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  • A discussion on the TMF Group’s Global Business Complexity Index with Adrian Owen

    A discussion on the TMF Group’s Global Business Complexity Index with Adrian Owen
    2025/06/03
    Thinking about establishing your company in Central America? Contact us. Adrian Owen Podcast Download Adrian OwenManaging Director-Mid AmericasTMF Groupadrian.owen@tmf-group.comThe Central American Group: Hello. Welcome to the most recent episode of the Central American Group podcast. In these recordings, we speak with individuals who have expertise in Central America and, often, the Latin American region as a whole. Today, we have with us Adrian Owen. Adrian is affiliated with the TMF Group, which publishes the Global Business Complexity Index (GBCI) annually. Welcome, Adrian. Would you please tell us a bit about yourself and the organization that you represent? Adrian Owen: Yes. Good morning, Steve. Thanks very much for the opportunity today to talk about Central America. So, my name is Adrian Owen. I’m the managing director of a region we internally refer to as Mid-America, which encompasses Central America, the Dominican Republic, and Jamaica. The company I work for, TMF Group, is a leading provider of critical administrative services. We publish the Global Business Complexity Index each year and help clients invest and operate safely around the world. We have more than 12,000 colleagues in over 125 offices worldwide, and our locations span 92% of the world’s GDP and 95% of foreign direct investment inflows. We position ourselves, Steve, as a key part of our clients’ governance, providing the accounting, tax, payroll, fund administration, and legal entity management services essential to their success, particularly when they enter new jurisdictions. We ensure rules are followed, reputation is protected, and operational compliance is maintained. We work with most Fortune Global 500, FTSE 100, and top 300 private equity firms. Concretely, in Mid-America, I’m based in Costa Rica and oversee operations in the eight countries I mentioned. The Central American Group: Well, that’s very interesting, and it must be quite a challenge for you. One thing I’ve noticed appearing on the Internet, along with some related stories, is the TMF Global Business Complexity Index. First of all, could you tell us what it is, how it’s compiled, and what its ultimate purpose and importance are? Adrian Owen: Yeah, sure, Steve. The Global Business Complexity Index (GBCI) is a key piece of research that helps those navigating rules and regulations cut through layers of complexity, enabling them to conduct business effectively and successfully across borders. It’s TMF Group’s flagship annual report. It provides a detailed analysis of the complexities associated with establishing, operating, and expanding businesses across multiple world regions. It includes a global ranking of 79 jurisdictions based on the complexity of their business environments. The GBCI is built, Steve, from over 290 data points that analyze complexity across three key areas, including rules, regulations, and penalties around business operations, accounting and tax, human resources, and payroll. The index ranks jurisdictions from most to least complex, identifying the root causes of complexity, including bureaucracy, frequent regulatory changes, and a lack of digital infrastructure. Beyond the rankings, the report offers valuable insights to customers on global trends affecting international business operations, including rising digitalization, shifts in tax policy, and changes in compliance obligations. For companies looking to expand into new markets, it’s an essential guide for assessing operational risk and planning effectively. The Central American Group: Well, given that you look most specifically at your role in Central American countries, in recent years, what has been the trend in levels of complexity in that region compared to competitors that are located in Latin America as a whole? Adrian Owen: Yes. I would say that Central American countries, Steve, have made remarkable progress in reducing business complexity, especially when compared to some of their Latin American neighbors. In the most recent edition of the Global Business Complexity Index 2024, countries such as Costa Rica, El Salvador, Honduras, and Nicaragua have emerged as some of the least complex jurisdictions in Latin America. Indeed, most Central American nations now fall into what I would say is medium to low complexity globally. One reason for this, I would say, is that they’re relatively straightforward human resource and payroll processes, which are easier to manage than in many other countries. Meanwhile, accounting, tax, and global entity management remain more intricate but are improving thanks to digitalization and regulatory reforms. Compared to other Latin American countries, some of which I see continue to struggle with bureaucratic inefficiencies and frequent legislative changes, Central America tends to stand out for its growing stability and business-friendly reforms. Even compared to some more developed markets, which tend to be ...
