According to Ecuador’s Ministry of Production, Foreign Trade, Investments, and Fisheries, private investment in Ecuador reached an impressive $1.304 billion in 2024. This figure is reflected in 39 investment contracts approved across various productive sectors, showcasing the country’s efforts to attract and promote both domestic and foreign investment.
At the beginning of 2025, the Strategic Committee for Investment Promotion and Attraction (CEPAI), led by the Ministry of Production, Foreign Trade, Investments, and Fisheries (MIPRO), confirmed this significant milestone. The total amount includes contracts, addenda, and transitions to the new Free Trade Zones regime implemented throughout 2024.
A Comparative Look: Investment Growth Between 2023 and 2024
While 2023 saw approved investment contracts valued at $1.161 billion, 2024 marked a clear improvement with $1.304 billion. The growth reflects Ecuador’s commitment to fostering a more attractive business environment, which continues to yield positive results. MIPRO highlighted that these investments spanned several productive sectors, with notable contributions from the commercial, renewable energy, mining, real estate, and aquaculture industries.
Investment Contracts and Sector Highlights
2024 Ecuador approved 39 new investment contracts, signaling robust interest across diverse economic sectors. Renewable energy projects stood out for their potential to enhance the nation’s sustainability goals, while mining projects and real estate developments further strengthened the economy’s foundations. Additionally, aquaculture projects underscored Ecuador’s global seafood production leader role, particularly shrimp farming.
The final quarter of 2024 brought additional gains, with amendments to existing contracts resulting in an extra $93.5 million in investments. These updates illustrate the dynamic and evolving nature of private investment in Ecuador, with businesses adapting their strategies to align with the nation’s economic priorities.
Transition to a Modern Free Trade Zone Regime
Ecuador achieved a significant milestone in 2024 by transitioning two Special Economic Development Zones (ZEDEs) in Santa Elena and Guayas into the country’s first Free Trade Zones under the updated legal framework. Established under the new Law of Economic Efficiency and Employment Generation, these zones are expected to stimulate economic activity and job creation.
The transition represents a notable evolution in the country’s approach to incentivizing investment. Over the next 30 years, the newly designated Free Trade Zones are projected to generate and sustain 69 direct jobs, supported by an investment exceeding $2 million. This development highlights the government’s strategic use of free trade mechanisms to attract long-term private investment in Ecuador.
On October 17, 2024, MIPRO issued a ministerial agreement detailing the guidelines for transitioning ZEDEs, previously governed by the Organic Code of Production, Commerce, and Investments (COPCI), and Free Trade Zones under the older legal regime, to align with the new framework. This transition ensures regulatory consistency and clarity, which are critical for sustaining investor confidence.
Foreign Direct Investment Trends in Ecuador
Despite these successes, Ecuador’s foreign direct investment (FDI) declined during the first half of 2024. The country registered $120 million in FDI during this period, representing a 12.2% decrease compared to the $136.7 million recorded in the same timeframe in 2023. This drop of $16.7 million underscores Ecuador’s challenges in competing for international capital amidst global economic uncertainties.
The primary sectors attracting FDI in 2024 were mining and quarrying, transportation and storage, and manufacturing. Together, these sectors accounted for a positive inflow of $92 million. Key contributors to Ecuador’s FDI included the United States, Switzerland, and Peru, which collectively invested $78 million during the year’s first half.
Focus on Key Sectors for Private Investment in Ecuador
While FDI trends highlight specific challenges, the segment of approved investment contracts tells a more optimistic story. During the first half of 2024, 100% of these contracts targeted agriculture, livestock, forestry, fishing, manufacturing, construction, and real estate. These sectors reflect Ecuador’s economic diversity and strategic emphasis on industries with significant growth potential.
Looking Ahead: Strengthening Private Investment in Ecuador
As Ecuador enters 2025, the country is well-positioned to build on the progress made in 2024. The approval of investment contracts across critical sectors and the modernization of Free Trade Zones demonstrate the government’s commitment to fostering a conducive environment for private investment. These efforts drive economic growth, job creation, and technological advancement nationwide.
In conclusion, private investment in Ecuador reached a remarkable $1.304 billion in 2024, underscoring the country’s growing appeal as an investment destination. By leveraging its natural resources, strategic location, and improved regulatory framework, Ecuador is paving the way for sustained economic development and increased investor confidence.