The experience of being a tourist in El Salvador and traveling from end to end to see the country’s beauties is reborn after the improvement of the security situation, say sector experts. Tourism investment in El Salvador has rebounded.

The country has incredible beaches, volcanoes, lakes with turquoise waters, and Mayan pyramids surrounded by lush vegetation. El Salvador offers all of this to travelers. But fear of gang violence, which plagued the country for three decades, long held back the potential for tourism investment in El Salvador. Added to this difficult situation was the COVID-19 pandemic of 2020.

However, tourism investment in El Salvador is experiencing a notable rebound. In 2022, 2.5 million tourists entered El Salvador, thus recovering 96% of pre-pandemic volume, according to the Salvadoran Tourism Corporation (CORSATUR) figures.

Tourism figures have been rising since 2019

The World Tourism Organization (UNWTO) places El Salvador in fourth place worldwide in 2023 and first in Latin America in terms of the increase in international visitors compared to 2019. El Salvador has surpassed Colombia and the Dominican Republic. As of November of that year, some three million people entered the country, a 27% growth compared to 2019.

The measures to improve security taken by the Nayib government Bukele favor the sector, according to experts from San Salvador. “Security is a relevant factor to encourage national and international tourism in El Salvador,” says Silvia Orozco, executive director of the Salvadoran Chamber of Tourism (CASATUR). “This is reflected in the figures up to December 2023, where El Salvador exceeded the number of international visitors by almost 30 percent compared to 2019, the reference year for the sector,” she adds. The economic contribution of tourism is US$3.6 billion, and it is the second sector that contributes the most to the country’s Gross Domestic Product (GDP) after remittances, with 11.3% in the third quarter of 2023.

What other measures by Bukele influence this rebound in tourism investment in El Salvador? “We consider that it is the first time that a Salvadoran government is strategically betting on this area, with strong investments and promotion,” notes Silvia Orozco.

State, private, and international investments encourage tourism investment in El Salvador

These growth figures are due “to all the new tourism activities implemented by the current government, which has created a new image of an emerging destination,” Ingrid García, sales manager of the Tour Bus operator, asserts. El Salvador: In 2023, tourists arrived mainly from the US (43%), Guatemala (23%) and Honduras (15%). 56% arrived by plane and 44% by land, remaining two to three weeks in the country, reports the Ministry of Tourism of El Salvador (MINTUR). “Since 2022, a change has been noticeable, which we have seen in rural areas, in towns where people now dare to put a cafe or a small business. There is still a lack of investment in some places. Still, the beginnings have given outstanding results,” highlights García. Garcia also points out that the Inter-American Development Bank (IDB) has helped invest in roads and access to tourist areas “to speed up connectivity.”

Raúl Castro, the Salvadoran Association of Tourism Operators and Wholesalers president, agrees with this. His organization that promotes tourism investment in El Salvador brings together private companies with more than five years in the business: “There are investments by private companies and international organizations, as well as investments from the State, “he explains.

Controlling the violence of criminal gangs has been the decisive element. “The government has carried out different actions to make El Salvador visible worldwide. We as citizens feel that the security issue is practically resolved, and that also makes the country more attractive internationally,” says the executive director of CASATUR. The situation of insecurity and violence, he assures, “has changed in the last two years.”

Raúl Castro emphasizes in this regard that the government’s security strategy “has been essential for international tourism in the European, American, and Canadian markets. “The Bukele phenomenon has helped to improve the positioning of tourism investment in El Salvador, to be taken more into account than before, for example, at international tourism fairs.”

Ideal waves for surfers, adventure tourism, and also relaxation

The figures reveal that crime is decreasing in the Central American country. In 2018, more than 50 intentional homicides were committed there per 100,000 people. In 2019, there were (in rounded figures) 35; in 2020, 21; in 2021, 18, according to the UN Infosegura Program, reaching almost 8 in 2022.

The Ministry of Tourism of El Salvador’s plan is also bearing fruit. That portfolio and other institutions responsible for the area carry out joint measures based on the National Tourism Plan 2030. This plan contemplates “the preservation of the socio-cultural and natural heritage of the nation, the protection of biodiversity in the process of the phenomenon of tourism,” among other things. This is “a new vision for the tourism sector,” according to that ministry.

One of the focuses of the plan is the development of the Pacific coastal area, for example, with international surfing tournaments. In 2020, the country was the chosen venue for the World Cup Surfing Games.

But El Salvador is not only a paradise for surfers. It is also an excellent destination for those seeking adventure or relaxation. “Leisure tourism not only seeks the perfect wave, but also the cultural and historical experience, the experiential of nature,” says Raúl Castro. “All that natural wealth, short distances and biodiversity, in a small territorial area, creates an environment within which “people can live several experiences in a single country, in a short time.”

In conclusion, the resurgence of tourism investment in El Salvador is a testament to the transformative impact of concerted efforts in bolstering security and promoting the country’s diverse attractions. With a remarkable decrease in crime rates and strategic initiatives by the government, including robust investments and promotion, El Salvador has reclaimed its position as an emerging destination on the global tourism map. From its stunning beaches and volcanoes to its rich cultural heritage, the country offers many experiences for travelers seeking adventure, relaxation, and exploration. As El Salvador continues to harness its natural and cultural assets while prioritizing sustainable development, it is poised to thrive as a premier destination, welcoming visitors from around the world to discover its wonders.

Honduras, a Central American nation known for its Mayan ruins, boasts a surprisingly robust manufacturing sector. Though agriculture remains a significant contributor, industries like textiles and auto parts drive economic growth and create jobs. This blog post delves into the key players, explores workforce readiness, and examines the future of manufacturing in Honduras.

The Honduran manufacturing landscape

Honduras’ manufacturing sector is multifaceted, catering to various global markets. Here’s a breakdown of some key industries:

Textiles:  The undisputed champion of the textile industry, the textile industry is the crown jewel of Honduran manufacturing. According to the World Bank, it contributes over 7% of the country’s GDP and employs over 173,000 individuals—companies like Fruit of the Loom leverage Honduras’ skilled workforce.

Honduras has carved a niche in specific textile products, catering to a global market. Here’s a breakdown of some critical items manufactured in the country:

Clothing Essentials:

• T-Shirts: Undoubtedly the champion, Honduras is the leading exporter of cotton T-shirts to the United States [1]. Companies leverage skilled labor and favorable trade agreements to produce high volumes of basic and branded T-shirts.
• Underwear: Another major category, Honduras produces a significant amount of underwear for both men and women, catering to major international brands.
• Socks: Rounding out the essential clothing category, sock production is a growing segment within the Honduran textile industry.

Casual Wear:

• Sweatshirts and Hoodies: Fleecewear, mainly sweatshirts and hoodies, is another area where Honduras excels. They are a prominent exporter of these items to the United States.
• Casual Shirts: Beyond basic tees, Honduras manufactures casual shirts like polos and button-downs.

Other Textile Products:

• Denim Apparel: While less dominant than other categories, there is some production of denim clothing like jeans and jackets in Honduras.
• Home Textiles: Some companies might produce essential household items like towels and bedsheets.

Auto Parts:  A rising star, the auto parts industry is steadily gaining traction. Honduras has become a significant player in wire harness production, a vital component in automotive electrical systems. Companies like Aptiv Services Honduras S De RL are capitalizing on favorable trade agreements and a skilled workforce to cater to the growing demand for cost-effective auto parts in the US market.

While wire harnesses are currently the most prominent auto parts manufactured in Honduras, there is some evidence of a growing diversification within the Honduran auto parts industry. Here’s a glimpse into what might be emerging:

• Simple to Moderately Complex Stamped Parts: Companies might start with simpler components manufactured through metal stamping. These could include parts like brackets, clips, and certain body panels.
• Interior Plastic Components: Production of interior plastic parts like dashboards, door panels, or trim pieces could be possible.

Food Processing:  Honduras’ fertile lands contribute to a thriving food processing industry. Major companies like Ambev Centroamérica (part of the AB InBev beverage giant)  process and export coffee, a cornerstone of the Honduran economy [6]. Other processed food exports include fruits, vegetables, and seafood.

Beverages:  Beyond coffee, Honduras boasts a growing beverage industry. The Coca-Cola Company, for instance, has a significant presence in Honduras, bottling and distributing popular beverages [7].

The Honduran Workforce: Backbone of Manufacturing

Honduran manufacturing success hinges on its dedicated and skilled workforce. Here’s a closer look at its composition and preparedness for jobs in production:

Demographics: The workforce is relatively young, with a median age of around 22 years. This presents a significant advantage for future growth, with a readily available pool of potential employees.

Gender Composition: Women comprise a significant portion of the workforce, particularly in the textile industry. This is a positive indicator of female empowerment within the Honduran economy.

