These Recommendations Emerged at the Development Bank of Latin America and the Caribbean (CAF) International Forum
Opportunities Are Seen in the Country, but Legal and Physical Security Are Necessary to Move Forward
During the Latin America and the Caribbean 2025 International Economic Forum, organized by CAF, business leaders from various industries and countries gathered to discuss the region’s challenges and seek a path to economic development that can break the cycle of stagnation.
Ecuador’s Investment Challenges
Ecuador stands out as one of the countries facing the most severe economic problems, mainly due to a lack of investment—especially foreign investment. In response, several foreign business leaders shared insights on steps that could be taken to improve the situation and attract new investment to Ecuador.
Political Stability and Strategic Sector Development
Nuria Vilanova, president of the Business Council Alliance for Ibero-America (Ceapi), which brings together 320 business leaders, pointed out that since Ecuador is currently in an election period, the country’s future remains uncertain. The current presidency was only a short-term mandate—to complete the previous administration’s term.
Suppose the new government commits to advancing the development of strategic sectors such as infrastructure, energy, mining, and education. In that case, Vilanova believes that new investment in Ecuador could significantly increase, ushering in a period of economic progress.
The Role of Dollarization and Security Concerns
From a European perspective, Ecuador’s dollarization provides a strong sense of economic stability. However, tackling the country’s security crisis is essential:
“Unfortunately, violence is a scourge spreading across the region and the world. The key is to have governments led by individuals fully committed to fighting it,” Vilanova stated.
She added that if a favorable scenario emerges, companies in sectors such as infrastructure, water, energy, education, IT, and technology could consider new investment in Ecuador as a viable opportunity.
Ceapi’s Engagement with Ecuador’s Government
Vilanova’s company, Atrevia, operates in Ecuador and 14 other countries. As part of Ceapi, she has discussed investment opportunities with the current Ecuadorian government.
“We work for Ibero-America. We deeply believe in our region and in what businesses can contribute. That is why we maintain dialogue with various presidents and governments. We have had the opportunity to organize events with President Daniel Noboa and investors interested in Ecuador, both in Spain and New York. He has been very clear about Ecuador being a land of opportunity despite the severe violence the country is facing,” she added.
The Importance of Local Investor Confidence
Roque Benavides, former president of the National Confederation of Private Business Institutions of Peru, noted that foreign investors are more likely to invest in a country where local investors are confident.
“I believe in the American saying: ‘Put your money where your mouth is.’ If Ecuadorians do not believe in their own country, it won’t be easy to convince foreign investors to come. The way forward is for political leaders to foster confidence in domestic investment, which will, in turn, encourage new investment in Ecuador,” Benavides said.
Mining: A Sector with Potential but Challenges
Regarding sectors with potential in Ecuador, Benavides highlighted mining, an industry in which he has extensive experience.
“In the mining sector—where we have invested in Ecuador in the past and had a negative experience—it is crucial to build a strong mining tradition, which the country has yet to develop. The game’s rules must be clear from operational, environmental, and social standpoints. This is directly tied to a country’s political, legal, and economic stability,” Benavides explained.
He recalled that his mining project in Ecuador was halted in the late 1970s due to conflicts between Ecuador and Peru. However, he takes pride in later contributing to business integration following the peace agreement between the two countries.
“Things in Ecuador have changed significantly. You have an extraordinary country, a true gem. Environmental protection must be a priority,” he added.
Economic Freedom: A Key Factor for Growth
Carlos Díaz-Rosillo, director of the Adam Smith Center for Economic Freedom at Florida International University, stressed that economic freedom is essential for a country’s economic growth.
“This does not mean that there should be no regulations or that the government should have no role in overseeing the economy. Rather, regulation should be sensible and serious—without suffocating economic activity,” he explained.
“Without economic freedom, attracting investors who truly bet on a country is extremely difficult. A country that overregulates its economy in a way that stifles businesses will see those businesses move elsewhere. With the rise of nearshoring, there are many opportunities for Latin America. However, even local businesspeople will relocate if they find better conditions elsewhere. They will go there if they can invest in Peru or Colombia, where they are offered better incentives and conditions. Countries that impose excessive regulations will see domestic and foreign investors hesitate to commit to new investment in Ecuador,” Díaz-Rosillo warned.
Nearshoring and Geopolitical Opportunities
When discussing how Latin American countries can take advantage of shifting global geopolitical conditions, Díaz-Rosillo emphasized that this is a prime opportunity for investments that previously flowed into China to return to Latin America.
However, for governments to capitalize on this shift, they must provide guarantees and favorable conditions for investors—primarily legal and physical security to ensure workers can commute safely. Additionally, macroeconomic and political stability and adequate infrastructure are essential to fostering economic activity.
“Today, Ecuador has many opportunities in the energy sector. It is a country with vast oil reserves and significant energy resources, yet it faces enormous unmet needs,” Díaz-Rosillo pointed out.
Ecuador’s Improving Investment Climate
Ecuador’s Minister of Economy and Finance, Juan Carlos Vega, also participated in the forum. He noted that business leaders’ perception of Ecuador is improving—a sentiment reflected in the country’s declining risk rating, which has dropped below the 1,000-point threshold.
“If we transition to a four-year government term, investor confidence will naturally increase, particularly in energy investment and green transition areas. Ecuador has many opportunities to enter a path of sustained growth and development, creating a positive economic cycle that generates jobs and new opportunities. This will further encourage new investment in Ecuador,” Vega stated.
Emerging Investment Opportunities in Ecuador
Regarding industries that have expressed interest in Ecuador, Vega highlighted:
- Artificial intelligence as an emerging sector
- Energy transition and environmental conservation
- Responsible mining and oil extraction
He emphasized the importance of social and environmental responsibility in these industries.
A Call for National Consensus
However, Vega acknowledged that progress must first be based on fundamental agreements among Ecuadorians.
“Regardless of ideological differences, we must all recognize that it is in our collective best interest for the country to progress. Everyone benefits from job creation and investment opportunities, as these ultimately drive growth across all sectors,” he concluded.