An open economy that welcomes UK business
Peru is a like-minded and open economy. The UK is the largest foreign investor in Peru, mostly in the mining sector. The UK and Peru have a broad trading relationship. UK products and services are recognised for quality and innovation. The UK-Andean trade agreement has governed UK trade with Peru, Colombia, and Ecuador since January 2021.
The UK concluded negotiations to join the Comprehensive and Progressive Agreement for Trans-Pacific Partnership (CPTPP) on 31 March 2023 and signed the Protocol of Accession on 16 July 2023. Peru is a member of the CPTPP.
High demand for UK expertise
UK goods and services have a strong market profile and are increasingly in demand following the success of UK-Peru government-to-government (G2G) agreements. Over the last years, UK businesses have supported the Peruvian government in the implementation and delivery of 3 complex programmes: the Pan American Games of Lima 2019, the reconstruction programme and the Bicentennial Schools project.
Top five UK goods exported to Peru, in the four quarters to the end of Q1 2023
|Dairy products & eggs||32.1|
|Medicinal & pharmaceutical products||14.9|
|Scientific instruments (capital)||9.5|
Total import value (into the UK from Peru) and export value (from the UK into Peru) over time
|Year||Imports (£billion)||Exports (£billion)||Total trade (£billion)|
ONS UK total trade: all countries, seasonally adjusted
Last updated: July 2023
Total trade is the sum of all exports and imports over the same time period.
Download the latest trade and investment factsheet for Peru.
Peru: at a glance
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Opportunities for exporters
Peru is the fifth largest economy in Latin America, in terms of purchasing power parity (International Monetary Fund 2022). There are significant opportunities for UK companies across a wide range of sectors including mining, energy, infrastructure, life sciences and healthcare, security, and food and drinks.
Supply chain opportunities
There are UK supply chain opportunities across the mining life-cycle. Typical projects involve construction and capital goods opportunities, comprising around 40% of each project. There are also opportunities in engineering, transport and services, and management and supervision. Additionally, decarbonisation and energy transition are becoming highly relevant.
Size and long- term nature of opportunities
It is estimated Peru has around 200 mines in operation and major projects waiting to be developed, worth US$53 billion. Mining represents 60% of Peruvian exports, and nearly 10% of GDP. Peru’s investment in the mining sector exceeded $5.2 billion in 2021, surpassing the projected goal. Seven out of the 10 largest copper producers globally are in Peru. Mining activity is led by the private sector operating under long-term licences granted by the government.
Several major mining projects are due to enter their construction phase between 2022 and 2025. These include Corani ($579 million), Yanacocha Sulfides ($2250 million), Zafranal ($1263 million), Magistral ($490 million) and Trapiche ($973 million).
Commercial off-grid supply
Peru’s energy transition is led in the private sector by multinational companies. They are acquiring decarbonisation commitments and looking into the implementation of renewable energy sources for their largest projects. Most opportunities for off-grid energy supply are in the mining sector. This is the perfect combination to leverage the exploration of renewable solutions that can accompany the project throughout the mine lifecycle.
Off-grid utilities and rural electrification
The electricity off-grid sector has important potential for development, through public electricity company projects and direct projects from the government. Current nationwide electricity coverage is 92%. It is expected to reach 96% coverage by 2026. The Ministry of Energy and Mines has also programmed an investment of £73.5 million over 30 electrification projects.
Investment opportunities in energy generation
There are 64 existing renewable energy plants in Peru. Forty nine are operating, 2 under construction and 13 under arbitrage. Additionally, there are 5 approved projects which represent an investment of $630.7 million which would add 635.6 MW to the Peruvian grid. Another 11 projects are under feasibility studies. These account for 2,778MW, including 7 hydroelectric, 3 solar and 1 wind-solar plants, spread across 5 regions. The Peruvian Association of Renewable Energies has identified potential for 6,000MW in renewable energy projects in country.
Long term infrastructure plan with UK support
Peru launched its renewed National Sustainable Infrastructure Plan for Competitiveness (PNISC) of 72 prioritised projects valued at £31 billion in October 2022, with technical support from the UK. This plan opens new partnership opportunities for the UK to support sustainable infrastructure development in Peru on a wide portfolio of projects. Various delivery models are available. The main opportunities for UK companies are for operators, designers, engineers, consultancy and supply chain.
Since 2017, the UK has been selected as Peru’s delivery partner for large scale infrastructure programmes. Under the government-to-government (or G2G) framework, UK consultancy firms provide technical assistance and best international practices for the implementation and delivery of major projects such as the Lima 2019 Games. Likewise, other UK companies can participate in open and transparent procurement processes to become a contractor or part of the supply chain.
Demand for UK infrastructure expertise
The UK’s success in supporting Peru with the delivery of major infrastructure projects has boosted the country’s profile in the market. Some UK companies have established offices to work on projects in Peru or the wider LATAC region. UK expertise in project management, design, engineering, planning, procurement, in addition to rail and water infrastructure is in demand.
Public-private partnerships (PPPs)
70% of Peru’s healthcare system is public, with a recent emphasis on PPPs to finance public infrastructure. Important projects in the pipeline are the National Institute for Children and Adolescents (worth £130 million) and high complexity hospitals in Piura (£106 million) and Chimbote (£84 million).
Brand recognition and highly relevant markets
The UK healthcare system and life sciences sectors are highly respected in Peru for innovation and quality, and the universal coverage of the NHS. Digital health is one of the sectors with the highest growth projection in Peru, having more than 220 digital health companies promoted in the market. The UK is well placed to support Peruvian health sector initiatives and reforms as the country invests £14.4 billion to help close the health infrastructure gap. Other growth areas include expansion of telemedicine and mobile hospitals, quality elderly care and digitisation of medical records.
Growing and reforming sector
The Peruvian health system continues to experience significant reform. The Health Outlook for Latin America and the Caribbean countries recommend a healthcare investment of 6% of GDP in 2020, in line with the region’s average (World Bank, 2020). Health coverage has increased, with higher expectations of this from the population. Private clinic provision has expanded, with a growing middle class able to pay for private care.
Over the last years, the Peruvian government has been strengthening its digital capability, both in connectivity and security matters. Likewise, coronavirus (COVID-19) has accelerated Peru’s digital transformation which has driven important changes and increased the demand for cyber security solutions. These solutions range from the commercial and finance sectors to tailored solutions to prevent any damage to national critical infrastructure.
Strong brand recognition
UK companies are recognised in Peru for the innovative solutions they develop in response to the fast-moving global threat landscape, as well as for their collaborative and transparent approach. For this reason, Peru is very receptive to UK solutions to a wide range of security challenges.