Message from Ambassadors

Investment Opportunities
in Ecuador
César Augusto MONTAÑO Huerta
Ambassador of the Republic of Ecuador to Japan
Located in South America, bordered by Colombia to thenorth, Peru to the east and south, the Pacific Ocean to thewest, and by the Galapagos Islands with Costa Rica,
Ecuador is a small yet diverse country located in SouthAmerica. Its population is around 17 million people and it
is known for its diverse geography, which includes: theAndes mountains, the Amazon rainforest, the Coast

4 Worlds in One Country

region, and the Galapagos Islands. Despite its size,
Ecuador offers a wide range of investment opportunities
for foreign investors, including Japanese investors. In
recent years, the Ecuadorian government has madesignificant efforts to attract foreign investment, creating afavorable environment for investors to start or expand
their businesses.
Several areas and industries inEcuador have potential for growthand investment.

EnergyThe energy sector is one of the mostpromising with significant potential
for renewable energy development,with abundant resources in solar,
wind, and hydroelectric power. The
country has already made significant
investments in hydroelectric power,
which accounts for approximately
70% of its electricity generation.
The update to the 2018-2027
Electricity Master Plan (EMP)
provides for the startup of operationsof a 500 MW Block of NonConventional Renewable Energies(NCRE) by 2024, with an averageannual energy output of 2,119.3
GWh/year to meet the forecasted
demand, taking into account thecurrent electricity demand growthtrend, energy efficiency projects, theincorporation of single loads fromelectricity distribution companies,
and the interconnectedness of theNational Interconnected Systemwith the Petroleum InterconnectedElectrical System. Japan is a global
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leader in renewable energy technology, making this apromising area for Japanese investments in Ecuador.

Oil and Gas
The Government of Ecuador is actively seeking
investment opportunities in the oil and gas sector tostrengthen the value chain and promote social programs
and infrastructure development that benefit all sectors of
the country. By investing in this sector, foreign investors
have the opportunity to make a significant contribution to
the country’s social and economic development, while
also benefiting from the profitable opportunities available
in Ecuador’s oil and gas industry. Among others, six oilblocks have been identified for the future “Intracampos II
Bidding Round”. On the other hand, the design,construction and operation of a modern refinery in the
coastal region of Ecuador is a country priority. With the
new high-conversion refinery, it is expected to cover uppart of the demand with fuels with the Euro 5 Standards.

Infrastructure
The country’s infrastructure is still underdeveloped inmany areas, with many opportunities for investments inroads, railways, bridges, airports, and ports. Ecuador has
a 10,290 km long state road network, out of which 374
km are prioritized. Japan has long been known for its
expertise in infrastructure development, making this apromising area for Japanese investments. There areseveral projects underway, including the service andrehabilitation of the national railway system, theconstruction of a highway in Manabi province, and theconstruction of a deep-water port in Guayas province.

MiningEcuador is a country rich in mineral resources, including
gold, silver, copper, and zinc. The government is currently
promoting investments in the mining sector, and there areseveral large-scale mining projects underway. Ecuador’s
mining sector presents significant opportunities forinvestors, with the potential to generate economic growthand social development in the country. The government
has implemented policies aimed at increasing investmentsin the sector while, at the same time, ensuring compliancewith strict social and environmental standards, minimizing
their impact on the local communities as well as in theenvironment and the protection of the natural resources.

HealthEcuador updated the territorial planning of the “Health
Establishments of the First, Second and Third Level ofCare”, corresponding to the Comprehensive Public
Health Network that forms part of a sectoral planning,that seeks to ensure that the location of services guarantees
access, coverage and equity among the population. In thisregard, there are many projects focused to strengthen theinfrastructure of first level health care facilities, inaccordance with territorial planning at the national level.

Prioritized sectors and basic industries for investment

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César Augusto MONTAÑO Huerta
Ambassador of the Republic of Ecuador to Japan
Ambassador César Montaño was appointed Ambassador to Japan inJune 7th, 2022. He is a former Vice Minister of Foreign Affairs and served
as Under Secretary for Economic Affairs and International Cooperation atthe Ministry of Foreign Affairs of Ecuador. Ambassador Montaño is amember of the Foreign Service of Ecuador since 1987. He has fulfilled
diplomatic functions at the Embassy of Ecuador in Bonn, Germany, thePermanent Representation of Ecuador to the World Trade Organization inGeneva, Switzerland, and as Director General at the Andean Community
General Secretariat in Lima, Peru.

SportsHigh performance sports are the pinnacle of the pyramidal
structure of highly competitive sports. In order to reap
sporting glories that inspire future athletes and generate
positive role models, it is essential to have a structured
and solid plan that ensures that necessary resources areavailable over time. In this scenario, the recondition of theexisting sports facilities, such as a high training center in
Carpuela (reserved for elite athletes), and national training
centers are part of the Ecuadorian investment portfolio.
Ecuador had a historical participation in the Tokyo
Olympics, obtaining more medals than ever.

AgricultureEcuador’s fertile land and diverse climate make it an ideal
location for agriculture and food products. The
government has been promoting Ecuador’s agriculturalproducts, making this a promising area for Japanese
investors. Opportunities for investments in agriculture
include the development of new farms, processing
facilities, and the export of value-added products
development, with a particular focus on organic and fairtrade products.
The administration under President Guillermo Lasso hastaken concrete steps towards enhancing the businessclimate in Ecuador. One such step is the provision of
investment contracts, which entitle investors to severalbenefits, including a maximum 5% reduction in income
tax rates, exemptions on import tariffs for capital goods
and raw materials necessary for the project, exemption
from currency outflow tax for the same imported items,
access to national and international arbitration, tax
342023.5stability for investments over USD 100 million during thecontract term, and stability on essential regulations forstrategic sectors or public services provision. In addition,
the government has set a target to finalize trade deals withmajor global economies. Notably, Ecuador has recently
completed successful trade negotiations with both Chinaand Korea, and the government is now keen on pursuingsimilar agreements with Japan through an EPA
negotiation. The involvement of the private sector in thisprocess is of paramount importance.
In conclusion, Ecuador offers a range of investment
opportunities for foreign investors, mainly Japaneseinvestors. The government has created a favorable
environment for foreign investors, implementing
incentives and streamlined procedures for starting newbusinesses. With its strategic location, favorableinvestment climate, and growing economy, with one of
the lowest inflation rates in the world, Ecuador presents
itself as an attractive destination for foreign investors
looking to expand their businesses into South America
and the region.
お問い合わせJOI 事業企画部
E-mail: bd@joi.or.jp

駐日エクアドル共和国大使館
E-mail: eecujapon@cancilleria.gob.ec
https://www.cancilleria.gob.ec/japon/