In recent years, renewable energy in Costa Rica has become a global beacon of sustainability, proving that a small nation can lead the way in renewable energy and sustainable development. Over the past five years, Costa Rica’s historic achievement of generating 98% of its electricity from clean sources has solidified its position as a leader in renewable energy in Latin America. This extraordinary feat is a testament to the country’s commitment to environmental preservation and its forward-thinking approach that intertwines sustainable practices with economic growth. Highlighted in the 2024 Economy and Development Report (RED) by CAF, Costa Rica has redefined what it means to be environmentally responsible while fostering a thriving economy.

A Commitment to Clean Energy

Costa Rica’s push for clean energy is rooted in the belief that sustainability is the key to environmental preservation and long-term economic prosperity. The country’s energy mix primarily includes hydropower, wind, solar, and geothermal energy. With abundant natural resources, Costa Rica has effectively leveraged these to ensure that nearly all of its electricity comes from renewable sources, reducing its carbon footprint and setting an inspiring example for the world. The success of renewable energy in Costa Rica is also seen in its high residential electrification rate, with 70% of households using electricity for cooking and heating their homes. This transition to cleaner energy reduces reliance on firewood, helps preserve forests, and improves public health by reducing indoor air pollution.

This commitment to renewable energy in Costa Rica has placed the country in a unique position within the global arena, especially as businesses and consumers become more environmentally conscious. International companies and investors are increasingly looking to operate in countries prioritizing sustainability. Costa Rica’s commitment to clean energy has made it an attractive destination for foreign direct investment. According to recent data, Costa Rica saw a 24% increase in foreign direct investment in 2023, and over 59 multinational companies have set up operations in the country between 2023 and 2024. The ability to attract such investments speaks volumes about Costa Rica’s ability to integrate sustainability into its economic framework while creating new job creation and development opportunities.

Economic Growth Driven by Sustainability

Costa Rica’s success is a remarkable example of how countries can decouple economic growth from carbon emissions. As the world increasingly embraces sustainability, industries prioritizing eco-friendly practices are reaping the benefits. This is evident in developing key export sectors such as coffee and cocoa in Costa Rica. In 2024, coffee exports grew by an impressive 16%, while cocoa exports increased by 20%. This surge can be attributed to the growing global demand for sustainable products as consumers become more conscious of their purchases’ environmental and social impacts. Furthermore, renewable energy in Costa Rica has benefited its economy and the regional energy market. Costa Rica exports surplus renewable energy to neighboring countries via the Central American Electrical Interconnection System (SIEPAC), strengthening the region’s energy security, promoting economic development, and environmental stewardship across borders.

Another key initiative strengthening Costa Rica’s position as a regional leader in green energy is the development of the Central American Electrical Corridor, which includes more than 50 charging stations for electric vehicles along major trade routes. This infrastructure is vital for adopting electric mobility, providing a sustainable transportation solution that aligns with Costa Rica’s commitment to reducing carbon emissions.

Innovation and Industrial Transformation

In addition to its success in renewable energy, Costa Rica has become a hotbed for green innovation and industrial transformation. Several cement plants in the country have begun implementing carbon capture technologies, which are helping reduce the carbon emissions typically associated with this industry. This initiative exemplifies how Costa Rica is leading in clean energy production and promoting innovation in carbon reduction across various sectors. The government has also been proactive in supporting the development of green technologies. The Costa Rican Foreign Trade Promoter (Procomer) has allocated $40 million to fund startups focusing on green hydrogen and optimizing electrical networks through artificial intelligence. These investments highlight the country’s commitment to fostering new technologies and industries crucial to achieving sustainability and addressing climate change. Green hydrogen, in particular, holds great promise as a clean energy source that can help decarbonize hard-to-abate sectors like transport and heavy industry.

