Page 46 - TCL International VILLETA BUSINESS PLAN AND FEASABILITY STUDY

15. Conclusion

The name “Paraguay” is immediately “connected” with protein producers.
Rivers, streams, rain, a benevolent climate as well as rich soils, are the right
combinations for farming and ranching.

The country was one of the least developed nations in the continent until the
end of the 20 century. However, by the end of the century, due to an explosion
th
of the world population, the country’s time had come. From 3 billion in 1960,
world population reached 7.4 billion in 2016, a 4.4 billion increase in just 55
years. It is estimated to grow to 8 billion in 2020. At present, Paraguay is one of
the fastest growing economies in the world.

At present, the country is well positioned, it produces what the world demands,
agricultural products and red meat. Production of those commodities have
increased continuously. The country has plenty of good land and the conditions
to continue to grow for a long time to come.

Expansion in agriculture, cattle and their related industries also demands an
increased amount of high value imports such as fuel, trucks, cars, equipment,
machinery, chemicals, fertilizers, electronics and appliances. The mentioned
products and goods equally demand an increase in logistics and transportation
related services.

The country’s GDP had increased by a healthy 4.8% during the past 12 years. It
is forecasted to increase by 3.8% in 2017 and beyond. Total imports and exports
also follow the same growth. This will result in increased activities in the
country’s ports and container terminals. The present infrastructure is not
enough to handle the expected imports and exports.

In addition, the country’s government is stable, taxes are low and the business
environment is open and free. Also, its population is young and highly educated.
The people are helpful and friendly. Per Gallup Poll, in the last four consecutive
years, Paraguayans have been said to be the happiest people in the world.

Risk assessment

In order to include the risk associated with any investment in a country, we also
looked at the risk associated with Paraguay in The Economist, the World Bank,
Coface and the IMF. Although we typed “risk,” yet those reports still provided
positive view about that country. The weakness of the country is shown to be
the following:

- The infrastructure development does not accompany the country rapid
growth.
- The agricultural sector is weather dependent.
- The agricultural sector of the economy is dependent of international
commodities price fluctuations.
- Inefficiency of the public sector.
- Income inequality.

In reference to the above, an explanation is needed:

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