CENTRAL AMERICA: INVESTMENT OPPORTUNITIES The Vision and Role of  CABEI Marvin Taylor-Dormond, Ph.D Executive Vice-Preside...
<ul><li>Investment Opportunities: The Current Trends in  Central America. </li></ul><ul><li>CABEI´S Response: Strategy and...
I.  INVESTMENT OPPORTUNITIES: THE CURRENT TRENDS IN CENTRAL AMERICA The region that CABEI serves is going through an extra...
Three Distinctive Characteristics of Central America <ul><li>1. Privileged Geographic  Location </li></ul><ul><ul><li>Coas...
<ul><li>Ecological Diversity and Unique Environmental Resource Base </li></ul><ul><ul><li>Ecological Bridge between the No...
<ul><li>Agricultural and Forestal Potential all Year Round  </li></ul><ul><ul><li>Location and tropical climate turn the r...
Current Investment and Business Opportunities <ul><li>OPPORTUNITIES ARISING FROM A RENEWED DYNAMISM OF THE REGIONAL INTEGR...
<ul><li>OPPORTUNITIES ARISING FROM A RENEWED DYNAMISM OF THE REGIONAL INTEGRATION PROCESS AND THE ONGOING PLAN PUEBLA PANA...
<ul><li>OPPORTUNITIES TO REDUCE SOCIAL, GEOGRAPHIC AND SECTORIAL GAPS WITHIN THE REGION AND  PROMOTION OF A GREATER REGION...
Within the integration process, the  Plan Puebla Panama initiative  is of great importance for the fostering of investment...
So far we have identified  investment opportunities in Plan Puebla Panama projects for an amount of US$6.1 billion .  Of t...
<ul><li>OPPORTUNITIES ARISING FROM THE REGION´S TRADE LIBERALIZATION PROCESS AND FREE TRADE AGREEMENTS (DR-CAFTA, FTAA, EU...
<ul><li>OPPORTUNITIES ARISING FROM THE REGION´S TRADE LIBERALIZATION PROCESS AND FREE TRADE AGREEMENTS (DR-CAFTA, FTAA, EU...
In Sum, Source: Incae,  Competitividad en Centroamérica, 1996 Business and Investment opportunities arising from integrati...
II.  CABEI´S RESPONSE: STRATEGY AND INVESTMENT OPPORTUNITIES IDENTIFIED IN CENTRAL AMERICA CABEI, with almost 45 years of ...
CABEI: Strategic Themes and Long-Term  Objectives 2004-2009 Integration Globalization <ul><li>To support the improvement o...
With these objectives  in mind,  <ul><li>CABEI HAS IDENTIFIED CLOSE TO  US$2.0 BILLION IN INVESTMENT OPPORTUNTIES  WITHIN ...
GUATEMALA US$768.8 MILLION
EL SALVADOR US$179.4 MILLION
HONDURAS US$58.8 MILLION
NICARAGUA US$ 110.6 MILLION
COSTA RICA US$863.6 MILLION
III. DOING BUSINESS WITH CABEI IN  CENTRAL AMERICA CABEI has a wide range of financial and non financial products and serv...
<ul><li>Knowledge of the region, experience and market position. </li></ul><ul><ul><ul><li>44  years acting with a regiona...
CABEI: A Key and Solid Institution for the Development and integration of the Region… <ul><li>Regional Vision and Presence...
Financial Products and Services used by CABEI Credit Services Technical cooperation Direct and co-financed credit Two tier...
Investment Banking  and  Capital markets Regional Banking Services Financial Structuring Swaps Issuance of Securities  in ...
In Sum,  <ul><li>The region´s comparative advantages rest on its privileged geographic location, ecological diversity, uni...
CENTRAL AMERICA: INVESTMENT OPPORTUNITIES The Vision and Role of  CABEI Marvin Taylor-Dormond, Ph.D Executive Vice-Preside...
Upcoming SlideShare
Loading in …5
×

