An End of the Year with Heterogeneous Performance

Economic activity in the last few months of 2025 displays a heterogeneous picture, with a sectoral configuration advancing at different rhythms and with determining elements to approach the performance of the Peruvian economy in 2026, a year marked by national-level elections. According to the latest Current Economic Activity Progress Report by the National Institute of Statistics and Informatics (INEI), three sectors are expected to move by the end of 2025: electricity, manufacturing, and construction, linked to the dynamics of domestic demand and private investment recovery. These sectors are part of a larger framework of industrial sectors in Peru with varying levels of dynamism.

Sectors That Move the Economy in the Final Months of 2025

Electricity: A Confirmation of Productive Recovery

The electricity subsector registers an increase of 3.31% in October compared to October 2024. This subsector is highly correlated with productive activity; therefore, the registered increase points to a higher use of installed capacity in industry, commerce, and services, a key signal given the weight of the industrial sectors in Peru in sustaining national output.

Manufacturing: A Moderate Recovery Sustained after Volatile Months

The manufacturing sector registers a growth of 1.73% in September, corroborating a moderate recovery. This behavior results from two components: primary manufacturing, related to fishing and natural resource processing, and non-primary manufacturing, related to consumer goods and intermediate goods manufacturing. As one of the most relevant of the industrial sectors in Peru, this sector is key to economic diversification and job generation.

Construction: The Most Dynamic Sector

Construction has been the most dynamic sector, driven by rising domestic cement consumption. In October, this indicator rose by 9.1%, following a healthy 11.15% increase in September. This pattern points to an increase in the execution of private works, real estate projects, and self-construction activities. In the same way, capital goods and construction materials imports rose by 12.8% in October, pointing to the continuity of investment in expansion and machinery renewal in the industrial sectors in Peru that are based on infrastructure development.

Sectors That Mark the Deceleration at the End of 2025

Hydrocarbons: A Continuation of the Downward Trend

The hydrocarbons sector registered a decrease of 6.59% in October due to the contraction in the volumes of oil and natural gas. This reflects, once again, the operational and investment challenges that have been affecting the sector for years.

Agriculture: Moderate Growth but with Structural Gaps

The agricultural sector grew 4.21% in October, with mixed results between crop and livestock. Although positive, its growth is more modest compared to other sectors of the economy, due to productivity gaps, limited access to technology, and greater vulnerability to climate.

Public Investment: A Relevant Source of Deceleration

Central government spending on public investment registered a year-on-year fall of 6.59% in October. This is the fourth consecutive month of year-on-year variation in the negative. This also directly affects infrastructure works, equipment purchases, and multi-year investment in transport, sanitation, education, health, among other areas.

The Outlook for 2026: A Year of Elections and Economic Consequences

Electoral Cycles and Public Investment Execution

There is a recurrent pattern during electoral cycles: a slowdown in public investment execution during pre-electoral years. For example, in 2016, year-on-year execution fell to 70.4%, one of the lowest levels in a decade. In 2021, the performance was slightly better, but still below the level of 2022. This occurs, among other factors, by stricter control, by changes in technical teams, and by greater administrative caution.

The Counterpart of Weaker Public Sector: Private Investment

In this environment, where lower public sector execution is expected, the behavior of private investment will be central. Its performance, however, will be determined by factors such as political stability, macroeconomic conditions, and business expectations throughout the electoral process.

Business Expectations: Optimism with a Grain of Caution

According to the Monthly Macroeconomic Expectations Survey by the Central Reserve Bank of Peru (BCRP), the business environment in Peru is in optimistic territory. In November, 16 out of 18 indicators crossed the threshold of 50 points. Expectations for the economy 12 months ahead closed at 63.9 points, and the variable expectations for the firm’s situation at 12 months closed at 70 points. Both of these signal constructive sentiment in the medium term. However, the indicators related to investment and hiring at 12 months turned slightly lower, signaling greater caution in the context of the 2026 elections.

What to Watch in 2026: Variables to Follow

For 2026, several factors and indicators will be determining the performance of the Peruvian economy, both in the short term and in the medium term, among them are:

1. Construction: the key is that it continues at high levels and multiplies.
2. Fiscal revenues and, indirectly, the external sector: due to the normalization of metal prices, a substantial contribution is still expected, but with more moderate growth.
3. Public investment: It is to be expected that its pace will significantly decelerate in the pre-electoral months.
4. The reaction of the private sector to political uncertainty and electoral information.
5. Macroeconomic conditions: an adequate macroeconomic environment is key to generating positive signals for private investment. In this sense, the Peruvian economy heads into the year with low inflation, a stable exchange rate, and strong private consumption.

Conclusion

As 2026 begins, the performance of industrial sectors in Peru and the dynamics of demand, investment, and public spending will determine its capacity to continue with the stable growth of recent months. The continuity of construction, manufacturing, and electricity activity will be key for the second half of the year, in which the impact of the election results may start to be reflected, as well as the behavior of other productive sectors. In the short term, key variables to follow will be related to construction and its multiplier effects, the evolution of metal prices and their effect on exports and fiscal revenues, the magnitude of the pre-electoral public investment deceleration, and the reaction of the private sector to political uncertainty. In the context of the 2026 elections, uncertainty about economic performance is relevant, but with better macroeconomic conditions, domestic factors, and signals from political actors, Peruvian society and the business sector will be able to look at the year with more confidence.

Paraguay’s maquila system has drawn particular attention from Brazilian companies over the past few decades, with businesses expanding across the border in significant numbers to take advantage of Paraguay’s tax system. Brazilian news outlets recently noted the scale of investment on Paraguayan soil by Brazilian companies. The amount of Brazilian companies in Paraguay has been on the rise over the past few decades, partly as a result of the maquila system and the benefits that Paraguay can offer companies under this law, and also because the tax advantages offered by Paraguay have acted as a draw for foreign companies that have since set up business in Paraguay and changed the country’s industrial model. Folha de São Paulo reports that approximately seven in ten maquila regime companies that have arrived in Paraguay over the past 25 years are Brazilian.

Key Brazilian Sectors Expanding in Paraguay

The most important sectors for Folha are those involved with footwear production, the companies within which have seen considerable growth over recent years. The report indicates that there are a total of 203 active footwear companies under the maquila system by the end of 2024. There has been a particular increase in the number of Brazilian companies along the border, which has jumped in number by 182 since 2014. This growth is clearly important for the presence of Brazilian companies in Paraguay, with a number of Brazilian footwear producers moving part of their operations to Paraguay.

Grupo Lupo Begins Construction of New Investment

A story reported in the media that appears especially relevant for the continued growth of Brazilian companies in Paraguay is the case of Grupo Lupo, a textile company that was founded almost a century ago. In January, Grupo Lupo’s executives announced to investors the opening of the company’s first factory outside Brazil, in Ciudad del Este near the border with Foz do Iguaçu. The investment by Lupo is reported to be about 30 million Brazilian reais, with the new factory becoming part of the company’s strategy to expand in South America. The new company will produce 20 million pairs of socks a year and will generate 350 direct jobs. Lupo estimates that the factory will be running at full capacity by 2026. This case is also notable because it shows that the presence of Brazilian companies in Paraguay is not limited to sectors traditionally connected to maquila; Brazilian companies in Paraguay are starting to look for new ways to diversify operations to gain new market share, while also having a smaller fiscal and logistical impact.

Previous Investments: Guararapes, Texcin, and Estrela

The report by Folha also returns to a number of investments made by large Brazilian companies in the early days of the maquila boom. Guararapes (parent company of Brazilian retail chain Riachuelo) and Texcin were the Brazilian partners in an investment made between 2014 and 2015 to create a large center for garment production in Paraguay, a joint venture of USD 10 million. This venture was significant, as it generated around 2,000 jobs and thus had a pivotal impact on the apparel industry in Paraguay. Guararapes’ investment is connected to several other investments made by Brazilian companies along the border. The following year, one of Brazil’s more well-known toy manufacturers, Estrela, also opened a production plant in Paraguay. This case, along with those mentioned earlier in the report, helps put the situation of Brazilian companies in Paraguay into context. These investments show that, across different industries, from textiles to manufacturing and consumer goods, there were companies that identified the opportunities offered by Paraguay’s maquila regime.

Brazilian Companies in Paraguay: The Attraction of Paraguay’s Maquila System

The article reports that Paraguayan authorities have set a particular focus on the attraction of textile companies, as well as those that work with plastics and auto parts. The industries that operate under these categories currently represent 58.1% of all maquila regime companies, according to Paraguay’s Ministry of Industry and Commerce. The data released on Paraguayan exports indicate that in 2024, Brazilian companies in Paraguay produced around 60% of all products exported by Paraguayan maquiladoras and that these were destined for the Brazilian market. The same source shows that the number of maquila-certified industries in Paraguay was 292, with Brazilian companies in Paraguay representing 71% of these. These figures show how the relationship between Paraguay and Brazil is so integrated with the maquila system. For every 1% increase in the Brazilian GDP, the Paraguayan maquila exports increase by 4.1%, on average. These are all signals that Brazilian companies in Paraguay will continue to grow, using Paraguay as a platform for optimized production that can be directed at regional and even global markets.

