The Central American country has set up data centers, startup incubators and corporate operation centers to expand its development as a digital hub, Trade Minister Ramon Martinez said. The government is offering foreign high-tech companies favorable conditions and a range of incentives to establish operations in the country
Panama's cyber sector plays a key role in the country's emergence as a digital hub of Latin America, the country's trade minister says.
Ramon Martinez, minister of trade and industry, described the sector's development in a speech on January 29 at the Cybertech Global 2020 conference.
"Panama is the center of digital innovation in the Americas, attracting companies specialized in technology and innovation," he said.
"We realize that to be a digital hub, you need several components, and we have worked on components that are already in place in Panama."
According to the minister, the country has data centers that specialize in the recollection and storage of information; startup incubators that attract and develop entrepreneurship initiatives as well as draw the venture capital industry; and corporate operation centers that serve as headquarters for reaching out to Latin America. Panama is also establishing labs that will conduct research and education on technology, he added.
Martinez said the Central American country has a number of characteristics that differentiate it from other digital hubs.
It is strategically located at the center of North and South America, and between the Atlantic Ocean and the Pacific Ocean, with ports on both coasts. The capital, Panama City, is a regional air hub with direct flights to 89 destinations, and connections to all the important cities in Latin America in less than seven hours, according to the minister.
In addition, Panama has a highly developed internet infrastructure. "Seven of the most important fiberoptic cables cross through Panama, and now there is a new one that Google is building and connecting to Panama, so we will have eight, making us the most connected country of Latin America," the minister said. He added that the country is working on an internet exchange point that will save costs and time for companies.
The minister pointed out that Panama recently enacted a data protection law that promises that the data of companies that establish operations in the country will not be owned or used by the government. "And we have seen how important that is in recent years that companies should have that right to keep that information."
He stated that the country has worked on special regimes that will allow companies to operate in the digital economy with very good income tax incentives, as well as labor and immigration benefits offering the possibility for employees and executives to relocate to Panama in a very easy way.
He said the country's new government believes in the digital economy and will push for the sector to be one of the most important, and will not only invite foreign companies to come to Panama and but also facilitate their operations.
Martinez said that the country's neutrality treaty regarding the Panama Canal, the strategic waterway that allows boats to transit between the Atlantic and the Pacific, guarantees peace in the area.
Panama is also attractive in terms of its climate and geological conditions, the minister said. "We have very low seismic activity and no hurricanes, and we know how important that is for companies to establish their data centers."
In closing, the minister invited the conference attendees to the Cybertech Latin America 2020 conference that will be held in Panama City on April 22-23.