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    18 分
  • Manufacturing in Costa Rica with Ascential Medical and Life Sciences

    Manufacturing in Costa Rica with Ascential Medical and Life Sciences
    2025/03/10
    A conversaton with Sergio Vargas of Ascential Medical and Life Sciences Contact the Central American Group if you want to establish a manufacturing facility in Costa Rica. Sergio VargasGeneral ManagerAscential Medical and Life Sciencessergio.vargas@ascentialtech.comThe Central American Group: Hello. Welcome to this episode of the Central American Group podcast. Because of our operations in Central America, mainly in Costa Rica and El Salvador, we can talk to some very interesting people. Today, our guest is Sergio Vargas. Sergio is the general manager of Ascential Medical and Life Sciences. Sergio, how are you today? Sergio Vargas: Hi, Steven. Good morning. I’m doing well. Thank you for having me. The Central American Group: Can you tell us a little bit about yourself and your company? Sergio Vargas: My name is Sergio Vargas, and I’m the general manager of Ascential Medical and Life Sciences. I’ve been with the company for almost 10 years. I moved to Costa Rica a year ago to help the company with essential Latin America. The Central American Group: Where were you before that, Sergio? Sergio Vargas: I’ve been in a different place. I started in California almost 10 years ago. I stayed in California for eight years, then moved to our main facility in Minnesota. The Central American Group: How many years have you been with Ascential? Sergio Vargas: Almost ten. It will be 10 years this year. The Central American Group: Okay. Well, let’s ask the first question then. What are the products that Ascential Medical and Life Sciences manufactures? Sergio Vargas: We build custom automation solutions for diverse industries but focus mainly on the medical industry. The Central American Group: You focus mainly on the medical industry, but do your products serve any other industries as well? Sergio Vargas: Yes. They can help almost every industry that needs automation, such as electronics, auto space, and food and beverage. The Central American Group: Is Ascential Medical and Life Sciences a manufacturer of dedicated products, or do you work as a subcontract manufacturer for other companies? Sergio Vargas: Right now, we don’t have our product. We specialize in helping our customers develop their automation solutions. So, if a customer has a, we help them improve their processes, quality, and production. The Central American Group: Besides manufacturing products for these companies, does your company provide engineering services to help them design products that fit their needs? Sergio Vargas: Correct. That being said, we have engineering services. If a customer has a production line that needs automation, our engineering team helps them select the right solution to automate their process. The Central American Group: Okay. Given that you have many facilities, and again, you can mention where the facilities are that Ascential Medical and Life Sciences has. Sergio Vargas: Again, for automation, our central location is in Minnesota, but we also have locations in Ireland, Singapore, and San Diego, California The Central American Group: Besides those locations, what led your company to set up in Costa Rica? Sergio Vargas: As you know, Costa Rica has a prominent medical device hub. It was a no-brainer for us to be here next to our partners to help them with their needs. The Central American Group: In addition to your other manufacturing locations, what do you see as being the primary advantageous reasons for being in Costa Rica? Sergio Vargas: One of the main reasons for being in Costa Rica is the high-skill workforce. Being here in Costa Rica, I was surprised by the highly skilled talent, and the young team I have here, my engineering team, has stepped up. They are talented. Also, the tax advantages have been, for example, in the Green Park free zone, where the tax incentive that the government provides is a huge advantage for companies like Ascential Medical and Life Sciences. The Central American Group: Yes, and if you’re a listener, we have podcasts on a free zone regime in Costa Rica, and you can learn about that by listening to some of our other podcasts. But let’s go to the next question. What challenges do you face in Costa Rica manufacturing, and how do you address them? Sergio Vargas: As a high-tech company, sometimes we are not able to find the right components locally. We work with international and local suppliers to try to accommodate our needs. We have an ERP system that allows us to work with our different facilities to try to find the right components at the right time. The Central American Group: It’s always a challenge to find individuals in the labor force who can fill companies’ skill requirements. So, what I’d like to know is, does Green Park provide any assistance to you in finding persons to fill the jobs that you need to have filled? Sergio Vargas: Yes. Once we identify a position that we need to fill and have a job description, we usually send an email to the Green...
