INVESTMENT OPPORTUNITIES

IN GUATEMALA
Taiwan, May 2013
REPUBLIC OF GUATEMALA
CAPITAL: 
Guatemala
AREA: 
108.889 Km2
AVERAGE TEMPERATURE: 
15°C – 25°C (59°F – 77°F)
POPULATION: 
15.073.375 inhabitants 
(projected 2012)
OFFICIAL LANGUAGE: 
Spanish
CURRENCY: 
El Quetzal
EXCHANGE RATE:  
US$ 1,00 = Q 7,84 (2013)
GDP per capita: 
US$ 3.330,3
WHY INVEST IN GUATEMALA?
1. Guatemala guarantees a safe and profitable
investment
AGENCIES

Jul-05

Jul-08

Jul-12

BB- (1)

BB+ (Stable)

BB+ (Stable)

MOODY'S

Ba2 (Stable)

Ba2 (Stable)

Ba1 (Stable)

S&P

BB-(Stable)

BB (Stable)

BB (Stable)

OCDE

FITCH

Fuente: Fitch, Moody’s, S&P, OCDE

Guatemala continues to work to improve the country risk ratings. In

recent years, the major rating agencies have kept Guatemala´s ratings
stable.
… Improving results in the Doing
Business Report 2013
DOING BUSINESS 
2013 RANKING

DOING BUSINESS 
2012 RANKING

RANKING
CHANGE

93

98

Improving in areas such as:
Main Issues
Dealing with Construction
Permits
Registering Property
Enforcing Contracts

Source: Doing Business 2012

DB 2013  DB 2012 
Ranking Ranking
94
20
96

146
22
98

RANKING
CHANGE
52
2
2
An exceptional growth of foreign direct investment
since 2009: 41% between 2009 and 2012
‐ in millions of US$ ‐

1,347.1
1,206.6
1,026.1
805.8

745.1 753.8
508.2

600.0

591.6

263.3 296.0

2003

2004

Source: BANGUAT
*Estimated

2005

2006

2007

2008

2009

2010

2011

2012 2013*
2. Government is firmly committed to
encouraging investment
Having incentives to promote foreign direct investment in the country such
as:
•

Law for Foreign Investments (Decree 9-98)

Law for Free Negotiation of Foreign Exchange (Decree 94-200)

Law for Free Trade Zones (Decree 65-89)

ZOLIC (Decree 22-73)

Law for The Development and Promotion of Export Activities and

Maquila – draw back - (Decree 29-89)

Public-Private Partnership Law (Decree 16 – 2010)

Free Trade Zones in Guatemala
Currently, Guatemala has 19 active zones and 8 pending start operations

2 Free Trade Zones in 
Puerto Barrios, Izabal
2  Free Trade 
Zones in San 
Marcos
2 Free Trade 
Zones in 
Escuintla

Source: MINECO

9 Free Trade Zones 
in the City
2 in Amatitlán
1 in Villa Nueva

1 Free Trade Zone in 
Santa Rosa
3. Excellent economic performance that
guarantees a competitive business climate
9 Guatemala represents 35% of the
region’s economy (US$ 50 of $145
Billion)
9 Moderate Fiscal Debt (2.6% of the GDP
estimated for 2012)
9 Important Monetary Reserves (US$ 7.3
billion - March 2013)
9 Stability: controlled inflation
9 Least indebted country in Latin America
(22.3% of the GDP)

Source : FMI / BANGUAT

35%

13%
17%

35%

11%
21%
5.8%
5%
27%

30%
Gross Domestic Product
6.3
5.4

One of the few Latin‐
American countries with 
positive growth after the 
economic crisis, and with an 
important recovery for 
2010. 

3.9

3.8
3.2

2.5

2.4

3.3

3.3
2.8

2.5

0.5

*Estimated
**Preliminary
Source: BANGUAT

3.5
GDP Diversification
11 Sectors with high 
productive potential

3%

MANUFACTURE

5% 2% 1%

PRIVATE SERVICES

18%

8%

TRADE
AGRICULTURE

11%

16%

HOUSING RENTS
TRANSPORTATION

10%
14%

12%

PUBLIC ADMINISTRATION
CONSTRUCTION
FINANCIAL INTERMEDIARIES
ELECTRICITY AND WATER
MINES AND QUARRIES

Source: BANGUAT
Fuente: BANGUAT
4. Guatemala is an export platform with
preferential access to the region
(in billions of  US$)
UNITED STATES

