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Bolivian Business Development Profile
DANIDA Business Partnerships
Danish Embassy in Bolivia 2799, Arce Avenue
La Paz, Bolivia Tel.: +591 (2) 243 2070 Fax: +591 (2) 243 3150
www.bolivia.um.dk
June 2013
Bolivian Business Development Profile | 2
Table of Contents
Page
Executive Summary 3 Map of the Plurinational state of Bolivia 4 1 Country profile 5 2 Economic overview 6 3 Trade opportunities 8 3.1 Trade agreements of Bolivia 8 3.2 Bolivian exports 9 3.3 Bolivian imports 10 3.4 Trade Bolivia – Denmark 10 3.5 Infrastructure for international trade 11 4 Investment overview 12 4.1 Doing Business Report 12 4.2 World Economic Forum: Competitiveness Index 12 4.3 Incentives for Foreign Investment 13 5 Potential sectors 15 5.1 Agricultural 15 5.1.1 Highlands 15 5.1.2 Valleys and Tropic 17 5.1.3 Lowlands 19 5.1.4 Forest 21 5.2 Industrial manufacturing 24 5.3 Tourism 31 5.4 Services 32 6 Social Development 33 6.1 Education 33 6.2 Health 33 6.3 Gender 34 6.4 Indigenous Peoples’ Rights 34 6.5 Corporate Social Responsibility 35 7 Useful Information 36 7.1 Visa applying 36 7.2 Trade Fairs 36 8 Contact 37
Bolivian Business Development Profile | 3
Executive Summary
Bolivia, located in the middle of South America, is a multicultural and bio-diverse land-locked country. One of its main characteristics is the diversity of its territory, from the Altiplano (highland plains) to the lowland plains of the Amazon Basin. Bolivia promotes an image of an ancient culture with ecological production. During the last six years Bolivian economy has been stable, favoured by the higher prices of commodities and with limited inflation. This document contains economic (page 2) and social (Page 33) indicators of the country. The Danida Business Partnerships Programme seeks to contribute to the economic and social growth of Bolivia through commercially oriented partnerships which create jobs, improve competitiveness and promote corporate social responsibility. This Business Development Profile is intended to provide an overview of the economic and business outlook in Bolivia. It also identifies sectors which can generate the greatest development impact and bring about sustainable commercial partnerships. The DBP programme in Bolivia prioritizes projects which develop products with added value, in the area of agri-business and industry. The main sectors identified are the following:
Andean grains (page 16) Timber products (page 29) Oilseeds cluster: Soybeans and sunflower seeds (page 21) The pharmaceutical industry, including phytotherapeutic products (page 27) Meat and meat products (page 30) Dairy products and technology (page 30) Leather and leather manufactures (page 26) Textile and clothing (page 26)
Additional subsectors with potential for productive partnerships are: coffee (page 17), cacao (page 24), metal industry (page 30), jewellery (page 30) and lithium derivatives (page 31). Other subsectors could also be considered as potential candidates: livestock farming, pigs and cattle, tourism, and the sub-areas of achiote, potatoes, sesame, fruits (tropical, exotic, dried and fruit pulps), Brazilian nuts, chia and palmetto. Finally, all productive sectors, as well as the residential sector, need energy. Bolivia has expressed the intention to diversify its energy matrix away from fossil fuels. Since Denmark is one of the world leaders in energy efficiency and renewable energy technology, there is potential for creating successful partnerships in this transversal sector. More information about the Danida Business Partnerships programme could be found on the following link: http://um.dk/en/danida-en/activities/business/partnerships. Information about the activities of the Danish Embassy in Bolivia can be obtained at the following link: http://bolivia.um.dk/da.aspx
Bolivian Business Development Profile | 4
Map of The Plurinational State of Bolivia
Source: United Nations (UN)
Bolivian Business Development Profile | 5
1 Country Profile Facts and Figures
Official Name Plurinational State of Bolivia
Government form Social Unitarian State
Area 1,098,580 Km2 (28th largest of the world)
Borders Argentina (832 Km), Brazil (3,400 Km), Peru (900 Km), Paraguay (750 Km)
and Chile (861 Km)
Political division 9 Departments(/Provinces): Beni, Chuquisaca, Cochabamba, La Paz, Oruro,
Pando, Potosí, Santa Cruz and Tarija
Capital Sucre; La Paz (Seat of Government)
Main cities (Est. 2010) Santa Cruz (1,651,436 inhabitants), El Alto (960,767), La Paz (840,209),
Cochabamba (618,384)
Population (2013) 10,027,254 inhabitants
Density (Est. 2012) 9.4 inhabitants/Km2
Life expectancy (Est. 2011) 67.9 years
Average of age (Est. 2011) 22.5 years
Languages Spanish and 36 other indigenous dialects
Independence Day 6 August (1825, from Spain)
Constitution 7 February (2009, last modification)
Currency Boliviano (BOB). USD are used for big transactions
1 DKK= 1.19 BOB (October 2012)
Time zone - 5 hours during Danish winter
- 6 hours during Danish summer
Religion Catholic (90%). There is religious freedom
Public holidays
- New Year (1 January)
- Constitution Day (22 January)
- Carnival (2 days, variable dates between February and March)
- Good Friday (variable date between March and April)
- Labour Day (1 May)
- Aymara New Year (21 June)
- Corpus Christi (variable date between May or June)
- Independence Day (6 August)
- All Saints Day (1 November)
- Christmas (25 December)
- Each Department (Region) Day
Business Hours
- Public Offices: Monday to Friday 8.30 – 12.30; 14.30 – 18.30
- Private sector: Monday to Friday 8.00 – 12.00; 14.00 – 18.00
- Banks: Monday to Friday 9.00 – 16.00 Saturday 9.00 – 13.00
Memberships on
UN; WTO; G77; Organisation of American States (OAS); Andean Community
(CAN); Latin American Integration Association (ALADI); Rio Group; Inter-
American Developmental Bank; International Monetary Fund (IMF), Union of
South American Nations (UNASUR) and Bolivarian Alliance of Our Peoples of
America (ALBA).
Sources: National Institute of Statistic (INE), Central Bank of Bolivia, CIA World Facebook and Ministry of Labour
Bolivian Business Development Profile | 6
2 Economic Overview
In recent years, Bolivia has shown a solid economic performance, based on the exports of raw
material such as gas and minerals, helped by the higher prices in the international market;
control of inflation; and the increase of domestic demand, especially consumption.
Gross Domestic Product has grown more than 4% per year since 2004, with the exception of
2009, when the economy was slightly affected by the financial crisis. Bolivia is considered as
one of the most stable economies in South America with stable macroeconomic indicators, high
levels of international reserves, solid public finances, and increasing creditworthiness.
Bolivia: Growing of GDP and Inflation, 2007 – 2011
(In %)
Source: National Institute of Statistic (INE)
South America: Gross Domestic Product, 2010 – 2013
(In %)
Source: Economic Commission for Latin America (ECLAC) / (p): Projected data
4.6 6.2
3.4 4.1
5.2
11.7 11.9
0.3
7.2 6.9
2007 2008 2009 2010 2011
GDP Inflation
Country 2010 2011 2012 (p) 2013 (p)
Peru 8.8 6.9 5.9 5.5
Bolivia 4.1 5.2 5.0 4.5
Chile 6.1 6.0 5.0 4.8
Venezuela -1.5 4.2 5.0 3.0
Colombia 4.0 5.9 4.5 4.5
Ecuador 3.6 7.8 4.5 4.5
Uruguay 8.9 5.7 3.5 4.0
Argentina 9.2 8.9 2.0 3.5
Brazil 7.5 2.7 1.6 4.0
Paraguay 13.1 4.4 -2.0 5.0
Bolivian Business Development Profile | 7
Gross Domestic Product by economic activity, 2011
(In %)
Source: National Institute of Statistic (INE)
Sources: National Institute of Statistic (INE), Central Bank of Bolivia (BCB), and World Economic Forum
28%
19%
17%
15%
13%
5% 3%
Mines and quarries extraction
Manufacturing industry
Agriculture, hunting and fishing
Transport, storage and communication
Commerce
Construction
Electricity, gas and water
Main Indicators
Gross Domestic Product (GDP) USD23,879 million (2011)
GDP growth 5.2% (2011)
5.5% (Est. 2012)
GDP per capita USD2.315 (2011)
Inflation rate 6.9% (2011)
5,0% (Est. 2012)
Urban unemployment rate 6.5% (2010)
Direct Foreign Investment USD859 million (2011)
USD577 million (Jun. 2012)
External Public Debt USD3,582 million (2011)
USD3,523 million (Sep. 2012)
Net International Reserves USD13,772 million (Oct. 2012)
Exports USD9,114 million (2011)
USD6,823 million (Sep. 2012)
Imports USD 7,673 million (2011)
USD 5,458 million (Sep. 2012)
Labour force by activity
- Agriculture: 14%
- Manufacturing Industry: 14%
- Non manufacturing industry: 22%
- Services: 50%
Bolivian Business Development Profile | 8
3 Trade Opportunities
3.1 Trade Agreements of Bolivia
Bolivia only maintains bilateral trade agreements with Latin-American countries. The most
important of them is the Andean Community Agreement, of which it is a founder member. It is
also an associated member of MERCOSUR. Bolivia is a beneficiary of preferential treatments
within unilateral systems, such as the Generalized System of Preferences Plus of the European
Union, which facilitates Bolivian exports to Denmark.
