NL Logos 5.6 (794 x 200 px)

British controlled firm assumes control of Enel’s Peruvian energy unit

Enels energy unit

Last week the Italian energy firm Enel publicly confirmed that its Peruvian operation had been acquired by Niagara Energy, controlled by the British investment fund, Actis. Enel first expressed its intention to exit this market in November of 2023, citing the move to form part of the organisation’s broader strategy until 2025. Consequently, Niagara Energy has moved to assume 92.35% of the former Enel operation known as EGPerú, making the British owned company the controlling stakeholder and a prominent player in the Peruvian energy market. Certainly, Niagara’s acquisition of Enel’s subsidiary is significant news. The power generation unit in question directly supplies Peru’s national grid and it continues to be the country’s largest private electric company, having a production capacity of more than 1.400 megawatts. Over 50% of this significant supply is generated by renewable sources, with seven hydroelectric plants, two thermal power stations, one solar plant and an additional wind powered generation site. The specifics of the acquisition are still unconfirmed, however the sale of Enel’s operation is reported to have been worth USD$ 1.36 billion and has now been officially ratified by the market regulator.


Peru has proven to be an attractive destination for British capital on more than one occasion in the past, with UK firms constituting the leading source of foreign investment in the country’s mining industry. Indeed, Actis’ decision to designate capital to the energy industry in such a significant way is an encouraging indication of the confidence that British investment funds have in the stability of Peru’s business climate. Pre-existing commercial ties across a variety of industries contribute to an already strong bilateral relationship, providing case studies in how British investors such as Actis can create successful enterprises in the Andean country. In the case of the recently acquired EGPeru, the operation is already well established, however Niagara’s rapid and decisive takeover evidences the company’s value, demonstrating to the wider energy community that the local industry is both a profitable and a safe bet, with plenty of industrious potential. Sources: El Comercio, Gestión, Enel Perú.

Joint venture between UK’s BP Air and Peru’s PBF: a success story of collaboration

BP and PBF

Back in 2016 Peruvian energy company, PBF, signed a 50/50 joint venture with the British aviation fuel and services supplier, BP Air. The agreement was elaborated to “strengthen the existing marketing and technical service agreements” between the two companies, with a view to supplying Lima’s Jorge-Chávez airport. The two companies expressed that their joint aim was to eventually begin exporting Peruvian fuel to international aviation markets, and by the end of 2017 the British-Peruvian venture had broken into seven new countries, predominantly in Latin America, exporting US$ 17.3 million. In the consequent two years before the pandemic, Air BP-PBF grew its exports by an impressive 736% to a value of US$ 144.5 million. Naturally, the pandemic stymied operations slightly and the company has just recovered its trend of growth last year, having exported over US$ 175 million of its fuels to 21 different markets across the globe. 

The unabated growth of Air BP-PBF is demonstrative of the positive outcomes that are possible from the union between British and Peruvian companies, and moreover it exemplifies Peru’s capabilities for producing exportable quantities of aviation fuel. BP is one of the largest suppliers of this product in the world, having international commercial partnerships with businesses across the globe. It is greatly encouraging to see that the British energy giant has found a reliable partner in Peru’s PBF. Even still, there is one more positive turn to this success story. Last year, Air BP-PBF exported to the UK for the very first time, and during the first two months of 2024 these exports amounted to US$ 1.3 million. This suggests that the joint venture may eventually have the potential to be a supplier to the UK’s aviation industry. Whatever the outcome, one thing remains clear, Air BP-PBF is a success story of international collaboration. Sources: Air BP-PBF del Peru, PROMPERU

Infographic May v5.

