Friday, May 22, 2026.
El Salvador
In recent years, El Salvador has become one of the most discussed countries in Latin America, not only for its aggressive security policies and dramatic reduction in gang violence, but also for its broader attempt to redefine itself economically, politically, and internationally. What was once viewed primarily through the lens of instability and criminality is now increasingly examined as a case study in state control, public security strategy, investment attraction, and geopolitical positioning.
Yet beneath the headlines lies a far more complex reality. El Salvador today presents both opportunities and questions for investors, corporations, regional operators, and security professionals alike. Rapid transformation often creates equally rapid shifts in risk landscapes, legal frameworks, governance structures, and public perception. Understanding the country therefore requires moving beyond narratives of either success or criticism and instead examining the operational realities on the ground.
This week’s edition explores El Salvador from a strategic risk perspective, reviewing the country’s evolving security environment, political dynamics, economic direction, business climate, and the implications these changes may carry for organizations operating in or evaluating the region. As with many emerging environments in Latin America, the key is not simply identifying risk, but understanding how risk itself is changing.
Brett Mikkelson
Fundador, B.M. Investigations, Inc. – Private Investigations in Panama.
Bukele Announces Anti-Corruption Crackdown After Declaring Victory Over Gangs in El Salvador
El Salvador’s President, Nayib Bukele, announced on Tuesday the launch of an anti-corruption campaign after declaring victory in his “war” against violent gangs, which has resulted in approximately 91,000 arrests.
Since March 27, 2022, Bukele has enforced a state of emergency under which tens of thousands of people have been detained without judicial warrants, a measure that human rights organizations claim has led to serious human rights violations.
“We decided, or rather had to face, what was basically an open war. I have always said that we won thanks to God,” the president stated during the inauguration of the Attorney General’s Office headquarters in Antiguo Cuscatlán, on the western outskirts of San Salvador.
He acknowledged that teamwork among different state institutions was essential “for us to defeat them.”
Bukele recalled that gangs previously acted as “the real government” and controlled “approximately 80% of the territory” of the Central American country.
After defeating the gangs, he said, “another stage now begins: law and order (…) ensuring there is no corruption.”
“There is theft, smuggling, tax evasion, corruption, fraud, and environmental contamination caused by individuals and companies, and we have not eradicated that yet,” he emphasized, adding that this would be the next step.
The opposition has criticized the lack of transparency in government accountability and the restrictions preventing information about detainees from being disclosed, arguing that Bukele governs with near-absolute power.
Several Latin American countries are seeking to replicate Bukele’s security policies despite criticism from human rights organizations, which argue that the state of emergency allows authorities to detain individuals without judicial warrants based on accusations of gang membership or collaboration.
Export Costs Rise, Warning Issued in El Salvador
According to Coexport President Silvia Cuéllar, although the flow of Salvadoran exports has not been interrupted, trade has become more expensive.
This is mainly due to the increase in freight costs on routes to Asian markets, which previously ranged between $1,300 and $2,000, but now are around $6,000, although she acknowledged that contracts are still being fulfilled.
Cuéllar recalled that most Salvadoran exports, especially perishable goods, are shipped to the United States and Central America, where there has not been a “significant impact.”
“We are more affected by the supplies we need to import through those routes than by exports themselves, because if I have the product, there is no problem,” the Coexport president stated during a forum organized with companies to analyze the impact of the Middle East crisis.
For Cuéllar, businesses now have tools such as artificial intelligence to anticipate developments in the international market.
At the same time, she recommended maintaining “constant monitoring,” short-term planning, and flexibility in contracts, given the possibility of shortages in raw materials.
El Salvador: Alarming Increase in Violence Against Women Journalists
Independent journalism in El Salvador is facing a critical period. The Association of Journalists of El Salvador (APES) has released its 2025 Press Freedom Report, titled “A Year of Journalism Under Persecution and Exile.” The document outlines a landscape of economic suffocation, state surveillance, and criminalization that has forced dozens of professionals to leave the country or continue practicing journalism under precarious and hostile conditions.
One of the report’s main findings highlights the harassment of women journalists, who accounted for 20.8% of all recorded attacks in the country, totaling 89 documented cases. Key findings include:
• Cases of harassment against women journalists tripled. Unlike previous periods, attacks extended beyond the digital sphere and became direct and personal, with 68.5% occurring in physical spaces and 26.9% in virtual environments.
• Increase in physical violence: five cases of direct physical aggression against female reporters were documented in 2025, a category in which no incidents had been reported in 2024.
• Misogynistic and sexist hostility: multiple attacks included sexist, misogynistic, homophobic, biphobic, and transphobic comments and actions aimed at delegitimizing women journalists’ presence in public spaces. No attacks of this nature were reported against male journalists.
• Profile of aggressors: the main perpetrators identified in attacks against women journalists were officers of the National Civil Police (PNC), social media users, public employees, and members of the military.
