Bolivian Business Development Profile
Transcription
Bolivian Business Development Profile
Bolivian Business Development Profile DANIDA Business Partnerships Danish Embassy in Bolivia 2799, Arce Avenue La Paz, Bolivia Tel.: +591 (2) 243 2070 Fax: +591 (2) 243 3150 lpbamb@um.dk www.bolivia.um.dk June 2013 Table of Contents Page Executive Summary Map of the Plurinational state of Bolivia 1 Country profile 2 Economic overview 3 Trade opportunities 3.1 Trade agreements of Bolivia 3.2 Bolivian exports 3.3 Bolivian imports 3.4 Trade Bolivia – Denmark 3.5 Infrastructure for international trade 4 Investment overview 4.1 Doing Business Report 4.2 World Economic Forum: Competitiveness Index 4.3 Incentives for Foreign Investment 5 Potential sectors 5.1 Agricultural 5.1.1 Highlands 5.1.2 Valleys and Tropic 5.1.3 Lowlands 5.1.4 Forest 5.2 Industrial manufacturing 5.3 Tourism 5.4 Services 6 Social Development 6.1 Education 6.2 Health 6.3 Gender 6.4 Indigenous Peoples’ Rights 6.5 Corporate Social Responsibility 7 Useful Information 7.1 Visa applying 7.2 Trade Fairs 8 Contact 3 4 5 6 8 8 9 10 10 11 12 12 12 13 15 15 15 17 19 21 24 31 32 33 33 33 34 34 35 36 36 36 37 Bolivian Business Development Profile | 2 Executive Summary Bolivia, located in the middle of South America, is a multicultural and bio-diverse land-locked country. One of its main characteristics is the diversity of its territory, from the Altiplano (highland plains) to the lowland plains of the Amazon Basin. Bolivia promotes an image of an ancient culture with ecological production. During the last six years Bolivian economy has been stable, favoured by the higher prices of commodities and with limited inflation. This document contains economic (page 2) and social (Page 33) indicators of the country. The Danida Business Partnerships Programme seeks to contribute to the economic and social growth of Bolivia through commercially oriented partnerships which create jobs, improve competitiveness and promote corporate social responsibility. This Business Development Profile is intended to provide an overview of the economic and business outlook in Bolivia. It also identifies sectors which can generate the greatest development impact and bring about sustainable commercial partnerships. The DBP programme in Bolivia prioritizes projects which develop products with added value, in the area of agri-business and industry. The main sectors identified are the following: Andean grains (page 16) Timber products (page 29) Oilseeds cluster: Soybeans and sunflower seeds (page 21) The pharmaceutical industry, including phytotherapeutic products (page 27) Meat and meat products (page 30) Dairy products and technology (page 30) Leather and leather manufactures (page 26) Textile and clothing (page 26) Additional subsectors with potential for productive partnerships are: coffee (page 17), cacao (page 24), metal industry (page 30), jewellery (page 30) and lithium derivatives (page 31). Other subsectors could also be considered as potential candidates: livestock farming, pigs and cattle, tourism, and the sub-areas of achiote, potatoes, sesame, fruits (tropical, exotic, dried and fruit pulps), Brazilian nuts, chia and palmetto. Finally, all productive sectors, as well as the residential sector, need energy. Bolivia has expressed the intention to diversify its energy matrix away from fossil fuels. Since Denmark is one of the world leaders in energy efficiency and renewable energy technology, there is potential for creating successful partnerships in this transversal sector. More information about the Danida Business Partnerships programme could be found on the following link: http://um.dk/en/danida-en/activities/business/partnerships. Information about the activities of the Danish Embassy in Bolivia can be obtained at the following link: http://bolivia.um.dk/da.aspx Bolivian Business Development Profile | 3 Map of The Plurinational State of Bolivia Source: United Nations (UN) Bolivian Business Development Profile | 4 1 Country Profile Facts and Figures Official Name Plurinational State of Bolivia Government form Social Unitarian State Area 1,098,580 Km2 (28th largest of the world) Borders Political division Capital Main cities (Est. 2010) Argentina (832 Km), Brazil (3,400 Km), Peru (900 Km), Paraguay (750 Km) and Chile (861 Km) 9 Departments(/Provinces): Beni, Chuquisaca, Cochabamba, La Paz, Oruro, Pando, Potosí, Santa Cruz and Tarija Sucre; La Paz (Seat of Government) Santa Cruz (1,651,436 inhabitants), El Alto (960,767), La Paz (840,209), Cochabamba (618,384) Population (2013) 10,027,254 inhabitants Density (Est. 2012) 9.4 inhabitants/Km2 Life expectancy (Est. 2011) 67.9 years Average of age (Est. 2011) 22.5 years Languages Spanish and 36 other indigenous dialects Independence Day 6 August (1825, from Spain) Constitution 7 February (2009, last modification) Currency Time zone Religion Public holidays Business Hours Memberships on Boliviano (BOB). USD are used for big transactions 1 DKK= 1.19 BOB (October 2012) - 5 hours during Danish winter - 6 hours during Danish summer Catholic (90%). There is religious freedom - New Year (1 January) - Constitution Day (22 January) - Carnival (2 days, variable dates between February and March) - Good Friday (variable date between March and April) - Labour Day (1 May) - Aymara New Year (21 June) - Corpus Christi (variable date between May or June) - Independence Day (6 August) - All Saints Day (1 November) - Christmas (25 December) - Each Department (Region) Day - Public Offices: Monday to Friday 8.30 – 12.30; 14.30 – 18.30 - Private sector: Monday to Friday 8.00 – 12.00; 14.00 – 18.00 - Banks: Monday to Friday 9.00 – 16.00 Saturday 9.00 – 13.00 UN; WTO; G77; Organisation of American States (OAS); Andean Community (CAN); Latin American Integration Association (ALADI); Rio Group; InterAmerican Developmental Bank; International Monetary Fund (IMF), Union of South American Nations (UNASUR) and Bolivarian Alliance of Our Peoples of America (ALBA). Sources: National Institute of Statistic (INE), Central Bank of Bolivia, CIA World Facebook and Ministry of Labour Bolivian Business Development Profile | 5 2 Economic Overview In recent years, Bolivia has shown a solid economic performance, based on the exports of raw material such as gas and minerals, helped by the higher prices in the international market; control of inflation; and the increase of domestic demand, especially consumption. Gross Domestic Product has grown more than 4% per year since 2004, with the exception of 2009, when the economy was slightly affected by the financial crisis. Bolivia is considered as one of the most stable economies in South America with stable macroeconomic indicators, high levels of international reserves, solid public finances, and increasing creditworthiness. Bolivia: Growing of GDP and Inflation, 2007 – 2011 (In %) GDP 11.9 11.7 Inflation 7.2 6.2 4.6 6.9 5.2 4.1 3.4 0.3 2007 2008 2009 2010 2011 Source: National Institute of Statistic (INE) South America: Gross Domestic Product, 2010 – 2013 (In %) Country 2010 2011 2012 (p) 2013 (p) Peru 8.8 6.9 5.9 5.5 Bolivia 4.1 5.2 5.0 4.5 Chile 6.1 6.0 5.0 4.8 Venezuela -1.5 4.2 5.0 3.0 Colombia 4.0 5.9 4.5 4.5 Ecuador 3.6 7.8 4.5 4.5 Uruguay 8.9 5.7 3.5 4.0 Argentina 9.2 8.9 2.0 3.5 Brazil 7.5 2.7 1.6 4.0 Paraguay 13.1 4.4 -2.0 5.0 Source: Economic Commission for Latin America (ECLAC) / (p): Projected data Bolivian Business Development Profile | 6 Gross Domestic Product by economic activity, 2011 (In %) 5% 3% Mines and quarries extraction 28% 13% Manufacturing industry Agriculture, hunting and fishing Transport, storage and communication 15% Commerce 19% 17% Construction Electricity, gas and water Source: National Institute of Statistic (INE) Main Indicators Gross Domestic Product (GDP) USD23,879 million (2011) GDP growth 5.2% (2011) 5.5% (Est. 2012) GDP per capita USD2.315 (2011) Inflation rate 6.9% (2011) 5,0% (Est. 2012) Urban unemployment rate 6.5% (2010) Direct Foreign Investment External Public Debt Net International Reserves Exports Imports Labour force by activity USD859 million (2011) USD577 million (Jun. 2012) USD3,582 million (2011) USD3,523 million (Sep. 2012) USD13,772 million (Oct. 2012) USD9,114 million (2011) USD6,823 million (Sep. 2012) USD 7,673 million (2011) USD 5,458 million (Sep. 2012) - Agriculture: 14% - Manufacturing Industry: 14% - Non manufacturing industry: 22% - Services: 50% Sources: National Institute of Statistic (INE), Central Bank of Bolivia (BCB), and World Economic Forum Bolivian Business Development Profile | 7 3 Trade Opportunities 3.1 Trade Agreements of Bolivia Bolivia only maintains bilateral trade agreements with Latin-American countries. The most important of them is the Andean Community Agreement, of which it is a founder member. It is also an associated member of MERCOSUR. Bolivia is a beneficiary of preferential treatments within unilateral systems, such as the Generalized System of Preferences Plus of the European Union, which facilitates Bolivian exports to Denmark. Bilateral Trade Agreements Andean Community (Peru, Colombia and Ecuador) MERCOSUR (Argentina, Brazil, Paraguay and Uruguay) Chile Cuba Mexico Venezuela (under the frame of Bolivarian Alliance of Our Peoples of America – ALBA) Generalized Systems of Preferences (Unilateral) GSP Plus of the European Union GSP of the United