With an almost limitless potential, the region is poised to become a major energy supplier for the technology industry. The rise of artificial intelligence (AI) across all areas of human activity has brought with it an unprecedented increase in energy consumption, setting new benchmarks for electricity production to meet the growing demand of the ever-expanding network of data centers that sustain this technology.

According to estimates from the International Energy Agency (IEA), data processing centers currently account for 2% of global electricity consumption—about 536 terawatt-hours (TWh)—a percentage that will continue to grow as AI applications expand into new areas of daily life and as consumers spend more time using AI-powered devices.

In fact, consulting firm Deloitte forecasts that by 2026, AI data centers will consume 90 TWh per year—approximately one-seventh of the total energy projected for global data center infrastructure, which by 2030 could reach between 1,000 and 1,300 TWh. This scenario highlights one of the most important opportunities for Central America, as the region’s renewable energy potential becomes crucial—especially given its leadership in renewable generation worldwide. The challenge now lies in developing the necessary infrastructure to become a reliable and preferred energy supplier for the generative AI industry.

Initial Steps

According to the Latin American Energy Organization (OLADE) global ranking of renewable electricity generation, among the 20 countries with the highest share of renewables in electricity production, seven are from Central America: Costa Rica (the only country, alongside Paraguay, producing 100% renewable energy), El Salvador (84%), Panama (84%), Belize (76%), Nicaragua (74%), and Guatemala (71%).

While hydropower remains the dominant source of electricity generation in all these nations, other renewable sources are gaining ground. Costa Rica stands out, with 24% of its generation derived from wind and geothermal sources—an approach now being replicated by neighboring countries.

The region has made important strides toward consolidating its energy industry, including initiatives such as the Electric Interconnection System of Central American Countries (SIEPAC), which links national power grids; the Regional Operating Entity (EOR), which manages and operates energy transactions across borders; and the Regional Electricity Market (MER), which facilitates the buying and selling of power. Additionally, the region aims to coordinate national expansion strategies within a unified regional framework.

“These initiatives lay the groundwork for clean energy supply contracts that ensure the reliability required by data centers and AI operations,” explains Cindy Arrivillaga, director of banking and finance at the Guatemala office of the multinational law firm Arias. These developments highlight one of the strongest opportunities for Central America—to strengthen its position as a trusted provider of clean, high-capacity energy to the global technology ecosystem.

Preparing the Ground

However, despite its undeniable potential, Central America still faces significant challenges that must be overcome to achieve the goal of becoming a major energy production hub capable of meeting the demands of generative AI.

Diego Gallegos, a partner at Arias – Costa Rica, believes the objective is achievable, but only as a medium- to long-term process. “It requires sustained investment in infrastructure, modernization of the regulatory framework, and political and social backing at every stage of transformation. Costa Rica already has the foundation thanks to its renewable energy tradition, but to meet global demands, it must continue expanding,” he says.

Building new wind, solar, and geothermal power plants; modernizing transmission networks to ensure stable and uninterrupted supply; and strengthening regional interconnections to expand energy exchange and backup capacity are all essential actions. These strategies reflect key opportunities for Central America, particularly in positioning itself as a renewable energy hub supporting AI infrastructure.

“If these interconnections are reinforced and exportable surpluses generated, the region could advance toward that goal—although it must always be complemented by firm energy sources that guarantee supply stability,” adds Missuly Clark, senior associate at Arias – Panama.

The Necessary Framework

A crucial aspect of consolidating Central America as a secure energy supplier to the technology industry is the establishment of a robust regulatory framework. Several countries in the region have already adapted their laws to cover all aspects—from generation to distribution and interconnection—ensuring stable energy transfers across borders.

Costa Rica, a global pioneer in renewable energy and a Central American leader in the technology industry, has developed a strong legal framework led by the Law Authorizing Autonomous or Parallel Electricity Generation, the Law on Rational Energy Use Regulation, and Law 10.086 on the Promotion and Regulation of Distributed Energy Resources from Renewable Sources.

