4 recommendations to maintain foreign investment growth in Peru in a context of crisis

In any type of investment, guarantees are key to retain and expand long-term flows

There are currently 209 social conflicts in this country, according to data provided by the Ombudsman’s Office. Our team’s opinion in this regard is that “these conflicts generate that foreign investment does not advance and sectors such as mining paralyze their activities”. They also adds that “these social conflicts will reduce the value of mining exports by US $650 million in 2022, according to estimates by Apoyo Consultores, which would mean that the State will lose US $280 million, according to the National Society of Mining, Petroleum and Energy (SNMPE)”.

Foreign investment in Peru at the XIII Latin American Legal Forum

As a preview, we offer four recommendations that will help maintain investment in Peru in a context of crisis and that will be analyzed in the next Legal Forum:

1. To face any perception of uncertainty: any company should present a report with the probable risks and how it would successfully face them in its financial operations. To manage these aspects, adds Murillo, it is necessary to know the legal aspects regarding commercial agreements, international corporate finance, accounting and budgeting, among others.
2. Offer sustainable solutions: urgent measures must be taken to guarantee an adequate investment climate and thus offer sustainable and timely solutions to social conflicts.
3. Provide guarantees: in any type of investment, guarantees are key for retaining and expanding long-term flows. To this end, it is important to explain and provide legal protections that are included in the investment process.
4. Demonstrate the positive impact on the country’s economic development: it is necessary for the country’s citizens to have real knowledge about private investment, since in many cases the lack of knowledge generates unfounded protests.