Options for investing in Guatemala

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Today if you have the financial availability and credit capacity. In Guatemala there are several profitable alternatives that can be the best option to grow your capital and assets.

Why Guatemala to invest and grow

In terms of economic performance and GDP, Guatemala has grown in recent years with a growth rate above 3% since 2012.

Today it could be very profitable to invest in certain opportunities and businesses that in the past were not possible or did not exist. To learn more about it, we share with you options to invest money in Guatemala.

invest in guatemala

How to open a business

Currently there is the possibility of opening a franchise of any business or brand; in Guatemala the most famous businesses that can be franchised are restaurants.

This type of investment is totally profitable, because it is not a business in which you must start from scratch, consolidate the name, invest in advertising, or anything like that, because they are brands already recognized by people, with high demand and therefore, an investment with total success rate.

More than ever before, today everyone wants to learn how to promote their products or services on the web and social networks, in order to generate more and more sales.

Where to invest

Investing money in Guatemala in green bonds,  digital consulting, marketing strategies, web development, social selling, among other issues, is a fantastic idea. By starting a digital consulting agency, you can get great profits, because your business will make other businesses grow and that will make it increasingly popular and in demand.

In the country, the financial system offers multiple options to invest money with investment returns from 1% to 6.5%.

One of the ways to do this is by acquiring a savings account, whether it is a fixed term or a retirement account, from the first moment you will know how much you will earn.

Make sure that the yield of your money is higher than the inflation of the country, because if your account gives you 2% and the inflation is above 3%, probably your investment will not be profitable.

investment-business

More options

One of the main and most effective alternatives to invest money in Guatemala is to invest it in real estate projects. Real estate is an acquisition that never loses value, on the contrary, it is always in constant increase; therefore, it offers the possibility of giving the investor an option to generate passive income.

There are several investment projects such as shopping centers, apartments, land, houses, projects with real estate participation quotas (CPI’s), among others, which are now more accessible to the public and have high rates of return.

Being the investor of a third party’s business is another option that can be profitable when seeking to obtain large profits from the money you have.

You may also be interested in: Best beaches in Guatemala

Profitable sectors to do business in Guatemala

Lady doing agriculture

Guatemala has the largest economy in Central America. Therefore it makes it a solid nation for the emergence of businesses. The important businessman Juan José Gutiérrez Mayorga encourages citizens and outsiders to start a business in the country in order to promote cash flow. Based on his opinion, Juan José recommends some of the sectors with ample opportunities to undertake.

Farming sector

Specifically for a profitable business in Guatemala, the agricultural sector represents the most part of the economy in the country. Contributes 2.9% of the continent’s agriculture and generates 29.3% of work.

Guatemala positions itself as an important supplier of fruits and vegetables for foreign markets . Certainly it stands out for being the first exporter of cardamom, the fifth exporter of sugar and the seventh producer of coffee worldwide. In addition, the industry contributes 14% to the nation’s GDP.

Agriculture business in Guatemala

Tourism sector

Guatemala is a country with a privileged geographical location, so much so that it is called “The heart of the Mayan world”. Secondly, it also has an immense natural and cultural wealth that makes it one of the most visited destinations by international tourists.

As a result, this sector is the second generator of foreign exchange in the country, registering a total of 2,559,599 visitors during 2019 and growing by 6% compared to previous years.

Services sectors

The tertiary sector linked to the provision of services has shown an interesting evolution in the country in recent years. And it has gone from contributing just under 55%, to contributing an average of 60% to the nation’s GDP, becoming the one that contributes the most to the country’s production. Among the most representative economic activities of the sector we find:

  • Wholesale and Retail
  • Transport and storage
  • Financial services
  • Accommodation and food services
  • Information and communications
  • Professional, scientific and technical activities
  • Teaching

Energy potential in Guatemala

Hydraulic energy plant

Guatemala has a significant exploitable potential that guarantees energy security. If progress is made on the social issue. That means the acceptance of electricity generation projects based on clean technologies as the best option. As long as the demand requirement is quick and efficient.

