One of the richest men in the world and founder of amazon, Jeff Bezoslanded on Peruvian soil a week ago. Although this newspaper learned that his arrival was not for business but for vacation, his presence in the country has raised expectations of investment.
The American magnate liked the trip and the gastronomic tour of Lima, which included restaurants such as Central, La Perlita and Mayta, as well as a tasting in the Pisco Valley.
Of course, this is not the first time that a globally recognized businessman, and related to technology, arrives in Peru, since in 2016 the founder of Meta, Mark Zuckerberg, and last year the CEO of TikTok, Shou Zi Chew, did the same. But the truth is that questions are being raised about the opportunities that Peru has to receive companies like the e-commerce giant.
Many times it has been talked about how blessed Peru is for its landscapes, location and the raw materials that could attract the greatest in the world. Many years ago, the country was even considered “the star of the region” for its high growth rates. Today, despite the fact that progress slightly exceeds 3%, it has inflation that is within the target range (between 1% and 3%), a strong currency (thanks to the Central Reserve Bank), and fiscal stability (although the latter could change if it continues betting on populist projects).
Therefore, to learn about these opportunities and the potential that has not yet been taken advantage of, this newspaper spoke with three experts who have a very clear vision of the doors that the country can open to receive the largest investors in the world: the former president of Confiep, Alfonso Bustamante Canny; the current head of ComexPerú, Alonso Rey Bustamante, and the founder of Apoyo, Felipe Ortiz de Zevallos.
Where are the greatest opportunities in Peru?
For Felipe Ortiz de Zevallos, with international metal prices on the rise, mining is undoubtedly one of the main sectors. For this reason, he considered that it is important that projects such as Michiquillay and La Granja in Cajamarca, as well as Zafranal in Arequipa, go forward, which could contribute to the greater development of these regions. These three mines are copper mines whose global demand is growing thanks to the energy transition.
Alfonso Bustamante Canny stated that a sector that has potential is energy, even more so now with the growing demand for data centers. “Artificial intelligence (AI) is what is taking over all the agendas of rulers and businessmen, but the bottleneck is electrical energy. (…) Peru has 8,000 megawatts (MW) of efficient energy installed, but we also have additional backup sources for about 4,000 MW,” he added.
Meanwhile, Alonso Rey Bustamante agreed on the potential of mining and energy, but also highlighted the doors that agriculture opens. In that sense, he recalled that Peru is a large producer of avocados, grapes, blueberries and cocoa, and highlighted the irrigation projects that will allow land expansion, increased planting and also increased industrial exports.
What does Peru need to attract the greatest?
Private investment in Peru is a fundamental factor for economic growth, job creation and poverty reduction. Therefore, it is important for the country to attract larger companies. However, to achieve this, you need some changes.
One of the points on which the three experts agree is the need for the State to simplify the administrative processes for investment and business, since, if it does not provide the necessary conditions for stability, as well as legal security, the money will be taken to other markets.
“The State needs to be more agile, more dynamic, move at the same pace as private investment. We need to digitize processes. We also need transmission lines, roads, for the Internet to reach everyone. Instead of dedicating ourselves to spending on Petroperú, we need to disburse resources to close gaps. We cannot tell Amazon that to set up a plant here in Peru it will take four years and will have to go through 200 procedures,” said the representative of ComexPerú.
The founder of Apoyo, for his part, highlighted that a factor that does not help take advantage of Peru’s potential is political unpredictability. “There is a global company, Polymarkets, in which bets are placed on all elections in the world. For example, now, on the margin by which Kast could win the presidency of Chile, or on when Maduro will fall, and so on. In Peru they do not dare to place bets on anything, because with 37 candidates for the presidency and more than 2,000 candidates for senator, who can make a reasonable prediction?”, he added.
Something that needs to be worked on, according to the former president of Confiep, is improving the infrastructure, but also improving the judicial system, which is currently “unpredictable.” “We have a system that is a disaster, that does not administer justice,” he highlighted.
Is insecurity one of the great barriers?
Peru’s potential is also overshadowed by the increase in insecurity. Extortion, murder and illegal mining have become a barrier to growth.
For this reason, Alfonso Bustamante pointed out that the intention to expand Reinfo is a bad sign for formal investors who want to enter the country. “The Reinfo can be modified to begin to demand greater requirements and if they are not met, they will automatically be left out. The environment and the safety of workers must be safeguarded,” he indicated.
Alonso Rey, for his part, pointed out that there are four basic services that the State has to provide: security, health, education and justice. “None of these services are given to us. In addition, we must consider that we compete with countries like Argentina, Bolivia, Ecuador and Chile, which are also going to come out and ask for investments,” he added.
In that sense, Felipe Ortiz de Zevallos recalled that public security constitutes a responsibility of the State that must be addressed. But he also considered that something that also needs to be combated is corruption. “Bezos and his wife came with a team of bodyguards. Maybe they would have gone to Costa Rica or Uruguay alone. They wouldn’t have eaten so delicious. But we came out feeling insecure and lacking integrity. Although yes, the port is an advance,” he highlighted.
How much does the port of Chancay contribute to this Peruvian potential?
The port of Chancay once again put Peru in the eyes of the world. For Ortiz de Zevallos, the presence of this terminal contributes to the infrastructure that the country needs. Rey, meanwhile, considered that to take advantage of it, it is necessary to have quick access roads and for the State to promote investments in this space. Along the same lines, Bustamante indicated that it is necessary to eliminate bottlenecks to enter the port.
Felipe Ortiz de Zevallos:
“The potential to attract investment does not vary much depending on its size. The size of the local market, institutional stability and governance, good infrastructure, human talent, the ease of doing business and possible incentives are important. Does Peru have potential? There is macro stability, thanks to the BCR, but we face challenges such as informality, an inefficient state with cumbersome procedures.”
Alonso Rey Bustamante:
“The State does not accompany private investment. Now there are data centers and Peru with solar or wind energy could have these plants. To promote investment we have to debureaucratize the State, move forward with the deregulatory shock, eliminate the holidays that Pedro Castillo put in place that mean an enormous cost for the national industry and also for the State because it stops collecting.”
Alfonso Bustamante Canny:
“Peru is a country that has the opportunity to shine, but the only reason why it does not shine currently is because we have terrible government management. I do not know of any country that has as many possibilities as we have, which is why it is frustrating to see how year after year we only make the State fatter and we do not worry about being more efficient.”
Receive your Perú21 by email or WhatsApp. Subscribe to our enriched digital newspaper. Take advantage of the discounts here.
RECOMMENDED VIDEO
