Business Opportunities in Latin America and the Caribbean...BPO: Guatemala has emerged as the best nearshore destination of Central America and the Caribbean to the BPO industry, offering

H.E. Paulina Franceschi Navarro PhD

Ambassador of the Republic of Panama in Austria On behalf of all Latin-American Ambassadors

ICONVIENNA 27 April 2017

Business Opportunities in Latin America and the

Caribbean

Historical and Political Background

Business Opportunities in Latin America and the Caribbean

15th Century

21st Century 19th Century

20th Century

Economic Blocks in Latin America and

the Caribbean

Central American Integration System

Economic Blocks - Business Opportunities in Latin America and the Caribbean

Population: 55.232 million (2010) Total GDP: $ 506.258 billion USD (2010) GDP per capita: $9,898.17 USD (2010) Member States: Belize, Costa Rica, Dominican Republic, El Salvador, Guatemala, Honduras, Nicaragua, Panama European Observers: European Union, Germany, France, United Kingdom, Malta, Serbia and Spain Official language: Spanish

Source: www.sica.int

Trade flow EU and SIECA: EUR 11.6 billion (2014)

Source: European Commission

Total GDP: 3909 trillion EUR (2014)

GDP per capita: 14226 EUR (2014)

Population: 288,996,820 (2014)

Process of regional integration

Objectives: Promotion of free trade; fluid movement of goods, people and currency

Established in 1991 (Treaty of Asunción)

Full Member states: Argentina, Brazil, Paraguay, Uruguay, Venezuela

In process of incorporation: Bolivia

Official languages: Spanish, Portuguese, Guaraní

Source: International Monetary Fund.

Since its inception, Mercosur has allowed the freedom of transit of goods, businesses and people within the combined borders of its Member States.

Business Opportunities in Latin America and the Caribbean

MERCOSUR


How to do Business in the Pacific

Alliance : Partnership –

strategic alliances - Joint Venture

GDP of 1,912 billion € GDP Per Capita 15.270 € The members generate 41% of the region`s GDP

Population of 225 million More than Brazil`s population

43% of the regional FDI Total FDI of 64.800 million € (2015)

FTAs with 60 countries

Access to benefits of markets that

represent 86% of the World GDP

The Pacific Alliance


Opportunities in the Countries of Latin America and the Caribbean

Oportunities in the Countries - Business Opportunities in Latin America and the Caribbean

Argentina “Talent and Opportunity”

Main Indicators (2015)

GDP nominal: € 547 Billion (third largest in Latin

America)

GDP per capita: € 18,952

Population: 43,417,000

Human Development Index: Very High (0,827)

First on Latin America Human Development and

Education Index

45th largest export economy in the world

43rd most complex economy (Economic

Complexity Index)

Imports: € 55.9 billion

Exports: € 54.6 billion

Source: INDEC (National Institute of Statistics and Census of Argentina)

Reasons to invest in Argentina

Strategic location

Openness to the world

Diversified economy

Qualified and creative workforce

Focus on science, technology and productive

innovation

Modern infrastructure and quality connectivity

Abundance and diversity of natural resources

High potential for renewable energy production

Opportunities in the Countries - Business Opportunities in Latin America and the Caribbean


Argentina Renewable Energy and Infrastructure Renewable Energy Act:

•Designed to increase from currently 1.8% to 20% share of renewable energies until 2025.

•Aimed at expanding renewable generation capacity from currently 800 MW to 10,000 MW.

•Launched Renov.Ar program as an integral part of the Act.

Renov.Ar program:

•Public auction to buy 1,000 MW of renewable energy

•Included a “green trust fund” to provide security and confidence to investors.

•Round 1 closed with over 123 proposals. Due to this success, a Round 2 will open on the 2nd half of 2017.