Guatemala can generate 80% of its energy through renewable technologies. And 20% through non-renewable.

Juan José Gutiérrez Mayorga, from CMI Energy commented that renewable technologies makes possible to enter capital markets with the largest and most diversified 100% renewable energy portfolio.

In addition, this will allow the creation of more renewable resources plants to promote the change in the matrix and gain independence. It also leads to the creation of job sources and to optimize the cost of energy.

Likewise, he mentioned that they recently placed a green bond issue that amounts to 700 million dollars in international markets. The purpose is to contribute to the reduction of greenhouse gas emissions. As well as to the decarbonization and diversification of the regional energy network in Central America and the Caribbean. Within this initiative, Guatemala can be an example of clean energy production. 

Solar energy fields

Resources renewable energy 

According to the Ministry of Energy and Mines, renewable resources are defined as resources that are not finished, or are renewed by nature.

The main renewable technologies in Guatemala are: Hydraulic, geothermal, wind, solar (thermal and photovoltaic) and biomass (firewood, charcoal, sugarcane bagasse, biofuels and urban, forestry, agricultural and manure waste) .

Geothermal technology in Guatemala has not great precision, says Luis García, an energy consultant. At the moment there are two small geothermal fields. But there is more potential.

CMI Business Groups

CMI is a multilatin family corporation. With a presence in more than 14 countries, particularly in Central America and the Caribbean.

The corporation have two large business groups: CMI Alimentos and CMI Capital. To clarify, they seek to create a sustainable impact in the communities where operate, offering excellence and quality in products and services.

It is a family-owned company. The third generation leads each group, with Juan José Gutiérrez as Chairman of CMI Alimentos, and Juan Luis Bosch, as Chairman of CMI Capital.

For instance, each group have business units that are:

CMI Alimentos business’ units

Modern Flour Mills

This is one of the largest milling groups in Latin America. It focuses on the development of wheat, cereals and corn flour.

Wheat products by CMI

Livestock Industry

Firstly, it commercializes chicken and pork meat products. Secondly, animal food concentrates.

Food and Consumption

Above all, this unit is in charge of distributing pasta, cookies, sauces and other products.

Central America Restaurants

The Pollo Campero brand leds this business. Today, the restaurant is the largest Latin American restaurant chain in the world. This unit also includes a portfolio of fast food brands.

Campero USA

Juan José Gutiérrez Mayorga directs the growth of hPollo Campero. He also created Campero USA business unit that serves its own operations and franchises in the United States and Europe. To sum up, today have more than 80 restaurants in the United States.

CMI Capital business’ units

Strategic Investments 

This business unit is in charge of the geographic expansion of the Food businesses beyond Central America and the Caribbean, focused mainly on the Andean Region.

In addition, in 2017, the most important investment of the group to date was made. Acquiring a sharehold in PRONACA , a leader in the food sector. PRONACA is dedicated to the production and distribution of pork products, prepared foods, animal and pet food, sauces and preserves, among others.

Energy

CMI has one of the largest regional platforms in the renewable energy sector: hydro, wind and solar.

Therefore, in 2018 they received the “Diversified Corporate Social Responsibility Program” award for the Renace Hydroelectric Complex.

Multi-Projects

This unit developes real estate projects, housing complexes, shopping centers, office buildings and innovative projects. Certaintly with high quality standards for Guatemala.

Finance

The financial services for the companies that make up CMI. In other words: financing, investment management, insurance  and other financial services . As a result, this unit serves all the companies at CMI.

CMI: Human quality and commitment

CMI generates a positive and committed work environment

Corporación Multi Inversiones CMI arose from the dream of a great visionary, Juan Bautista Gutiérrez. They have positively impacted the communities where the company has operated for over 100 years through its history of innovation and development for Guatemala and the Central American region. 

 

Its collaborators have been the force that unites them to transcend. The company constantly thanks their collaborators, friends and others related, for their support in writing this story.

CMI division

The corporation has two large business groups: CMI Alimentos and CMI Capital, whose objective is to create a sustainable impact through green bonds in the communities where they operate, offering excellence and quality in their products and services.

