Market challenges for businesses in Bolivia have historically included an oversized bureaucracy, lack of transparency, and significant costs and delays in company formation, which may be further complicated depending on the sector of operation. Additional challenges include the high level of economic informality (estimated to be over 80 percent of total economic activity) and frequent social unrest such as road blockages. Moreover, the legal framework presents significant challenges, with outdated or inconsistent regulations – including the Labor Law, Commercial Code, Investment Law, Hydrocarbons Law, and Mining Law – that require reform to address legal gaps and modernize the business environment. The Paz administration has pledged to address many of these challenges to incentivize trade and investment and decrease bureaucratic hurdles to economic growth.
Bolivia’s digital economy has made progress in e-commerce, digital payment methods, fintech, virtual assets, and the development of apps that integrate multiple services. However, it faces significant challenges including limited infrastructure, connectivity and digital skills gaps, an insufficient regulatory framework, and high economic informality, which hinder full participation and the formalization of digital businesses. A notable limitation is the absence of global digital payment platforms such as PayPal due to regulatory and market constraints. With appropriate public policies, investment in infrastructure, and digital education, opportunities in the sector can improve. The Paz administration is expected to prioritize digital economy initiatives.