Category: Peru

Peru has made considerable progress addressing its severe infrastructure deficit by privatizing telecom, power, and transportation systems. But dreams of becoming a high-tech distribution hub for the Americas remain a fantasy.

The mining industry was Peru’s most dynamic sector through years of recession and weak growth. But metals prices are struggling to recover, so companies are cutting costs, raising production and increasing reserves.

Alejandro Toledo, one of the front-runners in Peru’s April presidential race, chose Pedro Pablo Kuczynski, the veteran international financier, as his chief economic advisor in a bid to gain investor confidence.

Whoever wins the presidential election, international investors want to see Peru’s new leader stabilize the country’s finances. Even the faintest whiff of populism would discourage foreign investment.

Peru has sold the exploration rights to its gargantuan natural gas deposit but must still find an operator willing to move the fuel.

Latin America has received substantial capital inflows over the last 20 years, but has failed to achieve sustained growth and development. Pedro-Pablo Kuczynski, the former Peruvian minister for energy and mines, now managing partner at Latin American Enterprise Fund Managers, a private equity firm based in Miami, argues that more investment, plus a deeper commitment on the part of governments are needed to make the region prosper.

Two US power companies find that gaining a controlling interest in Peruvian utility means setting a precedent and contending with local investors.

Peru still faces an uphill struggle, despite its top performing economy, reports David Swafford.