State Harassment and Information Deserts
The APES annual report, which documents a total of 426 attacks against journalists and media outlets, shows that the apparent slight statistical decrease compared to the previous year does not represent an improvement in democratic guarantees. On the contrary, it reflects a more serious phenomenon: the vacuum and silence created by the mass exile of more than 50 professionals in 2025 due to the latent threat of arbitrary arrests by the government. “The decrease in recorded attacks against the Salvadoran press coincides with its reduced presence within the country,” the report states.
Alongside detentions and persecution under the current State of Exception, the enactment of the Foreign Agents Law (LAEX) in September 2025 represented another attack on the media. By imposing a 30% tax on international cooperation funds, the law caused severe financial strain, layoffs, and the closure or relocation abroad of at least five civil society organizations, including APES itself. The result of this combination of exile and economic suffocation has been the emergence of “blackouts” or “information deserts” caused by “the lack of coverage, investigations, and professionals carrying out critical and independent journalism.”
The International Federation of Journalists joins APES in demanding that the Salvadoran state immediately cease the stigmatization and judicial and police harassment of journalists. We also call on the international community to maintain active monitoring of the country’s democratic deterioration and to establish gender-sensitive protection mechanisms for women journalists, who currently face a double burden of vulnerability due to both their profession and their identity.
El Salvador Attracts Interest from More Than 75 U.S. Companies Due to Its Investment Climate and Security
A group of more than 75 U.S. companies has begun analyzing investment opportunities in El Salvador with the goal of generating prosperity for both the Salvadoran and U.S. economies, according to information released Friday by the Department of State’s Bureau of Economic Affairs.
The business engagement followed a virtual session held on April 30, during which government officials and business representatives from both countries exchanged key information regarding the business environment in the Central American nation.
According to the Bureau of Economic Affairs, the meeting was led by Caleb Orr, Deputy Assistant Secretary for Economic, Energy, and Business Affairs. Participants also included El Salvador’s Minister of Economy, María Luisa Hayem; U.S. Chargé d’Affaires in El Salvador, Naomi Fellows; and DFC Regional Managing Director for Central America and the Caribbean, Michael McNulty.
The Bureau highlighted El Salvador as a key U.S. partner due to the security improvements promoted under President Nayib Bukele’s administration. These developments, according to the agency, have created a stable and attractive environment for foreign investment.
During the meeting, panelists emphasized that El Salvador has consolidated itself as a strategic U.S. partner in the Western Hemisphere thanks to public security improvements implemented under Bukele’s administration. The Bureau noted that this new environment of security and stability has fostered one of the region’s most attractive investment climates.
The event included a question-and-answer session in which officials addressed business leaders’ concerns regarding the realities of operating in the country.
The Bureau stressed that U.S. foreign policy prioritizes the active involvement of American companies in El Salvador’s economic transformation process. “Investments will bring prosperity to both countries,” the agency emphasized in its official statement.
Minister of Economy María Luisa Hayem presented an overview of El Salvador’s strategy to modernize its manufacturing sector. During her presentation, she described tax incentives and government support for technology investments, improvements in critical infrastructure, and stable labor relations.
She also explained that El Salvador has a diversified and reliable energy matrix, with more than 90% of electricity generated from renewable sources and natural gas, as well as an installed capacity of 3,107 MW capable of meeting industrial demand.
El Salvador Strengthens Economic Integration with the United States
The Bureau of Economic Affairs highlighted that U.S. companies operating in El Salvador benefit from preferential access to the U.S. market through the Dominican Republic-Central America Free Trade Agreement (CAFTA-DR).
Additionally, the country’s strategic location along Central America’s Pacific coast and reduced transit times to major U.S. ports further strengthen supply chain integration.
In 2025, El Salvador’s economy reported 4% growth and high levels of foreign direct investment, according to official U.S. data. The country has also strengthened its capacity in light manufacturing and the production of electrical components for U.S.-centered supply chains, as discussed during the virtual session.
During the event, DFC executive Michael McNulty addressed financing opportunities for high-technology and advanced manufacturing projects in El Salvador, while Minister Hayem detailed opportunities for U.S. companies in semiconductor input production, electronics manufacturing, and digital transformation activities.
The Bureau concluded that El Salvador’s business environment, driven by security reforms, investment incentives, and U.S. support, offers favorable conditions for the joint development of business projects capable of benefiting both economies.
El Salvador Seeks to Attract Asian Luxury Hotels and Showcases Its Investment Climate in Singapore
El Salvador continues promoting its strategy to attract foreign investment and sustainable tourism in international markets. According to the Ministry of Foreign Affairs, the Salvadoran Embassy in Singapore held a working meeting with representatives of Banyan Group, one of Asia’s leading luxury hospitality and hotel companies.
The meeting was held with Gabriel Gn, Vice President and Head of Business Development for the group, which is internationally recognized for developing tourism projects focused on sustainability, environmental conservation, and luxury experiences.
