According to data from the country’s Investment and Export Promotion Agency (Invest in El Salvador), eight out of ten investors interested in El Salvador during the first nine months of 2024 represented new capital. These figures highlight the growing international interest in exploring opportunities in this Central American nation, driven by governmental strategies and the promotion of key sectors.
Growth in Interest in El Salvador
According to statistics from Invest El Salvador, 161 investment opportunities were generated from January to September 2024. Of these, 80.7% corresponded to new capital, 15.5% were aimed at expanding existing businesses, and 3.7% focused on diversifying production. This landscape reflects significant efforts to attract new projects, positioning El Salvador as an attractive destination for foreign investment.
Companies from countries such as Spain, France, Honduras, Uruguay, Singapore, South Korea, and Japan expressed interest in exploring the country’s competitive advantages. These include tax incentives, improvements in infrastructure, and a favorable regulatory environment in key sectors such as technology, tourism, and manufacturing.
The Diaspora as a Driver of Investment
A notable aspect of the data from Invest in El Salvador is the contribution of the Salvadoran diaspora, particularly in strategic sectors like aeronautics and technology. Between January and September 2024, 72 investment opportunities were channeled through Salvadorans abroad. This phenomenon strengthens the economic ties between the diaspora and their home country and expands El Salvador’s economic diversification.
Within these opportunities, the tourism sector occupied a prominent position, attracting 27.8% of the investments proposed by the diaspora. Infrastructure and construction represented 23.6%, while commerce captured 18.1%. Additionally, 11.1% of these initiatives focused on emerging areas such as Bitcoin, technology, and services.
This focus on diverse sectors demonstrates how Invest in El Salvador is working to attract interest in areas that can offer high-added value, leveraging the diaspora’s experience and resources.
Key Sectors for Investment
Beyond tourism and technology, El Salvador has successfully attracted investment in a wide range of economic sectors. These include agro-industry, logistics, manufacturing, energy, real estate, and healthcare. This comprehensive approach enables the country to diversify its economy and create opportunities across multiple areas.
For instance, the agro-industry has gained prominence due to the growing demand for high-quality agricultural products in international markets. Meanwhile, El Salvador’s strategic location has boosted the logistics sector as a bridge between North and South America and improved port and transportation infrastructure.
The energy sector is also receiving attention thanks to the country’s efforts to implement renewable and sustainable solutions. This reinforces El Salvador’s image as a destination committed to environmental preservation and opens new doors for investors interested in clean energy.
Challenges and Opportunities
Despite the notable interest in these sectors, Invest in El Salvador has not provided details on how many generated opportunities materialized. Specific figures regarding the funds ultimately allocated or the physical progress of the projects have also not been disclosed. This presents a challenge, as the practical realization of investments is crucial for measuring the success of the promoted initiatives.
According to the Central Reserve Bank (BCR), net foreign direct investment (FDI) registered during the first three quarters of 2024 reached $387.44 million. However, this figure represented a 27.2% decrease compared to the same period in 2023. More than $390.9 million of these investment flows came from Europe, with the remainder originating from capital in Central America, the rest of the Americas, Asia, and other countries.
This decline in FDI underscores the need for El Salvador to continue improving its business environment to attract and retain significant investments. Invest in El Salvador plays a fundamental role in this process by strengthening investor confidence and maximizing the impact of the identified projects.
Future Projections
In the medium and long term, El Salvador has a unique opportunity to solidify its position as an attractive destination for international investment. Emerging sectors such as Bitcoin and technology, which have already captured considerable interest, could catalyze sustained growth. At the same time, the Salvadoran diaspora will continue to play a key role, not only as a source of capital but also as a promoter of innovative projects.
Finally, for the country to fully capitalize on these opportunities, Invest in El Salvador must implement mechanisms to track and measure the impact of investments. This will ensure that initiatives are announced and become real economic and social development engines.
In summary, the 2024 report from Invest in El Salvador highlights the growing interest in investing in the country, emphasizing new capital and strategic sectors. Although challenges remain in project realization and increasing FDI, the outlook remains optimistic for the country’s future as a competitive investment destination in the region.