States of America GSP of Japan GSP of Canada GSP of Russian Federation GSP of Turkey GSP of New Zealand GSP of Switzerland GSP of Norway Source: Bolivian Institute of Foreign Trade (IBCE) Top 5 Destination of Exports, 2011 Top 5 Origin of Imports, 2011 Nº Country Main Product Nº Country 1 2 3 4 5 Brazil Argentina USA Japan Peru Natural Gas Natural Gas Tin Zinc Soybeans derivatives 1 2 3 4 5 Brazil Argentina China USA Japan Main Product Iron and Steel Bars Diesel Airplanes Gas Turbines Automotive Vehicles Source: National Institute of Statistic (INE) Bolivian Business Development Profile | 8 External Trade of Bolivia, 2007 – 2011 (Millions of US Dollars) Exports Imports Commercial Balance 9,114 2011 7,673 1,441 6,966 2010 5,604 1,362 5,400 2009 4,577 823 6,933 2008 5,100 1,833 4,822 2007 1,234 3,588 Source: National Institute of Statistic (INE) 3.2 Bolivian Exports Bolivia suffers from a huge dependence on the raw material exports, such as petroleum, gas, minerals, soybean and wood. Natural gas is the most important product for export, and it is totally destined to Brazil and Argentina. However, there are other interesting and potential products to export such as nuts, quinoa, amaranth, sesame, cocoa, coffee, tea, tropical fruits and others. Composition of Bolivian Exports, 2011 (%) Petroleum, gas and derivatives 45.52% Minerals 37.56% Soybean and derivatives 7.54% Wood 0.96% Sunflower and derivatives 0.86% Leather 0.58% Jewellery 0.58% Textiles and Clothing 0.45% Sugar and derivatives 0.37% Other 5.59% Source: National Institute of Statistic (INE) Bolivian Business Development Profile | 9 3.3 Bolivian Imports A vast majority of Bolivian imports are considered as industrial supplies (fuels, iron and steel, machinery and chemical products). However, there is a constant fight against contraband along the borders of the country. Composition of Bolivian Imports, 2011 (%) Fuels 13.30% Automotive vehicles 12.94% Iron and steel 7.41% Industrial machinery 7.37% Machinery and equipment in general 6.19% Electric machinery and artefacts 3.85% Chemical products 3.38% Metal manufacturing 3.18% Machinery and equipment generators of power 3.03% Cereals 2.83% Other 36.53% Source: National Institute of Statistic (INE) 3.4 Trade Bolivia – Denmark In 2011 Bolivia exported more than USD 1.3 million of goods to Denmark. It was the 42nd most important market (of a total of 106 countries) for Bolivian products in terms of value. Over the last five years, Bolivian exports to Denmark accumulated more than USD 4 million. Bolivian Exports to Denmark, 2007 – 2011 (US Dollars) 1,374,798 1,120,351 886,364 746,288 692,565 2007 2008 2009 2010 2011 (p) Source: National Institute of Statistic (INE) / (p): Preliminary data Bolivian Business Development Profile | 10 The Danish market is important for the Bolivian textile and clothing exports, considering that 50% of the exports belong to this sector. Food and food ingredients, wood and jewellery are also potential sectors in order to increase Bolivian exports to Denmark. Bolivia: Exports to Denmark, by sector 2011 (p) (%) 0.62% 10.31% Textiles and clothing Food and food ingredients 11.78% 50.45% 26.85% Other products Wood Jewellery Source: National Institute of Statistic (INE) / (p): Preliminary data 3.5 Infrastructure for International Trade Bolivia uses ports and warehousing facilities at Arica, Iquique and Antofagasta (Chile); Matarani and Ilo (Peru); and Santos (Brazil). Other port facilities used are free ports in Rosario (Argentina); Nueva Palmira (Uruguay); and Belem (Brazil). Bolivia suffers from weak infrastructure. The average investment in infrastructure as a percentage of the GDP has been only 3.3% during the last 20 years 1. Only 30% of the 16,054 kilometres of the main road network is paved, the rest is still covered by ground and gravel. According to the Bolivian Road Administration (ABC, in Spanish) the State had a budget of USD 600 million for infrastructure for the year 2012. Between 2006 and 2011 more than 1,000 kilometres of roads were constructed. The railroad network is divided into two parts: the Eastern part counting 1,222 kilometres that connects the country with Brazil and Argentina, and the Western part with 2,318 kilometres that connects with Argentina, Chile and Peru. Bolivia has developed the exports of oilseeds through Puerto Aguirre (located in the Paraguay River), which allows the country the transport of goods through the Atlantic Ocean. There are also some interesting projects of economic development in this area. The main national airlines are Boliviana de Aviación (BOA), Amaszonas and Transporte Aéreo Militar (TAM), other international airlines operating in the country: American Airlines, LAN, Aerolíneas Argentinas, TACA, TAM MERCOSUR, GOL and Copa Airlines. 1 Populi Centre of Studies Bolivian Business Development Profile | 11 4 Investment Overview 4.1 Doing Business Report In the Doing Business Report 2013, Bolivia is ranked in the position 155 of 185 economies which shows a regression in the index compared to 2012 projections. Besides it is one of the worst economies regarding legal rights of borrowers and lenders and in providing minority investor protection. Topic Rankings Rank 2013 Rank 2012 Starting a business 174 169 Dealing with construction permits 114 107 Getting electricity 126 124 Registering property 139 138 Getting credit 129 Protecting investors 139 126 136 Paying taxes 180 179 Trading across borders 125 126 Enforcing contracts 136 135 Resolving insolvency 68 65 Source: Doing Business Report 2013. Between 185 economies 4.2 World Economic Forum: Competitiveness Index (Between 144 economies) Score (1 - 7) General Basic Requirements 1) Institutions 2) Infrastructure 3) Macroeconomic environment 4) Health and primary education Efficiency enhancers 5) Higher education and training 6) Goods market efficiency 7) Labour market efficiency 8) Financial market development 104 94 119 108 49 97 122 92 138 132 126 3.78 4.15 3.31 2.95 5.02 5.32 3.35 3.83 3.40 3.58 3.33 9) Technological readiness 127 2.73 10) Market size 82 3.25 100 103 83 3.28 3.55 3.01 Parameters Innovation and sophistication factors 11) Business sophistication 12) Innovation Rank Bolivian Business Development Profile | 12 The most problematic factors for doing businesses % Access to financing 25.6 Restrictive labour regulations 19.1 Foreign currency regulations 13.3 Inefficient government bureaucracy 11.9 Inadequate supply of infrastructure 9.8 Corruption 3.9 Policy instability 3.7 Inadequately educated workforce 3.2 Poor work ethic in national labour force 2.7 Insufficient capacity to innovate 2.0 Inflation 1.1 Government instability/coups 1.0 Tax rates 0.9 Poor public health 0.7 Tax regulations 0.7 Crime and theft 0.6 Source: The Global Competitiveness Index 2012 – 2013. World Economic Forum 4.3 Incentives for Foreign Investment According to the Economic Commission for Latin America (ECLAC) Report on Foreign Direct Investment, Bolivia was the 8th country in Latin America to be considered a destiny for FDI in 2011. In 2011, the Direct Foreign Investment in the country represented 4% of the GDP in relative terms, being the main investors: Sweden, Spain, Brazil, USA and France. The more beneficiated industries with external investment were: energy, mining, manufacturing, commerce, transport and communications. The average wages in each private sector is a piece of key information for foreign investors, in order to know their exact costs of production. The highest average wage (above USD 1,000) belongs to the sector of production and distribution of electricity, gas and water; while the lowest average wage (below USD 200) is found in the service sector of restaurants and bars. Bolivia: Average wage by activity in private sector, 2011 Activity General Production and distribution of electricity, gas and water Communications Elaboration and conservation of fruits, beans, vegetables and elaboration of vegetal oils and food products BOB USD 3,099 7,738 6,225 445 1,112 894 4,790 688 Bolivian Business Development Profile | 13 Intermediation of finances Extraction of crude oil and natural gas Services of housing, businesses and rent Transport and storage Education for adults and other types of education Fabrication of non-metallic mineral products Fabrication of products of paper, edition, print and reproduction Extraction of minerals Construction Elaboration of alcoholic beverages and tobacco Primary, secondary and college education Hostelry Commerce Services of cinematography, radio, television and entertainment Social and health services Fabrication of chemical products and substances Elaboration of dairy products Elaboration of metal-mechanic products Elaboration of starch and bakery products Production, processing and conservation of meat and meat products Elaboration of sugar, confectionery, pasta and noodles Production of wood and products of wood (except furniture) Fabrication of textiles, clothing, leather products and shoes Restaurants and bars 4,383 4,195 3,835 3,559 3,151 3,090 630 603 551 511 453 444 3,035 436 3,013 2,736 2,689 2,652 2,513 2,482 433 393 386 381 361 357 2,183 314 2,013 2,009 1,947 1,708 1,619 289 289 280 245 233 1,591 229 1,544 222 1,533 220 1,341 1,222 193 176 Source: National Institute of Statistic (INE) / Official Currency Exchange: 1 USD: 6.96 BOB Capital gains and investment