16 Oct - Bolivia, one of the poorest countries in Latin America, has seen changes in recent years impacting investment opportunities.
In the aftermath of serious political instability and social protest between 2000 and 2006, Evo Morales – the country’s first indigenous president – was elected with a clear majority of the vote and a party majority in Congress. Although serious doubts remain about the current government’s commitment to protecting foreign investment, they are most founded regarding heavy infrastructure and equipment investments.
The services industry in Bolivia remains undeveloped. Inhabiting the poorest country in South America, Bolivians have weak purchasing power. The retail sector suffers from weak demand and competition with a large black market of contraband goods. U.S. companies such as McDonald’s and Domino’s have pulled out of Bolivia in recent years.
The main markets for American food and beverage products are Santa Cruz, La Paz and Cochabamba – the main urban centers and most dynamic economic zones – representing about 350,000 potential consumers.
In general, although the segment of consumers able to buy imported products is relatively small, American products remain their favorite. They are popular due to cable TV and Internet penetration and carry a good reputation for quality and safety. In addition, Bolivian consumers have also shown a preference for imported goods during favorable promotions.