Pablo Zambrano Albuja, President, Chamber of Industries and Production (CIP)

• Interview

How is CIP supporting the birth of Ecuador’s mining industry?

Responsible mining will generate many opportunities in the shape of decent employment, investment, infrastructure, and collateral industry development. In 2018, USD742 million in FDI was invested in Ecuador’s mining sector. The sector represented more than 53% of the USD1.4 billion in FDI that Ecuador received in 2018. This is only the beginning, as the production of strategic projects has not yet begun. Mining currently represents approximately 8% of the total external debt, and this figure is set to increase as mining will represent 3-4% of Ecuador’s GDP by 2021. Moreover, promoting legal and formal practices will ensure that strategic projects benefitting Ecuador's development. In 2019, CIP welcomed its first affiliated company from the mining sector. Moving forward, the chamber will work with all stakeholders to make sure favorable conditions are in place for the emergence of an industry undoubtedly fundamental for Ecuador’s future.

Which labor and tax reforms will be advocated for in 2020?

Ecuador is currently ranked 90th in the Global Competitiveness Index, which shows we need to make improvements. We want Ecuador to become a strong and competitive nation that provides opportunities for all, and we must work together to achieve it. We need strong structural reforms to fix Ecuador’s fiscal deficit problem. In 2019, the fiscal deficit grew by USD3 billion, raising the total deficit over the last decade to USD35 billion. An adjustment of public expenditure is needed to transform our economy. We must discuss the currency exit tax (ISD) and have a less distorted tax system. Moreover, we must boost the labor market. We need to adopt new modalities such as teleworking and supporting entrepreneurs and new investments to create more opportunities for everyone. To that end, we are proposing a number of labor reforms. ✖