According to the Foreign Ministry, the meeting highlighted the competitive advantages El Salvador offers within the context of the country’s new climate of security, investment, and tourism growth.
Salvadoran authorities presented opportunities for the development of high-end sustainable hotel and tourism projects, both in coastal areas and in natural and mountain destinations.
The country’s international positioning in terms of tourist attraction, infrastructure development, and economic transformation was also emphasized, according to official information.
The Foreign Ministry stated that discussions also addressed the potential of El Salvador’s natural beauty to promote hospitality projects focused on exclusive experiences, wellness, and regenerative tourism.
For his part, Gabriel Gn expressed Banyan Group’s interest in continuing to learn more about El Salvador’s investment environment and the country’s tourism growth results.
At the same time, the company showed interest in exploring potential development opportunities aligned with its vision of sustainability and environmental responsibility.
Founded in Singapore, Banyan Group operates more than 100 hotels and resorts in over 20 countries and manages international brands such as Banyan Tree, Angsana, Cassia, Dhawa, Garrya, and Laguna.
The company is recognized for integrating environmental conservation practices, ecological restoration, efficient resource use, and engagement with local communities into its tourism projects.
According to information released by the Ministry of Foreign Affairs, Banyan Group originated from an environmental restoration project in Phuket, Thailand, where a former tin mine was transformed into one of Asia’s most iconic tourism complexes.
This initiative forms part of the Foreign Ministry’s broader efforts to position El Salvador as an attractive destination for strategic investments linked to sustainable tourism, hospitality, real estate development, and the green economy.
The Rise of Women Leaders: Women Lead 60% of Micro and Small Businesses in El Salvador, According to CAMARASAL
Female leadership is driving the Salvadoran economy through the management of most micro and small businesses, as well as a quarter of medium-sized companies, while women’s presence in senior leadership positions reaches new levels within the Salvadoran Chamber of Commerce and Industry (CAMARASAL).
In a television interview on the program Frente a Frente, CAMARASAL President Leticia Escobar stated that 60% of micro and small businesses in El Salvador are led by women, while 26% of medium-sized companies also have female leadership.
She also noted that there are 879,000 female-headed households in the country, reinforcing women’s importance within the national economy.
CAMARASAL has reached an institutional milestone with the creation of its first gender-balanced board of directors, composed equally of women and men. Escobar emphasized the significance of this development: “For the first time, the Chamber’s board of directors is made up equally of women and men, representing an important step toward equity in decision-making.” According to the interview, this change followed elections held in February.
CAMARASAL also has a women entrepreneurs committee that this year celebrated its 33rd anniversary. The committee has been a pioneer in promoting female entrepreneurship and currently leads initiatives aimed at strengthening women’s leadership in the private sector.
Escobar explained that the committee was founded at a time when discussions about equity and solidarity among women were practically nonexistent in the country, and since then it has promoted training and empowerment for women in business.
Among its most recent initiatives is the launch of the first edition of the CEOs Circle, an exclusive event for women leaders designed to encourage networking, mentorship, and the exchange of experiences among Salvadoran executives.
The initiative, organized jointly by CAMARASAL and ManpowerGroup, serves as a platform to identify the challenges women face in senior management positions and share strategies to overcome them.
Continuous education has become a key pillar in the development of female leadership. CAMARASAL offers diploma programs and executive leadership courses specifically designed for women, with the goal of strengthening their skills and preparing them to assume strategic roles within their organizations.
According to the Chamber’s president, preparation is essential to being ready when professional growth opportunities arise.
New Challenges for Female Leadership in El Salvador
The Salvadoran labor environment is undergoing a generational transformation. Companies face the challenge of retaining young talent, which increasingly prioritizes flexibility and work-life balance. According to Mónica Flores, President of ManpowerGroup Latin America, “workplace loyalty is being redefined and now depends on identification with the organization’s mission and purpose, not only on permanence or sacrifice.”
Flores, who leads one of the region’s leading talent solutions firms, emphasized that companies must adapt to these new expectations in order to remain competitive. The emergence of artificial intelligence in the labor market is also generating structural changes.
Flores noted that this technology eliminates repetitive tasks while creating more sophisticated jobs and increasing demand for human skills. Additionally, continuous learning and the ability to unlearn are becoming essential for both young professionals and experienced leaders.
Regarding diversity and social impact, ManpowerGroup LATAM operates in 18 countries and promotes an inclusive vision encompassing gender, race, religion, and other dimensions of diversity.
Flores cited data linking female leadership to family well-being: daughters of working women earn up to 23% more than daughters of women who do not work, while sons of employed women tend to assume more household responsibilities, facilitating the workforce integration of other women within the household.
According to Escobar and Flores, female leadership and inclusion represent a strategic commitment to El Salvador’s economic and social development, and the training of women leaders is viewed as a pathway to consolidating these advances within the national business environment.