The Path to a Fully Renewable Latin America

While Costa Rica’s accomplishments are impressive, the road to a fully renewable Latin America is still challenging. According to the RED 2024 report, the region needs to increase its renewable energy capacity by 3.5 times by 2040 to meet its climate goals. However, Costa Rica’s experience offers a model for other regional nations. The key to success lies in public-private partnerships, bioindustrial innovation, and a commitment to sustainable development across all sectors. Costa Rica’s promotion of ecotourism is another area where the country has found a perfect balance between economic growth and environmental stewardship. By leveraging its rich biodiversity and natural beauty, Costa Rica has become a world leader in ecotourism, attracting millions of tourists yearly and promoting conservation’s importance.

Sustainability as a Competitive Advantage

Costa Rica’s commitment to sustainability is not seen as a burden but as a competitive advantage. As Adriana Acosta, director of Esencial COSTA RICA, aptly says, “Sustainability is not a cost; it is our competitive advantage.” This perspective has shaped Costa Rica’s approach to development, and it is a sentiment echoed by the Minister of Environment, Franz Tattenbach, who emphasizes, “Each kilowatt exported strengthens democracy.” These statements reflect the belief that sustainability is not just an environmental issue but an integral part of national security, economic prosperity, and global influence.

Costa Rica’s leadership in renewable energy inspires the world, showing that it is possible to transition to a low-carbon economy while promoting social well-being and economic growth. The RED 2024 report concludes with a powerful message: “The future is renewable, or there is no future.” Costa Rica is proving that a sustainable future is achievable and beneficial for the environment, the economy, and society.

The Global Impact

The lessons Costa Rica has learned, and the innovations it has embraced do not just apply to Latin America. The country’s success story has reverberated around the globe, proving that sustainable development and economic growth can go hand in hand. As the world grapples with the urgent need to address climate change, Costa Rica is showing that the future of energy is renewable, and it is possible to create a thriving, green economy that benefits everyone.

Costa Rica’s leadership in renewable energy in Costa Rica and sustainable development is a powerful reminder that every country, regardless of size, can contribute to the global effort to protect the planet. Through innovation, commitment, and collaboration, Costa Rica is shaping a greener, more sustainable future for future generations.

The government of the Dominican Republic is actively studying the possibility of establishing a new incentive framework for high-tech industries and transforming its free trade zones into advanced technological parks aimed at attracting cutting-edge manufacturing investments. This initiative follows an in-depth analysis of global best practices and the lessons learned from countries that have successfully nurtured their technology sectors. Víctor Bisonó (Ito), the Minister of Industry, Commerce, and SMEs, revealed this strategic move and is leading the charge to position the Dominican Republic as a major player in the global technology industries.

Strategic Focus on Semiconductor Manufacturing and Advanced Technology

Bisonó stated that this new framework is one of three strategic lines central to a broader, ambitious roadmap to attract investments in semiconductor manufacturing and other advanced technologies. The other two strategies focus on creating a robust public policy framework to enhance the country’s competitiveness and precisely target semiconductor investments. By doing so, the Dominican Republic aims to create a more diversified and resilient economy centered around technology industries and their transformative impact on various sectors.

Dominican Republic’s Unique Position in the Global Semiconductor Market

The minister emphasized that the Dominican Republic is uniquely positioned to meet the growing global demand for Advanced Technology Processes (ATP) operations that require “legacy” chips. These older-generation semiconductors are critical in several key industries, particularly in aerospace, defense, and industrial applications, where they continue to play an essential role despite being overtaken by newer chip technologies in other fields. This presents an opportunity for the Dominican Republic to capitalize on its strategic location and growing technological capabilities. He also highlighted that the country is already making itself a hub for this technology industry segment.

The National Semiconductor Industry Promotion Strategy (ENFIS)

The government has taken a significant step to support this initiative by formulating the National Semiconductor Industry Promotion Strategy (ENFIS). This initiative brought forward under Decree 324-24, made the semiconductor industry’s promotion, innovation, and development a national priority. The goal is to attract investments in semiconductor manufacturing and establish the Dominican Republic as a key global player in the technology industries, generating long-term economic growth and job creation. This forward-thinking approach seeks to leverage the country’s strengths and ensure that the technology industries in the Dominican Republic are prepared to meet future demands.

Minister’s Vision for Technological Growth in the Dominican Republic

“This will be an ambitious roadmap, designed in close collaboration with global stakeholders, which will significantly strengthen our industrial ecosystem and open a new chapter in the country’s technological development,” Bisonó explained during his speech at the monthly luncheon of the American Chamber of Commerce. He stressed that semiconductor manufacturing is the backbone of the economy of the future, underlining its central role in the growth of industries like electronics, automotive manufacturing, telecommunications, and renewable energy. The Dominican Republic is already positioned to become a key strategic partner for the United States in this domain, particularly in providing resilience to U.S. supply chains. This is especially important in light of semiconductors’ critical role in national security and the country’s future economic stability.

Joining International Initiatives to Enhance Technological Growth

The government’s commitment to this vision is also reflected in its readiness to join international initiatives such as the CHIPS Act, a U.S. federal program designed to incentivize semiconductor manufacturing in North America. “The draft of the ENFIS is already complete. We are ready to join initiatives such as the CHIPS Act, which ensures financing and opens up new opportunities for technology industries in the Dominican Republic,” Bisonó stated. He emphasized that the Dominican Republic’s strategic location and competitive cost structure make it ideal for global tech companies and U.S.-based firms looking to diversify their supply chains in a post-pandemic world.

Strengthening Ties with the United States

In his remarks, Bisonó further affirmed that the United States sees the Dominican Republic as its most prominent ally in the Caribbean and the broader region, strengthening the geopolitical and economic ties between the two nations. The Dominican Republic’s growing prominence in the global technology industries also aligns with broader U.S. objectives to secure and enhance its semiconductor manufacturing capabilities in the face of geopolitical uncertainties. In 2024, Dominican exports to  the United States reached US$6.915 billion, reflecting a 7% year-on-year growth compared to 2023. This strong economic performance highlights the deepening trade relationship between the two countries. It underscores the Dominican Republic’s increasing role as a key player in global trade, particularly in sectors related to technology industries.

Focus on Innovation, Education, and Workforce Development

The government’s focus on fostering technology industries in the Dominican Republic is aligned with its broader economic vision. By capitalizing on the global demand for semiconductors, the country aims to attract foreign direct investment and build an ecosystem that nurtures local technology startups, educational institutions, and innovation centers. These efforts are intended to create a thriving technological ecosystem that can compete globally while providing high-skilled jobs and contributing to the country’s economic diversification. As more international companies recognize the potential of the Dominican Republic’s strategic initiatives, the country will continue strengthening its position as a technology hub in the Caribbean region.

Investment in Human Capital for Technological Advancement

Bisonó concluded his speech by emphasizing that the Dominican Republic’s investment in technology industries is about attracting and investing in human capital. “This initiative will pave the way for the development of specialized talent and the growth of a highly skilled workforce that will be at the forefront of future technological advancements,” he said. This is part of the government’s commitment to creating an environment where innovation can thrive and where the technology industries in the Dominican Republic can play a critical role in shaping the future of the global economy.

This was announced by the company’s CEO, Ted Sarandos, at the National Palace.

On Thursday, February 20, 2025, Netflix’s CEO, Ted Sarandos, announced during the “La Mañanera del Pueblo” press conference with President Claudia Sheinbaum that the Netflix investment in Mexico would total one billion dollars over the next four years to produce films and TV series in the country. The announcement was made at the National Palace.

“President Sheinbaum, at Netflix, we share your vision of a vibrant and prosperous Mexico full of growth and opportunities, and we want to help make that a reality. That’s why I’m pleased to announce that Netflix will invest one billion dollars in the production of TV series and movies in Mexico,” said the executive in the Treasury Hall.

The Economic Impact of the Netflix Investment in Mexico

Ted Sarandos emphasized that this Netflix investment in Mexico will contribute to the growth of Mexico’s audiovisual industry, which contributes 3 billion dollars to the country’s Gross Domestic Product (GDP), “and will help create jobs and opportunities across the country.”