Social, productive and Infrastructural Investment Project (Plan Belgrano):

€ 15 Billion investment in infrastructure in 10 years

Promotion of bioethanol, forestation programs, tourist infrastructure

Plan to develop the North of the Republic Argentina, improving roads and railroads

Constructing 150.000 social homes

Improving growth and social equality of the northern provinces



Colombia “Dynamic and Stable Economy”

The Government of Colombia and the rebel group FARC, declared the

end of a 52 year conflict, with the signing of the Peace Agreement. Since 1930, Colombia´s economy has grown with the exception of

1998. During the last 20 years, it has had an average growth of 4%. Colombia has significantly improved its safety indicators in the last 15

years. Colombia has stable democracy and well-defined Public Policies. Colombia is the country with the highest biodiversity per km2 It is

among the 12 most megadiverse countries of the planet. Colombia is the 31st largest economy in the World and the fourth

largest economy in Latin America and the Caribbean Global Competitiveness Index 2016: position 61 out of 138 Doing Business 2016: position 54 out of 189 Travel and Tourism Competitiveness Index 2015: position 68 out of 141

Population: 48,2 million 55% of the population is less than 30 years old

GDP Per Capita 12.798 €

5,3 million Inbound tourist

Exports: 32,2 billion €

Imports: 46,5 billion €

FDI 2015 : 10,9 billion €

GDP: 270 billion €



MINING – OIL AGRICULTURE INFRASTRUCTURE MANUFACTURING TOURISM

Colombia is implementing the roadmap to become full member of the OECD, that already approved 17 out of 23 Colombian committees

A dynamic and stable economic system A growing market, strategically located to facilitate transactions and business in the region 102 Free Trade Zones 10 Free Trade Agreements Member of the Pacific Alliance with access to a 225 million market consumers Qualified Colombian companies able to partner with international organizations and investors to reach regional

markets Diverse investment opportunities in a wide variety of sectors, such as:


Colombia “Dynamic and Stable Economy”


Costa Rica “Essential”

Data: Source: CINDE based on data from IMF, INEC, MEP

MAIN INDICATORS

Indicator Source IMF (World Economic Outlook)

2015

Population in millions of inhabitants

4,8

GDP (billions of euros) 52,56

GDP per capita (euros) 14 469

Real GDP growth (%) 4,2

Inflation rate (%) -0,81

Current account balance (% of GDP)

-4,5

3.82.4

1 1.1

-2.9-1.3

Costa Rica with World EU with Costa Rica

Trade in Goods 2015(Billions of Euros)

Imports Exports Balance+4300 Products Exported

+15 Different Countries

5 Continents

2.5B Potential People Market



Costa Rica Why Costa Rica? Visit, invest, buy…

Inve

st in

Services

Advanced Manufacturing

Life Sciences

Light Manufacturing

Agribusiness & Food Industry

Visit

Tropical Beaches

Grand Adventures

Wonders of Nature

Scintillating culture

Medical Tourism

Buy

fro

m

Food Industry

Agricultural Sector

Services Sector

Light Manufacturing

Industrial & Rocket Sector

http://www.cinde.org/en http://www.procomer.com/en/

Hear what

investors have

to say about Costa Rica

http://www.ict.go.cr/en/


http://www.cinde.org/en

http://www.procomer.com/en/

http://www.ict.go.cr/en/


Cuba “A Place to Invest”

14

Population: 11 239 004 (2015) [1]

Area: 109 884,01 Km2 (2015) [1]

Gross Domestic Product: 54 500 millions USD (2015) [1]

Trade in goods: 15 052 millions USD (2015) [1]

Human Development Index: 68 (2015) [2]

ADVANTAGES OF INVESTING

IN CUBA

Sources: [1] National Statistics and Information Office of the Republic of Cuba (ONEI by its Spanish initials). www.one.cu/aec2015/ [2] UNDP Report 2016.

Political, social and legal stability

Geographical location

Climate of safety for foreign personnel

Highly qualified workforce

International agreements

signed by Cuba

Secure and transparent

legal framework



Cuba

The country’s Portfolio of Business Opportunities for Foreign Investment includes 395 projects in 12 prioritized sectors: 1) Agricultural and food industry, 2) Sugar industry,

3) Light and heavy industry, 4) Tourism, 5) Energy, 6) Mining, 7) Transportation, 8) Biotechnological and Drug Industry, 9) Health, 10) Construction, 11) TICs , 12) Hydraulics

ENERGY SECTOR Generating more energy with

the use of renewable resources is one of the

country’s major priorities. To change its energy profile Cuba will require a greater contribution from biomass

ZEDM Mariel Special Economic Development Zone is a

visionary project. Pillar industries: Logistical

Services, Biotechnology and the drug State-of-the-art

Manufacturing

TOURISM SECTOR Building or rebuilding of

accommodations facilities; diversifying the management

and commercialization of tourist facilities by renowned

foreign chains

The country's Portfolio of Business Opportunities includes as possibilities 19 bioelectric plants in sugar mills, which would operate with sugar cane biomass and with residual woody biomass.

