Taipei: Visiting Paraguayan President Santiago Pe±a on Thursday called for greater investment from Taiwan's private sector in his country, saying the South American ally's stable political environment and strong economic performance make it an ideal destination for private investment and a gateway to the Latin American market. "Paraguay is not only a diplomatic ally of Taiwan, [but] it is also a very strong economic partner," Pe±a told CNA in an interview shortly after arriving in Taipei for a four-day state visit.

According to Focus Taiwan, Paraguay -- Taiwan's sole diplomatic ally in South America -- is "outperforming all the other countries in Latin America," making it an attractive investment destination for Taiwanese companies seeking to operate in the country or use it as a base to expand into the broader Latin American market. "My objective is to convince the Taiwanese business community that Paraguay is a great place to do business, and that has absolutely nothing to do with diplomatic relations," the president said.

According to the International Monetary Fund, Paraguay's gross domestic product is projected to grow by around 4.2 percent in 2026. In 2024, Moody's Ratings upgraded Paraguay's long-term issuer rating from Ba1 to Baa3, officially granting the country investment-grade status. "There is no better place for doing business in Latin America than Paraguay," Pe±a added.

The Paraguayan president also expressed hope for closer cooperation with Taiwan in high-tech industries and artificial intelligence. The development and operation of AI require massive and rapidly increasing amounts of electricity, and Paraguay is a world leader in hydroelectric power generation, Pe±a said. Meanwhile, Taiwan is a global leader in producing some of the world's most advanced chips. "If we can combine the technology and the knowledge and the capacity of Taiwan with the availability of energy, you can create something that is unique in the world," he said, adding "I think it's a perfect match."

Pe±a arrived in Taiwan on Thursday morning for his first official state visit to the country and his fourth trip overall. Paraguay is the last remaining country in South America and one of 12 countries worldwide to maintain diplomatic relations with Taiwan, officially named the Republic of China.

Also visiting Taiwan is a delegation of more than 40 Paraguayan business representatives led by Paraguayan Industry and Commerce Minister Marco Riquelme. According to Taiwan's Ministry of Foreign Affairs (MOFA), the delegation includes representatives from three major sectors: food processing, technology and energy, and financial investment. MOFA said the government has arranged for the delegation to visit Taiwanese companies with potential for cooperation, in order to explore business opportunities and strengthen the Taiwan-Paraguay supply chain.