ECUADOR -
FREE BUSINESS INFORMATION
These
pages intend to present a comprehensive look at Ecuador's
business environment through basic economic, commercial, political
and market analysis.
We
think that the next fields of information will be of much
use for you, feel free to browse through these pages and remember
to visit our business travel
resources center:
The
following links had been selected to provide the international
business traveler of as much information as possible when
planning a trip to Ecuador.
GENERAL INFORMATION LINKS
ADDITIONAL
RESOURCES FOR THE BUSINESS TRAVELER:
Please
help us improve this service; contact
us if you find any information that should be posted here
EXECUTIVE
SUMMARY:
Ecuador,
one of South America's smaller countries has 13 million inhabitants
and a per capita income just over USD. 1,500.
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It's
location, right on the Equator and in the heart of South
America.
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It's
people, kind and foreign friendly.
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It's
weather, a eternal spring.
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It's
unique conditions, internal security, economic stability,
open to foreign investment make it a potential for many
different businesses.
The
largely state-operated petroleum sector remains extremely
important, accounting for approximately one third of both
export earnings and public sector revenue. Petroleum legislation
reforms in 1993 have opened opportunities for foreign firms
to participate in major projects in the oil sector, including
expanded participation in oil development and the current
petroleum pipeline expansion project.
Ecuador,
the world's largest exporter of bananas and a major producer
of shrimp, is diversifying its agricultural exports. Changes
in the agricultural industry have created opportunities in
the areas of food processing and packing. Renewed interest
in upgrading and building new power-generation plants has
opened doors for foreign energy- generation equipment and
service providers. The manufacturing sector is growing by
nearly 5 percent annually, as it becomes more export-oriented
to take advantage of regional economic integration.
The
reformist economic policies of the administration of President
Jamil Mahuad (dollarization mainly) have resulted in a stabilization
of inflation, a balanced budget, smaller public sector expenditures,
improvements in tax and customs collection, the privatization
of some public sector holdings, and further trade liberalization.
These policies are expected to be continued during the term
of President Gustavo Noboa, which ends in 2002, providing
a basis for Ecuador to enjoy sustainable economic growth.
The
economic reforms and commercial bank debt settlement were
partly financed by the 1994 stand-by arrangement with IMF,
which opened up the doors to World Bank and Interamerican
Development Bank lending.
Comprised
of four distinct regions, tropical coastal lowlands, the mountainous
sierra, the rain forest of the Orient, as well as the Galapagos
Islands, Ecuador offers unique marketing opportunities.
Located
in the Sierra region, the national capital, Quito, with a
population of a million and a half, is the center for decision-making
on government procurement and policy, the oil industry, and
trade with Colombia.
Guayaquil,
Ecuador's largest city and major port, with a population of
some two and a half million, is the center for banking, agro
export, and manufacturing activity. In order to be successful
in the Ecuadorian market, foreign firms must evaluate business
opportunities in both of these two distinct cities.
Many foreign firms find that selling into the Ecuadorian market
is profitable, with fewer competitors, a general preference
for foreign brands, and many niche markets. Consumers are
knowledgeable about foreign products due to the foreign television
programs that are viewed by Ecuadorians daily on cable television.
As
a major importer, with a limited, but growing, manufacturing
base, Ecuador will continue to seek suppliers of consumer,
agricultural and industrial products and services.
The
leading sectors that have the greatest potential for non-agricultural
foreign goods and services are telecommunications, electric
power generation, food processing and packaging equipment,
and safety and security equipment. Wheat, cotton, rice, corn,
soybean meal, oilseeds, and processed foods are the leading
prospects for the agricultural sector. Foreign firms are encouraged
to evaluate the potential of their products and services in
Ecuador.
Remember
to visit our business traveler's
resources center and our constantly
updated news page. You may also refer to our tourist oriented
free information
of Ecuador to learn a bit more about our country.
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