investing in highly profitable Bolivian ipe hardwood and teak with little risk
Doing business in wood with South America is a profitable but very risky adventure. Especially in Bolivia there is in reality little to no rule of law. Corruption is fierce and furthermore there is a so called “community law” (in Spanish ley comunitaria). The latter has been implemented by the left wing MAS party in order to reinforce the local communities, especially the indigenous communities.
The bad news
This is merely a reaction on the previous imbalance of power between the white (from European descent) and the indigenous people. The political discourse tell us that ‘the white people’ used to have the power ruling the original indigenous people. This all changed when the new (indigenous) president came into power. As most South American leaders this new leader was pretty harsh on corruption, and as most South American countries after some time corruption was even more thrive. Together with the “community law”, corruption has become even more fierce; the local leaders could now act upon their interests at any given moment. If a white person – or even worse a foreigner –complains about such practices, he instantly is labeled as a new imperialist (besides being a racist). Also, for businesses, credit is virtually unavailable, spare parts for machinery are scarce and under socialistic governance, employees only need to present 1 single receipt to initiate an inflated or fake legal process against his employer resulting in an immediate seizure of financial assets (without prior notification). In short, business circumstances are not good.
The good news
The good news is that under these circumstances competition from other exporters are limited, so along with the high risks very healthy profit margins are to be made. Instead of sending money directly to Bolivia (very high risk), Hardydeck offers the possibility in investing in the Dutch Outlet (based in Holland). Hardydeck is an Outlet for the Bolivian based hardwood mill. So the owner of the lumber located in Antwerp is the Bolivian company. Once the lumber is soled – thru the Dutch Outlet subsidiary called Norbert Trading BV – the money is paid to Bolivia. In other words, all lumber is financed by the Bolivian company waiting to be sold on the European market. This business model closes the gap between the demand for high quality lumber (ipe and teak) but avoiding the risks involved doing business with South America directly.
If interested, please give us a call or send us an email:
- If you are an investor – you can finance the lumber once arrived in Antwerp (after inspection) or once loaded on board (payment against BL)
- If you are an installer or project developer – you can pre order with a modest downpayment made to Norbert Trading BV (not Bolivia) and enjoy preferential rates (starting from € 10.000)
- If you are all in and you want to join the company (starting from € 100.000)
This webpage has been written in April 2021, all proposals and inquiries are subject to the merits of the moment. Anyhow, there is a huge gap between the demand in Europe for high quality wood such as ipe and teak from South America but the risks of doing business directly are indeed very high. Hardydeck bridges that gap for you. Please contact us now