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    11 分
  • Costa Rica Foreign Direct Investment Promotion: A Conversation with Pilar Madrigal of CINDE.

    Costa Rica Foreign Direct Investment Promotion: A Conversation with Pilar Madrigal of CINDE.
    2024/10/01
    Costa Rica Foreign Direct Investment Contact the Central American Group if you want to establish a manufacturing facility in Costa Rica. Pilar MadrigalDirector of Investment AdvisoryCINDEpmadrigal@cinde.org The Central American Group: Hello. Today, Pilar Madrigal is with us. She is the Director of Investment Advisory at CINDE, a Costa Rica foreign direct investment promotion agency based in San Jose. Pilar, could you please share information about CINDE, investment in Costa Rica, and your role there? How are you today? Thank you so very much. It’s an honor to be here with you. You are also well-known and recognized, and I’ve followed your trajectory in foreign direct investment. So, I’m pleased to be here with you. I’ve been in various roles with CINDE, a private nonprofit organization with a 40-year history of promoting Costa Rica foreign direct investment for the past 26 years, always focused on promotion, strategy, etc. CINDE in Costa Rica, as you know, has been a key player in attracting foreign direct investment, helping many companies set up operations and invest in Costa Rica through the years. The Central American Group: Costa Rica’s journey in attracting FDI has been fascinating, marked by significant changes in its economic model. Pilar, could you shed some light on the evolution of Costa Rica foreign direct investment promotion over the years? Pilar Madrigal: Yes. I see this in three periods. The beginning was between the ’60s and the ’80s. Costa Rica adopted an import substitution industrialization model like many other Latin American countries. It was aimed to reduce dependency on foreign goods and promote domestic production. The idea was to foster industrial growth for the country’s local companies and attract foreign companies exporting from Costa Rica. By the early ’80s, we faced an economic crisis in Costa Rica foreign direct investment promotion for different reasons. One of the sectors that was heavily affected was agricultural goods like coffee and bananas. At that point, we started implementing some economic reforms and considering positioning Costa Rica in global markets. That was created in the early ’80s, and we started focusing on exports for Costa Rica foreign direct investment promotion. It was then that a critical law was made. It’s called the Free Trade Zone law. The idea was to begin promoting exports by creating policies for domestic companies to export with incentives and to attract foreign-based companies and have them export. That was in between the ’80s and the ’90s. It combined local and new companies to promote exports and Costa Rica foreign direct investment. Now, as of the ’90s, from the ’90s to today, there has been a complete focus on, and it was a significant leap in positioning ourselves as a destination for Cost Rica foreign direct investment. We clearly defined some sectors at that time. The biggest and most well-known case is Intel. I think everybody knows that story. However, we started focusing on attracting high-tech companies in manufacturing and companies in the services industry, primarily in high-value services. Again, we went from an import substitution program to an export promotion of local and foreign companies. Then, in the last decades, we have been solely attracted by foreign direct investment. The Central American Group: You’ve gone through a period where you were trying to substitute imports. Many Latin American countries have tried that and gone through a period of doing that, and that isn’t the optimal way of engendering economic development. Recently, you’ve successfully attracted one industry to Costa Rica foreign direct investment. Can you tell us what that is? Pilar Madrigal: Yes. This is just for the definition of everybody who listens, and I’m sure everybody knows, but just for clarification. We see three main pillars of Costa Rica foreign direct investment or three types of FDI. One is resource-seeking FDI, which is when a company seeks to invest in a location because of its natural resources. That’s typically prevalent in the energy and mining or sometimes in the agri-food industry. That’s resource-seeking. They’re looking at what resources are available in that country. The second one is market seeking. That is a company seeking to invest due to the market size and the growth potential within that market size. There is a high correlation between FDI and the growth of GDP within a country and the size of the country. The third one is efficiency-seeking. That’s when a company is looking to invest in a location because of better production processes, efficiencies, lower costs, etc. We are at CINDE in Costa Rica, and that’s where we are focusing on efficiency-seeking. Why? We’re a small market. Market-seeking, it’s not something that companies are looking for. We don’t support mining, and there are not necessarily a lot of incentives for resources in this area of...
