By Alejandro Murat Hinojosa, Governor of the State of Oaxaca.
Oaxaca on the Path of Growth
Oaxaca stands out for its investment potential, its tourist allure, and the quality of its original products. Through dedicated and coordinated work with the other areas of government, the present state administration has strengthened these three pillars of value, and participates in some of the most important infrastructure projects in the country. This has allowed Oaxaca, after the slowdown and natural disasters of recent years, to be one of only three entities in the country to achieve five quarters of growth.
Mezcal, a Fundamental Pilar
In addition to being a state emblem, mezcal is the livelihood of thousands of families, generating 128 thousand jobs in Oaxaca. We proudly lead the nation in production of this distillate, which, in 2021, exceeded eight million liters. Since 2016, the production of Oaxacan mezcal has increased by 177 percent.
Oaxaca is also the largest marketer of mezcal, currently reaching 79 countries. From 2016 to 2021, exports of this drink grew to 116 percent, bringing more of Oaxaca into the world.
Today, mezcal is one of the most spiritual forms of liquor, and is considered a cosmopolitan beverage. For this reason, a facility specializing in training, innovation, and protection of this ancient elixir, is being built. The Oaxaca Mezcal Innovation Center is the first of its kind in the country.
A State that Projects Confidence
Today, Oaxaca enjoys good governance and low levels of debt, providing an ideal atmosphere to invest, which is reflected in annual economic growth of 6.8 percent, according to Mexico’s National Institute of Statistics and Geography (INEGI).
With the commitment to facilitate the installation of new companies, this administration has attracted private investments of the equivalent of $1.8 billion. By rehabilitating the Oaxaca 2000 Industrial and Maquiladora Park, the complex went from 17 to 32 active companies, generating $11,000 millions in investment and 1,500 formal jobs.
Protection and Added Value
The state government has consolidated great projects in order to safeguard our products of origin. In 2020, Oaxaca received the Denomination of Origin (DO) Café Pluma, which protects the distinct aroma of the brew from the region. Our coffee growers already receive direct benefits from this DO, reporting historical growth of one hundred percent since it was obtained.
In 2022, Oaxaca became the first Mexican entity with three geographical indications:
- Silk from Cajonos,
- Wool rugs from Teotitlán, San Miguel and Santa Ana del Valle, and
- Wood Carvings: Tonas and Nahuales. Handicrafts from the Central Valleys of Oaxaca.
These honorary distinctions include the protection of the origins, evolution, materials, processes, and designs of these handicrafts, as well as their production and trade criteria.
Oaxaca, the Hotspot of Investment Opportunities
The transformation of Oaxaca is due, in part, to its great projects, such as the Interoceanic Corridor of the Isthmus of Tehuantepec, which will link the ports of Salina Cruz and Coatzacoalcos. Generating 500,000 jobs in the state within 10 to 30 years, it will be a development engine for Oaxaca and all of Mexico.
With an investment of almost $7 million, this project intends to modernize both ports, increasing their transportation capacity to 1.4 million TEUS (twenty feet equivalent units) per year; reconstruct the railway, reducing travel times from nine to six hours; strengthen air connectivity for cargo transport; and optimize the infrastructure for the supply of natural gas. In addition, the planned road consolidation in Oaxaca with the highways to the coast and the Isthmus, will reduce travel times by half.
With these initiatives, we will be able to integrate our value chains into the Mexican export industry, taking advantage of international treaties with America, Europe, and Asia, which represent more than 1.7 million inhabitants.
These actions will also allow Oaxaca to reach its tourism potential. To this end, airport competitiveness strategies were implemented in 2019 resulting in the international airports of the cities of Oaxaca, Bahías de Huatulco and Puerto Escondido jointly achieving a record number of 2.5 million passengers.
Oaxaca is in fashion! Today, our state is a benchmark for development due to honest practices and a will to succeed. These elements are essential to Oaxaca achieving social peace, rule of law, and a competitive economy, where well-being is a reality for all people.