CENTRAL AMERICA

EUROZONE

Exports have almost 
tripled over the last 11 
years

REST OF WORLD
2.3
0.7
3.1

0.5
0.3
0.9
1.0

4.4

2000

2011
TOTAL EXPORTS: US$ 
10,1 BILLIONS (2012)

Source: BANGUAT
Guatemala: Trade Balance
‐ in billions of US$ ‐
EXPORTS

IMPORTS
16.6
13.6

11.9

14.5

10.5
7.7

4.2

2002

8.1

4.5

2003

Source: BANGUAT

13.8
10.5

11.5

9.5

10.1

7.7
5.0

2004

5.4

2005

6.0

16.9

6.9

8.5
7.2

2006

2007

2008
2009

2010

2011

2012
Free Trade Agreements

Active: DR-CAFTA,
Central America, Colombia,
Mexico, Panama, Taiwan,
Dominican Republic, Chile,
Customs Union with El
Salvador

In process of approval:
Association Agreement with
the European Union

In negotiation: Canada,
Peru, Ecuador, Trinidad and
Tobago.
Investment agreements worldwide
`
`
`
`
`
`
`
`
`

France
Germany
Argentina
Austria*
Belgium Luxembourg
Chile
Korea
Cuba
Spain

`
`
`
`
`
`
`
`

Finland
Israel
Italy
Netherlands
Czech Republic
Sweden
Switzerland
Taiwan
*Pending
Export platform…
•US$100 Million a year in Software and Visual Effects
• No. 1 Exporter of Snow Peas to the US.
• No. 1 Exporter of Cardamom in the world.
• No. 1 Exporter of Poinsettia cuttings in the world.
• No. 1 Supplier of Yamaha wooden keys and Gibson guitars
•No. 1 Supplier of manufactures for the Central American region.
•No. 1 Supplier of coffee for Starbucks Coffee y No. 3 Supplier for a Japan
•No. 1 in efficiency with regard to bulk sugar ports and No. 2 Exporter of sugar
at the Latin American level
•No 5 Exporter of bananas in the world
•Key US Market Position: 28% broccoli, 24% cauliflower y 21%snow
5. A privileged location, ideal for business
SOUTH OF MEXICO

•Economy: US$ 184 Bill
•Population: 28 Mill
•Tourism: 10 Mill

MESOAMERICA
Economy: 
US$ 319 Billion 
Population:
68 Million 
Tourism:
18 Million 

CENTRAL AMERICA
•Economy: US$ 135 Bill
•Population: 40 Million
•Tourism:  8 Million
Flight times

Chicago4
h 10

NY       
4h 30
Miami 2h 
50
Panama 
2h 15

More than 160 weekly 
flights, with direct 
connections to 6 different 
cities in USA, Mexico, 
Central America, Peru and 
Spain. 
Airport system
• 2 International airports
network of 17 local ones

and

• La Aurora International Airport:

9 Modernization and expansion plan
9 Category 1 according to FAA
9 Capable of receiving 4 million
passengers per year
9 160 weekly flights

Mundo Maya
Aeropuerto 
Internacional La 
Aurora

Projects to strengh airport system:

9 San José‐Escuintla Airfield
9 Puerto Barrios Airfield
9 Retalhuleu Airfield

9 Aeroméxico  and Delta will 
increase flights
9 LAN Chile – Hub  de Carga P.S.J.
Port system modernization
• Atlantic: Port Santo Tomas de Castilla and Puerto Barrios, located 297km
from Guatemala City
• Pacific: Quetzal Port is located 98km from Guatemala City.
• The two state ports (SantoTomas and Quetzal)
are certified BASC (Business Commerce 
Security Alliance) which is recognized by 
USA.
Guatemala: Foreign Trade 
Channels
SEA

LAND

AIR

297 Km

11%

26%
63%

98 Km
Source: Comisión 
Portuaria Nacional

Port  system projects: construction of a terminal for cruise 
ships in the Bay d Puerto Barrios –US$ 50 – 70 million
6.The human resource in the country is
ideal for optimal business performance
Guatemala: 
Percentage of Distribution of the Total Population 
by Gender.
According to quinquennal age groups. Year 2012

Men

80 y más

Women

•Young
Guatemalan
population: over 70% of the
population is less than 40
years

70‐74
60‐64
Age Groups

• Guatemala has the largest

population in Central America:
15,073,375 people (projected
2012).