 Tax Benefits in Paraguay and the Legal Framework

The Paraguayan maquila law also allows companies to establish a legal entity in the country, which has some important benefits that have made Paraguay particularly attractive for these Brazilian companies. Tax exemptions, zero duties when importing capital goods, raw materials, and services, and the payment of a tax of 1% of the value of exports are among the advantages of Paraguay’s maquila system. Paraguay’s maquila law took shape in the year 2000, with the publication of a decree to regulate its application, and the first maquila operations took place in the second half of 2001, as informed by Paraguay’s National Institute of Technology, Standardization, and Metrology. The close integration between Brazil and Paraguay is also clear within the maquila system, with every 1% increase in Brazil’s GDP resulting in a 4.1% increase in Paraguayan maquila exports. Maquila exports represent 68% of Paraguay’s total industrial exports, growing in recent years at an average rate of 20%.

Paraguay to Expand on the Attraction of Brazilian Companies

Natalia Cáceres, Executive Secretary of the National Council of the Export Maquila Industry, also stated that Paraguay plans to attract more Brazilian investors and strengthen this trend by participating in major trade fairs and international business events, highlighting the qualities of Paraguay’s industrial fabric. Cáceres emphasized that it is not about ‘dragging’ the industries out of Brazil. In fact, the country seeks to join with them so that they can improve their competitiveness. The country has a cost-efficient environment that complements the advantages of Brazilian industry. This type of message is important as it shows a longer term outlook for the growth of Brazilian companies in Paraguay. For Paraguay, the presence of Brazilian companies in Paraguay continues to be a very important tool to use to export production to regional and global markets in the most optimized way.

Existing Challenges for Maquila Industry: Credit and Labor

On the other hand, some business leaders have also highlighted certain issues, such as the lack of easy access to credit in Paraguay, as well as a shortage of skilled labor. In fact, these factors have been barriers that have limited the growth of production in certain areas of specific industries, even with the presence of tax advantages. The government has stated its commitment to working with other Mercosur countries to increase credit lines for the maquila sector and to improve training for the labor force. By the end of December, companies registered in the maquila system already had almost 30,000 people employed, which generated twice as many indirect jobs. The government has indicated its intention to continue increasing the participation of the maquila sector in the economy. Upon taking office in 2023, President Santiago Peña promised to create 100,000 new jobs in the maquila industry by 2028, reiterating his position that his government will not be raising taxes to attract new investors.

Conclusion

To summarize, the maquila industry in Paraguay, particularly with the entry of Brazilian companies, is a market with a clear and constant trend of growth, in part determined by how Paraguay has managed to incorporate itself into the productive development of its neighbor. The convergence of several favorable factors, such as tax exemptions, cheap labor, and access to Brazil, has made Paraguay a country that companies, from footwear and textile companies to Brazilian companies dedicated to the production of consumer and auto-parts, have used to set up operations that will allow them to be more efficient or diversified. This is evidenced by the Grupo Lupo factory, Guararapes, Texcin, and Estrela projects. However, the development of the maquila industry in Paraguay should also be accompanied by improvements in challenges such as credit and the lack of technically trained personnel. In this way, the maquila industry in Paraguay is certain to continue to grow in the coming years, with the introduction of policies that support international projection and infrastructure improvements, generating better jobs and a stronger position in the South American market.

The Dominican Republic has a strategic geographical location and strong connectivity to important trade routes that have made it a potential key logistics hub to move goods through the Caribbean and Central America efficiently. To this end, public and private sector investments have sought to make the Dominican Republic a logistics hub that can respond to growing trade volumes. Recent government investment initiatives, modernization efforts at national ports, and foreign trade activity have laid the groundwork to turn the Dominican Republic into a logistics hub.

Significant Investment in Ports

The Dominican government and the private sector have invested US$531.5 million in the national port system. Dominican President Luis Abinader announced that a modernization program at national ports has increased financial results, while the special agreement allowed to pay off debts amounting to RD$1.3 billion, to double the income of the Dominican Port Authority (Apordom), and to increase monthly collections from RD$56 million to RD$140 million. In this context, it is essential to make the Dominican Republic a logistics hub, ready to meet the demands of international trade and current market needs.

Foreign Trade Activity

Foreign trade activity is another indicator that sets the tone to turn the Dominican Republic into a logistics hub. According to the National Statistics Office (ONE), 65.5% of Dominican exports in 2024 were carried out through maritime channels, a year-on-year increase of 6.1%. Haina Oriental Port accounted for the majority of export activity, totaling US$4,170.4 million, followed by Las Américas International Airport with US$3,363.4 million and the multimodal port of Caucedo with US$2,228.9 million.

The increase in volume represents growth and the country’s strategic intention to optimize the operation of the ports of the Dominican Republic, to allow a more fluid transit of goods and services to the various markets in the world. The investment in infrastructure for cargo terminals and infrastructure, as well as the decision to improve operational efficiency, has allowed the Dominican Republic to position itself as a potential logistics hub for the region.

