Promising Sectors For Businesses In Paraguay

Published on September 30, 2025 and written by Cyril Jarnias

Paraguay, a landlocked country in the heart of South America, offers numerous opportunities for visionary entrepreneurs. Despite certain challenges, the Paraguayan economy holds considerable potential in several promising sectors. Let’s explore the most promising areas for developing a business in Paraguay, as well as the available financing options to bring your projects to life.

High-Potential Sectors of Excellence

Paraguay has experienced sustained economic growth for several years, driven by key sectors offering excellent prospects for entrepreneurs:

Agribusiness, the Pillar of the Economy

Agriculture and livestock form the foundation of the Paraguayan economy, representing nearly 25% of GDP. The country is a major player in the production and export of soybeans, beef, corn, and wheat. Opportunities exist particularly in:

• Agri-food processing
• Precision agriculture and agricultural technologies
• Organic and sustainable food production
• Export of high-value-added agricultural products

Renewable Energy on the Rise

Paraguay has enormous potential in clean energy, particularly thanks to its hydroelectric resources. The government encourages investments in:

• Solar and wind energy
• Biomass and biofuels
• Energy efficiency and smart grids

The Developing Manufacturing Sector

The Paraguayan manufacturing industry is gradually diversifying, offering opportunities in:

• Textile industry and clothing
• Automotive parts production
• Chemical and plastic product manufacturing
• Wood and furniture industry

Services and New Technologies

The Paraguayan tertiary sector is experiencing rapid growth, particularly in:

• Financial services and insurance
• E-commerce and logistics
• Information technology and cybersecurity
• Sustainable tourism and ecotourism

Financing Your Project: Keys to Success

To bring your business project to life in Paraguay, several financing options are available to you:

Traditional Bank Loans

Major Paraguayan banks offer business loans at competitive rates. Among the most important institutions are:

• Banco Nacional de Fomento (BNF)
• Banco Continental
• Banco Itaú Paraguay

Government Support Programs

The Paraguayan government has implemented several initiatives to encourage entrepreneurship and innovation:

• The National Public Investment and Development Fund (FONACIDE)
• The National Support Program for Micro, Small, and Medium Enterprises (PROPYMES)
• The Development Finance Agency (AFD)

Venture Capital and Business Angels

The venture capital market in Paraguay is still emerging but growing rapidly. Some key players include:

• KOGA Impact Lab
• Seedstars Paraguay
• Paraguay Startups

International Funding

Several international institutions offer funding for projects in Paraguay:

• The Inter-American Development Bank (IDB)
• The International Finance Corporation (IFC) of the World Bank Group
• The Multilateral Investment Fund (MIF)

Succeeding in Paraguay: Practical Tips

To maximize your chances of success in Paraguay, here are some essential recommendations:

Understand the Local Business Culture

Proficiency in Spanish and Guarani (official language) is a major asset. Personal relationships play a crucial role in business in Paraguay.

Surround Yourself with Local Experts

Engage Paraguayan lawyers, accountants, and consultants to guide you through administrative and legal procedures.

Leverage Tax Benefits

Research the different tax incentive regimes, particularly the Maquila law and Law 60/90 on investments.

Develop a Strong Network

Participate in professional events and join chambers of commerce to expand your business network.

Paraguay offers fertile ground for bold entrepreneurs. With a growing economy, promising sectors, and an increasingly favorable business environment, the country presents numerous advantages for developing a prosperous business. By leveraging the available local and international resources, you can bring your project to life and contribute to the economic dynamism of this promising country.