incomes from production and commercialization are all taxed. There are also sectorial taxes, for instance in the hydrocarbons industry. Taxes Value Added Tax (VAT) 13% Complementary Regimen to VAT 13% Transaction tax 3% Tax of the Companies Utilities (TCU) 25% Tax to Specific Consumptions (According to Law Nº 843) Description To the added value in every phase of production or commerce of a good or service. To the income of employees (of public or private companies). It is possible to reduce this tax with the presentation of fiscal credit. The company is only an agent of retention. To the gross incomes accrued and transmissions of goods and immovable. To the annual utilities of the public and private companies, independent professionals and others. To the national production and imports of alcoholic beverages, some non-alcoholic beverages, tobacco, cigars and cars. Bolivian Business Development Profile | 14 Tax to the Property of Immovable and Automotive Vehicles (According to Law Nº 843) Special Tax to Hydrocarbons and derivatives (According to Law Nº 843; Maximum of 5,34 BOB per litre) Complementary Tax to Mining (According to Law Nº 843 and Supreme Decree Nº 24780) Tax to Financial Transaction 0,15 % Direct Tax to Hydrocarbons (32 % and 18 % of royalties) To the immovable property, urban or rural, and automotive vehicles of any type or category: cars, trucks, jeeps, vans, motorcycles. To the commercialization of derivatives in the domestic market. hydrocarbons and To the gross value of mineral sales, being the result of the multiplication of the weight of the content by the official price in USD. To transactions superior to USD 2,000.To the 100 % of the production of crude oil by any natural person or company, public or private 5 Potential Sectors 5.1 Agricultural According to the Food and Agriculture Organization (FAO) Bolivia is the largest producer of Brazil nuts, a product with an incredible growing of exports in the last five years. Besides, Bolivia is the second producer of quinoa (being worldwide the first exporter of this product) and Andean camels (lamas, alpacas and vicuñas). Agriculture in Bolivia is divided into the production of export products (especially soya) and food products for the domestic market in the eastern part of the country and the production of food, mainly for the domestic market in the valleys and western zone. Bolivia has a huge agricultural potential because of the varieties of soils and climates. It is possible to divide the production into four main areas: highlands, valleys and tropic, lowlands and forests. 5.1.1 Highlands The Bolivian highlands are ideal for the production of ancient Andean grains like quinoa, amaranth and cañahua. These grains are rich in proteins, vitamins, minerals, do not contain gluten and the production is predominately organic. Due to these characteristics, these grains have steadily gained importance as an alternative to cereals throughout the world and the demand for these products is increasing. Bolivian Business Development Profile | 15 Potential product Opportunities Challenges Exports (2011): USD 63,445,879 This Andean cereal is very estimated by the quality of its protein. It has a balanced composition of amino acid similar to the composition of the protein of the milk. The implementation of technology is necessary in order to increase the production and industrialization of this product. Main importers: USA, France, Netherlands, Canada and Germany Products elaborated with quinoa have increased: pastas, soups, cereal bars, snacks, confectionery, among others. It is necessary to introduce techniques to control the strong influence of the weather in the productive areas. Quinoa Quinoa is successfully exported to many countries as conventional and organic grain. Some companies achieved the Fair Trade Certification, in the last years. Amaranth Exports (2011): USD 87,295 Main importers: Canada, Japan and Switzerland Cañahua Exports (2011): USD 93,040 Main importers: USA and Canada The grains of amaranth are largely produced organically, thus giving it a higher value than those conventionally produced. An increase in the healthy food trend could be an opportunity for this product. The grain toasted and turned into flour called “whistle” is used in the gastronomy for soups, bread and several drinks. The importance of this crop is mainly due to its high protein content in the grain, with a great amount of amino acids. To increase the volume of production through the expansion of cultivated area. Improvement of the production chain of amaranth derivatives products with higher quality parameters. In the same way like amaranth, it is necessary to expand the cultivated area, introduce the product in new markets and develop its industrialization. Source: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE) Andean grains Andean grains, such as quinoa, amaranth and cañahua, are of considerable interest to European markets due to their high nutritional value and purity (ecological and nongenetically modified organism, GMO). From a development perspective, they are particularly interesting because they have the potential to improve incomes for a large numbers of poor farmers mainly located in the highlands. The challenge is to create more value-added within Bolivia. This job has so far been promoted mainly by the development cooperation, but Danish businesses could also take advantage of the opportunity. List of companies in the Andean Grains Cluster Agrofor S.R.L: (Chuquisaca) Andean Foods Enterprise – ANFE (www.anfebiofoods.com) Andean Valley (www.andeanvalley.com) Cereales Andina S.R.L. (La Paz, Ph 591(2) 2864623) Cereales Antezana S.R.L. (La Paz) Bolivian Business Development Profile | 16 Central de Cooperativas Agropecuarias Operación Tierra – CECAOT (La Paz, 591 (2) 2318502) (www.quinua.com.bo) Consorcio Comercial Imperio de los Lipez (www.delipez.com) CORONILLA S.A. (www.coronilla.com) Dci Amaranto (Cochabamba) Emprotarwi (La Paz) IRUPANA Andean Organic Food SA –IAOFSA (www.irupana.com) JATARIY S.R.L. (jatariy@gmail.com) LATCO INTERNATIONAL (www.latcointernational.com) QUINBOLSUR – Salinas (wbarco_perez@hotmail.com) QUINOA FOODS COMPANY S.A. (www.quinoafoods.com) QUINOABOL S.R.L. (www.quinoabol.com) Montecristo Bolivia S.R.L. (http://www.montecristobolivia.com) Productos Andinos Bolivia - PROANBOL S.R.L. (www.realquinua.com) Real Andina – Uyuni (realandin@hotmail.com) SINDAN ORGANIC S.R.L. (www.quinuasindan.com.bo) Sobre la Roca (http://www.sobrelarocabolivia.com) Sociedad Agropecuaria Industrial y Técnica S.R.L. – SAITE (www.quinuasaite.com.bo) Sociedad Industrial Molinera S.A. – SIMSA (www.princesa.como.bo) Source: Rojas et al. (2010b) 5.1.2 Valleys and tropic The tropical and subtropical regions allow the production of a vast variety of fruits and vegetables, which are further processed and exported. The production is concentrated in small and medium sized associations or by individual producers. Most of the fruit production is conventional, but organic production is increasing due to the international demand and prices. Potential products Coffee Exports (2011): USD 26,189,306 Main importers: USA, Germany, Belgium, France and Netherlands Tea Exports (2011): USD Opportunities Challenges In the Yungas region, located in the Department of La Paz, high altitude coffee (Arabic) is produced, represented by the varieties “typical”, “caturra”, “catimor” and “novo mundo”. The production of coffee is organized in cooperatives of small producers. Improvement of the production to reach the Fair Trade certification. Technical expertise in genetic resources management in order to diversify the production. Due to the absence of utilization of pesticides and chemical agents in the crops and its excellent flavour, this product also achieves a constant and increasing international demand. A variety of infusions is produced in the tropic of Cochabamba, with special characteristics in flavours. Increasing the volume of the limited production, with special focus on organic certification. Bolivian Business Development Profile | 17 189,763 Main importers: Costa Rica, Colombia, Chile and USA Pineapple Exports (2011): USD 674,273 Main importers: Argentina, Chile, Italy, Costa Rica and Denmark Banana Exports (2011): USD 20,381,491 Main importers: Argentina, Chile, Uruguay and Spain Peanut Exports (2011): USD 660,798 Main importers: Netherlands, Peru, USA and Spain Palm hearts Exports (2011): USD 13,525,598 Main importers: Argentina, Chile, USA, Uruguay and Venezuela Some varieties of tea produced in the country are: black tea, organic green tea, camomile tea, anise tea, fruity flavoured tea (orange, pineapple, peach and apple, among others). Develop standards for packaging and labelling for this product. The production in the tropic area of Cochabamba has increased during last years in the same way as bananas. Implementation of organic production and reach Fair Trade certification. Pineapple is one of the most consumed tropical fruits in the world, after banana and mango. Diversify the offer of products: pineapples cut in pieces, in syrup, confectionery with pineapples, among others. Banana is the most exported Bolivian tropical fruit. The production is located in the tropic area of Cochabamba. Implementation of organic production and reach Fair Trade certification. The main markets for exports are located in the region (mainly Argentina). The European Union could be an interesting market, being the largest importer of banana in the world. Develop the packaging and labelling phase within the production chain. The more exported variety is the “Cavendish Valery”. However, there are more varieties in the country. Diversify the offer of products: dried bananas, energy bars and beverages, among others. Peanuts are common ingredients in cuisines all over the world and are also used for popular snacks and confections such as salted peanuts, peanut butter, and candy bars. Peanuts are only consumed in local markets as a snack or as an ingredient for some recipes. However, there is a lack of industrialization of its oil and other derivatives. Moreover, peanut oil is used in a variety of industrial products and also many cosmetics contain peanut oil and its derivatives. Peanuts are a rich source of protein and contain high concentrations of antioxidant polyphenols. Some producers in the tropic of Cochabamba have achieved organic certification. There is enough land in the tropic for palm hearts crop, right now only 10% of the area is used for production. Technology to extract the oil is necessary to complete that objective. The production of palm hearts needs to expand the area of production and introduce better technology of packaging and labelling. Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE) Bolivian Business Development Profile | 18 Coffee Chain Coffee production in Bolivia has been developed organically, given that the geographical characteristics of the country are apt for the cultivation and obtaining of high-quality grains (regions above 2.400 metres above sea level). List of organizations and companies in the Coffee Cluster Asociación de Organizaciones de Productores Ecológicos de Bolivia (AOPEB) Federación de Caficultores de Bolivia Asociación de Café Apolo (La Paz, info@aopeb.org) Asociación de Cafés Especiales de Bolivia ACEB (La Paz) Asociación de Productores de Café Ecológico – APROCAFE (La Paz, aprocafe@bolivia.com) Cooperativa Agrícola Cafetalera San Juan Ltda. (La Paz, fecafeb@ceibo.entelnet.bo) Cooperativa AGROP. Y COM. Alto Sajama (La Paz) Cooperativa Integral AGROPEC Antofagasta Ltda. (La Paz, café_antofagasta@yahoo.es) Companies Café Copacabana (www.industriacopacabana.com) Café Ideal (www.cafeideal.com.bo) Agrícola Cafetalera Buen Vista S.A AGRICABV (La Paz, www.anditradecoffe.com) Agroecológica Flor de Camata AGREFAC S.R.L (La Paz) Agroecológicas Pilon Laja (La Paz) AGROTAKESI S.A (La Paz) Coraca RI-Irupana (La Paz, www.coracairupana-blogspot.com) IRUPANA Andean Food S.A (La Paz, www.irupana.org) Sociedad industrial Cafetera Soinca Ltda. (La Paz) Source: IBCE (2010). 5.1.3 Lowlands In the eastern lowlands, soybean is cultivated under large mechanized farming systems, as well as other products like: cooking oil, cotton, rice, sugar-cane, sorghum, maize, millet, sesame, among others. The agribusiness sector is one of the biggest sectors in Bolivia in the sense that it employs more than 40% of the population. Subsistence farming constitutes the majority of the sector; however, commercial agriculture is increasingly important, especially in the eastern lowlands. Potential products Soybean Opportunities Challenges Soybean is the main agricultural export product of Bolivia, and one of most important products in terms of exports. The production of soybean oil is one of the most advanced industries in Bolivia. However, some barriers Bolivian Business Development Profile | 19 Exports (2011): USD 686,861,053 Main importers: Venezuela, Colombia, Peru and Ecuador Sunflower Exports (2011): USD 78,047,919 Its composition is of 42-48 % protein, 20 21 % oil and 34 % carbohydrates. In the industry it is used to produce soybean meal for animals, refined oil, soybean flour, soybean butter, soybean milk, pet food, poultry feed, among others. This oilseed has a high content in fat (3858%), both mono saturated and polyunsaturated fats help reducing cholesterol. Main importers: Colombia, Chile, Ecuador and Peru Its extracted oil is vastly used for cooking, considering that it is cheaper than olive oil for example. Other industrial uses are to produce margarine and biodiesel. Rice Rice has become a traditional item in Bolivian diet and an essential ingredient in many recipes. In Bolivia, the consumption adds up to 38 kg per person per year. Exports (2011): USD 802,994 Main importers: Peru The production of this cereal generates 70,000 direct and indirect jobs. Rice is produced in 7 of the 9 Departments (Oruro and Potosí are the exception). However, 98% of the rice production is located in Santa Cruz. Sesame Sesame is grown primarily for its oil-rich seeds. The small sesame seed is used completely for cooking because of its rich nutty flavour and also yields sesame oil. Exports (2011): USD 15,707,735 are given by government export restrictions. The industrialization of some derivatives products such as soybean milk, soybean butter, among others is still limited. The premium markets for sunflower seeds provide the best opportunities for Bolivian production as the conventional market is dominated by large multinationals which have standards that are difficult to meet for small and medium sized companies. For this reason, Bolivian producers might want to link up with specialised traders. 80% of worldwide rice is consumed in large grains; however Bolivian rice grain is too small for export. Therefore it is necessary to introduce genetic management. Market niches such as Fair Trade certified rice, GMOs and aromatic rice, could be reached. 90% of the production is exported. However, the production is sold as raw material, and therefore it is necessary to develop the derivatives. Main importers: Japan, USA, Netherlands, Peru and Germany Sesame seed is mainly used for the preparation of different bakery products and it is also very important in the gastronomic industry, being used as cooking oil or for salad dressings. Despite its healthy properties, sesame is little consumed in local markets, and is only used in the bakery industry. Bovine meat The production of bovine meat has been increasing through the incorporation of modern genetic technology and new methods of grass cultivation. Exports of bovine meat are deficient due to public restrictions (quotas) and unfavourable weather conditions. 71% of the production is located in the Departments of Beni (42%) and Santa Cruz (29%). In 2011, the production reached 8,400,439 bovines. Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE) Bolivian Business Development Profile | 20 Oilseeds cluster: Soybeans and sunflower seeds A large part of the department of Santa Cruz has shown excellent conditions for growing soybeans and sunflower seeds. It has yet to implement African palm oil plantations, but that is probably only a question of time. The cluster is relatively developed (compared with other Bolivian chain); however the potential is not fully exploited. List of companies in the Oilseeds clusters Alimentos Alfa Ltda. (Cochabamba, Phone 4270094) ALSA - Clara Bella (earce@alsa-clarabella.com) Boltagro S.R.L. (www.boltagro.com.bo) Coinco-Bol Ltda (coincobolltda@yahoo.com) Etasa S.R.L. (Santa Cruz, 591(3) 3527744) Fas S.A. (Santa Cruz, 591(3) 3882827) Gravetal Bolivia S.A. (www.gravetal.com.bo) Industrias de Aceite Fino S.A. (www.fino.com.bo) Itika S.A. (www.itikasa.com) IOL-Industrias Oleaginosas S.A. (www.iol-sa.com) Montecristo Bolivia S.R.L. (www.montecristobolivia.com) Nutrir S.R.L. (Tarija, 491 (4) 6672886) SAO – Sociedad Aceitera del Oriente S.A. (www.admsao.com) Semilla Mônica S.R.L. (Santa Cruz, 591(3) 3466499) Source: Antelo (2007), Muriel and Valencia (2010) 5.1.4 Forests The forest area located in the Departments of Beni, Pando and North of La Paz is a producer of many products highly appreciated for their unique characteristics. A vast majority of them are not cultivated but only harvested, and consequently are considered as organic products. Among those products Bolivia has a variety of exotic fruits from the Amazon forest which are collected by people in the communities for domestic consumption. The fruits can be introduced to external market under the slogan of “exotic fruits”. Some exotic fruits are: Copoazú (Theobroma grandiflorum); Açaí (Euterpe oleracea); Achachairú (Garcinia humilis); Guava (Psidum spp.); Ocoró (Rheedia brasiliensis); Tumbo (Passiflora tripartita); Tuna (Opuntia fiinsindica L.); Chirimoya (Annona cherimola) and Pacay (Inga fenillea). Potential products Brazil nuts Exports: (2011): USD Opportunities Challenges In the northern part of Bolivia, (the Departments of Beni and Pando) the production of Brazil nuts from the Amazons has reached high quality levels. The nuts are sold to wholesalers and brokers, without any added value. Bolivian Business Development Profile | 21 Main importers: UK, USA, Germany, Netherlands and Australia Bolivia is the largest producer and worldwide exporter of this product. It is one of the preferred ingredients for snack bars, the chocolate industry and due to its high content of vitamin E it is highly appreciated in the cosmetics industry. Cocoa Bolivia produces a cocoa with high purity and special taste. Cocoa is produced in the northern area of the Department of La Paz, and