Mexico has 299 state-owned or controlled entities

At the end of 2019, Mexico had 299 state-owned or controlled entities.

These entities include: majority state-owned companies (majority government-owned companies); decentralized organizations; public trusts, and productive companies of the state, including their subsidiary productive companies.

Majority-owned companies include development banking institutions, such as Banco del Bienestar, S.N.C. (Banco del Bienestar), an institution that promotes saving, use and promotion of technological innovation and financial and gender inclusion to people and companies that have limited access to credit.

In turn, decentralized organizations are independent legal entities that generally have technical, operational, budgetary and management autonomy, such as the Institute for the Protection of Bank Savings (IPAB), which seeks to guarantee bank deposits, mainly for small and medium-sized companies. savers, and provide solutions to banks with solvency problems, contributing to the stability of the banking system and safeguarding the national payment system.

State-owned 

Public trusts are public entities created to provide a public good or right at the service of a defined objective, such as the National Fund for the Promotion of Tourism (Fonatur), which seeks to identify sustainable investment projects in the tourism sector oriented towards regional development, job creation, economic development, social welfare and improvement of the quality of life.

State-owned productive enterprises are enterprises that are wholly owned by the government.

Meanwhile, the productive state companies of Mexico are Pemex, which through its state production subsidiaries, is engaged in the exploration, production, industrial transformation, logistics and commercialization of hydrocarbons, and the Federal Electricity Commission (CFE), which, Through its state production subsidiaries, it promotes the efficient operation of the electricity sector and open access to the National Transmission Network and General Distribution Networks.

Goals

Over the past decades, the Mexican government has taken measures to increase the productivity and competitiveness of the economy through deregulation, privatization, and increased private sector investment.

These measures include: (constitutional amendments and laws that allow the government to allow private participation in rail and satellite communications; legislation that allows Mexican private sector companies to engage in the storage, distribution and transportation of natural gas; the privatization of airports, seaports, and highways; civil aviation legislation that allows private companies to obtain 30-year concessions to operate commercial air transport services within Mexico, and constitutional amendments and legislation that empower the government to allow private sector participation in oil extraction and electricity production and distribution.

Private businesses

During the last years, the Congress of the Union has adopted a series of laws that increase the scope of private and foreign participation in key sectors of the Mexican economy.

For example, Fonadin serves as a financial platform to develop infrastructure projects with the participation of the public and private sectors.

State participation in the economy continues to be important in Mexico. State-owned or controlled entities are made up of financial and non-financial companies.

Non-financial entities can receive transfers, contributions and / or subsidies from the central government, when their income does not cover their production costs or to make physical or financial investments.

Pemex continues to be the most important state-owned company.

Energy

In 2013 Mexico carried out a constitutional amendment that affected the energy and telecommunications sectors. With regard to energy, the constitutional reform has, among others, the objective of promoting investment in the sector.

Consequently, some restrictions on private investment (national and foreign) were eliminated, except in activities considered strategic.

Despite the reform that tried to increase competition in the sector, both Pemex and the CFE continue to have an important participation in the market.

However, the State can grant contracts to private entities to participate in these activities, when state companies do not have the necessary technology or resources.