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Opportunities for investment in Guatemala: A Conversation with Antonio Romero

Opportunities for investment in Guatemala: A Conversation with Antonio Romero

by | Jan 18, 2025 | FDI Latin America, Podcast

Antonio Romero
Vice Minister of Investment and Competitiveness
Ministry of Economy of Guatemala
dmhurtarter@mineco.gob.gt
tradediplomacygt@minex.gob.gt

LATAM FDI: Hello. Welcome to another episode of the LATAM FDI podcast. In these recordings, we speak with people with intimate knowledge of foreign direct investment in the Latin American region. Today, Antonio Romero is with us. Antonio is the Vice Minister of Investment and Competitiveness with the Ministry of Economy in Guatemala. I want to welcome you, Antonio. Perhaps you could tell us a little about yourself and your organization, and then we’ll discuss opportunities for investment in Guatemala.

Antonio Romero: Thank you, Steven. It’s a pleasure to be here. As you said, I’m the Vice Minister for Investment and Competition. We also oversee competitiveness issues and work to create opportunities for investment in Guatemala. I’m part of President Arevalo’s government. I took office in February last year here at the Vice Ministry. And yeah, a key component of what we do here is work on attracting foreign direct investment. We also oversee aspects of the business climate, quality assurance for production, and customs incentives for companies that want to come to Guatemala. So, there are many things we can discuss around that. So very happy to be here, as I said.

LATAM FDI: Well, thanks. I have a few questions, and if you’d be so kind as to answer them, we can start now. First, I’d like to say that Guatemala has the largest population in Central America. And as that being the case, what role does the country’s growing consumer market and regional economic integration play in attracting FDI to your country?

Antonio Romero: Yes. Well, for one thing, I mean, as the largest market in the region, it is attractive to companies that want to do business here in different sectors because of the opportunities for investment in Guatemala. There’s a large consumer base. It is attractive in a country with macroeconomic stability and steady growth. But beyond that, Guatemala is well-positioned for companies to serve other countries in Central America based in Guatemala. And part of that has to do with the economic integration that has been happening in the region. This government continues to pursue and encourage, especially in the countries of Honduras and El Salvador. There’s a shared market of goods and services. We’re working on shared infrastructure and shared custom services. I’m missing the words aduanas, customs, and la frontera (border) to streamline trade processes, which has allowed us to become an attractive place for businesses to establish, produce, and from here, serve not only Central America but also the North American market, the US, Mexico. And with this large population, which is very young and growing, we have around 12 million working-age individuals. There are many opportunities for investment in Guatemala.

We offer an abundant, young labor force willing to work. Companies that come to Guatemala often mention that they are delighted with the labor force there. So, I think the size of our country in the context of the region and the conditions of our population, in addition to the work and the integration work with the rest of Central America, make us an attractive destination for investment.

LATAM FDI: How do government-backed initiatives and partnerships with international organizations support foreign investors in establishing and growing their businesses?

Antonio Romero: Well, there are several partnerships with different organizations. For one thing, we have bilateral cooperation and multilateral finance institutions to create opportunities for investment in Guatemala. With them, there’s a long-standing collaboration between the Guatemalan government and those institutions to foster conditions that attract investment, facilitate investment, and improve the business climate in Guatemala. So, some of the results of that collaboration have to do with finance facilities for different types of projects, especially those that have to do with the infrastructure that is necessary for companies to operate in Guatemala, technical assistance of various kinds, and also as a way to identify the opportunities for improvement that Guatemala has about the needs of companies, being energy requirements, being labor force requirements, training for the labor force, environmental regulations. So, we work with them around technical assistance and finance to improve conditions and offer facilities for opportunities for investment in Guatemala for companies operating in Guatemala, and that’s one of the aspects we work with different organizations. Then there are other organizations or international partnerships with businesses in the US and other countries, whereby there’s a dialog with companies interested in setting up a business in Guatemala or who already have part of the business in Guatemala.

And through that dialog, there’s a process of identifying the needs, the opportunities, making the connections necessary to make solutions happen, oftentimes between the government and potential investors overseas and also local investors, regarding, for example, issues with not only infrastructure, energy, communications, transportation, but also the procedures that companies need to follow to set up business and continue business in Guatemala that have to do with government offices. There’s been intense work on simplifying the democratic processes companies must go through to set up and continue their business to increase opportunities for investment in Guatemala. In those instances of dialog, we identify the issues and the solutions that the government can offer to offer the potential for synergies between government and private sectors and the integration of a dialog with the local company. So, from those dialogs, different initiatives often involve international cooperation. I guess that’s where these interactions with international partners come to fruition.

LATAM FDI: Guatemala is now a country rich in natural resources. Can you explain how that resource abundance and agricultural potential offer unique opportunities for investment in Guatemala?

Antonio Romero: So, Guatemala is very rich, as you said, in those resources. And we have a competitive advantage in that regard. We have abundant water resources, diverse raw materials, and different regions with different weather, where very distinct products can be produced. And this is attractive for industries focused on processed foods, beverages, and agricultural experts. Guatemala has expertise in these areas. This government is committed to sustainable development. There’s an opportunity to encourage sustainable practices and industries with strong, sustainable practices to come to Guatemala, take advantage of those resources, and respond to the international markets increasingly demanding more compliance to high sustainability standards, both environmental and social and other types. The energy production in Guatemala comes mostly from renewable sources, and we offer a stable and eco-friendly energy supply for resource-intensive industries. Again, this is especially true for those looking to comply with high sustainability standards. The other thing related to your first question is the access industries have to the rest of Central America and the North American market. We have port facilities, both in the Atlantic and the Pacific. These create more opportunities for investment in Guatemala.