“The Netflix investment in Mexico will be focused on local productions, but we will also be bringing global productions to the country,” Sarandos stated.

A Special Relationship Between Mexico and Netflix

He highlighted that Mexico “holds a special place in Netflix’s history,” as it was in Mexico that Netflix produced “Club de Cuervos” ten years ago, the first production outside of the United States. This marked a significant milestone for the platform’s expansion into international content production. Additionally, Sarandos proudly mentioned the production of “Roma,” the film directed by Mexican filmmaker Alfonso Cuarón, which became Netflix’s first movie from Mexico to win an Academy Award for Best Foreign Language Film.

Furthermore, the company opened its Latin American headquarters in Mexico City in 2020, while Sheinbaum was the head of government in the capital. Since then, Netflix’s workforce in Mexico has expanded more than tenfold.

“Being local is very important for us, so all of our series and movies are created in collaboration with local production companies and partners. Every single one means that we are investing in the creative community and supporting talented people,” Sarandos added.

Mexico’s Growing Role in Global Entertainment

President Sheinbaum said, “Mexico is so remarkable that they decided to invest here.”

She went on to emphasize that approximately 300,000 jobs had been created after Netflix’s arrival in Mexico City, stating, “This is not just about showcasing Mexico to the world through Netflix series, which is certainly crucial for Mexico to be seen globally, but also about the immense economic development and the number of jobs created by production and tourism, of course.”

Netflix’s investment in Mexico represents a substantial step forward in its commitment to local content creation. It reflects the growing importance of the Mexican market in the entertainment industry and underscores the country’s increasing influence in global media production. Netflix’s commitment also illustrates a broader trend in the international entertainment sector, where platforms like Netflix, Amazon Prime Video, and others are increasingly looking to collaborate with local talent and production companies to create content that resonates with regional audiences while having global appeal.

Netflix’s decision to channel such significant resources into the Mexican market highlights Mexico’s potential as a production hub. With its rich cultural heritage, immense talent pool, and increasingly competitive film and TV production infrastructure, the country is well-positioned to continue to grow as a key player in global media production. Moreover, the economic impact of this investment goes beyond just the entertainment industry. The influx of resources into Mexico’s audiovisual sector will likely stimulate various related industries, including tourism, hospitality, technology, and logistics, all essential to supporting the production process.

A Long-standing Partnership with Local Filmmakers

The relationship between Netflix and Mexico has evolved over the years. Since its initial ventures in producing content like “Club de Cuervos,” Netflix has strengthened its ties with local filmmakers, producers, and actors, thus integrating itself deeply into the country’s cultural fabric. These collaborations elevate Mexican cinema and TV shows’ global profile and allow Mexican stories to reach international audiences.

One of the most notable examples of Netflix’s long-standing partnership with Mexican talent is the creation of “Roma,” which was a huge success not only at the Academy Awards but also in broadening the reach of Mexican cinema worldwide. The film’s success sparked interest in the Mexican film industry, inspiring new filmmakers to make waves on national and international stages.

Cultural Exchange and Job Creation through Netflix’s Commitment

In addition to the economic benefits of this investment, the partnership between Netflix and Mexico is expected to foster even greater cultural exchange. As Mexican filmmakers gain global recognition, the cross-pollination of ideas between cultures will likely inspire fresh and innovative storytelling. Furthermore, the increased production of Mexican films and series means more content will be available for international audiences, showcasing Mexico’s rich history, diverse culture, and dynamic society.

Expanding Opportunities in Creative Industries

Beyond just film and TV, the significant growth in local production is poised to create numerous job opportunities in the creative industries, such as scriptwriting, costume design, set construction, cinematography, and more. This is expected to fuel the growth of a highly skilled workforce, and Netflix’s investment will likely encourage further development and innovation in the country’s audiovisual sector.

