El Salvador’s Tech Industry Flourishes with 14.4% Export Growth.

El Salvador continues to position itself in the technology sector in international markets. According to the latest foreign trade report published by the Central Reserve Bank (BCR) in April, exports of information and communication technology (ICT) goods to foreign countries recorded a year-on-year growth of 14.41%, increasing from $8.31 million in 2022 to $9.51 million this year.

The report also highlights a 5.58% increase in the volume of exports of these types of products.

Within this sector, computers and peripheral equipment stand out with a 97.1% increase in sales compared to the same period in 2022. They are followed by communication equipment with a 21.92% increase in sales, consumer electronic equipment with a growth of 37.26%, electronic components with a 42.19% increase from the previous year, and miscellaneous items, which saw a 0.25% growth, according to the BCR’s classification.

According to Roland Despinoy, president of the Chamber of Information and Communication Technologies (Casatic), this progress could be attributed to an increase in international shipments by companies and the incorporation of new companies into the logistics chain. However, he pointed out that there are still few firms manufacturing and exporting these types of goods in the country.

Nevertheless, he emphasized that the export of technological services from the country has significantly strengthened in recent years.

“After the pandemic, the export of technological services is growing again, which is positive for the country. A few years ago, Salvadoran technology was not on the map for foreign companies. But the few companies that exported services positioned the country very well as a provider of efficient, quality, and cost-effective labor. This good reputation has been maintained, and now there is greater promotion of the country as a destination for technological investment,” he noted in an interview with this media outlet.

On the other hand, he highlighted the progress of the sector in the country with new regulations, such as the Law to Promote Innovation and Technological Manufacturing, promoted by the Bukele administration. This could also motivate more entrepreneurs to develop goods and take them to international markets.

“The new policies being implemented by the Presidency and entities such as the Ministry of Economy will be key to continue improving the capacities of our companies and attracting foreign investment that generates employment… An adequate legal framework with incentives for local entrepreneurs will always create opportunities to produce more and export to new destinations,” he added.

Exemplary Companies

K1, a Salvadoran company in the industry, has benefited from government initiatives related to technology and has started exporting bitcoin ATMs to countries in Europe and Latin America.

Edgar Borja, CEO of the company, explained to “Diario El Salvador” that they currently have three devices in Europe, four in the United States, and fifteen distributed among Mexico, Colombia, and Ecuador.

According to the entrepreneur, the devices designed by K1 have been well received in these nations due to their characteristics that allow for quick and secure bitcoin transactions.