Traditionally, U.S. companies have proven successful in Ecuador. The country is a natural market for U.S. companies, as Ecuadorians have a high level of brand awareness and associate U.S. products with quality. Ecuador’s dollarized economy is also an advantage for U.S. businesses and investors.
Recent Ecuadorian administrations have adopted a pro-business, pro-trade agenda and have sought to reform many of the country’s protectionist economic and commercial policies. The Noboa government actively courts investors and has been receptive to making improvements to the country’s business climate, making it more attractive to U.S. businesses. Greater numbers of U.S. businesses have entered the Ecuadorian market in recent years, bringing positive practices with them.
Ecuador’s energy sector offers many opportunities. Ecuador seeks to increase electricity generation given its energy shortage and reliance on hydroelectric power. Significant opportunities exist for investments in baseload generation, especially with natural gas and renewables, as well as in power transmission and distribution. Ecuador has expressed interest in pursuing nuclear energy as well, which would provide opportunities for U.S. companies.
Ecuador has some of the most accessible and potentially lucrative extractive resources in Latin America. Petroleum deposits are conventional and stretch across the eastern provinces of Ecuador, with some limited offshore production. Commercial opportunities exist for U.S. oilfield service companies. The Ecuadorian government and state-owned Petroecuador, which operates 80 percent of Ecuador’s oilfields, seek private sector partners to increase production and identify additional reserves. Gold, silver, and copper deposits are located near the surface and the ore is high quality.
The services, infrastructure, and manufacturing sectors are ripe for investment. Road infrastructure is adequate, although secondary and tertiary road access needs improvement. Guayaquil is the country’s major port, and Ecuador boasts several international airports with connections to the United States and regionally. Ecuador’s diverse microclimates, location on the equator, and rich volcanic soil permit the cultivation of a wide variety of high-value agricultural products year-round, creating opportunities for suppliers of agricultural inputs and equipment. The banking system, while conservative in its lending practices, is well capitalized and liquid.
The Ecuadorian government is actively promoting large infrastructure projects as public-private partnerships (PPPs). These include the refurbishment of the largest oil refinery, development of renewable projects (wind, solar, hydroelectric, and biomass projects), electricity generation and transmission projects, ports and road construction, and other improvements. Opportunities exist for civil engineering services (e.g., PPP feasibility and design studies).
In the telecommunications sector, Ecuador will likely see small commercial deployments of 5G bands, although 4G remains the core technology for now. Both the government and the private sector are prioritizing rural connectivity. There are also opportunities for private networks, artificial intelligence, government automation, telehealth, online education, and cybersecurity applications.
There are significant Ecuadorian market opportunities for small-to-medium sized U.S. exporters across a range of products including in oil and mining equipment and machinery; renewable energy equipment and supplies; safety and security products targeted to commercial and residential markets; packaging machinery; environmental and waste management technologies; water resources equipment; medical equipment; and information technology and communications products and services. Franchising, brand licensing, and consumer products remain attractive sectors for U.S. companies.
The U.S. Trade and Development Agency (USTDA), the U.S. International Development Finance Corporation (DFC), and the Export Import Bank (EXIM) of the United States support U.S. companies in developing export markets and make inroads in key sectors such as renewable energy, telecommunications, transportation, and ports.