Paraguay – the Silicon Valley of South America?

Jane ChambersBusiness reporter, Asunción, ParaguayGabriela CibilsGabriela Cibils needs to assist Paraguay appeal to large tech from the US and elsewhereGabriela Cibils is on a mission – to assist flip Paraguay into the Silicon Valley of South America.When she was rising up within the landlocked nation, nestled between Brazil and Argentina, she says the nation “wasn’t tremendous tech centered”.However it was completely different for Ms Cibils, as her dad and mom labored within the know-how sector. And she or he was impressed to check within the US, the place she bought a level in computing and neuroscience from the College of California, Berkeley.After graduating she spent eight years working in Silicon Valley, close to San Francisco, with roles at numerous American start-ups.However fairly than staying completely within the US, a number of years in the past she determined to return dwelling to Paraguay. She’s now serving to to steer efforts to construct a big and profitable tech sector that places the nation of seven million individuals on the world map – and appeal to among the globe’s tech giants.AFP by way of Getty ImagesThe big Itaipu Dam produces 90% of Paraguay’s electrical energy wants”I noticed first hand the influence that know-how can have in your life,” says Ms Cibils. “After being uncovered to such a special world [in Silicon Valley], it is my duty to deliver that mindset again and mix it with the expertise I see in Paraguay.”She is now a companion at international know-how and funding agency Cibersons, whose headquarters is in Paraguay’s capital Asunción.Whereas most nations would like to construct a world-class tech sector, Paraguay has a definite benefit in a single regard – an abundance of low-cost, inexperienced electrical energy.That is due to 100% of its technology now coming from hydroelectric energy.That is centred on the enormous Itaipu Dam on the Paraná River, which types a part of the border between Paraguay and Brazil. This large hydroelectric energy station, the most important on the planet exterior of China, provides 90% of Paraguay’s electrical energy wants, and 10% of Brazil’s.In reality, such is Paraguay’s surplus of electrical energy that its electrical energy costs are the bottom in South America.And it’s the world’s largest exporter of fresh vitality.The Paraguayan authorities hopes that the nation’s abundance of low-cost, inexperienced electrical energy will appeal to international tech companies more and more centered on the huge vitality calls for of AI computing.”If you wish to set up any know-how funding like AI information centres, take note hydroelectric energy is each renewable and regular,” says Paraguayan software program growth entrepreneur Sebastian Ortiz-Chamorro.”In comparison with different renewable vitality sources like wind or photo voltaic, which have their ups and downs, it is far more engaging for creating information centres or some other electro intensive exercise that requires a gradual electrical energy supply.”He provides that along with Itaipu, and Paraguay’s different giant state-owned hydroelectric plant, the Yacyretá Dam, non-public firms can simply construct their very own smaller amenities.On a go to to California final yr Paraguay’s President Santiago Peña spoke with firms like Google and OpenAI to encourage them to spend money on Paraguay. It stays to be seen if such business giants open giant operations within the nation.Minister of Know-how and Communication Gustavo Villate is working intently with the president on the persevering with efforts.”We now have the youngest inhabitants. We now have plenty of renewable inexperienced vitality. We now have low taxes and financial stability,” he says proudly.I am taken on a tour with the minister of a deliberate new digital park close to Asunción’s primary airport. It is at present inexperienced fields and a few military barracks.Mr Villate unfurls plans to indicate off the lakes, a childcare centre and different buildings which he says needs to be prepared in underneath two years.”The federal government are going to take a position round $20m (£15m) for the primary stage, however the concept is for personal firms to take a position the remainder,” he says.Although the park is not prepared but, Mr Villate says the collaboration already taking place between the general public, non-public and college sectors is vital to constructing an ecosystem to draw international buyers.The federal government thinks the nation’s younger inhabitants will probably be a key attraction, and in a position to present a big tech workforce. The common age in Paraguay is 27.Vanessa CañeteVanessa Cañete says Paraguay is working exhausting to coach extra younger individuals in technologyBut extra younger individuals will have to be skilled. The know-how minister says the brand new digital park will even be dwelling to The College of Know-how, which is a three way partnership between Taiwan and Paraguay.In the meantime, there are different initiatives to coach younger individuals within the nation. “We’re working actually exhausting to create a mass of software program engineers, programmers and every thing you must present software program companies,” says Vanessa Cañete, president of commerce group Paraguayan Chamber of the Software program Business.Ms Cañete says she can be obsessed with encouraging extra ladies to check laptop engineering. In 2017 she arrange Women Code, a non-profit affiliation which goals to shut the tech gender hole.It organises programming and robotics workshops for youngsters and younger ladies, with greater than 1,000 receiving some type of coaching so far.Ms Cañete provides that software program builders are additionally given English classes for as much as 4 years to enhance their communication with abroad companies.The individuals I met are brimming with positivity about what Paraguay has to supply the tech world, however they’re additionally pragmatic.Ms Cibils says there are nonetheless “rising pains” for international buyers, with points like forms, which might maintain issues up adapting native contracts to standardised worldwide ones.However she is adamant that “when you put innovation at its core and leverage all the advantages that the nation has I feel Paraguay is usually a superpower”.