We have borders with Mexico, Salvador, and Honduras. There’s an increasing effort to streamline the logistics services throughout the countries. And I think that’s an agenda that comes very strongly. Hopefully, we will notice advances in the coming years, especially in transportation, infrastructure, energy, and commerce facilities.

LATAM FDI: Well, thanks for that answer. I know that the country is working on strengthening legal frameworks and investment protections that enhance investor confidence. Can you tell us a little bit about those initiatives?

Antonio Romero: Sure. For starters, the macroeconomic stability I mentioned earlier is one of the key attractive factors that creates opportunities for investment in Guatemala. Exchange rates are highly stable. Inflation is very well-controlled, and government spending, in general, the financial management of the government is very prudent. We have reasonable international reserves. From that starting point, the macroeconomic scenario is very stable and provides investors with confidence.

Regarding other legal frameworks, I can speak about recent work on streamlining bureaucratic processes. There have been several new laws that have been enacted, for example, and regulations, for example, the registration guides, which make it transparent for users, primarily investors, and companies, make it very transparent what the processes they need to follow are and what the criteria the public servants have to use to assess whether it be a permit, the registration of a product, intellectual property. This reduces the subjectivity of public officials in decision-making. That’s something that this government launched and will continue to advance in different ministries. Indeed, we have that in the Ministry of Economy for different windows of attention to invest investors, and basically, that works towards greater transparency for investors and greater confidence.

There’s also a National Trade Facilitation Plan that continues to review ways the legal system and government services can streamline and facilitate commerce. At the national level, there’s the recently enacted Competition Law, which investors constantly ask about. This law will create institutions that oversee competitive practices in Guatemalan markets. So basically, companies will now have a government institution to ensure no anti-competitive barriers to new or established companies in the market. So that provides, again, the certainty to investors that they will be able to operate under the free market rules. And wherever there’s a problem, there will be an independent institution. This is going to be a Superintendency. With enough autonomy to ensure the law is well applied. There are recent laws around infrastructure, which, again, aim to streamline how big infrastructure projects are implemented, working to fix some of the current bottlenecks, especially around the Ministry of Communications and Transportation activities. So, this is to allow the work of the Ministry to be more expeditious, and that, I think, works towards this need to have better infrastructure that provides a business climate to companies.

Finally, this government has been firmly committed to transparency and anti-corruption measures to make opportunities for investment in Guatemala more attractive. I think that’s become evident throughout the first year of government that there’s a very, very strong commitment to working in all areas of government towards that. And I think that’s very important for companies you want to establish in Guatemala.

LATAM FDI: In another area, I’ve read in various places that Guatemala is emerging as a technology hub in the region. Can you tell us about any initiatives implemented to assist and create opportunities for investment in Guatemala in the tech and startup sectors?

Antonio Romero: Yeah. So last year, we launched the new governmental Agency for Investment Attraction. There was no governmental institution dedicated solely and explicitly to attracting investment. We launched that last year with its strategy. In this strategy, we have identified several sectors we will focus on in the short, medium, and long term. In the short term, those sectors that are already attracted to investors are where investment is already happening. There’s international commerce around them, such as apparel, food and beverages, BPOS, and ITOS. Then there’s the mid-term, where there’s a need to work to strengthen an ecosystem of industries so that the country is attracted to them so that their needs can be satisfied. And in between the short and medium term, I’d say it’s the technology companies. There’s already some investment in software development and startup companies. From our side, we haven’t yet started to produce specific policies for those companies. But this year, we will begin with an innovation fund, offering financial facilities for startup companies that want to work on innovation to receive specific support. I think this is an area where we need to dive in more.

The Ministry of Economy hasn’t yet gotten to the stage where we work closely with them and design policies specific to that sector. But we do see the opportunity, and it is our intention to, as I said in the midterm, speak about the next two years and be able to create actions and policies that cater to this specific sector, where we do see a lot of potential. Things are happening, but I think we need to create policies to speed up the development already happening in the country.

LATAM FDI: How does Guatemala’s participation in the Northern Triangle Regional Economic Development Strategy and El Salvador and Honduras create new opportunities for foreign investors?

Antonio Romero: Well, first of all, streamlining commerce, facilitating commerce. That produces immediate results, and companies feel immediate, reducing the times in which products have passed through the different borders, which immediately reduces costs for companies and facilitates commerce. And there’s been intense work between the Guatemala, El Salvador, and Honduras governments to work around that. That’s one thing. There are also different regional initiatives, such as the master plan on mobility and logistics, which includes investments in airports, sports, and road infrastructure. There are opportunities to see the region as one market. This already happens, but there are still challenges in mobility, transportation, and customs facilities. Rebuilding those obstacles around those areas will multiply opportunities because you will have a market of around 50 million people in Central America. The connections to the different markets, the Atlantic and the Pacific ports, are already there. For example, the flow of products from El Salvador to the ports in Guatemala is very significant. So, as we continue to facilitate these countries’ integration, it will make the Central American market in Guatemala more attractive and make it easier for businesses to come from Guatemala.

