Paraguay has the aim to launch a new phase of industrial transformation. This industrial development is in order to strengthen its competitiveness in the global economy. Authorities say the strategy will focus on technology, workforce training and the creation of new productive zones throughout the country.
According to Marco Riquelme, Paraguay´s Minister of Industry and Commerce (MIC), the country must begin what he describes as a new industrial revolution. This revolution will be driven by local capabilities and modern production systems. The objective is to transform the economic structure while creating new employment opportunities and generating greater national wealth.
Technology and training at the centre of industrial transformation
Riquelme explained that his vision for strengthening Paraguay´s industrial sector began during his earlier work in public service. During his time as vice-minister he began developing policies focused on the industrial transformation of the country. These policies had productivity and economic expansion goals.
A central pillar of the strategy is increased investment in technology and workforce training. According to the minister, these elements are essential if Paraguay intends an industrial transformation capable to compete in increasingly demanding international markets.
Riquelme mentioned that without technology there is no productivity. He believes that investing in advanced machinery will allow to reduce production costs and therefore, compete both in the domestic and international market. Not only him, but authorities also believe that modernising industrial processes will enable Paraguayan companies to expand their production capacity. While improving efficiency and export potential.
A four-layer strategy for industrial zoning
The government is developing a territorial strategy aimed at the industrial transformation mentioned by Riquelme. By organising industrial growth across different regions of the country. This proposal divides Paraguay´s industrial development into four strategic layers.
The first layer focuses on the creation of logistics corridors developed in coordination wit the Ministry of Public Works and Communications (MOPC). These corridors are intended to strengthen transport infrastructure and improve connections between production centres and export routes.
The second layer includes municipalities located near those logistics’ corridors. These areas will receive support to develop industrial activities and attract new investments. A third layer involves the creation of industrial clusters. These clusters will group companies and productive activities within specific regions. This will allow each area to specialise in particular industries and strengthen the cooperation between businesses.
The fourth layer focuses on the development of training, certification and research institutes. These institutions will aim to provide skilled labour capable of supporting the country´s industrial transformation. Alongside these measures, the government is preparing a new legal framework for industrial parks. According to the minister, the planned legislation is intended to modernise regulations and facilitate the installation of new companies in Paraguay.
Municipal governments and private sector involvement
Local governments are expected to play a significant role in the industrial transformation of the country. Riquelme noted that municipal authorities will need to actively promote investment opportunities within their territories. MIC is also working closely with the private sector through the creation of a business council. This council will participate in defining the country´s industrial priorities.
The minister explained the governance of this council will be led by the private sector. This will help MIC identify the most important priorities for Paraguay´s industrial transformation.
Employment generation, a key of the industrial transformation
Job creation, particularly for young people, remains one the central objectives of the industrialisation transformation. Riquelme said that Paraguay must become a machine for generation employment. The minister also linked the strategy to the broader economic vision promoted by president Santiago Peña.
The president has described the country´s development prospects as the “awakening of a giant”. According to Riquelme, industrial transformation will be a key driver in expanding opportunities for Paraguayan citizens.
Support for small and medium-sized enterprises
The minister also highlighted the role of micro, small and medium-sized enterprises in Paraguay´s industrial transformation. These businesses represent a significant portion of the country´s productive structure and employment generation. Authorities say the government intends to strengthen support mechanisms for these companies. Also, while addressing the structural problems affecting their growth.
One those issues is the prevalence of informal lending and usury. These issues often affect smaller business that lack access to formal credit. Riquelme mentioned that the government has started to fight directly against usury. He also said they will not rest until micro, small and medium-sized enterprises do not need to resort to informal lenders.
According to the government, improving financial access for these companies will be essential to ensure they can expand and invest in new technologies. This is in order so they can contribute to Paraguay´s broader industrial transformation.