A Stronger Future for Mexico and Netflix

The announcement of Netflix’s investment in Mexico signals a more profound commitment to the country and highlights its rising prominence in the global entertainment industry. By investing in local talent and production, Netflix reinforces its position as a streaming space leader while contributing to Mexico’s economic growth and cultural development.

As Mexico and Netflix continue to thrive, this partnership promises more groundbreaking content, exciting opportunities for local creators, and a more substantial global presence for Mexican stories in the years to come.

Ecuador, a country on the western edge of South America, offers a fascinating example of a developing nation with unique strengths and challenges. As the country continues its economic advancement, assessing its economic development involves considering various factors. These include the availability of natural resources, the strength of human capital, infrastructure, technological development, the quality of public institutions, and more. In this blog post, we’ll explore each of these aspects of economic development in Ecuador in detail, providing an in-depth analysis of the nation’s current situation.

Natural Resources

Ecuador has abundant natural resources, which are critical to its economic development. The country has vast oil, minerals, and agricultural land reserves, making it a significant player in the global commodities market. Oil extraction is a major driver of the Ecuadorian economy, and the country is one of South America’s top oil exporters. In addition to oil, Ecuador has considerable mineral resources, including gold, silver, and copper, which are becoming increasingly important as global demand for these metals rises.

Agriculture also forms a key part of the base for economic development in Ecuador, with the country being one of the world’s largest exporters of bananas, roses, and cacao. This diverse natural resource base has provided Ecuador with a steady source of export revenue, though it has also made the country vulnerable to fluctuations in global commodity prices.

However, despite these resources, concerns about over-reliance on oil make the economy highly susceptible to price shocks. The government’s efforts to diversify the economy by promoting non-oil sectors are vital for long-term economic stability.

Human Capital

Human capital is a critical component of Ecuador’s economic development. Ecuador has made significant strides in improving access to education and healthcare, which has resulted in a growing and more skilled workforce. Education programs at the primary and secondary levels have expanded, and the country has invested in increasing access to tertiary education. However, the quality of education remains a challenge, with rural areas facing barriers to quality schooling and a gap in educational outcomes between urban and rural populations.

The country’s healthcare system has also made advances, with life expectancy increasing and infant mortality rates decreasing over the years. Still, disparities in healthcare access between urban and rural regions limit the overall impact on economic development.

Additionally, while Ecuador has a relatively young population, a significant percentage of the workforce is still employed in informal sectors. This lack of formalization restricts the country’s ability to capitalize on its human capital fully.

Infrastructure

Infrastructure development is an essential determinant of economic development in Ecuador. The country has made significant investments in infrastructure, especially in the transportation sector. Roads, highways, and bridges have improved, facilitating regional trade and mobility. The port city of Guayaquil, Ecuador’s economic hub, boasts one of the most important ports on the Pacific coast, supporting trade exports.

However, Ecuador still faces considerable infrastructure challenges. The road network in remote areas remains underdeveloped, and access to electricity and clean water is inconsistent in rural zones. These issues hinder economic activity in certain areas and increase the cost of doing business in the country.

With internet penetration and mobile phone usage rising, Ecuador’s telecommunications infrastructure has grown. This has improved connectivity, especially in urban areas, but a digital divide remains, particularly in rural regions.

Technological Development

Ecuador is in the early stages of technological development compared to more developed economies. While some technological initiatives are gaining traction, such as innovations in farming practices in the agricultural sector, the overall rate of technological adoption remains low. This lack of widespread technological infrastructure limits greater productivity and economic development in Ecuador. The government has begun to invest in fostering innovation, mainly through initiatives to promote startups and technological ventures. The development of digital services and the growing presence of tech companies in the country suggest positive prospects. However, to keep pace with global advancements, there needs to be a stronger emphasis on innovation and research and development (R&D). 

Quality of Public Institutions

Public institution quality plays a vital role in economic development in Ecuador. However, the country has struggled with corruption, political instability, and inefficiency in public administration, which have hindered its ability to capitalize on its resources and fully foster economic growth. The rule of law remains weak in some areas, and there are concerns about the transparency and accountability of government institutions.