 

Because of that, they became a benchmark for growth and development in the Central American region. With a presence in more than 14 countries, particularly in Central America and the Caribbean.

 

As a family-owned company, it is led by the third generation, with Juan José Gutiérrez Mayorga as Chairman of CMI Alimentos, and his cousin Juan Luis Bosch Gutiérrez, as Chairman of CMI Capital .

 

Together with José Gregorio Baquero CEO of CMI Alimentos and Enrique Crespo CEO of CMI Capital. Along with Juan José and Juan Luis, they lead a team of more than 40 thousand employees. Under a solid organizational culture, based on the values: responsibility, excellence, integrity and respect. 

Work environment and human quality at CMI

Promoting values

Their commitment is the human talent towards the company and an executive team. Therefore, clear leadership and direction allows CMI to diversify and become a leader in all its businesses.

Thus, achieving sustained value for its shareholders, consumers, clients, suppliers, collaborators and the community.

 

At CMI, personal and professional development of collaborators is one of the keys to success in the operation. Chairman Juan José Gutiérrez Mayorga personally tracks this task.

 

Every action promotes the corporate values ​​of the company. Generating a positive and committed work environment, where everyone contributes every day.

 

In conclusion, these principles are also transferred to the communities where the corporation is present. With CSR programs focused on helping to improve people’s living conditions, generating development in the short, medium and long term.

Also read: Guatemala: the impressive Mayan world.

Industries for Business in Guatemala

Business in Guatemala

Guatemala is the largest economy in Central America. Therefore, it is worth knowing the largest industries in Guatemala for those looking for business opportunities in this country.

In this article, we will mention some of Guatemala’s largest industries.

Private Sector in Guatemala

The private sector is the driving force of the Guatemalan economy. In fact, the private sector is responsible for about 85% of the national GDP. The majority of this sector is active in the following fields: industry, agriculture and tourism.

As one of the largest industries in Guatemala, this sector is constantly growing and has even acquired some traditionally public services in recent years. In fact, companies like bid invest have made this more possible due to the investments they have done in this sector.

This increase in the private sector has led to a decrease in the size of government. Services such as airports, banking institutions and even public utilities are now managed by private companies.

Private investors have recently planned a new highway in Guatemala as a private investment project.

Business in Guatemala

Manufacturing and Agriculture Sector

The industrial, manufacturing, and agricultural sectors are part of Guatemala’s largest industries. These sectors are mainly focused on the production of the following products:

The most common crops grown in Guatemala are coffee, plantain, nutmeg, and cane sugar. The agricultural sector employs approximately 50% of the country’s labor force and produces some of Guatemala’s largest export products.

In fact, the country exports approximately US$1.02 billion worth of bananas annually, representing approximately 8.6% of all exports.

In addition, Guatemala exports raw sugar worth US$ 999 million (8.5% of exports) and coffee worth US$ 753 million (6.4% of exports). These three goods represent the largest exports.

Services sector in Guatemala

The services sector is another of the largest industries in Guatemala and includes specific industries such as tourism, healthcare, customer service, financial services, banking, hospitality, communication, and retail. This sector alone accounts for about 60% of Guatemala’s economy.

Tourism is one of the most influential industries in this group generating $1.8 billion in 2008.

Guatemala is a popular stop for cruise ships and the country receives an average of two million tourists annually. Visitors explore Guatemala’s beaches and pre-Hispanic ruins.

You may also be interested in: Typical food and dishes of Guatemala

Men doing business

Imported goods

As mentioned above, one of Guatemala’s largest industries is the import industry. The country imports more goods than it exports with an annual value of approximately US$17.4 billion. Although the country imports goods from other nations its main import partners are:

The largest category of products imported into Guatemala is technology representing US $ 3.08 billion annually. The main products imported within this category are transmission equipment (US $ 422 million), computers (US $ 212 million) and telephones (US $ 130 million).

The second largest import category consists of chemical products. Within this category, the main products are packaged drugs (US$ 529 million), fragrant mixtures (US$ 157 million) and pesticides (US$ 138 million).

