Bolivia - Country Commercial Guide
Investment Climate Statement (ICS) 
Last published date:

The U.S. Department of State’s Investment Climate Statements provide information on the business climates of more than 170 economies and are prepared by economic officers stationed in embassies and posts around the world. They analyze a variety of economies that are or could be markets for U.S. businesses.  The Investment Climate Statements are also references for working with partner governments to create enabling business environments that are not only economically sound, but address issues of labor, human rights, responsible business conduct, and steps taken to combat corruption.  The reports cover topics including Openness to Investment, Legal and Regulatory Systems, Protection of Real and Intellectual Property Rights, Financial Sector, State-Owned Enterprises, Responsible Business Conduct, and Corruption. 

Executive Summary

In general, Bolivia is open to foreign direct investment (FDI).  In 2021, gross FDI flows received reached USD 440 million, higher than in 2020 when Bolivia registered a significant divestment of USD 1,018 million. FDI flows were greatest in the sectors of hydrocarbons, manufacturing, industry, and commerce, together representing over 80 percent of the total. Additional sectors receiving some FDI included the transport sector, storage and communications, insurance companies, and real estate services.

The year 2021 was economically characterized as a rebound after the effects of the COVID-19 pandemic in 2020, in which Gross Domestic Product (GDP) fell by 8.9 percent, the largest contraction in over 50 years. The leading sectors were mining, construction, and transport, registering double digit growth rates. International financial institutions estimated GDP growth between 5-5.5 percent for 2021. Bolivia was the fastest growing economy in the continent from 2014-2016 and in the top three until the start of the pandemic.

Bolivia abrogated the Bilateral Investment Treaties (BIT) it had with the United States and several other countries in 2012.  The Bolivian government claimed the abrogation was necessary for Bolivia to comply with the 2009 Constitution.  Companies that invested under the U.S. – Bolivia BIT will be covered by its terms until June 10, 2022, but investments made after June 10, 2012, are not covered.

Notwithstanding the uncertain political situation, Bolivia’s investment climate has remained relatively steady over the past several years.  Lack of legal security, corruption allegations, and unclear investment incentives are all impediments to investment in Bolivia.  There is no significant FDI from the United States in Bolivia, and there are no initiatives designed to encourage U.S. investment specifically.  Bolivia’s current macroeconomic stability, abundant natural resources, and strategic location in the heart of South America make it a prospective country for investment.

During the COVID-19 pandemic, the Bolivian government took several economic measures to support families, such as authorizing postponement in the payment of basic services (water, electricity, natural gas, telecommunications) and credit payment deferral for the private sector. These measures ended in 2021.

Bolivia’s Mother Earth Law stipulates climate change mitigation and adaptation. Bolivia last updated its Nationally Determined Contributions (NDC) for implementing the Paris Agreement in 2015. Bolivia does not have any regulatory “green” incentives for investment.

To access the ICS, please visit the U.S. Department of State’s website: