Arequipa
From The Report: Peru 2017
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Located in the south of Peru, the department of Arequipa shares its border with six other departments, including Ica and Ayacucho to the north-west, Apurímac and Cusco to the north, and Puno and Moquegua to the south-east. The population of Arequipa is set to reach a total of 1.3m people in 2017, representing 4.1% of the country’s population. In 2015 Arequipa had about 693,100 economically active people, down from an approximate 700,200 in 2014. In the third trimester of 2016 Arequipa’s economy grew by 29.3%, with the highest growth sectors including mining, which contributed 19.9%, followed by telecommunications and information services at 9.7%, other services (4.7%), and transport, storage, mail and messaging (3.9%). The outlook for Arequipa appears positive and the present government has taken measures to attract private investment.

This chapter features interviews with Yamila Osorio Delgado, Regional President of Arequipa; Diego Muñoz-Nájar, President, Arequipa Chamber of Commerce; and Michael Michell, Executive President, Michell Group.

Articles from this Chapter

Overview

Diverse and expanding: Mining recovery drives growth, while export-oriented sectors and tourism offer opportunities for investment
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Located in the southern Peru, the department of Arequipa – and its capital, also called Arequipa – is bordered by six other departments: Ica and Ayacucho to the north-west, Apurímac and Cusco to the north, and Puno and Moquegua to the south-east. There are seven other provinces in the Arequipa region,namely Camaná, Caravelí, Caylloma, Condesuyos, Islay, Castilla and La Unión, comprising a total of 109 districts. The National Institute for Statistics and Computing (Instituto Nacional…

Interview

Irons in the fire: Yamila Osorio Delgado, Regional President of Arequipa, on investment potential in the region and upcoming projects
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Interview:Yamila Osorio Delgad What specific steps are needed to develop geothermal energy in Arequipa? YAMILA OSORIO DELGAD: It is too early to gauge the prospects of geothermal, however, we have identified areas in Cayoma with potential. Studies are under way to determine the feasibility of producing geothermal energy in Arequipa. The Ministry of Energy and Mines has already awarded concessions, and the firms are at the stage of establishing relationships with the local communities, under…

Interview

Constructive collaboration: Diego Muñoz-Nájar, President, Arequipa Chamber of Commerce, on enhancing public and private sector cooperation
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Interview:Diego Muñoz-Nájar To what extent does mining act as a catalyst for the development of other sectors? DIEGO MUÑOZ-NÁJAR: Mining is important for the region, and when done responsibly it contributes to the economic and social development of Arequipa. However, the relevance of the sector in the region should not overshadow efforts to achieve productive diversification. The private sector put a plan together to work with the public sector to diversify the economy. In a study conducted…

Analysis

Mine craft: Despite a number of challenges, increased investment is set to boost mining production
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Arequipa is a key mining region in southern Peru, topping national production in copper and molybdenum in 2016, largely as a result of the recent expansion of operations at the Cerro Verde mine. According to the Ministry of Energy and Mines ( Ministerio de Energía y Minas, MINEM), as of January 2017, Arequipa had a mining investment portfolio of $5bn, representing 10.7% of the total investment in Peru and ranking fourth in terms of regions attracting mining investments in the country, following…

Analysis

Fabric of a nation: Arequipa sits at the centre of a growing global alpaca business
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Peru holds over 80% of the global alpaca population with Arequipa sitting at the centre of the alpaca growing and manufacturing industry. Arequipa benefits from a variety of advantages in this segment, ranging from a high concentration of alpacas, to the presence of a key set of regional alpaca manufacturing companies. While the largest share of revenue still comes from fibre exports, higher value-added products such as garments have displayed a strong potential for growth and investment…

Interview

The right mix: Michael Michell, Executive President, Michell Group, on responding to changes in the alpaca market
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Interview:Michael Michell What is the most important factor to consider in maintaining export levels at a time when global demand for alpaca is decreasing? MICHAEL MICHELL: The key to succeeding in light of the current decline in demand for alpaca is to enhance the capacity for alpaca yarn production rather than merely focusing on exporting alpaca garments. Both expanding our yarn production and increasing our retail shops has proven to be equally important. Therefore, diversification in…