The auction of 40 MHz of mobile spectrum has launched a discussion on whether to add new operators to the market in order to avoid dominant players.
According to Giovanni Berti, CEO of Proesa, companies have already begun to enter the contest. "The information I have is that in addition to the phone companies that are already established in the country, to date an international company whose name I'm not allowed to reveal yet has expressed interest," he said.
On November 8 a seminar will be held in El Salvador to analyze the opportunities brought by CAFTA and the AA to the sector.
The event will be held at Hotel Hilton Princess, from 8:00 a.m. to 11:00 a.m.
There will be two conferences, the first entitled "Building on CAFTA-DR" by Rene Salazar, director of Trade Agreement Administration (DATCO).
The second conference entitled "Government Procurement: Opportunities for Salvadoran exports" will be directed by Eliel Hasson, former Chilean negotiator of trade agreements with the United States and Europe.
The objective is to promote, expand and diversify economic, trade, investment and tourism links between the two nations.
From a press release by the Ministry of Foreign Affairs in El Salvador:
The Foreign Minister, Jaime Miranda Flamenco, officially opened on October 31 a Commercial Office in El Salvador Sao Paulo, Brazil, in order to promote, expand and diversify economic, trade, investment and tourism links between this nation and the South American country.
NanYang Footwear is to invest $3 million in the country to produce footwear and export it to other markets.
From a press release from the Presidency of El Salvador:
The Taiwanese company engaged in the manufacture of footwear NanYang Footwear, in a clear commitment to El Salvador, started operations in the country by establishing and expand its subsidiary in the country under the name of ADI FOOTWEAR SA de CV, with an initial investment of $1.5 million, plus plans to invest an additional $1.5 million and carry out an expansion which will generate more than 1,000 new jobs over the next year.
On 7th and 8th of November 150 participants from the U.S. and Latin America will gather together during the first Central American summit on outsourcing services to be held in Nicaragua.
From information published by ProNicaragua:
ProNicaragua, the official investment and export promoter of the Government of Nicaragua, will be organizing the first Central American summit on outsourcing services entitled 'Central American Nearshore Summit 2013, which will bring together 150 participants from the U.S. and Latin America in this sector.
FUSADES is asking the Salvadoran Congress to make reforms to the Special Act on Public-Private Partnerships in order to ensure its effectiveness.
The Salvadoran Foundation for Economic and Social Development (FUSADES) is refering to the reforms that have been put forward by the ARENA party which among other things suggest that the Agency for Promotion of Exports and Investments of El Salvador (PROESA) be in charge of monitoring the administration of the law. The recently passed legislation "includes a new administrative institution: the Directorate of Public-Private Partnerships", reported Laprensagrafica.com.
Businessmen want to expedite the process of approval by the Legislature, in which Proesa is the governing body, and which may include water and sanitation projects.
Members of the Council for Growth are seeking Congressional support in order to make three amendments to the Special Act on Public-Private Partnerships.
Carlos Guerrero, private sector representative on the Board and president of the Salvadoran Chamber of Construction (Casalco) explained that the reforms revolve around three themes. "One is to expedite the approval process of a partnership in the legislature. Currently, a project has to gain approval of the Assembly many times," noted an article in Elmundo.com.sv.
The training will support producers of food and beverages so that they can comply with the Food and Drug Administration's Modernization Act for Food Safety.
From a press release by the Ministry of Economy of El Salvador:
The National Quality Council, through the Salvadoran Agency for Standardization (OSN), the Agency for Promotion of Exports and Investments of El Salvador (PROESA) and the Corporation of Exporters of El Salvador (COEXPORT) are promoting the program "EXPORT QUALITY" inaugurated by the President of the National Quality Council and Minister of Economy, Armando Flores, on July 24, 2013. This program aims to strengthen companies who produce food and drink so that they are able to comply with the Modernization Act for Safety Food, of the Food and Drug Administration (FDA).
Some of the main businesses from El Salvador will be advocating for the realization of Fomilenio II and for a deepening of the Association for Growth pact signed between the two countries two years ago.
From a press release by the Presidency of El Salvador:
A delegation from the National Council for Growth will make an official visit to Washington DC from 24 to 26 June, where meetings will be held with senior government officials and the Congress of the United States, under the framework of the first 18 months of the Partnership for Growth.
Lack of policies for attracting investment and the climate of insecurity both legally and for citizens is scaring away local and foreign investors.
In terms of Foreign Direct Investment (FDI), this barely grew, by $22 million, during 2012, closing with $463 million while the previous year it had been $441 million.
"A recent report by the Economic Commission for Latin America and the Caribbean (ECLAC) specifies that the balance of private foreign investment at the end of last year was $516 million, while in 2011 was only $385," reported Elsalvador.com. Although it was $130 million (34%) more than the amount of investment in the previous year, El Salvador was placed, for the fourth consecutive year, among the countries with the lowest FDI inflows in Central America.
There are companies interested in investing in this industry but they need clear rules before making the decision to go to El Salvador.
"Here, what the government needs to do is move with agility in order to outpace other countries who are going the same route, they have to be more aggressive in putting together a proposal for all the players involved, which is what Mexico did and it is still attracting investments," said Ernesto Ruiz, CEO of Aeroman.
Sensity Systems, an innovator in intelligent lighting systems, has announced a $490 million investment for the assembly of its products in that country, without disclosing the funding sources.
In the statement by the Agency for the Promotion of Exports and Investments of El Salvador (PROESA) no reference was made to funding sources. Nor is there much public information about Sensity Systems (except in their own press releases).
In 2012 $1.3 billion was registered in sales of services in the country, mainly from maquilas and call centers.
According to the executive director of the Agency for the Promotion of Exports and Investments of El Salvador (Proesa), Giovanni Berti, despite the contribution to trade this is a sector that is not given much attention. Services, inside of the export category, are a very dynamic item, said Berti.
Targeting the markets of Guatemala, Honduras and Nicaragua, the Export Promotion Agency of El Salvador has relaunched the program in support of SMEs.
From a press release published by the Agency for the Promotion of Exports and Investments of El Salvador (PROESA):
Under the Export Promotion Strategy, the Government of El Salvador launched on Tuesday April 16 the third edition of the Step by Step Export Program, a coordinated effort between the Agency for Promotion of Exports and Investments of El Salvador (PROESA) and the Ministry of Economy (MINEC), which has the support of the Technical Secretariat of the Presidency (STP), the U.S. Agency for International Development (USAID), through USAID's development program for SMEs, and the Special Fund of Resources from the Proceeds of the Privatization of ANTEL (FANTEL). It is expected that one hundred Salvadoran firms will initially be assisted as exporters and that there will be negotiations totalling over $5 million.
Salvadoran businessmen have pointed out that the agreement which intended to stimulate the economy and overcome obstacles to growth, has not provide great results.
Although it is more than a year since implementation of the agreement, the private sector finds it necessary to involve private enterprise more in order for the government to generate better policies to attract investment.
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