Financing solutions for 
Latin America

What tasks do you perform in your role for countries in Latin America?

In my role as the Mobile Desk for Latin America, I am the point of contact for German companies active in the region – as well as for their representatives and local companies wishing to import from Germany. I advise on the options and benefits of the Federal Government’s export credit guarantees (Hermes Cover) for risk cover and financing.

In the countries mentioned in particular, we have found that export credit guarantees remain relatively unknown. I aim to change this – through training, participation in and organisation of events, as well as visits to local companies, German subsidiaries and commercial agencies. Building a local network plays a central role in this.

How do the markets in Peru, Ecuador, and Colombia differ?

Although the three countries are similar in many areas, their financial markets differ significantly, which also affects the potential for export credit guarantees.

Ecuador is fully dollarised, while in Peru the US dollar is frequently used alongside the local currency in everyday transactions. In Colombia, the local currency plays a central role in project financing – regardless of size or sector.

Despite political turbulence, Peru is one of the most macroeconomically stable countries in the region. In Ecuador and Colombia, however, the current political situation has a greater impact on the economic environment and, in particular, on private-sector dynamics.

Are there certain sectors that are particularly attractive for German companies in Peru, Ecuador and Colombia?

All three countries offer a wide range of business opportunities for German companies – such as industry (e.g. plastics and textile processing) and construction. There is also significant investment demand, particularly in public transport and renewable energy.

In Peru, mining and the associated infrastructure, as well as agriculture, are particularly important. Colombia has a larger, more diversified economy with potential across many sectors. Ecuador, by contrast, is increasingly focusing on investment in large-scale projects – particularly in irrigation, processing, agriculture, fisheries, and mining.

How can the Federal Government’s export credit guarantees (Hermes Cover) help German companies gain a foothold in these markets?

Despite the aforementioned potential, there are also challenges - such as political uncertainties, frequent changes of government and ideologically shifting political orientations.

This is precisely where the Federal Government’s export credit guarantees (Hermes Cover) come in: They protect exporters against non-payment due to political or commercial risks. At the same time, they often offer more attractive terms than local financing, for example through longer repayment terms. This is a clear advantage for business partners on both sides and is often decisive in concluding a deal.

Are there programmes or partner institutions that support companies with market entry?

Yes - for example Germany Trade & Invest (GTAI) and the Chambers of Commerce Abroad (AHKs) which are represented in the region and have strong local expertise. GTAI provides up-to-date information on markets, trends and economic conditions. The AHKs help, among other things, to identify business partners and by organising company trips.

In addition, the Latin America Association (LAV) offers companies a platform for exchange and networking.

For small and medium-sized companies in particular, the Energy Export Initiative and the Market Development Program of the German Federal Ministry for Economic Affairs and Energy and the Energy Export Initiative offer a good opportunity to get to know markets and find reliable business partners.

I work closely with these partners and regularly take part in their initiatives.

What role does sustainability play in the region? Are there any specific ESG initiatives?

It is difficult to give a general answer, as the topic is approached differently in each country.

In Colombia, for example, President Gustavo Petro is strongly committed to the energy transition -  for instance, through a national roadmap for the expansion of wind energy. In Peru, on the other hand, political influence on economic developments remains limited, the market operates largely freely - and and sustainability has so far played a subordinate role. In Ecuador, by contrast, political commitment depends heavily on the outcome of the elections on April 14, 2025.

What all three countries have in common, however, is an exceptionally high level of biodiversity. They are already directly affected by climate change and depend on functioning ecosystems in many areas.

What advice would you give to German companies looking to enter the markets of Peru, Ecuador or Colombia?

Patience and relationship-building are the be-all and end-all. Building trust takes time, a personal presence is crucial. Those who are regularly on the ground and show genuine interest have a clear advantage. In-person meetings — for example at trade fairs or events — are often far more effective than formal emails.

And language plays a key role. Without Spanish proficiency, market entry will be challenging.