two fractions that stood out were ozone therapy, oxygen therapy or aerosol therapy devices, respiratory resuscitation devices, and other respiratory therapy devices and diagnostic reagents for the determination of immunological tests utilizing monoclonal antibodies, even in the form of games, which accumulated 8.4% of the total.

Foreign direct investment in the medical device industry in Mexico

Information from Data México states that, in the period from January to September 2022, the Foreign Direct Investment (FDI) of the industrial branch Manufacture of non-electronic equipment and disposable material for medical, dental, and laboratory use, and ophthalmic articles was 126 million dollars.

It should be noted that, from January 1999 to September 2022, the amount of FDI was 1.8 billion dollars.

Likewise, in the first nine months of 2022, the states that received the highest FDI for the medical device industry in Mexico were Chihuahua, with 79.1 million dollars, and the state of Mexico and Baja California, with 12.6 million dollars.

While from January 1999 to September 2022, the states that have received the highest FDI are Chihuahua, with 1.15 billion dollars; Baja California, with 406 million dollars; and Mexico City, with 147 million dollars.

For their part, the leading countries of origin of FDI in the medical device industry in Mexico from January 1999 to September 2022 were the United States, with 54.8 million dollars, Canada, and the Netherlands. Meanwhile, from January 1999 to September 2022, the countries that contributed the most to FDI were the United States with 1.41 billion dollars, Germany with 193 million dollars, and Canada with 105 million dollars.

The medical device industry in Mexico is prominent in several states

Several Mexican states have emerged as leaders in the medical device industry in Mexico. Below are some of the critical states known for their significant contributions to the sector:

• Baja California: This state, particularly Tijuana, is a prominent hub for medical device manufacturing in Mexico. It hosts many companies involved in the production of medical devices, including orthopedic implants, surgical instruments, and electronic medical equipment.

• Chihuahua: Chihuahua is another important state for medical device manufacturing. The city of Ciudad Juarez is known for its well-established medical device industry, specializing in areas such as electromechanical devices, dental equipment, and prosthetics.
• Guanajuato: The state of Guanajuato, particularly the cities of León and Irapuato, has a strong presence in the medical device manufacturing sector. It is known for producing various medical equipment, including diagnostic devices, surgical instruments, and orthopedic implants.
• Jalisco: Jalisco, with its capital city Guadalajara, is recognized as a critical center for medical device manufacturing in Mexico. The state has a well-developed infrastructure and expertise in various areas, such as ophthalmic devices, cardiovascular devices, and general medical equipment.
• Nuevo León: The state of Nuevo León, with its industrial city of Monterrey, has a thriving medical device manufacturing sector. It produces various medical devices, including orthopedic implants, surgical instruments, and electromedical equipment.

These states have attracted significant investment in the medical device industry in Mexico due to favorable business environments, skilled labor, proximity to the United States market, and infrastructure support. However, it’s worth noting that medical device manufacturing is not limited to these states, and other regions in Mexico also contribute to the industry.

 

 

 

There are numerous advantages available to companies that are doing business in Panama.  They include:

Security and Stability

Panama is widely considered a “safe haven” due to its political and socioeconomic stability. It benefits from special treaties with the United States, ensuring protection during conflict. The security of Panama is affected by its economic prosperity. Panama has experienced consistent economic growth in recent years due to its strategic location, the Panama Canal, and a well-developed service sector. The country’s relative economic prosperity has helped reduce some social and economic inequalities that can contribute to crime rates. As the safest country in Central America, it attracts a diverse expat community from around the world that enjoys the security and stability of doing business in Panama.

Ease of commercial configuration

Doing business in Panama by establishing a corporation is a simple process. Forming a corporation in Panama takes just a few business days. Additionally, a business operations permit can be obtained online with a small setup fee or tax. Establishing a sole proprietorship with a business operations permit that costs only $15 is also possible. Municipal taxes are generally low and vary depending on the nature of the business and the municipality.

A stable currency

Since its creation as a nation in 1903, Panama has adopted the US dollar along with its currency, the balboa. The balboa is linked to the US dollar, and both currencies circulate within the country.

Local bank transactions are generally quoted in balboas when doing business in Panama, while international transactions are quoted in US dollars.