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    27 分
  • Investment outside of the Greater Metropolitan Area in Costa Rica

    Investment outside of the Greater Metropolitan Area in Costa Rica
    2024/05/17
    Investment Outside of the Greater Metropolitan Area in Costa Rica Contact the Central American Group if you want to establish a manufacturing facility in Costa Rica. Maria Paz ArayaCoordinator for investment outside of the Greater Metropolitan Area of Costa RicaProcomermaraya@procomer.com The Central American Group: We’re pleased to have a knowledgeable individual with us today. Her name is Maria Paz-Araya, and I’m sorry if I butchered that pronunciation, Maria. Excuse me. Was it even close to being correct? Maria Paz Araya: I think you nailed it. The Central American Group: In any event, Maria is the Coordinator for foreign direct investment outside of the Greater Metropolitan area in Costa Rica. She will explain exactly what that term means in a few minutes. But before she does, I want to say that she is a member of Procomer. Procomer is the National Agency for Investment and Export Promotion for Costa Rica. Maria, welcome. Can you give us a little bit more information about your background?The Central American Group: Sure. Thank you, Steve. It is a pleasure to participate in your podcast today. Thank you for the opportunity. As you said, my name is Maria Paz Araya. For the past eight months, I have served as the coordinator of foreign direct investment outside of the Greater Metropolitan Areas in Costa Rica. I have 10 years of experience working in foreign trade and around the free trade zone regime in Costa Rica. This experience was gained precisely outside the Greater Metropolitan area in Costa Rica. I’m thrilled to discuss the opportunities and challenges these regions of the country present. The Central American Group: I’d like to have you first before we get into further questions, explain the terms in Costa Rica: there’s the Greater Metropolitan Area, and then there’s outside of the Greater Metropolitan Area. Can you tell me what the latter means in the context of Costa Rica and name some communities that are a part of that area? Maria Paz Araya: Okay, well, I’m going to start by saying what the greater Metropolitan area, or GMA, is from now on in Costa Rica. The primary urban concentration includes the major provinces of San Jose, Heredia, Alajuela, and Cartago, located in the country’s central area. This delineation was established in the 1980s as a fundamental tool for urban planning and fostering economic development within the region. Therefore, areas outside the GMA lie beyond this area and are mainly situated in the northern part of the country. This includes the Pacific and Caribbean coastlines and the Southern regions of Costa Rica’s territory. Some examples of well-known communities outside the Greater Metropolitan area are Limón, Liberia in Guanacaste, San Carlos, San Ramón, Punta Arenas, and Turrialba, to name a few. The Central American Group: Why is it important for Procomer to promote investment outside the Greater Metropolitan Area in Costa Rica at this time, specifically? Maria Paz Araya: Promoting investment outside the Greater Metropolitan Area in Costa Rica is vital for Procomer. It’s important because it opens up new opportunities for businesses and investors in various regions. This directly translates to creating new job opportunities, which is our absolute main goal right now. It is important because it helps distribute economic growth evenly throughout the country. The Central American Group: What specific advantages do locations for investment outside the Greater Metropolitan Area in Costa Rica offer foreign investors looking to establish manufacturing operations, particularly in terms of cost-effectiveness and resource availability? Maria Paz Araya: Sure. There are many advantages for investors to establish investment outside of the Greater Metropolitan Area in Costa Rica. First of all, I could say government incentives. Costa Rica provides tax incentives offered through the free trade zone regime law to companies established outside the greater Metropolitan area. I can go into more detail if you like. Also, there is access to skilled labor. Many regions outside the GMA have access to a skilled labor force, particularly in specialized industries such as agriculture, agro-industry, light manufacturing, and services. With training programs and vocational schools, these areas can provide a pool of skilled workers for manufacturing operations. Another advantage for companies that execute and investment outside of the Greater Metropolitan Area in Costa Rica is the access to natural resources. Many regions outside the GMA have fertile land for agriculture and forestry. It can be advantageous for manufacturing operations that require specific environmental conditions. Now that I have mentioned the environment, we love investors who prioritize environmental sustainability in their operations. Non-metropolitan areas often offer more opportunities for eco-friendly manufacturing practices, such as access to sustainable raw materials. And so, ...
