Staff Writer
Costa Rica’s location in Central America offers a significant advantage for companies seeking to enter the broader Latin American market. British firms, such as Arup and Bechtel, are exploring infrastructure opportunities, leveraging Costa Rica as a base to expand across the region. Costa Rica’s proximity to major markets and established trade agreements make it an ideal launching pad for UK businesses aiming to scale their operations in Latin America.
Stable Economy: An Attractive Investment Landscape
Costa Rica’s stable and growing economy draws interest from UK investors. The country’s political stability and steady economic growth provide an environment conducive to long-term investments, especially in infrastructure development and public-private partnerships (PPPs). These efforts align with Costa Rica’s aspirations to upgrade its infrastructure to meet international standards.
Renewable Energy Leadership
Costa Rica is internationally recognized for its commitment to renewable energy, generating most of its electricity from hydroelectric, wind, and geothermal sources. This leadership has caught the attention of UK-based firms like WSP, which are exploring collaborations on renewable energy projects. Both Costa Rica and the UK share a strong commitment to sustainability, making these partnerships natural fits for advancing clean energy initiatives in the region.
Business-Friendly Environment
Foreign investors find Costa Rica particularly appealing due to its business-friendly policies. The country offers tax exemptions, simplified business setup processes, and access to free trade zones. These incentives have attracted UK companies like Arup and Bechtel, who see great potential in forging alliances with local partners. Costa Rica’s focus on modernizing its regulatory framework further strengthens its position as a business hub in Central America.
Infrastructure Opportunities
Costa Rica’s ongoing need for infrastructure development presents lucrative opportunities for UK companies specializing in construction, engineering, and mobility solutions.
A recent delegation of UK firms, including representatives from Arup, Bechtel, QGMI, Steer Group, and WSP, met with Costa Rican officials to discuss strategic alliances. These meetings focused on projects to improve national infrastructure while adhering to international best practices. Public-private partnerships were a key topic of interest, essential for driving sustainable infrastructure projects that would benefit both countries.
Transparency + Corruption
In 2019, Costa Rica ranked 62nd globally on the World Economic Forum’s Global Competitiveness Index and 42nd on Transparency International’s 2020 Corruption Perceptions Index, with a score of 57/100. The country has demonstrated a strong commitment to transparency through its Open Government Partnership (OGP) National Action Plan, involving all branches of government in its open government agenda. However, Costa Rica faces significant underinvestment in infrastructure, with a 2016 investment gap of 2.6% of GDP, alongside bureaucratic inefficiencies that hinder infrastructure development.
The 2017 and 2020 National Survey of Perception on Prevention of Corruption (ENPPC) revealed challenges in the infrastructure sector, which makes up 11.7% of public procurement. Notably, 66% of officials were unaware of corruption risk assessments within their departments, and 86% of citizens believed Costa Rican society is tolerant of corruption. Additionally, 64% of citizens viewed the public as the main actors in preventing corruption, underscoring the importance of civic responsibility in tackling these issues.
What’s Next for this Partnership?
Costa Rica’s efforts toward greater transparency and its commitment to open government are essential steps in addressing governance challenges, but they are not without obstacles. Despite these initiatives, the country grapples with structural issues, particularly in its infrastructure sector, where underinvestment and bureaucratic inefficiencies persist. These challenges are compounded by concerns over corruption, which remains a significant barrier to progress. Addressing these issues is critical for boosting public trust and ensuring that infrastructure projects meet international standards and support
UK companies are eager to apply their expertise in designing sustainable cities and transport systems, supporting Costa Rica’s goals of modernization and development. Ambassador Ben Lyster-Binns noted that these firms are leaders in their fields, offering innovative solutions that align with the UK’s clean growth agenda. The visit also included discussions with CoST, the UK-financed Infrastructure Transparency Initiative, promoting transparency and accountability in Costa Rica’s public projects.