in the plains of Department of Beni and it is usually harvested by rural communities. Exports (2011): USD 2,525,327 Main importers: Switzerland, Germany, Argentina, Denmark and USA After careful selection the cocoa beans are fermented and dried, so they are ready to be transported to the factories. Macadamia nuts are a valuable food crop and are highly nutritious. They have the highest amount of beneficial mono saturated fats of any known nut. Macadamia Exports (2011): USD 158,454 Main importers: UK and Italy Macadamia oil is prized for containing approximately 22% of the Omega-7 palmitoleic acid, which makes it a botanical alternative to mink oil. Moreover, the content of palmitoleic acid plus Macadamia’s high oxidative stability makes it a desirable ingredient in cosmetics, especially skincare. Shelling is a manual work, so it is necessary to introduce technology for this phase of production. Develop the production of derivatives of Brazil nuts such as the oil for the cosmetic industry. It is necessary to expand the volume of the production and improve the practices of harvesting with quality control systems. Introducing technical expertise in genetic resources management. Only a few organizations /companies are working in this area. Macadamia is still in a phase of introduction for Bolivian producers. Only some productive ventures are developed in the north of the country and in Japanese colonies in the Department of Santa Cruz. It is necessary to expand the production in order to satisfy the demand in developed markets. The introduction of technology and genetic advances are important in order to reach this. Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE) Bolivia: Agricultural production, campaigns 2006 – 2011 (In metric tonnes) Description Cereals Rice Barley grain 2006-2007 2007-2008 2008-2009 2009-2010 2010-2011 1,792,642 376,970 47,368 2,109,850 435,960 47,010 2,367,468 410,994 47,608 1,836,892 449,482 47,604 2,057,738 473,522 42,934 Corn Quinoa 812,318 28,231 1,000,385 28,809 1,174,447 29,873 718,014 30,900 877,047 36,854 Sorghum grain Wheat 365,040 162,715 436,133 161,553 503,038 201,508 335,536 255,356 389,534 237,847 30,727 4,028 31,760 4,357 32,917 4,510 33,570 4,652 33,064 4,729 Stimulants Cocoa Bolivian Business Development Profile | 22 Coffee 26,699 27,403 28,407 28,918 28,335 Fruits Banana 853,409 151,760 853,464 149,594 880,637 154,227 905,653 158,178 903,335 160,264 Peach Mandarin 30,780 113,868 31,719 122,465 32,811 127,337 33,636 130,108 33,274 128,516 Orange Pineapple 157,184 47,789 161,453 46,808 165,397 48,074 170,796 48,986 170,221 48,490 Plantain Grapes 327,362 24,666 317,757 23,668 328,495 24,296 338,901 25,048 337,910 24,660 Vegetables Garlic 270,784 6,688 277,782 7,166 279,405 7,420 312,577 7,278 291,856 7,055 Pea Onion 21,613 71,030 21,595 80,300 22,194 78,585 22,720 81,048 21,383 78,919 Beans Lima Beans 41,200 55,245 38,195 56,466 38,522 57,419 67,670 58,609 57,603 55,067 Maize Tomatoes 21,508 53,500 21,736 52,324 22,195 53,070 22,190 53,062 21,311 50,518 Oilseeds and Industrial Cotton 8,267,695 3,323 9,004,405 10,120,298 2,480 1,357 8,143,604 386 7,936,697 3,105 Sugar cane Sunflower 6,429,700 173,300 7,458,808 298,642 7,803,800 394,207 5,891,788 310,841 5,456,598 152,652 12,410 14,693 13,000 5,590 13,315 15,000 13,439 10,000 12,496 12,000 1,634,269 1,147,557 1,225,885 1,179,850 1,892,619 1,205,808 1,917,150 1,230,700 2,299,846 1,187,160 892,554 255,003 935,862 243,988 956,953 248,855 975,418 255,282 943,176 243,984 311,033 316,972 329,239 176,274 183,999 190,252 134,759 132,973 138,987 12,673,847 13,774,083 15,215,772 335,501 193,770 141,731 12,798,497 325,120 187,507 137,613 12,734,970 Peanuts Sesame Soybeans Tubers and Roots Potatoes Cassava Forages Alfalfa Barley Cabbage Total Source: National Institute of Statistics (INE) Cacao and Derivative Products Cacao production in Bolivia has optimal climate conditions: temperatures between 15°C and 30°C, humidity of 65% to 85% and altitude between 0 and 1,300 metres above sea level. The most favourable regions are the North of La Paz, Beni, Pando, and the wooded areas of the Department of Santa Cruz. Bolivia’s participation in the international cacao market is low: 0.1%. However, Bolivian cacao stands out for being organic and internationally accredited, which places the country among the main producers of this valued product. List of companies in the Cocoa Industry Agroecológica Flor de Camata AGREFAC S.R.L (La Paz, 591 72545365) AGROTAKESI (La Paz, fjimenez1111@hotmail.com) VICOPEX Ltda. (La Paz, www.vicopex.com) Sociedad Agropecuaria Industrial y Técnica (El Alto, www.quinuasaite.com) Bolivian Shoji S.R.L. (Santa Cruz, bshoji@cotas.com.bo) Chocolates el Ceibo (La Paz, www.elceibo.com) Bolivian Business Development Profile | 23 Chocolates Belmore (La Paz, www.chocolatesbelmore.com) Breick Chocolate Natural – INCADEX S.R.L. (La Paz, www.breick.com.bo) Chocolates Condor S.R.L. (La Paz) (www.chocolatescondorsrl.com) Fábrica Nacional de Chocolates Aguila S.R.L. (La Paz, chocolatesaguila@yahoo.com) Manjar de Oro (La Paz, www.manjardeoro.com) Chocolates Tropical (El Alto, 591 (2) 2191969) Itenéz (Santa Cruz, www.productositenez.com) Chocolates Briancon (Sucre) Chocolates del Sur (Sucre, 591 (4) 6453259) Chocolates Para Ti (Sucre, www.chocolatesparati.net) Harasic Ltda. (Oruro, 591 (2) 5241646) 5.2 Industrial Manufacturing Annually, manufacturing has accounted for approximately 19% of Bolivia’s gross domestic product since 1995. Most industry is small-scale, aimed at local markets rather than national operations. Inadequate credit access and competition from the black market have kept Bolivia’s manufacturing sector from developing fully. The level of industrial manufacturing activities has been increasingly significant in the past years as the country goes into a phase of greater competition and market expansion for processed products. Potential sector Leather Exports (2011): USD 52,809,409 Main importers: Italy, China, Argentina, Chile and Germany Opportunities Challenges Bolivian leather presents some optimum characteristics in thickness, colour, texture and finishing. Only a few companies are capable of giving the leather some added value. The vast majority part of the processed leather in the country comes from the eastern zone and it is used in a 50% for the fabrication of shoes, 30% in clothing and accessories and 20% for production of leather goods. Use of improved technology in the production of raw material for the elaboration of goods. Some goods are made of exotic reptile leather with high quality and taking into account the developmental concerns. Bolivian Business Development Profile | 24 Textiles and Clothing Exports (2011): USD 41,329,678 Main importers: Venezuela, USA, Argentina, Chile and Brazil Jewellery Exports (2011): USD 53,009,109 Bolivia has a competitive advantage in its cheap but qualified workhand in the sector of textiles and clothing. The country possesses a variety of cotton fibres, alpaca and lama wool which gives the final products a considerably added value. The production of clothing has increased markedly and has achieved improvements in quality, making use of cotton and fine animal fibres (llama and alpaca). Bolivia’s 2 million llamas and 500,000 alpacas provide a good potential for fibre and textile processing. There are some companies (national and foreign) dedicated to the production of jewellery and imitation of jewellery, located mainly in the Departments of La Paz and Santa Cruz. Main importers: USA, Canada, Dominican Republic, Panama and Colombia Gold and silver jewellery as well as semiprecious stone could be potential for investors in this sector. Bio commerce There are six subsectors to develop within the Bio commerce: exotic fruits, nuts, cosmetics, dyes, natural medicines and nutritional products. Exports (Est. 2010): USD 7,701,684 Main importers: USA, UK, Netherlands, France and Germany Some examples are: urucú (bixa orellana), maca (lepidium meyenii), copaibo (copaifera paupera), majo (oenocarpus bataua), palqui (cestrum parqui), tara (caesalpinea spinosa), peppers, bamboo, among others. New trends of healthy, nutritional and nostalgic products could be an opportunity for the introduction of these resources of Biodiversity into the external markets. Timber and manufactures Exports (2011): USD 87,217,721 Main importers: USA, China, Argentina, Germany, and Netherlands This sector has been one of the most affected after the loss of ATPDEA of the USA. Many small and medium producers with a limited capacity are now looking for new markets. Increasing the capacity of production (financing and technology) in order to satisfy new markets is the priority. Integration of the productive chain and involved actors within the sector. Local demand is limited, so the production needs to be exported. The main barriers for Bio commerce development are the financial and technological issues. These products are in its majority destined to local markets due to the traditional consumption of them. However, their presence is insignificant for the economy. The more important issues to work on in this area are the sanitary and quality control, packaging and labelling. 