Publisher: IGM INVESTMENTS. Latin American Director: Margarita Fernández. Project Manager: Silvia Rios. Business Journalist: Gabrielle Mendieta y Ximena Gonzáles. Acknowledgements: Cámara de Industria de Guayaquil. ECUADOR IGM IMVESTMENTS INDEPENDENT SUPPLEMENT FOR LA TIMES www.igminvestments.com Photography: dannyarte (PxHere) INDUSTRY p.2 Growth, development and technology TRADE p.6 Business Trust EDUCATION p.7 Looking for internationalization FINANCE p.8 Driving the country’s growth SERVICES & LOGISTIC p.10 Pointing to competitiveness ENERGY, MINES & OIL p.11 The big bet TOURISM p.12 Natural and cultural wealth Sanur I Ubud I Nusa Dua I Jimbaran BOOK NOW Nanjing I Yangshuo P. 62 361 705 777 I F. 62 361 705 101 E. [email protected] I W. www.kayumanis.com WORLD POWER IN many main roads and new bridge international arbitration, Public building, completing more than 6 Private Alliances, among others. BIODIVERSITY thousand miles. When it comes to the Gross The connectivity by sea is Domestic Product (GDP) of The spanish speaking South completed 4 main ports in Ecuador has grown in the last American Republic of Ecuador Guayaquil, Manta, Esmeraldas 2 years. For 2019, according to has a unique strategic geographic and Bolivar. IMF forecasts a fall is expected location being crossed by the It is important to mention that in with -0.5% of GDP, while in 2020 equator: It is in the center of August 2019 it is expected that growth would be 0.2%, and in America. Ecuador limits with the new port of Posorja in Guayas 2021, 1.2%, so the confidence in Colombia, to the north; with Peru province, the first deep-water port economy is returning again to its to the south and east; and with in Ecuador, will start operating. businessmen and investors. the Pacific Ocean to the west. It will be one of the most important When it comes to Inflation ports on the West Coast of South Ecuador reported 0,27% rate, César Pérez Barriga Thanks to its proximity to the Deputy Director Panama Channel, it is also America and will place Ecuador which is the lowest of the South El Universo atractive to European and Middle at the same level with the port American countries according to Eastern countries. growth that is developing in the the Central Bank of Ecuador. journalism: “We have always The country has well developed region and the world, enhancing Leaving behind the positive tried to be a pluralist newspaper, international connections with its the country’s competitiveness macroeconomic figures, nature our goal is to be at the center of 2 main airports for passengers, with world trade. Its navigation favors Ecuador with climatic positions both politically and Quito and Guayaquil, and 2 more channel with depth of 16.5 meters diversity, ideal for tourism sector economically”, and continues with great potential for cargo in will benefit all users avoiding and also for high quality export “For a media the challenge is to Latacunga and Manta. greater risks and will allow to oriented agricultural products. report with the greatest possible The national road network is maximize the cargo capacity of Once a leader in the production intellectual honesty because it is an important example of the the Post Panamax Ships. of primary products, Ecuador is not about saying what I think, but significant progress made by Ecuador has many competitive getting stronger on manufacturing what it is, because the citizenry Ecuador with the improvement of advantages at a regional level. sector. The country it is also needs to know the truth. This For example, is the only one proud with its sophisticated is the biggest contribution we FACT FILE using USD as official currency telecommunication services and make to the country, part of our in South America. El Salvador is great human potential. work is information and that Official name: Republic of Ecuador another country that uses dollar For a country with 17 million people exercise their right with too but in Central America. Since inhabitants is also important confidence”. Capital: Quito dollarizing its economy on 2000, to have an advanced media. In In this sense, they are leading the Ecuadorian economy could be this marvelous country there important projects in the President: Lenín Moreno catalogued as stable and indeed, are 64 written press media, 377 network and in the content of the dollarized economy is an attraction radios and 63 television channels. newspaper. for investors. For instance, Foreign Amongst them stands out the Population: 17.096,789 Direct Investment (FDI) in trade newspaper El Universo founded grew USD 80 million in relation to in 1921 and published in the city Surface: 283,561 km² 2017 (+126%). of Guayaquil. This newspaper There are several benefits granted is currently the most important Official language: Spanish by the country to those who invest in the city and one of the most in Ecuador: There is the Organic noteworthy in the country. Currency: USD Dollar Law for