Network of Specialized Ports

In the Dominican Republic, there is a network of ports of various types and specializations that allows the management of a wide variety of goods in transit. Here are some of them:

• Arroyo Barril (Samaná): This port handles general cargo and also accommodates cruise ships.
• Azua: This port specializes in the reception and dispatch of liquefied petroleum gas, as well as cement and clinker.
• Barahona: Another specialized port in gypsum, salt, and cement exports.
• Boca Chica: A port that was built to service the sugar industry and that now receives containers and tourist ships.
• Manzanillo (Montecristi): It is another multimodal port that receives imports of clinker and exports refrigerated containers of bananas.

Puerto Plata, San Pedro de Macorís, Cabo Rojo, Amber Cove, La Romana, and Caucedo are other important ports for transit. The diversity of facilities and infrastructure reinforces its potential to make the Dominican Republic a logistics hub.

Competitive Context

The average score for Latin America and the Caribbean on the 2023 Logistics Performance Index (LPI) was 2.7 out of 5.0, below the global average of 3.0. Panama, Mexico, Chile, Argentina, and the Dominican Republic reported a decline in their scores, while other indicators improved (infrastructure from 2.5 to 2.6, quality of logistics services 2.7, and tracking and tracing 2.8). Brazil had the best score in the region at 3.2, followed by Panama at 3.1. Venezuela, Cuba, and Haiti were at the lower end of the scale.

To turn the Dominican Republic into a logistics hub, it is necessary to work on the operations of ports and logistical nodes, in addition to improving the quality of service and increasing supply chain efficiency. With these actions, the country could compete with other regional countries that are in the logistics business.

Expert Insights

According to Phany Benítez, Business Manager of PHIA Logistics, the Dominican Republic’s geographical location, together with its direct connections to the U.S., Mexico, Central America, and the Caribbean, makes it an ideal destination for transit and redistribution of goods. She also points out that DP World Caucedo, in Boca Chica, “is the one that receives the highest number of containers, both in imports as well as in exports, and continues to be the first gateway in foreign trade of the country.”

Caucedo, added the expert, stands out for its modernity, in terms of infrastructure, technology, and handling of containerized cargo, and is among the best ports in the Caribbean. The Haina River Port is also one of the main ports, but it is an older port with a smaller draft. It has, however, been working on its expansion to receive more vessels and streamline operations to be able to efficiently receive bulk cargo, fuel, vehicle imports, and a large diversity of merchandise.

Efficient Ports for both Importers and Exporters

Both Caucedo and the Haina River have efficient facilities that meet the operational needs of importers and exporters, according to Benítez. While Caucedo is better equipped for containerized cargo and large shipments, Haina, for its part, offers logistical advantages for bulk cargo and certain imports that do not require containerization. They are two complementary ports in their own way, and they are at the center of the plans to make the Dominican Republic a logistics hub.

Operational Challenges

As challenges, it has been reported that operations have been affected on some occasions by a lack of chassis to pick up and return containers to the shipping lines. This, to a greater or lesser extent, slows down some processes and has generated some congestion in some cases. As such, for the Dominican Republic to be a logistics hub, it must have investments in infrastructure and technology, as well as more operational efficiency to efficiently handle the growing volume of trade in an increasingly competitive context.

Export Markets

Dominican exports have a strong presence in the United States, the European Union, and Canada, among others. Products such as cocoa in all its forms, fresh and dried banana, cigars, jewelry, and pharmaceuticals have high demand in the international market. The expansion of port capacities and the reduction of bottlenecks in logistical operations are important measures to turn the Dominican Republic into a logistics hub that can support these and other high-value export products and services.

Conclusion

With strategic investments and positioning, in combination with a modern port infrastructure and improved operational efficiency, the Dominican Republic has taken major steps to make itself a leading logistics hub in the Caribbean region. The combination of factors such as public-private investment initiatives, the network of specialized ports with competitive advantages, and foreign trade activity, reinforces the competitive advantages of the Dominican Republic as a potential logistics hub. Solving operational bottlenecks and continuing to invest in new logistics and technological infrastructure are essential to make the Dominican Republic a logistics hub recognized in the region and abroad.

Energy and Mining Coordination Secretary Daniel González: “We Are Going to Decide in the Summer of 2026”. Here Are the Projects Approved So Far.

Summary: The government of Javier Milei is considering extending the deadline for companies to enroll in Argentina’s large investment incentive regime (RIGI) for private-sector projects by one year, given the ongoing interest shown by companies. This decision will be taken in the summer.  In the event that the libertarian government does not extend the deadline, the period for submitting projects for approval will close in July 2026.

Daniel González, the national secretary of Energy and Mining Coordination, has stated that the large investment incentive regime has received more than 27 applications in the energy and mining sector. He has also added that there are other projects currently in the preparation stage.