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    15 分
  • Costa Rica and the US Supply Chain: A Discussion with Andrew Crawford of Procomer

    Costa Rica and the US Supply Chain: A Discussion with Andrew Crawford of Procomer
    2024/03/04
    Costa Rica and the US supply chain Contact the Central American Group if you want to establish a manufacturing facility in Costa Rica. Procomer in Houston provides valuable services to foreign direct investors Andrew CrawfordTrade CommissionerProcomeracrawford@procomer.com The Central American Group: Today, we have Andrew Crawford with us. Andrew is the Trade Commissioner and Director for Texas and the Pacific region of the US for the Costa Rican Trade Promotion Agency called Procomer. Today, we will have a conversation touching upon the Costa Rica and the US supply chain. Andrew, welcome. Could you tell us a bit about yourself, your background, and your organization? Andrew Crawford: Steve, thank you for having me. I’m excited to have this conversation with you. I’ve been representing Costa Rica’s interests in trade and investment for the last 20 years in different capacities and countries. Our main focus is to ensure that we can develop capabilities in the export ecosystem and, at the same time, ensure that we create adequate policies to bring foreign direct investments to Costa Rica. So currently, I’m based in the United based in Houston, Texas, and like you said, also taking care of the Pacific region of the United States. In my position, I do significant work on how the Costa Rica and US supply chain interact. The Central American Group: Okay, to start things off, let’s talk a little about trade and geopolitics because that’s on many business people’s minds these days. What can you tell us about Costa Rica and how the Costa Rica and the US supply chain are intertwined? Andrew Crawford: Let me try to elaborate a little on that one, Steven, because I read a fascinating article a few days ago from Shannon K. O’Neill. She’s the Vice President and a Senior Fellow for Latin America Studies at the Council of Foreign Relations. She came up with great insights in that article, Steven. What fascinated me the most is that China currently processes 85 % of the critical minerals that go into high-tech devices worldwide. Also, it has 77 % of the world’s battery manufacturing capacity. That is going to be linked to electric vehicles. The other interesting thing from that article is that the United States authorities started assessing the Costa Rica and US supply chain in vital areas. And critical minerals, which is one that I just mentioned, large capacity batteries, semiconductors, and pharmaceuticals are not in the very best position right now in terms of the Costa Rica and the US supply chain. That tells us what we’ve seen after the pandemic in terms of certain levels of political instability in different regions of the world, a good number of societies and countries not feeling comfortable with what they’re seeing. The chip crisis we had a couple of years ago skyrocketed the prices of many consumer goods. All of these things together brought the idea to the United States it needs to rethink its supply chains. That is a great takeaway from the article, as we see Costa Rican authorities jumping into a different mode for foreign relations from what they saw in the past. Right now, I think everybody pulls the brakes and says it’s time to rethink the idea of heading to Asia in terms of foreign trade as the central core of our trade development in the future and put on the breaks and say that it’s time to get back into a very good position with the United States in terms of critical industries and a relationship that we can build on of the capacities that Costa Rica has. The Central American Group: One of the things that I want to bring up because it’s very important is related to what you were saying about rare earth minerals and how they relate to Costa Rica and the US supply chain. A couple of weeks ago, I happened to read an article in the, believe it or not, the Cowboy State Daily, which is the Wyoming newspaper. According to this publication, there’s been a discovery of rare earth minerals in Wyoming, near a place called Wheatland, that could make the United States the world’s largest producer. So maybe that problem can be solved domestically. According to what I read, the discovery is 2.34 billion metric tons. So, just to put that in there as something we should keep in mind regarding rare earth minerals and our access to them. We may have greater access to them in the future because of this particular find. Andrew Crawford: That is a great thing to address. And that China complements the role closer locations can play for the US. We know this process for transforming minerals into useful middle to intermediate goods takes some time. And the combination of efforts that the United States can make from their local capacities and closer allies can be a game changer in the long run, Steven. The Central American Group: You mentioned a little bit about Costa Rica and the US supply chain. In a broader perspective, what opportunities do you see for Latin America as ...