15


Cuba “A Place to Invest”


Dominican Republic “Has it all”

Principal destination of Foreign Direct Investment in the Caribbean with more than

€

in the period of until June

Open Economy with €25,342.5 millions in Exports and Imports

8 International Airports 6 Domestic Airports 16 International Sea Ports

More than 3,820 Companies exporting. Major quantity of maritime and air connections in the Caribbean region.



Dominican Republic Preferential Market Access

Law 8-90: Promotion of free trade zones of exports.

Law 28-01: Special Frontier Development

Law 56-07: National Priority to the Textil Chain.

Law 57-07: Incentives for the Development of Renewable Energy Sources.

Law 84-99: Reactivation and Promotion of Exports.

Due to its strategic geographical location in the heart of the

Caribbean, the Dominican Republic has become an

important commercial link between Europe, North America

and the rest of Latin America. Its port and airport structure

makes the country the Hub of the Caribbean.

The Dominican Republic is one of the most favorable

countries in terms of business climate, placed 7th out of 18

countries in the Latin American ranking of States that

integrate the Dominican Republic-Central American Free

Trade Agreement (DR-CAFTA), categorized by 5 components:

the macroeconomic environment, the corporate

environment, globalization and competitiveness, the level of

infrastructure and the political environment.



Guatemala Why invest in Guatemala?

For being the economic hub of Central America and meeting point for business

Thanks to competitive advantages such as geographic location, rich natural resources, quality of the workforce and high logistical performance, Guatemala has a solid infrastructure and increasing technological avidity, positioning itself as the metropolis of the region.

Investment areas: BPO: Guatemala has emerged as the best nearshore

destination of Central America and the Caribbean to the BPO industry, offering bilingual (English & Spanish) with high quality standards as well as support in other languages (French, German, Portuguese, Italian, among others).

Garments and Textiles: This category includes the clothing, textiles, accessories, thread, buttons, labels and logistics services industries.



Guatemala Why invest in Guatemala?

• Energy and Oil: The energy and oil industry is one of the greatest potential investment attractions for large foreign corporations. Guatemala is the largest exporter of electricity in the Central American region.

• Infrastructure: Guatemala has the ideal geographic location and natural conditions to

consolidate itself into a logistical and service hub at the regional level. Infrastructure consists of interconnected roads, efficient ports certified in quality and safety in both the Atlantic and Pacific Oceans.

• Light Manufacturing: The light manufacturing industry is extremely dynamic with a

strategic geographic location, competitive costs and manual labor abilities, making Guatemala an important destination and overall ideal partner for the sector.



Nicaragua “Let’s grow together!”

• Strategic location: Access to United States 2.5 hours by plain, 4 days by ship.

• An Ideal export platform: The government has been characterized for turning Nicaragua in an economy of trade. This, with the objective of becoming in a commercial platform with access to more than 1,500 million people.

• Safe environment: Nicaragua is renowned for its high safety levels by different organisms, such as the World Economic Forum, where Nicaragua appears as the country where crime and theft have the lowest influence in business in the Americas.



• Available labor force & Competitive salaries

Nicaragua provides the lowest minimum wage in the region for sectors such as light manufacturing, agro business and outsourcing services.

• Legal framework:

Full currency convertibility

Freedom to expatriate all capital and profits

Full international ownership

• Implementation of fiscal incentives:

• Implementation of generous fiscal incentives through different sectorial regimes that allow businesses to

benefit from these incentives and earn competitiveness in international markets.

Free trade zones, Temporary admission system, Renewable energy, Tourism

• Stable environment for private sector:

Alliance between Government - private sector - Union Leaders to define and implement long term strategies guaranteeing the good business environment.


Nicaragua “Let’s grow together!”