The Decision to Extend Should Be Made This Summer

“There hasn’t been a formal discussion about an extension yet, but the decision should be taken this summer, as the regime ends in July 2026. I would personally recommend an extension, as it is the kind of economic model we are aiming to achieve: with no export taxes, fewer taxes, and with a streamlined bureaucracy,” the national secretary said.

At the moment, the companies have two years from when the regime went into effect to enroll. Nevertheless, the national government can extend the deadline once for a period of up to one year after the initial deadline.

In case the government decides to extend the scheme for large investments, companies will be able to submit projects until July 2027. After that date, the possibility of benefiting from the economic perks of the legislation will close.

Large Investment Incentive Regime in Argentina

The large investment incentive regime in Argentina is currently seen as a flagship of the pro-market measures promoted by the Milei government. An extension of the deadline would provide a greater level of certainty to investors who are structuring long-term capital-intensive projects.

So far, there are nine approved projects, including the multipurpose port project in Timbúes, Santa Fe. The total accumulated investment reached USD 24.8 billion, according to data from the Ministry of Economy.

Key features of RIGI that have made it so attractive to foreign companies are the reduction of the corporate income tax rate from 35% to 25%, the elimination of export duties, the ability to credit VAT in the pre-operational phase and the recognition of international arbitration in case of legal disputes. These characteristics have strengthened the attractiveness of the large investment incentive regime in Argentina as a framework for capital-intensive projects.

Approved Projects

• YPF: The state-owned energy company is building a solar park, El Quemado, in the province of Mendoza. The USD 211 million project will be developed in two phases: the first will have a capacity of 200 MW, while the second phase will increase it by another 105 MW.
• YPF, Pan American Energy (PAE), Vista, Pampa Energía, Pluspetrol, Chevron, and Shell: The Vaca Muerta Sur Project is estimated to require an initial investment of USD 2.486 billion, which could increase up to USD 3 billion. Infrastructure will be built in Neuquén and Río Negro with the goal of doubling Argentina’s oil exports over the next two years. This pipeline system would support oil exports of up to 700,000 barrels per day, the equivalent of USD 17 billion at USD 68 per barrel.
• Southern Energy (Pan American Energy (PAE) and Golar LNG): The companies will place a floating liquefaction unit in the Gulf of San Matías, Río Negro, with a view to producing liquefied natural gas (LNG). The investment is estimated at USD 2.9 billion over the next decade and USD 6.878 billion over the 20-year life of the project.
• Rio Tinto: The multinational has announced a new investment of USD 2.724 billion to expand the Rincón Lithium project in the province of Salta. This project includes the construction of a new plant and the expansion of the current capacity to produce battery-grade lithium to 60,000 tons a year.
• Sidersa: The company will make a new investment of USD 296 million in a state-of-the-art steel plant to produce up to 360,000 tons of long steel products a year in San Nicolás, Buenos Aires Province. The goal of the project is to produce “green” steel by using innovative and more environmentally friendly technologies. This investment would create more than 300 direct jobs and 4,000 indirect ones.
• PCR and Acindar: These companies will build a new wind farm in Olavarría, which will require an investment of USD 255 million.
• Galán Lithium: The Hombre Muerto Oeste (HMW) project, in Catamarca, needs an investment of USD 217 million to produce high-quality lithium chloride. By 2029, associated exports are expected to reach USD 180 million a year.
• Los Azules Project: Led by McEwen Copper, the Los Azules copper exploration and mining project is located in San Juan. The estimated investment required for this project is USD 2.672 billion.
• Timbúes: A multipurpose port will be built in Santa Fe with a new investment of USD 277 million. The project will have storage capacity for fertilizers, iron ore, steel products, grains, and fuels.

Conclusion

As the Milei government considers whether to extend the RIGI enrollment period by a year, the sheer size and number of approved projects illustrate the increasing relevance of the regime on the country’s investment agenda. With close to USD 25 billion already committed across energy, mining, infrastructure, and industrial development, the large investment incentive regime in Argentina is fast becoming a cornerstone of the administration’s strategy to attract long-term capital and double export capacity in a two-year horizon. An extension into 2027 would provide both local and international companies more time to structure complex high-value projects and could potentially broaden Argentina’s strategic investment pipeline. Whether the deadline gets extended or not, the projects already approved so far signal a renewed confidence in the economic direction of Argentina and a clear bet on the sectors that can drive the country’s sustained growth in the coming years.

Colombia has long discussed competitiveness, integration into global markets, and the need to fortify its supply chains. However, few regions have the geographic, economic, and infrastructural conditions to become the undisputed heart of logistics at the national level.

The Valle del Cauca does. Not because of regional egotism or a rhetorical opportunity out of touch with reality, but because of its geoeconomic positioning and geographic advantage.

The Valle is the only region in the country that has direct access to the Pacific Ocean, an international airport in a privileged location, and a mature ecosystem of high-performance free trade zones that is the envy of other Colombian regions.

