Sheinbaum presents US$277bn Mexican investment plan

Together with private sector representatives, President Claudia Sheinbaum presented the first draft of Plan Mexico, which outlines investment for the next five years.

“We have accounted for US$277bn in investments expected to reach Mexico under the objective and the plan that we are developing, with specific companies that want to establish themselves in Mexico. How would they establish themselves, where would they establish themselves, with what benefits and incentives? And at the same time, this investment in about 2,000 projects is already registered in the portfolio,” Sheinbaum said during the presentation. 

She reiterated that a mixed investment plan seeks to differentiate itself from public-private partnerships (PPPs).

“We no longer want to call it public or private, but mixed investment, where risks are shared and benefits are also shared, which also allows us to increase the infrastructure of our country where it is possible, without giving up public investment, which is essential for development,” she said.

The long-term goal is to consolidate Mexico's position as a top 10 economy in the world, climbing up from the 12th place it currently occupies.

To this end, Plan Mexico seeks to increase investment as a share of GDP to over 25% from 2026 and more than 28% by 2030, but also to create 1.5mn jobs.

Among the objectives listed by Sheinbaum, the following stood out:

– promote relocation;

– increase local and regional content; import substitution;

– relaunch the “Made in Mexico” program;

– create well-paid jobs in the manufacturing and service sectors;

– increase local supply of higher value;

– promote development and welfare centers in the country; creation of 100 industrial parks;

– expand access to secondary and higher education;

– strengthen scientific and technological development, and innovation;

– promote regional integration;

– reduce from 2.6 years to one year the procedures to invest in Mexico.

Sheinbaum reported that after a first session with multisector business council CADDER, an agreement was reached to make a monthly presentation and visualize progress according to the proposed schedule for the following months.

Schedule

After cooperation on technological and scientific development between entrepreneurs, universities and the government began on Monday, Sheinbaum announced that on January 17 new incentives for the relocation of companies will be published, with more ambitious goals. An initiative to spur digitization and simplification of procedures will be presented to congress.

The working groups for developing local supplies and reducing imports will start work between January 20 and January 24.

The rules for self-supply energy consumption will be published in February, and the secondary laws on energy matters will be sent to congress early that same month.

“Between February 24 and 28, [we will] publish the decree that includes at least one development pole for each [federal] entity. In short, as you can see, there is a clear plan to encourage Plan Mexico this year,” Sheinbaum added.

Public investment

Sheinbaum recalled that a highway plan is being developed, and work is being done in the country's southeast to improve connectivity. Mixed investments are also contemplated.

She mentioned the passenger train plan, which aims to consolidate the southeast and train plans to the north of the country and to develop the link between Mexico City, Puebla and Veracruz for passenger and cargo transportation.

Regarding the airport plan, the president highlighted that it contemplates public and private investment. She also hopes to present the energy plan “very soon.” The goal is to increase generation capacity from 356TW/h to 413TW/h, with gas and with renewable energy, especially solar and wind.

“There are 145 transmission projects in the six-year term that [state power company CFE] will develop,” said Sheinbaum.

Finally, the president recalled that a sustainability and water rights agreement with entrepreneurs and irrigation districts was recently signed, involving the modernization of at least 50% of the districts.

“All the procedures related to water concessions and all the databases are being simplified and improved, and there are also 17 very clear infrastructure projects in each place. There are 20bn pesos [US$965mn] in hydraulic infrastructure,” she added.

At the same event, Altagracia Gómez, coordinator of CADDER, asked investors to do three things: first, to think and act big; second, to cooperate on implementing the industrialization strategy that protects workers, encourages production and bets on regional integration; and third, to believe in Mexico to invest better in Mexico.

The final presentation of the Plan Mexico can be downloaded under the Documents box in the top-right corner of the screen.