50‐54
40‐44
30‐34
20‐24
10‐14
0‐ 4
‐20.0

Source: INE

‐15.0

‐10.0

‐5.0

0.0

5.0

10.0

15.0

•The education sector (public

and private) is very dynamic
and comprehensive, providing
a solid academic capacitation.
7. In Guatemala there are multiple areas of
development with investment opportunities
In Guatemala there are great opportunities in sectors such
as:
- Agribusiness Sector
- Apparel and Textile Sector
- Manufacture and Assembly Sector
- Call Centers & BPO Sector
- Tourism Sector
- Energy Sector
- Mining and Oil Sectors
Guatemala:
Great potential for agribusiness and
forestry
Agribusiness
`

SECTOR CARACTERISTICS
9 Variety of climates (more than 350 micro climates)
9 Proximity and easy access to major markets (USA, Mexico)
9 Available trained personnel
9 Competitive operating costs (sugar, agricultural products, labor): Guatemala is
one of the
leading sugar producers worldwide.

OPPORTUNITIES AREAS
9 Confectionary
9 Juices and beverages
9 Snacks
9 Fruits and vegetables
9 Hydrobiological
9 Producing biofuels from jatropha and African palm
Forestry potential
•
•
•
•

Forestry incentives program
Suitable environment
Technical capabilities and infrastructure
Cluster

Main Export Products

• Timber: 24%
• Furnitures: 21%
• Doors: 14%
Description

Hectares

Natural Forests

196.693,24

Plantations

92.402,70

Forest Concessions

482.983,00

Total

772,078.94

Total forest area:

` 82% hardwood forest
` 10% coniferous forest
` 8% mixed forest
Source: Cluster Forestal Guatemala

Forestry Sector
Forestry exports of Guatemala
An apparel and textile
industry booming
Apparel and textile industry continues to be
an engine for the Guatemalan economy
`

As an economic activity, the apparel and textile

industry accounts for 4% of domestic production
(GDP) and 19% of industrial (industrial GDP).

This sector includes 140 companies in apparel, 41 in

textile, 260 companies of accessories and services.
Altogether generate over 90,000 direct and indirect
jobs, of which 46% are women.

Source: VESTEX
Apparel and Textile Sector

Origin of capital invested in the 
textile sector in Guatemala
Some global brands manufactured in
Guatemala are:

Among othres…
Fuente: VESTEX
Guatemala:
Potential to do business with companies in
light manufacturing and assembly
Light Manufacturing
STRATEGIC SUB-SECTORS:
`

Electronic assembly

Auto parts

Medical Devices

Other manufactures: software, plastics, chemical products, rubber materials, iron

and steel products
- Products and Services of SOFTWARE DEVELOPMENT offered 18
categories and 21 national and international companies.
Guatemala:
Infrastructure and connectivity for
world class operations
Contact Centers & BPO
•

Privatization and Openness of markets

9 Built Capacity to STM64
9 lowest rates in the region

Redundancy and Uptime

9 3 submarine cables, 2 land cables
(Arcos, Emergia, Maya)
9 Guatemala City: 25+ fiber optic rings
9 99.98 % redundancy(SLA)

Dynamic and competitive sector :

9 Markets served: United States, Central 
America, Mexico, Spain and France
9 More than 18.000 agents, with about
70 call centers in English, Spanish,
Portuguese, French and German

Guatemala has one of 
the major 
telecommunications 
network and optical 
fiber in the region.
Telecommunications
• Favorable legal framework for
investment:
9Telecommunications law is one of the most
flexible in Latin America.
9One of the most competitive markets in Latin
America.
9Strong redundancy: 99.98% (SLA)

• Steady increase in coverage

9500,000 (1995) to 20,7 million (2012)
9Mobile: 65% annual growth vs. 45% Latin
America average

The sector has 
invested US$300 
per year during 
the past 10 years
1st. place in 
Central America
Guatemala:
a country with tourism potential
Tourist Arrivals and Receipts
TOURISTS

1,502,069
1,181,526

RECEIPTS (in thousand US$)

1,627,551

1,875,777 1,822,663
1,776,868
1,715,426

1,418,900
1,378,000

1,315,646

1,199,400 1,275,600 1,298,000

880,223
770,100

1,951,173

1,350,200

868,800 1,012,700

599,700

2003

Source: INGUAT

2004

2005

2006

2007

2008

2009

2010

2011

2012
Main Reasons to Visit Guatemala 2011

Guatemala has experienced an

average annual growth in the
number of tourists of 8.8% during
the last years, with an occupancy
growth rate of 2.5% during the
same period which does not meet
the tourist demand capacity.