That said, recent efforts have been made to improve governance and strengthen public institutions, especially under newer administrations focusing on anti-corruption measures and reforms in the public sector. Improved governance will attract foreign investment and improve the overall business environment.

Economic Policies

Ecuador’s economic policies have undergone significant changes over the years, especially in response to the fluctuations in oil prices and the global financial landscape. The government has alternated between neoliberal and interventionist economic policies, which has led to uncertainty in economic planning. Ecuador’s reliance on oil revenue has led to fiscal imbalances, and the country has frequently resorted to borrowing to finance its budget deficits.

Ecuador also adopted the U.S. dollar as its official currency in 2000, which has provided stability in terms of inflation but has limited the government’s ability to manipulate exchange rates and control monetary policy. As a result, Ecuador has faced challenges in managing economic growth during periods of external shocks.

Level of Industrialization

Ecuador remains an economy primarily dependent on agriculture, oil extraction, and raw material exports, with relatively low levels of industrialization. While the country has some industrial sectors, such as food processing and textiles, it has not yet reached the level of industrialization seen in more developed nations. This limits the economy’s diversification and ability to compete in high-value manufacturing sectors.

The country’s industrial base is gradually expanding, with initiatives aimed at boosting non-oil exports and developing sectors like tourism and agribusiness. However, Ecuador still faces significant barriers to industrial development, including high energy costs, insufficient infrastructure, and limited access to skilled labor.

Access to Capital and Credit

Access to capital and credit is another essential factor that affects economic development in Ecuador. While the country has made progress in improving access to credit, especially for small and medium-sized enterprises (SMEs), challenges remain. High lending rates, limited access to long-term credit, and a relatively underdeveloped banking sector constrain entrepreneurship and business expansion.

Ecuador’s financial sector is also highly dependent on remittances from its large expatriate community, especially in the United States. This reliance on external flows can create economic volatility, especially during global financial crises.

Geographic Location

Ecuador’s geographic location provides both opportunities and challenges for its economic development. Its position on the equator gives it a unique biodiversity and agricultural production advantage. The country is also strategically located on the Pacific coast, making it an important player in maritime trade.

However, Ecuador’s small size and landlocked nature (due to the Andes mountains and the Amazon rainforest) can create logistical challenges. The country’s remote regions face barriers to accessing global markets, and it has to rely on neighboring countries for the transshipment of goods.

Demographics

Ecuador has a youthful and diverse population, with a median age of approximately 27 years. This demographic profile offers a potentially dynamic workforce. However, significant challenges exist, such as high poverty levels, especially in rural areas, and inequality in income distribution and access to services.

The country also faces urbanization trends, with people moving from rural areas to cities for better economic opportunities. While urbanization can drive economic growth, it also pressures urban infrastructure and social services.

Cultural and Social Factors

Cultural and social factors play an essential role in Ecuador’s economic development. The country is home to diverse indigenous, Afro-Ecuadorian, and mestizo populations, and maintaining social harmony among these groups is essential for long-term stability. Ecuador has made strides in promoting social inclusion, primarily through constitutional reforms that recognize the rights of indigenous peoples.

However, social inequality remains a significant challenge, with rural and indigenous communities facing barriers to education, healthcare, and economic opportunities. These disparities hinder the country’s overall development and contribute to social unrest.

Global Economic Integration

Ecuador’s global economic integration has been a double-edged sword. On one hand, the country benefits from its trade agreements, including its participation in regional trade groups such as the Andean Community and the Union of South American Nations (UNASUR). On the other hand, its overreliance on oil exports and raw materials has made it vulnerable to global market fluctuations.

In recent years, Ecuador has sought to diversify its trading partners, focusing on markets outside Latin America, such as China, the European Union, and the United States.

Environmental Sustainability

Ecuador has made significant strides in promoting environmental sustainability. The country is home to some of the world’s most biodiverse ecosystems, including the Galápagos Islands, and has been a leader in advocating for climate change action. However, balancing economic growth with environmental protection remains a challenge, especially with the pressure to exploit its natural resources.

