Peña touts investment gains, omits legal and bureaucracy woes

President Santiago Peña presented his third management report to Paraguay's National Congress, emphasizing advancements in attracting private sector investment and major industries. He highlighted over $622 million in approved projects expected to generate 4,200 jobs, and noted substantial investments from both local and foreign investors eager to leverage incentive regimes.

Among the key investments mentioned were Paracel ($5 billion), Grupo Costa ($300 million), JBS ($135 million), and Cartones Yaguareté ($120 million). Peña also included COMEPAR ($25 million), a company linked to Miguel Cardona, a central supplier for the "Hambre Cero" (Zero Hunger) program. Cardona's company secured a significant agreement worth approximately $200 million, raising questions due to his frequent visits to the presidential residence.

Notably absent from Peña's address were the ongoing concerns regarding state-imposed hurdles for basic procedures and the persistent issue of legal insecurity, which business leaders identify as major deterrents to investment. At a recent business forum, Spanish businesswoman Marta Vara of 5 Flags Capital directly questioned the Minister of Economy, Óscar Lovera, about the difficulties investors face, particularly in opening bank accounts for their companies. "When the investor arrives, they have two great enemies: The Central Bank of Paraguay and Seprelad," Vara stated, detailing lengthy and complex processes for international money transfers, even for traceable funds.

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When the investor arrives, they have two great enemies: The Central Bank of Paraguay and Seprelad. We are creating companies and they are giving us a lot of problems to open accounts, to make international money transfers, even with traceability it is difficult because the deadlines are very long.