Family Visit /
Friends

16%
24%

Work / Business
Tourism
19%

41%

Others

Source: INGUAT

Room Supply and Tourism Demands
2,000,000

50,000

1,500,000

40,000
30,000

1,000,000

20,000

500,000

10,000

0
2003

Source: INGUAT

2004

2005

2006

2007
2008

2009

2010

2011

TOURISTS
ROOMS
Guatemala:
Mesoamerican Energetic Center
SECTOR
PLAN

ENERGY MATRIX
3% 0%
11%

HIDRAULIC
BUNKER

11%

BIOMASS

YEAR 2012

51%

COAL
GEOTHERMAL

24%

DIESEL OIL

A
CHALLENGE
0% 0%
7%

HIDRAULIC

5%

COAL

8%

YEAR 2027

LNG IMPORTS
46%

8%

BIOMASS
GEOTHERMAL
BUNKER
OTHER RENEWABLES

26%

DIESEL OIL
Guatemala: great energetic potential
Investment Potential: more than US$ 6 millions
200 MW in construction
800 Km in construction for transmission system

Hydroelectric

• Potential 10,000 MW
• 6% used

Geothermal

• Potential 10,000 MW
• 2.65% used

Eolic

• Potential 25,040 MW
• 0% used

Solar

• 5-6.5 Kwh per square meter per day

• 0% used

Biomass

• Potencial no disponible
• 187.8 MW used
The enery sector has a great potential and it is 
recognized internationally
•

Modern legal framework to foster investments:
9 General Electricity Law.
9 75%  of generation from private investors

From 1995 to 2015 the energetic offer will triple
9 Total: 700 MW (1995) to 2,300MW (2015)
9 More than 90% of new projects will produce energy from renewable 
sources

High potential for renewable energy exploitation, over 40 power generation 
companies are present in Guatemala
Energetic center interconnected with the 
region
KM
1.240,0
286,0
270,0
310,0
493,0
150,0
2.749,0

GUATEMALA
EL SALVADOR
HONDURAS
NICARAGUA
COSTA RICA
PANAMÁ
TOTAL

Santa Elena

Belice City

Tapachula

Pepesca

Río Lindo
El Cajón

Los Brillantes

Suyapa
Ahuachapan

•
•
•
•
•

Nejapa
Pavana

15 de setiembre

SIEPAC
Interconnection Guatemala – Mexico 200 MW
Interconnection Guatemala – Belize 50MW
Interconnection Guatemala-Salvador 200MW
Geothermal Potential 200 MW

León
Guate
Ticuantepe

Cañas
Parrita
Río Claro
Veladero
Guatemala:
Mining and oil potential sectors
Petroleum & Natural Gas
Xan field: 35 oil wells in production

CUENCA DE PETEN
Norte

540 million bbls in reserve
This basin has more than 
10,000 ft deep, associated with 
the presence of natural gas

Current government's interest to advance the 
bidding : 9 areas in Peten, and three in the 
Pacific zone , for increase the production to  
60.000 barrels per day between 2012 ‐ 2016

CUENCA DE PETEN
Sur
CUENCA DE
AMATIQUE

CUENCA DEL
PACIFICO
We are a country with a 
great mining potential
New opportunities
Minas Ixtahuacán
Gold/ silver

Marlin
Gold/ silver
Progreso VII
Cement
El Sastre
Cement
Oasis
Gold /Silver
El Pato
Gold / Silver
Cerro Blanco
Gold / Silver
Mayaniquel
Nickel

Fénix
Nickel

Montufar
Nickel 

Operating mines 
Important Projects without 
exploitation       
Medium projects not operating

•
In the next decade, mining and petroleum sector have
the potential to generate more than $6.000 million

+4 Gold and Silver Mines 
Marlin size(Cerro Blanco JU y El 
Escobal, Marlin ampliation, 2 more) 

6 petroleum concessions, to 
generate 75.000 barrels by day 
in 2019. US$2.900M 

Investment: US$2.200Million
2012‐2018

Average investment US$ 30M for each 
1,000B/d in explotation and US$3,5M 
en exploration. Time  2012‐2020

