Paraguay, a vibrant member of Mercosur, is racing towards digital transformation, offering a promising landscape for international investors. As the country embraces the digital era, the Information and Communication Technology (ICT) sector, telecommunications, and tech startups are experiencing exponential growth, positioning Paraguay as a key player in the region's digital economy.
The government's commitment to digital transformation is evident in its 'Paraguay 2023' plan. The strategic initiative focuses on fostering a digital culture, improving access to technology, and promoting digital skills and literacy. Investment in infrastructure, cybersecurity, and data privacy are also high on the agenda, aiming to create a robust foundation for digital growth.
Telecommunications are a significant part of this digital revolution. According to the International Telecommunication Union, Paraguay's mobile-broadband penetration has reached 80%, a sharp rise from a mere 20% a decade ago. Key players such as Tigo, Personal, and Claro are continually expanding coverage and improving service quality, contributing to increased internet accessibility across the nation.
Simultaneously, the tech startup scene is burgeoning. Paraguayan startups are gaining international recognition, with companies like Kuapay, a mobile payment platform, and Koga, a venture capital firm focusing on sustainable startups, drawing significant attention. The presence of accelerators like Loffice and business incubators such as Fundación Paraguaya are further fuelling this growth.
However, despite notable progress, challenges remain. Limited tech talent pool, regulatory hurdles, and the need for further investment in ICT infrastructure are areas that need to be addressed. Paraguay's digital journey is still in its nascent stages, yet the potential for growth is evident. For international investors eyeing the Mercosur region, Paraguay's burgeoning digital landscape offers an exciting, albeit challenging, business opportunity.