Panama “The Hub of the Americas”

Reasons to invest in or through Panama

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Panama’s GDP Growth 1990 -2016

Panama

Latam

Increase in government spending

World Financial Crisis

Administration of the Canal is transferred to Panama

Construction Boom

Expansion of the Panama Canal begins

-1.3%

5.8%

Main Indicators (2015)

GDP nominal: $52.132 Billion USD

GDP per capita: € 12,712.00

GDP growth: 5.8%

Inflation: 0.7%

Population: 3,929,131

GINI Index: .507

FDI: $5.835 Billion USD

Source: World Bank



Reasons to invest in or through Panama

122 Multinational Companies Headquarters

INFRASTRUCTURE RENEWABLE

ENERGY LOGISTICS


Panama “The Hub of the Americas”


Paraguay “Land of Opportunities”

1° Producer of Renewable Energy

2° Producer of Stevia

3° Producer and exporter of yerba mate

3° Owner of barge fleet

4° Soybean exporter

4° Largest exporter of soybeans

4° World exporter of cassava starch

6° Largest producer of soybeans

6° Largest exporter of maize

6° Largest exporter of beef

6° Largest exporter of wheat

“Paraguay in the heart of South America – low taxes,

a simple tax structure, stable currency and a

flexible workforce all speak in favor of investment”

Area 406.752

km2

Population: 7 million


The Paraguayan workforce is young and willing to work -More than 1/3 of the

population is between 15 and 24 years old -

Is strategically located in the heart of South America, close to key consumption and production markets

Has a stable political environment that is liberal and market oriented

Provides a stable economic environment with low debt rates and moderate inflation

Positive GDP development is expected for the future (expectation of growth 3,3 -2018 World Bank)

Offers favorable investment conditions, especially for products with high labor intensity and low logistics requirements

Consider overall Mercosur market development

REGULATORY and TAX legislation are

investor friendly

www.marcaparaguay.com

Paraguay “Land of Opportunities”


El Salvador “Great as its people!”


Located in the heart of the Americas, is an export-oriented free-market economy. Besides its recognition as a cost-effective location, its infrastructure is among the most competitive in Latin America and the CA region.

Regarding investment, El Salvador stands out for its qualified labor force and monetary stability.

El Salvador has developed a legal framework that facilitates and guarantees the protection of investments because it is interested in developing a long-term relationship with investors.

Source: Ministry of Foreign Affairs of El Salvador 2015

WHY INVEST IN

EL SALVADOR?

Productive Labor Force

Competitive Costs

Monetary Stability

Competitive Infrastructure

Attractive Tax Incentives

Strategic Location

Preferential Access to

International Markets

INVESTMENT

OPPORTUNITIES

Aeronautics

Agroindustry

Renewable Energy

Light manufacturing

Offshore Business

Services

Tourism

Specialized Textiles

and Apparel

For all these reasons, many prestigious multinational companies have chosen El Salvador as an investment

destination and offers preferential access to a potential market of 1.2 billion consumers in 43 countries

around the world.

Taiwan Corea Sur

EU -CA Association

Agreement

http://www.tigo.com.sv/

http://www.theofficegurus.com/

http://www.theofficegurus.com/


Uruguay “Natural”


Political, legal, and social stability

Macroeconomic soundness

Preferential market access

Investor benefits

Ease of doing business

Modern logistics

Leader in ICT

Competitive national talent

Efficient energy policies

Excellent quality of living

An infrastructure investment plan has been recently announced by President Tabaré Vázquez -for an amount of USD 12bn during his term of duty-, focusing on energy, roads, social and housing investments, communications and water, among other, with the participation of the public and private sector.

Oportunities in the Countries - Business Opportunities in Latin America and the Caribbean Opportunities in the Countries - Business Opportunities in Latin America and the Caribbean

Uruguay has several incentives which adjust to different types of activities, from industrial to commercial and service activities intended to be performed in the country.

Attractive legal framework Foreign and domestic investors are treated equally. No prior authorization or registration is required for and there are no restrictions on the transfer of capital or profits. Investment projects may be eligible for IRAE and other tax exemptions for up to 100% of the invested amount.

Free-trade zones Free-trade zone users are exempt from current or future taxes (except for Social Security contributions).