Favorable tax structure

When doing business in Panama, the country offers a relatively simple tax structure for businesses. Panama imposes a low value-added tax (VAT), or sales tax, of just 7%, compared to 17-21% rates in neighboring Central American countries. Corporate income tax stands at a modest 25% on net income after expenses, and taxes on dividends range from 5-10%. Panama follows a territorial tax system, which means that the government only taxes income generated within the territory of Panama. Non-Panamanian income remains tax-free for Panamanian businesses, residents, and citizens. However, it is essential to note that US persons residing in Panama are subject to worldwide income taxes by the US.

Political and Economic Stability

Doing business in Panama benefits from the fact that it has maintained a stable democratic government since 1989 without significant political unrest. Additionally, Panama has experienced consistent annual GDP growth since 2005, along with low inflation rates. Much like the United States, the government of Panama is structured as a presidential democratic republic. Some of the key institutions that make up the government of Panama include:

The government of Panama is structured as a presidential representative democratic republic. The key institutions that make up the government of Panama include the following:

• Executive Branch: The executive branch is headed by the President of Panama, who is both the head of state and the head of government. The President is elected by popular vote for a five-year term and exercises executive power. The President appoints ministers and officials to oversee government departments and agencies.
• Legislative Branch: The legislative branch comprises the National Assembly (Asamblea Nacional). It is a unicameral body composed of 71 deputies elected by popular vote for five-year terms. The National Assembly is responsible for enacting laws, approving the national budget, and overseeing the executive branch’s actions.
• Judicial Branch: The judicial branch interprets and applies the law in Panama. The Supreme Court of Justice (Corte Suprema de Justicia) is the highest judicial authority in the country. It comprises nine justices appointed by the President and confirmed by the National Assembly. The judicial system also includes lower courts, specialized courts, and tribunals.

Robust Banking System

One of the most prominent reasons there is ease of doing business in Panama is that the country’s banking system is known for its soundness and conservative lending practices, which contributes to its overall stability. The regulatory body governing banks in Panama is the Superintendency of Banks of Panama (Superintendencia de Bancos de Panamá). It is an autonomous government agency responsible for overseeing and regulating the banking sector in Panama. It works closely with other regulatory bodies, such as the Ministry of Economy and Finance, to ensure the stability and integrity of the financial system in Panama.

Advanced infrastructure and communication

High-speed Internet connections throughout the country and modern telephone equipment for international communication make doing business in Panama easy. Additionally, the nation’s roadways are in good condition. They include 4-lane highways that connect the capital with the main provincial capitals and Costa Rica. The Panama Canal allows for the efficient transportation of goods, while domestic airports facilitate fast domestic air travel.

Few natural disasters

Unlike many other regions, Panama is relatively free from natural disasters such as hurricanes, tornadoes, and tidal waves. While minor earthquakes occasionally occur, they are infrequent and pose little threat.

Bilingual environment

While Spanish is the primary language, English is widely spoken in Panama due to the significant English-speaking expat community. The involvement of the United States in constructing and maintaining the Panama Canal until 1999, when it was turned over to the Panamanian government, further contributed to the prevalence of English in the country. English is widely spoken and understood in Panama, particularly in urban areas and sectors such as tourism, hospitality, finance, and international business. The country’s education system emphasizes English language education, and many schools offer English as a mandatory subject from an early age. Panama’s universities and language institutes also provide English language programs and courses. The availability of English speakers facilitates doing business in Panama.

Proximity and Connectivity

Panama City’s Tocumen International Airport offers direct flight connections to more than 100 cities worldwide. Several international airlines serve Panama, ensuring convenient travel options for citizens of Canada, the United States, Latin America, and Europe. Tocumen International Airport is the busiest airport in Central America and is a major hub for air travel in the region.

These factors make Panama an attractive destination to live and do business, offering a safe environment, favorable tax policies, stable infrastructure, and a prosperous international community.

For more information on doing business in Panama, contact LATAM FDI.

The EU-Mercosur agreement will usher in the creation of one of the largest free trade regions in the world, with a population of eight hundred million people.

