The Ministry of Economy of El Salvador announced the execution of a solid portfolio of investment projects for 2026, as part of the country’s ongoing economic transformation. Through a total allocation of $13.4 million, it will modernize public services, create new opportunities for young people, strengthen institutions, and attract new foreign and local investment. These projects are included in a $64.5 million budget proposal presented by the executive branch to the Legislative Assembly’s Committee of Finance.
This new economic stimulus is not isolated, however. In recent years, significant effort has been put into restoring confidence among investors and citizens in security and public safety. The National Economic Recovery Plan 2021-2025 has also made considerable progress in tackling the cumbersome bureaucracy that was a constant headache for the Salvadoran business environment for decades.
In this new context of greater security and improved macroeconomic conditions, the Ministry of Economy of El Salvador aims to continue building on this momentum in the coming years. For this, a new stage of reforms is foreseen to make the public system more agile, digitized, and full of opportunities for entrepreneurs and investors.
Digitalization and Streamlining of Procedures: More Agility for Entrepreneurs
Digital transformation and simplification of procedures are one of the cornerstones of this new investment round. A total of $3.9 million in resources will be provided by the Development Bank of Latin America and the Caribbean (CAF) for the implementation of large-scale digitalization and administrative simplification projects.
The aim is to eliminate bureaucracy, speed up processes, and reduce the operating costs of micro, small, and medium-sized businesses. To this end, more than 270 administrative procedures have been redesigned, improved, or digitalized in various sectors and stages, from company registration to the issuance of government permits.
Entrepreneurs are saving hours of paperwork, trips to offices, and payments. “We are very happy to continue with the execution of this very successful plan, since at this time it is one of the main projects of the Ministry of Economy of El Salvador. For the past year, we have been working very hard with 270 actions designed, improved, and digitalized, and we will continue doing so,” the Minister of Economy, María Luisa Hayem, added.
She went on to say that both high levels of insecurity and complex bureaucratic structures in the country have impeded the country’s economic development and job creation for Salvadorans. As the country’s economic digitization continues, the Ministry of Economy of El Salvador wants to play a leading role in improving competitiveness and economic diversification by modernizing public systems.
In a similar vein, experts have recognized that simplifying administrative procedures is one of the most effective measures the government can take to increase the country’s competitiveness. This simplification, they note, has a measurable positive impact on small and medium-sized enterprises and entrepreneurs. Administrative simplification will help Salvadoran entrepreneurs save money and time, which can then be invested in expanding their businesses.
They will be able to invest more in improving productivity, increasing output, and expanding their customer base. In addition, increasing entrepreneurs’ efficiency also contributes to strengthening the country’s economy.
Youth Employment and Entrepreneurship Support: Social Investment with Economic Returns
In addition to digitalization, the Ministry of Economy of El Salvador also intends to make important contributions to human capital development and social inclusion. In a consortium with the International Bank for Reconstruction and Development (IBRD), it will carry out three important initiatives during the year 2026 in partnership with the International Bank for Reconstruction and Development (IBRD).
The first is the employability promotion program for young people. It will be supported by a $3.3 million budget allocation and will benefit more than 40,000 young Salvadorans. This project will include training programs, job-readiness tools, and formal job access mechanisms.
It is not only about creating jobs, but also about providing young people with skills that are relevant to the changing demands of the labor market, particularly in the fields of technology, business, and digital tools. “One of the main strengths of the project is to achieve synergies with all the entities involved in employability, so that together we can increase coverage and expand the number of young people who can access quality employment,” commented the vice minister of coordination of the Ministry of Economy, Laura Elena González.
The second one is the entrepreneurship promotion program. To support new business ideas, this project will have $3.4 million allocated. This will include support for entrepreneurial ecosystems such as mentorship, seed capital opportunities, incubation initiatives, and technical assistance to individual entrepreneurs and startups.
The trend in the country towards innovation and new business models, particularly in digital commerce, technology, services and creative industries is very positive. In a context of enhanced business support, the roll-out of this initiative is expected to have positive spillover effects across the Salvadoran economy.
Lastly, $1.5 million will be allocated to an institutional strengthening program. Although it is a component that is often overlooked, the government has shown interest in building a stronger, more efficient institutional framework.
This will include improvements in transparency, internal procedures, coordination between entities, as well as external processes for companies and citizens. Through a transparent and more efficient public service, the authorities will be better able to respond to the demands and needs of citizens and investors.
Investors: Fewer Barriers, More Opportunities
Last but not least, in order to promote investment, the Ministry of Economy of El Salvador will dedicate $1.1 million to strengthening investment promotion and attraction mechanisms. This will include communication campaigns, investment promotion channels, improving relations with companies that want to invest in the country, and operational support for investors.
These efforts come at a time when El Salvador is receiving greater international attention. In addition to greater security, infrastructural modernization and major digital projects to expand online government services have helped to project a new, more modern image to the world.
The Ministry of Economy of El Salvador understands that a competitive economy is not just about a skilled workforce and an efficient public service, but about the entire environment around the two. For this reason, it is also working to reduce administrative barriers and improve the country’s investment climate, so that investors are more receptive and less resistant.
A More Dynamic Future for Entrepreneurs and Investors
All these efforts are part of a larger strategy of the government of El Salvador, focused on digital transformation, inclusive growth, and economic modernization. For companies that want to start or expand their activities in the country, there is a clear message. In terms of the business environment, El Salvador is building a more dynamic, transparent and technologically advanced economic ecosystem.
Whether it is an established business looking to modernize and optimize its operations or an entrepreneur or investor looking for market entry opportunities, the initiatives of the Ministry of Economy of El Salvador are an opportunity to benefit from a country in full evolution and with the will and capacity to compete at an international level.