A series of incentives designed to encourage companies to move their production to Paraguay is having the desired effect on foreign and domestic investors, in turn boosting the country’s economy.
Under the country’s previous administration, foreign direct investment (FDI) fell by 60%. The new government’s policies have built up confidence and turned the situation around. In just three years, the country has increased FDI levels by 25% to hit 1.5 billion dollars, according to BCP. Indeed, investors have every reason to be upbeat: CEPAL states that the average return on investment in Paraguay in recent years has been 22%, with even higher returns seen in sectors such as finance and real estate. The country has reformed its income tax system and introduced a programme of public-private partnerships to promote FDI.
Rt Hon Lord Paul Boateng is a leading figure on Africa’s development and a member of the UK House of Lords. Here he talks with Leading Edge about trade and investment opportunities available ON the continent…
"We believe that certain sectors should be targeted, chiefly from the consumer perspective. This country needs jobs, as almost 60% of Sierra Leonean young people are unemployed. This is something that Chinese companies have, attimes, complained about in the past — but my advice to them has always been to speak to the government, as it is very open to this kind of dialogue from its local and foreign partners..."
"Paraguay has a nice history to tell. Paraguay's economy is projected to grow 3.5% in 2016, which could be revised upwards taking into consideration recent developments in short-term indicators...