Seven Sectoral Investment Opportunities in El Salvador

Specialized textiles and clothing

The textile and clothing sector is one of the main engines for the economic development of El Salvador.  The industry is characterized by a supply chain that has been consolidating and integrating towards the manufacture of higher value-added products.

Historically rooted in El Salvador, the textile and clothing industry is positioned at the forefront of the Central American nation’s economy.

According to Camtex data, El Salvador’s National Textile Chamber of Commerce, the industry currently accounts for 46% of local exports and generates nearly 75,000 direct jobs and more than 200,000 indirect jobs.

The dynamic process of vertical integration of the industry has become consolidated to incorporate all the productive activities of the textile fabric chain, from the production of fibers, the manufacture and finishing of yarns and fabrics, the design, cutting, and making of garments and the associated logistics.  Investment opportunities in El Salvador in this sector enable companies to establish new businesses at the top and bottom of the value chain, as well as in related activities.

Call Centers and BPO

El Salvador is one of the most profitable platforms in Central America for the provision of quality bilingual outsourcing services. El Salvador has a modern and advanced telecommunications infrastructure.

In El Salvador, the Call Centers and BPO industry has experienced unprecedented growth in recent years. Several international companies operate in the country, generating 25,000 direct jobs.

Among the well-known business entities that have established el Salvador, are Sykes, Teleperformance, Convergys, Telus International El Salvador, and Tech Americas, (now Concentrix).

In addition to the aforementioned large companies, investment opportunities in El Salvador in this sector have attracted small and medium-sized firms, such as Focus, Skycom, One Link, BlackHawk Support Services, BPC, Falcon Connection, The Office Gurus, Icallservice, and Fusion,

Aeronautics (MRO)

El Salvador has decades of experience in the aircraft maintenance and repair industry (MRO), bringing the country to a prominent position on the global aeronautical map. The sector has shown annual growth rates of 20% and has generated more than 2,400 jobs to date.

The MRO center run by industry leader, Aeroman, at the Óscar Monseñor Arnulfo Romero International Airport, is, by its scale and experience, a one-of-a-kind operation in Central America. It employs more than 3,000 employees and provides specialized services that require high precision on which the safety of dozens of commercial aircraft depends.

Agribusiness

El Salvador is an ideal platform for the production and export of processed foods, ornamental plants, and products from the aquaculture and fruit-growing sectors.

For example, the sugar industry generates more than 50,000 direct jobs in the country and contributes significantly to the growth of El Salvador’s economy.  Internationally, the sugar trade has been one of the industries that have most benefited from the various free trade agreements that El Salvador has entered into.

Light Manufacturing

El Salvador offers an attractive export platform with geographical proximity, high productivity, and competitive costs for companies in the light manufacturing sector.  It provides investment opportunities in El Salvador for businesses that produce medical devices, footwear, auto parts, and electronic components, which want to establish operations in the country and export to large markets.

Light manufacturing investment opportunities in El Salvador include those dedicated to the production of consumer goods. It is characterized by not requiring intensive use of capital, labor, or inputs.  Examples of light industry in the country include food and beverage production, textiles, pharmaceuticals, cosmetics, electronics, among others.

Logistics

Due to its strategic geographical location, El Salvador has begun the process of establishing itself as a major regional logistics hub.  It offers investors significant opportunities based on its open economy, maritime connectivity, attractive tax incentive system, as well as excellent air and land access.

The Central American Group’s logistic partner, Loginter, operates from El Salvador and offers extensive experience operating in international markets to its national and international customers.  The company is an expert in the administration of the entire supply chain of products and services.

Loginter is a tested and reliable strategic partner in the development of logistics solutions that are designed according to each company’s individual needs and in the systematic coordination of companies’ complete supply networks.

Renewable Energy

According to the Office of the President of El Salvador, more than 60% of the energy generated in the country comes from clean and renewable sources.

In 2017, a photovoltaic plant located in the municipality of El Rosario (La Paz), with a capacity of 101 MW, began operations, and other plants that will be completed in 2021 will add 624.2 MW to the country’s installed capacity. 

Moreover, photovoltaic projects that were recently brought online in Cuscatlán and Cabañas have increased power generation capacity by 8.5 MW.  Finally, the photovoltaic project of Bosphorus (Guazapa) with a capacity of 10 MW and the Capella Solar (Usulután) project will total 100 MW, as well as the 50 MW Ventus (Metapán) wind project, was scheduled to be completed in 2020.