“Despite this framework, there are still opportunities to enhance the country’s energy development. New legislation should promote investment through tax incentives, regulate energy storage integration, modernize the grid to support bidirectional flows, and, above all, simplify bureaucratic procedures,” notes Gallegos. His remarks highlight another area of opportunities for Central America—to strengthen legal and regulatory alignment to attract sustainable investment and technological infrastructure.

Panama, one of the first nations in the region to embrace renewable energy, enacted Law 45 (2004) to promote investment in new renewable sources (solar, wind, geothermal, and biomass) and Law 44 (2011) establishing a special regime for wind farms. However, Clark believes there are still areas for improvement, such as the need for specific regulations on energy storage and sustainable data center operations involving AI.

“The creation of a framework linking energy efficiency, green certification, and investment attraction in digital infrastructure will be essential for positioning the country in this new scenario. Likewise, regional integration for exporting surpluses must be reinforced through clear rules that facilitate Central American electricity trade,” she explains.

Honduras, which enacted the Law for the Promotion of Electricity Generation from Renewable Resources in 2007 and amended it in 2013 to attract renewable investments, strengthened the initiative further with the 2014 General Law of the Electricity Industry, eliminating the monopoly of the National Electric Power Company (ENEE). However, the reform was reversed in 2022 through Decree 46-2022, which redefined electricity service as a public good and matter of national security.

“In general terms, Honduras has a relatively comprehensive legal framework to regulate the energy sector. The challenge lies in ensuring that regulatory entities enforce these laws clearly, coherently, and realistically, based on the state’s capacity to guarantee power supply,” says Mario Agüero, partner at Arias – Honduras. His assessment underscores the ongoing opportunities for Central America to strengthen governance, legal certainty, and energy management systems to meet global AI power needs.

In summary, the combination of abundant renewable resources, advancing interconnection systems, and growing institutional experience presents significant opportunities for Central America to emerge as a critical clean energy provider for the world’s AI-driven economy—if it can overcome infrastructural, regulatory, and political challenges with a long-term vision and regional cooperation.

The Dominican Republic once again became the subject of special attention on the international stage following the publication of the Investment Climate Statement 2025 report by the U.S. Department of State. The annual report assesses the attitude of foreign investors towards the business environment in the country and the conditions under which they are willing to make long-term or additional investments in the future. The new report highly praises the work of the Dominican government in the fight against corruption and its desire to maintain transparency. However, it also notes significant obstacles to making the Dominican Republic an attractive place for investments in the form of weak and poorly defined rules.

Annual Business Environment Reports by the U.S. Department of State

The Department of State annually publishes its Investment Climate Statements to inform American entrepreneurs and investors about the prospects for doing business in other countries. The Dominican Republic is not an exception and is included in the 2025 list. In this new report, the government of President Luis Abinader has been credited for its actions to improve the investment climate and curb corruption, which is among the biggest challenges that have plagued the country. In particular, in the report, the attention of the government of the Dominican Republic to institutional integrity, fiscal independence, and quality personnel has been positively noted. Nevertheless, the report also has a critical component, claiming that structural problems continue to restrain the Dominican Republic’s competitiveness and potential. In particular, the report singles out bureaucracy, weak rule of law and non-transparent policy implementation, and unequal competition between domestic and foreign companies as some of the key issues.

Anti-Corruption Initiatives Continue to Gain Recognition

The most positive evaluations, as can be seen from the text of the report, were, again, given to anti-corruption measures by the current administration. Since coming to power, Abinader has made it a priority to combat corruption and increase the transparency and accountability of all state institutions. “The current government has made a concerted effort to address corruption and transparency issues,” the report claims. Specific measures that have earned it recognition are the filling of top management positions with technically competent professionals and the approval of the law on civil asset forfeiture. The first of these initiatives is designed to restore confidence in the legal system and reduce impunity. In addition, fiscal and administrative independence of government agencies has been actively encouraged to minimize political influence on corruption cases. In this new work, the strengthening of governance by the current administration has also improved the Dominican Republic’s image among international organizations and investors. The report, however, concludes that the country needs to institutionalize these measures as much as possible so that the fight against corruption does not become a matter of political will. Otherwise, further significant improvements in the investment climate in the Dominican Republic will be difficult to achieve.