The country has tried to protect its rainforests and biodiversity, but illegal logging, oil drilling, and mining threaten its natural heritage. The government’s commitment to sustainable development will be a critical factor in determining the future trajectory of economic development in Ecuador.

Political Stability and Security

Ecuador’s political stability and security have improved in recent years, but the country still faces challenges in these areas. Political turmoil, protests, and leadership changes have often disrupted the country’s economic performance. In recent years, concerted efforts have been made to strengthen the rule of law and ensure greater security for citizens and businesses.

The security situation in Ecuador is generally stable, but crime, particularly in urban areas, remains a concern for both locals and tourists.

Innovation and Entrepreneurship

Innovation and entrepreneurship are increasingly crucial to Ecuador’s economic development. The country has a growing startup ecosystem focusing on technology and sustainable ventures. However, entrepreneurship remains hampered by limited access to capital, bureaucratic obstacles, and a lack of a strong innovation culture.

Despite these challenges, the country’s young population, combined with a growing interest in tech and innovation, presents promising opportunities for fostering a more diversified and sustainable economy in the future.

Conclusion

Economic development in Ecuador is a complex and multifaceted issue. The country has significant advantages, including its natural resources, young population, and growing infrastructure. However, it also faces political instability, reliance on oil, social inequality, and environmental sustainability challenges. To continue progressing, Ecuador must strengthen its human capital, diversify its economy, improve public institutions, and foster innovation. With careful economic policies and strategic investments, economic development in Ecuador can unlock its full potential and achieve sustained economic growth in the years ahead.

A delegation from Turkey arrived in San Salvador the week of February 17, 2025, to sign agreements with Salvadoran business organizations and the government to increase commercial flow between the two countries. The delegation of Turkish entrepreneurs came to the country to build relationships with their Salvadoran counterparts and explore business opportunities in various sectors. The series of bilateral meetings resulted in the signing of agreements to enhance trade relations between the two nations.

Strengthening Trade Relations

Members of the Turkish Foreign Economic Relations Board (Deik, by its Turkish acronym) met with senior representatives of the Chamber of Commerce of El Salvador (Camarasal), the Corporation of Exporters of El Salvador (Coexport), and the Salvadoran Association of Industrialists (ASI), as well as with government officials. After the discussions, Turkish entrepreneurs expressed interest in the energy, technology, digital assets, and mining sectors.

“We have 10 companies with a Turkish business seal in agriculture, coffee, technology, mobile networks, digital assets, cryptocurrencies, precious metals, and education. These companies are interested in engaging with Salvadoran counterparts, particularly in technology, agriculture, precious metals, and mining,” explained Turkey’s ambassador, Gül Büyükerşen.

Virtual Meetings and Future Collaboration

The diplomat added that the Turkish business delegation also met with Invest in El Salvador officials, the Ministry of Foreign Affairs, the Ministry of Economy, the Ministry of Agriculture, the Coffee Institute, Siget, and CEL, where they signed memorandums of understanding. “We hope we can make the most of all these meetings to increase bilateral relations between Turkey and El Salvador,” she said. The ambassador noted that an agreement was made for entrepreneurs to have virtual meetings every three months, and once an opportunity arises, Salvadorans will visit Turkey.

Ambitions to Boost Bilateral Trade

Regarding bilateral trade, the ambassador highlighted that the current exchange is very low, amounting to only $20 million, and they aim to increase this figure, which is the purpose of the business delegation’s visit. According to data from the Central Reserve Bank (BCR), exports to Turkey in 2024 totaled $1.3 million, while imports from Turkey amounted to $33.5 million.

First Visit of Turkish Business Delegation

Meanwhile, Ali Galip Ilter, president of the Turkey-Latin America and Caribbean Business Council, emphasized that this was the first visit by a Deik delegation to El Salvador. Still, after the meetings, he believes it won’t be the last. The Turkish businessman highlighted that his country has undergone an economic transformation, which has increased commercial volume.