LATAM FDI: Well, we’ve covered a significant amount of area in this relatively brief conversation that we’ve had over the last few minutes. One of the things that always comes up is that people who listen to our podcast typically have questions they come to me with. However, I would like to create an environment where they can speak directly to the person interviewed. Would you be willing to provide a means of communication so that people could contact you directly, whether through a LinkedIn page or an email address or maybe through an individual who is one of your aides?

Antonio Romero: Sure, I could provide an email to one of my aides, and that would be a good way to establish contact. Well, you can email that to me later. I will place the transcript section on the web page that hosts this podcast. Just a quick question: Do you have a LinkedIn page as well?

Antonio Romero: I have a personal one but haven’t worked on my vice minister one, so that’s still pending.

LATAM FDI: Okay, so we’ll leave it with the email address for one of your aides.

Antonio Romero: Yes.

LATAM FDI: I want to thank you for joining me today. It’s exciting watching the developments in Guatemala. Hopefully, we’ll have a chance to talk in the future and discuss some things that have transpired since this day.

Antonio Romero: Thank you. Thank you, Steve. My pleasure. Looking forward to that.

Antonio Romerio
Vice Minister of Investment and Competitiveness
Ministry of Economy of Guatemala
dmhurtarter@mineco.gob.gt
tradediplomacygt@minex.gob.gt

LATAM FDI: Hello. Welcome to another episode of the LATAM FDI podcast. In these recordings, we speak with people with intimate knowledge of foreign direct investment in the Latin American region. Today, Antonio Romero is with us. Antonio is the Vice Minister of Investment and Competitiveness with the Ministry of Economy in Guatemala. I want to welcome you, Antonio. Perhaps you could tell us a little about yourself and your organization, and then we’ll discuss opportunities for investment in Guatemala.

Antonio Romaro: Thank you, Steven. It’s a pleasure to be here. As you said, I’m the Vice Minister for Investment and Competition. We also oversee competitiveness issues and work to create opportunities for investment in Guatemala. I’m part of President Arevalo’s government. I took office in February last year here at the Vice Ministry. And yeah, a key component of what we do here is work on attracting foreign direct investment. We also oversee aspects of the business climate, quality assurance for production, and customs incentives for companies that want to come to Guatemala. So, there are many things we can discuss around that. So very happy to be here, as I said.

LATAM FDI: Well, thanks. I have a few questions, and if you’d be so kind as to answer them, we can start now. First, I’d like to say that Guatemala has the largest population in Central America. And as that being the case, what role does the country’s growing consumer market and regional economic integration play in attracting FDI to your country?

Antonio Romerio: Yes. Well, for one thing, I mean, as the largest market in the region, it is attractive to companies that want to do business here in different sectors because of the opportunities for investment in Guatemala. There’s a large consumer base. It is attractive in a country with macroeconomic stability and steady growth. But beyond that, Guatemala is well-positioned for companies to serve other countries in Central America based in Guatemala. And part of that has to do with the economic integration that has been happening in the region. This government continues to pursue and encourage, especially in the countries of Honduras and El Salvador. There’s a shared market of goods and services. We’re working on shared infrastructure and shared custom services. I’m missing the words aduanas, customs, and la frontera (border) to streamline trade processes, which has allowed us to become an attractive place for businesses to establish, produce, and from here, serve not only Central America but also the North American market, the US, Mexico. And with this large population, which is very young and growing, we have around 12 million working-age individuals. There are many opportunities for investment in Guatemala.

We offer an abundant, young labor force willing to work. Companies that come to Guatemala often mention that they are delighted with the labor force there. So, I think the size of our country in the context of the region and the conditions of our population, in addition to the work and the integration work with the rest of Central America, make us an attractive destination for investment.

LATAM FDI: How do government-backed initiatives and partnerships with international organizations support foreign investors in establishing and growing their businesses?

Antonio Romerio: Well, there are several partnerships with different kinds of organizations. For one thing, we have bilateral cooperation and multilateral finance institutions to create opportunities for investment in Guatemala. With them, there’s a long-standing collaboration between the Guatemalan government and those institutions to foster conditions that attract investment, facilitate investment, and improve the business climate in Guatemala. So, some of the results of that collaboration have to do with finance facilities for different types of projects, especially those that have to do with the infrastructure that is necessary for companies to operate in Guatemala, technical assistance of various kinds, and also as a way to identify the opportunities for improvement that Guatemala has about the needs of companies, being energy requirements, being labor force requirements, training for the labor force, environmental regulations. So, we work with them around technical assistance and finance to improve conditions and offer facilities for opportunities for investment in Guatemala for companies operating in Guatemala, and that’s one of the aspects we work with different organizations. Then there are other organizations or international partnerships with businesses in the US and other countries, whereby there’s a dialog with companies interested in setting up a business in Guatemala or who already have part of the business in Guatemala.

And through that dialog, there’s a process of identifying the needs, the opportunities, making the connections necessary to make solutions happen, oftentimes between the government and potential investors overseas and also local investors, regarding, for example, issues with not only infrastructure, energy, communications, transportation, but also the procedures that companies need to follow to set up business and continue business in Guatemala that have to do with government offices. There’s been intense work on simplifying the democratic processes companies must go through to set up and continue their business to increase opportunities for investment in Guatemala. In those instances of dialog, we identify the issues and the solutions that the government can offer to offer the potential for synergies between government and private sectors and the integration of a dialog with the local company. So, from those dialogs, different initiatives often involve international cooperation. I guess that’s where these interactions with international partners come to fruition.