The Dominican Republic is Welcoming Foreign Investments

For its part, the Investment Climate Statement 2025 report acknowledges the open attitude of the Dominican Republic towards foreign direct investment (FDI), which is the stated strategy of the country’s national economic development plans. Thus, the government has approved a number of incentive packages for investors that include tax breaks on certain types of business, including renewable energy, tourism, free trade zones, and manufacturing. The country’s membership in the Dominican Republic–Central America–United States Free Trade Agreement (CAFTA-DR) is seen as one of the most significant advantages, which makes the Dominican Republic an attractive market for American investors and a partner in trade liberalization. In addition, the Investment Climate Statement 2025 report points out that there are almost no legal restrictions on the operation of foreign companies, and the country is open to foreign capital in most industries. There are also no limits on the size of ownership and the right to repatriate profits. Immigration and visa policies are also not overly restrictive and do not create a barrier to the arrival of business leaders and technical experts. In this sense, the report states that the Dominican Republic is one of the most open and liberalized markets in the Caribbean region in terms of business environment. Nevertheless, attracting the planned foreign investment inflows will be an arduous task due to long-standing inefficiencies that damage business confidence.

Investment Climate in the Dominican Republic: Problems Persist

At the same time, there are still a number of long-standing problems that prevent the Dominican Republic from joining the first league of investment destinations. The report, among other things, notes inconsistencies in the application of regulations, excessive bureaucracy, and other violations that are often ignored in the case of politically influential domestic companies. Foreigners often complain that, as a rule, they are at a disadvantage in competition with local investors and have to overcome a much larger number of bureaucratic barriers. This does not only speak about an unequal business climate in the Dominican Republic but also complicates business planning for the medium and long term. The report also notes the absence of a single set of rules for doing business for all provinces of the Dominican Republic. License applications, environmental permits, and inspections of certain facilities may be delayed for an indefinite period. In the eyes of investors, all these things make it impossible to plan.

Tax Reform and Need for Further Structural Changes

In addition, the Investment Climate Statement 2025 report raises the issue of tax reform in the Dominican Republic as one of the steps that would have a positive impact on the investment climate. In this regard, experts who were interviewed for the report’s preparation noted that the government should work to reduce high corporate tax rates and streamline the taxation and payment system. Structural reforms in the field of streamlining of bureaucracy, strengthening logistics, and modernization of infrastructure are also seen as a need. The report also recalls that the government of the Dominican Republic had previously developed a reform program, which had to be withdrawn after widespread public criticism at the end of 2024. This program, which envisaged a number of measures to reduce bureaucracy and optimize fiscal efficiency, was regarded as one of the keys to sustainable economic growth. However, the public rejection of the structural reforms became a warning that any further changes will require a consensus between the executive and the public.

Dominican Republic’s Investment Climate: Potential Sectors for Investment

For a positive investment climate in the Dominican Republic, the country still has considerable competitive advantages. This, in particular, refers to its geographic position. The country is in a strategic position at the junction of the main maritime communications between North America, Latin America, and Europe. The availability of a developed network of ports and airports, free trade zones, and support for renewable energy are all attractive for logistics, trade, and the location of manufacturing, textiles, and electronics production facilities. The tourism sector is also strong and stable, bringing billions of dollars a year. In particular, the renewable energy sector is actively supported by the government and is now one of the priorities of the energy transition. The Dominican Republic also has a young and relatively well-educated workforce, which is also a major advantage for foreign companies. All this would be enough to take decisive steps to improve the investment climate in the Dominican Republic if the existing barriers could be largely overcome.

The Importance of Political Will for Regulation

As noted in the report, the effective regulation of all this also largely depends on the will of the current political leadership. For this reason, the sustainability and institutionalization of the proposed and already implemented changes by the government in power in the coming years will be critical. The professional staff of the regulatory agencies still does not always have the necessary authority or resources to ensure uniform observance of the standards set in law. This often becomes a reason for concern for foreign investors, especially in infrastructure and energy. For the Dominican Republic, in the opinion of the report, it will be very important to show that it can maintain a stable, rule-of-law environment. This also concerns the implementation of new measures but is also related to the need to apply already existing rules and laws in the same way in all areas.

