High hopes from Mexican Energy and Telecommunications Reform

telecom

Thanks to the Mexican government’s new Energy and Telecommunications reforms which were both finalised this year, we are already beginning to see opportunities and growth in these two major sectors.

According to Mexican Newspaper El Financiero, the Director of Operations for Ottomotores Latin America, Bulmaro Rojas shared his high hopes for the turbine and electricity generator markets saying “There will be many business opportunities… in the country.”

Traditionally the firm sells diesel generators, which have been very successful, but with the opening up of the local energy sector the company is now looking to provide turbines and generators that can operate on an industrial, commercial and even domestic level.

Rojas explained that, thanks to recent changes in the law, foreign companies are seeing niche opportunities to build infrastructure and even participate in joint projects.

We can also expect to see strong growth in all but one of the nine oil-producing states in Mexico for years to come, according to La Economista. Thanks again to the energy reform, Tabasco will grow 7%; Chiapas, just over 4%, and San Luis Potosi, above 5% in 2018. Citing a study by Investment Bank Bancomer BBVA,  investment in these states as a result of the reform will continue until to 2016, while the first oil extraction would be achieved in 2018.

Finally, following the approval of the secondary laws related to the Telecommunications Reform, we can expect to see huge investment from various multinationals in this sector over the next few years. According to El Financiero, British company Virgin is expected to invest $45 million US dollars.