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    36 分
  • Industrial Real Estate in El Salvador

    Industrial Real Estate in El Salvador
    2024/01/18
    Industrial Real Estate in El Salvador Contact the Central American Group to begin starting up a manufacturing facility in Costa Rica in the Green Park Free Zone. Daniel MillaSenior Real Estate ConsultantColliersSan Salvador, El Salvadordaniel.milla@colliers.com +503 7756-0282 The Central American Group: Today, Daniel Milla is with us. Daniel is a commercial broker for Colliers in El Salvador. Today, we will talk about trends in industrial real estate in El Salvador, America. Good morning, Daniel. How are you today? Daniel Milla: Hey Steve, how are you? Glad to be here with you and ready to start. The Central American Group: Well, listen, before we start, could you tell us a little bit about yourself and Colliers’ operation in El Salvador? Daniel Milla: Sure. I’ve been in industrial real estate in El Salvador for almost eight years now. Colliers started here in the country last year and is consolidating operations in the Central American region, adding to the almost sixty-five countries it already has under its umbrella. It’s opening offices in all of Central America to consolidate in the region and explore opening opportunities. We’re very happy about that. The expansion mentality of Colliers and the enterprising mentality have drawn me to it. It was one of the reasons that drew me to join the network, and here I am. I have experience in residential real estate and also commercial. So, since Colliers is a major corporate real estate company. It is one of the big four: JLL, Cushman, CBRE, and Colliers. These companies are noticing that many opportunities are opening up here in El Salvador and the region as a whole. The Central American Group: That’s interesting that you talk about opportunities in industrial real estate in El Salvador. There have been many changes under the current president, and I’m sure you know, given the much-improved security situation in El Salvador, that trends are positive for you there. Can you tell us a little bit about some of those trends? Daniel Milla: Yes, sure. In the market for industrial real estate in El Salvador, we’re looking at an increase in Build-to-Suit (BTS) projects because we are finding that we currently have a low supply of industrial properties over three thousand meters of roofed space. So, this is a great opportunity to meet demand. We have the full capacity within Colliers to generate these projects and get facilities up and running in six to twelve months in strategic locations nationwide. One of the reasons for that low supply is related to your point about the security increase in El Salvador. A lot of land locations have opened up due to that security increase. This has allowed all of these new locations to open up. They have enormous potential in terms of the logistics corridor that’s being built in the country. The Central American Group: Have you seen positive changes in El Salvador due to the improving situation? Do you see greater interest in international manufacturers looking for industrial real estate in El Salvador? Daniel Milla: One of the greatest potentials of El Salvador is not only the geographic location. Because you can get a 2.5-hour flight to major markets in the US and Latin America. And five days by sea, which is a great connection. Our location is great because the times are excellent for connecting to major markets. That’s really important because the security improvement is opening up many locations for industrial real estate in El Salvador. That’s one of the major tools. Also, in El Salvador, the US dollar is a legal tender. This grants monetary stability. Also, there are a lot of tax incentives that can benefit major multinational companies. Like the Investments Law, the Industrial and Commercial Free Zones Law adds a lot of income tax exemptions and value-added exemptions. Also, there is no property tax in El Salvador. And there’s also an exemption on real estate transfer fees for new major multinational companies operating here in El Salvador. We also have Export Reactivation Laws, the International Services Law, and free trade agreements for Central America, the US, the European Union, Mexico, Colombia, Chile, Panama, and Taiwan. The country is ready to receive all these multinational firms, and it’s open for business. The Central American Group: What kind of manufacturing companies? Could you give us a few examples of manufacturing companies that have looked at industrial real estate in El Salvador and are in the process of looking at El Salvador during this period of improved security? Daniel Milla: To name a few. For example, Haynes Brands is a multinational manufacturing firm with operations here in El Salvador. Also, Fruit of the Loom and Youngone, which is Korean, are here. All of these are already established here in the country. Some of them are looking to expand their operations. We also have a lot of multinational firms that are within the beverage industry or bottling ...