Skills and Training: The current skillset leans towards manual dexterity and assembly line work, well-suited for the textile sector. However, for the auto parts industry and future advancements, there’s a growing need for technical skills in robotics and automation.

Workforce Preparedness: Bridging the Skills Gap

While the Honduran workforce possesses a strong foundation, there’s a need to bridge the skills gap for continued manufacturing success:

Technical Education: Increased investment in technical education programs that equip workers with skills like computer-aided design (CAD) and robotics will be crucial for diversifying into more advanced manufacturing sectors.

Vocational Training: Expanding vocational training programs specifically focused on the needs of the auto parts industry can create a readily available pool of skilled workers.

Apprenticeship Programs: Developing apprenticeship programs in collaboration with established manufacturing companies can provide valuable on-the-job training and experience.

The Future of Honduran Manufacturing: Innovation and Growth

The future of Honduran manufacturing looks bright, with opportunities for continued growth:

Technological Integration: Embracing automation and advanced manufacturing techniques can enhance efficiency, productivity, and competitiveness in the global market.

Sustainability: Focusing on eco-friendly practices in the textile industry, like organic cotton and recycled materials, can attract environmentally conscious consumers and international brands.

Infrastructure Development: Continued investment in infrastructure like transportation networks and reliable energy supplies will strengthen supply chains and attract further investment.

The Honduran manufacturing sector drives economic growth and job creation. Honduras can solidify its position as a viable player in the global manufacturing landscape by focusing on diversifying industries, addressing workforce skill gaps, and embracing technological advancements.

With investments from the United States and China, the market for Latin American startups looks positive in 2024.

In 2024, there are new trends in the US investment market, and many are beginning to look towards emerging countries. This development promises to boost startups in these regions. This blog post looks at what 2024 will bring for the world of investments and how these new trends will influence Latin American startups.

Notably, in 2023, total venture capital funding in Latin America, including domestic investments, fell by more than 63%, leaving many entrepreneurs thinking that it would be difficult to raise capital this year.

The current state of the investor market and nearshoring

Nearshoring is a significant macroeconomic trend today. Manufacturing companies are moving their processes from distant locales to sites that are closer to their borders.

Trade between the United States and neighboring countries such as Canada and Mexico (rather than China or Europe) makes transporting goods cheaper and faster. In the context of the war between Russia and Ukraine, instability in the Middle East, and US sanctions on China, keeping global supply chains close and operational is more critical than ever.

This trend is one of the reasons for the increase in global foreign investment in Latin America and represents an opportunity for US investors to access high-growth stocks. Even more critical, nearshoring means a stronger connection between both markets, so the US market trends will also affect the Latin American market.

As a result, several Latin American companies have successfully integrated into the North American market. An example of a company that went public in the United States and is generating a multiplier effect on other companies is Globant, which operates in many countries to offer technology and software development services. The company empowers companies like Ubisoft, LinkedIn, JP Morgan, and Nissan.

Another example of a Latin American company offering services to create bridges between the United States and Latin America is Félix Pago. This financial technology company offers cross-border payments through WhatsApp. It is increasingly being used by immigrants in the United States who send money to their families in other countries, like Mexico. It is a very useful service to simplify bank transfers between the countries most benefited by nearshoring and has experienced tremendous growth since it was extended to the US. That is why, in such a short time, this Latin American startup became a unicorn, that is a company with a value of over $1 billion.

Benefiting directly from the nearshoring effect does not mean a company can go public more quickly. However, if a Mexican company sells services to companies in the United States or has income from that market, it could be argued that it is worth more, thanks to having a lower country risk when it comes to its billing and collection of invoices.

What other trends will define the ecosystem for Latin American startups in 2024?

Three more trends will define the Latin American startup ecosystem in 2024. They have already begun appearing in the United States and will soon start to affect Latin America.

The first is the reduction of interest rates. The Federal Reserve has forecast a significant decrease in interest rates during 2024. As a result, fixed-income assets become less attractive.

The next trend is more investments in higher-risk assets. When interest rates rise, investors naturally do not want to bet on high-risk assets because they achieve good income through fixed income. Conversely, when interest rates fall, investors regain their appetite for risk since fixed income is no longer attractive. This, added to the growth projections due to the nearshoring phenomenon, makes investing in Latin American stocks less risky for US investors thanks to the positive impact of its cross-border category.