An agreement twenty years in the making

A pending issue has existed between the European Union (EU) and the Common Market of the South (Mercosur) for over 20 years. For two decades, the Europeans and South Americans have been unable to resolve their differences and ratify an association treaty that turns their relationship into a broad strategic and economic alliance. In 2019, both blocs reached a hopeful agreement in principle, but since then, the final texts of an EU-Mercosur agreement have yet to be signed or ratified. This year, however, according to Andrés Allamand, the Ibero-American Secretary General, “the stars have aligned” to relaunch the effort to concretize Euro-Latin American ties.

This cosmic alignment is occurring on both sides of the Atlantic. In Europe, there is a widespread conviction that the signing of an EU-Mercosur agreement will be the cornerstone of strengthening the trading bloc’s alliance with Latin America. This commitment is led by Spain, which has a stock of direct investment of more than 66,000 million euros in the Mercosur region, and Brussels, where Josep Borrell, High Representative of the Union for Foreign Affairs and Security Policy, has prioritized the agreement that qualifies as one of the “most important in the history of the European Union.”

This determined European commitment to Mercosur is now more receptive after the ascendence of Lula da Silva to the office of the presidency in Brazil. Lula’s agenda (he is committed to multilateralism, strategic autonomy, and sustainable development with the defense of the Amazon as the axis of his environmental policy) goes hand in hand with the EU’s. Proof of this change in trend is the words of two Spanish ministers, the Minister of Foreign Affairs, José Manuel Albares, and the Minister of Industry, Trade, and Tourism, Reyes Maroto, who consider that the ratification of the EU-Mercosur Agreement is closer with Da Silva in Brazil’s presidential palace.

EU-Mercosur agreement countries must convince their citizens

Converting the pending issue of the EU-Mercosur agreement into approval requires two preconditions: a lot of persuasion and efficient public policies to protect the sectors that lose out after the signing of the long-awaited accord. In the first place, persuasion is needed to convince countries that do not welcome the treaty signing or are not confident that the commitment to Ibero-America will strengthen the EU by providing it with new allies.

In Europe, some countries, such as Spain, Portugal, and Germany, are leading the drive to finalize the EU-Mercosur agreement. On the other hand, some nations, such as France, Poland, Ireland, and the Netherlands, have blocked the pact due to protectionist sentiments presented under the guise of environmental issues. This pedagogy is necessary to make reticent countries see that, for the EU, the agreement with Mercosur proves its role as a global leader in environmental policies. The deal would be a compelling message for the rest of the region at a time (after the invasion of Ukraine) in which the European Union seeks to rebuild its alliances, project itself internationally and find dependable suppliers, especially those with raw materials and energy resources.

Strengthened ties between the European Union and Latin America

The ratification of an EU-Mercosur agreement would also be an unmistakable sign of the Union’s renewed will to strengthen ties and elevate its relationship with Latin America to form a new strategic alliance. This is something that the Government of Spain has strongly endorsed and has made a priority of the current presidency of the Union that Spain will occupy in the second half of 2023.

In addition, there is an economic incentive: a report by the London School of Economics calculates that the EU-Mercosur agreement would increase the GDP of the EU by 0.1% per year until 2032 and by 0.3% for the Mercosur countries. It would be one of the political and economic-commercial alliances with the most significant global geopolitical weight that would give birth to one of the largest free trade zones in the world. The treaty will create a joint market of eight hundred million people (Mercosur is the fifth largest trade area in the world) and account for almost a quarter of the world’s GDP and more than US $1 billion in trade.

For Mercosur, where resistance is linked to protectionist interests, the educational effort is focused on showing the agreement as a critical lever to modernize the regional productive matrix, accelerate the green transition, facilitate technology transfer, and promote sustainable value chains through European cooperation. Likewise, the EU-Mercosur agreement can end Mercosur’s stagnation thanks to what would be its first free trade agreement with another sizeable regional bloc.

Additionally, the agreement must design a set of public policies that protect the sectors that will be negatively impacted by the agreement on one side and the other of the Atlantic. In Mercosur, there are still significant trade barriers. For example, the region’s automotive industry is protected. In Europe, rural sectors, such as the influential French and Eastern European farmers, fear being harmed by the agreement, which could become a breeding ground for an increase in social unrest. It is, therefore, essential to improve the economic situation and well-being of those negatively impacted by the accord to increase the legitimacy of the trade agreement within the EU and Mercosur and transform a perennially elusive subject into a reality.

