Bolivia: Investing

FDI in Figures

The foreign investment stock share of the GDP dropped despite an increase in FDI flow between 2005 and 2008, a trend which is expected to continue in the coming years.

The arrival into power of president Evo Morales in 2006 put an end to certain liberal policies and introduced restrictions and discrimination against foreign investors, a fact which has harmed the country’s appeal. In spite of a trade policy which is in contradiction with the State’s wish to attract FDI, the natural resources that the country enjoys provide investment opportunities (for example the extraction and transformation of hydrocarbons). Regions rich in natural resources are also areas of high conflict. In addition to this, it is important to keep in mind the strong dollarisation of the banking system, which can lead to a risk of liquidity. Only 6 banks detain 82% of the system's income.

The United States, Mercosur (The South American common market uniting Argentina, Brazil, Paraguay and Uruguay) and Chile are the main investors.

	Bolivia	Latin America & Caribbean	الولايات المتحدة	Germany
Index of Investor Protection	4.0	5.1	8.3	5.0

Source: Doing Business

Note: The Greater the Index, the Higher the Level of Investor Protection.

Foreign Direct Investment	2008	2009	2010
FDI Inward Flow (million USD)	513	423	622
FDI Stock (million USD)	5,998.0	6,421.0	6,869.1
Performance Index*, Ranking on 141 Economies	85	67	-
Potential Index**, Ranking on 141 Economies	90	-	-
Number of Greenfield Investments***	3.0	14.0	-
FDI Inwards (in % of GFCF****)	17.8	10.9	-
FDI Stock (in % of GDP)	36.0	37.0	-

Source: UNCTAD - Last Available Data

Note: * The UNCTAD Inward FDI Performance Index is Based on a Ratio of the Country's Share in Global FDI Inflows and its Share in Global GDP. ** The UNCTAD Inward FDI Potential Index is Based on 12 Economic and Structural Variables Such as GDP, Foreign Trade, FDI, Infrastructures, Energy Use, R&D, Education, Country Risk. *** Green Field Investments Are a Form of Foreign Direct Investment Where a Parent Company Starts a New Venture in a Foreign Country By Constructing New Operational Facilities From the Ground Up. **** Gross Fixed Capital Formation (GFCF) Measures the Value of Additions to Fixed Assets Purchased By Business, Government and Households Less Disposals of Fixed Assets Sold Off or Scrapped.

Tax Rates

VAT (IVA): 13%
Company Tax: 25%
Withholding Taxes: Dividends: 12.5%, Interest: 12.5%, Royalties: 12.5%
Bilateral Agreement: Bolivia and Egypt are not bound by a taxation agreement.
Social Security Contributions Paid By Employers: 13.7 %

Investment Opportunities

Tenders, Projects and Public Procurement: Inter-American Development Bank, Tenders in South America
DgMarket, Tenders Worldwide
Setting Up a Company: Consult Doing Business Website, to know about procedures to start a Business in Bolivia.
Useful Resources: The Bolivian Agency for the Promotion of Exports and Investment (CEPROBOL)
Egyptian Embassy in Bolivia
AVENIDA BALLIVIAN NO. 599 Esq.CALLE 12, LA PAZ
Phone: (+5912)2786511
Fax: (+5912)2784325
Contact the Embassy via Email.
Embassy of Bolivia in Egypt
No 5 Dar El Shefa St. 2nd. Floor, Apt. 21 P.P. Box 182
Apt. 21 P.P. Box 182
Dawawin Garden City
Cairo
Phone: (20)(2) 355-0917
Fax: 354-8643 or 354-3422
Contact the Embassy via Email

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