Finally, based on conversations with various entrepreneurs in Brazil and Mexico, executives from large Chinese and Asian companies have recently traveled to Latin America to meet with executives from high-growth Latin American startups. These Chinese companies are expected to acquire one or two of the most relevant private players to enter the Latin American technology ecosystem more strongly or at least become a significant source of capital for high-growth startups.

In China, there are companies comparable to those in Latin America that are more advanced in terms of profitability since they started decades before their Hispanic counterparts. Therefore, they have considerable capital on their balance sheet. This opportunity also arises because the stock markets in China are at their lowest point, and, therefore, certain companies are looking to invest abroad. China has always wanted to be a strategic partner in Latin America.

2024 should be a promising year

In conclusion, the landscape for Latin American startups in 2024 appears promising, fueled by investments from both the United States and China. The trend of nearshoring, driven by geopolitical and economic factors, presents significant opportunities for these startups to integrate into the North American market and attract foreign capital. Additionally, as interest rates decline and investors seek higher-risk assets, Latin American stocks become more attractive, further bolstering the region’s startup ecosystem. Furthermore, the prospect of acquisitions and capital infusion from large Chinese companies signifies a deepening of ties between Latin America and Asia, presenting new avenues for growth and collaboration. With these trends shaping the environment, Latin American startups are poised for continued expansion and innovation in the global marketplace.

Venture capital in Peru has emerged as a vibrant ecosystem, showcasing remarkable potential for entrepreneurial growth and economic development. In recent years, the Peruvian startup scene has witnessed a surge in innovative ventures across various sectors, reflecting the country’s evolving entrepreneurial landscape. This blog post aims to delve into the current environment for venture capital in Peru, analyzing the types of businesses driving this economic activity and their impact on the nation’s economic trajectory.

The Rise of Venture Capital in Peru

Peru’s venture capital landscape has undergone a significant transformation, fueled by an influx of investment and a burgeoning startup culture. According to recent data from the Peruvian Private Equity and Venture Capital Association (PECAP), venture capital investment in Peru grew in 2023 compared to previous years despite potential headwinds from the global economic climate. An influx of capital has catalyzed the growth of innovative startups across various industries, ranging from fintech and e-commerce to healthcare and agriculture.

Diverse Business Ventures

One notable aspect of the venture capital scene in Peru is the diversity of business ventures gaining traction in the market. The Peruvian startup ecosystem encompasses many innovative ventures, from tech-driven startups harnessing the power of artificial intelligence and blockchain technology to social enterprises focusing on sustainability and social impact. This diversity reflects the country’s entrepreneurial dynamism and presents lucrative investment opportunities for venture capital firms seeking high-growth ventures with scalable business models. Some of these opportunities are in the following economic sectors:

• Agrotech: Peru’s agricultural sector is ripe for innovation, with opportunities in precision agriculture, agri-finance platforms, farm management software, and agricultural drones to improve productivity and sustainability.
• Fintech: Peru’s financial sector is rapidly evolving, presenting opportunities in digital payments, lending platforms, blockchain-based solutions for remittances, and personal finance management apps targeting the underbanked population.
• Healthtech: With a growing middle class and increasing demand for quality healthcare services, there are opportunities in telemedicine platforms, health information systems, medical device innovation, and digital health solutions focusing on preventive care.
• Edtech: Peru’s education sector is undergoing digital transformation, creating opportunities for edtech startups offering online learning platforms, educational content, virtual classrooms, and skill development programs tailored to both students and professionals.
• E-commerce and Marketplaces: The e-commerce market in Peru is expanding rapidly, driven by increasing internet penetration and smartphone adoption. Venture capital firms can invest in e-commerce platforms, online marketplaces, logistics and delivery services, and last-mile solutions to capitalize on this growing trend.
• Renewable Energy: With Peru’s abundant natural resources, there are opportunities for renewable energy projects such as solar, wind, and hydroelectric power generation, as well as energy storage solutions and smart grid technologies to meet the country’s growing energy needs sustainably.
• Tourism and Hospitality Tech: Peru’s tourism industry is a significant contributor to its economy, and there are opportunities for venture capital firms to invest in technology-driven solutions for travel booking platforms, hospitality management software, tour operators, and experience-sharing platforms targeting both domestic and international travelers.
• Sustainable Fashion: With increasing awareness of environmental and social issues, there’s a growing demand for sustainable and ethical fashion products. Venture capital firms can invest in fashion startups prioritizing eco-friendly materials, ethical production practices, and supply chain transparency.
• Transportation and Mobility: Peru’s urban areas face challenges related to traffic congestion and pollution, creating opportunities for investment in mobility solutions such as ride-sharing platforms, electric vehicle infrastructure, micro-mobility services, and traffic management systems.
• SaaS (Software as a Service): There’s a growing demand for cloud-based software solutions across various industries in Peru, including enterprise resource planning (ERP), customer relationship management (CRM), human resource management (HRM), and project management software.