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    13 分
  • The Food Processing Industry in El Salvador: An Overview

    The Food Processing Industry in El Salvador: An Overview
    2023/12/18
    Contact the Central American Group to begin starting up a manufacturing facility in the San Marcos or the International Free Zone in El Salvador. El Salvador, a small Central American nation, has a significant food processing industry that plays a pivotal role in its economy and the region. The food processing industry in El Salvador not only caters to the domestic market but also serves as a significant exporter, tapping into international markets. Understanding the nuances of this sector requires a look at its scope, the raw materials involved, the finished products manufactured, and the strategic advantages of food processing activities in El Salvador in the country’s free zones. Scope of Production The food processing industry in El Salvador is diverse, encompassing a wide range of activities from basic food preservation to advanced value addition. Major sectors within this industry include: Fruits and Vegetables: Given the country’s agricultural strengths, the processing of fruits like mangoes, pineapples, and coffee and vegetables like beans and maize is prevalent. These are processed into canned products, juices, jams, and other derivatives. Dairy Products: Milk, a staple in the Salvadoran diet, undergoes processing into various products such as cheese, yogurt, and condensed milk. The dairy industry has witnessed growth due to increased domestic and international demand. Grains and Cereals: El Salvador boasts a diverse range of grains and cereals cultivated across its fertile terrains. Maize, a cornerstone of Salvadoran agriculture, is transformed into essentials like corn flour for making iconic tortillas, cornmeal for dishes such as pupusas, and various snacks like corn chips. Rice, another vital crop, finds its way into the kitchens as fluffy white grains but also undergoes processing to yield products such as rice flour for gluten-free baking and instant rice mixes. Additionally, beans, integral to the Salvadoran diet, are canned for convenience, transformed into pastes for dishes like refried beans, and ground into flour for diverse culinary uses. Together, these grains and cereals not only cater to the foundational dietary needs of the nation but also serve as versatile ingredients in the vibrant tapestry of Salvadoran cuisine. Meat Processing: While smaller than other segments, meat processing is significant. Beef, poultry, and pork undergo various processes to produce sausages, cold cuts, and canned products. Raw Materials Utilized in Food Processing in El Salvador The richness of the agricultural sector is the backbone of the food processing industry in El Salvador. The primary raw materials include: Agricultural Produce: Fruits like mangoes, pineapples, and coffee beans are sourced directly from farms. Similarly, maize, beans, and other vegetables come from local agricultural hubs. Livestock: For meat processing, livestock farming provides the necessary raw materials. This includes cattle, pigs, and poultry. Dairy Farms: Dairy processing relies heavily on milk sourced from local dairy farms, ensuring freshness and quality. Imported Ingredients: While El Salvador is self-sufficient in many raw materials, certain ingredients, additives, or flavors might be imported to meet specific product requirements or international standards. Finished Products The food processing industry in El Salvador produces many finished goods tailored for local and international markets. Among these products are: Canned Foods: These include fruits, vegetables, beans, and meats, ensuring longer shelf lives and convenience. Beverages: Juices, both natural and flavored, coffee products, and other beverages cater to varied tastes. Dairy Products: The dairy segment offers a range of products, from different cheese varieties to yogurt and condensed milk. Snacks and Confectionery: Processed grains become snacks like tortillas, chips, and cereals. Additionally, confectionery items like candies and chocolates are also manufactured. Benefits of Food Processing in Free Zones Free zones have been instrumental in fostering growth within the food processing industry in El Salvador. Some of the notable advantages include: Incentives and Tax Benefits: Firms operating within free zones enjoy tax breaks, reduced tariffs on imports and exports, and other fiscal incentives, making operations cost-effective. Infrastructure and Support: The Salvadoran government and the private sector have invested in developing world-class infrastructure within free zones. This includes modern processing facilities, logistics support, and research centers. Access to Global Markets: Free zones facilitate easier access to international markets due to streamlined customs procedures, ensuring that Salvadoran products reach global consumers efficiently. Integration with Supply Chains: Companies within free zones can integrate seamlessly with global supply chains, sourcing raw materials and distributing finished products more ...