Bilateral Trade Agreements
Andean Community (Peru, Colombia and Ecuador)
MERCOSUR (Argentina, Brazil, Paraguay and Uruguay)
Chile
Cuba
Mexico
Venezuela (under the frame of Bolivarian Alliance of Our Peoples of
America – ALBA)
Generalized Systems of Preferences (Unilateral)
GSP Plus of the European Union
GSP of the United States of America
GSP of Japan
GSP of Canada
GSP of Russian Federation
GSP of Turkey
GSP of New Zealand
GSP of Switzerland
GSP of Norway
Source: Bolivian Institute of Foreign Trade (IBCE)
Top 5 Destination of Exports, 2011 Top 5 Origin of Imports, 2011
Nº Country Main Product Nº Country Main Product
1 Brazil Natural Gas 1 Brazil Iron and Steel Bars
2 Argentina Natural Gas 2 Argentina Diesel
3 USA Tin 3 China Airplanes
4 Japan Zinc 4 USA Gas Turbines
5 Peru Soybeans derivatives 5 Japan Automotive Vehicles
Source: National Institute of Statistic (INE)
Bolivian Business Development Profile | 9
External Trade of Bolivia, 2007 – 2011
(Millions of US Dollars)
Source: National Institute of Statistic (INE)
3.2 Bolivian Exports
Bolivia suffers from a huge dependence on the raw material exports, such as petroleum, gas,
minerals, soybean and wood. Natural gas is the most important product for export, and it is
totally destined to Brazil and Argentina. However, there are other interesting and potential
products to export such as nuts, quinoa, amaranth, sesame, cocoa, coffee, tea, tropical fruits and
others.
Source: National Institute of Statistic (INE)
1,234
1,833
823
1,362
1,441
3,588
5,100
4,577
5,604
7,673
4,822
6,933
5,400
6,966
9,114
2007
2008
2009
2010
2011
Exports Imports Commercial Balance
Composition of Bolivian Exports, 2011 (%)
Petroleum, gas and derivatives 45.52%
Minerals 37.56%
Soybean and derivatives 7.54%
Wood 0.96%
Sunflower and derivatives 0.86%
Leather 0.58%
Jewellery 0.58%
Textiles and Clothing 0.45%
Sugar and derivatives 0.37%
Other 5.59%
Bolivian Business Development Profile | 10
3.3 Bolivian Imports
A vast majority of Bolivian imports are considered as industrial supplies (fuels, iron and steel,
machinery and chemical products). However, there is a constant fight against contraband along
the borders of the country.
Source: National Institute of Statistic (INE)
3.4 Trade Bolivia – Denmark
In 2011 Bolivia exported more than USD 1.3 million of goods to Denmark. It was the 42nd most
important market (of a total of 106 countries) for Bolivian products in terms of value. Over the
last five years, Bolivian exports to Denmark accumulated more than USD 4 million.
Bolivian Exports to Denmark, 2007 – 2011
(US Dollars)
Source: National Institute of Statistic (INE) / (p): Preliminary data
886,364
692,565
1,120,351
746,288
1,374,798
2007 2008 2009 2010 2011 (p)
Composition of Bolivian Imports, 2011 (%)
Fuels 13.30%
Automotive vehicles 12.94%
Iron and steel 7.41%
Industrial machinery 7.37%
Machinery and equipment in general 6.19%
Electric machinery and artefacts 3.85%
Chemical products 3.38%
Metal manufacturing 3.18%
Machinery and equipment generators of power 3.03%
Cereals 2.83%
Other 36.53%
Bolivian Business Development Profile | 11
The Danish market is important for the Bolivian textile and clothing exports, considering that
50% of the exports belong to this sector. Food and food ingredients, wood and jewellery are
also potential sectors in order to increase Bolivian exports to Denmark.
Bolivia: Exports to Denmark, by sector 2011 (p)
(%)
Source: National Institute of Statistic (INE) / (p): Preliminary data
3.5 Infrastructure for International Trade
Bolivia uses ports and warehousing facilities at Arica, Iquique and Antofagasta (Chile);
Matarani and Ilo (Peru); and Santos (Brazil). Other port facilities used are free ports in Rosario
(Argentina); Nueva Palmira (Uruguay); and Belem (Brazil).
Bolivia suffers from weak infrastructure. The average investment in infrastructure as a
percentage of the GDP has been only 3.3% during the last 20 years1. Only 30% of the 16,054
kilometres of the main road network is paved, the rest is still covered by ground and gravel.
According to the Bolivian Road Administration (ABC, in Spanish) the State had a budget of USD
600 million for infrastructure for the year 2012. Between 2006 and 2011 more than 1,000
kilometres of roads were constructed.
The railroad network is divided into two parts: the Eastern part counting 1,222 kilometres that
connects the country with Brazil and Argentina, and the Western part with 2,318 kilometres
that connects with Argentina, Chile and Peru.
Bolivia has developed the exports of oilseeds through Puerto Aguirre (located in the Paraguay
River), which allows the country the transport of goods through the Atlantic Ocean. There are
also some interesting projects of economic development in this area.
The main national airlines are Boliviana de Aviación (BOA), Amaszonas and Transporte Aéreo
Militar (TAM), other international airlines operating in the country: American Airlines, LAN,
Aerolíneas Argentinas, TACA, TAM MERCOSUR, GOL and Copa Airlines.
1 Populi Centre of Studies
50.45%
26.85%
11.78%
10.31%
0.62%
Textiles and clothing
Food and food ingredients
Other products
Wood
Jewellery
Bolivian Business Development Profile | 12
4 Investment Overview
4.1 Doing Business Report
In the Doing Business Report 2013, Bolivia is ranked in the position 155 of 185 economies
which shows a regression in the index compared to 2012 projections. Besides it is one of the
worst economies regarding legal rights of borrowers and lenders and in providing minority
investor protection.
Topic Rankings Rank 2013 Rank 2012
Starting a business 174 169
Dealing with construction permits 114 107
Getting electricity 126 124
Registering property 139 138
Getting credit 129 126
Protecting investors 139 136
Paying taxes 180 179
Trading across borders 125 126
Enforcing contracts 136 135
Resolving insolvency 68 65
Source: Doing Business Report 2013. Between 185 economies
4.2 World Economic Forum: Competitiveness Index
Parameters Rank
(Between 144 economies)
Score
(1 - 7)
General 104 3.78
Basic Requirements 94 4.15
1) Institutions 119 3.31
2) Infrastructure 108 2.95
3) Macroeconomic environment 49 5.02
4) Health and primary education 97 5.32
Efficiency enhancers 122 3.35
5) Higher education and training 92 3.83
6) Goods market efficiency 138 3.40
7) Labour market efficiency 132 3.58
8) Financial market development 126 3.33
9) Technological readiness 127 2.73
10) Market size 82 3.25
Innovation and sophistication factors 100 3.28
11) Business sophistication 103 3.55
12) Innovation 83 3.01
Bolivian Business Development Profile | 13
The most problematic factors for doing businesses %
Access to financing 25.6
Restrictive labour regulations 19.1
Foreign currency regulations 13.3
Inefficient government bureaucracy 11.9
Inadequate supply of infrastructure 9.8
Corruption 3.9
Policy instability 3.7
Inadequately educated workforce 3.2
Poor work ethic in national labour force 2.7
Insufficient capacity to innovate 2.0
Inflation 1.1
Government instability/coups 1.0
Tax rates 0.9
Poor public health 0.7
Tax regulations 0.7
Crime and theft 0.6
Source: The Global Competitiveness Index 2012 – 2013. World Economic Forum
4.3 Incentives for Foreign Investment
According to the Economic Commission for Latin America (ECLAC) Report on Foreign Direct
Investment, Bolivia was the 8th country in Latin America to be considered a destiny for FDI in
2011. In 2011, the Direct Foreign Investment in the country represented 4% of the GDP in
relative terms, being the main investors: Sweden, Spain, Brazil, USA and France. The more
beneficiated industries with external investment were: energy, mining, manufacturing,
commerce, transport and communications.
The average wages in each private sector is a piece of key information for foreign investors, in
order to know their exact costs of production. The highest average wage (above USD 1,000)
belongs to the sector of production and distribution of electricity, gas and water; while the
lowest average wage (below USD 200) is found in the service sector of restaurants and bars.
Bolivia: Average wage by activity in private sector, 2011
Activity BOB USD
General 3,099 445
Production and distribution of electricity, gas and water 7,738 1,112
Communications 6,225 894
Elaboration and conservation of fruits, beans, vegetables
and elaboration of vegetal oils and food products 4,790 688
Bolivian Business Development Profile | 14
Intermediation of finances 4,383 630
Extraction of crude oil and natural gas 4,195 603
Services of housing, businesses and rent 3,835 551
Transport and storage 3,559 511
Education for adults and other types of education 3,151 453
Fabrication of non-metallic mineral products 3,090 444
Fabrication of products of paper, edition, print and
reproduction 3,035 436
Extraction of minerals 3,013 433
Construction 2,736 393
Elaboration of alcoholic beverages and tobacco 2,689 386
Primary, secondary and college education 2,652 381
Hostelry 2,513 361
Commerce 2,482 357
Services of cinematography, radio, television and
entertainment 2,183 314
Social and health services 2,013 289
Fabrication of chemical products and substances 2,009 289
Elaboration of dairy products 1,947 280
Elaboration of metal-mechanic products 1,708 245
Elaboration of starch and bakery products 1,619 233
Production, processing and conservation of meat and meat
products 1,591 229
Elaboration of sugar, confectionery, pasta and noodles 1,544 222
Production of wood and products of wood (except
furniture) 1,533 220
Fabrication of textiles, clothing, leather products and shoes 1,341 193
Restaurants and bars 1,222 176
Source: National Institute of Statistic (INE) / Official Currency Exchange: 1 USD: 6.96 BOB
Capital gains and investment incomes from production and commercialization are all taxed.