Impact on Economic Growth

The dynamic startup ecosystem fueled by venture capital in Peru is playing a significant role in driving economic growth and fostering innovation. According to a World Bank report, Peru’s startup ecosystem has contributed significantly to job creation. Some of the venture capital companies that are currently active in Peru include:

• Aurus Ventures: Aurus Ventures is a venture capital firm based in Lima, Peru, focusing on early-stage investments in technology startups, particularly in sectors such as fintech, e-commerce, SaaS, and marketplaces.
• Peru Venture Capital: Peru Venture Capital is an investment fund dedicated to supporting high-potential startups in Peru, focusing on industries such as technology, healthcare, agribusiness, and consumer goods.
• ALLVP: While primarily based in Mexico, ALLVP is a venture capital firm that has shown interest in investing in Peruvian startups, particularly those with scalable business models and regional growth potential.
• Acumen Latam Capital Partners: Acumen Latam Capital Partners is an impact investment firm that supports early-stage startups in Latin America, including Peru, focusing on sectors such as financial inclusion, healthcare, agriculture, and clean energy.
• Angel Ventures Peru: Angel Ventures Peru is an early-stage venture capital firm that invests in innovative startups across various sectors, providing seed and Series A funding for mentorship and strategic support to entrepreneurs.
• Wayra Peru: Wayra Peru is a corporate accelerator and venture capital firm backed by Telefónica, focusing on investing in digital startups with disruptive technologies in areas such as IoT, cybersecurity, artificial intelligence, and digital services.
• LAVCA (Latin American Venture Capital Association) Members: While not a single firm, LAVCA represents a network of venture capital investors and active firms in Latin America, including Peru. Many LAVCA members participate in funding rounds and support the growth of startups in the region.
• Peru Tech Ventures: Peru Tech Ventures is an investment fund that provides seed and early-stage capital to technology startups in Peru, focusing on sectors such as software, e-commerce, mobile applications, and digital services.\

Fostering Entrepreneurial Ecosystem

Venture capital in Peru not only provides much-needed funding for startups but also fosters a supportive entrepreneurial ecosystem conducive to innovation and growth. Initiatives such as startup accelerators, incubators, and co-working spaces nurture budding entrepreneurs and equip them with the resources and mentorship needed to succeed in the competitive market landscape. Furthermore, government policies promoting entrepreneurship and facilitating access to capital bolstered the startup ecosystem’s growth, positioning Peru as an attractive destination for domestic and foreign investors.

Peru has implemented several government policies and initiatives to promote entrepreneurship and facilitate access to capital for startups and small businesses. Here are some notable examples:

• Startup Peru: Startup Peru is a government program launched by the Ministry of Production to support the development of the country’s entrepreneurship ecosystem. It provides funding, mentorship, and training to early-stage startups through various grant programs, including the Startup Peru Seed Fund and Startup Peru Scale-up Fund.
• Venture Capital Fund: The Peruvian government has established a venture capital fund to finance startups and high-growth enterprises. This fund aims to fill the gap in early-stage financing and stimulate investment in innovative ventures with growth potential.
• Tax Incentives for Angel Investors: Peru offers tax incentives for angel investors who fund startups and small businesses. These incentives include tax credits and exemptions designed to encourage individuals to invest in early-stage ventures and support entrepreneurship.
• Financial Inclusion Programs: The Peruvian government has implemented financial inclusion programs to improve access to capital for underserved populations, including micro, small, and medium-sized enterprises (MSMEs). These programs include initiatives to expand access to credit, promote digital financial services, and support entrepreneurship in rural areas.
• Technology and Innovation Hubs: The government has established technology and innovation hubs in major cities like Lima to provide entrepreneurs and startups with infrastructure, resources, and networking opportunities. These hubs serve as collaborative spaces where innovators can access mentorship, training, and support services to grow their ventures.
• Regulatory Reforms: The Peruvian government has undertaken regulatory reforms to create a more favorable environment for entrepreneurship and innovation. These reforms aim to reduce bureaucratic barriers, streamline business registration processes, and improve the ease of doing business for startups and small businesses.
• Public-Private Partnerships (PPPs): The government has collaborated with the private sector and international organizations to support entrepreneurship and innovation initiatives. Public-private partnerships (PPPs) facilitate mobilizing resources, expertise, and networks to promote economic growth and job creation through entrepreneurship.
• Access to International Markets: The Peruvian government promotes access to international markets for startups and small businesses through trade agreements, export promotion programs, and participation in international trade fairs and exhibitions. These initiatives help entrepreneurs expand their reach, access new customers, and grow their businesses globally.