OEJ_PPT_89_2005.ppt

564 views
533 views

Published on

0 Comments
0 Likes
Statistics
Notes
  • Be the first to comment

  • Be the first to like this

No Downloads
Views
Total views
564
On SlideShare
0
From Embeds
0
Number of Embeds
0
Actions
Shares
0
Downloads
7
Comments
0
Likes
0
Embeds 0
No embeds

No notes for slide

OEJ_PPT_89_2005.ppt

  1. 1. CENTRAL AMERICA: INVESTMENT OPPORTUNITIES The Vision and Role of CABEI Marvin Taylor-Dormond, Ph.D Executive Vice-President, a.i., and Chief Economist of the Central American Bank for Economic Integration 2005 Focus Americas: At the Crossroads Investment Flows to Latin America – Banks as Intermediaries. Miami, Florida. April 20, 2005
  2. 2. <ul><li>Investment Opportunities: The Current Trends in Central America. </li></ul><ul><li>CABEI´S Response: Strategy and Investment Opportunities identified in Central America. </li></ul><ul><li>Doing Business with CABEI in Central America. </li></ul><ul><li>Concluding Remarks. </li></ul>CONTENT
  3. 3. I. INVESTMENT OPPORTUNITIES: THE CURRENT TRENDS IN CENTRAL AMERICA The region that CABEI serves is going through an extraordinary period in terms of business and investment opportunities, capable of tapping the region´s strengths in the world economy…
  4. 4. Three Distinctive Characteristics of Central America <ul><li>1. Privileged Geographic Location </li></ul><ul><ul><li>Coasts in both the Atlantic and Pacific Oceans. </li></ul></ul><ul><ul><li>Main productive zones are located in a distance smaller than 100 miles (160 km) from the coastlines. </li></ul></ul><ul><ul><li>Potencial to become the the economic and cultural bridge between the most important commercial blocks of the world. </li></ul></ul><ul><ul><li>Close proximity to the US market. </li></ul></ul>
  5. 5. <ul><li>Ecological Diversity and Unique Environmental Resource Base </li></ul><ul><ul><li>Ecological Bridge between the North and South of the American Continent. </li></ul></ul><ul><ul><li>Central America, in particular, is home to 7% of the biological diversity of the planet. This diversity is hosted in it´s almost 20 million hectares of primary and secondary forest. </li></ul></ul><ul><ul><li>Regions exceptional biological treasure offer a clear attractiveness for scientific and technological research, and a great opportunity for the development of new biological products and industries. </li></ul></ul><ul><ul><li>Natural resources and tropical climate, as well as places of historical, cultural and arqueological significance, make the region an impressive tourist destination. </li></ul></ul>Three Distinctive Characteristics of Central America
  6. 6. <ul><li>Agricultural and Forestal Potential all Year Round </li></ul><ul><ul><li>Location and tropical climate turn the region into a potential zone for high agricultural and forest production all year round. </li></ul></ul><ul><ul><li>Free from seasonal factors, the region has the capacity to supply a variety of tropical and agricultural products that can be exported to different markets all year round. </li></ul></ul><ul><ul><li>Attractive destination for investment, research and agribusiness development. </li></ul></ul>Three Distinctive Characteristics of Central America
  7. 7. Current Investment and Business Opportunities <ul><li>OPPORTUNITIES ARISING FROM A RENEWED DYNAMISM OF THE REGIONAL INTEGRATION PROCESS AND THE ONGOING PLAN PUEBLA PANAMA INITIATIVE (PPP). </li></ul><ul><li>OPPORTUNITIES ARISING FROM THE REGION´S TRADE LIBERALIZATION PROCESS AND FREE TRADE AGREEMENTS ( DR-CAFTA , FTAA, EU) </li></ul>Based on its comparative advantages, the region is pursuing integration and trade openness vigorously, within a framework of macro stabiliy and a healthy business environment…