48% of Bolivian territory is covered by forest, distributed between the tropical and subtropical regions, mainly in the Departments of Santa Cruz, Beni, Cochabamba, Pando and Tarija. Ensuring sustainable extraction of timber in order to acquire certifications such as the FLEGT Certification in the EU. The country possesses about 800,000 hectares of certified forest, and 7 million hectares under sustainable management. There are about 172 varieties of fine and exotic woods. Introduction of technologic advances in the area of controlling the smuggling of raw material for manufacturing products. This sector is formed by 1,200 companies that generate about 62,000 direct employments and 250,000 indirect employments. Bolivian Business Development Profile | 25 Sources: Ministry of Agricultural Development and Grounds; Bolivian Institute of Foreign Trade (IBCE) Leather and leather manufactures Another way to create more value-added (mainly) from the cattle sector is to produce leather and leather products, which has comparative advantages. Denmark could contribute to business partnerships through machinery and technology for producing leather and design and market access for products with higher value-added. Bolivia also has potential to develop the production of more exotic skins, such as alligator skins for very high value-added products. List of companies in the Leather cluster Manufactura Boliviana S.A MANACO (Cochabamba, www.bata.com.bo) AKÖE (Cochabamba, 591 (4) 4457373) Altco Leather Trading Company (Cochabamba, 591 (4) 4588492) Andino Internacional Ltda. (La Paz, andino-int@acelerate.com) Bolivian Pelli Asociados (Santa Cruz, bolivian-pelli@cotas.com.bo) Compañía Industrial de Cueros CIENSA Ltda. (Cochabamba, www.ciensa.com) Cueros Abalos (Santa Cruz, 591 (3) 3477894) Curtiembre y Marroquinería D’addario S.R.L (Santa Cruz, www.daddario.com) Enphesa S.R.L (Cochabamba, pielvo@supernet.com.bo) Exim-Cuer Boliviana Ltda. (La Paz, www.eximcuer.com) Fabrica Nacional del Calzado y Curtiduría Zamora S.A (Oruro, 591 (2) 5274740) Industria de Cueros Diamante Ltda. (Santa Cruz, diamante@scbba-bo.com) Industrias del Cuero Bonanza XXI (La Paz, www.companex.com) MACAWS S.R.L (Cochabamba, www.macaws.net) Manufactura Boliviana S.A MANACO (Cochabamba, www.bata.com.bo) Source: Miranda (2003) and webpages. Textile and Clothing Bolivia has potential for developing the textile and clothing subsector, principally by its camelid fibre production. This would mainly be for exports, as the domestic demand for textiles and clothing is covered by much cheaper clothing imports and even used clothing. Several highland indigenous groups have a very sophisticated weaving tradition, which could add to this potential. The Danish contribution would be mainly in the form of design and market access. List of companies in the Textile and clothing Industry Agencias Generales (Oruro, 591 (52) 2434854 Appecal S.R.L (El Alto, 591 72082477) Aries Confecciones (El Alto, 591 (2) 2386518) Ballivian Asociados (El Alto, 591 (2) 2121643) Beltex Corp. (Cochabamba, 591 (4) 4352321) BOSHAMI S.R.L. (La Paz, 591 (2) 2261953) COEX S.R.L (Santa Cruz, 591 77389770) Comercial Mercedel (El Alto, 591 76248001) Contagio (Santa Cruz, 591 77343002) COTEXCO (Cochabamba, 591 (4) 4268353) Creaciones Paola (El Alto, 591 (2) 2395896) D Fashion Centes (Cochabamba, 591 (4) 4550625) DINATEX (La Paz, 591 (2) 2222324) FABATRI Jeans (El Alto, 591 71587437) JEN (El Alto, 591 (2) 2796023) JOSDO Ltda. (La Paz) JT Jeans (Santa Cruz, 591 70935984) Lijori Sport (El Alto, 591 76227240) Bolivian Business Development Profile | 26 MAKAM (Santa Cruz, 591 (3)3453796) MAYPECC (Cochabamba, 591 71756966) Mazal S.R.L (La Paz, 591 (2) 2111906) Mitsuba (Santa Cruz, 591 (3) 3480003) SUMAISI (El Alto) SURI Export (La Paz, 591 (2) 2413663) Textiles Novotel (El Alto, 591 71217213) TOMICHIS (Cochabamba, 591 73509886) VAL y FAL (El Alto, 591 (2) 2815108) YES Diseño y Alta costura (El Alto, 591 (2) 2752135) Source: information based on www.gnb.com.bo . The pharmaceutical industry (including phytotherapeutic products) Notwithstanding the low level of development and technology employed, the pharmaceutical industry is considered one of the most competitive subsectors in Bolivia, generating considerable economic resources which is however low as compared to other countries (Jordán, n.d.). Furthermore, the great number of medicinal plants produced in the country (many of them native to Bolivia) place the subsector in a position of potential comparative and productive advantages, which may be exploited through new investments and strategic partnerships. A) Approximately 2.500 different medicinal plants are used in pharmacy and cosmetology in Bolivia. Among those with greatest potential are: List of Medicinal Plants with Great Potential in Bolivia Common Name Uses Category A: With markets and research Wira wira Ajenjo Carqueja, tres espigas Green tea Quina, husk Artichoke Sangre de Drago, Llausa, Mora Curcumina Kidron Paico Quenopodio Echinacea Coca Eucalyptus Hinojo Sweet Anis Nogal blanco Maca Marrubio Chamomile Melissa Mint Basil Llantén Maracujá Boldo Quilquiña Rosemary Zarzamora Silvestre Expectorant Stimulant of appetite, parasitosis Diuretic, anti-inflammatory, choleretic, cholagogue Stimulant, antioxidant, anti-inflammatory, antiarthritic Fever, malaria, antiseptic, anaemia Choleretic, cholagogue Cicatrizing, anti-inflammatory, antioxidant Antitumor, anti-inflammatory, antioxidant Antiflatulent, Sedative Antispasmodic, anthelmintic Antiviral, immunomodulatory Analgesic and others in study Antiseptic, expectorant, rubefacient Galactogogue, antiflatulent, antispasmodic, carminative Antidiarrheal, cicatrizing Immunomodulatory, dietary supplement Expectorant, diuretic Antispasmodic, anti-inflammatory Sedative, choleretic, antispasmodic Antispasmodic, antiflatulent, choleretic, halitosis Antiseptic, anti-inflammatory, antispasmodic, antiflatulent, galactogogo Sore throat, diarrhea, liver problems Sedative, antispasmodic Laxative, choleretic, colagogo Flavoring agent Antispasmodic, carminative Astringent, antidiarrheal, headache, varicose veins, hemorrhoids, skin problems Bolivian Business Development Profile | 27 Estevia Mallow Huacataya, suico-suico Amargen, diente de león Uña de gato Valerian Hypoglycemic action against obesity, cariotonic, diuretic, antirheumatic, anti-caries, anxiolytic, antimicrobial Expectorant, anti-inflammatory, laxative Nervous system regulation, stomach pain, digestive, flatulence, loss of appetite Choleretic, diuretic, mild laxative Anti-inflammatory, antioxidant, immunomodulatory Sedative, relaxing, antispasmodic Category B: With insufficient research Akhana, Kita Retama Achiote Ipecacuana, Ipeca Copaiba Casca Sacaca Pinco pinco, sanu sanu Manzana bi Wapi Trompillo de monte Piñón Camu-Camu Kalawala Apainichij apainiki Cedrillo Airampu Limoncillo Antimicrobial Anti-inflammatory Intestinal infections, amoebic dysentery, colds, asthma Antibacterial, anti-inflammatory, healing, skin sore, Psoriasis Antidiarrheal, reduces the cholesterol Cough, asthma, fever, bronchitis, arthritis, edema Food medicine Medicinal use Emetic, antiparasitic, gastric purgative, rubefacient, antiinflammatory Astringent, antioxidant, anti–inflamatory, emollient, nutritional supplement, hypertension Mid purgative, remedy for coughs, stimulant of appetite Leishmanicidal Astringent, antispasmodic, anti-inflammatory Inmunomodulator, antiviral, antimicrobial, hermostatic, pesticide Digestive, flavoring, antimicrobial, pesticide Category C: With no research Carqueja Chima Tembe Evanta hembra Banana Sap PuliPuli Matico Muña, Khoa Guirakilo Surucuina Flor de Nieve Source: Terceros et al. (2007). Rheumatism, anridiabetic, anticancer, antiviral Medicinal use Leishmanicidal, antiparasitic Immunomodulator, tuberculosis, astringent Skin healing Fungal infections, leishmanicidal, astringent for bleeding, ulcers, antidiarrheal, antiseptic vaginal Antiparasitic, insecticide, food preservation Antifungal, fever PLA2 inhibitor, antiarthritic, anti – pancreatic Ant prostatic List of companies in the pharmaceutical industry ABL PHARMA BOLIVIA Ltda. (www.ablpharma.com) COINCOCA (Cochabamba, 591 (4) 4618077) FARMAGE (www.farmage.com.bo) Grupo ALCOS (www.grupoalcos.com) Industrias Torrico Antelo S.R.L. (www.itasalud.com) Industria Farmacéutica Boliviana Ltda. (Cochabamba, 591 (4) 4226001) Laboratorios ALEPH (www.aleph-cosmetologia.com) Laboratorios Bago de Bolivia S.A. (www.bago.com.bo) Laboratorios Alfa Ltda. (www.pharmalabalfa.com.bo) Laboratorios COFAR S.A. (www.cofar.com.bo) Laboratorios CREPAL S.A. (www.crespal.com) Laboratorios Esfasa S.A. (La Paz, 591 (2) 2410766) Laboratorios Droguería INTI S.A. (www.inti.com.bo) Laboratorios FARCOS y ARGEBOL Ltda. (www.laboratoriosfarcos.com) Laboratorio Hahnemann (www.labhahnemann.com) Laboratorios IFA S.A. (www.laboratoriosifa.com) Bolivian Business Development Profile | 28 Laboratorios IFARBO Ltda. (www.ifarbo.com) Laboratorios LAFAR S.A. (www.lafar.net) Laboratorio MALENA (Cochabamba, 591 (4) 4226847) Laboratorio MINERVA (La Paz, 591 (2) 2411845) Laboratorio Químico Farmacéutico Industrial DELTA S.R.L. (La Paz, 591 (2) 2411845) Laboratorio Químico Farmacéutico Galeno - LAQFAGA S.R.L. (La Paz, 591 (2) 2225511) Laboratorio REX (www.farmacia-rex.com) Laboratorios VALENCIA (Cochabamba, 591 (4) 4265641) Laboratorios VITA S.A. (www.laboratoriosvitasa.com) Naturalcos S.A. (www.naturalcosbolivia.com) Timber products Half of Bolivia’s