Regulatory delays, a lack of administrative simplification, and insufficient energy infrastructure in the Yucatán Peninsula are causing a decline in Foreign Direct Investment (FDI) in the region. México Evalúa has called for these processes to be expedited.
In presenting the study, “Breaking Down Barriers! How to Unleash Investment in Mexico: The Yucatán Case,” the organization identified 295 opportunities for regulatory improvement in the state, more than 85 percent of which stem from government and bureaucratic inefficiencies.
According to the report, regulatory delays and a lack of administrative simplification can represent an opportunity cost of over 545,000 pesos for a single company seeking to establish operations in the state capital.
The analysis warns that energy competitiveness will be the decisive factor for the region’s industrial development, given that the Yucatán Peninsula currently produces only about 60 percent of the electricity it consumes.
The organization stated that this deficit is placing increasing pressure on the transmission and distribution networks in the face of demand from the manufacturing, logistics, and tourism sectors.
Mariana Campos, Director General of México Evalúa, noted during the presentation that attracting investment can no longer be separated from the availability of electricity supply.
“Energy policy and economic policy are no longer separate issues. If we want to seriously discuss attracting investment, we have to talk about energy reliability, financing, and infrastructure,” she commented.
For her part, Ana Lilia Moreno, Coordinator of the institution’s Regulation and Competition Program, pointed out that taking advantage of the relocation of value chains begins with the institutional capacity to offer technical and legal certainty.
The organization called for the simplification of priority requirements for opening and operating industrial and commercial units, strengthening institutional and technological capacities in municipalities with a strong manufacturing focus, and reducing official response times to provide regulatory certainty for investors.
Regarding energy, the recommendation is to promote the development of reliable transmission networks and generation capacity to support economic growth, as well as to utilize the integration of renewable energies to enhance the competitiveness of the southeast.
Source: milenio