LATAM FDI: Guatemala is now a country rich in natural resources. Can you explain how that resource abundance and agricultural potential offer unique opportunities for investment in Guatemala?

Antonio Romerio: So, Guatemala is very rich, as you said, in those resources. And we have a competitive advantage in that regard. We have abundant water resources, diverse raw materials, and different regions with different weather, where very distinct products can be produced. And this is attractive for industries focused on processed foods, beverages, and agricultural experts. Guatemala has expertise in these areas. This government is committed to sustainable development. There’s an opportunity to encourage sustainable practices and industries with strong, sustainable practices to come to Guatemala, take advantage of those resources, and respond to the international markets increasingly demanding more compliance to high sustainability standards, both environmental and social and other types. The energy production in Guatemala comes mostly from renewable sources, and we offer a stable and eco-friendly energy supply for resource-intensive industries. Again, this is especially true for those looking to comply with high sustainability standards. The other thing related to your first question is the access industries have to the rest of Central America and the North American market. We have port facilities, both in the Atlantic and the Pacific. These create more opportunities for investment in Guatemala.

We have borders with Mexico, Salvador, and Honduras. There’s an increasing effort to streamline the logistics services throughout the countries. And I think that’s an agenda that comes very strongly. Hopefully, we will notice advances in the coming years, especially in transportation, infrastructure, energy, and commerce facilities.

LATAM FDI: Well, thanks for that answer. I know that the country is working on strengthening legal frameworks and investment protections that enhance investor confidence. Can you tell us a little bit about those initiatives?

Antonio Romerio: Sure. For starters, the macroeconomic stability I mentioned earlier is one of the key attractive factors that creates opportunities for investment in Guatemala. Exchange rates are highly stable. Inflation is very well-controlled, and government spending, in general, the financial management of the government is very prudent. We have reasonable international reserves. From that starting point, the macroeconomic scenario is very stable and provides investors with confidence. Regarding other legal frameworks, I can speak about recent work on streamlining bureaucratic processes. There have been several new laws that have been enacted, for example, and regulations, for example, the registration guides, which make it transparent for users, primarily investors, and companies, make it very transparent what the processes they need to follow are and what the criteria the public servants have to use to assess whether it be a permit, the registration of a product, intellectual property. This reduces the subjectivity of public officials in decision-making. That’s something that this government launched and will continue to advance in different ministries. Indeed, we have that in the Ministry of Economy for different windows of attention to invest investors, and basically, that works towards greater transparency for investors and greater confidence.

There’s also a National Trade Facilitation Plan that continues to review ways the legal system and government services can streamline and facilitate commerce. At the national level, there’s the recently enacted Competition Law, which investors constantly ask about. This law will create institutions that oversee competitive practices in Guatemalan markets. So basically, companies will now have a government institution to ensure no anti-competitive barriers to new or established companies in the market. So that provides, again, the certainty to investors that they will be able to operate under the free market rules. And wherever there’s a problem, there will be an independent institution. This is going to be a Superintendency. With enough autonomy to ensure the law is well applied. There are recent laws around infrastructure, which, again, aim to streamline how big infrastructure projects are implemented, working to fix some of the current bottlenecks, especially around the Ministry of Communications and Transportation activities. So, this is to allow the work of the Ministry to be more expeditious, and that, I think, works towards this need to have better infrastructure that provides a business climate to companies.

Finally, this government has been firmly committed to transparency and anti-corruption measures to make opportunities for investment in Guatemala more attractive. I think that’s become evident throughout the first year of government that there’s a very, very strong commitment to working in all areas of government towards that. And I think that’s very important for companies you want to establish in Guatemala.

LATAM FDI: In another area, I’ve read in various places that Guatemala is emerging as a technology hub in the region. Can you tell us about any initiatives implemented to assist and create opportunities for investment in Guatemala in the tech and startup sectors?

Antonio Romerio: Yeah. So last year, we launched the new governmental Agency for Investment Attraction. There was no governmental institution dedicated solely and explicitly to attracting investment. We launched that last year with its strategy. In this strategy, we have identified several sectors we will focus on in the short, medium, and long term. In the short term, those sectors that are already attracted to investors are where investment is already happening. There’s international commerce around them, such as apparel, food and beverages, BPOS, and ITOS. Then there’s the mid-term, where there’s a need to work to strengthen an ecosystem of industries so that the country is attracted to them so that their needs can be satisfied. And in between the short and medium term, I’d say it’s the technology companies. There’s already some investment in software development and startup companies. From our side, we haven’t yet started to produce specific policies for those companies. But this year, we will begin with an innovation fund, offering financial facilities for startup companies that want to work on innovation to receive specific support. I think this is an area where we need to dive in more.

The Ministry of Economy hasn’t yet gotten to the stage where we work closely with them and design policies specific to that sector. But we do see the opportunity, and it is our intention to, as I said in the midterm, speak about the next two years and be able to create actions and policies that cater to this specific sector, where we do see a lot of potential. Things are happening, but I think we need to create policies to speed up the development already happening in the country.

