Paraguay seeks investments in bid to become logistics hub

Paraguay is courting investors for infrastructure projects, mainly highways, that will help the country become a logistics hub for South America.

"In the last years we worked to diversify our economy and we're prepared, also in geographic terms, to be a logistic hub for the region," Lea Giménez Duarte (pictured), Paraguay's finance minister, told BNamericas on the sidelines of the Brasil Investment Forum in São Paulo.

Paraguay's economy has attracted investments from Brazilian companies that have set up factories in the country in recent years, yet that same economy is sufficiently diversified to have withstood the effects of its neighbor's 2015-16 recession, as well as Argentina's recent currency turmoil, she said.

"We are a young country, with 70% of our population below 40 years old. We need to use this in our favor," said Duarte. "In terms of roads, investments to improve this will reduce costs for companies operating here. We want to attract investments from the private sector."

Earlier this week, Paraguayan President Horacio Cartes announced he was stepping down to assume a seat in the senate on July 1.

Paraguay's business-friendly Colorado party will maintain its hold on power for another five years after ruling party candidate Mario Abdo Benítez was voted into office in April. He will be sworn in as president in August.

Duarte said the Abdo administration will continue with the market friendly policies while also advancing social policies.