If you have ever been to Baja California Sur you might have noticed that the sun shines most days. Understanding the necessity of developing clean energy into the 21st century, a 247 acre plant has recently opened in the capital city of La Paz that will service the electric needs to 164,000 residents, or 64% of the La Paz population. Country-wide, 25% of Mexico’s electricity is currently supplied by clean energy sources, and will increase in the coming years. An abundant, cheap source of energy is a key ingredient to spurring the economy, including tourism. Read here for the full story http://www.banderasnews.com/1404/nr-powerplantgoesonlineinmexico.htm
The has been a lot of controversy about Congress voting to allow private investment in Mexico’s oil production, not the least being the fear that Mexico will lose a piece of its independence and control over its own resources. But the legislation could also affect how Mexico supplies electricity, which means a boost for Green Energy. Here is a good summary on how this will happen http://fuelfix.com/blog/2014/03/02/mexico-energy-overhaul-could-renew-interest-in-green-power/
Cisco Systems, Nestlé and PepsiCo informed President Enrique Peña Nieto of their planned investments in Mexico, which together total $7.35 billion USD.
In separate speeches, President Peña Nieto thanked the companies for their confidence in Mexico. “I think that in the context of Mexico’s participation in the World Economic Forum in Davos, it is very encouraging to see the enthusiasm elicited by our country because of the structural changes it is implementing, the platform being built to boost economic growth and the social development of our country,” he declared.
He hailed the fact that the structural changes and public policy Mexico has adopted to boost economic growth also encourage productive investment for our country, “And that they will contribute to the economic development of our nation, and especially to creating jobs for Mexicans.”
President and CEO of PepsiCo Indra Nooyi announced that over the next few years, Pepsico will assign an investment of five billion dollars to areas of innovation, infrastructure, agriculture and community care, which is expected to generate approximately four thousand jobs.
“This investment demonstrates our confidence in your presidency and your cabinet, Mr. President, and I hope that we will be able to grow in Mexico, with Mexico and for Mexico,” she told the president.
For his part, CEO of Cisco Systems John Chambers announced that this company will invest $1,35 billion USD in Mexico, which will create approximately 900 jobs for Mexico in the field of manufacturing, sales, maintenance and informatics and telecommunications equipment consultancy.
“Cisco can be your partner in achieving the economic goals you have set,” he told President Peña Nieto.
Nestlé CEO Paul Bulcke announced that this company, with operations in Mexico since 1930, will invest a billion dollars in the country, with the aim of increasing its production and infrastructure capacity.
He said that a large portion of the investment will be assigned to the construction of two new factories: a children’s food factory in Ocotlán, Jalisco, and a pet food facility in Silao, Guanajuato. They will also expand their cereal factory in Lagos de Moreno, Jalisco, which, together with other facilities, will have greater capacity and technology.
That will allow us to create 700 direct jobs, plus 3,500 indirect jobs,” he explained.
“He declared that although they have invested steadily in Mexico, they have not built completely new factories since 1992. Mexico is Nestlé’s second largest market in Latin America and its sixth largest worldwide.
From President Nieto’s Office
Business tourism is a form of tourism in which the reason for travel is linked to carrying out work and professional activities undertaken at business meetings and on different scales (congresses, conventions, incentive trips, fairs and exhibitions).
Through fairs held in Mexico, business tourism generates annual sales of $6.2 billion USD.
Last year, in coordination with the Mexican Association of Fairs, AMEREF, this activity generated 151,100 jobs, of which 85,000 are direct and 66,000 indirect.
The government is seeking to position Mexico as a worldwide destination of excellence for business tourism , for which it is essential to offer quality services and tourism products that will enable it to compete in national and international markets.
Investment is a key trigger of growth and employment and a powerful engine of economic development.
Earlier today, at the Official Residence of Los Pinos, we shared the good news that proves the strength, dynamism and competitiveness of the domestic auto industry.
By this I mean the $691 million USD that General Motors will invest in our country in high-tech projects.
With this infusion of funds, General Motors will build a new transmission plant at its complex in Silao, Guanajuato, expand the plant it opened last year in San Luis Potosi and consolidate its complex in Toluca.
To achieve the Prosperous Mexico we want to build, our country now has a strong automotive sector. Mexico is the world’s 8th largest producer and 4th largest exporter of new cars.
As President, I confirm my commitment to consolidating Mexico as a world power in the production and export of automobiles and auto parts, and I congratulate General Motors on its decision to continue grow alongside Mexico. Congratulations!
Newly-elected Mexican president Enrique Pena Nieto campaigned on the promise to open up oil exploration to foreign and private companies. Pemex, the state owned oil monopoly, has controlled all petroleum-related activities in Mexico since the expropriation of all oil reserves and foreign oil companies in 1938. It has been a major source of income for the government for decades, and a matter of pride to many millions of Mexicans. There are also constitutional issues that could prevent this from taking place, so the courts will also be involved.
If Pena is able to push this through Congress it is sure to be protested by many. There is no argument that oil production has been in decline for nearly a decade, and that the government (Pemex) doesn’t seem to have the funds available to do what is necessary to remedy that. But does the country really want to lose their identity and autonomy, for which there is such pride? Stay tuned to this story – it will have a major impact on Mexico in the coming years
We see it every time we are in Mexico; families traveling, filling the shopping malls, dining out – all the signs of a growing middle-class. Why don’t we hear more about this in the media instead of the cartel drumbeat? Thank you Forbes Magazine for this right-on perspective with facts to support it.