Page 118 - Forbes - USA (February 2018)

PROMOTION
Banking On Paraguay’s Fiscal Stability

And Digital Future

nder the supervi- small country but welcoming to
sion of Paraguay’s foreigners, and much easier to do
“For the traditional bank, it is difficult to
independent Central business in than its neighbors,”
flourish in emerging markets like Paraguay, as we
UBank, the banking says Beltran Macchi, president
sector comprises more than 50% have many people living in rural areas far from of the Association of Banks. “We
of GDP. Today, banks and commu- are also in need of a lot of invest-
branches. Instead, people are using mobile phone
nications companies are mobiliz- ment, which creates unique
ing technology to increase access to technology. We have the network — now we are opportunities.”
banking for Paraguayans, as well as learning how to use it.” Eduardo Campos, president of
to improve services and products Paraguay’s BASA bank, welcomes
for international investors. — CARLOS FERNANDEZ VALDOVINOS, foreign clients: “We urge foreign
“Profitable and well capital- Governor, Central Bank investors to trust Paraguay, a
ized,” as defined by the IMF, the country of great opportunities.
sector is closely supervised by the The nation has been carrying out
Paraguayan Central Bank, which monetary policy, bank supervi- Paraguay there is a free flow of the right tasks to achieve sustain-
has achieved prudent macro- sion and financial inclusion. capital, and the economy is inte- able development.”
economic stability through con- In 74 years, Paraguay has grated into international financial Viviana Varas, president of
trolled inflation and increased maintained the same currency markets. A major currency in the Paraguay’s largest commercial
regulation. Central Bank Gover- without any readjustments, Paraguayan economy is the U.S. bank, Itau, likewise believes Para-
nor Carlos Fernandez Valdovinos reinforcing its leading monetary dollar, and around 40% of trans- guay possesses all the conditions
is confident he will be hand- policy and stability. According to actions are made in dollars.” necessary to make it an interna-
ing over a “better institution” at Manuel Ferreira, former finance International investors will tional hub for the region. “Para-
the end of his term in 2018, due minister and head of investment find Paraguay’s banks eager to guay is the best-kept secret,” she
to ongoing improvements in consultancy MF Inversiones, “In work with them. “Paraguay is a says. “It has had excellent GDP

Tigo Paraguay:

A Catalyst For Digital And Social Transformation

Leaders at Tigo Paraguay understand how inclusion through technology can drive
success. In Paraguay, Tigo has found an environment that supports innovation and
entrepreneurship, and it has in turn become the number one international investor
in Paraguay today. As Tigo expands, it is transforming the nation of 7 million people.
The midsize telecom operator is bringing broadband and mobile networks to
individuals, households and businesses, schools and hospitals. Through its mobile
money operation, it offers access to financial services in even the most isolated
regions of the nation.
“Technology is a development accelerator,” says Tigo Para-
guay CEO Jose Perdomo. “Allowing people in remote areas to connect to the internet is like providing them
with water or electricity. This is social inclusion, and it’s what makes it fun to work in telecom here. Working
with telecom in developing countries has a real impact. It is a game changer.”
Tigo Paraguay, 100% owned by Millicom, operates in eight countries in Latin America. With a presence in
Paraguay since 1992, Tigo is one of the country’s biggest and most recognized brands. The company employs
more Paraguayans and pays more in taxes than any other business in the country.
Paraguay is an important test market for new products and services. One of the most successful examples
is Tigo Money, now used regularly by more than 1.3 million Paraguayans. “We are to banks what WhatsApp is
to telecom: a disruption to the value chain,” Perdomo says. IDB named Tigo Money “the best mobile financial
CEO Jose Perdomo
inclusion service” in Latin America earlier this year.
Tigo has also invested heavily in cable TV service and content production, with Tigo Sports now the main
sports channel in the country. And Tigo recently launched a B2B service with a private cloud for businesses.
“These examples show that this is a country of innovation, and people are excited about making Paraguay
a better place,” says Perdomo.

www.tigo.com.py

4 Economic Development