territory is covered in forest, but the economic value produced from these forests is currently very low, indicating severe underutilization. Several hundred thousand hectares are burned every year to make room for agriculture, and in dry years even more is lost to wildfires. Even in managed timber concessions, half of the wood logged is lost in the process of cutting the logs into timber for exports. A very small part of the wood is further processed into furniture, doors, floors and other products with higher value-added. The main limitation is technology and design, which is where Danish firms could make a big difference. List of companies in the Wood Cluster Altmann Montero Exportaciones S.R.L (Santa Cruz, info@altmannmontero.com) Bolivian Exotic Wood (Santa Cruz, www.bolivianexoticwoods.net) CIMABEN S.R.L (Beni, cimabensrl@hotmail.com) Ecowood bo (Cochabamba, www.ecowoods.net) Escala Design (La Paz, www.escaladesign.com) Forestales MULTIAGRO (Cochabamba) (www.multiagro.org) Industrias Nobleza (Cochabamba, 591 (4) 4761770) Jacaranda S.A (Cochabamba, 591 (4) 4268053) La SENDA (El Alto, 591 (2) 2808367) Maderas de Bolivia KBOL (Consorcio Maderero) Maderera Forest for Ever Ltda. Maderplus S.R.L (Cochabamba, www.maderplus.com) Madervaf S.R.L (Cochabamba, www.madervaf.com.bo) Martínez ultra tech doors (Cochabamba, www.utddoors.com/frame-in.htm) Miles S.A (Santa Cruz) (www.miles.com.bo) Muebles Fátima (Santa Cruz, www.fatimamuebles.com) Muebles SOMAIN (Santa Cruz, www.somain.itgo.com) Sociedad Boliviana Maderera, SOBOLMA (Santa Cruz, www.sobolma.com) SUMA PACHA (La Paz, www.sumapacha.bo) Dairy products One of the ways to create more value-added in the cattle sector is to produce milk and dairy products. This is one of Denmark’s specialties. Denmark produces almost 5 million tonnes of milk and 350 thousand tonnes of cheese from its stock of 1.5 million cattle. In contrast, Bolivia produces only 350 thousand tonnes of milk and 7 thousand tonnes of cheese from 7.3 million cattle. Thus, technology transfers from Denmark could potentially create enormous productivity gains, reducing the pressure to clear more forest for cattle pastures. List of companies in the dairy industry Alsa Clara Bella (Santa Cruz, www.alsa-clarabella.com) Compañía de Alimentos CAL (Delizia) (La Paz, www.delizia.com.bo) Cooperativa Integrala Ganadera Pil Beni Ltda. (Beni) Delicruz S.A (Santa Cruz, 591 (3) 3644642) Flor de leche S.R.L. (La Paz, www.flordeleche.com) Ilpaz Ltda. (La Paz, pmm@ceibo.entelnet.bo) Industrias Lácteos del Valle Alto (ILVA) (La Paz, 591 (2) 2416772) Bolivian Business Development Profile | 29 La Campiña S.R.L (Santa Cruz, lacampinasc@hotmail.com) Lácteos de Bolivia LACTEOSBOL (La Paz, www.lacteosbol.sedem.gob.bo) Pil Andina S.A (Cochabamba, www.pilandina.com.bo) Pil Chuquisaca (Chuquisaca, 591 (4) 6461732) Pil Tarija S.A (Tarija, piltarija@hotmail.com) Productos Lácteos VIGOR (Cochabamba, vigor@infobol.com) Productos MAUERY (Cochabamba, mauery@supernet.com.bo) Productos Maya (La Paz, www.quesosmaya.com) Prolac Tarija (Tarija, prolac@entelnet.bo) Soalpro S.R.L (La Paz, www.soalpro.com) Sociedad de Productores de Leche Chuquisaca S.A SOPROLECH (Chuquisaca, adeplech@elnet.bo) Meat and meat products Bolivia has large expanses of natural pastures for llamas, alpacas and sheep in the highlands and cattle in the lowlands. Considerable extensions of lowland forests are also being cleared for pastures, since cattle’s ranching is considered one of the most attractive economic activities in sparsely populated areas with labour scarcity, such as the Bolivian Amazon. However, both primary productivity and value-added are, in general, low. This is in contrast to Denmark, which manages to be one of the top exporters of meat and dairy products, despite the small area and population dedicated to this activity. Metal Industry The industrial machinery also holds great potential for mutually beneficial partnerships, as Bolivia has the raw materials as well as a long tradition in metalworking. In addition, its central location in South America could provide a good platform for production and exports of heavy machinery to the whole continent. Jewellery Industry Jewellery in Bolivia has potentially comparative and productive advantages as a result of the raw materials employed. Bolivia has traditionally been a mining country, with resources such as gold, silver, and copper, among others. These minerals may be combined with precious and semi-precious stones such as Bolivianita. Also, jewellery products have become part of an important non-traditional export industry in the country, with an average participation of 5.4% in these exports in 2000-2011. Lithium derivatives Bolivia is the owner of one of the largest lithium reserves in the world (approximately 6 million of tonnes in 12,000 Km2). Lithium properties have been allowed to be used as an energy source for automotive vehicles, cell phones, computers, among others products of last technology. That makes the lithium a potential product for Bolivian economy. The DBP programme can promote projects which seek to produce lithium derivatives. Difficulties of manufacturing industries 2009 2010 Raw material supply 8.86% 17.68% Qualifying staff supply - 3.9% Contraband 19.08% 13.06% Less demand 26,15% 22.73% Social conflicts 4.98% 5.08% Bolivian Business Development Profile | 30 Increase of raw material prices 11.05% 18.06% Other factors 29.80% 19.41% Source: National Institute of Statistic (INE) These key factors, with high-priority for the DBP Programme, have competitive advantages, because they are articulated in value chains. Competitive improvements in some companies have effect even on the level of producers of raw materials and on employment opportunities. The reduction of unemployment is one of the most important challenges in Bolivia. 5.3 Tourism Incomes of tourism in Bolivia have grown four times since 2002, based on a better knowledge of the diverse opportunities and an increasing promotion of the country as a touristic destination. Since 2012, Bolivia is developing the “Country Brand” with a campaign known as “Bolivia is waiting for you”. Bolivia offers a wide range of natural and cultural diversity to attract tourists interested in nature and ancient culture. The geographic configuration of the country gives it a vast biodiversity that begins in the Cordillera, reaching altitudes above 6,000 meters with glaciers and extraordinary summits for rock climbing/trekking, but also offers lowland where adventurers can reach deep into de tropical Amazon jungle. The unique biodiversity has made it possible to establish 64 protected areas, natural parks occupying around 17 % of the country. The extraordinary diversity of the 32 ethnic groups and the folkloric values of music, dance and handicrafts, represent a great cultural variety. This variety of natural and cultural aspects allows a vast opportunity and potential for the tourism sector. However, the levels of infrastructure, road and air transport, and the quality of services, including hotel, restaurants, cafes etc. need to be improved, before Bolivia can be turned into a major tourist destination. Frequent conflicts causing blockades and strikes are other challenges. In spite of this, Bolivia’s tourist industry has grown gradually over the past 15 years. 5.4 Services Services in Bolivia have incremented their importance in last years motivated by the telecommunication improvement and development of agroindustry, mining and hydrocarbons industries. Main Services Sectors Trading companies Banks and finance companies Freight and transportation Custom services Storage and distribution Insurance Tourism, hotels and restaurants Business services Bolivian Business Development Profile | 31 Construction and engineering services Computer and telecommunication services Computer and telecommunication services have experimented an impressive growing over the last years. Almost 87% of the population is registered in a cell phone service company. However, only 30% have access to the internet. Users of mobile telephony in Bolivia Year Users 2005 2006 2007 2008 2009 2010 2011 June 2012 2,421,492 2,740,636 3,812,241 5,038,600 6,464,390 7,179,293 8,353,273 8,974,291 Access to the Internet in Bolivia Topic Position % of the population Active mobile broadband subscription per 100 inhabitants Percentage of households with Internet (developing countries) Percentage of individuals using the Internet (worldwide) Percentage of individuals using the Internet (developing countries) 1.9 - 66 (between 127 countries) 99 (between 177 countries) 53 (between 132 countries) 9.4 % 30.0 % 30.0 % Source: The State of Broadband 2012: Achieving Digital Inclusion for All. ITU – UNESCO Bolivian Business Development Profile | 32 6 Social Development In the last quarter of 2011, the Government proposed a new “National Development Agenda”, inclosing the social sectors and institutions, with the perspective to prioritize the needs of the country and optimize the economic resources. In Bolivia extreme poverty has been reduced by about 36% in 20002 to 22% in 2011 according to the official data from the United Nations. One factor that helped to reduce the extreme poverty was the distribution of conditional bonus, which has permitted broader access to food, education and health. 