LATAM FDI: How does Guatemala’s participation in the Northern Triangle Regional Economic Development Strategy and El Salvador and Honduras create new opportunities for foreign investors?

Antonio Romerio: Well, first of all, streamlining commerce, facilitating commerce. That produces immediate results, and companies feel immediate, reducing the times in which products have passed through the different borders, which immediately reduces costs for companies and facilitates commerce. And there’s been intense work between the Guatemala, El Salvador, and Honduras governments to work around that. That’s one thing. There are also different regional initiatives, such as the master plan on mobility and logistics, which includes investments in airports, sports, and road infrastructure. There are opportunities to see the region as one market. This already happens, but there are still challenges in mobility, transportation, and customs facilities. Rebuilding those obstacles around those areas will multiply opportunities because you will have a market of around 50 million people in Central America. The connections to the different markets, the Atlantic and the Pacific ports, are already there. For example, the flow of products from El Salvador to the ports in Guatemala is very significant. So, as we continue to facilitate these countries’ integration, it will make the Central American market in Guatemala more attractive and make it easier for businesses to come from Guatemala.

LATAM FDI: Well, we’ve covered a significant amount of area in this relatively brief conversation that we’ve had over the last few minutes. One of the things that always comes up is that people who listen to our podcast typically have questions they come to me with. However, I would like to create an environment where they can speak directly to the person interviewed. Would you be willing to provide a means of communication so that people could contact you directly, whether through a LinkedIn page or an email address or maybe through an individual who is one of your aides?

Antonio Romerio: Sure, I could provide an email to one of my aides, and that would be a good way to establish contact. Well, you can email that to me later. I will place the transcript section on the web page that hosts this podcast. Just a quick question: Do you have a LinkedIn page as well?

Antonio Romerio: I have a personal one, but I haven’t worked on my vice minister one, so that’s still pending.

LATAM FDI: Okay, so we’ll leave it with the email address for one of your aides.

Antonio Romerio: Yes.

LATAM FDI: I want to thank you for joining me today. It’s exciting watching the developments in Guatemala. Hopefully, we’ll have a chance to talk in the future and discuss some things that have transpired since this day.

Antonio Romerio: Thank you. Thank you, Steve. My pleasure. Looking forward to that.

Free Zone Exports from the Dominican Republic Could Reach US$10 Billion

Free Zone Exports from the Dominican Republic Could Reach US$10 Billion

by | Jan 17, 2025 | FDI Latin America

The Dominican Free Zones Association (ADOZONA) has projected a significant milestone for the country’s export sector. By 2025, exports from the free zones could exceed $9 billion, reaching an impressive $10 billion by 2026. This optimistic forecast highlights the growing importance of free zone exports from the Dominican Republic in the national and regional economy.

Perspectives and Leadership

This ambitious projection was shared during the event “Perspectives on Free Zones 2025–2026,” organized under the leadership of the newly appointed president of ADOZONA, Claudia Pellerano. Key figures, including the Minister of Industry, Commerce, and SMEs, Víctor Bisonó, attended the event alongside representatives from the government, trade unions, businesses, and multilateral organizations. This diverse participation underscored the collaborative efforts required to achieve the sector’s ambitious goals.

Pellerano used the occasion to emphasize free zones’ critical role in the Dominican Republic’s economic framework. She noted that the sector’s growth is a matter of increased exports and a catalyst for broader societal benefits, including job creation, community development, and improved living standards.

Economic Growth and Regional Leadership

The contributions of the free zones have had a transformative impact on the Dominican Republic’s economy. In 2024, the Caribbean nation recorded the highest economic growth in the region, a remarkable feat driven primarily by exports. Notably, 66.5% of these exports originated from free zones. This statistic highlights the pivotal role of free zone exports from the Dominican Republic in positioning the nation as an economic leader in the Caribbean.

Pellerano pointed out that the free zones have been instrumental in attracting foreign investment and promoting knowledge and technology transfer. This, in turn, has fueled the creation of formal jobs and generated significant export revenues. These resources have positively impacted thousands nationwide, enhancing community well-being and economic inclusion.

Study on Free Zone Competitiveness

During the event, Pellerano expressed her gratitude to Minister Bisonó and the company Analytica for their collaborative efforts in producing the study “Dominican Free Zones: Investing to Contribute in a Risk and Opportunity Environment.” She described the study as a comprehensive analysis of the free zones’ performance, showcasing their exceptional competitiveness and relevance. It provided concrete data reinforcing the sector’s essential role in driving economic growth and underscored the need for sustained investment.

Infrastructure and Workforce Development

The Dominican Republic is home to an impressive 92 free zone parks, which serve as hubs of opportunity for communities that might otherwise face limited prospects. These parks have played a crucial role in stemming emigration by creating local employment opportunities. Furthermore, the active participation of women in the sector has brought about profound changes in family and economic dynamics, significantly improving the quality of life in these communities.

Pellerano stressed the importance of focusing on strategic sectors, such as the production of medical devices, electronics, semiconductors, and technological services. These industries represent high-growth areas with the potential to elevate free zone exports from the Dominican Republic further. She also highlighted the need for sustainable and specialized infrastructure to support the sector’s expansion. She called for the training of skilled professionals to meet the growing demands of these industries.

