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$400 million in new investments in Ecuador bring 2022 total to $1.360 billion

Published on April 20, 2022

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The National Planning Secretariat reported last Thursday that the Strategic Committee for the Promotion and Attraction of Investments (Cepai) approved $400 million more in new investments.

The Ministry of Production explained that 29 contracts for $407 million were approved, and that these investment commitments will generate about 5,935 jobs linked to the service, metalworking, agricultural and industrial sectors.

So far this year, $1.36 billion in project investments have already been approved in sectors such as mining, manufacturing, tourism, energy, agro-industrial, logistics, industrial, agricultural and forestry. This implies the generation of around 10,800 direct jobs.

The figure is a positive step forward if one takes into account that, according to the Ministry of Production, in all of 2021, 67 investment contracts were approved, for an amount of $2.158 billion, which only led to the creation of 6,089 new jobs.

At the end of March, the Ministry announced the signing of investment contracts with 15 companies that planned to invest in projects in the provinces of Cotopaxi, Azuay, Guayas, El Oro and Zamora Chinchipe.

Several of them are related to the manufacture of aluminum products, the generation of electricity, cosmetics and hygiene, logistics centers, a distillation plant, production of chipboard, chemical elements, textile products and technification and improvement of shrimp processing, among other activities.

The Ministry of Production said that the companies that signed these investment commitments included: Duracolor, Suramericana de Licores Licsur, Parques Logísticos Effitek, Laboratorios Ovalcohol, Pollo Favorito Pofasa, Corporación Lanec, Industria de Soldaduras y Metales Insomet, Panelat Latin American Panels Ecuador. , Exposynergy, Sipenergy, Acería del Ecuador Adelca, Papelec, Cedal Durán, Gisis and Shrimpcameron.

It also mentioned three companies that signed addenda to their initial contracts, including Soderal.

Several of the 2021 investment projects were related to the agro-industrial and manufacturing sectors, the acquisition of machinery to optimize production, the improvement of processes in shrimp farms, the creation of production plants that will process paper and plastic, the expansion of a multipurpose dock that facilitates the foreign trade of companies and in the development of projects for the mining sector.

Cepai is an intersectoral collegiate body of the Executive Function, in charge of inter-institutional coordination “to promote, attract, facilitate, specify and maintain foreign investment in Ecuador.” It is also in charge of approving investment projects and accompanying the implementation of investments.

The Committee is made up of the heads (or their delegates) of the Ministry of Production, Foreign Trade, Investments and Fisheries; the Ministry of Foreign Affairs and Human Mobility; the Ministry of Economy and Finance and the National Planning Secretariat.

The investment contracts are covered by the Organic Law for Productive Development, Investment Attraction, Employment Generation and Fiscal Stability, which establishes the exemption from the foreign exchange outflow tax (ISD), and by the Organic Code of Production, Commerce and Investments (Copci), which provides tax incentives for investors such as exemption from income tax, among others.

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