Video Q&A: CEMEX's Fernando González on the Ripple Effect of Mexico’s Energy Reform

Mexico’s energy reform implementation is underway after Round One of the bidding process began in August 2014, when companies proposed exploration, exploitation, and projects in partnership with state-run oil company Pemex.

After participating in the first Latin American Cities Conference in Monterrey on November 19, CEMEX’s new CEO Fernando González spoke with AS/COA Online’s Luisa Leme about the ripple effect of these investments and the mid- and long-term consequences of the energy reform. For González, changes in the energy and telecommunication sectors will be more significant for the Mexican economy than NAFTA was two decades ago.

The CEO explained that every sector will feel the effect of the reforms differently, and reduced energy costs and a new legal framework will provide certainty to investors. Areas such as infrastructure, education, and telecommunications will soon see the impact of reforms. "Whatever is related to infrastructure will impact our business positively. So we are very optimistic in this sense," he said.

The reforms could allow GDP growth to expand twice as fast than in the past three decades. But while the reforms represent an opportunity, they also require responsibility. This means Mexico must strengthen the rule of law, improve productivity, modernize infrastructure, and enhance its capacity to innovate, said González.

Also, González touched on local economies, specifically that of Nuevo Leon. The state leads in innovation and entrepreneurship in relation to other parts of the country, he noted. Plus, it has top educational institutions and an industrial tradition accompanied by a highly skilled workforce with a strong work ethic, he said.