Page 116 - Forbes - USA (February 2018)

PROMOTION
Diversifying The Economic Matrix

he Paraguayan invest- Stephan Winkler is a for-
ment and export agency “We are expanding our matrix beyond soy, beef and eign investor in Paraguay’s fast-
and one-stop shop for electricity production and starting an industrial growing forest industry and is
T investors, REDIEX, chairman of EFISA, one of the

is spearheading Paraguay’s eco- takeoff of historic proportions. Paraguay is a country’s leading fully integrated
nomic transformation. In 2017, it serious investment destination.” forestry services and wood pro-
launched Paraguay’s new country cessing companies, with a par-
brand, focusing on Paraguay’s — GUSTAVO LEITE, Industry and Trade Minister ticular focus on biomass for
“fertile economy.” energy. “With ideal conditions
“We have identified four eco- for photosynthesis, and very low
nomic motors ripe for investment “Paraguay is in the heart of “Itaipu Dam is a world leader, production costs, the potential
and growth,” explains Industry South America and an excellent not only in energy production, for Paraguay’s forestry industry
and Trade Minister Gustavo platform for international com- but also in environmental con- is huge,” says Winkler. “A tree
Leite. “Exporting food for the panies to springboard to the rest servation,” says Itaipu Managing in Paraguay can be used for bio-
world, building factories for the of the region. The opportunities Director Dr. James Spalding. mass in four years and saw tim-
region, creating a regional logis- for investment in infrastructure “In June 2017, we were the first ber in eight years. This is one of
tics hub, and promoting forestry and logistics are abundant,” says hydroelectric power plant to be the most productive locations in
and green energy.” Fabian Sesto, the Paraguayan included in UNESCO’s world net- the world. It is also an industry
Paraguay currently produces representative for multinational work of biosphere reserves. We which has the potential to pro-
food for around 80 million Imperial Logistics. provide 75% of Paraguay’s energy tect and ultimately restore Para-
people, predominately from Another pillar of the Cartes demand and 15% of Brazil’s. guay’s native forests, in keeping
meat, corn and soy production. administration is its support for Itaipu’s original loan will be paid with the government’s long-term
But the government plans to manufacturing facilities, known off in 2023, providing a multibil- sustainability goals.”
triple this number, making Para- as “maquilas.” The Maquila law lion-dollar windfall equivalent to Low land prices and over a
guay a key breadbasket for the offers competitive conditions 17% of Paraguay’s annual external million hectares of available
world. Through incorporation for international companies to debt to be reinvested in social and land for forestation are the key
of technology, better territorial assemble their goods in Paraguay infrastructure programs.” for ongoing growth in the sector.
planning and increased foreign for export. Over 150 companies Meanwhile, Yacyreta is also According to Eduardo Almeida of
investments in the sector, Para- operate in Paraguay under the investing in environmental pres- the IDB (Inter-American Devel-
guay is rapidly industrializing law — 70% since 2013 — produc- ervation and has created five opment Bank), 45% of the energy
and modernizing its cooperative ing everything from car parts to conservation areas in Paraguay matrix is biomass. “With growing
farming culture to meet world shoes and toys. covering 20,000 hectares pro- demands for energy from a grow-
export standards. “This is a star program; it is moting tree-planting programs ing population, even with better
Meanwhile, Paraguayan beef, the low-hanging fruit for eco- and public awareness campaigns. transmission from the dams, this

already famous globally for its nomic diversification,” says Leite. The Paraguayan government demand for biomass should not
quality, should be approved for “Sixty percent of the companies is also working with Finnish decrease,” he says.
U.S. sale in 2018. “This is a big are Brazilian, because we have experts to map out the future for
step for Paraguay,” says Juan the most competitive conditions the forestry and biomass sectors,
Carlos Pettengill, president of for manufacturing in the region, and how best to encourage fur-
the Paraguayan Meat Chamber. offering competitive energy ther foreign investment.
“We currently export around and labor costs, low taxes and
300,000 tons of beef per year to a youthful workforce. We are
73 markets, and once we obtain Brazil’s China.” Ninety percent Why Paraguay?
access to the U.S., we plan to also of maquila exports go to Brazil;
begin exports to Hong Kong, however, with President Cartes’
đƫ Best return on investment in South America
Japan and Korea.” successful re-entry of Paraguay
đƫ One of the fastest-growing economies in the region
One of Paraguay’s greatest into Mercosur (a South America
đƫ Strategic location in the heart of South America
challenges has been providing trade bloc established in 1991),

đƫ Cost-efficient and youthful workforce
efficient logistics for exports. exporters now have improved
đƫ Lowest taxation in Mercosur
Blessed with one of the world’s access to Uruguay and Argentina.
đƫ No restrictions to foreign investment and ownership
largest river networks and the Green energy and forestry also
đƫ Foreign-sourced income is tax exempt
third-largest river fl eet, Paraguay hold excellent potential for Para-
đƫ Free trade regime
is adopting international logistics guay, which is the world’s biggest
đƫ Tax benefits and guarantees for investments

standards to become an impor- renewable energy supplier via two
đƫ Abundant opportunities in diverse sectors
tant fluvial hub for the region binational hydroelectric dams,
đƫ Best investment climate in South America
and upgrading key highways, the Itaipu and Yacyreta, and has
đƫ One of the safest South American countries
international airport and its digi- among the world’s best conditions
tal infrastructure. for tree growth for biomass energy.
2 Economic Development