Collaboration for Future Growth

The ADOZONA President emphasized the need for greater collaboration among various stakeholders to sustain the sector’s growth trajectory. She called for a united effort involving the government, universities, technical schools, trade unions, and multilateral organizations. By working together, these entities can help develop a new generation of professionals equipped to tackle future challenges and maintain the sector’s competitiveness on the global stage.

Looking Ahead

The Dominican Republic’s free zones have already demonstrated their capacity to drive economic progress and create opportunities for its citizens. However, achieving the ambitious target of $10 billion in exports by 2026 will require a continued focus on innovation, infrastructure development, and workforce training. With the combined efforts of public and private stakeholders, the country is well-positioned to enhance the global competitiveness of free zone exports from the Dominican Republic.

As Pellerano noted, the success of the free zones is not merely about financial gains but about creating a lasting positive impact on the nation’s social and economic fabric. By fostering investment, innovation, and collaboration, the Dominican Republic can ensure that its free zones remain a cornerstone of its economic development for years to come.

In summary, free zone exports from the Dominican Republic are poised to play an even more significant role in the nation’s economic future. ADOZONA’s efforts, in partnership with other stakeholders, will be instrumental in reaching new heights and ensuring that the benefits of this growth are felt across all segments of society.

Investment in the Paraguayan Maquiladora Industry Grows 117% in 2024, Reaching USD 103 Million

Investment in the Paraguayan Maquiladora Industry Grows 117% in 2024, Reaching USD 103 Million

by | Jan 16, 2025 | FDI Latin America

Exports of Manufacturing Sector Surge in 2024

The exports of manufactured goods reached USD 1.716 billion in 2024, marking a 14.1% increase compared to 2023. The maquiladora industry was the main driver of this growth, with its exports rising by 10.4% to USD 1.124 billion. Moreover, the sector attracted USD 103 million in investments and created 29,956 jobs, a 20% increase from 2023.

Performance of the Industrial Manufacturing Sector

According to the foreign trade report by the Central Bank of Paraguay (BCP), exports of industrial manufacturing reached USD 1.7169 billion by the end of 2024, representing a 14.1% rise compared to December 2023. These exports accounted for 1.8 percentage points of the total registered exports.

The growth was driven mainly by higher shipments of aluminum, auto parts (wires and cables), insecticides, fungicides, and herbicides. In terms of volume, exports of industrial manufacturing products totaled 567,200 tons, a 9.6% increase over the previous year.

The maquiladora industry accounted for 66% of the total exports of industrial origin. This figure, however, is slightly lower than in previous years when it consistently stood at 67% for three consecutive years.

Record Exports Under the Maquila Regime

Exports under the maquila regime grew by 10.4% in 2024 compared to 2023, reaching a record USD 1.1244 billion. This milestone is the highest since the inception of maquila exports. Of this total, USD 1.109 billion corresponded to consumer goods, while USD 32 million was for intangible services.

In December 2024 alone, the maquiladora industry exported USD 92 million, a 14% increase compared to the same month in 2023, when exports reached USD 80 million.

Key Export Products and Destinations

The leading products driving growth included aluminum and its derivatives (14%), auto parts (28%), textiles and garments (19%), and food products (15%). Collectively, these categories accounted for 83% of maquiladora industry exports in December.

The Mercosur region remained the primary destination for maquiladora products, receiving 76% of all shipments. Brazil dominated as the most significant market, accounting for 62.7% of exports. Argentina and the Netherlands followed with 11.1% and 7.4%, respectively. Other notable markets included the United States (4%), Chile (3%), and Bolivia and Uruguay (2% each).

Trade Balance and Investments in the Paraguayan Maquiladora Industry

The trade balance for the maquiladora sector remained positive in 2024, with exports exceeding imports by 94%. Total imports for the industry amounted to USD 571 million, a 15% increase compared to 2023, setting a new record. This contrasts with USD 1.109 billion in exports.

Investment in the Paraguayan maquiladora industry also surged, with USD 103 million accumulated in 2024, marking a 117% increase over the previous year, when investments totaled USD 48 million. This achievement represents the second-highest peak in maquiladora investments since 2014.

Market Expansion and New Programs

Over the past 12 months, maquiladora companies expanded their reach to 15 new destinations by exporting maquiladora products. Notable firms leading this expansion include Inpasa, Gelnex, Ball, and HercoSul.

Additionally, a record 36 new maquila programs were approved between January and December 2024. Of these, 91% of approved companies are located in Alto Paraná (48%), Central (28%), the Capital District (9%), and Amambay (6%).

Employment Growth and Gender Representation

The maquiladora industry generated 29,956 jobs in 2024, 4,928 more than in 2023, representing a 20% increase. In December alone, 599 new jobs were created compared to November 2024. Women occupied 45% of these jobs, showcasing the sector’s commitment to gender inclusivity.

Investment in the Paraguayan maquiladora industry boosted economic growth and demonstrated the sector’s resilience and potential for further expansion in global markets.

Conclusion

The remarkable growth in investment in the Paraguayan maquiladora industry in 2024 underscores its pivotal role in driving the country’s economic progress. The record-breaking USD 1.124 billion in maquila exports and the 117% surge in investments to USD 103 million highlight the sector’s resilience and adaptability in a competitive global market. This success is further amplified by the creation of nearly 30,000 jobs, reflecting a significant contribution to employment and a commitment to gender inclusivity, with women holding 45% of these positions.

