World Bank Unveils New Development Strategy for Paraguay

The new framework builds on more than 75 years of cooperation between the World Bank Group and Paraguay and aligns with the country's National Development Plan.

The World Bank Group has approved a new Country Partnership Framework (CPF) for Paraguay, setting out its development priorities for 2027 to 2034 with a strong focus on boosting private investment, creating better jobs and strengthening the country's long-term economic resilience.

Under the new strategy, the World Bank Group plans to mobilise at least US$2 billion during the first phase of the programme through a coordinated effort involving the International Bank for Reconstruction and Development (IBRD), the International Finance Corporation (IFC) and the Multilateral Investment Guarantee Agency (MIGA).

Long-term partnership enters a new phase

The new framework builds on more than 75 years of cooperation between the World Bank Group and Paraguay and aligns with the country's National Development Plan.

World Bank Division Director for Argentina, Paraguay and Uruguay, Peter Siegenthaler, said the partnership is entering a new stage that focuses on supporting sustained economic growth led by the private sector while creating quality employment and strengthening resilience.

The strategy combines financing, technical expertise, advisory services and investment guarantees to support reforms that encourage sustainable economic development and improve opportunities for people across the country.

Investing in stronger foundations

The framework's two main priorities is strengthening the foundations for resilient economic growth. The World Bank Group will support improvements in transport connectivity, logistics, energy infrastructure and climate resilience, while also investing in healthcare and education to help develop a workforce with skills that better match labour market demands.

Officials believe these investments will improve productivity, strengthen public services and help Paraguay respond more effectively to future economic and environmental challenges.

Encouraging private investment and business growth

The second priority focuses on expanding private sector activity by improving the business environment and increasing access to finance, particularly for micro, small and medium-sized enterprises (MSMEs) and women-led businesses.

The World Bank Group also plans to help attract private investment into sectors with strong growth potential, including agribusiness, forestry, renewable energy and manufacturing.

IFC Division Director for Brazil, Argentina, Uruguay and Paraguay, Manuel Reyes Retana, said private investment will play a central role in Paraguay's next phase of development. By combining the strengths of IBRD, IFC and MIGA, the World Bank Group expects to mobilise more capital, expand business opportunities and support industries capable of generating productive, high-quality jobs.

Supporting sustainable economic growth

The new Country Partnership Framework provides a roadmap for reforms and investments designed to convert Paraguay's economic strengths into broader and more inclusive development.

By promoting stronger infrastructure, expanding opportunities for businesses and improving access to education and healthcare, the World Bank Group hopes to support lasting economic growth that benefits communities across the country.