Proposal for Investment Legislation in Bolivia
By PPO Abogados
The proposed Law for the Promotion, Protection, and Legal Stability of Private Investment is designed to align with global standards while addressing Bolivia's specific needs. The draft is up for consideration by Bolivian society, political institutions, economic and social organizations, media, and the general public.
It was elaborated by Fundación Milenio, dedicated to study investment issues in Bolivia, after an analysis which reveals barriers hindering investment in Bolivia, such as legal insecurity, political uncertainty, flawed regulations, excessive taxes, and inadequate incentives.
The legislative project looks to overcome these obstacles, aiming to boost private investment and make Bolivia attractive to both foreign and national capital.
Among the leading sectors in Bolivia are energy (mainly fossil fuels), which is Bolivia’s historical main revenue source. However, for the first time in 20 years, Bolivia has become a net importer of fuel and has struggled to meet its commitments for natural gas exports.
Other key sectors for investment include environmental technologies, automotive, healthcare technologies, and the food and agriculture value chain. Agriculture is a growing sector in Bolivia, with 2022 exports increasing by 27 percent from 2021 and more than doubling since 2020.