The diversification of export products, including aluminum, auto parts, textiles, and food items, has strengthened Paraguay’s trade footprint, particularly within the Mercosur region, where Brazil remains the leading market. Additionally, the approval of 36 new maquila programs and the expansion into 15 new global destinations signify the industry’s forward momentum and capacity to attract international partnerships.

As Paraguay continues to leverage the maquiladora regime’s advantages, such as competitive labor costs, favorable trade policies, and strategic geographic positioning, the sector is poised for sustained growth. These advancements bolster Paraguay’s industrial base and position the maquiladora industry as a cornerstone of the nation’s economic strategy, fostering long-term development and strengthening its integration into global value chains.

President Sheinbaum Aims to Grow the Aerospace Industry in Mexico; Budget Challenges are Anticipated

President Sheinbaum Aims to Grow the Aerospace Industry in Mexico; Budget Challenges are Anticipated

by | Jan 15, 2025 | FDI Latin America

The federal government plans to approve the Outer Space Law, execute a space mission, and launch a new “geostationary” satellite as part of its goals.

President Claudia Sheinbaum’s administration prioritizes the aerospace industry and sets ambitious goals for 2030. These include approving the Outer Space Law by 2025, undertaking the first 100% Latin American space mission in 2027, and launching a new “geostationary” satellite in 2028.

On Monday, while presenting the “Plan Mexico,” a portfolio of national and foreign investments amounting to $277 billion, the president also announced the goal of positioning Mexico’s aerospace industry among the top 10 countries globally in aerospace production value.

“Of course, the proposals are viable, and naturally, they come with challenges, right? One of the most important challenges is funding and investment to make this possible,” stated Luis Lizcano, Executive President of the Mexican Federation of the Aerospace Industry (FEMIA).

“Everything proposed is achievable if all stakeholders are willing to collaborate and address challenges. It is a very ambitious plan which, if realized, would place our sector in an exciting position,” added the expert.

The document outlines plans to lead the first 100% Latin American space mission, make Mexico one of three countries capable of fully assembling an engine for French aerospace company Safran, and launch a 100% Mexican satellite into orbit. Additionally, Plan Mexico seeks to increase the local and regional content of aerospace exports by 10% and design and construct components for a “national satellite constellation” for observation purposes.

Specifically, the plan includes a development program for suppliers of steel, micro-moldings, polymers, fasteners, ball bearings, plastic injections, cable harnesses, and steering components, among other materials. The growth of the aerospace industry in Mexico is seen as a strategic pillar of national development, combining public and private sector efforts to bolster innovation and manufacturing capabilities.

Plan Mexico reinforces announcements made in November 2024 by Altagracia Gómez Sierra, coordinator of the Advisory Council for Regional Economic Development and Business Relocation, who stated that the government would lead the first 100% Latin American space mission in 2027. The mission is expected to include participation from Mexican astronaut Katya Echazarreta, a native of Guadalajara, Jalisco.

Gómez Sierra previously emphasized that the federal government would work closely with private industry and academia to promote the aerospace industry in Mexico.

Key Highlights

Industry Goals

The aerospace industry being promoted in Mexico will encompass aircraft design, research, development, manufacturing, the associated supply chain, maintenance, repair, and overhaul services.

According to FEMIA, the aerospace industry in Mexico is one of the most dynamic industrial sectors in the country, with sustained annual growth of 14% in recent years. It generates 60,000 direct jobs across 19 states and over 350 established companies. Mexico ranks 12th globally in the aerospace industry and is the seventh-largest exporter to the United States.

Satellite Development

Another key goal of Plan Mexico is to launch the first 100% Mexican satellite into orbit by 2028.

This new “geostationary” satellite will replace the Bicentennial Satellite (Mexsat Bicentenario), launched in 2012 during the administration of former President Enrique Peña Nieto. Its operational lifespan will end in 2031.

The new satellite is expected to be 100 times more capable than its predecessor. It will feature High-Throughput Satellite (HTS) technology for improved efficiency and speed, providing nationwide coverage and exclusive economic zone access with at least 300 Gbps capacity. It will also address digital inclusion needs, including internet access points.

Legislative Framework

In the short term, one of the planned actions is approving the Outer Space Law, which would empower Congress to legislate space-related matters nationwide.

The Chamber approved this legislation of Deputies in March 2023, but it is still pending discussion and approval in the Senate. By 2025, the government expects Congress to pass a constitutional amendment to Articles 28 and 73, enabling the regulation of outer space activities, including on the Moon and celestial bodies. These activities are identified as national development priorities under Article 25 of the Constitution.

Challenges

Luis Lizcano noted that while all federal goals are achievable, funding remains a significant obstacle.

“One of the significant challenges is the comprehensive vision required. Financing is another major hurdle, but we celebrate the plan’s objectives and its overall direction,” he said.

“I’m confident we can achieve the goals set forth by working together. We also appreciate that the sector’s needs and the integration of national capabilities have been considered,” he added.

Lizcano also pointed out that the aerospace industry in Mexico presents logistical and energy challenges due to its ambitious and long-term nature.

“Grand plans come with grand challenges, which require all stakeholders to address them collaboratively,” he remarked.