  8. 8. <ul><li>OPPORTUNITIES ARISING FROM A RENEWED DYNAMISM OF THE REGIONAL INTEGRATION PROCESS AND THE ONGOING PLAN PUEBLA PANAMA INITIATIVE (PPP). </li></ul><ul><li>Regional Integration will promote… </li></ul><ul><li>THE CONSOLIDATION OF A REGIONAL ECONOMIC SPACE AND DEVELOPMENT OF KEY INFRASTRUCTURE AND TRADE SERVICES, IN ORDER TO LOWER TRADE COSTS AND PROMOTE REGIONAL ECONOMIC ARTICULATION. This will demand physical infrastructure, customs and border modernization, harmonization of regulations and implementation of best practices... </li></ul><ul><li>THE TRANSFORMATION AND DYNAMISM OF PRODUCTIVE SECTORS AND PROMOTION OF HUMAN DEVELOPMENT, IN ORDER TO INCREASE COMPETITIVENESS AND GROWTH. This will demand the promotion of clusters, such as Tourism, Agribusinesses, Fishery, Silviculture, Textiles and Clothing, Electronics, Software and Hardware… </li></ul>....
  9. 9. <ul><li>OPPORTUNITIES TO REDUCE SOCIAL, GEOGRAPHIC AND SECTORIAL GAPS WITHIN THE REGION AND PROMOTION OF A GREATER REGIONAL SOCIAL COHESION. This will demand access to basic social services by vulnerable population, greater cultural and ethnic respect, capacity building and generation of formal employment opportunities... </li></ul><ul><li>ESTABLISHMENT OF FUNDAMENTAL BASES FOR THE SUCCESS OF CENTRAL AMERICA´S TRADE LIBERALIZATION PROCESS. This will demand strengthening and deepening of an integrated market of goods and services, the articulation of production chains, and the modernization of financial markets… </li></ul><ul><li>… . OPPORTUNITIES ARISING FROM A RENEWED DYNAMISM OF THE REGIONAL INTEGRATION PROCESS AND THE ONGOING PLAN PUEBLA PANAMA INITIATIVE (PPP). </li></ul><ul><ul><li>Regional Integration will promote… </li></ul></ul>
  10. 10. Within the integration process, the Plan Puebla Panama initiative is of great importance for the fostering of investment and business opportunities <ul><li>Plan Puebla Panama is a… </li></ul><ul><li>Fundamental complement to the region´s trade openness process. </li></ul><ul><li>Platform to increase the region´s readiness level to participate competitively in the world economy because it aims to enlarge and modernize key infrastructure foundations, such as roads, ports, airports, energy, telecommunications and trade facilities, with a regional vision. </li></ul><ul><li>A window of opportunity to foster development and integration in the Mesoamerican region, using natural resources in a sustainable manner and respecting cultural and ethnic diversity. </li></ul>
  11. 11. So far we have identified investment opportunities in Plan Puebla Panama projects for an amount of US$6.1 billion . Of these, 95% are investments in infrastructure initiatives. Preliminary Data. 95% % INFRASTRUCTURE US$6.1 billion TOTAL PPP US$5.7 billion TOTAL INFRASTRUCTURE US$101.5 million TELECOMMUNICATIONS (AMI) US$4.8 billion TRANSPORT (roads, ports, airports, customs…) US$816.6 million ENERGY (SIEPAC, Rural electricity…) Investment opportunities Initiative
  12. 12. <ul><li>OPPORTUNITIES ARISING FROM THE REGION´S TRADE LIBERALIZATION PROCESS AND FREE TRADE AGREEMENTS (DR-CAFTA, FTAA, EU) </li></ul><ul><li>The implications of DR-CAFTA and similar treaties: </li></ul><ul><ul><li>Access to larger and richer markets. </li></ul></ul><ul><ul><li>Possibility to improve the allocation of resources. </li></ul></ul><ul><ul><li>Promotion of specialization based on comparative advantages. </li></ul></ul><ul><ul><li>New investment flows. </li></ul></ul><ul><ul><li>… </li></ul></ul>
  13. 13. <ul><li>OPPORTUNITIES ARISING FROM THE REGION´S TRADE LIBERALIZATION PROCESS AND FREE TRADE AGREEMENTS (DR-CAFTA, FTAA, EU) </li></ul><ul><li>Strategic alliances for production and trade. </li></ul><ul><li>Public private partnerships for investing in regional infrastructure. </li></ul><ul><li>Enlargement of internal supply chains to satisfy a larger market. </li></ul><ul><li>Deepening of financial markets and provision af new financial solutions. </li></ul><ul><li>Transfer of best practices, technology and knowledge: consulting services. </li></ul><ul><li>… </li></ul>The opportunities of DR-CAFTA and similar treaties:
  14. 14. In Sum, Source: Incae, Competitividad en Centroamérica, 1996 Business and Investment opportunities arising from integration process Business and Investment opportunities arising from the region’s trade liberalization process Agribusiness / Food Processing Education and Training Textiles and Clothing Tourism Forestry/ Wood Products Health Care CA: Bridge between Nations and Regions CA: Unique Environmental Resources and Ecological Diversity CA: Year-round Agricultural and Forestry Potential Offshore Manufacturing and Services Environ- mental Technology Energy Technology Chemicals Transporta- tions and Logistics
  15. 15. II. CABEI´S RESPONSE: STRATEGY AND INVESTMENT OPPORTUNITIES IDENTIFIED IN CENTRAL AMERICA CABEI, with almost 45 years of experience, plays an strategic role in cooperating with its member countries to foster investment and business opportunities that bring development and prosperity in the region…
  16. 16. CABEI: Strategic Themes and Long-Term Objectives 2004-2009 Integration Globalization <ul><li>To support the improvement of the region’s business climate in order to foster direct foreign investment as well as local investment. </li></ul><ul><li>To promote the regions competitiveness for its intelligent insertion in the global economy in harmony with the environment. </li></ul><ul><li>To play a key role in the processes of negotiation, ratification, implementation and sustainability of trade agreements. </li></ul><ul><li>To contribute to the mitigation of possible negative impacts of globalization in the region. </li></ul><ul><li>To promote and strengthen the regional financial market. </li></ul><ul><li>To promote the standardization of regulatory frameworks and the adoption of best practices at regional level and the rule of law. </li></ul><ul><li>To promote the physical, economic, commercial and knowledge integration process of the region in harmony with the environment. </li></ul><ul><li>To promote the optimization in the management and conservation of the region's natural resources </li></ul><ul><li>To generate opportunities that contribute to the creation of formal employment. </li></ul><ul><li>To facilitate access to credit, promoting CABEI´s leadership in the microfinance sector in the region. </li></ul><ul><li>To support countries in the development of sustainable solutions to support basic needs in the areas of education, health and housing. </li></ul><ul><li>To contribute to the strengthening of public administrations, specially the local governments with programs that encourage their economic independence and managerial capacity. </li></ul><ul><li>To promote the transfer of experiences and knowledge between CABEI´s member countries and the rest of the world. </li></ul>Poverty
  17. 17. With these objectives in mind, <ul><li>CABEI HAS IDENTIFIED CLOSE TO US$2.0 BILLION IN INVESTMENT OPPORTUNTIES WITHIN THE CENTRAL AMERICAN COUNTRIES. </li></ul><ul><li>WE FIRMLY BELIEVE THAT ECONOMIC LIBERALIZATION (I.E. CAFTA) AND THE INTEGRATION PROCESS (I.E. PPP) WILL OPEN GREATER INVESTMENT OPPORTUNITIES. </li></ul><ul><li>IN EFFECT, OUR COUNTRIES WILL NEED TO DEVELOP KEY INFRASTRUCTURE AND TRADE SERVICES, STIMULATE PRODUCTIVE SECTORS AND PROMOTE HUMAN DEVELOPMENT, IN ORDER TO INCREASE COMPETITIVENESS AND GROWTH. </li></ul>
  18. 18. GUATEMALA US$768.8 MILLION
  19. 19. EL SALVADOR US$179.4 MILLION
  20. 20. HONDURAS US$58.8 MILLION
  21. 21. NICARAGUA US$ 110.6 MILLION
  22. 22. COSTA RICA US$863.6 MILLION
  23. 23. III. DOING BUSINESS WITH CABEI IN CENTRAL AMERICA CABEI has a wide range of financial and non financial products and services that are designed to meet the needs of regional and international investors…
