Chile and Peru

Connecting worlds.

Over the past decades, Latin America has prospered both politically and economically. The combination of progressive government investments, a significant decrease in poverty, the establishment of several trade agreements, and positive long-term economic growth prospects in the regions make Latin America highly attractive for business. 

The COVID-19 pandemic has boosted the already growing digitization development in Latin America, promising a greater access to the consumer market and increasing use of e-commerce and digital communication channels

These developments all create extensive business opportunities for Dutch companies in Chile and Peru!

Chile

Chile has been one of Latin America’s fastest-growing economies, showing steady growth in recent decades. Central to Chile’s positive growth performance has been the implementation of open trade, strong property rights, and accommodative investment policies. Furthermore, the Chilean economy has experienced GDP growth over the past 4 years. Even though, COVID-19 pandemic did cause a contraction in the real GDP, the Chilean economy shows promising growth projections of about 5.5% in 2021. Factors such as these contribute to Chile positioning itself as a trade hub towards the rest of Latin-America and Asia. 

Chile offers opportunities in various sectors. First, The Chilean agricultural and food sector is one of Chile’s promising sectors. Currently, Chile is among the top ten agriculture exporters in the world. The sector is willing to change towards a more sustainable and efficient market. Focusing also on water management, since drought is a problem in many parts of the world and so also in Chile. There lie a lot of opportunities for Dutch companies in improving the efficiency of the market, but also in the high quality products produced in Chile. 

In addition, transport and logistics are already well developed in Chile, However, the Chilean government is still investing in huge infrastructure projects. A quality logistics infrastructure in Chile is essential to support the large volumes of export and thus have a large positive influence on the economic growth of the country. Their need for a high quality infrastructure offers opportunities for Dutch companies in transport and logistics.

Because of their long coastline Chile has a rich maritime sector with lots of ports which are very developed compared to neighboring countries. Their aquaculture industry has a very large output and is developed, it focuses on sustaining their fish species which is enforced by government policy. Dutch companies can be a part of further developing these sectors by supplying knowledge and state of the art equipment.

Furthermore, Chile has the highest score in the Latin American region on the Global Innovation Index and has ambitious goals in the field of circular economy and waste management. Chile is in need of a well arranged circular system having ambitious goals in the field of circular economy and waste management. There are opportunities here for Dutch companies who have knowledge and technologies necessary for these Chilean goals.  

In addition to the above mentioned sectors, Chile has been a global leader in sustainable development and is ambitiously contributing to the climate change agenda. Chilean companies and the government are very willing to invest in recycling, reducing emissions and green energy. Herein lies the opportunity for Dutch companies to extend their operations to Chile.

Peru

The economy of Peru has rebounded strongly after the recession caused by the COVID-19 pandemic. In 2021, the real GDP grew 13.3%, reaching its pre-pandemic level. For the future, the Peruvian economy shows steady growth prospects of around 4%. Additionally to the beneficial economic prospects, the favorable legal framework enables foreign investors to freely enter the market in the majority of economic activities. Therefore, Peru offers opportunities in many sectors.

Peru’s agricultural sector is one of the country’s most fundamental sectors. However the sector’s full potential has not yet been achieved, this is mainly due to Peru’s complex landscape and lack of modern agritechnologies. There lie a lot of opportunities for Dutch companies in improving the efficiency of the market, but also in the high quality agriproducts which can be produced in smaller quantities in Peru.

In addition, sustainability is becoming increasingly important in Peru. The Peruvian government has committed to making the country more sustainable by signing the Paris Agreement. Large opportunities lie in the sectors of water purification, waste management and renewable energy sources

First of all, Peru’s electricity demand has grown steadily with its economy, increasing by 81% over the last ten years. Electricity generation is largely based on natural gas and hydropower. Renewable energy resources, solar and wind energy still only represent around 5% of the entire electricity generation. Peru’s investment promotion agency expects growth rates of 3-5% in renewable energy sources by 2025, presenting interesting opportunities for Dutch companies. 

Next to that, waste management is becoming increasingly important for Peru, following a global trend. The Peruvian government has created a larger regulatory framework for waste recycling opportunities. However, the framework does not provide the Peruvian people with the means to live up to the sustainability goals of the future. The solid waste management in cities is a major concern. Herein lies the opportunity for Dutch companies to extend their operations to Peru.

In addition to the above mentioned sectors, the Peruvian maritime sector also has vast potential to transform to a more regulated and environmentally friendly market. Therefore it is in need of new technology and expertise which could be exported by specialized businesses in the Netherlands.