There are also sectorial taxes, for instance in the hydrocarbons industry.
Taxes Description
Value Added Tax (VAT)
13%
To the added value in every phase of production or
commerce of a good or service.
Complementary Regimen to VAT
13%
To the income of employees (of public or private
companies). It is possible to reduce this tax with the
presentation of fiscal credit. The company is only an agent
of retention.
Transaction tax
3%
To the gross incomes accrued and transmissions of goods
and immovable.
Tax of the Companies Utilities (TCU)
25%
To the annual utilities of the public and private
companies, independent professionals and others.
Tax to Specific Consumptions
(According to Law Nº 843)
To the national production and imports of alcoholic
beverages, some non-alcoholic beverages, tobacco, cigars
and cars.
Bolivian Business Development Profile | 15
Tax to the Property of Immovable and
Automotive Vehicles
(According to Law Nº 843)
To the immovable property, urban or rural, and
automotive vehicles of any type or category: cars, trucks,
jeeps, vans, motorcycles.
Special Tax to Hydrocarbons and
derivatives
(According to Law Nº 843; Maximum of
5,34 BOB per litre)
To the commercialization of hydrocarbons and
derivatives in the domestic market.
Complementary Tax to Mining
(According to Law Nº 843 and Supreme
Decree Nº 24780)
To the gross value of mineral sales, being the result of the
multiplication of the weight of the content by the official
price in USD.
Tax to Financial Transaction
0,15 % To transactions superior to USD 2,000.-
Direct Tax to Hydrocarbons
(32 % and 18 % of royalties)
To the 100 % of the production of crude oil by any natural
person or company, public or private
5 Potential Sectors
5.1 Agricultural
According to the Food and Agriculture Organization (FAO) Bolivia is the largest producer of
Brazil nuts, a product with an incredible growing of exports in the last five years. Besides,
Bolivia is the second producer of quinoa (being worldwide the first exporter of this product)
and Andean camels (lamas, alpacas and vicuñas).
Agriculture in Bolivia is divided into the production of export products (especially soya) and
food products for the domestic market in the eastern part of the country and the production of
food, mainly for the domestic market in the valleys and western zone. Bolivia has a huge
agricultural potential because of the varieties of soils and climates. It is possible to divide the
production into four main areas: highlands, valleys and tropic, lowlands and forests.
5.1.1 Highlands
The Bolivian highlands are ideal for the production of ancient Andean grains like quinoa,
amaranth and cañahua. These grains are rich in proteins, vitamins, minerals, do not contain
gluten and the production is predominately organic. Due to these characteristics, these grains
have steadily gained importance as an alternative to cereals throughout the world and the
demand for these products is increasing.
Bolivian Business Development Profile | 16
Potential product Opportunities Challenges
Quinoa
Exports (2011): USD
63,445,879
Main importers: USA,
France, Netherlands,
Canada and Germany
This Andean cereal is very estimated by
the quality of its protein. It has a balanced
composition of amino acid similar to the
composition of the protein of the milk.
Products elaborated with quinoa have
increased: pastas, soups, cereal bars,
snacks, confectionery, among others.
Quinoa is successfully exported to many
countries as conventional and organic
grain. Some companies achieved the Fair
Trade Certification, in the last years.
The implementation of technology
is necessary in order to increase the
production and industrialization of
this product.
It is necessary to introduce
techniques to control the strong
influence of the weather in the
productive areas.
Amaranth
Exports (2011): USD
87,295
Main importers: Canada,
Japan and Switzerland
The grains of amaranth are largely
produced organically, thus giving it a
higher value than those conventionally
produced.
An increase in the healthy food trend could
be an opportunity for this product.
To increase the volume of
production through the expansion
of cultivated area.
Improvement of the production
chain of amaranth derivatives
products with higher quality
parameters.
Cañahua
Exports (2011): USD
93,040
Main importers: USA
and Canada
The grain toasted and turned into flour
called “whistle” is used in the gastronomy
for soups, bread and several drinks.
The importance of this crop is mainly due
to its high protein content in the grain,
with a great amount of amino acids.
In the same way like amaranth, it is
necessary to expand the cultivated
area, introduce the product in new
markets and develop its
industrialization.
Source: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE)
Andean grains
Andean grains, such as quinoa, amaranth and cañahua, are of considerable interest to
European markets due to their high nutritional value and purity (ecological and non-
genetically modified organism, GMO). From a development perspective, they are particularly
interesting because they have the potential to improve incomes for a large numbers of poor
farmers mainly located in the highlands. The challenge is to create more value-added within
Bolivia. This job has so far been promoted mainly by the development cooperation, but Danish
businesses could also take advantage of the opportunity.
List of companies in the Andean Grains Cluster Agrofor S.R.L: (Chuquisaca) Andean Foods Enterprise – ANFE (www.anfebiofoods.com) Andean Valley (www.andeanvalley.com) Cereales Andina S.R.L. (La Paz, Ph 591(2) 2864623) Cereales Antezana S.R.L. (La Paz)
Bolivian Business Development Profile | 17
Central de Cooperativas Agropecuarias Operación Tierra – CECAOT (La Paz, 591 (2) 2318502) (www.quinua.com.bo) Consorcio Comercial Imperio de los Lipez (www.delipez.com) CORONILLA S.A. (www.coronilla.com) Dci Amaranto (Cochabamba) Emprotarwi (La Paz) IRUPANA Andean Organic Food SA –IAOFSA (www.irupana.com) JATARIY S.R.L. ([email protected]) LATCO INTERNATIONAL (www.latcointernational.com) QUINBOLSUR – Salinas ([email protected]) QUINOA FOODS COMPANY S.A. (www.quinoafoods.com) QUINOABOL S.R.L. (www.quinoabol.com) Montecristo Bolivia S.R.L. (http://www.montecristobolivia.com) Productos Andinos Bolivia - PROANBOL S.R.L. (www.realquinua.com) Real Andina – Uyuni ([email protected]) SINDAN ORGANIC S.R.L. (www.quinuasindan.com.bo) Sobre la Roca (http://www.sobrelarocabolivia.com) Sociedad Agropecuaria Industrial y Técnica S.R.L. – SAITE (www.quinuasaite.com.bo) Sociedad Industrial Molinera S.A. – SIMSA (www.princesa.como.bo) Source: Rojas et al. (2010b)
5.1.2 Valleys and tropic
The tropical and subtropical regions allow the production of a vast variety of fruits and
vegetables, which are further processed and exported. The production is concentrated in small
and medium sized associations or by individual producers. Most of the fruit production is
conventional, but organic production is increasing due to the international demand and prices.
Potential products Opportunities Challenges
Coffee
Exports (2011): USD
26,189,306
Main importers: USA,
Germany, Belgium,
France and Netherlands
In the Yungas region, located in the
Department of La Paz, high altitude coffee
(Arabic) is produced, represented by the
varieties “typical”, “caturra”, “catimor” and
“novo mundo”. The production of coffee is
organized in cooperatives of small producers.
Due to the absence of utilization of pesticides
and chemical agents in the crops and its
excellent flavour, this product also achieves a
constant and increasing international demand.
Improvement of the production
to reach the Fair Trade
certification.
Technical expertise in genetic
resources management in order
to diversify the production.
Tea
Exports (2011): USD
A variety of infusions is produced in the tropic
of Cochabamba, with special characteristics in
flavours.
Increasing the volume of the
limited production, with special
focus on organic certification.
Bolivian Business Development Profile | 18
189,763
Main importers: Costa
Rica, Colombia, Chile
and USA
Some varieties of tea produced in the country
are: black tea, organic green tea, camomile tea,
anise tea, fruity flavoured tea (orange,
pineapple, peach and apple, among others).
Develop standards for
packaging and labelling for this
product.
Pineapple
Exports (2011): USD
674,273
Main importers:
Argentina, Chile, Italy,
Costa Rica and Denmark
The production in the tropic area of
Cochabamba has increased during last years in
the same way as bananas.
Pineapple is one of the most consumed
tropical fruits in the world, after banana and
mango.
Implementation of organic
production and reach Fair
Trade certification.
Diversify the offer of products:
pineapples cut in pieces, in
syrup, confectionery with
pineapples, among others.
Banana
Exports (2011): USD
20,381,491
Main importers:
Argentina, Chile,
Uruguay and Spain
Banana is the most exported Bolivian tropical
fruit. The production is located in the tropic
area of Cochabamba.
The main markets for exports are located in
the region (mainly Argentina). The European
Union could be an interesting market, being
the largest importer of banana in the world.
The more exported variety is the “Cavendish
Valery”. However, there are more varieties in
the country.
Implementation of organic
production and reach Fair
Trade certification.
Develop the packaging and
labelling phase within the
production chain.
Diversify the offer of products:
dried bananas, energy bars and
beverages, among others.