In short, the Valle has a privileged position that unites Colombia with the main commercial arteries of the Americas and Asia.

Undeniable advantage

Despite these advantages, however, one fact is incontrovertible: Valle del Cauca has not yet taken the necessary steps to be the logistics hub of the country. It has the tools, the geography, the business community, and even an industrial tradition and know-how. What it lacks is a long-term, unified project and a vision of a logistics platform with scope and scale.

Here is where the Valle must become more ambitious. Because if Colombia is serious about taking on that future, that projection must be given by the region that has all the competitive advantages to offer it.

Valle del Cauca’s geographical position and logistics potential make it one of the country’s most competitive, connected, dynamic, and supply-chain-capable regions.

It has the conditions to be the central axis of national exports and a reference in Latin America in terms of logistics.

Airport: the starting point of a new era

The airport will be the best starting point to think of this new logistics era. The Alfonso Bonilla Aragón International Airport was built almost by accident as a passenger terminal and has been mutating over the years into an airport with increasing importance in the cargo sector.

However, its current physical and operational infrastructure does not meet either current demand or the region’s growth projections.

Expanding the cargo terminal, generating a specialized logistics airport, and designing an uninterrupted connection with the distribution centers in northern Cali and the free trade zones of Palmira are tasks that are not on the drawing board. They are pending points on the to-do list.

The airport must be seen today not only as a terminal of connection and transit for passengers, but as a full-fledged logistical node that is capable of servicing air cargo, supporting international supply chains, and facilitating the movement of high-value goods.

The region’s airport must, in the coming years, be a natural complement to what is proposed for the port of Buenaventura. If the Valle del Cauca aspires to be the logistics hub of Colombia, the airport must be modernized, expanded, and synchronized with all the industrial and commercial corridors and freeways. It must become a truly attractive platform for air logistics operations. A platform that, in addition to attracting new investment, would also stimulate export activity and would even reduce congestion on the land corridors already saturated in the region.

Buenaventura: the gateway that must be reinvented

A modern and digitized airport is not enough. Buenaventura Port must also be a must for the region to develop a modern logistics platform. Buenaventura is the main gateway of Colombian foreign trade. It moves more than 40% of the total volume of containers entering and leaving the country.

However, in reality, it is a port operating with structural conditions that hamper its potential and the country’s competitiveness.

The first thing to do, in this case, would be to bring the port into the 21st century through a broad structural modernization of its physical and digital infrastructure. This would also involve accelerating the dredging process so as not to be left behind in the race for depth competitiveness, shortening transit times, inspections, and bureaucratic processes, and above all, endowing it with the attributes of a multimodal logistics node fully integrated with its hinterland.

Without a modern, efficient, and strong Buenaventura, Valle del Cauca does not have the conditions to become the logistics hub of Colombia. However, if the port was reformed and, in addition, joined by other infrastructure, such as a more efficient and specialized airport, and integrated with improved rail, road, and air corridors, Colombia would have a strategic platform with which to better connect with the global value chains.

Connectivity: the basis for greater competitiveness

Logistics does not work without connectivity. The region is virtually forced today to depend on a single corridor of the Cali–Palmira highway that has shown on repeated occasions that it is more than saturated and that regularly collapses in periods of high demand.

A modern logistics strategy should place the development of the regional rail network at its center, not only for passenger transport, but also for cargo and logistics. The commuter rail system Cali–Jamundí–Palmira–Yumbo must be understood today not only as an urban transport service but also as a multimodal connector that allows the efficient movement of goods and people to and from Buenaventura.

At the same time, the much-delayed highway Mulaló–Loboguerrero must stop being seen as a simple public works project and become an infrastructure of national strategic scope. This road could become a vital corridor to significantly reduce travel times, reduce the cost of cargo, and strengthen and modernize the Pacific access route to the country.

Ports, roads, railways, and intermodal connectors must, in the short term, be connected to free trade zones, industrial parks, and logistics platforms to form a true multimodal network that is able to support the strategic vision of the region to be the logistics hub of Colombia.

Free trade zones: a powerful ecosystem to unify

One of the great advantages that Valle del Cauca has with respect to other regions of the country, and which should not be underestimated today, is precisely its dynamic ecosystem of free trade zones. Palmaseca, the Zona Franca del Pacífico, CELPA, Zonamérica, CLIP, and many others are all logistical platforms that are today already an international showcase for the Valle del Cauca.

The challenge in this sense is not so much today to seek to generate more free trade zones, but rather to integrate them into a regional model that enables digital synchronization of roads, railways, air, and even port connectivity.

Homogeneity, interoperability, and shared systems of traceability between operators and nodes are a must. In the logistics and free zone systems of the most developed economies, each zone functions not as an independent territory but as a synchronized node within a chain.