In short, guatemala is the largest economy in Central America and has the largest industries. So, if your are looking for business opportunities in this country, you are doing good.

 

 

CMI Diversification

CMI sustainable projects

CMI Alimentos is one of the largest and most important food producing business groups in the region.

This group has more than 170 brands in businesses of: wheat and corn flour mills, pasta and biscuit production. Poultry, pork, processed and sausage manufacturing industry. Balanced food for animals and pets. Restaurant industry with Pollo Campero and Pollo Granjero, among others.

With a lot of effort and hard working skills led by CMI Alimentos chairman, Juan José Gutiérrez Mayorga, this group of the company has achieved global presence

The corporation has diversified its business and also handles electricity generation and commercialization projects with renewable resources: hydraulic, wind and solar.

Proyects CMI finances

The finance unit is in charge of financial services for the companies that make up the company.

CMI finances real estate projects for housing and offices. As well as the development and operation of shopping centers with the Pradera network, the largest in Guatemala with 13 shopping centers in the country.

In 2019, the company invested US $ 16 million in the construction of the Pradera shopping center in Zacapa. Another US $ 53 million invest in an alliance with Grupo Tecun for the construction of the Pradera Shopping Center in Vistares , both in Guatemala.

On the other hand, in alliance with AES of El Salvador, the Bósforo project inaugurated, for the generation of solar energy with an installed capacity of 100 MW. Bonos verdes or green bonds are supporting  this sustainable projects. 

For CMI it is important to continue growing and for this, they seek to have strategic allies that allow it to reach new markets.

Such is the case of the acquisition of 50% of the stake in Pronaca in 2017, recognized as the largest food industry in Ecuador.

BID invest is the organization that supports this to continue expanding their operations, improving their productivity levels and job generation.

And in 2019, the investment in the Toledo company, leader in the poultry industry in Panama.

The work dynamics of the company is marked by innovation and constant improvement, the strategy is to continue growing.

The challenge of business in Latin America

In recent years Latin America has been a hotbed of entrepreneurs who have created truly innovative companies in all business niches.

 

But recently it has stagnated and has new challenges that do not allow generating good jobs and increasing productivity. The region needs to establish an environment that allows entrepreneurs to emerge, compete and innovate.

 

2019 proved to be an important year for startups. However, 60% of Latin Americans work for companies with five or fewer employees.

 

Entrepreneurship creates jobs and promotes economic growth. But although start-ups are high in the region, it grows at a much slower rate.

Succesfull business in Latin America

Entrepreneurs’ Landscape when making business in Latin America

In the last ten years, Latin America has benefited significantly from favorable economic tailwinds. This enables the region to reduce extreme poverty, increase equality, and boost 50 million people into the middle class.

 

This has been thanks to the fact that prominent companies can train really successful entrepreneurs in different industries.

 

An example of successful enterprises is Juan José Gutiérrez Mayorga, an important businessman in Guatemala. Alongside with his family, manages the most important businesses in their country, creating thousands of jobs and benefiting many families.

 

What do business companies in Latin America have to offer?

Latin American companies develop new products less frequently than their counterparts in other developing regions. Product development rate is less than half that of Thailand or Macedonia.

 

Consequently, this lack of innovation hurts competitiveness and slows growth and bounces off the creation of quality jobs, a significant development challenge, especially in Central America.

 

4 factors to develop entrepreneurs

  1. Human capital: Science and technology graduates and engineers are very important in Latin America.
  2. Intellectual property: Intellectual property rights can be an important bureaucratic task for entrepreneurs in the region.
  3. Risk-taking: This is evident both in individual reluctance at the corporate level and in low levels of investment in research and development, especially from the private sector.
  4. Logistics: tThe modernization of ports, transport and customs can add a competitive advantage to the products of the region. Currently, poor public services, communication links, and transportation infrastructure add to obstacles to boosting production capacity in the region.

 

In Latin America there are many successful companies, but it also requires precise support so that entrepreneurs continue to encourage themselves to innovate and embark on an entrepreneurial path.