Peanut
Exports (2011): USD
660,798
Main importers:
Netherlands, Peru, USA
and Spain
Peanuts are common ingredients in cuisines all
over the world and are also used for popular
snacks and confections such as salted peanuts,
peanut butter, and candy bars.
Moreover, peanut oil is used in a variety of
industrial products and also many cosmetics
contain peanut oil and its derivatives. Peanuts
are a rich source of protein and contain high
concentrations of antioxidant polyphenols.
Peanuts are only consumed in
local markets as a snack or as an
ingredient for some recipes.
However, there is a lack of
industrialization of its oil and
other derivatives.
Technology to extract the oil is
necessary to complete that
objective.
Palm hearts
Exports (2011): USD
13,525,598
Main importers:
Argentina, Chile, USA,
Uruguay and Venezuela
Some producers in the tropic of Cochabamba
have achieved organic certification.
There is enough land in the tropic for palm
hearts crop, right now only 10% of the area is
used for production.
The production of palm hearts
needs to expand the area of
production and introduce better
technology of packaging and
labelling.
Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE)
Bolivian Business Development Profile | 19
Coffee Chain
Coffee production in Bolivia has been developed organically, given that the geographical
characteristics of the country are apt for the cultivation and obtaining of high-quality grains
(regions above 2.400 metres above sea level).
List of organizations and companies in the Coffee Cluster Asociación de Organizaciones de Productores Ecológicos de Bolivia (AOPEB) Federación de Caficultores de Bolivia Asociación de Café Apolo (La Paz, [email protected]) Asociación de Cafés Especiales de Bolivia ACEB (La Paz) Asociación de Productores de Café Ecológico – APROCAFE (La Paz, [email protected]) Cooperativa Agrícola Cafetalera San Juan Ltda. (La Paz, [email protected]) Cooperativa AGROP. Y COM. Alto Sajama (La Paz) Cooperativa Integral AGROPEC Antofagasta Ltda. (La Paz, café[email protected])
Companies Café Copacabana (www.industriacopacabana.com) Café Ideal (www.cafeideal.com.bo) Agrícola Cafetalera Buen Vista S.A AGRICABV (La Paz, www.anditradecoffe.com) Agroecológica Flor de Camata AGREFAC S.R.L (La Paz) Agroecológicas Pilon Laja (La Paz) AGROTAKESI S.A (La Paz) Coraca RI-Irupana (La Paz, www.coracairupana-blogspot.com) IRUPANA Andean Food S.A (La Paz, www.irupana.org) Sociedad industrial Cafetera Soinca Ltda. (La Paz) Source: IBCE (2010).
5.1.3 Lowlands
In the eastern lowlands, soybean is cultivated under large mechanized farming systems, as well
as other products like: cooking oil, cotton, rice, sugar-cane, sorghum, maize, millet, sesame,
among others.
The agribusiness sector is one of the biggest sectors in Bolivia in the sense that it employs
more than 40% of the population. Subsistence farming constitutes the majority of the sector;
however, commercial agriculture is increasingly important, especially in the eastern lowlands.
Potential products Opportunities Challenges
Soybean
Soybean is the main agricultural export
product of Bolivia, and one of most
important products in terms of exports.
The production of soybean oil is
one of the most advanced industries
in Bolivia. However, some barriers
Bolivian Business Development Profile | 20
Exports (2011): USD
686,861,053
Main importers:
Venezuela, Colombia,
Peru and Ecuador
Its composition is of 42-48 % protein, 20 -
21 % oil and 34 % carbohydrates. In the
industry it is used to produce soybean
meal for animals, refined oil, soybean flour,
soybean butter, soybean milk, pet food,
poultry feed, among others.
are given by government export
restrictions.
The industrialization of some
derivatives products such as
soybean milk, soybean butter,
among others is still limited.
Sunflower
Exports (2011): USD
78,047,919
Main importers:
Colombia, Chile, Ecuador
and Peru
This oilseed has a high content in fat (38-
58%), both mono saturated and
polyunsaturated fats help reducing
cholesterol.
Its extracted oil is vastly used for cooking,
considering that it is cheaper than olive oil
for example. Other industrial uses are to
produce margarine and biodiesel.
The premium markets for
sunflower seeds provide the best
opportunities for Bolivian
production as the conventional
market is dominated by large
multinationals which have
standards that are difficult to meet
for small and medium sized
companies. For this reason, Bolivian
producers might want to link up
with specialised traders.
Rice
Exports (2011): USD
802,994
Main importers: Peru
Rice has become a traditional item in
Bolivian diet and an essential ingredient in
many recipes. In Bolivia, the consumption
adds up to 38 kg per person per year.
The production of this cereal generates
70,000 direct and indirect jobs. Rice is
produced in 7 of the 9 Departments (Oruro
and Potosí are the exception). However,
98% of the rice production is located in
Santa Cruz.
80% of worldwide rice is consumed
in large grains; however Bolivian
rice grain is too small for export.
Therefore it is necessary to
introduce genetic management.
Market niches such as Fair Trade
certified rice, GMOs and aromatic
rice, could be reached.
Sesame
Exports (2011): USD
15,707,735
Main importers: Japan,
USA, Netherlands, Peru
and Germany
Sesame is grown primarily for its oil-rich
seeds. The small sesame seed is used
completely for cooking because of its rich
nutty flavour and also yields sesame oil.
Sesame seed is mainly used for the
preparation of different bakery products
and it is also very important in the
gastronomic industry, being used as
cooking oil or for salad dressings.
90% of the production is exported.
However, the production is sold as
raw material, and therefore it is
necessary to develop the
derivatives.
Despite its healthy properties,
sesame is little consumed in local
markets, and is only used in the
bakery industry.
Bovine meat
The production of bovine meat has been
increasing through the incorporation of
modern genetic technology and new
methods of grass cultivation.
71% of the production is located in the
Departments of Beni (42%) and Santa Cruz
(29%). In 2011, the production reached
8,400,439 bovines.
Exports of bovine meat are
deficient due to public restrictions
(quotas) and unfavourable weather
conditions.
Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE)
Bolivian Business Development Profile | 21
Oilseeds cluster: Soybeans and sunflower seeds
A large part of the department of Santa Cruz has shown excellent conditions for growing
soybeans and sunflower seeds. It has yet to implement African palm oil plantations, but that is
probably only a question of time. The cluster is relatively developed (compared with other
Bolivian chain); however the potential is not fully exploited.
List of companies in the Oilseeds clusters Alimentos Alfa Ltda. (Cochabamba, Phone 4270094) ALSA - Clara Bella ([email protected]) Boltagro S.R.L. (www.boltagro.com.bo) Coinco-Bol Ltda ([email protected]) Etasa S.R.L. (Santa Cruz, 591(3) 3527744) Fas S.A. (Santa Cruz, 591(3) 3882827) Gravetal Bolivia S.A. (www.gravetal.com.bo) Industrias de Aceite Fino S.A. (www.fino.com.bo) Itika S.A. (www.itikasa.com) IOL-Industrias Oleaginosas S.A. (www.iol-sa.com) Montecristo Bolivia S.R.L. (www.montecristobolivia.com) Nutrir S.R.L. (Tarija, 491 (4) 6672886) SAO – Sociedad Aceitera del Oriente S.A. (www.admsao.com) Semilla Mônica S.R.L. (Santa Cruz, 591(3) 3466499) Source: Antelo (2007), Muriel and Valencia (2010)
5.1.4 Forests
The forest area located in the Departments of Beni, Pando and North of La Paz is a producer of
many products highly appreciated for their unique characteristics. A vast majority of them are
not cultivated but only harvested, and consequently are considered as organic products.
Among those products Bolivia has a variety of exotic fruits from the Amazon forest which are
collected by people in the communities for domestic consumption. The fruits can be introduced
to external market under the slogan of “exotic fruits”. Some exotic fruits are: Copoazú
(Theobroma grandiflorum); Açaí (Euterpe oleracea); Achachairú (Garcinia humilis); Guava
(Psidum spp.); Ocoró (Rheedia brasiliensis); Tumbo (Passiflora tripartita); Tuna (Opuntia fiins-
indica L.); Chirimoya (Annona cherimola) and Pacay (Inga fenillea).
Potential products Opportunities Challenges
Brazil nuts
Exports: (2011): USD
In the northern part of Bolivia, (the
Departments of Beni and Pando) the
production of Brazil nuts from the
Amazons has reached high quality levels.
The nuts are sold to wholesalers
and brokers, without any added
value.
Bolivian Business Development Profile | 22
Main importers: UK,
USA, Germany,
Netherlands and
Australia
Bolivia is the largest producer and
worldwide exporter of this product. It is
one of the preferred ingredients for snack
bars, the chocolate industry and due to its
high content of vitamin E it is highly
appreciated in the cosmetics industry.
Shelling is a manual work, so it is
necessary to introduce technology
for this phase of production.
Develop the production of
derivatives of Brazil nuts such as
the oil for the cosmetic industry.
Cocoa
Exports (2011): USD
2,525,327
Main importers:
Switzerland, Germany,
Argentina, Denmark and
USA
Bolivia produces a cocoa with high purity
and special taste. Cocoa is produced in the
northern area of the Department of La Paz,
and in the plains of Department of Beni
and it is usually harvested by rural
communities.
After careful selection the cocoa beans are
fermented and dried, so they are ready to
be transported to the factories.