The most attractive economic sectors for investing in Bolivia are jewelry, agribusiness, energy, finance, manufacturing, telecommunications, transportation, and tourism. The text below contains general information on each of these sectors.

Jewelry

Bolivia, a mining country by tradition, has enormous resources of raw materials for the jewelry industry. It has large mining deposits that allow the supply of gold, silver, copper, tin, and others, and significant deposits of precious and unique stones. These resources offer extensive investment opportunities yet to be exploited.

There are companies (domestic and foreign) in the departments of La Paz and Santa Cruz dedicated to producing jewelry and costume jewelry for export.

Cooperatives from the highland departments (La Paz, Oruro, and Potosí) provide gold and silver to goldsmiths and industrial jewelers, who combine state-of-the-art technology and an innate skill to produce jewelry of high quality to be marketed abroad.

Agribusiness

Agricultural and livestock production and its derivative products vary and are subject to particular characteristics and determining conditions. Climate and rainfall are two conditions that play an essential role in growing crops and raising livestock. Three large regions have different climatic characteristics when investing in Bolivia in the agroindustrial sector.

They are:

• The Altiplano is a region with an average altitude of 12,464 feet above sea level and an average rainfall of 17 inches.
• Los Valles is at an average altitude of 9,153 feet above sea level and an average rainfall of 20 inches.
• Los Llanos has an average altitude of 2,670 feet above sea level and an average rainfall of 52 inches.

Within these large regions are 14 sub-regions with particular characteristics and a defined production pattern.

In the northern highlands, maize, quinoa, and tubers are produced, and sheep and camelids are raised. In the valleys, large plots of vegetables and fruits are cultivated; Likewise, dairy cattle are raised. Cotton, sugar cane, soybeans, and similar products are grown on the Santa Cruz plains. This area has large grazing areas for raising cattle.

Agroindustrial development has entered a considerable market expansion based fundamentally on high-quality Bolivian raw materials, abundant and qualified labor, and acceptable competitive conditions through transportation rates and preferential trade agreements.

The agroindustrial sector in eastern Bolivia has a modern dynamic. It uses capital-intensive production techniques that result in internationally competitive levels of productivity. It is one of the sectors that has contributed the most to the country’s non-traditional export growth.

The agroindustrial products produced in Bolivia include sugar, soybean seed (soybean), soybean oil, and white rice.

Agricultural Subsector

Agriculture in Bolivia is developed through two systems, a traditional one practiced in the highlands and part of the valleys, and a modern one found in the plains area (also called the eastern area).

The traditional system tills the land by animal traction, and no supplementary irrigation is used. Under this system are farmers of potatoes, barley, and similar products. In recent years, some peasant groups have begun to grow crops using solar tents and fairly sophisticated irrigation systems, allowing them to increase their products’ variety, quantity, and quality.

Modern agriculture investing in Bolivia is characterized by specialized machinery, fertilizers, and supplementary irrigation, practiced in part of the country’s valleys and the eastern region.

Among the immense variety of agricultural products produced in Bolivia, we can include:

• Cereals include corn, rice, wheat, barley, quinoa, and oats.
• Tubers include cassava, sweet potato, and a wide variety of potatoes.
• Vegetables and greens such as peas, broad beans, garlic, onion, beans, tomato, carrot, squash, chard, and other similar products.
• Stimulants like cocoa, coffee, cocoa, and tea.
• Fruits include banana, pineapple, orange, tangerine, grapefruit, strawberry, grape, apple, custard apple, avocado, peach, pear, and other exotic varieties.

Livestock subsector

Investing in Bolivia in the livestock-producing regions is subject to the type of natural grassland in the territory and the aforementioned agricultural areas.

Investing in livestock production in Bolivia is classified as follows:

Bovine cattle is comprised of the raising of this cattle throughout the Bolivian national territory, constituting the east as the most crucial breeding area due to the ease with which the animals adapt to the natural conditions of the plains and the important levels of export made from that region to Brazil and Peru.

Breeders in that region of Bolivia pay particular attention to breed improvement techniques, such as artificial insemination.

Cattle is intended for reproduction, general consumption, and milk production. In this sense, the central valley of Cochabamba and the joint area of Santa Cruz, La Paz, the valleys of Tarija, and Chuquisaca have the most significant number of dairy cattle.