Investor Confidence in the Dominican Republic’s Investment Climate Needs Improvement

To conclude, further improvement of the investment climate in the Dominican Republic will require active cooperation between government and business. In particular, to increase trust among foreign investors, it is necessary to consolidate the successes already achieved in terms of transparency and the rule of law. Acceleration of administrative and production processes and, consequently, the removal of barriers to business expansion is also a question that must be resolved. The standardization of regulations, the acceleration of administrative services, and equal competition for all actors would become a clear signal to investors that the government is serious about changes. Equally important will be the modernization of infrastructure, in particular, transportation and energy, in order to remove some of the cost barriers noted by the authors of the report.

Summing up, the report Investment Climate Statement 2025 paints a mixed picture. The Dominican Republic, with its efforts to combat corruption and transparency, has gained more credibility and positions itself as a promising leader in the Caribbean region. However, without long-awaited changes in the economy, the ability of the country to show significant results in the area of the investment climate remains in doubt. In particular, the country still has to change a number of long-standing regulatory and institutional practices. Until this is done, it will not be able to fully unlock its considerable potential and create the necessary conditions for sustainable economic growth and improved international competitiveness.

The shift in user preference towards electronic payment methods, as well as the proliferation of digital products and services in the banking sector, are pushing transactional activity across Latin America into a phase of profound change. In the long run, the region will lead the electronic payments industry in Latin America, as consumers fully embrace digital solutions to manage their financial operations, according to a new report by the global consulting firm.

The annual report “The Future is Anything but Stable”, published by Global Payments at BCG (Boston Consulting Group) and which assesses global industry trends, predicts that Latin America’s use of digital payment methods will grow by an average of 7.9% per year between 2024 and 2029, a rate that is “almost twice as fast as the world average of 4% in the same period.

The figure means that Latin America is well on its way to not just participating but also to dominating key electronic payments industry in Latin America debates and, above all, in charting the future of financial products and services in the age of digitalization.

Electronic Payments Industry in Latin America: Global Analysis and Trends

As a reminder, the global electronic payments sector is estimated to reach revenues of US$2.4 trillion by 2029 but will register an annual decline in growth, settling at 4%. The trend of year-over-year growth deceleration is taking place even as the industry is undergoing a historic reconfiguration under the impact of the implementation of frontier technologies and business model reinvention, with a view to fully meeting customer expectations.

Artificial intelligence, as well as other digital assets, solutions, and services are key here, such as agentic artificial intelligence (AI), which the BCG Global Payments report recognizes as one of the main tools for reinventing how people and businesses buy, sell, borrow and lend money in the years to come, especially in the retail sector, along with digital currencies and next-generation fintech business models.

In fact, agentic AI is expected to change the rules of the game for e-commerce and consumer transactional behavior in particular. For those unaware, an agentic AI system is an AI that can achieve a goal with limited or no supervision. In short, an autonomous, intelligent system, similar to a human agent. Going back to digital spending and purchasing activity, the study forecasts that agentic AI may generate more than one trillion dollars in e-commerce revenues globally. In the United States, 81% of surveyed consumers say they will use an agentic AI tool to make online purchases, a clear indication that, in the coming years, this tool will be able to influence over half of all online transactions, according to the report.

Latin America: Transactional Activity Expansion

Latin America, meanwhile, is expected to ride this wave, taking the lead in electronic payments industry in Latin America thanks to regional companies’ abilities to adapt to these and other digital trends and turn them into tangible value for all customers in this increasingly competitive, highly digitalized segment. In this regard, the report says the new digital payment solutions will continue to grow in the region at a “solid” pace and are expected to move at an estimated growth rate of 8% per year until 2029.

“The evolution of new electronic payments in Latin America is set to continue positively in the coming years”, states Gonzalo Troncoso, BCG Managing Director and Partner and co-leader of the Global Payments practice. To some extent, the region will be outpacing the rest of the world in this respect, since the adoption rate for electronic payment methods there is set to reach 7.9% in the coming years against a global average of 4%: what the report calls a “very robust expansion”.