It is necessary to expand the
volume of the production and
improve the practices of harvesting
with quality control systems.
Introducing technical expertise in
genetic resources management.
Only a few organizations
/companies are working in this
area.
Macadamia
Exports (2011): USD
158,454
Main importers: UK and
Italy
Macadamia nuts are a valuable food crop
and are highly nutritious. They have the
highest amount of beneficial mono
saturated fats of any known nut.
Macadamia oil is prized for containing
approximately 22% of the Omega-7
palmitoleic acid, which makes it a botanical
alternative to mink oil.
Moreover, the content of palmitoleic acid
plus Macadamia’s high oxidative stability
makes it a desirable ingredient in
cosmetics, especially skincare.
Macadamia is still in a phase of
introduction for Bolivian producers.
Only some productive ventures are
developed in the north of the
country and in Japanese colonies in
the Department of Santa Cruz.
It is necessary to expand the
production in order to satisfy the
demand in developed markets.
The introduction of technology and
genetic advances are important in
order to reach this.
Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE)
Bolivia: Agricultural production, campaigns 2006 – 2011
(In metric tonnes)
Description 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011
Cereals 1,792,642 2,109,850 2,367,468 1,836,892 2,057,738 Rice 376,970 435,960 410,994 449,482 473,522
Barley grain 47,368 47,010 47,608 47,604 42,934
Corn 812,318 1,000,385 1,174,447 718,014 877,047
Quinoa 28,231 28,809 29,873 30,900 36,854
Sorghum grain 365,040 436,133 503,038 335,536 389,534
Wheat 162,715 161,553 201,508 255,356 237,847
Stimulants 30,727 31,760 32,917 33,570 33,064
Cocoa 4,028 4,357 4,510 4,652 4,729
Bolivian Business Development Profile | 23
Coffee 26,699 27,403 28,407 28,918 28,335
Fruits 853,409 853,464 880,637 905,653 903,335
Banana 151,760 149,594 154,227 158,178 160,264
Peach 30,780 31,719 32,811 33,636 33,274
Mandarin 113,868 122,465 127,337 130,108 128,516
Orange 157,184 161,453 165,397 170,796 170,221
Pineapple 47,789 46,808 48,074 48,986 48,490
Plantain 327,362 317,757 328,495 338,901 337,910
Grapes 24,666 23,668 24,296 25,048 24,660
Vegetables 270,784 277,782 279,405 312,577 291,856
Garlic 6,688 7,166 7,420 7,278 7,055
Pea 21,613 21,595 22,194 22,720 21,383
Onion 71,030 80,300 78,585 81,048 78,919
Beans 41,200 38,195 38,522 67,670 57,603
Lima Beans 55,245 56,466 57,419 58,609 55,067
Maize 21,508 21,736 22,195 22,190 21,311
Tomatoes 53,500 52,324 53,070 53,062 50,518
Oilseeds and Industrial 8,267,695 9,004,405 10,120,298 8,143,604 7,936,697
Cotton 3,323 2,480 1,357 386 3,105
Sugar cane 6,429,700 7,458,808 7,803,800 5,891,788 5,456,598
Sunflower 173,300 298,642 394,207 310,841 152,652
Peanuts 12,410 13,000 13,315 13,439 12,496
Sesame 14,693 5,590 15,000 10,000 12,000
Soybeans 1,634,269 1,225,885 1,892,619 1,917,150 2,299,846
Tubers and Roots 1,147,557 1,179,850 1,205,808 1,230,700 1,187,160
Potatoes 892,554 935,862 956,953 975,418 943,176
Cassava 255,003 243,988 248,855 255,282 243,984
Forages 311,033 316,972 329,239 335,501 325,120
Alfalfa 176,274 183,999 190,252 193,770 187,507 Barley Cabbage 134,759 132,973 138,987 141,731 137,613
Total 12,673,847 13,774,083 15,215,772 12,798,497 12,734,970
Source: National Institute of Statistics (INE)
Cacao and Derivative Products
Cacao production in Bolivia has optimal climate conditions: temperatures between 15°C and 30°C, humidity of 65% to 85% and altitude between 0 and 1,300 metres above sea level. The most favourable regions are the North of La Paz, Beni, Pando, and the wooded areas of the Department of Santa Cruz. Bolivia’s participation in the international cacao market is low: 0.1%. However, Bolivian cacao stands out for being organic and internationally accredited, which places the country among the main producers of this valued product.
List of companies in the Cocoa Industry
Agroecológica Flor de Camata AGREFAC S.R.L (La Paz, 591 72545365)
AGROTAKESI (La Paz, [email protected])
VICOPEX Ltda. (La Paz, www.vicopex.com)
Sociedad Agropecuaria Industrial y Técnica (El Alto, www.quinuasaite.com)
Bolivian Shoji S.R.L. (Santa Cruz, [email protected])
Chocolates el Ceibo (La Paz, www.elceibo.com)
Bolivian Business Development Profile | 24
Chocolates Belmore (La Paz, www.chocolatesbelmore.com)
Breick Chocolate Natural – INCADEX S.R.L. (La Paz, www.breick.com.bo)
Chocolates Condor S.R.L. (La Paz) (www.chocolatescondorsrl.com)
Fábrica Nacional de Chocolates Aguila S.R.L. (La Paz, [email protected])
Manjar de Oro (La Paz, www.manjardeoro.com)
Chocolates Tropical (El Alto, 591 (2) 2191969)
Itenéz (Santa Cruz, www.productositenez.com)
Chocolates Briancon (Sucre)
Chocolates del Sur (Sucre, 591 (4) 6453259)
Chocolates Para Ti (Sucre, www.chocolatesparati.net)
Harasic Ltda. (Oruro, 591 (2) 5241646)
5.2 Industrial Manufacturing
Annually, manufacturing has accounted for approximately 19% of Bolivia’s gross domestic
product since 1995. Most industry is small-scale, aimed at local markets rather than national
operations. Inadequate credit access and competition from the black market have kept Bolivia’s
manufacturing sector from developing fully.
The level of industrial manufacturing activities has been increasingly significant in the past
years as the country goes into a phase of greater competition and market expansion for
processed products.
Potential sector Opportunities Challenges
Leather
Exports (2011): USD
52,809,409
Main importers:
Italy, China,
Argentina, Chile and
Germany
Bolivian leather presents some optimum
characteristics in thickness, colour, texture and
finishing.
The vast majority part of the processed leather
in the country comes from the eastern zone and
it is used in a 50% for the fabrication of shoes,
30% in clothing and accessories and 20% for
production of leather goods.
Some goods are made of exotic reptile leather
with high quality and taking into account the
developmental concerns.
Only a few companies are capable
of giving the leather some added
value.
Use of improved technology in the
production of raw material for the
elaboration of goods.
Bolivian Business Development Profile | 25
Textiles and Clothing
Exports (2011): USD
41,329,678
Main importers:
Venezuela, USA,
Argentina, Chile and
Brazil
Bolivia has a competitive advantage in its cheap
but qualified workhand in the sector of textiles
and clothing. The country possesses a variety of
cotton fibres, alpaca and lama wool which gives
the final products a considerably added value.
The production of clothing has increased
markedly and has achieved improvements in
quality, making use of cotton and fine animal
fibres (llama and alpaca). Bolivia’s 2 million
llamas and 500,000 alpacas provide a good
potential for fibre and textile processing.
This sector has been one of the
most affected after the loss of
ATPDEA of the USA. Many small
and medium producers with a
limited capacity are now looking
for new markets.
Increasing the capacity of
production (financing and
technology) in order to satisfy
new markets is the priority.
Jewellery
Exports (2011): USD
53,009,109
Main importers: USA,
Canada, Dominican
Republic, Panama
and Colombia
There are some companies (national and
foreign) dedicated to the production of jewellery
and imitation of jewellery, located mainly in the
Departments of La Paz and Santa Cruz.
Gold and silver jewellery as well as semi-
precious stone could be potential for investors
in this sector.
Integration of the productive
chain and involved actors within
the sector.
Local demand is limited, so the
production needs to be exported.
Bio commerce
Exports (Est. 2010):
USD
7,701,684
Main importers:
USA, UK,
Netherlands, France
and Germany
There are six subsectors to develop within the
Bio commerce: exotic fruits, nuts, cosmetics,
dyes, natural medicines and nutritional
products.
Some examples are: urucú (bixa orellana), maca
(lepidium meyenii), copaibo (copaifera paupera),
majo (oenocarpus bataua), palqui (cestrum
parqui), tara (caesalpinea spinosa), peppers,
bamboo, among others.
New trends of healthy, nutritional and nostalgic
products could be an opportunity for the
introduction of these resources of Biodiversity
into the external markets.
The main barriers for Bio
commerce development are the
financial and technological issues.
These products are in its majority
destined to local markets due to
the traditional consumption of
them. However, their presence is
insignificant for the economy.
The more important issues to
work on in this area are the
sanitary and quality control,
packaging and labelling.
Timber and
manufactures
Exports (2011): USD
87,217,721
Main importers:
USA, China,
Argentina, Germany,
and Netherlands
48% of Bolivian territory is covered by forest,
distributed between the tropical and subtropical
regions, mainly in the Departments of Santa
Cruz, Beni, Cochabamba, Pando and Tarija.
The country possesses about 800,000 hectares
of certified forest, and 7 million hectares under
sustainable management. There are about 172
varieties of fine and exotic woods.
