Inauguration of the Business Meeting
In a significant gathering that underscores the growing economic ties between Peru and Spain, the First Vice President of CEOE (Confederation of Spanish Business Organizations) and President of CEIM (Madrid Business Confederation), Miguel Garrido, along with the Ambassador of Peru in Spain, Luis Ibérico, and the President of the National Confederation of Private Business Institutions (Confiep), Alfonso Bustamante, inaugurated a pivotal business meeting centered on the theme “Investment Opportunities in Peru.” This event, which attracted over 120 entrepreneurs eager to explore investment opportunities in Peru, marked a critical step in enhancing bilateral relations and fostering investment.
Focus on Bilateral Cooperation
The event started with a closed-door meeting between President Bustamante and CEOE President Antonio Garamendi. This meeting, which was a precursor to the larger event, delved into the current economic landscape of both countries and explored potential avenues for bilateral cooperation across sectors of mutual interest. The focus on collaboration and mutual understanding in driving economic growth set the tone for the rest of the event.
Spanish Companies in Peru
Miguel Garrido underscored the robust presence of nearly 500 Spanish companies operating in Peru during the formal business meeting. He noted, “These companies are not just doing business. They are actively participating in modernizing the country’s economy and job creation.” This recognition of their commitment echoes the broader narrative of foreign investment as a catalyst for economic development in Peru. Recently, it has seen a remarkable transformation, creating numerous investment opportunities.
The Role of the Free Trade Agreement
The Free Trade Agreement between the European Union and Peru is a significant factor in this evolving partnership. This agreement has bolstered collaborative efforts, enhancing economic ties, increasing the flow of goods and investments, and establishing a robust institutional framework for cooperation. Garrido acknowledged the progress made but emphasized that “there is still much to be done,” pointing to the urgent need to advance negotiations on the Agreement to Avoid Double Taxation. This agreement is crucial for fostering a favorable investment climate, as it can alleviate tax burdens and encourage cross-border investment.
Key Considerations for Investors
Garrido elaborated on several factors entrepreneurs consider essential when investing in Peru. These include legal certainty, support for the liquidity of small and medium-sized enterprises (SMEs), improved access to financing, minimized bureaucracy in public tenders, avoidance of tax hikes, and promotion of public-private partnerships. Addressing these areas is imperative for creating a more attractive environment for foreign investors.
Economic Growth and Challenges in Peru
Confiep President Alfonso Bustamante took the opportunity to emphasize the positive trajectory of the Peruvian economy. He noted that over the past 25 years, Peru has experienced considerable economic growth, with a significant reduction in monetary poverty from around 60% to just 20% as of 2020. This progress reflects the country’s resilience and potential; however, Bustamante acknowledged that serious challenges persist, particularly in areas such as access to clean water, the healthcare system, and educational gaps.
Investment Opportunities Amid Challenges
These challenges, while daunting, also represent significant opportunities for foreign investment. Bustamante stated, “Peru is one of the three most solvent economies in Latin America,” suggesting that the country’s economic stability provides a fertile ground for investors looking to make impactful contributions to the economy and local communities.
Promising Sectors for Investment
Renewable Energy
Renewable energy is an up-and-coming area for investment. With initiatives underway to establish solar plants in southern Peru and plans for a large wind farm, the renewable energy sector is poised for substantial growth. This sector aligns with global sustainability goals and holds the potential to boost Peru’s projected economic growth from 3% to figures exceeding 7% in the coming years. The commitment to renewable energy development reflects a broader trend towards sustainable investment practices.
Agro-exportation
Agro-exportation also emerged as a focal point of discussion, with projections indicating that exports of high-value agricultural products could reach $12 billion this year. This sector has seen a surge in demand, driven by international markets seeking quality Peruvian produce. Bustamante called for reaching an agreement to avoid double taxation, which he believes will significantly enhance bilateral relations and encourage more robust trade partnerships.
Updates on Tax Agreements and Public Procurement
In a crucial update, Ambassador Luis Ibérico informed attendees that discussions regarding the Agreement to Avoid Double Taxation will resume in March. Business leaders eagerly anticipate this development as they recognize the importance of such agreements in facilitating smoother business operations. The Ambassador also highlighted the recent approval of a new public procurement law in Peru, set to come into effect in March 2025. This law is expected to introduce a regulatory period that promotes innovation and modernization in public management, thereby enhancing efficiency and transparency in public procurement processes.
Conclusion: A New Era of Investment
As the event concluded, the enthusiasm among participants was palpable, with many recognizing the immense potential for collaboration between Peru and Spain. The insights shared by business leaders and government representatives reaffirmed the commitment to fostering a business-friendly environment that attracts foreign investment and supports sustainable economic growth. With ongoing dialogue and cooperation, the stage is set for a new era of investment that could redefine the landscape of economic collaboration in the region.