Policy & Regulation

CAPIA Elects Mónica Ortega Pacheco as President for 2026-2029 Term

Ecuador Brief||Source: El Mercurio

Leadership Transition

The Cámara de la Pequeña y Mediana Industria del Azuay (CAPIA) — the Azuay Small and Medium Industry Chamber — elected Mónica Ortega Pacheco as its new president for the 2026-2029 term, according to reporting by El Mercurio, the province's leading daily newspaper.

ParameterDetail
OrganizationCAPIA (Cámara de la Pequeña y Mediana Industria del Azuay)
New presidentMónica Ortega Pacheco
Term2026-2029 (3 years)
JurisdictionAzuay province (capital: Cuenca)
Member count (est.)~300-400 SMI companies

CAPIA is one of the most influential regional business associations in Ecuador's southern highlands, representing small and medium-sized industrial companies that form the backbone of Azuay's non-mineral economy.

Regional Economic Context

The leadership transition occurs at a moment of measurable regional economic outperformance. Azuay province reported 22%+ sales growth in Q1 2026, significantly outpacing the national recovery rate of approximately 3.5-4.0% GDP growth projected by the Central Bank.

Azuay Economic IndicatorQ1 2026
Sales growth (YoY)22%+
Estimated provincial GDP share~6.5% of national
Provincial GDP (est.)~$7.5-8.0 billion
Industrial employment share~25% of provincial workforce
SMI share of industrial employment~60%

Several factors have contributed to Azuay's recent outperformance:

  • Post-crisis normalization: Recovery from 2024 security and energy disruptions
  • Manufacturing diversification: Automotive parts (Continental Tire Andina), ceramics, food processing, dairy
  • Remittance flows: Azuay is among Ecuador's top remittance-receiving provinces
  • Construction activity: Sustained real estate investment in Cuenca
  • Security premium: Provincial homicide count below 12 (2026 YTD); March 2026 violent deaths down 26% nationally

CAPIA — Role and Influence

CAPIA's mandate encompasses several functions critical to the regional business environment:

FunctionDetail
Business advocacyRepresentation before provincial and national government
Sector coordinationCoordination across SMI sub-sectors (textiles, food, metals, ceramics, services)
Credit accessPartnerships with CFN, BanEcuador, and commercial banks for SMI lending
Training and capacity buildingTechnical training programs for member firms
Export promotionCollaboration with ProEcuador on SMI export readiness
Regulatory feedbackInput on tax, labor, and sector-specific regulation

CAPIA has historically been vocal on issues including: energy reliability (particularly during 2024 rationing), IVA policy, labor flexibility reforms, and infrastructure investment in the southern highlands.

SMI Sector — Azuay Profile

The small and medium industry sector in Azuay is diversified across multiple sub-sectors:

Sub-sectorEstimated SMI FirmsKey Locations
Food and beverage~80-100Cuenca, Paute
Textiles and apparel~50-70Cuenca, Gualaceo
Metalworking and auto parts~40-60Cuenca industrial parks
Ceramics and construction materials~30-40Cuenca, Azogues corridor
Leather goods and footwear~25-35Gualaceo, Cuenca
Furniture and wood products~20-30Cuenca
Chemicals and plastics~15-25Cuenca
Services to industry~40-60Cuenca

The metalworking cluster in Azuay supplies the automotive value chain — including Continental Tire Andina (the province's largest single industrial employer) and domestic assemblers — and has significant growth potential under the Noboa administration's industrial policy priorities.

Policy Priorities — Likely Agenda

Although the incoming presidency's specific priorities have not been formally announced, CAPIA's historical positions and current regional conditions suggest several likely focal areas:

  • Energy security: Continued pressure on the national government for electricity reliability guarantees, particularly given Mazar/Paute hydroelectric risks
  • Road concessions: Advocacy around the Cuenca-Molleturo-El Empalme and Cuenca-Girón-Pasaje highway concessions announced by President Noboa
  • SMI financing: Expanding credit access through CFN and commercial bank partnerships
  • Export readiness: Supporting SMI firms' entry into regional export markets
  • Labor cost competitiveness: Positioning on utilidades, minimum wage, and social charge reforms
  • Tax policy: IVA treatment, tax simplification for SMIs, regime reforms

What to Watch

  • Inaugural priorities announcement — the new CAPIA presidency typically publishes a multi-year agenda within 60-90 days of taking office
  • Q2 2026 Azuay sales data — whether the 22% Q1 growth rate sustains or moderates; will frame the economic context for CAPIA's advocacy
  • Road concession tender timelines — CAPIA's positioning on the $50M+ Azuay highway concession package will be an early test of the new leadership's engagement
  • Provincial-national coordination — relationship between CAPIA and the Noboa administration's Ministry of Production; coordination on PPP infrastructure and industrial policy
  • SMI sector metrics — CAPIA typically publishes semiannual sector health indicators (employment, credit demand, capacity utilization) that provide a ground-level view of Azuay's industrial economy
  • Regional chamber coordination — CAPIA's engagement with Cuenca Chamber of Commerce, Cámara de Industrias de Cuenca, and the national CAPEIPI federation

Source: El Mercurio

Source

El Mercurio

CAPIAAzuaySMIregional businessleadership
Companies: CAPIA, Continental Tire Andina
Regions: Cuenca, Azuay
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