Specifically, the increase in e-payments adoption can be explained by such factors as widespread mobile technology adoption for processing transactions, enabling the development of digital wallets and P2P payments. Then, some government policy changes and regulations are intended to “facilitate” digital financial services, and then, the region’s fintech firms, renowned for their agility and creativity, are providing new payment options that are fast, secure, and easy to use.

Latin America, in short, is quickly becoming a regional leader in fintech activity and generating significant volumes of investment for e-payments industry in Latin America products, solutions, services, and companies.

Electronic Payments Industry in Latin America: National Trends

In fact, at the country level, one may highlight the example of the Dominican Republic, where the process of implementing and adopting electronic payment systems is advancing at a significant pace. The initiatives of the BC (Central Bank) to upgrade and reinforce the country’s digital finance ecosystem are key here. Consumers are being encouraged to fully embrace digital channels for their banking operations, to the detriment of more traditional financial channels. At the moment, more and more Dominican bank clients make use of electronic channels to:

• Process transfers
• Pay for services, as well as goods and other purchases
• Withdraw and deposit money at ATMs
• Buy goods and services at physical or virtual POS

The BC’s statistical evidence of how things are rapidly changing in the retail payments segment shows that, between 2008 and 2021, the volume of electronic payments recorded a spectacular increase of 503.5%, while the use of checks plummeted by -33.7%.

To be more specific, in 2008 there were 76.5 million electronic payments, compared to only 32.0 million checks, while by 2021 there were 462.0 million electronic payments and 21.2 million checks.

Market share data in that same time interval is also very revealing, for in 2008 the volume of electronic payments represented 70.5% of total operations, while in 2021 this figure had grown to 95.6% while only 4.4% of all transactions were by check. Electronic transactions, in short, have not just seen an increase in their numbers but are now considered to have reached maturity in the Dominican market.

Dominican consumers are said to be increasingly likely to use their bank accounts for retail payments, whether through the use of debit and credit cards at the POS, ATMs, or online. Financial technology companies (fintechs) have been a leading force behind this transformation. Payment fintechs in particular have grown by 23% a year and accounted for US$176 billion in revenues in 2024 alone. In 25 years, more than US$135 billion of equity capital has been raised by these businesses.

Payment fintechs account for almost half (45%) of all fintech revenues, while the top performers have grown three times faster than incumbent banks. This success is partly due to the fact that fintechs have focused on specific opportunities, and on investing and innovating rapidly to meet rapidly changing consumer expectations.

These forces put increased pressure on companies that are not active in the fintech space and which have not adjusted their business models to keep pace with market evolution. Companies and other financial institutions are increasingly compelled to use cutting-edge technology to keep up with the e-payments industry in Latin America growth and remain competitive.

AI Agents and E-commerce: The Future of E-commerce in Latin America

BCG’s report also underlines the agentic AI’s potential to completely reinvent e-commerce in Latin America. An agentic AI system is capable of using machine learning techniques to achieve a given objective with only a small amount of supervision or guidance, operating, so to speak, automatically and independently, in a manner very similar to the work of a human agent.

In terms of how it could have an impact on online buying activity, for example, the BCG report anticipates it will be used to provide product and service recommendations to consumers on the basis of previous purchases and use data, to automate non-optional purchases and transactions, and to increase the overall efficiency of the online shopping experience.

Agentic AI is also being used by a growing number of online merchants, as well as banks and other retail financial service providers, to decrease friction in the buying and checkout process, reduce the costs associated with online shopping, and increase fraud prevention and security.

As such, it is estimated that within the near future, AI agents will have the capacity to influence over half of all online sales. In short, this tool’s potential to fully personalize the customer experience and customize retail banking services according to their purchasing history and current transactional behavior.

Future Scenarios in the Electronic Payments Industry in Latin America

Summarizing and looking to the future, the electronic payments industry in Latin America will continue to grow at a rate well above the world average, at least for the next decade.

