Overview
Ecuador is an upper middle-income country with a unique biodiversity eco-system and a population of over 18 million.
The growth of Ecuador’s economy relies almost entirely on high oil prices. The country uses the US Dollar as a national currency, meaning there is no monetary or exchange rate policy which could help with the absorption of external shocks. Ecuador is regarded as one of the least ’investor-friendly’ countries in the Americas, with a very low foreign direct investment inflow, due to what is perceived as an uncertain legal framework for foreign investors.
Our partnership
The priorities for EU’s engagement with Ecuador to be delivered between 2024-2027 are:
- To improve the investment climate in view of supporting the economic stability of the country and attract FDI to strategic sectors
- To support the energy transition for the diversification of Ecuador’s energy supply, as part of the GGIA regional electricity integration initiative.
In particular promoting investments for the Ecuador-Peru regional electricity electricity interconnector. - To facilitate the development of free-deforestation value chain in line with the EU Regulation on Deforestation-free products (EUDR) and promoting circular and bio-economy models.
EU-Ecuador partnership documents can be found in the 'Related documents' section below.
Our key initiatives
- Economic green recovery through circular and bioeconomy
This project, developed by the EU, mobilises support for largescale operations to boost Ecuador’s green transition and economic development. It covers:
- A Green Deal for Ecuador, which mobilises investment in water and sanitation, e-mobility, sustainable construction, and solid waste management.
- Promoting Climate Finance and to design and develop green bonds.
- Sustainable transportation project Mover Ciudades, which will reinforce the implementation of low-carbon and sustainable urban mobility in Ecuadorian cities.
- A new line of credit to the Public Waste Management Enterprise of the Municipality of Cuenca to create a state-of-the-art waste management system.
- The EU Forest Alliance to Foster Conservation and Bioeconomy Promotion, which will strengthen wildfire prevention, ecosystem restoration, sustainable construction and bamboo usage, and a sustainable ‘bioeconomy and bio trade’.
- Health
The European Investment Bank (EIB) is funding the Ecuadorian Ministry of Public Health’s national childhood vaccination campaign.
- The digital transformation programme
The EU and Ecuador are working together to drive the digital transformation of administrative processes and strengthen interoperability in the domains of security, justice, and social policy. The goal is to improve the quality of these services for Ecuadorian citizens.
- Energy
The EU and its private sector are strengthening the regional energy integration of the Andean Electricity Interconnection System. More specifically, it is financing the Ecuador-Peru interconnector – a 500kV circuit with two new substations connecting Ecuador to Peru. It will mobilise a sizeable pipeline of green investment into Ecuador, benefiting vulnerable populations like women, persons in mobility, and indigenous communities.
- Security
The EU and Ecuador are working together to strengthen the security of Ecuador’s local communities, national security institutions, and private sector. Initiatives include:
- Funding for the NDICI Rapid Response Pillar which will strengthen:
- The country’s ability to fight money laundering and recover financial assets from organised crime.
- Restructure the penitentiary system.
- Improve the private sector’s ability to secure its trading system.
- Enhance social cohesion and reduce organised crime’s ability to recruit among youth.
- Help set up the Fusion Centre, which will coordinate efforts in the fight against violent organised crime in Ecuador.
- Funding for the NDICI Rapid Response Pillar which will strengthen:
