Government and Private Sector Establish Mechanism for Expanding and Facilitating Foreign Investment in El Salvador

The Salvadoran Government has recently unveiled a new mechanism that it expects will promote, expand, and streamline foreign investment in El Salvador. In an official statement, the Government announced the creation of the Investment Facilitation Committee (CFI), a public-private collaboration mechanism that will serve as a formal point of contact to promote and attract foreign investment.

CFI is the Product of a Development Agenda Focused on the Future

CFI is the formal product of a national development strategy that is being implemented by the Government, and in which foreign investors are invited to participate. The Committee is presented as an innovation agenda that seeks to open the country to new productive projects and companies, with the strategic aim of positioning El Salvador as an increasingly competitive and reliable place to do business.

Through this move, the Salvadoran Government is betting on economic growth and foreign investment in El Salvador as an engine of development and employment, modernizing the country and strengthening its regional and international position. El Salvador expects to boost investment in key sectors such as energy, manufacturing, agroindustry, logistics, services, and technology, among others.

Committee Focuses on Generating a Predictable Investment Climate in the Country

The government announced that the CFI is a space for interinstitutional coordination and private-sector involvement, including strategic investors, with the function of promoting, attracting, and safeguarding new economic and productive options for the country. “It is not only about facilitating procedures but also about generating greater integration, transparency, and predictability for those investors who are evaluating opportunities in different industries for foreign investment in El Salvador,” they added.

The CFI is a new step in the process of positioning El Salvador as a reliable investment destination, which also includes the digital transformation, the consolidation of macroeconomic stability, the simplification and rationalization of administrative procedures, and the strengthening of capabilities, among other aspects.

Salvadoran Economy Grows, Investor Interest Increases

The new mechanism has been launched at a time when the country is experiencing a growth cycle and has been a destination for international capital attracted by favorable political conditions, including an improvement in public security, infrastructure rehabilitation works, and the modernization of the fiscal system, among other important developments.

Authorities report that in recent years, El Salvador has received investment from new companies and the expansion of those already operating in the country. For 2025, they have announced a total of 32 projects already certified by the CFI, for $353 million. Growth in activity and improving business conditions have allowed El Salvador to be increasingly well-positioned in the eyes of investors looking for new opportunities.

Structure and Participants of the CFI

With regard to its structure and participants, the Ministry of Foreign Affairs has been appointed as Technical Secretariat of the CFI, for the efficient functioning of the mechanism, with the formal direction of the Secretariat of Commerce and Investment of the Office of the President, and the participation of different sectors of the public administration.

“The decision to create the Investment Facilitation Committee is precisely based on the need to act in an articulated manner,” Miguel Kattán, Secretary of Commerce and Investment, stated. “If we want to attract investment, generate dignified work, and transform our economy, we must be a team, alongside the private sector, the productive sector, and all our allies,” he said. The CFI is expected to bring together all public institutions and private-sector actors, generating greater focus, consistency, and efficiency in decision-making and work.

On the government side, the CFI is made up of the Ministries of Economy, Finance, Tourism, Environment and Natural Resources,  Agriculture and Livestock, and the Central Reserve Bank (BCR), the Export and Investment Promotion Agency (INVEST), and CONAMYPE. Representatives of the productive sector, as well as business leaders and sector associations, are also part of the Committee.

Private Sector Affirms the Importance of Participation in the CFI

On the other hand, the private sector and business leaders have affirmed the importance of working hand in hand with the public sector in a joint and coordinated manner. In this regard, Luis Videgaray, Vice President of the Salvadoran Association of Industrialists (ASI) has commented: “We believe that joining efforts and institutional resources in the CFI makes it possible to work on several fronts at the same time. These include the legal framework, procedures, promotion of information, and support of strategic infrastructure projects, among others.” For his part, David Bravo, President of the Salvadoran Chamber of the Construction Industry (CASALCO), affirmed: “Through the Committee, we will work to make the Salvadoran business environment more competitive by favoring direct communication between the public and private sectors, generating certainty and transparency for our investors.”

Foreign Investment in El Salvador: The International Community Takes Note

Ambassadors and representatives of international organizations accredited in El Salvador have also taken an interest in the CFI, which has allowed them to learn more about the functions and guiding principles of the instrument. In general, the foreign community has seen this mechanism as an opportunity to advance economic ties with El Salvador and support companies from their countries that are interested in finding new opportunities for foreign investment in El Salvador.