Sheep are generally raised in the highlands and valleys.

Swine cultivation is destined mainly to produce meat for mass consumption and the industrial production of sausages. The main breeds cultivated are the Duroc Jersey, Poland Chine, Landrace, and Hampshire. The Creole pig is an additional alternative to raising this type of animal.

Camelids have their center of origin in the Andean Cordillera, the highlands, and part of the valleys, with many llamas, alpacas, vicuñas, and guanacos. The vicuña is an animal with very fine wool, but hunting it is prohibited. Despite its meekness, it is an animal that cannot bear life in captivity. The llama and alpaca wool fiber are valued for making garments. Llamas and alpacas are used as pack animals.

Goat farming is mainly centered in the southern part of the country, in the valleys of Tarija and Potosí.

Equine animals are found in the eastern plains and are used as mules to care for livestock.

Rabbit farming is one of the most developed activities in recent years, especially in the departments of Tarija, Cochabamba, Oruro, and La Paz. The raising of these animals is intended mainly for the manufacture of clothing.

Poultry resources in Bolivia are vital, with several modern and well-equipped farms supplying meat and eggs. The departments of Santa Cruz, Cochabamba, and La Paz are at the forefront of poultry production.

Investing in Bolivia: The Energy Sector

Bolivia’s energy potential is enormous. Added to this is the fact that Brazil – the most important economy on the sub-continent – represents a market with almost unlimited demand for electricity and derivatives. Hence, the possibilities for private investment in this sector are significant.

Bolivia has the potential to generate 39,500 MW of hydroelectricity. This figure has been certified by the Latin American Energy Organization. This means that 176,000 GWh could be generated annually. Only 4% of this hydroelectric potential is being used to generate electricity. So the opportunities for more business in the power generation sector are plentiful.

The country also has significant potential to generate geothermal electricity in the Laguna Colorada area, located in the southwest of Bolivian territory. In January 1998, the Federal Electricity Commission of Mexico (FEC) certified that the potential of this area was approximately 120 MW for 25 years. After carrying out the respective studies, the FEC recommended the implementation of the project through the installation of two generating plants with an individual capacity of 60 MW.

The construction of the gas pipeline to Santa Cruz – São Paulo has also enabled the creation of alternative projects, including electrical and hydroelectric projects, all to supply the demand in the Brazilian market. Since the exploitation of gas in Bolivia possibly exceeds the volumes demanded by Brazil, the production surpluses may be used to generate electricity and, therefore, for greater possibilities for investing in Bolivia in this sector.

Financial Investing in Bolivia

The financial sector in Bolivia mainly comprises banking institutions, insurance companies, pension funds, private monetary funds, and stock brokerage agencies, which mobilize the resources of the financial system. Said institutions are regulated by the Central Bank of Bolivia, the Superintendence of Banks and Financial Entities, and the Superintendency of Pensions, Securities, and Insurance.

The financial policy adopted in Bolivia has as central objectives macroeconomic stability, strengthening of the financial system, a sustained increase in the levels of internal savings, and efficient administration of external savings (all part of macroeconomic stability ).

The Bolivian financial system has evolved rapidly in recent years and is catching up with those of the most important Latin American countries. It offers a wide range of services, including lines of credit, foreign exchange markets, trusts, leasing, safe deposit boxes, teleprocessing, credit cards, ATMs, brokerage services, etc.

The country has fourteen commercial banks and several other financial entities with unique characteristics. Among the commercial banks, four are branches of multinational financial institutions (Citibank, Banco Real, Banco de la Nación Argentina, and Banco de Crédito del Perú), and the rest (more than 50 % of their capital stock) are owned through foreign private participation.

Manufacturing

Manufacturing industrial activity has grown significantly in recent years as the country enters a stage of greater competitiveness and expansion of markets for manufactured products. In this sense, the following three subsectors can be highlighted:

Textiles and Clothing

Taking advantage of the variety of cotton, alpaca, angora, and llama fibers, Bolivia has been significantly increasing the production of fabrics and clothing, gradually achieving tangible quality improvements.

Bolivia is very competitive in clothing due to the low labor cost and high quality of raw materials. Taking advantage of national genres, some foreign companies are producing and acquiring the following types of garments:

• Knitted fabrics in different gauges.
• Hand-woven garments.
• Garments are made with special alpaca, angora, sheep, and

The leather processed in Bolivia has optimal characteristics of thickness, color, texture, and finish so that it can be used to manufacture products destined for the international market.