This sector is formed by 1,200 companies that
generate about 62,000 direct employments and
250,000 indirect employments.
Ensuring sustainable extraction of
timber in order to acquire
certifications such as the FLEGT
Certification in the EU.
Introduction of technologic
advances in the area of
controlling the smuggling of raw
material for manufacturing
products.
Bolivian Business Development Profile | 26
Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE)
Leather and leather manufactures
Another way to create more value-added (mainly) from the cattle sector is to produce leather and leather products, which has comparative advantages. Denmark could contribute to business partnerships through machinery and technology for producing leather and design and market access for products with higher value-added. Bolivia also has potential to develop the production of more exotic skins, such as alligator skins for very high value-added products.
List of companies in the Leather cluster Manufactura Boliviana S.A MANACO (Cochabamba, www.bata.com.bo) AKÖE (Cochabamba, 591 (4) 4457373) Altco Leather Trading Company (Cochabamba, 591 (4) 4588492) Andino Internacional Ltda. (La Paz, [email protected]) Bolivian Pelli Asociados (Santa Cruz, [email protected]) Compañía Industrial de Cueros CIENSA Ltda. (Cochabamba, www.ciensa.com) Cueros Abalos (Santa Cruz, 591 (3) 3477894) Curtiembre y Marroquinería D’addario S.R.L (Santa Cruz, www.daddario.com) Enphesa S.R.L (Cochabamba, [email protected]) Exim-Cuer Boliviana Ltda. (La Paz, www.eximcuer.com) Fabrica Nacional del Calzado y Curtiduría Zamora S.A (Oruro, 591 (2) 5274740) Industria de Cueros Diamante Ltda. (Santa Cruz, [email protected]) Industrias del Cuero Bonanza XXI (La Paz, www.companex.com) MACAWS S.R.L (Cochabamba, www.macaws.net) Manufactura Boliviana S.A MANACO (Cochabamba, www.bata.com.bo) Source: Miranda (2003) and webpages.
Textile and Clothing
Bolivia has potential for developing the textile and clothing subsector, principally by its camelid fibre production. This would mainly be for exports, as the domestic demand for textiles and clothing is covered by much cheaper clothing imports and even used clothing. Several highland indigenous groups have a very sophisticated weaving tradition, which could add to this potential. The Danish contribution would be mainly in the form of design and market access.
List of companies in the Textile and clothing Industry Agencias Generales (Oruro, 591 (52) 2434854 Appecal S.R.L (El Alto, 591 72082477) Aries Confecciones (El Alto, 591 (2) 2386518) Ballivian Asociados (El Alto, 591 (2) 2121643) Beltex Corp. (Cochabamba, 591 (4) 4352321) BOSHAMI S.R.L. (La Paz, 591 (2) 2261953) COEX S.R.L (Santa Cruz, 591 77389770) Comercial Mercedel (El Alto, 591 76248001) Contagio (Santa Cruz, 591 77343002) COTEXCO (Cochabamba, 591 (4) 4268353) Creaciones Paola (El Alto, 591 (2) 2395896) D Fashion Centes (Cochabamba, 591 (4) 4550625) DINATEX (La Paz, 591 (2) 2222324) FABATRI Jeans (El Alto, 591 71587437) JEN (El Alto, 591 (2) 2796023) JOSDO Ltda. (La Paz) JT Jeans (Santa Cruz, 591 70935984) Lijori Sport (El Alto, 591 76227240)
Bolivian Business Development Profile | 27
MAKAM (Santa Cruz, 591 (3)3453796) MAYPECC (Cochabamba, 591 71756966) Mazal S.R.L (La Paz, 591 (2) 2111906) Mitsuba (Santa Cruz, 591 (3) 3480003) SUMAISI (El Alto) SURI Export (La Paz, 591 (2) 2413663) Textiles Novotel (El Alto, 591 71217213) TOMICHIS (Cochabamba, 591 73509886) VAL y FAL (El Alto, 591 (2) 2815108) YES Diseño y Alta costura (El Alto, 591 (2) 2752135) Source: information based on www.gnb.com.bo .
The pharmaceutical industry (including phytotherapeutic products)
Notwithstanding the low level of development and technology employed, the pharmaceutical industry is considered one of the most competitive subsectors in Bolivia, generating considerable economic resources which is however low as compared to other countries (Jordán, n.d.). Furthermore, the great number of medicinal plants produced in the country (many of them native to Bolivia) place the subsector in a position of potential comparative and productive advantages, which may be exploited through new investments and strategic partnerships. A) Approximately 2.500 different medicinal plants are used in pharmacy and cosmetology in Bolivia. Among those with greatest potential are:
List of Medicinal Plants with Great Potential in Bolivia Common Name Uses Category A: With markets and research Wira wira Expectorant Ajenjo Stimulant of appetite, parasitosis Carqueja, tres espigas Diuretic, anti-inflammatory, choleretic, cholagogue Green tea Stimulant, antioxidant, anti-inflammatory, antiarthritic Quina, husk Fever, malaria, antiseptic, anaemia Artichoke Choleretic, cholagogue Sangre de Drago, Llausa, Mora Cicatrizing, anti-inflammatory, antioxidant Curcumina Antitumor, anti-inflammatory, antioxidant Kidron Antiflatulent, Sedative Paico Quenopodio Antispasmodic, anthelmintic Echinacea Antiviral, immunomodulatory Coca Analgesic and others in study Eucalyptus Antiseptic, expectorant, rubefacient Hinojo Sweet Anis Galactogogue, antiflatulent, antispasmodic, carminative Nogal blanco Antidiarrheal, cicatrizing Maca Immunomodulatory, dietary supplement Marrubio Expectorant, diuretic Chamomile Antispasmodic, anti-inflammatory Melissa Sedative, choleretic, antispasmodic Mint Antispasmodic, antiflatulent, choleretic, halitosis
Basil Antiseptic, anti-inflammatory, antispasmodic, antiflatulent, galactogogo
Llantén Sore throat, diarrhea, liver problems Maracujá Sedative, antispasmodic Boldo Laxative, choleretic, colagogo Quilquiña Flavoring agent Rosemary Antispasmodic, carminative
Zarzamora Silvestre Astringent, antidiarrheal, headache, varicose veins, hemorrhoids, skin problems
Bolivian Business Development Profile | 28
Estevia Hypoglycemic action against obesity, cariotonic, diuretic, anti-rheumatic, anti-caries, anxiolytic, antimicrobial
Mallow Expectorant, anti-inflammatory, laxative
Huacataya, suico-suico Nervous system regulation, stomach pain, digestive, flatulence, loss of appetite
Amargen, diente de león Choleretic, diuretic, mild laxative Uña de gato Anti-inflammatory, antioxidant, immunomodulatory Valerian Sedative, relaxing, antispasmodic
Category B: With insufficient research Akhana, Kita Retama Antimicrobial Achiote Anti-inflammatory Ipecacuana, Ipeca Intestinal infections, amoebic dysentery, colds, asthma Copaiba Antibacterial, anti-inflammatory, healing, skin sore, Psoriasis Casca Sacaca Antidiarrheal, reduces the cholesterol Pinco pinco, sanu sanu Cough, asthma, fever, bronchitis, arthritis, edema Manzana bi Food medicine Wapi Trompillo de monte Medicinal use
Piñón Emetic, antiparasitic, gastric purgative, rubefacient, anti-inflammatory
Camu-Camu Astringent, antioxidant, anti–inflamatory, emollient, nutritional supplement, hypertension
Kalawala Mid purgative, remedy for coughs, stimulant of appetite Apainichij apainiki Leishmanicidal Cedrillo Astringent, antispasmodic, anti-inflammatory Airampu Inmunomodulator, antiviral, antimicrobial, hermostatic, pesticide Limoncillo Digestive, flavoring, antimicrobial, pesticide
Category C: With no research Carqueja Rheumatism, anridiabetic, anticancer, antiviral Chima Tembe Medicinal use Evanta hembra Leishmanicidal, antiparasitic Banana Sap Immunomodulator, tuberculosis, astringent PuliPuli Skin healing
Matico Fungal infections, leishmanicidal, astringent for bleeding, ulcers, antidiarrheal, antiseptic vaginal
Muña, Khoa Antiparasitic, insecticide, food preservation Guirakilo Antifungal, fever Surucuina PLA2 inhibitor, antiarthritic, anti – pancreatic Flor de Nieve Ant prostatic Source: Terceros et al. (2007).