The rate of growth will be greater in the following cases:

• Fintech companies offering new services and solutions to financial sector customers
• SMEs and other companies which engage in digital finance, thus offering their services through mobile and other digital payment channels
• Agencies and central governments encouraging their citizens to adopt these types of digital financial solutions and using payments as a policy tool.
• Firms and investors, to be on the winning side of this digital growth, must therefore keep their eyes open and make sure to leverage these and other technological tools to remain relevant and competitive, and adapt business models and strategies to keep in line with customers’ preferences and needs.

In conclusion, companies that remain digitally stagnant risk not being left behind and losing market share and revenues to those that will incorporate these digital solutions into their operational model and set of activities. As a result, we can say that Latin America’s electronic payments industry in Latin America is growing and will continue to do so on an accelerated trajectory for at least another decade.

Mexico stands at a pivotal moment in its industrial development, aiming to significantly increase its participation in the global semiconductor supply chain. The country’s strategic location, trade agreements, and highly skilled workforce position it as a potential hub for semiconductor manufacturing and advanced electronics. However, as the Undersecretary of Industry and Commerce of the Ministry of Economy (SE), Vidal Llerenas, emphasized, achieving this goal requires not only leveraging existing strengths but also addressing structural weaknesses that have limited domestic industrial integration.

During the inauguration of Chapter 5 of the Mexico–U.S. Semiconductor Forum, Llerenas presented Plan México, a comprehensive strategy designed to enhance infrastructure, financing, talent development, and strategic sector growth. The plan seeks to integrate Mexico more firmly into the global semiconductor supply chain while simultaneously diversifying industrial development and increasing domestic content in high-value exports.

Diversifying Industrial Development Beyond Traditional Hubs

Historically, Mexico’s advanced manufacturing clusters have been concentrated in cities such as Guadalajara and Tijuana. These regions have become renowned for electronics and information technology manufacturing, but relying heavily on a few hubs creates vulnerabilities and limits broader economic development.

Llerenas highlighted that Mexico must expand these value chains to other regions, ensuring that more parts of the country are connected to complex production ecosystems. “We want regional development to reach more parts of the country, so that more locations are connected to these complex value chains,” he explained. By distributing investment and infrastructure more evenly across the nation, Mexico can build resilience, reduce regional disparities, and strengthen its position in the global semiconductor supply chain.

Addressing Low Domestic Content

One of the country’s most pressing structural challenges is its low domestic content in exports. Despite Mexico being one of the world’s most sophisticated exporting economies, much of its high-value output relies on imported inputs, including chemicals, plastics, and metal components essential for semiconductor manufacturing.

This dependence on foreign inputs limits Mexico’s ability to produce higher-value-added products and fully capitalize on the opportunities presented by the global semiconductor industry. To overcome this, Plan México emphasizes strengthening domestic industries such as chemicals, metalworking, and plastics. By building local capabilities in these sectors, Mexico can increase the domestic content of its exports, reduce vulnerabilities from supply chain disruptions, and enhance its strategic role in North American manufacturing.

A Three-Dimensional Approach: Horizontal, Regional, and Vertical

Plan México is structured along three complementary dimensions: horizontal, regional, and vertical.

The horizontal dimension focuses on improving investment conditions, including the development of a functional financial system, modern infrastructure, and streamlined regulatory processes. This creates a conducive environment for domestic and foreign investors alike.

The regional dimension addresses the uneven concentration of industrial clusters, as discussed earlier, aiming to expand value chains to new regions and ensure nationwide integration into global production networks.

The vertical dimension targets both traditional and emerging sectors. While Mexico has a long history of exporting textiles, footwear, and toys, the future lies in high-value industries such as medical devices, pharmaceuticals, electronics, and semiconductors. By strengthening vertical integration in these sectors, Mexico can produce more sophisticated components domestically, creating a robust ecosystem that supports innovation and higher-value manufacturing.

Enhancing Regional Integration Within North America

Llerenas emphasized that Mexico’s success in the semiconductor industry is closely tied to regional integration under the USMCA framework. The concept of “Made in Mexico” should be understood in a trinational context, reflecting the interdependence of supply chains across Mexico, the United States, and Canada.

However, the Undersecretary warned that this integration is not sustainable without a strong domestic productive base. Dependence on imported inputs reduces the effectiveness of regional supply chains and limits the economic benefits that Mexico can capture. Strengthening domestic production capabilities is essential to ensure that Mexico contributes significantly to the global semiconductor supply chain, rather than merely serving as an assembly hub dependent on foreign components.