These policies and initiatives reflect the Peruvian government’s commitment to fostering entrepreneurship, innovation, and economic development by providing support and resources to startups and small businesses nationwide.

Challenges and Opportunities

Despite the remarkable growth of venture capital in Peru, the ecosystem still faces specific challenges that warrant attention. Access to early-stage funding remains a hurdle for many startups, particularly those operating in nascent industries or targeting underserved markets. Additionally, regulatory hurdles and bureaucratic processes can impede the scalability of startups, hindering their ability to attract investment and expand operations. However, these challenges allow stakeholders to collaborate and address systemic barriers, fostering a more robust and inclusive entrepreneurial ecosystem.

Looking Ahead at Venture Capital in Peru

As venture capital in Peru continues to gain momentum, the outlook for the country’s startup ecosystem appears increasingly promising. With diverse, innovative ventures driving economic growth and social impact, Peru is poised to emerge as a leading hub for entrepreneurship and innovation in the Latin American region. By fostering collaboration between startups, investors, and government stakeholders, Peru will unlock new opportunities for sustainable development and prosperity, paving the way for a vibrant and dynamic entrepreneurial landscape in the years to come.

In conclusion, the venture capital landscape in Peru paints a picture of vibrant growth and promising potential for the country’s startup ecosystem. With diverse ventures spanning various sectors and supported by domestic and international investors, Peru is carving out a niche as a hub for innovation and entrepreneurship in Latin America. Despite challenges such as access to funding and regulatory complexities, concerted efforts from stakeholders across the public and private sectors are driving positive momentum towards a more inclusive and robust entrepreneurial environment. As Peru continues to nurture its startup ecosystem with supportive policies, funding mechanisms, and collaborative initiatives, it is poised to unlock even greater opportunities for economic development and social impact, ensuring a dynamic and flourishing landscape for startups in the years ahead.

Almost six million hectares have the potential to develop forestry investments in Paraguay.

The Forest Investment Viewer, recently presented by the National Forestry Institute ( Infona ) of Paraguay, showed that the country has more than 5,800,000 hectares with very high potential to develop forestry investments in Paraguay.

Based on this potential, the Government promotes the “Paraguay Forestry for the World” plan to position the industry and forest products abroad, meeting the traceability requirements to allow leveraging exports of wood products and commodities such as soybeans and meat.

This was stated by the president of Infona, Cristina Goralewski, during the Plaza Pública DENDE program, where the topic “The new star of the Paraguayan economy” was addressed. The forestry sector: analysis and reflections on its potential”, which also included the participation of Ricardo Kiriluk, director of Desarrollos Madereros, under the moderation of Yan Speranza.

Forest industry investments in Paraguay will have a traceability component

Goralewski explained that the forest traceability component is focused on compliance with the regulations and agreements between the European Union and Mercosur and will allow a demonstration of the development process that Paraguay is carrying out. He stated that today, the markets that pay more for Paraguayan forestry products are becoming more demanding regarding sustainability, regardless of the country’s regulations.

Currently, the country has 205,000 hectares of forest plantations, mainly in the Eastern Region. The manufacturing sector comprises more than 400 industries, of which more than 80% are sawmills, with Caaguazú being the area with the largest number of forestry industries.

Goralewski commented that the Forest Investment Viewer is dynamic and will be updated as new industries are installed in Paraguay, including forestry and biomass consumption.

He cited Paracel, in Concepción, which will invest USD 4 billion and represent 4% of the GDP, and Investancia, in Carmelo Peralta. While Paracel will base its production on eucalyptus, Investancia invests in pongamia, a forest species whose fruit produces biodiesel with a high nutritional component. It can also be used for the production of livestock feed.

Guarantees to finance forestry investments in Paraguay

The head of Infona pointed out the importance of having credits destined 100% to forestry production. He said that the presence of the financial system is still “timid” regarding the sector’s growth, which demands at least seven years for cellulose and biomass and ten years for solid wood. However, he announced that work is being done with the Development Financial Agency (AFD) on a Forest Guarantee Subfund to leverage credits promoting forestry investments in Paraguay.

