Peru has an open investment regime and a legal framework that generally promotes and protects Foreign Direct Investment (FDI).
After registering FDI inflows of US$11,656 million in 2022, Peru captured US$5,007 million in the first three quarters of 2023.
In recent years, this nation had negative FDI inflows of $417 million in 2020 and a peak of $13.622 billion in 2012.
The basis for this open investment regime was established in 1991 through the Foreign Investment Promotion Law and the Private Investment Growth Framework Law, as amended.
However, in April 2002, the government created Proinversion, an agency that promotes and facilitates private investment in the country.
ProInversion’s specific functions include identifying and promoting investment opportunities, preparing feasibility studies, organizing bidding processes, and facilitating dialogue between investors and the government.
The agency also works on improving the investment climate and simplifying procedures to efficiently attract investment.
Foreign Direct Investment
In 2022, the uptake of these flows increased as a result of higher reinvestments of profits (due to lower dividend distributions as a result of lower annual earnings) and capital contributions (mainly those of Newmont Corporation to increase its shareholding in Minera Yanacocha).
Mining investments decreased due to the absence of new large projects in this sector, as well as the start of operations of Quellaveco.
Mining
Investment in non-mining sectors was driven by large infrastructure projects such as the Chancay Phase 1 Port Terminal, Lima Metro Line 2, and the Trujillo-Sullana Autopista del Sol, among others.
At the company level, the following investments stand out: Yanacocha increased its annual investment by US$254 million, mainly for its Acumulación Chaquicocha concession; Minsur increased its investment by US$85 million, mainly for mining equipment; and Cerro Verde increased its investments by US$61 million, for infrastructure, a processing plant and mining equipment.