Leveraging a Skilled Workforce

One of Mexico’s most significant competitive advantages is its industrial workforce. The country boasts a pool of skilled labor capable of operating complex manufacturing processes, from semiconductor fabrication to electronics assembly.

Llerenas highlighted several initiatives to maintain and enhance this workforce, including dual education programs, micro-credential initiatives, and specialized technical training. These programs aim to ensure that Mexican workers are prepared for the demands of high-tech manufacturing, making the country a more attractive destination for foreign investment in semiconductors and related industries.

“This country is fundamental not only because of its location and trade agreements but also because of our ability to participate in this race… our greatest competitive advantage at this moment is an industrial workforce of enormous capacity,” Llerenas stated. Indeed, a skilled workforce not only improves productivity but also positions Mexico as a reliable partner in the global semiconductor supply chain, capable of delivering high-quality outputs in a competitive timeframe.

Meeting the Challenge of Asia

Mexico’s ambitions in semiconductors are inevitably compared with Asia, the global epicenter of semiconductor production. Countries like Taiwan, South Korea, and China dominate the industry due to advanced manufacturing technologies, robust domestic ecosystems, and significant government support.

To compete, Mexico cannot rely solely on tariffs or its geostrategic location. Instead, it must create conditions for industrial efficiency, technological innovation, and high domestic content. By investing in upstream industries, modernizing production facilities, and cultivating a workforce trained for high-tech manufacturing, Mexico can position itself as a competitive alternative in the global semiconductor supply chain.

Infrastructure and Strategic Investments

Plan México also highlights the critical role of infrastructure in enabling industrial competitiveness. Modernized transportation networks, advanced industrial parks, reliable energy supply, and logistics hubs are essential for reducing production costs and improving efficiency. Investments in these areas not only support domestic manufacturing but also attract multinational corporations seeking to diversify supply chains away from Asia.

Furthermore, strategic investments in chemicals, electronics, and metals industries are expected to enhance domestic content and enable Mexico to participate more fully in the higher-value segments of the semiconductor market. By aligning these investments with workforce development programs and regional expansion strategies, Mexico aims to create a self-reinforcing ecosystem capable of long-term growth.

Outlook for Mexico in the Semiconductor Industry

Mexico faces both a historic opportunity and a significant challenge. With careful planning, targeted investments, and effective workforce development, the country can deepen its integration into the global semiconductor supply chain and secure a more strategic role in North American and global manufacturing networks.

By increasing domestic content, diversifying industrial development, and expanding regional value chains, Mexico can transform from a participant in assembly and low-value production to a producer of high-tech, high-value-added semiconductor components. This shift will not only strengthen Mexico’s industrial base but also ensure that its economy captures a larger share of the economic benefits of global trade in advanced manufacturing.

In conclusion, Mexico’s strategy to strengthen its position in the semiconductor industry is multidimensional, involving infrastructure development, regional diversification, domestic content enhancement, and workforce training. With sustained commitment and strategic investments, Mexico has the potential to emerge as a key player in the global semiconductor supply chain, competing effectively with Asia and contributing significantly to regional and global industrial networks

Costa Rica has launched the first-ever Costa Rican tourism guide. This guide is a strategic tool for positioning the country as a global leader in sustainable tourism, attracting responsible investment and generating inclusive development in the sector, taking advantage of its competitive advantages. Costa Rica’s first-ever tourism investment guide is being launched with the aim of establishing itself as the preferred destination for sustainable tourism investments that also generate economic growth and jobs.

The guide’s launch was celebrated as part of two significant anniversaries. First, World Tourism Day was commemorated, and second, Costa Rica Tourism Institute (ICT) celebrated 70 years of history, coinciding with the presentation of the “Tourism Doing Business – Investing in Costa Rica” guide, which is a key tool for strengthening tourism investment processes in Costa Rica and the industry’s competitiveness.

