Current Participation and Challenges
Guillermo Zamarripa, CEO of the Mexican Association of Pension Fund Administrators (Amafore), explained that infrastructure currently accounts for 7% of the total investments made by Afores. Although there is an interest in increasing this participation, the regulatory environment still presents obstacles that limit resource deployment.
Government’s Stance on Public-Private Partnerships (PPPs)
Zamarripa noted that while the federal government has expressed its intention to move away from the PPP model, no robust new legal framework has been defined to facilitate mixed investments.
“We know that the construction industry is not against this general change in vision regarding public-private investments. However, there must be very clear rules. If there is uncertainty and doubts, there will be no investment. It’s important that there are clear rules of the game in this new environment,” Zamarripa commented.
Investment Breakdown in Infrastructure
Amafore’s president mentioned that approximately one-third of the infrastructure investments by Afores are through debt financing schemes, while the rest is channeled into structures where funds participate as partners in projects.
One recent example of investment under different schemes than PPPs is the operation of Iberdrola’s plants, where Afores participated as partners with the government through specific contractual agreements.
Attractive Sectors for Investment
Zamarripa highlighted the electricity sector as one of the most attractive within the infrastructure universe due to equipment deficits for energy generation and supply, especially with new companies looking to establish themselves in Mexico.
Efforts to Unlock Projects
In this context, Zamarripa emphasized the initiative of the General Law on Infrastructure for Well-being, promoted by legislator Alfonso Ramírez Cuéllar. The aim is to create a legal framework that facilitates mixed investments.
“The purpose is to expand the provisions of the law regarding the electricity industry, but also focused on infrastructure for Well-being. Our assessment suggests that it’s possible to overcome the limitations of PPPs with exceptional legislation not subject to acquisitions or existing construction laws,” Ramírez Cuéllar stated.
Future Investment Prospects
As of 2025, Afores manage resources equivalent to 23% of Mexico’s national GDP, and it is expected that this proportion will reach 50% in the next 25 years. This significant pool of savings, by legal mandate, must be invested in Mexico.
“Ideally, 8% of the incoming flow (in 2026) should go to infrastructure. As an industry, we need to maintain well-diversified portfolios; the challenge of investing in infrastructure is having good projects that are profitable to maintain the portfolio mix and possibly grow by a couple of percentage points next year,” Zamarripa explained.
Key Questions and Answers
- What percentage of Afores’ investments currently go to infrastructure? Approximately 7%.
- What challenges do Afores face in increasing their infrastructure investments? The main challenge is regulatory uncertainty and the lack of a robust legal framework for mixed public-private investments.
- What sectors are considered most attractive for Afores’ infrastructure investments? The electricity sector is highlighted due to equipment deficits and the arrival of new companies.
- What is the General Law on Infrastructure for Well-being? It’s a proposed legislative initiative aiming to create a favorable environment for mixed investments, particularly in the electricity sector and infrastructure.
- What proportion of Afores’ managed resources is expected to be invested in infrastructure by 2026? Ideally, 8%.
