Contact the Central American Group to invest in El Salvador by locating a manufacturing facility in one of our free zones.
Although El Salvador, as is the case with any developing country, faces challenges, the nation offers ample opportunities for individuals and companies seeking to invest in El Salvador. Eleven reasons to invest in the Central American nation are listed below:
1) Those who invest in El Salvador will learn that the country adopted the US currency as its legal tender in 2001. The benefits of El Salvador’s use of the greenback are the (1) convergence of domestic inflation with international inflation; (2) elimination of exchange risk, which reduces internal interest rates; (3) a better environment for investment. This is a consequence of stable inflation and lower interest rates.
2) El Salvador has a developed private financial system with a globalized, solid, and healthy banking system with more than US$10.7 billion in deposits. The country’s central bank regulates the banking system in El Salvador, the Banco Central de Reserva de El Salvador (BCR). The BCR supervises and regulates banks and other financial institutions to maintain stability in the financial system.
3) Private pension system which remains solid. It reports US$9.3 billion in savings and US$2.9 million in individual worker accounts. These funds demand greater profitability and search for investments in the country to grow.
4) Infrastructure, although it is true that the country still has work to do to be modernized and expanded to support an economic takeoff, those that choose to invest in El Salvador will find that it is equipped with ports, airports, a road network, electricity generation capacity, and telecommunications. It also has a supply of industrial parks that house manufacturing investments and free zones that give preferential tax treatment to companies that are located in them.
5) El Salvador has an international airport that connects travelers and freight to the most important cities in North America, South America, the Caribbean, and Europe in less than 24 hours. The international airport in El Salvador is the Monseñor Óscar Arnulfo Romero International Airport (SAL), also known as Comalapa International Airport, located in San Luis Talpa, about 44 km (27 mi) southeast of the capital city, San Salvador. This airport is the busiest in Central America and serves as a hub for several airlines, including Avianca, the national airline of El Salvador.
6) Free trade agreements allow access to the most extensive and closest markets to companies that invest in El Salvador. In addition, these accords offer better opportunities to export to the world from the country. Some of the most significant free trade agreements that El Salvador has signed include (1) the Dominican Republic-Central America Free Trade Agreement (CAFT-DR; (2) the Mexico-El Salvador Free Trade Agreement; (3) the Panama-El Salvador Free Trade Agreement; (4) the Colombia-El Salvador Free Trade Agreement; and (5) the Taiwan-El Salvador Free Trade Agreement.
7) Human capital, the Salvadoran has consistently been recognized for being diligent and eager for greater opportunities. The country’s workers display great versatility and work capacity. Several options have been put into place for training the Salvadoran workforce. These include (1) Technical and Vocational Training; (2) Apprenticeships; (3) Foreign language training; (4) Technology training; and (5) Soft Skills Training. Much of the training of the Salvadoran workforce is conducted through the National Institute of Professional Training (INSAFORP). INSAFORP was created in 1994 as part of the country’s efforts to improve its workforce’s competitiveness and enhance employment opportunities.
8) Entrepreneurial spirit among Salvadorans there is a great capacity to compete internationally and successfully manage the factors of production. Despite facing various challenges, such as limited access to finance, weak infrastructure, and a complex regulatory environment, entrepreneurs in El Salvador are known for their resilience and innovation. Many have developed creative solutions to overcome these challenges, such as using mobile technology to reach customers in remote areas, forming networks to share resources and expertise, and adopting new business models that leverage digital platforms.
9) Broad base of national and international companies with global experience, well-established, and access to investment resources. These firms are well prepared and willing to invest vigorously as long as the rule of law is respected and legal certainty for investments is maintained.
10) Friendly countries have faith in El Salvador, as they continue to offer support, share their knowledge and good practices, share the use of new technologies, and, of course, support with various financial cooperation programs. Those that invest in El Salvador will find that the country’s closest collaborators include the United States, Mexico, Guatemala, Honduras, China, and Taiwan
11) Civil society in El Salvador is increasingly becoming more conscious, organized, and demanding in defending democracy, freedom, and institutionality. Moreover, its current government is committed to the fight against corruption and the rule of law.
For more information needed to invest in El Salvador, contact the experts at the Central American Group.
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