CEAPI Recognizes Progress in Security and Investment Climate
The Business Council for Ibero-America Alliance (CEAPI) highlighted El Salvador’s security and the government’s current policies, acknowledging the country’s improvements while calling for further administrative simplifications to attract foreign capital. A CEAPI delegation visited El Salvador recently, meeting with business leaders and government officials to assess investment conditions.
CEAPI President Núria Vilanova praised the progress made, stating that El Salvador has successfully established a strong foundation in security, making it a more attractive destination for investors. However, she emphasized the need to streamline bureaucratic procedures and enhance workforce training to fully unlock the country’s economic potential.
Investment and Workforce Development Are Key Priorities
During discussions, Vilanova underscored the importance of continuing reforms to facilitate foreign investment. “The country is on the right track, security, which it already has; a navigable administration; clear policies; and talent, which it possesses. Improving workforce training is key. We saw interest in the launch of the university spearheaded by Roberto Kriete and potential partnerships,” she noted.
CEAPI stressed that ongoing dialogue between the private sector and the government is critical to fostering economic opportunities and ensuring sustainable growth. As a result, foreign investors are looking for a business environment that offers both stability and efficiency in administrative procedures.
According to the Central Reserve Bank (BCR), net foreign direct investment (FDI) flows reached $387.44 million during the first three quarters of 2024. The investment trend fluctuated, with FDI totaling $195.67 million in the first quarter. However, the second quarter saw a decline as outflows exceeded inflows, resulting in net FDI of -$33.6 million. In the third quarter, investment rebounded significantly, with a net inflow of $225.37 million.
Spanish Companies and Their Influence in El Salvador
CEAPI highlighted the long-standing role of Spanish companies in Latin America, noting that Spain has been one of the largest foreign investors in the region for over four decades. “Spain has been investing in Latin America for more than 40 years and has become the first or second largest investor in many countries in accumulated investment,” Vilanova stated.
Spanish companies such as Calvo and Prosegur have established a strong presence in El Salvador, generating employment and contributing to economic development. According to the BCR, FDI from Spain alone amounted to $396.21 million in the first three quarters of 2024, reflecting Spain’s continued interest in the Salvadoran market.
Projections for 2025 and New Investment Opportunities
In 2025, CEAPI expects Ibero-American companies to continue injecting capital into El Salvador across various industries, including food production, water treatment plants, energy, and tourism. The Council views the tourism sector as promising, with significant potential for economic growth.
“Additional renewable energy, tourism, and agribusiness projects are under consideration. This could increase the average growth of recent years, which has already improved significantly,” Vilanova noted. She also suggested that new investment projects could be implemented as early as 2026, further strengthening El Salvador’s economic outlook.
During CEAPI’s visit, the delegation toured the historic center of San Salvador and met with key business figures and policymakers to discuss potential investment strategies. Vilanova praised local business leaders, including Carlos Callejas and Roberto Kriete, for contributing to the country’s economic expansion and international business ventures.
Local Business Leaders Making a Regional Impact
CEAPI acknowledged the efforts of Salvadoran entrepreneurs who have successfully expanded their businesses beyond national borders. Vilanova specifically highlighted the case of Carlos Callejas, describing him as an example of how a “small fish can eat the big fish” due to his strategic vision, organization, and business acumen. His acquisition of an 86.5% stake in the Colombian supermarket chain Éxito was cited as a testament to his business expertise.
Similarly, Vilanova praised Roberto Kriete for expanding his investments into Peru and the United States, reinforcing the idea that Salvadoran business leaders can significantly impact global markets. CEAPI expressed hope that El Salvador would create further opportunities for local entrepreneurs to grow and expand into regions like Spain.
Logistics and Infrastructure Development
On logistics, Vilanova addressed concerns about port congestion, noting that such challenges are not unique to El Salvador. She pointed out that as global trade traffic increases, greater investment in port infrastructure is necessary to maintain efficiency and competitiveness.
CEAPI emphasized that El Salvador has a strategic advantage over other nations due to its geographic location and the growing trend of nearshoring, where U.S. companies are relocating operations closer to North American markets. Strengthening trade ties between El Salvador and the United States further enhances the country’s attractiveness as a business hub.
“There is a need to attract port operators that can capitalize on these opportunities in El Salvador,” CEAPI stated. The organization reaffirmed its commitment to supporting Salvadoran businesses and the government in overcoming logistical challenges by working closely with port sector clients and analyzing best practices worldwide.
Security in El Salvador: A Critical Factor for Investment Growth
CEAPI repeatedly emphasized that security in El Salvador has been one of the country’s most significant achievements, making it a more favorable environment for foreign investors. The Council noted that improved security conditions have helped restore confidence among businesses and entrepreneurs, leading to increased interest from international investors.
With crime rates declining and law enforcement efforts strengthening, companies can operate with greater certainty and reduced risk. Vilanova reiterated that security in El Salvador is vital to its economic strategy and should remain a top priority for long-term investment success.
In addition to reinforcing security in El Salvador, CEAPI encouraged the government to continue refining regulatory processes to ensure that businesses can establish operations smoothly and efficiently. Eliminating bureaucratic bottlenecks can accelerate economic growth and attract more foreign capital.
Conclusion
El Salvador’s economic progress, bolstered by security improvements and strategic investments, positions the country as an attractive destination for Ibero-American and global investors. CEAPI’s recommendations focus on streamlining administrative procedures, enhancing workforce development, and addressing logistical infrastructure needs.
The organization’s delegation underscored the importance of continued collaboration between the private sector and the government to create a business-friendly environment. With security in El Salvador remaining a cornerstone of its investment appeal, further economic reforms and targeted industry growth could pave the way for a prosperous 2025 and beyond.