Without overhyping expectations, Lizcano emphasized the initiative’s positive trajectory. Given the increasing demand for space missions, he highlighted the logistical challenges regarding satellite projects, particularly the limited capacity for current satellite launches.

Conclusion

In conclusion, the aerospace industry in Mexico stands at the cusp of transformative growth, driven by ambitious government initiatives and collaboration with private sector and academic stakeholders. While challenges such as funding, logistics, and regulatory frameworks remain, the outlined goals—ranging from satellite development to advanced manufacturing—highlight the country’s potential to become a global leader in aerospace innovation. With sustained commitment and strategic planning, Mexico’s aerospace industry can achieve its 2030 objectives and serve as a cornerstone for national economic development and technological advancement.

Foreign Investment in Roatan: Three New Hotels Adding Over 300 Rooms to Be Built

Foreign Investment in Roatan: Three New Hotels Adding Over 300 Rooms to Be Built

by | Jan 15, 2025 | FDI Latin America

Although the United States and Canada lead foreign investment in Roatan, investors come from Mexico, Guatemala, El Salvador, Spain, and Italy. Significant public and private investments will be made in 2025.

More hotels, both large and small, will be built this year on the island of Roatán, Bay Islands, located in the Caribbean region of Honduras.

A significant wave of public and private investment is set to take place this year in Roatán, where foreign investors continue to focus their attention due to the island’s diversity in tourism and commerce.

Ronnie Macnab, mayor of Roatán, recently spoke about the investment plans and development taking place on the island, which continues to grow in tourism.

Although Americans primarily lead foreign investment in Roatan, the island also has investors from Canada, Mexico, Guatemala, El Salvador, Spain, and Italy. Most of this investment is concentrated in tourism infrastructure.

“Private investment grew exponentially in 2024, as reflected in the municipal budget, which increased by 25%. We approved over 1,500 operating permits, 800 of which were for new businesses, primarily catering to tourists, including tours, souvenir shops, restaurants, small hotels, and new construction companies that opened offices here due to the boom in construction,” Macnab explained.

In 2024, the municipal budget of over 290 million lempiras was invested in infrastructure projects and unforeseen needs in schools and hospitals following the fire at the public hospital.

New Investments for 2025

This year, the mayor’s office plans to build a market for vendors selling handicrafts, a new municipal market to replace the current one, a school, two clinics, complete the main road, and develop social projects.

“Our biggest effort will be paving as many secondary roads as possible,” said the mayor.

The municipality is assisting investors in expediting environmental licenses and construction permits. The projects set to begin include a hotel with over 150 rooms, including a tourist plaza, a boutique hotel with 45 rooms, and a luxury hotel with 60 rooms. Additionally, several existing hotels are expanding their accommodations. These investments combine local and North American capital.

“In the West Bay area alone, we expect to add approximately 250 more rooms across several hotels. Similarly, a project involving vertical apartment buildings is in the planning stages in the French Harbor area. The projections for the first six months of this year are very positive,” added Macnab.

Through the National Airport Service (SAN), the government is investing $25.4 million (over 631 million lempiras) in renovating the Juan Manuel Gálvez International Airport.

The upgrades include a new control tower and access points, a fire station, improvements to the asphalt runway and electrical systems, new furniture, terminal expansions, and new baggage carousels.

“We see this positively. We are glad the government considered our request to expand this terminal. On certain days, the airport is overwhelmed with the number of people entering and leaving,” Macnab said.

More airport capacity is needed

The airport was designed to handle about 250,000 travelers annually but now serves over half a million. The new design is expected to meet a demand of between 750,000 and one million passengers, which is anticipated to further boost domestic and foreign investment in Roatan.

It is also worth noting that the real estate sector is on the rise, with increasing sales of houses and land.

Álvaro Durón, general director of the Bay Islands Chamber of Commerce, explained that Roatán is attractive to foreign investors because its residents speak Spanish and English in addition to the beauty of its beaches.

One of the most significant private investments announced for this year is by Margaritaville and Karisma Hotels & Resorts. This all-inclusive luxury hotel will feature over 150 rooms, outdoor music venues, a spa, and unique dining concepts. While this will be their first property in Honduras, both chains exist in many other countries.

Durón noted that while there are still significant investments, many are local, with foreign investment in Roatan on a smaller scale due to uncertainty among investors, which has delayed some projects.

Investment Could Be Greater

“There’s hesitation to invest because there’s no clear direction. Investors don’t know what might happen with the new Tax Justice Law, which limits large projects, particularly on the island, where everything is so expensive due to the need to import materials from the mainland. These projects are not viable without some incentive,” he explained.

The business leader emphasized that certainty, clear rules to build confidence, and incentives are key to attracting new investments to the country.

“The expansion and renovation of the airport are vital for attracting new investments, and new flight routes are needed,” he stated.

Conclusion

In conclusion, Roatán stands at a pivotal moment for economic growth and development, driven by significant foreign investment in Roatan and local investments in tourism and infrastructure. While new hotels, expanded accommodations, and the upgraded international airport promise to enhance the island’s appeal, challenges remain. Addressing concerns over policy clarity, providing investment incentives, and improving logistics are essential for sustaining this momentum. With its natural beauty, bilingual population, and strategic initiatives, Roatán has the potential to solidify its position as a premier destination for tourism and commerce in the Caribbean, provided that the right conditions foster investor confidence and long-term growth.