“It is very interesting for Turkish entrepreneurs to use El Salvador as a hub, and Turkey can also be a hub for Salvadoran businesses to access a larger market. To achieve mutual growth, Turkish and Salvadoran entrepreneurs must work more closely together,” he said.

Opportunities in the Port Sector and Beyond

Galip Ilter also noted “extraordinary opportunities” and highlighted the investment by the Turkish company Yilport, which will operate the ports of Acajutla and La Unión for the next 50 years. Yilport will hold 80% of the operation, while Cepa (the Executive Port Authority) will manage the remaining 20%. Economy Minister María Luis Hayem, who also mentioned Yilport’s investment in her speech, said, “We are very focused on providing all the conditions that companies need to grow, operate, and establish themselves in El Salvador.”

In addition to exploring opportunities in the port sector, the Turkish delegation discussed a broad range of business opportunities in El Salvador across industries such as technology, agriculture, and energy. 

Growing the Scope of Business Opportunities in El Salvador

Carlos Chávez, the second vice president of Camarasal, explained that after meetings with Turkish entrepreneurs, a convention was signed with Deik to increase commercial ties between both countries. “This agreement establishes a path for growth in exports and imports. It also covers the possibility of potential investments in El Salvador by Turkish companies to export to Latin America,” the leader noted.

Chávez mentioned that the Turkish delegation included entrepreneurs from diverse sectors, such as machinery, software, investment products, electricity, and electromobility. “Interestingly, there is a wide range of possible services or products that could be offered, or even Turkish companies could come here to create their investments and bring their expertise,” he said.

Exploring the Energy Sector and Beyond

When asked if Turkish entrepreneurs expressed interest in any specific energy project, Chávez responded that this first visit was an opportunity for them to understand the dynamics in El Salvador and how opportunities are opening up.

“In the energy sector, they have not brought a specific project yet, but from what we’ve discussed, they have been given ideas of what they could do. They’ve emphasized the software, machinery, and hardware sectors. So, I believe it’s not just about electricity, but also digital technology, hardware, and manufacturing, which are gaining importance in what we’ve discussed,” Chávez explained. The business leader affirmed that El Salvador can offer Turkish companies raw materials and skilled and unskilled labor.

Turkey as a Key Market for Salvadoran Exports

When asked what draws Salvadoran businesses to do business with Turkey, the vice president of Camarasal said, “For Salvadoran companies that want to export to Turkey, a new horizon opens up. Salvadoran companies have an export focus primarily directed at the U.S. and some European countries. Turkey is a market we don’t engage with much, but from what we’ve heard about Turkey, I think Salvadoran entrepreneurs can see an interesting export window for their products and services to that country.”

Chávez believed that Salvadoran companies could leverage the knowledge of Turkish businesses and then export to countries such as the U.S., Latin America, or Turkey.

Optimistic Outlook on Business Opportunities in El Salvador

For his part, Jorge Arriaza, president of ASI, said that the approach with Turkish companies seemed optimistic, following the groundwork laid by President Nayib Bukele’s visit to Turkey in 2022. El Salvador opened its embassy in Ankara in 2020, but the Turkish government only opened it two years later. Arriaza highlighted the Turkish investment in ports through Yilport and other agreements in the energy sector.

ASI members met with the delegation this Thursday, and Coexport executives had a separate meeting. “We will meet with them to talk, and more than anything, to get to know each other, make contacts, and explore business opportunities in El Salvador,” said Arriaza.

A Starting Point for Growing Trade Relations

When asked what sector of Turkey interests them, the businessman responded that they would assess the investors’ expectations, and then ASI would provide theirs. “The meeting is a starting point for growing a commercial relationship with Turkey,” he added. He also pointed out that the business association focuses on the 24 industrial sectors where it seeks business opportunities in El Salvador. “Our main concept is to integrate into productive and value chains,” he concluded.