A unique and shared free trade zone system would bring many advantages, in addition to greater efficiency and greater attractiveness for private investment. It would create a seamless business environment for all types of productive activities related to logistics, assembly, distribution, and high-value-added international trade.

New strategic polygons

As demand increases, the Valle will have to be prepared to generate new logistics corridors and industrial and distribution zones.

The northern region of Cali, along with the approach routes to Palmira and Yumbo, should be transformed into strategic polygons of the department with new high-capacity warehouses, automated distribution centers, and large-scale logistics platforms directly connected to the airport and even the port.

This expansion is not a luxury. It is the only way to be able to absorb the economic and logistical growth that is expected in the region in the next two decades.

If these axes are not planned as strategic industrial and logistics land developments, rising demand will quickly saturate the existing infrastructure, and will once again lose competitiveness.

Addressing the institutional framework

Even with better and more modern infrastructure, Colombia cannot advance if the actual structural bottleneck is not reformed: its institutional framework.

The customs regime should be drastically simplified and rationalized. This must involve the digitization of all processes, the drastic reduction of inspection times, the real unification of service windows, and a facilitation of cargo movement in coordination with the business community and private operators.

Countries that today have logistics hubs recognized at a global level (Singapore, Dubai, the Netherlands, Luxembourg, Ireland, etc.) did not have it because they built enormous infrastructure.

They were capable, efficient, agile states that, far from slowing down, coordinated and accompanied the private sector.

The way forward: a long-term and visionary master plan

If the Valle del Cauca has what it takes to assume a leadership role in this process of change and reinvention of the logistics platform, it is time to have a single, consolidated vision and to outline a master logistics plan for the region with a minimum horizon of 20 to 30 years.

Rigorous, technical, ambitious, and safe from political pressures, this plan must articulate the development of airports, ports, free trade zones, strategic highways, rail connectivity, new industrial development, tax incentives, technological innovation, and multimodal logistics systems.

Planning with a long-term vision is incompatible with current political thinking. A short-term vision condemns the region to inertia. Long term planning is what will allow the Valle del Cauca to be the logistics hub of Colombia.

Technology that will mark the future

Finally, in all of the above, a call of the twenty-first century must also be taken into account: the adoption of technological standards and the most advanced in terms of automation, digitization, and operational efficiency.

This encompasses the need to implement automated systems in ports and airports, blockchain systems of traceability and cargo tracking, real-time cargo monitoring technologies, platforms of connection between operators and authority in the cloud and in a continuous manner, and intelligent and technologized transportation networks.

The logistics of the future will be technological. Or they will not exist. The great logistics hubs that have developed around the world have done so with vision, discipline, and coordination.

Vision to define a clear and long-term destination; discipline to build it and coordinate all the elements that it comprises. Vision, discipline, and coordination. These are the factors that will determine the success of the places where the future will be. The same formula may also hold the key to success for the Valle del Cauca in finally becoming Colombia’s logistics hub.

Government Moves to Dismantle Low-Yield Taxes and Restore Investor Confidence

In an interview with workers at the National Electricity Company (ENDE) of Cochabamba, President Rodrigo Paz has signaled that Bolivia must restore itself as a competitive nation in order to attract investment. In reference to the recent elimination of the Bolivian wealth tax, the president signaled that the measure has had a negative impact by not only dissuading reinvestment but also by narrowing the opportunity for capital accumulation and aggravating a period of isolation. As such, the beginning of a reform process is now underway that will seek to reverse capital flight and restore both domestic and foreign confidence.

Bolivia “Became an Island”: President Warns of Lost Confidence

In remarks to the workers’ assembly, Paz explained that the wealth tax generated a sense of antagonism towards entrepreneurs and the wealthy class, such that they no longer felt incentivized to work hard or to reinvest their money in Bolivia. “If capital does not feel secure, if capital is too hotly pursued, it will always move away to a port where it can feel more protected,” the president affirmed. As a result, Bolivia became “isolated from the world,” like an island. It was in this context, he continued, that the administration began to work on repairing lost confidence among financial actors.

Capital Flight and Weak Revenue: A Tax That Cost More Than It Generated

The president affirmed that in five years, the Bolivian wealth tax has generated USD 137 million. In comparison, he estimated that roughly USD 7 billion has been lost due to capital flight, most of it in recent years. Paz has previously warned that much of this outflow has taken place due to fears about the long-term policy orientation of the country. He has cited the example of merchants in El Alto who operate in Bolivia but deposit their savings in banks in Chile. For this reason, Paz said that the state must act with more consistency and avoid the enactment of measures that “chase capital away.”

A Broader Decline in Investment: Only USD 247 Million in FDI

Foreign Direct Investment (FDI) has also suffered in recent years, with the president warning that USD 247 million is a paltry sum that will not suffice to grow the nation’s energy, agricultural, industrial, and logistics sectors. Paz explained that the wealth tax, in particular, has served to signal high risk to both domestic and foreign investors by demonstrating that the country’s climate is not stable for the medium or long term. With neighboring countries like Chile, Peru, Argentina, Brazil, Colombia, and Paraguay updating their tax and investment rules, Paz said that Bolivia must do the same.