Free ports and airports Free circulation of goods without authorizations or formal processes required. Within port facilities, goods are exempt from import duties or taxes.

Temporary admission This regime allows companies to import raw materials and supplies without paying import taxes, provided these are used to produce goods to be exported no later than 18 months.

Uruguay “Natural”


Venezuela “Is your destination!”


MAIN INDICATORS*

Population (million inhabitants)

30.678

GDP per capita ($) 7.809

Value of exports (million $)

38.010

Value of imports (million $)

27.130

Value of petroleum exports (million $)

35.802

Proven crude oil reserves (million barrels)

300.878

Source: Annual Statistical Bulletin 2016

*Data covers 2015

The Bolivarian Republic of Venezuela lies along South America’s Caribbean Coast. It is bordered by Brazil, Colombia and Guyana. The country covers an area of around 916 thousand square kilometers, excluding the Esequibo area, and has a population of almost 30.7 million. Around four million people live in the capital, Caracas, and Spanish is the country’s official language.

Because of its natural structure, Venezuela can be divided into eight very distinct geographic natural regions: • Andean Natural Region • Caribbean Mountain-System Natural Region • Guayana Natural Region • Insular Natural Region • Lara-Falcón Hill-System Natural Region • Los Llanos Natural Region • Lake Maracaibo Lowlands Natural Region • Orinoco Delta Natural Region

Oportunities in the Countries - Business Opportunities in Latin America and the Caribbean Opportunities in the Countries - Business Opportunities in Latin America and the Caribbean Source: Annual Statistical Bulletin 2016

*Data covers 2015

Venezuela Drivers for production development in Venezuela Bolivarian Economic Agenda

INVESTMENT OPPORTUNITIES IN THE FOLLOWING SECTORS FOOD AND AGRICULTURE MINING INDUSTRY TOURISM EUROPEAN COMPANIES INVESTING IN VENEZUELA: • DOPPELMAYR SEILBAHNEN GMBH

• PSE GLOBAL A.S • TEMPEX AUSTRIA • SCHÄRDINGER BERGLANDMILCH • ROXCEL • SCHINDLER

• MIBA • EVG • ZVL INDUSTRIES • KORES • IZOL-PLASTIK • GDP REINIGUNS SERVICES

Latin America and the

Caribbean – an emerging region

An Emerging Region

An Emerging Region- Business Opportunities in Latin America and the Caribbean

Source: World Bank

- Composed by 32 countries

- Market size of 632.959.079 people (2015)

- 79.7 % of the population is urban (estimated 504,468,386 people)

- Median age of 29.6 years

- Rich in Metallic Minerals

- Nuclear Weapons Free Region

GDP Comparisons: Latin America GDP growth (annual %):

- 2017 = 1.5% - 2018 = 2.5% - 2019 = 2.6%

Europe and Central Asia GDP growth (annual %):

- 2017 = 2.4% - 2018 = 2.8% - 2019 = 2.9%

Reach one of us and you will find all of us!

An Emerging Region- Business Opportunities in Latin America and the Caribbean

Argentina http://inversiones.gob.ar/por-que-argentina

Colombia

http://www.procolombia.co/en

Costa Rica http://www.cinde.org/en

Cuba

http://www.procuba.cu

Dominican Republic http://cei-rd.gob.do/en/home/

Guatemala

http://www.investinguatemala.org/es

Nicaragua http://pronicaragua.gob.ni/en

Panama

http://proinvex.mici.gob.pa

Paraguay www.marcaparaguay.com

El Salvador

http://www.proesa.gob.sv

Uruguay http://www.uruguayxxi.gub.uy

Venezuela

http://conapri.org

http://inversiones.gob.ar/por-que-argentina





http://www.procolombia.co/en

http://www.cinde.org/en

http://www.procuba.cu/

http://cei-rd.gob.do/en/home/



http://www.investinguatemala.org/es

http://pronicaragua.gob.ni/en

http://proinvex.mici.gob.pa/

http://www.marcaparaguay.com/

http://www.proesa.gob.sv/

http://www.uruguayxxi.gub.uy/

http://conapri.org/

Documents

Business Opportunities in Latin America and the Caribbean...BPO: Guatemala has emerged as the best nearshore destination of Central America and the Caribbean to the BPO industry, offering