Most of the leather processed in the country comes from the eastern zone, and approximately 50% is used for manufacturing footwear, 30% for manufacturing clothing, and the remaining 20% for producing leather goods.

In short, investing in Bolivia has evidenced that industrial manufacturing is experiencing sustained growth and offers exciting investment opportunities.

Telecommunications

With the capitalization of the state company ENTEL, Bolivia has taken a significant step toward modernizing telecommunications services throughout the country. Among other things, the transfer of the administration of this company to Italian control has led to levels of investment in state-of-the-art technology, training of human resources, and infrastructure never before experienced in the sector.

The capitalized ENTEL has linked most of the national territory with fiber optics, making the country a South American ” Hub ” for telecommunication services. The objective of the present administration is to make the conversion of the country into the “distributor and liaison center” of services in the sector a reality. The new ENTEL investment has given this objective strength and realism.

Finally, telephone service cooperatives throughout the country will pass into the hands of the private sector. This situation will only reinforce the many changes that have already taken place in the industry and will improve the country’s ability to attract private capital, not only to the sector but also to others that depend on an agile and efficient telecommunications service with a wide range of products designed to meet the demanding demands of the business sector. Among the new services that will be provided in the country soon, there is Fixed Cellular Telephony. This is a service subject to international bidding in the immediate future.

Transportation

Bolivia is investing considerable financial resources in road infrastructure. Bolivia will be connected by first-rate road infrastructure with all neighboring countries, so its goal of becoming the link and transit point of the subcontinent can become a reality.

The General Law of Concessions of Public Transport Works is a legal instrument allowing private interests to participate in the construction, rehabilitation, and administration of public works (roads, bridges, airports, etc.) throughout the country. It is expected that private participation in the sector will increase considerably.

Through this Law, the State will allow the private investor to recover their investment in public works through the collection of tolls, administration of supplementary hotel services, administration of gas station services, and others. Private activities in the sector will enable efficient administration of the road infrastructure and facilitate further development of the sector and other industries in the national economy.

The Integration Corridors (five in total) will integrate the country with its neighbors and facilitate the transportation of products, particularly for the export of national goods. The Corridors require more than 5,000 miles of roads to link Bolivia with neighboring countries. More than 70% of this total has been built. Completing the corridors will increase trade with the subcontinent countries and generate more significant business opportunities and activities within the country.

Bolivia has road connections to neighboring countries and access to ports on both the Pacific Ocean and the Atlantic Ocean.

Tourism

Located in the heart of South America, Bolivia is a land of contrasts, with regions of high mountains, prodigious valleys, and vast Amazonian plains. Therefore, its tourist attraction is based on its great variety of natural, archaeological, architectural, artistic, and folkloric resources and the multiculturalism expressed in its people.

The city of Potosí was designated a World Heritage Site by UNESCO due to its invaluable contribution to the history and culture of the New World and Spain. It was the most important city in the Americas in the 16th century. Its silver production during the colonial era was of such magnitude that, to date, it has not been possible to quantify accurately. On the other hand, the city of Oruro is considered the capital of Bolivian folklore for its incomparable carnival. On the other hand, Sucre is the city that preserves the most beautiful colonial style. It is a reflection of the dawn of the Republic.

La Paz is a city where the Aymara influence and the reality of a modern town come together. It is surrounded by majestic snow-capped peaks, among which the Illimani stands out clearly, standing over the city like a motionless sentinel. Approximately 45 minutes from the city is Lake Titicaca, the highest in the world and cradle of great cultures, whose archaeological legacies are shown in the important ruins and offer an idea of the high degree of civilization reached by the inhabitants of this region.

Santa Cruz, Beni, and Pando, cities with tropical characteristics, are considered future cities. The enormous business activity in Santa Cruz confirms this prediction and suggests a promising future for the inhabitants of these beautiful lands.

Cochabamba and Tarija, cities located in the Bolivian valleys, are calm and pleasant places with a pleasant climate, many tourist attractions, and the particular hospitality of the locals. Investing in Bolivia will encompass investment in the country’s tourism sector.