Goralewski expressed that his challenge as head of the institution in this period is the development of the National Forest Policy, based on an already existing document, which must be updated and reviewed, not only with the forestry sector but also with the financial sector—the industrial sector, among others.

Genetic improvement

For his part, Ricardo Kiriluk pointed out that the genetics of Paraguayan forestry production are excellent and are only available in some places in the world. This is why forestry investments in Paraguay should be taken advantage of. He added that just as Paraguay exports soybeans, corn, different types of oil, and meat in large volumes, the forestry sector has to take that path to export lumber, furniture, pulp, and new related products.

He welcomed the fact that AFD and private banks are developing financing systems to facilitate forestry investments in Paraguay. However, he said that work must continue on the interest rate so that it is low and that there must also be an agile system to grant financing. He added the guarantees when the bank lends, for which they can work with insurers.

He commented that worldwide, the export business of multilaminate boards is approximately 25 million cubic meters per year, for which an offer in quality and quantity is required. In this regard, he indicated that Paraguay could take advantage of the restrictions on production with native wood that exists in some producing and consuming countries and start producing more from lumber of different types, which are inputs for furniture production.

He stated that some local industrialists are exporting furniture kits to different parts of the world. “It would be a great challenge and something very interesting. Let’s start producing wood and industrialized products locally to start building houses,” he expressed.

Meanwhile, Alberto Acosta Garbarino, head of DENDE, said that the forestry sector started very slowly, with a lot of effort, and that it will increase much more with the appearance of paper mills. He added that the financial sector is learning how this business works, with the presence of the AFD, and is beginning to finance long-term projects, with guarantees that allow this financing and suitable insurance policies that can cover the risks of cultivating this crop.

Finally, Yan Speranza indicated the need to join forces with the forestry sector to develop and strengthen financing with knowledgeable specialists who understand its dynamics.

In conclusion, the forestry sector in Paraguay stands at a pivotal juncture, poised for significant expansion and economic contribution. With over 5.8 million hectares identified for forestry investments and a strategic plan like “Paraguay Forestry for the World” in place, the country is well-positioned to capitalize on its natural resources. The emphasis on sustainability, traceability, and collaboration between government institutions, financial agencies, and industry stakeholders underscores a commitment to responsible growth. As initiatives such as the Forest Guarantee Subfund take shape and genetic improvements enhance productivity, Paraguay is primed to emerge as a critical player in the global forestry market, offering raw materials and value-added products. With continued support and strategic investment, the forestry sector is poised to become a cornerstone of Paraguay’s economic prosperity and sustainable development.

SOURCE: Agencia de Información Paraguaya

As part of a collaboration agreement between the Development Bank of Latin America and the Caribbean (CAF) and the World Tourism Organization (UNWTO), several countries have recently been invited to develop an investment guide contributing to generating investment opportunities in the tourism sector.  The document includes investment opportunities, the competitive landscape, regulatory information, and an overview of the country’s attractions to generate business development in the tourism sector.  One of the subjects of the guide is investing in tourism in Uruguay.

Uruguay’s president leads the discussion on investing in tourism in Uruguay

The presentation was led by the Uruguayan president, Luis Lacalle Pou; the Vice President of the Uruguayan Republic, Beatríz Argimón; the Minister of Tourism, Tabaré Viera; the Undersecretary of Tourism, Remo Monzeglio; the General Director of the Secretariat, Ignacio Curbelo, the National Director of Tourism, Roque Baudean, the Executive President of CAF, Sergio Díaz – Granados, the Executive Director of UN Tourism, Natalia Bayona and the Regional Director for the Americas of UN Tourism, Gustavo Santos, among other national, regional, departmental authorities, and representatives of different embassies in Uruguay.

The Executive President of the Development Bank of Latin America and the Caribbean, Sergio Díaz–Granados, presided over the meeting and stated, “This Guide reflects what Uruguay offers.  This includes institutional economic stability, innovation, entrepreneurship, and human talent.  Uruguay also offers sun and sand, nautical tourism, and cruises.  The country has fertile lands for agricultural and wine tourism.  All this is reflected in the guide’s potential to promote investing in tourism in Uruguay.  Additionally, it highlights the important investments that have already been made.”

On the other hand, the Regional Director for the Americas of UN Tourism, Gustavo Santos, referred to “generating more investments in our region and for this having a standard methodology that we have imposed through these Investment Guides so that all the countries in the region can finally reach their tourism potential.

