Economy

Telefónica will proceed with its planned exit from Venezuela despite recent political shifts in the South American nation, the company’s executive chairman, Marc Murtra, confirmed Tuesday.

Speaking during a presentation of Telefónica’s 2025 financial results, Murtra stated the company’s “roadmap” for leaving Venezuela remains unchanged, even as the country experiences a “novel geopolitical context.” “It is true that the situation in Venezuela has varied, but our roadmap has not. That does not affect what we do, our objectives, or the process we have set for ourselves,” Murtra said, according to a statement released by the company.

The decision comes as Telefónica continues a broader strategy of divesting from Latin American markets. The company has already completed exits from Colombia and Chile in 2026, following sales of its operations in Argentina, Peru, Uruguay and Ecuador in 2025. Mexico remains another key market where Telefónica is planning to reduce its presence, though Murtra declined to comment on specifics regarding the ongoing process there, citing the require for discretion during negotiations.

Telefónica reported losses of approximately 4.3 billion euros in 2025, partially attributed to restructuring costs and divestitures in Latin America. The company’s annual results were presented to media on February 24th.

While acknowledging the change in Venezuela’s political landscape following the recent shift in administration, Murtra indicated that Telefónica’s strategic direction will not be altered. This contrasts with a recent decision by BBVA to reassess its position in Venezuela following the change in leadership, according to reports.

Murtra also highlighted Telefónica’s focus on potential consolidation within the European telecommunications sector, noting “advances” toward facilitating such a process. He refrained from commenting on specific merger and acquisition activities, stating the company adheres to a strict policy of not discussing ongoing negotiations until they are finalized.

Venezuela’s franchise sector currently comprises 75 active brands, operating over 2,500 points of sale nationwide and generating more than 45,000 jobs, according to Raúl Angulo, president of the Venezuelan Chamber of Franchises (Profranquicias).

Angulo described the sector as “extremely resilient with a great capacity for adaptation,” categorizing it into three primary groups: gastronomy, services, and retail. He indicated a growing interest from both Venezuelan nationals residing within the country and those abroad in bringing foreign brands to operate under a franchise model.

Speaking on Circuito Éxitos 99.9 FM, Angulo stated that 2026 is anticipated to be “a very beautiful, very challenging year,” requiring the sector to translate decades of developed resilience and adaptation into “muscles of competitiveness.”

Despite the sector’s inherent adaptability, Angulo highlighted ongoing obstacles to business operations within Venezuela. He noted that registering a company in the country “remains very difficult” and called for simplification of administrative procedures. He further stated that establishing a company and commencing operations can take three to four months, although he acknowledged ongoing efforts to improve this timeframe, emphasizing that “there is still a long way to go.”

In late February 2026, Angulo reported that foreign companies are actively conducting due diligence and compliance checks regarding investment opportunities in Venezuela, specifically inquiring with Profranquicias about the process of investing in the country and securely entering the market. This interest follows a 2025 where the sector experienced mixed results, with some companies increasing sales and expanding their footprint while others maintained or reduced their presence, according to Angulo.

According to data cited by Angulo, approximately eight out of ten franchise businesses in Venezuela survive beyond five years, a significantly higher success rate compared to the one-in-ten survival rate for traditional Venezuelan startups. He cautioned, yet, that success is not guaranteed in any business venture, even within a franchise system.