The Costa Rican tourism guide is the result of a collaboration between the United Nations World Tourism Organization (UNWTO), the Costa Rican Tourism Institute (ICT), the Costa Rican Foreign Trade Promotion Agency (PROCOMER), and the Development Bank of Latin America and the Caribbean (CAF).

Offering investors a strategic vision

The Costa Rican tourism guide is a strategic tool that provides investors with information on the general context for tourism investment in the country. The guide highlights the macroeconomic conditions, the competitiveness of the destination, and its comparative advantages over other countries. In addition, specific investment opportunities in different sectors are identified, such as hotels and resorts, tourism infrastructure, complementary services, and sustainable tourism projects.

Natalia Bayona, Executive Director of the United Nations World Tourism Organization (UNWTO), shared:

“Costa Rica is already a well-consolidated tourist destination. Its stability, sustainability leadership, and robust infrastructure allow investments to be transformed into high-value projects.”

The Costa Rican Minister of Tourism, William Rodríguez, also commented on the importance of this strategic tool and its impact on the national tourism industry:

“This Investment Guide represents a key step in our national strategy to attract responsible capital and consolidates Costa Rica as an ideal destination for those investors who are committed to sustainable development”.

Human talent is a fundamental pillar

The Costa Rican tourism guide is a fundamental tool that positions the country’s human talent as one of its strengths and most recognized competitive advantages. Mónica Umaña, Manager of Foreign Direct Investment Attraction at PROCOMER, stated:

“The guide highlights one of our country’s most recognized strengths: the quality of our talent. PROCOMER continues to strengthen initiatives that promote specialized human capital, aligned with incentives for companies in the tourism sector.”

Sustainability as one of Costa Rica’s key assets

The Costa Rican tourism guide also highlights the main strength and one of the most recognized competitive advantages of the country, sustainability. Óscar Rueda García, Director of Tourism at CAF, declared:

“Costa Rica has been a paradigm of sustainable tourism long before it became a global trend. This guide arrives at a critical moment to stimulate new developments while maintaining our commitment to being a sanctuary for nature-focused tourism.”

Five reasons to invest in Costa Rica

The Costa Rican tourism guide presents five main reasons to invest in the country, which are fundamental to understanding its positioning as one of the most competitive destinations in the region and globally, as they allow investors to position their resources in places where they generate value for their own benefit and for the destination in the long term.

In addition, this strategic guide offers six chapters that provide a clear picture of the Costa Rican market. The first of them refers to the macroeconomic context, which analyzes the national and regional environment, taking into account the strategic weight that tourism represents for Costa Rica. In this way, the investor can have an approximate view of tourism’s contribution to GDP, generation of direct and indirect employment, foreign exchange income, and the importance of tourism in the country’s economy.

The second chapter presents the general legal and regulatory framework for investment. The tax system is also one of the sections that investors will find in this guide, as it is an important point to take into account in the decision-making process. This publication also includes, among other aspects, an analysis of the main requirements for the creation of new legal entities, as well as regulations that are directly related to the tourist offer, all of which will be of great importance for the entire process of entry into the market.

On the other hand, the investment panorama in Costa Rica shows the behavior of foreign direct investment in the country, focusing specifically on the main trends in the last decade, the main sources of investment and the most relevant investment areas in the tourism sector, as well as opportunities with greater growth potential for those looking for long-term profitability.

Costa Rica’s tourism competitiveness is based on several factors such as infrastructure and connectivity as well as diversity of its tourism offer. This is how the country’s assets such as eco-lodges, natural areas, adventure tourism, gastronomy and wildlife tours, rural tourism, and others are demonstrated. With this information, it is also possible to determine the comparative advantages that Costa Rica has with respect to other destinations.

The financing alternatives with CAF refers to information on the financing and technical assistance mechanisms that CAF has and that are currently available for the execution of sustainable tourism projects.

Finally, the public sector investment initiatives include investments and investment projects of the current government, so the private sector is given an overview of infrastructure improvements such as docks, tourist police stations, and accessible trails. This information also serves to identify opportunities for the private sector to carry out projects and those in which public-private partnerships can be designed.

The Costa Rican tourism guide can be consulted free of charge in digital format and is available on the official websites of ICT, PROCOMER, UNWTO and CAF.