Productive Development, The El Universo’s Deputy director, which includes tax incentives, Mr. Cesar Perez, remarks that the Annual Growth 2018: 1.1% benefits for the Zedes (Special newspaper has grown stronger Economic Development Zones), in the last 10 years and is now Unemployment rate: 3,7 % investment contracts with an important example good ADVERTISING SUPPLEMENT IGM INVESTMENTS INDEPENDENT SUPPLEMENT FOR LOS ANGELES TIMES “This supplement is printed and distributed in select areas by the LA TIMES. It does not involve the editorial staff of the LA TIMES” 2 INDUSTRY Growth, development and flowers requires a strong network of chemical companies to and technology support it. One of the companies that Industrial activity is fundamental has been an example with its for Ecuador’s development and leadership in the distribution one of the pillars on which the of industrial chemicals in the country’s economy is based. The region is Brenntag, which has two industrial sector accounts for fertilizer plants in Ecuador. 37% of GDP, and manufacturing “Nobody makes mixes like us” alone, not including other types says Ms. Maria Dolores Cuntó, of industry, is the most important General Manager of Brenntag industrial segment, representing Ecuador. The company is always María Dolores Cuntó Juan Carlos Peña one step ahead because its team around 13% of GDP. General Manager Country Manager Since the 1970s Ecuador has Brenntag Ecuador ADAMA has first class professionals and transitioned away from an export- more than 50 years in the market based economic model (based with consistent deliveries and new value-added industries, the growing aquaculture industry, on petroleum and agricultural first-line products with controlled primary sector still represents which saw a boost in recent exports) towards more value- quality. around 9% of GDP, including years due to outbreaks of shrimp added industries. As a result, To continue growing, in the agriculture, livestock, hunting, diseases in Asian countries. Ecuador’s present-day industrial medium term, Brenntag has forestry, fishing, and aquaculture. After shrimp, bananas are the sector has enormous development ambitious aquaculture projects Around these activities there is a country’s second-largest non- potential, with well positioned with new formulas. They are also network of strong agro-industrial oil export product, accounting industries backed by years of confident they will surprise the companies with a long history for around 15% of total exports. experience and solid investors. market with innovative products in Ecuador that still account Despite its long history, the sector The country also now boasts for bananas, rice, and flowers. for approximately 47% of total has not remained stagnant; increasingly qualified human Brenntag’s strategy has been exports. banana processing companies are capital, although the majority focused on growing its network Ecuador has been blessed with growing at a whopping 17%. Other of skilled workers are still based of distributors in the sector. favorable geographical and important exports are: canned in the two main cities Quito and The company is about to close climatic conditions that allow for fish which account for 5.7% of Guayaquil. While Guayaquil long negotiations for new products, the cultivation of a great variety all non-oil exports, flowers which served as the country’s economic raw materials, and distributors of crops, such as bananas, coffee, account for 4.8% and cocoa which capital due to its coastal location that are novel in the market, with and cocoa. Ecuador is in fact the accounts for 3.7%. which facilitated agricultural high performance and lower costs. largest exporter of bananas in the Ecuador’s fish processing exports, the rise of the petroleum Moreover, as Ms. Cuntó mentions, world; three out of ten bananas industry has been based in the sector and increased government “We are expanding our plant, exported in the world come from city of Manta since 1952, helping tripling the production in certain the Port of Manta to earn its title lines, and developing wastewater “In Tabacundo you can find the best quality of as “The international capital of solutions for the benefit of the the tuna”. roses in the world, there are 60 varieties” environment”. One thing that not many people Also is important to mention know is that Ecuador is the Adama Ecuador in this segment, investment over the past two Ecuador. world’s third largest exporter of part of the Israeli multinational decades have helped Quito, the However, surprisingly, Ecuador’s flowers, mainly roses, after the Adama. The company has more country’s political capital, to largest non-oil export is not Netherlands and Colombia. The than 60 years’ experience working come into its own as an economic bananas, but shrimp, which main markets for Ecuadorian hand by hand with Ecuadorian center. account for around 16% of non-oil flowers are the United States, farmers.