U.S. investors are already planning trips to Venezuela in the wake of President Nicolás Maduro’s capture, signaling growing foreign financial interest in the country’s dramatic political change. Around 20 leading U.S. investors plan to visit Venezuela in March to explore opportunities in the oil, gas, construction, and tourism sectors, buoyed by the country’s economic potential following this weekend’s unprecedented military operation that ousted Maduro.
Charles Myers, chairman of the political risk advisory firm Signum Global Advisors, said that sentiment among investors he’s spoken with reflects “cautious optimism” about Venezuela’s future now that Maduro has been removed.
Myers explained that his firm had already been preparing investor groups for Venezuela opportunities, anticipating geopolitical shifts, and that some investors have even begun buying Venezuelan bonds in anticipation of change. (RELATED: Trump Warns Cuba, Colombia, And Mexico Could Be Next After Venezuela Operation)
“I think the centerpiece of Venezuela’s success, looking out 12 months or even 24 months, is foreign investment,” Myers said. “A big part of the Venezuela story, starting today, is foreign investment, especially in oil and gas, which is pretty straightforward, but there are massive opportunities in construction, in tourism.”
The U.S. capture of Maduro and Trump’s statements that the United States will temporarily control Venezuela and help stabilize it have renewed speculation about economic and structural reforms that could draw foreign capital — particularly in the energy sector, where Venezuela has vast oil reserves.
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Myers said it’s not the responsibility of his firm to take a “moral position” on whether it was right or wrong for the US to involve itself in Venezuela’s government, but rather to help the firm’s clients anticipate investment opportunities or mitigate risk due to geopolitical events
However, he added, his firm “very much expected” the situation in Venezuela would unfold as it has, and has been preparing investor groups to be ready to travel to the country when the opportunity presents itself. Signum previously hosted similar trips for asset managers and hedge funds to visit Syria and Ukraine.
“People have seen this coming, especially very smart investors, and many of them have actually bought bonds in anticipation of this,” Myers said. “But there’s a very strong degree of cautious optimism, even more so than we saw with Syria, just because this is a United States-directed action.”
“The United States will play a pivotal role in everything, especially the Venezuelan economy, starting today,” Myers added, “So, I think the reaction has been more enthusiastic than perhaps other situations like this.”
While political and security uncertainty remains high, so does early Wall Street interest in potentially lucrative sectors, especially if the country further stabilizes.