List of companies in the pharmaceutical industry
ABL PHARMA BOLIVIA Ltda. (www.ablpharma.com) COINCOCA (Cochabamba, 591 (4) 4618077) FARMAGE (www.farmage.com.bo) Grupo ALCOS (www.grupoalcos.com) Industrias Torrico Antelo S.R.L. (www.itasalud.com) Industria Farmacéutica Boliviana Ltda. (Cochabamba, 591 (4) 4226001) Laboratorios ALEPH (www.aleph-cosmetologia.com) Laboratorios Bago de Bolivia S.A. (www.bago.com.bo) Laboratorios Alfa Ltda. (www.pharmalabalfa.com.bo) Laboratorios COFAR S.A. (www.cofar.com.bo) Laboratorios CREPAL S.A. (www.crespal.com) Laboratorios Esfasa S.A. (La Paz, 591 (2) 2410766) Laboratorios Droguería INTI S.A. (www.inti.com.bo) Laboratorios FARCOS y ARGEBOL Ltda. (www.laboratoriosfarcos.com) Laboratorio Hahnemann (www.labhahnemann.com) Laboratorios IFA S.A. (www.laboratoriosifa.com)
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Laboratorios IFARBO Ltda. (www.ifarbo.com) Laboratorios LAFAR S.A. (www.lafar.net) Laboratorio MALENA (Cochabamba, 591 (4) 4226847) Laboratorio MINERVA (La Paz, 591 (2) 2411845) Laboratorio Químico Farmacéutico Industrial DELTA S.R.L. (La Paz, 591 (2) 2411845) Laboratorio Químico Farmacéutico Galeno - LAQFAGA S.R.L. (La Paz, 591 (2) 2225511) Laboratorio REX (www.farmacia-rex.com) Laboratorios VALENCIA (Cochabamba, 591 (4) 4265641) Laboratorios VITA S.A. (www.laboratoriosvitasa.com) Naturalcos S.A. (www.naturalcosbolivia.com)
Timber products
Half of Bolivia’s territory is covered in forest, but the economic value produced from these forests is currently very low, indicating severe underutilization. Several hundred thousand hectares are burned every year to make room for agriculture, and in dry years even more is lost to wildfires. Even in managed timber concessions, half of the wood logged is lost in the process of cutting the logs into timber for exports. A very small part of the wood is further processed into furniture, doors, floors and other products with higher value-added. The main limitation is technology and design, which is where Danish firms could make a big difference. List of companies in the Wood Cluster Altmann Montero Exportaciones S.R.L (Santa Cruz, [email protected]) Bolivian Exotic Wood (Santa Cruz, www.bolivianexoticwoods.net) CIMABEN S.R.L (Beni, [email protected]) Ecowood bo (Cochabamba, www.ecowoods.net) Escala Design (La Paz, www.escaladesign.com) Forestales MULTIAGRO (Cochabamba) (www.multiagro.org) Industrias Nobleza (Cochabamba, 591 (4) 4761770) Jacaranda S.A (Cochabamba, 591 (4) 4268053) La SENDA (El Alto, 591 (2) 2808367) Maderas de Bolivia KBOL (Consorcio Maderero) Maderera Forest for Ever Ltda. Maderplus S.R.L (Cochabamba, www.maderplus.com) Madervaf S.R.L (Cochabamba, www.madervaf.com.bo) Martínez ultra tech doors (Cochabamba, www.utddoors.com/frame-in.htm) Miles S.A (Santa Cruz) (www.miles.com.bo) Muebles Fátima (Santa Cruz, www.fatimamuebles.com) Muebles SOMAIN (Santa Cruz, www.somain.itgo.com) Sociedad Boliviana Maderera, SOBOLMA (Santa Cruz, www.sobolma.com) SUMA PACHA (La Paz, www.sumapacha.bo)
Dairy products
One of the ways to create more value-added in the cattle sector is to produce milk and dairy products. This is one of Denmark’s specialties. Denmark produces almost 5 million tonnes of milk and 350 thousand tonnes of cheese from its stock of 1.5 million cattle. In contrast, Bolivia produces only 350 thousand tonnes of milk and 7 thousand tonnes of cheese from 7.3 million cattle. Thus, technology transfers from Denmark could potentially create enormous productivity gains, reducing the pressure to clear more forest for cattle pastures. List of companies in the dairy industry Alsa Clara Bella (Santa Cruz, www.alsa-clarabella.com) Compañía de Alimentos CAL (Delizia) (La Paz, www.delizia.com.bo) Cooperativa Integrala Ganadera Pil Beni Ltda. (Beni) Delicruz S.A (Santa Cruz, 591 (3) 3644642) Flor de leche S.R.L. (La Paz, www.flordeleche.com) Ilpaz Ltda. (La Paz, [email protected]) Industrias Lácteos del Valle Alto (ILVA) (La Paz, 591 (2) 2416772)
Bolivian Business Development Profile | 30
La Campiña S.R.L (Santa Cruz, [email protected]) Lácteos de Bolivia LACTEOSBOL (La Paz, www.lacteosbol.sedem.gob.bo) Pil Andina S.A (Cochabamba, www.pilandina.com.bo) Pil Chuquisaca (Chuquisaca, 591 (4) 6461732) Pil Tarija S.A (Tarija, [email protected]) Productos Lácteos VIGOR (Cochabamba, [email protected]) Productos MAUERY (Cochabamba, [email protected]) Productos Maya (La Paz, www.quesosmaya.com) Prolac Tarija (Tarija, [email protected]) Soalpro S.R.L (La Paz, www.soalpro.com) Sociedad de Productores de Leche Chuquisaca S.A SOPROLECH (Chuquisaca, [email protected])
Meat and meat products
Bolivia has large expanses of natural pastures for llamas, alpacas and sheep in the highlands and cattle in the lowlands. Considerable extensions of lowland forests are also being cleared for pastures, since cattle’s ranching is considered one of the most attractive economic activities in sparsely populated areas with labour scarcity, such as the Bolivian Amazon. However, both primary productivity and value-added are, in general, low. This is in contrast to Denmark, which manages to be one of the top exporters of meat and dairy products, despite the small area and population dedicated to this activity.
Metal Industry The industrial machinery also holds great potential for mutually beneficial partnerships, as
Bolivia has the raw materials as well as a long tradition in metalworking. In addition, its central
location in South America could provide a good platform for production and exports of heavy
machinery to the whole continent.
Jewellery Industry
Jewellery in Bolivia has potentially comparative and productive advantages as a result of the
raw materials employed. Bolivia has traditionally been a mining country, with resources such
as gold, silver, and copper, among others. These minerals may be combined with precious and
semi-precious stones such as Bolivianita.
Also, jewellery products have become part of an important non-traditional export industry in
the country, with an average participation of 5.4% in these exports in 2000-2011.
Lithium derivatives
Bolivia is the owner of one of the largest lithium reserves in the world (approximately 6 million of tonnes in 12,000 Km2). Lithium properties have been allowed to be used as an energy source for automotive vehicles, cell phones, computers, among others products of last technology. That makes the lithium a potential product for Bolivian economy. The DBP programme can promote projects which seek to produce lithium derivatives.
Difficulties of manufacturing industries 2009 2010
Raw material supply 8.86% 17.68%
Qualifying staff supply - 3.9%
Contraband 19.08% 13.06%
Less demand 26,15% 22.73%
Social conflicts 4.98% 5.08%
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Increase of raw material prices 11.05% 18.06%
Other factors 29.80% 19.41%
Source: National Institute of Statistic (INE)
These key factors, with high-priority for the DBP Programme, have competitive advantages,
because they are articulated in value chains. Competitive improvements in some companies
have effect even on the level of producers of raw materials and on employment opportunities.
The reduction of unemployment is one of the most important challenges in Bolivia.
5.3 Tourism
Incomes of tourism in Bolivia have grown four times since 2002, based on a better knowledge
of the diverse opportunities and an increasing promotion of the country as a touristic
destination. Since 2012, Bolivia is developing the “Country Brand” with a campaign known as
“Bolivia is waiting for you”.
Bolivia offers a wide range of natural and cultural diversity to attract tourists interested in
nature and ancient culture. The geographic configuration of the country gives it a vast
biodiversity that begins in the Cordillera, reaching altitudes above 6,000 meters with glaciers
and extraordinary summits for rock climbing/trekking, but also offers lowland where
adventurers can reach deep into de tropical Amazon jungle.
The unique biodiversity has made it possible to establish 64 protected areas, natural parks
occupying around 17 % of the country.
The extraordinary diversity of the 32 ethnic groups and the folkloric values of music, dance and
handicrafts, represent a great cultural variety. This variety of natural and cultural aspects
allows a vast opportunity and potential for the tourism sector. However, the levels of
infrastructure, road and air transport, and the quality of services, including hotel, restaurants,
cafes etc. need to be improved, before Bolivia can be turned into a major tourist destination.
Frequent conflicts causing blockades and strikes are other challenges. In spite of this, Bolivia’s
tourist industry has grown gradually over the past 15 years.
5.4 Services Services in Bolivia have incremented their importance in last years motivated by the
telecommunication improvement and development of agroindustry, mining and hydrocarbons
industries.
Main Services Sectors
Trading companies
Banks and finance companies
Freight and transportation
Custom services
Storage and distribution
Insurance
Tourism, hotels and restaurants
Business services
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Construction and engineering services
Computer and telecommunication services
Computer and telecommunication services have experimented an impressive growing over the last years. Almost 87% of the population is registered in a cell phone service company. However, only 30% have access to the internet.
Users of mobile telephony in Bolivia
Access to the Internet in Bolivia
Source: The State of Broadband 2012: Achieving Digital Inclusion for All. ITU – UNESCO
Year Users
2005 2,421,492
2006 2,740,636
2007 3,812,241
2008 5,038,600
2009 6,464,390
2010 7,179,293
2011 8,353,273
June 2012 8,974,291
Topic Position % of the population
Active mobile broadband subscription
per 100 inhabitants
1.9 -
Percentage of households with Internet
(developing countries)
66 (between 127
countries)
9.4 %
Percentage of individuals using the
Internet (worldwide)
99 (between 177
countries)
30.0 %
Percentage of individuals using the
Internet (developing countries)
53 (between 132
countries)
30.0 %
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6 Social Development
In the last quarter of 2011, the Government proposed a new “National Development Agenda”,
inclosing the social sectors and institutions, with the perspective to prioritize the needs of the
country and optimize the economic resources. In Bolivia extreme poverty has been reduced by
about 36% in 20002 to 22% in 2011 according to the official data from the United Nations. One
factor that helped to reduce the extreme poverty was the distribution of conditional bonus,
which has permitted broader access to food, education and health.