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    14 分
  • Investment in rail transportation in El Salvador will be more than $1.8 billion

    Investment in rail transportation in El Salvador will be more than $1.8 billion
    2023/12/03
    Contact the Central American Group to begin starting up a manufacturing facility in the San Marcos or the International Free Zone in El Salvador. The regional master plan contemplates that the Central American country will invest significantly to improve rail transportation infrastructure in El Salvador between 2022 and 2035. The first investment significant investment in rail transportation in El Salvador since the 1980s The Government of El Salvador has committed itself to investing more than $1.8 billion in railway infrastructure in the next decade as part of the Regional Mobility and Logistics Master Plan 2035. This plan was recently launched by the Ministry of Public Works (MOP) and the Secretariat of Central American Economic Integration (Sieca). This plan contemplates a total investment of $52 billion in the region’s six countries, of which $10.7 billion corresponds to El Salvador. Romeo Rodríguez, Minister of Public Works for El Salvador, explained that $1.827 billion of this portfolio is allocated only for rail transportation in El Salvador. This service has been paralyzed since the Salvadoran civil war of the 1980s. It plans to establish a road connecting Central America with Mexico within the sector. “It includes a railway network that should be established between the different countries in the region to improve mobility and logistics. It will comprise a network in El Salvador and Guatemala, which connects with Mexico,” said the official. In this regard, the Salvadoran Government contemplates the Pacific Train and a monorail in the Metropolitan Area of San Salvador (AMSS). Last July, the Ministry of Economy (Minec) submitted a request to the European Bank for $450 million to begin executing both projects. El Salvador’s project portfolio also includes $5.8 billion for road infrastructure, $632 million for improving port transportation, and $2.113 million for airport services. In addition, $35 million will be used to improve border infrastructure, and $88 million will be invested in bettering urban logistics. Rodríguez assured that with the interventions in road infrastructure, the average cost to move a ton of cargo would be reduced from $0.17 per kilometer (km) to $0.05, as well as an improvement in travel time from 16 km/h to 60 km/h. “This would lead to a reduction in the cost of goods and then, to a reduction in time and cost of the products that are marketed regionally,” he stated. Follow-up The development of the document was carried out by five Japanese companies and was approved by 18 state portfolios. The Japan International Cooperation Agency (JICA) granted the financing and will send a regional advisor to follow up on the plan, revealed the JICA representative in El Salvador, Masaru Kozono. Sieca ‘s strategy is to guarantee the coordination and socialization of the master plan for improving rail transportation in El Salvador through disseminating social networks, workshops, and seminars,” he added. Also, the institution will train 42 technicians from the region in Japan between 2023 and 2025, providing financial support along with other entities. Financing and projects for infrastructure Meanwhile, Rodríguez pointed out that the World Bank (WB), Inter-American Development Bank (IDB), and Central American Economic Integration Bank (CABEI) have joined in collaborating with the strategy. “The World Bank has already approved the first financing of $150 million for one of the projects: the Apopa bypass, ” he revealed. In addition, he recalled that the plan highlights works that are already being carried out or planned in El Salvador, such as the expansion of the Los Chorros highway, a bridge on the La Hachadura border crossing, the expansion of the Litoral highway, the ferry between El Salvador and Costa Rica, as well as a border facility in El Amatillo. Also included in the plans are roads to improve connectivity with the Las Chinamas and Anguiatu borders and the Pacific Airport. What will El Salvador invest in? The Mobility and Logistics Master Plan 2035 will be implemented in 11 corridors and 398 projects from Guatemala to Panama. El Salvador appears in five corridors. 1.- Road infrastructure El Salvador will allocate $5.8 billion for road infrastructure and land transportation improvement. This represents 58% of the funds contemplated in the plan. 2.- Aeronautical infrastructure This includes a portfolio of $2.1 billion in the airport aeronautical sector, which includes the Pacific Airport. 3.- Maritime port infrastructure A total of $632 million will be allocated for this sector. Currently, the central platform is the Port of Acajutla. 4.- Urban logistics Services and products to improve urban logistics represent $88 million in the Master Plan. 5.- Customs Border management, which, according to Rodríguez, includes specific actions to improve mobility, has the lowest investment, with $35 million. Investing in infrastructure is key to ...
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