Purchase OBG Publications

Displaying 7 - 12 of 3255 results

Chapter | Transport from The Report: Peru 2019

The commitment of Peru to meeting its transport and logistics needs is apparent in the FY 2019 budget. The Ministry of Economy and Finance set aside PEN326.6m ($98.9m) for road, air and port infrastructure development, with plans to secure additional funds from the private sector. The prospects for investment in the sector are positive, as the need to close the country’s infrastructure gap is coupled with Peru’s improving image as a business destination. The latter is supported by a legal framework that facilitates public-private partnerships. Planning processes must take into account that the acquisition of land, and contracts now include an anti-corruption clause. The government is working to improve the business environment by hiring international consultants to contribute to the employment of best practices when carrying out joint works by the government and private sector. This chapter contains an interview with Juan José Salmón Balestra, CEO, Lima Airport Partners.

Chapter | Industry & Retail from The Report: Peru 2019

The industrial sector returned to growth in 2018, with production, exports and investment growing substantially after four years of contraction. Improvements have come largely through the expansion of manufacturing, including the production of a range of higher-value-added products, along with processed fish and agro-industrial goods. In order to sustain and expand this development, the government is pursuing a number of programmes emphasising the diversification of exports, coupled with domestic policies to improve competitiveness. The retail sector has lead growth in the Latin American market in recent years, driven by the expansion of shopping malls, promotions and discount prices at supermarkets and pharmacies, and an expanding consumer base. The sector is expanding and strengthening its various formats whether that is through increasing store-based retailing or e-commerce, while stakeholders are work to take advantage of the growing middle-class consumer base. This chapter contains an interview with Toshiro Hayashi, CEO, Toyota del Perú.

Chapter | Construction & Real Estate from The Report: Peru 2019

Increased investment in infrastructure projects – such as those in mining, the $1.5bn extension of the Jorge Chavez International Airport, the increased supply of social housing and infrastructure development around the 2019 Pan American Games – are set to propel the construction sector. Investors are optimistic given the large portfolio of public projects, but authorities should be sensitive to concerns regarding project slowdown and transparency. Performance in several segments of the real estate sector improved in 2018. Government incentives and facilitation of mortgages are expected to fuel residential real estate demand. Warehousing expansion is being driven by e-commerce sales growth, and a widening middle class is attracting investment and international brands to the retail segment. Challenges like a systemic housing deficit and low mortgage penetration rates remain, but the uptick in the sector is expected to continue. This chapter contains an interview with Guido Valdivia, Executive Director, Peruvian Chamber of Construction.

Chapter | Energy from The Report: Peru 2019

The development of Peru’s energy market has been rife with challenges and opportunities in recent years. While Peru could once stake a claim to being South America’s largest commercial producer of oil, fuel output has been on a steady decline for more than two decades, the country accounted for 1.8% of regional oil output in 2017. However, the same shifts that have undermined Peruvian petroleum – namely, technological breakthroughs in the extraction and distribution of natural gas, and innovations in renewable energy – have created new markets in a country abounding with natural gas and vast resources in solar, wind and biomass. Policymakers and investors intent on securing Peru’s energy future are looking to split the difference between these trends. Proposed amendments to the hydrocarbons law could double petroleum production and help to make up the shortfall in domestic supply. This chapter contains an interview with Jorge Olazábal, General Manager, Cálidda.

Chapter | Mining from The Report: Peru 2019

With a vast wealth and diversity of metals and minerals, Peru is rich in natural resources. Mining plays a significant role in Peru’s non-oil economy, especially in terms of exports and job creation. However, investment in the sector fell in recent years, largely owing to external headwinds such as the drop in commodity prices that begun in 2014. Internal challenges also slowed sector activity, with social conflicts and community protests delaying several projects. The sector’s development will depend on the speed and manner in which these challenges are dealt with, as well as on the reduction of bureaucratic bottlenecks and increases in investment incentives. Given the number of projects set to come on-line in the near future, the production of minerals is expected to return to more stable levels. This chapter contains interviews with Mark Cutifani, Chief Executive, Anglo American; and Nick Holland, CEO and Executive Director, Gold Fields.

Chapter | Insurance from The Report: Peru 2019

The Peruvian insurance market as a whole returned to profitability in 2018, following losses and anaemic expansion over the course of 2016 and 2017. Underwriters enjoyed the most robust returns in the life segment, particularly in personal income annuities, which have come into high demand among new retirees as reinvestment vehicles for pension withdrawals. Furthermore, overall claims fell significantly against indemnities paid out in 2017, when the El Niño climactic phenomenon precipitated widespread damage to residential and agricultural properties in the north of the country. Even as the insurance penetration rate remains low vis-à-vis uptake among Peru’s South American neighbours, the sector is expected to drive growth in the wider economy, as coverage for earthquakes, fires and other accident liabilities grows alongside investments in mining and construction. This chapter contains an interview with Jorge Ramos, CEO, Sura (Peru).