Exporting to Paraguay
Paraguay’s import market has grown every year from 2014 to 2018 (IMF, 2019). Apart from a dip in 2019, this growth is projected to continue until at least 2024 (IMF, 2019). UK businesses looking to export to Paraguay may benefit from the increase in demand for UK goods and services.
UK government support
UK Export Finance (UKEF) has a £3 to £4 billion export credit facility to help UK businesses export to Paraguay. If you are a UK exporter looking for financial support to bring your products or services to Paraguay, this is a good opportunity.
Economic conditions are improving in Paraguay. Unemployment levels have held at just under 6% over the past decade (World Bank, 2020). A strong rebound in GDP is projected for 2021 as well as economic growth for the next 5 years (IMF, 2019), which should equate to an increase in spending power for local consumers.
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Paraguay have identified opportunities for UK businesses in the following sectors:
Reforestation for biomass
With a need for adequate territorial planning in addition to technology incorporation, the forestry sector in Paraguay could benefit from UK expertise. Areas such as forestry plantation design and wood processing services are particularly valuable.
High scale farming technology
UK technology and know-how are sought after by farmers who want to monitor their animals' health and progress more efficiently.
Reduction of food waste
Most of Paraguay’s exports to the UK consist of residues from the food industry. UK technology that could add value to this supply chain may have an opportunity here.
Food and drink
Demand for international products
In the last few years, many international food and drink brands and restaurants have either opened in or started selling in Paraguay. This shows there is an appreciation towards foods from other countries by local consumers.
Paraguay could be a logistics hub for distribution of food and drink products in the region to other countries with large populations (as part of the Mercosur trade bloc), offering a strategic geographic location and well developed fluvial logistics system.
The main form of public transport in Paraguay is buses. With the growing population and urbanisation in the rural areas, alternatives could be presented such as trains and bus rapid transit systems. There are also opportunities for British project developers in road building and bridge construction.
UK companies that offer solutions in this sector can find opportunities in Paraguay. The government-provided service of water supply is keen to develop and access to drinking water can be limited for many residents.
In recent years, there has been an increase in the construction of housing projects by the government as well as privately owned developments such as apartment buildings, shopping centres and condominiums. Paraguay’s main cities continue to expand, and British providers can play a key role in this.