Products made with Peruvian cocoa impress UK consumers

chocolate

The largest supermarket chain in the UK, Tesco, has recently impressed customers by introducing its new, own-brand chocolate bar; ‘Tesco’s Finest: Peruvian 85% Dark Chocolate.’ So far, customers have left outstanding reviews, with the Metro newspaper uncovering a Facebook group known as ‘Food Finds UK Official.’ In the social media group consumers have left reviews of the new Tesco range of products, with one user writing that they are ‘gorgeous.’ Whilst the chocolate itself is not technically Peruvian, Tesco manufactures this product in France with cocoa beans imported from Peru, and the supermarket’s own-brand is granting increased visibility in the UK market to the quality of products made with Peruvian cocoa. This won’t come as a surprise to anyone familiar with the international market for cocoa based products. In 2020, National Geographic recognised Peruvian white cacao, originating in the Piura region, as the best in the world. 

Perhaps more impressive is the fact that chocolate manufactured in Peru by Machu Picchu Foods, is now one of the own-brand lines for another UK supermarket giant. ASDA’s new product, “Extra Special Peruvian Dark Chocolate,” is Rainforest Alliance certified and has a 70% cocoa content. The supermarket’s own-brand line debuted in stores recently and is produced by a Peruvian company which exported over US$ 7.18 million of finished chocolate bars to the UK in 2023. As a result of this commercial partnership, the UK imported a total of US$ 7.22 million worth of chocolates for retail from Peru in 2023, at least 40 times more than the previous year. With 48 five star reviews on ASDA’s website, this treat is bolstering the reputation of Peruvian-made chocolate in the UK. Indeed, Peruvian chocolate makers have already garnered international acclaim in the past, having been awarded an impressive seven silver medals in the most recent edition of the International Chocolate Awards, after winning categories in  2016, 2019 and 2021. Certainly, the continuously growing trend amongst consumers to express a preference for sustainable, high-quality products is serving Peruvian manufacturers of chocolate well. Sources: Tesco, Metro, PROMPERU, International Chocolate Awards, ASDA. 

National Geographic names Peru best international destination 2024

national-geographic-mountain

Having been named on National Geographic’s ‘Cool List’ at the end of 2023, Peru is quickly showing itself to be a popular favourite for the publication. In the recent National Geographic reader’s awards, the Andean country was named the best international destination out of 75 selected finalists. Having been recognised twice by the prestigious travel magazine in such a short time is a testament to the country’s allure as a destination, and it is no doubt fantastic publicity for Peru’s recovering tourism industry. In both the “Cool List,” and the reader’s awards, Lima was cited for its “varied gastronomic offer and its lively neighbourhoods.” Certainly, in the recent list of the World’s 50 Best Restaurants, Lima was the only city to host two of the top ten. Maido’s Nikkei cuisine earnt the locale a spot at number six, whilst Virgilio Martinez’s Central secured first place for its innovative use of indigenous ingredients.

Peru has not been designated as the best international destination for its food alone. Nat Geo brings deserved attention to the magical ancient Inca citadel of Machu Picchu, whilst also citing Cusco and the Sacred Valley as a “myriad of enclaves that each deserve to be visited on their own merits.” A traveller might easily be blown away by Lima alone, and yet a trip to the country has so much more to offer than just this. Lima can be used as a base to travel to the Amazon jungle city of Iquitos, or to the dramatic peaks of the Huascaran national park, not to mention the natural wonders of the Paracas peninsula or the highest navigable lake in the world – Titicaca. Whichever of these destinations may appeal to you, Peru can be counted on for an enriching and varied experience Source: National Geographic

Updates on the Peruvian Economy

Peru’s Central Bank cuts interest rates | This past week, as forecasted by several leading financial institutions, the Peruvian Central Bank cut its key interest rate to 5.75%. This represents a two year low for Peru’s interest rates and is in line with inflation having returned to its target range for the first time since 2021. Source: Bloomberg.

Investment in Peruvian transport infrastructure remains dynamic in Q1 of 2024 | In the first quarter of 2024 Peru’s government transportation regulator has recorded US$ 232 million of investment in the country’s transport infrastructure. This number is marginally higher than in the same period for 2023, and it represents the continued momentum of investment in transport that was seen throughout 2023. Source: OSITRAN.