6.1 Education Indicators of Education (2010) Population in school age (4 – 17 years) Population with secondary education level achieved Primary education level achieved (urban) Primary education level achieved (rural) Secondary education level achieved (urban) Secondary education level achieved (rural) Women Men 1,653,106 1,716,878 1,308,538 1,369,775 95.6% 93.2% 94.1% 93.6% 93.8% 92.0% 88.6% 90.4% The country has achieved improvements in education during the last five years. Almost the 33% of the population is in school age (4 – 17 years). The formation in technical areas after the secondary education has increased. The number of universities also has grown. The adult literacy rate in Bolivia is between 85% and 95%. Source: Ministry of Education 6.2 Health The health system in Bolivia presents huge differences between rural and urban areas. There is a lack of skilled health personnel and technologic advantages in rural areas. However, the country has improved the access to the basic medical care for pregnant women and children. Indicators of Health (2010) Life expectancy at birth Life expectancy at birth (Male) Life expectancy at birth (Female) Under five mortality rate (per 1,000 live births) Maternal mortality ratio (per 100,000 live births) Prevalence of HIV (per 1,000 adults aged 15 to 49) Prevalence of Tuberculosis (per 100,000 population) Country average Global average 68 66 70 54 190 2 209 68 66 71 57 210 8 178 Source: World Health Organization. Region of the Americas 2 COSUDE Magazine “Food Security: promoting a necessary debate”. Page 6 Bolivian Business Development Profile | 33 HIV/AIDS in Bolivia In Bolivia, HIV/AIDS is still a relatively limited problem. According to the Ministry of Health and Sports, between 1984 and 2011, 7,642 cases of HIV/AIDS were reported as positive (63% men, 36% women and 1% unknown). Only in 2011, there were 1,384 cases reported. 90% of the infected people live in Santa Cruz, Cochabamba and La Paz, in that order of importance. 6.3 Gender According to The Global Gender Gap Report 2012, elaborated by the World Economic Forum, Bolivia is in the position 30 among 135 countries. The country has the best position in South America. Bolivia: Position in Gender Indicators General Position (between 135 countries) Economic and Opportunity Educational Attachment Health and Survival Political Empowerment 30 79 98 84 20 Source: The Global Gender Gap Report 2012. World Economic Forum Gender parity in education has been achieved for primary and secondary education. However, in tertiary education males are favoured. In terms of labour there is a higher participation of male employees in secondary sectors (industrialization companies) and females in service sectors. Labour: Participation by gender in Bolivia, 2010 Sector Men Women Primary sector Secondary sector Tertiary sector Total 33.1% 26.1% 40.8% 100 33.0% 10.3% 56.7% 100 Source: Labour Overview in Latin America 2011. International Labour Organization (ILO) 6.4 Indigenous Peoples´ Rights Indigenous people are protected by the Constitution and the International Agreements and Protocols in this area. Bolivia has become the first country to ratify the UN Declaration of Indigenous Rights (September 13th, 2007). The 2009 Bolivian constitution recognizes the rights of indigenous peoples to their original communal lands, guaranteeing the use and improvement of sustainable natural resources—in line with an alternative vision of development that seeks the spiritual and collective well-being of people as well as greater harmony with nature. However, in recent years, conflicts such as the conflict over a highway through the TIPNIS national park, which is also a titled area for the indigenous peoples living in the area, has challenged the actual implementation of these rights. Bolivian Business Development Profile | 34 6.5 Corporate Social Responsibility (CSR) Corporate Social Responsibility (CSR) has become an important trend in the Bolivian business environment. There is a greater commitment and interest in introducing this issue in the productive sectors. However, vast majority of companies in Bolivia are still in the first stage of the CSR. Only big companies achieve the main parameters of CSR. CSR in Bolivia is deficient in the agriculture sector, especially in the area of labour rights, because of the existence of child labour, poor social conditions and very low salaries. However, there are companies in the secondary and tertiary sector that implemented quality control mechanisms in its productive chain. Population occupied with social security contributions and employment contract, 2010 Sector Social security contributions Employment Contract Agriculture Industries Construction Commerce Transport Services 8.2% 23.9% 14.7% 20.3% 24.1% 58.0% 35.2% 82.1% 55.6% 20.7% 26.5% 75.9% Source: Labour Overview in Latin America 2011. International Labour Organization (ILO) Organic and Fair Trade Certification Between the most important Bolivian products commercialized with Organic Certification are the Andean cereals, chocolates, coffee and infusions. There are almost 10,000 small producers grouped into more than 500 organizations in La Paz, Cochabamba, Santa Cruz and Tarija, working under the Organic denomination with a commerce focused on fair prices and with the potential of selling under the Fair Trade Certification. In 2011, as a whole they exported almost USD500 million of their production. Besides, there were born some associations of little producers of handicrafts, alpaca textiles and clothing and other organic products applying the principles of Fair Trade Certification. Bolivian Business Development Profile | 35 7 Useful Information 7.1 Visa applying Danish citizens do not need a visa to enter Bolivia as tourists. However, to be able to work in the country it is necessary to have a visa.3 Bolivian citizens need a visa to enter Denmark and other Schengen countries. 7.2 Trade Fairs Trade fairs as a promotional element are very common in Bolivia. Many of the businesses done in the country have been promoted into a trade fair. Some of the more important fairs in Bolivia are listed below: Fair EXPOCRUZ FEICOBOL FIPAZ EXPOSUR 3 Sector Live animals, food and beverages, manufacturing products, agricultural and industrial machinery, vehicles, cosmetics, furniture, construction and services Food and beverages, manufacturing products, industrial machinery, vehicles, cosmetics, furniture, and services Food and beverages, manufacturing products, vehicles, cosmetics, furniture and services Food and beverages and manufacturing products City Web Site Santa Cruz http://www.fexpocruz.com.bo/ Cochabamba http://www.feicobol.com.bo/ La Paz http://www.fipaz.com.bo/ Tarija http://www.exposur.tarija.gob. bo/ General Direction of Migration: http://www.migracion.gob.bo/web/ Bolivian Business Development Profile | 36 8 Contact A list of public and private institutions or associations, which can be useful in case of establishing businesses, dealing with procedures or getting information, is detailed below: Institution Web Site Ministry of Foreign Affairs http://www.rree.gob.bo/ Ministry of Economy and Public Finances http://www.economiayfinanzas.gob.bo/ Ministry of Agricultural Development and Grounds http://www.agrobolivia.gob.bo/ Ministry of Productive Development and Plural Economy http://www.produccion.gob.bo/ Ministry of Environment and Water http://www.mmaya.gob.bo/ Ministry of Labour and Social Prevision http://www.mintrabajo.gob.bo/Principal.asp Ministry of Inst. Transparency and Fight against Corruption http://www.transparencia.gob.bo/ Promueve Bolivia http://www.promueve.gob.bo/ National Service of Taxes (SIN) http://www.impuestos.gob.bo/ Central Bank of Bolivia (BCB) http://www.bcb.gob.bo/ National Customs of Bolivia (ANB) http://www.aduana.gob.bo/index2/index_direct o.htm Bolivian Institute of Normalization and Quality (IBNORCA) http://www.ibnorca.org/inicio/noticias National Service of Agricultural Sanity and Food Safety http://www.senasag.gob.bo/ National Service of Exports Verification (SENAVEX) http://www.senavex.gob.bo/ Bolivian Institute of Metrology (IBMETRO) http://www.ibmetro.gob.bo/ Register of Commerce (FUNDEMPRESA) http://www.fundempresa.org.bo/ National Chamber of Industries (CNI) http://www.bolivia-industry.com/aldia.php National Chamber of Commerce (CNC) http://www.boliviacomercio.org.bo/ National Chamber of Exporters (CANEB) http://www.caneb.org.bo/ Bolivian Institute of Foreign Trade (IBCE) http://www.ibce.org.bo/ Forestry Chamber of Bolivia (CFB) http://www.cfb.org.bo/CFBInicio/ Confederation of Private Entrepreneurs of Bolivia (CEPB) http://www.cepb.org.bo/ Agricultural Chamber of the Eastern (CAO) http://www.cao.org.bo/ Association of Producers of Oil seeds - Wheat (ANAPO) http://www.anapobolivia.org/ Official Tourism Web Site http://www.bolivia.travel/ Corporate Social Responsibility (CSR Bolivia) http://www.coborse.org/ http://www.rsebolivia.org/ Exclusively Bolivian (Potential Suppliers) http://www.exclusivamenteboliviano.com/ La Razón (Main Newspaper of La Paz) http://www.la-razon.com/ El Deber (Main Newspaper of Santa Cruz) http://www.eldeber.com.bo/ Los Tiempos (Main Newspaper of Cochabamba) http://www.lostiempos.com/ Official Site of Bolivian Legislation http://www.gacetaoficialdebolivia.gob.bo/ Bolivian Business Development Profile | 37