6.1 Education
The country has achieved improvements in education during the last five years. Almost the 33% of the population is in
school age (4 – 17 years). The formation in technical areas after the secondary education has increased. The number of
universities also has grown. The adult literacy rate in Bolivia is between 85% and 95%.
Source: Ministry of Education
6.2 Health
The health system in Bolivia presents huge differences between rural and urban areas. There is
a lack of skilled health personnel and technologic advantages in rural areas. However, the
country has improved the access to the basic medical care for pregnant women and children.
Indicators of Health (2010) Country
average
Global
average
Life expectancy at birth 68 68
Life expectancy at birth (Male) 66 66
Life expectancy at birth (Female) 70 71
Under five mortality rate (per 1,000 live births) 54 57
Maternal mortality ratio (per 100,000 live births) 190 210
Prevalence of HIV (per 1,000 adults aged 15 to 49) 2 8
Prevalence of Tuberculosis (per 100,000 population) 209 178
Source: World Health Organization. Region of the Americas
2 COSUDE Magazine “Food Security: promoting a necessary debate”. Page 6
Indicators of Education (2010) Women Men
Population in school age (4 – 17 years) 1,653,106 1,716,878
Population with secondary education level
achieved 1,308,538 1,369,775
Primary education level achieved (urban) 95.6% 93.8%
Primary education level achieved (rural) 93.2% 92.0%
Secondary education level achieved (urban) 94.1% 88.6%
Secondary education level achieved (rural) 93.6% 90.4%
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HIV/AIDS in Bolivia
In Bolivia, HIV/AIDS is still a relatively limited problem. According to the Ministry of Health
and Sports, between 1984 and 2011, 7,642 cases of HIV/AIDS were reported as positive
(63% men, 36% women and 1% unknown). Only in 2011, there were 1,384 cases reported.
90% of the infected people live in Santa Cruz, Cochabamba and La Paz, in that order of
importance.
6.3 Gender
According to The Global Gender Gap Report 2012, elaborated by the World Economic Forum,
Bolivia is in the position 30 among 135 countries. The country has the best position in South
America.
Bolivia: Position in Gender Indicators
General Position
(between 135
countries)
Economic
and
Opportunity
Educational
Attachment
Health
and
Survival
Political
Empowerment
30 79 98 84 20
Source: The Global Gender Gap Report 2012. World Economic Forum
Gender parity in education has been achieved for primary and secondary education. However,
in tertiary education males are favoured. In terms of labour there is a higher participation of
male employees in secondary sectors (industrialization companies) and females in service
sectors.
Labour: Participation by gender in Bolivia, 2010
Sector Men Women
Primary sector 33.1% 33.0% Secondary sector 26.1% 10.3%
Tertiary sector 40.8% 56.7% Total 100 100
Source: Labour Overview in Latin America 2011. International Labour Organization (ILO)
6.4 Indigenous Peoples´ Rights
Indigenous people are protected by the Constitution and the International Agreements and
Protocols in this area. Bolivia has become the first country to ratify the UN Declaration of
Indigenous Rights (September 13th, 2007).
The 2009 Bolivian constitution recognizes the rights of indigenous peoples to their original
communal lands, guaranteeing the use and improvement of sustainable natural resources—in
line with an alternative vision of development that seeks the spiritual and collective well-being
of people as well as greater harmony with nature. However, in recent years, conflicts such as
the conflict over a highway through the TIPNIS national park, which is also a titled area for the
indigenous peoples living in the area, has challenged the actual implementation of these rights.
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6.5 Corporate Social Responsibility (CSR)
Corporate Social Responsibility (CSR) has become an important trend in the Bolivian business
environment. There is a greater commitment and interest in introducing this issue in the
productive sectors. However, vast majority of companies in Bolivia are still in the first stage of
the CSR. Only big companies achieve the main parameters of CSR.
CSR in Bolivia is deficient in the agriculture sector, especially in the area of labour rights,
because of the existence of child labour, poor social conditions and very low salaries. However,
there are companies in the secondary and tertiary sector that implemented quality control
mechanisms in its productive chain.
Population occupied with social security contributions and employment contract, 2010
Sector Social security contributions Employment Contract
Agriculture 8.2% 35.2%
Industries 23.9% 82.1%
Construction 14.7% 55.6%
Commerce 20.3% 20.7%
Transport 24.1% 26.5%
Services 58.0% 75.9%
Source: Labour Overview in Latin America 2011. International Labour Organization (ILO)
Organic and Fair Trade Certification Between the most important Bolivian products commercialized with Organic Certification are the Andean cereals, chocolates, coffee and infusions. There are almost 10,000 small producers grouped into more than 500 organizations in La Paz, Cochabamba, Santa Cruz and Tarija, working under the Organic denomination with a commerce focused on fair prices and with the potential of selling under the Fair Trade Certification. In 2011, as a whole they exported almost USD500 million of their production. Besides, there were born some associations of little producers of handicrafts, alpaca textiles and clothing and other organic products applying the principles of Fair Trade Certification.
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7 Useful Information
7.1 Visa applying
Danish citizens do not need a visa to enter Bolivia as tourists. However, to be able to work in
the country it is necessary to have a visa.3 Bolivian citizens need a visa to enter Denmark and
other Schengen countries.
7.2 Trade Fairs
Trade fairs as a promotional element are very common in Bolivia. Many of the businesses done
in the country have been promoted into a trade fair. Some of the more important fairs in
Bolivia are listed below:
Fair Sector City Web Site
EXPOCRUZ
Live animals, food and beverages,
manufacturing products, agricultural
and industrial machinery, vehicles,
cosmetics, furniture, construction and
services
Santa Cruz http://www.fexpocruz.com.bo/
FEICOBOL
Food and beverages, manufacturing
products, industrial machinery,
vehicles, cosmetics, furniture, and
services
Cochabamba http://www.feicobol.com.bo/
FIPAZ
Food and beverages, manufacturing
products, vehicles, cosmetics, furniture
and services
La Paz http://www.fipaz.com.bo/
EXPOSUR Food and beverages and manufacturing
products Tarija
http://www.exposur.tarija.gob.
bo/
3 General Direction of Migration: http://www.migracion.gob.bo/web/
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8 Contact A list of public and private institutions or associations, which can be useful in case of establishing businesses, dealing with procedures or getting information, is detailed below:
Institution Web Site
Ministry of Foreign Affairs http://www.rree.gob.bo/
Ministry of Economy and Public Finances http://www.economiayfinanzas.gob.bo/
Ministry of Agricultural Development and Grounds http://www.agrobolivia.gob.bo/
Ministry of Productive Development and Plural Economy http://www.produccion.gob.bo/
Ministry of Environment and Water http://www.mmaya.gob.bo/
Ministry of Labour and Social Prevision http://www.mintrabajo.gob.bo/Principal.asp
Ministry of Inst. Transparency and Fight against Corruption http://www.transparencia.gob.bo/
Promueve Bolivia http://www.promueve.gob.bo/
National Service of Taxes (SIN) http://www.impuestos.gob.bo/
Central Bank of Bolivia (BCB) http://www.bcb.gob.bo/
National Customs of Bolivia (ANB) http://www.aduana.gob.bo/index2/index_direct
o.htm
Bolivian Institute of Normalization and Quality (IBNORCA) http://www.ibnorca.org/inicio/noticias
National Service of Agricultural Sanity and Food Safety http://www.senasag.gob.bo/
National Service of Exports Verification (SENAVEX) http://www.senavex.gob.bo/
Bolivian Institute of Metrology (IBMETRO) http://www.ibmetro.gob.bo/
Register of Commerce (FUNDEMPRESA) http://www.fundempresa.org.bo/
National Chamber of Industries (CNI) http://www.bolivia-industry.com/aldia.php
National Chamber of Commerce (CNC) http://www.boliviacomercio.org.bo/
National Chamber of Exporters (CANEB) http://www.caneb.org.bo/
Bolivian Institute of Foreign Trade (IBCE) http://www.ibce.org.bo/
Forestry Chamber of Bolivia (CFB) http://www.cfb.org.bo/CFBInicio/
Confederation of Private Entrepreneurs of Bolivia (CEPB) http://www.cepb.org.bo/
Agricultural Chamber of the Eastern (CAO) http://www.cao.org.bo/
Association of Producers of Oil seeds - Wheat (ANAPO) http://www.anapobolivia.org/
Official Tourism Web Site http://www.bolivia.travel/
Corporate Social Responsibility (CSR Bolivia) http://www.coborse.org/
http://www.rsebolivia.org/
Exclusively Bolivian (Potential Suppliers) http://www.exclusivamenteboliviano.com/
La Razón (Main Newspaper of La Paz) http://www.la-razon.com/
El Deber (Main Newspaper of Santa Cruz) http://www.eldeber.com.bo/
Los Tiempos (Main Newspaper of Cochabamba) http://www.lostiempos.com/
Official Site of Bolivian Legislation http://www.gacetaoficialdebolivia.gob.bo/