Government Unveils a Comprehensive Fiscal Reform Package

To this end, the Paz administration has announced a fiscal reform that will eliminate four low-yield taxes: the Financial Transaction Tax (ITF), the wealth tax, the gaming tax, and the tax on the promotion of businesses. Officials say these taxes generate less than 1% of revenue while at the same time creating market distortions and inhibiting businesses from developing. In this way, it is hoped that the withdrawal of the Bolivian wealth tax and related taxes will send a message to domestic and foreign investors that the administration is serious about streamlining the tax system and promoting development.

Support from the Private Sector: “Regressive and Unnecessary” Taxes

The reform has enjoyed a largely positive response in the private sector, with the Confederation of Private Entrepreneurs of Bolivia (CEPB) using similar language to describe the now-dissolved taxes as “regressive and unnecessary.” Business leaders have long held that the Bolivian wealth tax and others like it serve more as an administrative burden with little fiscal benefit to the nation. In this way, the administration’s reforms offer an opportunity to renew dialogue with a private sector that itself demands an increase in investment and job creation.

Rebuilding Business-Government Dialogue

In many ways, the decision to remove the Bolivian wealth tax is seen as an opportunity to improve business-government relations. In the past, polarization and public policy that excessively privileged state-owned enterprises had soured these relations. With the elimination of the wealth tax, many business leaders have signaled that Bolivia is taking a step towards a more market-friendly and inclusive framework.

Minister Espinoza Defends the Tax Rollback

“The Wealth Tax Triggered Capital Flight”

Echoing the president, Minister of Economy José Gabriel Espinoza has further defended the need to eliminate the Bolivian wealth tax. He has said that the tax was directly responsible for capital flight and for negatively affecting foreign investor confidence. Espinoza has cited external companies that see Bolivia as a high-risk market in the face of unpredictable policy shifts and a lack of clarity in the regulatory system. Eliminating the Bolivian wealth tax is fundamental, he said, for beginning to rebuild stability and reestablishing Bolivia’s competitiveness in the investment community.

The 2026 Budget Overhaul: Aiming for a 30% Spending Reduction

Restoring Fiscal Balance and Rebuilding Credibility

The tax reform is only one part of the government’s program to rebuild international credibility and restore fiscal balance. In this direction, the administration has committed itself to reducing state spending by at least 30% in the 2026 General State Budget. This move, which would reduce the fiscal deficit, is in part intended to stabilize and recalibrate public finances as the government looks to reform the tax system by eliminating distortive levies like the Bolivian wealth tax.

Long-Term Vision: Creating a Predictable and Competitive Economic Environment

A Foundation for Sustainable Growth

In signaling the tax and investment reform, the government has made clear that the elimination of the Bolivian wealth tax and other taxes is only the first phase of its new policy direction. In this way, the administration has committed to finalizing the tax reform package by next March and opening the country to new investment to bring back capital. In this direction, the government must promote a predictable, stable, and transparent business climate. By creating this environment, Bolivia can foster stability and encourage reinvestment across the country in a way that will make growth possible over the long term.

Regional and Historical Context

Bolivia’s Shifting Economic Landscape

In the regional and historical context, Bolivia’s economic downturn can be explained in terms of both international and internal factors. Natural gas exports have been on the decline over recent years, while foreign currency reserves, GDP growth, and domestic consumption have all suffered. The tax burden has increased, resulting in an expanding fiscal deficit. Meanwhile, Bolivia’s neighbors have passed key reforms to improve their competitiveness as new investment opportunities. It is from this vantage point that the administration began to rethink the Bolivian wealth tax and others like it.

The Challenge Ahead

Rebuilding Trust Will Take Time

In the face of a generally positive reception to the elimination of the Bolivian wealth tax, the government has said that restoring trust will take time and consistency. In order to recover confidence, Bolivia must work to improve its regulatory framework, strengthen its institutions, and communicate a clear vision for development going forward, particularly in strategic sectors such as energy and mining. Capital flight, the government has said, will only reverse when investors feel that the country provides a stable, transparent, and lucrative opportunity.

Conclusion: A New Economic Direction for Bolivia

In removing the Bolivian wealth tax and a number of other taxes and levies, President Rodrigo Paz has signaled the beginning of a new economic direction for Bolivia. By opening the door to potential investment, reforming inefficient taxes, and signaling a more stable and transparent investment climate, the government is working to reverse capital flight and rebuild investor confidence. With a focus on fiscal adjustment and a commitment to improving relations with the private sector, Bolivia has a real opportunity to recover and grow its economy over the long term.