Ecuador - 3 Services and Supply

Ecuador has a variety of supply service industries for different sectors, such as:  transportation services, handling companies, warehousing (private and government), oil and gas industry, telecommunications with a large national industries (food), agricultural suppliers and qualified manual labors. Some areas are supported and/or regulated by the government. There is existing commercial capacity for renting warehouse space. In case of emergencies, warehouse space could be arranged with support of local authorities or provinces. There is limited availability for the purchase of equipment such as tents, water pumps, pipes, and water tanks. Regarding items such as IT equipment and office furniture, there are plenty of suppliers with a broad variety of goods and quality service support. 

The country has significant private transport capacities. Transport providers supply through daily rental or per MT rates 40’, 10-20’ trucks (containers and or flatbeds) and package delivery companies which distribute items throughout the territory. The country can be travelled through main roads that are well developed. 


Consumer Price Index CPI

 The annual variation rate of the CPI in Ecuador in May of 2021 was -1.1%, The monthly variation rate of the CPI (Consumer Price Index) has been 0.1%, and thus the accumulated inflation in 2021 is 0.8%.



The macro plan view

The 2018-2021 country strategy prioritizes accelerating the growth of the economy in order to consolidate and deepen the social progress achieved since the turn of the century. To this end, the Bank supports the government in its effort to overcome the macroeconomic imbalances that currently affect the country, move towards a growth model in which the private initiative acquires a greater role, and mitigate the adverse impacts that this process could have on the most vulnerable groups. This strategic approach was supported by three pillars: the strengthening of public finances; the promotion of productivity and the development of the private sector as engines of growth; the deepening of the social advances of the last decade.

Areas of investment as per listed in importance:  

  1. Energy

  2. Social investments

  3. State reform and government renewal

  4. Water and sanitation

  5. Financial markets

  6. Transport

  7. Urban housing development

  8. Health

  9. Trading and commerce

  10. Environment and natural disasters


In 2020, hydroelectricity accounted for 58% of the country's electricity generation. The other primary source of electricity supply is oil-powered conventional thermal power plants. However, Ecuador is also undergoing significant change in the energy sector. The country is moving from a heavy reliance on fossil fuels to nearly complete self-sufficiency through renewable energies – particularly hydroelectric power. The country is also improving its energy transference infrastructure to allow massive loads to be arrived more efficiently at high-voltage.


Oil Gas and Energy

Ecuador has the third-largest oil reserves in South America. Its hydrocarbon resources are exclusively owned by the state, and state-owned oil companies account for most of the production. Ecuador's energy mix is dominated by oil, although its challenging investment environment and lack of domestic refining capacity limit oil revenues. Ecuador has relatively small proved natural gas reserves and a limited natural gas market. Ecuador limits foreign investment in the oil sector. Foreign oil and natural gas companies are allowed to enter into service contracts that offer a fixed per-barrel fee for their exploration and production activities. The move away from production-sharing agreements to service contracts has increased the government's share of revenue and state oil production.


Water and Sanitation

In general, water service quality is low in Ecuador. Water supply services are interrupted in 50% of the urban areas. Water pressure is well below standard, particularly in poor outlying areas. In 30% of the urban areas, there is no treatment of drinking water. 92% of wastewater is discharged without any kind of treatment. Potable water supply efficiency is usually measured through labour productivity and the level of unaccounted-for water (water that has been produced and is "lost" before it reaches the customer). Drinking water supply and sanitation in Ecuador is characterized by a number of achievements and challenges.