Post-pandemic tourism has made a comeback

The Minister of Tourism, Tabaré Viera, expressed that “tourism is a great engine of development and has perhaps been one of the sectors most affected by the pandemic crisis, but it has also proven the great resilience it has, particularly in Uruguay.  “As a result of the implementation of public policies and the tenacity of the private sector, it has recovered, although it still has some challenges.”

Officials present the guide on investing in tourism in Uruguay

Once the opening was completed, the guide on investing in tourism in Uruguay was presented.  An overview of its contents was presented, as well as further information about the country by the Executive Director of UN Tourism, Natalia Bayona, and the Director General of the Secretariat of the Ministry of Tourism, Ignacio Curbelo.

The General Director, Ignacio Curbelo, said, “We produced the tourism guide with the firm conviction that it would be a very useful tool for motivating entrepreneurs and businesses to invest in tourism in Uruguay.” He pointed out the qualities that make Uruguay a country with excellent investment potential in the tourism sector.

“ Uruguay has political stability and institutionality.  It has had an average gross domestic product of 3.4 percent over the last twenty years.  This number places it above the average of Latin America and the Caribbean, where the index for the rest of the region stands at 2.5 percent.  Regarding inflation, the tourism guide highlights that in Uruguay, it has been at 7.7 percent over the last two decades, closing last year at 5.1 percent.  To this must be added a total foreign direct investment in Uruguay that closed  2022 with 3.8 billion dollars, 71 percent more than the figure for the previous year.

“Between 2015 and 2022, the Investment Law Enforcement Commission cited projects that total $9.6 billion.  Uruguay has investment agreements with 34 countries representing 78 percent of the world’s GDP.  And it is one of the three investment-grade countries in South America,” the secretary general remarked.

For his part, Bayona referred to the 71% growth of foreign direct investment in Uruguay.  “There are very few countries in the world that achieve this.” He further stated, “Uruguay is a success story of Latin Americans investing in Latin America, which is an excellent message to send to parties considering investing in tourism in Uruguay.” Additionally, he reported that almost 4,000 jobs have been created in the last year thanks to investment in tourism in the country.

“Investment financing” was also addressed.  Presentations on this topic were made by the Southern Regional Manager of CAF, Jorge Srur, and the Director of Tourism of CAF, Oscar Rueda.

The day closed with a panel that debated “Investment Outlook,” in which the Director of Ceres, Ignacio Munyo, and the Director of Uruguay XXI, Sebastián Risso, participated.

Macroeconomic strength makes Uruguay a good bet for investment

The guide for investing in tourism in Uruguay presents a vision of the future that highlights the country’s macroeconomic strength, wealth in natural resources, and investment possibilities that respond to new global trends in green investments and the response to global consumer sustainability trends.

The central objective of UN Tourism with the publication of this type of guide in various countries seeks to guarantee the growth and competitiveness of the sector, for which it is necessary to invest considerably in the training and improvement of the professional skills of the staff and implement technical programs that are centered on vocational training.

“Doing Business, Investing in Tourism in Uruguay” aims to show the conditions for attracting foreign direct investment in its five chapters.  The first and second chapters provide information and data on Uruguay’s economic and investment panorama.  Chapter three highlights the benefits of investing in tourism in Uruguay, which are derived from the comprehensive natural offerings, the unique geographical location, and the country’s biodiversity.  Chapter four analyzes green investments and their relationship with the tourism sector and the Sustainable Development Goals (SDGs).

Finally, chapter five analyzes the positioning of the tourism sector in the world and the region, highlighting the sector’s contribution to the country’s GDP, one of the highest in the region.

The presentation of the Investment Guide “Doing Business – Investing in Tourism in Uruguay” marks a significant milestone in promoting Uruguay as an attractive destination for investment in the tourism sector.  With strong leadership from President Luis Lacalle Pou and collaboration from key stakeholders, including the Development Bank of Latin America and the Caribbean (CAF) and the World Tourism Organization (UNWTO), this comprehensive guide showcases Uruguay’s political stability, economic strength, and abundant natural resources.  By highlighting the country’s competitive advantages and investment opportunities, this guide is a valuable tool for entrepreneurs and businesses seeking to capitalize on Uruguay’s potential.  Through strategic investments and a focus on sustainable development, Uruguay is poised to enhance its position as a leading tourism destination, contributing to economic growth and prosperity for years to come.