Chilean tech exporters eyeing Colombia, Central America

Investment agency ProChile expects US$23.4mn in trade with Colombia and Central America in the next 12 months, as technology gains in importance.

While food and wood are still the main items, “Costa Rica has a fairly advanced technological system and in the case of Chile we have been working on establishing strategic alliances with Chilean companies, especially to address third markets such as the US,” ProChile Costa Rica director Marianela Montero told BNamericas on the sidelines of the agency’s Encuentro de Negocios Latam event.

A key focus for Colombia are fintechs. “Some companies are using Colombia as the hub to reach the European market,” ProChile Colombia head Marcela Aravena said. She added that especially small and medium-sized technology companies started to move in the last three years.

According to ProChile, the services sector recorded exports of US$1.28bn in the first eight months of the year. ICT services grew 72% annually to US$361mn and 169% to US$74mn in August.

In Costa Rica, cybersecurity is the main focus. “Last year Costa Rica received strong cyberattacks on public institutions, and they have not yet managed to recover. We know that Chile is developing very innovative technological solutions,” Montero highlighted. “We are also working with companies that adapt to offer cybersecurity solutions to smaller companies.”

MINING & INFRASTRUCTURE

During January and August, exports of non-copper and non-lithium goods grew 0.8% to US$29bn, according to ProChile.

“Currently, when mining is being reactivated in Guatemala, what is sought is the Chilean experience and the technologies that have helped it carry out this mission,” ProChile Guatemala director Diego Lechuga told BNamericas.

In Panama, ProChile is aiming to promote mining suppliers. Mining exports to Panama from Chile reached US$12mn in 2022, up 112% compared to 2017.

In Costa Rica, steel, copper and iron manufacturing has grown amid a construction boom. “Costa Rica has been lagging for many years in terms of infrastructure but has been reactivating it in recent years and has contributed to greater exports of these raw materials,” said Montero. Chile is also exporting wood products to the country.

“The economic growth that has occurred in Central America practically forces companies to look for new suppliers,” said Lechuga.

Carlos Rivas, from ProChile Panamá, said a wave of copper-based byproducts in nanotechnology for the design of disinfectant fabrics and paints hit during the pandemic. Rivas said multiple developments in disinfection and nanotechnology using copper byproducts are continuing.

In Guatemala, El Salvador and Honduras, demand is centered on more traditional products for industry and construction.

Javiera Gracia and Elinor Trebilcock contributed reporting.