Santo Domingo – The energy sector led the flow of foreign direct investment (FDI) for the third consecutive quarter of 2023, with an amount of US$826.9 million, making it the fastest growing sector in this period, according to data provided by the Central Bank of the Dominican Republic.
The Minister of Energy and Mines (MEM), Antonio Almonte, in reviewing the data of the report, said that the energy sector was the sector that received the highest flow of foreign direct investment in the first 9 months of 2023, surpassing leading sectors in obtaining foreign direct investment such as tourism, commerce and industry.
The official said that in the January-September period, FDI in energy continued the leadership shown in the first semester (January-June), where it represented 27% of total investments, and that the growth in this sector, amounting to USD 826.9 million, is equivalent to 24.46% of total FDI in the first 9 months of 2023.
He indicated that the extraordinary performance exhibited by the energy sector is a sign of the confidence placed by foreign investors in the current government administration, since never before has the country received such a significant amount of FDI in the energy sector, which could exceed USD 1,000 million when the Central Bank publishes the data for the last quarter, corresponding to the end of 2023.
“The fact that the energy sector leads three consecutive quarters in foreign direct investments demonstrates the institutional strengthening, transparency and sound policies that this government, led by the Ministry of Energy and Mines, has had”, highlighted Almonte, pointing out that these investments were made mainly in conventional and renewable energy projects.
Commenting on the Central Bank data, Almonte added: “if we look retrospectively by selected periods, it is palpable that in the period 2021-January-September 2023, the country accumulates the extraordinary sum of USD 1,858.5 of FDI in energy, being almost double the FDI of the period 2017-2020, almost triple that received in 2013-2016 and 2010-2012.”
The Dominican economy, characterized by its dynamism and strength, is on track for growth projections of 5% of GDP by 2024, and the energy sector has played a stellar role in this growth.
These prospects are supported by government initiatives, some of these aimed at attracting investment, which is achieved by the legal security provided by the State and by the continuous improvement of the business environment in the Dominican Republic.
As part of the confidence shown by foreign investors, the Dominican Exporters Association (Adoexpo) expects the generation of more than 200,000 jobs by 2024.
The energy sector has contributed to the establishment of several free trade zones, approved in 2023, which will come into operation during 2024, generating 18,823 new jobs and representing a combined investment of RD 9,023 million in 28 of the country’s 32 provinces.
Likewise, the growth and stability of the energy sector has helped the tourism sector, which achieved significant growth through November 2023, to continue to be one of the main drivers of the Dominican economy in 2024.