+2 Nickel mines (CGN, 
Mayaniquel)
Investment US$2.000Million  
2009‐2018
APP
s

PPP Project Portfolio
Estimated values and date of tender launch
Values in US$ Million

2013
Esc -Pto Quetzal
$15

Highway

Public
Transport

Airport

2015

AtlanticPacific
circumvallation
$35

Atlantic- Pacific
Railway $400

Champerico, Fishing
Port Tourism Complex,
30 years) $20

Rail

Port

2014

Urban Train (city,

1 line -26 Kms, 30
years) $70
St. Tomas (Dry Bulk in the
Atlantic – 2M
Tonnes/year, 20 years)
$25

Waste
Treatment
$55

Metropolitan
Rapid Transit
and highway
$800
St. Tomas Container
and Tourism
$250

Pacific Airport
$40
Logistics
& Other

$50 Millon

Mexico and Esal Frontier

Logistic ports (dry portduty free - free trade
zones, 30 years) $25

US$ 65

Government Admin Complex

(modern and functional
infrastructure, 30 years) $135

US$ 1650
US$ 355

More info: www.agenciadealianzas.gob.gt

Julio Héctor Estrada
jhestrada@agenciadealianzas.gob.gt

Year
Law initiatives to promote competitiveness
3 new proposals already at the Congress
Promotion of Investment and Employment
- New investment
- Generation of formal employment in the rural area
- Income tax acreditation
- Harmonized with the WTO rules
Labor Inclussion
- Part time contracts
- Formal employment with salaries equivalent to minimum wage
- Applicable to new contracts
National System of Competitiveness and Productivity - PROGUATE
-Formal structure of the institutions responsible of competitiveness and
productivity of Guatemala: investment attraction, exports promotion,
country image
Law initiatives to promote
Law
initiatives to promote competitiveness
competitiveness
2 laws to be reformed
Secure Transactions Register
- e-registration
- Law cost
- Easy and fast execution
Industrial Property Law
- GI (Geographical Indications) and DO (Denominations of Origin) (local or
foreign)
- Protection under registry
Law initiatives to promote
Law
initiatives to promote competitiveness
competitiveness
4 laws already discussed at Congress
Factoring
- Financing costs reduction for MSMEs
- Agile financing procedures to develop productive activities
Legal Stability for Contracts
- Contracts between Government and investors
- Activities: agriculture, industry, tourism, mining, energy, hydric,
telecommunications, biotechnology, real state, among others.
- 3 – 10 years: fee applicable for current and/or future direct taxes
- Exceptions: social security, indirect taxes, environmental regulations,
financing regulations, public services fees
- Not for companies under 29-89 or 65-89 decrees
Law initiatives to promote
Law
initiatives to promote competitiveness
competitiveness
4 laws already discussed at Congress
Factoring
- Cost reduction for MSMEs
- Agile financing procedures
Legal Stability for Contracts
- Contracts between Government and investors
- Activities: agriculture, industry, tourism, mining, energy, hydric,
telecommunications, biotechnology, real state, among others.
- Investment over US$ 1 million
- 3 – 10 years: fee applicable for current and/or future direct taxes
- Exceptions: social security, indirect taxes, environmental regulations,
financing regulations, public services fees
- Not for companies under 29-89 or 65-89 decrees
- Investor under this type of contract shall pay a fee of 1% over the amount
of investment / year
Law initiatives to promote
Law
initiatives to promote competitiveness
competitiveness
4 laws already discussed at Congress
Societies of Reciprocal Guarantees
- Easy access to financing for MSMEs
- Self financing due to the productive activities of the society in benefit of
its members
Leasing
- Main beneficiaries: MSMEs
Foreign companies that have believed in 
Guatemala 
A land of opportunities

www.investmentsummitgt2013.com
www.investmentsummitgt2013.com
The most important investment event in the Central American region.
Organized by the Government of Guatemala and the business sector of the
country.

Unique opportunity for foreign and local investors to discuss investment

projects in different sectors:
Personalized business-meeting agenda
Well known key note speakers
Visits
Networking events
El evento de inversión más importante  en la región de Centro América.
Organizado por el Gobierno de Guatemala y el sector privado del país.

Oportunidad única para inversionistas locales e internacionales para discutir 
proyectos de inversión en diferentes sectores con trayectoria de éxito y nuevas áre
as 
de rápido crecimiento:
Agendas de citas de negocios personalizadas
Conferencias magistrales por reconocidos expertos
Visitas guiadas
Eventos de networking