El Salvador Secures $75 Million for Trade Facilitation and Investment Enhancement.

The Legislative Assembly Approves $75 Million for Trade Facilitation and Investments The Legislative Assembly has approved new funds from the Development Bank of Latin America (CAF) aimed at enhancing the country’s business climate and modernizing various customs service centers.

The newly granted funds by the Development Bank of Latin America (CAF), totaling up to $75 million, and approved by the Legislative Assembly, will enable the government to continue creating an attractive business environment for the private sector, facilitating trade, expanding investments, and generating employment in El Salvador.

The funds will be allocated for the implementation of the “Business Climate Transformation Program of El Salvador through Trade Facilitation and Investments.”

“Thanks to the trust that international organizations have in El Salvador, we will continue our work to modernize our customs and digitize the services we provide to our population and businesses,” said Minister of Economy, María Luisa Hayem.

Recently, Marlon Herrera, the Director of Investment and Public Credit at the Ministry of Finance, explained that the government intends to achieve various objectives through the funds, including simplifying and digitizing procedures, modernizing customs service centers, and promoting and attracting investments.

Herrera pointed out that the funds will be distributed among four main components, including the implementation of Smart Customs, which involves improving the infrastructure of various customs posts in the country, as well as acquiring and updating intelligent systems in preparation for future integration into a customs union scheme.

The government stated that these resources are expected to be utilized for the intervention of customs centers in La Hachadura, Las Chinamas, San Cristóbal, and the customs post of San Bartolo. Furthermore, it will help reduce logistics and transportation costs and time, facilitating trade via land routes to other Central American countries.

Additionally, through this program, the government aims to simplify and digitize procedures in public institutions, reducing bureaucracy and improving services provided to the population and businesses. In total, 18 public institutions will benefit from these measures.

According to a statement from the Legislative Assembly, the loan will also be invested in the development of new technological tools and the strengthening of the Investment Promotion Office (Invest). The resources will also support the development of the “El Salvador Emplea” platform, which aims to connect job supply and demand in El Salvador.

This operation marks the fourth financing initiative that the government has pursued with the CAF since March 2022, as a result of strategic decisions made by President Nayib Bukele.