  24. 24. <ul><li>Knowledge of the region, experience and market position. </li></ul><ul><ul><ul><li>44 years acting with a regional mandate and vision. </li></ul></ul></ul><ul><ul><ul><li>43% of multilateral development bank lending to the region. </li></ul></ul></ul><ul><ul><ul><li>200 specialized staff members. </li></ul></ul></ul><ul><li>Leadership in the financing of regional infrastructure. We have financed: </li></ul><ul><ul><ul><li>25% of electric generation capacity of the Central American region. </li></ul></ul></ul><ul><ul><ul><li>21% of Central American paved roads. </li></ul></ul></ul><ul><ul><ul><li>14% of Central American primary lines of the telecommunications network. </li></ul></ul></ul><ul><li>Main source of medium and long-term financial funds for the financial sector. </li></ul><ul><li>Close ties to stakeholders and business associations. </li></ul><ul><li>High quality standards and excellence in client service. </li></ul><ul><li>Institucional and technological presence in every country of the region. </li></ul><ul><li>Largest network of banking and non-banking institutions for intermediation. </li></ul><ul><ul><ul><li>Network composed of 139 institutions </li></ul></ul></ul>¿What does CABEI offer to private investors?
  25. 25. CABEI: A Key and Solid Institution for the Development and integration of the Region… <ul><li>Regional Vision and Presence </li></ul><ul><li>Sustained Profitability </li></ul><ul><li>High Quality of Assets </li></ul><ul><li>High Liquidity </li></ul><ul><li>Preferential Creditor Status </li></ul><ul><li>Regional Market Position </li></ul><ul><li>Ample Network for the Channeling of Resources </li></ul><ul><li>Strong Capacity for Regional Project Analysis and Execution in both the Public and Private Sector </li></ul>Investment Grade Ratings BBB+ Fitch BBB S&P Baa1 Moody’s
  26. 26. Financial Products and Services used by CABEI Credit Services Technical cooperation Direct and co-financed credit Two tier loans Guarantees Leasing Trust funds Letters of credit Financial engineering Technical assistance Technical cooperation Pre-investment and feasibility studies Emission reduction certificates
  27. 27. Investment Banking and Capital markets Regional Banking Services Financial Structuring Swaps Issuance of Securities in Capital Markets Corporate Finance and Financial Assistance Underwriting Syndications Issuance of Partial Guarantees Structuring and Management of Investment Funds Securitization Systems oriented to provide access to public securities auctions for brokerage houses Central American Liquidation, Compensation and Custody Regional Payment System PRODUCTS AND SERVICES IN DEVELOPMENT
  28. 28. In Sum, <ul><li>The region´s comparative advantages rest on its privileged geographic location, ecological diversity, unique environmental resources, and agricultural potential all year round. </li></ul><ul><li>Currently, new investment opportunities in the region arise as a result of the new dynamism of the regional integration process, the Plan Puebla Panama, the region´s trade liberalization process and free trade agreements ( DR-CAFTA , FTAA, EU). </li></ul><ul><li>CABEI´s response and strategic vision for the next five years is based on three strategic themes: Poverty Reduction, Integration and Globalization. We have identified investment opportunities for the next two years in these three strategic themes for an amount of US$ 2.0 billion. </li></ul><ul><li>CABEI is prepared to support private and public initiatives in the region with financial and non-financial products and services tailored to the needs of local and international investors. </li></ul>
  29. 29. CENTRAL AMERICA: INVESTMENT OPPORTUNITIES The Vision and Role of CABEI Marvin Taylor-Dormond, Ph.D Executive Vice-President, a.i., and Chief Economist of the Central American Bank for Economic Integration 2005 Focus Americas: At the Crossroads Investment Flows to Latin America – Banks as Intermediaries. Miami, Florida. April 20, 2005

×