Between December 2018 and April 2019, Bolivia’s net international reserves (NIR) had a reduction of SU$1.02 billion, according to data from the BCB. If the trend continues without changes the NIR will fall to SU$5 billion.
Foreign Direct Investment (FDI) during the first nine months of 2018 reached $US515 million, according to data from the Bolivian Central Bank (BCB). The rhythm of FDI has been the same since 2015 when it reached SU$1.06 billion. The president of the entrepreneurs federation of Cochabamba, Javier Bellot, noted that to generate more investment there have to be some reforms. He added that, in the case of Cochabamba, there are connectivity problems both, by air and land. Another obstacle is the process to open companies in Bolivia, which has to be simplified. “There is also labour policy and taxes pressure. If we want to attract investment, we must analyze the tax issue because at this moment there are countries that are more attractive than Bolivia.”
Bolivia’s General Treasure will transfer SU$26.4 million to execute the Coffee Investment Program, said the agronomist and coffee grower José Luis Escobar. The attributes of Bolivian coffee, according to the opinion of tasters, “are citrus chocolate flavours, red fruits”. The green coffee belt, located between the Tropic of Cancer and the Tropic of Capricorn, with regions that have favorable conditions for coffee production, includes Bolivia whose altitude is a plus point. Escobar said that the investment program has “an implementation time of 5 years and began in 2018. The project finances 70% of new seedlings and the remaining 30% will be financed by the producer.”
The Bolivian government launched the internet portal http://www.investbolivia.gob.bo to attract foreign investors interested in Bolivian strategic projects. The portal shows the five major investment sectors: Hydrocarbons, mining, energy, tourism, industry, technology and infrastructure.
The Bolivian government launched the internet portal http://www.investbolivia.gob.bo to attract foreign investors interested in Bolivian strategic projects. The portal shows the five major investment sectors: Hydrocarbons, mining, energy, tourism, industry, technology and infrastructure.
Lithium, infrastructure projects on the Paraguay-Parana waterway, the bi-oceanic corridor, and the construction of the Viru-Viru airport hub, are the four strategic projects that president Evo Morales presented to investors gathered at the 9th Annual Investment Meeting in Dubai. Morales added that all these projects require significant investments and the building of alliances with the private sector.
Bolivia’s international reserves decreased by US$821 million in the first quarter of 2019. The reserves fell from SU$8.9 billion in December 2018 to SU$8.1 billion by 22 March. The Government insisted that the money is being used in productive projects but some analysts warned that this accelerating level of decrease could impact the country’s payment capacity.
Remittances from Argentina fell by 29% due to the crisis in this country. Inflation and measures from the Argentinian government to prevent the outflow of foreign currency are among the reasons for the decline. According to the Bolivian Central Bank (BCB) remittances from the rest of the world also fell 1.6%.
The use of digital technology in the banking sector exceeded 50% of the total financial transactions in 2018, said the executive secretary of the Association of Private Banks of Bolivia (Asoban), Nelson Villalobos.
The government announced that the phase of confrontation with the private sector is over. With a strong handshake, the vice-president, Álvaro García Linera, welcomed the new president of the Confederation of Private Entrepreneurs of Bolivia (CEPB) Luis Barbery. Regarding the economic model said that it requires some adjustments and proposed to work tirelessly to improve “business climate”. He proposed a critical path based on four axes: a) the best legal and political conditions to boost private investment; b) incentive to national production with quality at larger scales; c) provision of goods and services for our population; and d) implementation of efficient mechanisms to stimulate exports. García Linera proposed dialogue and agreed that the high bureaucracy is one of the worst enemies of business ventures, but made it clear that the tax issue is important to maintain balance in the public sector.
