McKensey & Company expert explained that the country can boost other productive sectors with public-private partnerships.
The Dominican Republic must leave its “comfort zone” to channel foreign investments in other areas where the country has development potential other than tourism or free zones, but first it must prioritize its development goals.
To do so, public authorities and private entities need to redefine the areas to be promoted, with a “clear and simple” proposal that makes it easier for investors to decide where to invest their economic capital in the country, says Antonio Novas, partner at McKinsey & Company and manager of the firm in the Dominican Republic.
In general terms, Novas considered that tourism and free zones are lines known by international companies and their growth is generated organically. Therefore, he says that if steps are taken to balance the values of foreign investment, the more solid the economy will be.
The country’s health, infrastructure, technology, and energy sectors should be further encouraged to channel investment or to attract business agreements that generate benefits for the local economy.
For the expert, the energy sector has a lot of potential in the country, especially because the government is conducting an energy diversification plan of the power generation matrix. On that note, he explained that investments can be channeled not only to install new projects, but to intervene in supply processes.
“We see how 80% of energy depends on fossil fuels, such as oil, gas, etc., and that they are working to have more renewable energy. You can bring in a lot of outside investment for these big projects, areas that need more infrastructure”. Antonio Novas, partner at McKinsey & Company and manager of the firm in the Dominican Republic.
Foreign companies can invest to improve processes in energy, education, and health, build structures and make technological aspects more efficient. These lines are focal points to attract public-private partnerships.
When investors plan to do business in a country, they first ask themselves what that country’s vision is, what its purpose is for the next three or four years and what kind of infrastructure it has for each sector, Novas said.
McKinsey & Company presents study in DR
The McKinsey & Company executive was interviewed by Diario Libre following his participation in the presentation of the study “The World Before a New Era”, where the firm demonstrated a series of economic trends that will mark the course of business and government actions worldwide.
With the change of direction that trade and industry have taken after the onslaught of the COVID-19 pandemic, and additional pressures due to the geopolitical conflict between Russia and Ukraine, rather than worry, governments must go about doing what is necessary to protect the well-being of their economies.
During the interview, Novas explained that the Dominican Republic is one of the countries with the best development and growth forecast but recalled that the marked trends are a sign that decision makers must prepare, without exceptions.
Source:
Diario Libre