Panama is considered a logistics and transportation hub due to its strategic location and the presence of the Panama Canal. Sitting at the crossroads of North and South America, the Panama Canal provides a vital link between the Atlantic and Pacific Oceans, facilitating global trade, and attracting international shipping companies.  By leveraging its geographic advantage, maritime infrastructure, free trade zones, air connectivity, infrastructure development, and regional integration efforts, Panama has positioned itself as a key player in the global logistics industry.

Panama has been actively working to diversify its energy mix, reducing reliance on fossil fuels, and increasing the share of renewable energy sources. Currently, the primary sources of electricity generation in Panama include hydroelectric power, thermal power (including natural gas and oil), wind energy, and solar energy. The country’s favorable climate conditions and geographical location contribute to the viability of renewable energy projects.

Hydroelectric power is the largest source of electricity in Panama. It accounts for a significant portion of the country’s energy generation capacity and plays a crucial role in meeting the growing demand for electricity. Panama’s hydroelectric power potential enables it to generate surplus electricity that can be exported to neighboring countries. The country is part of the Central American Electrical Interconnection System (SIEPAC), a transmission infrastructure that enables the exchange of electricity among Central American countries. This interconnection enhances energy security, promotes efficiency, and facilitates the integration of renewable energy resources across the region. 

Panama’s natural beauty, cultural heritage, and rich biodiversity make it a popular destination for nature enthusiasts and eco-tourists. Panama is actively promoting sustainable and responsible tourism initiatives. Its vision for regenerative tourism focuses on restoring and regenerating natural and cultural resources while providing meaningful experiences for travelers. In collaboration with local communities and stakeholders, the government is encouraging a focus on conserving biodiversity and minimizing negative environmental and socio-cultural impacts. This includes promoting eco-lodges, nature-based tours, and community-based tourism initiatives that provide economic benefits to local communities while preserving natural resources.

Panama’s vulnerability to the effects of climate change makes sustainable water and agriculture a high priority for the country. To address potential challenges, Panama is interested in adaptation measures that would promote sustainable agriculture and water management. The country is committed to fostering a blue and green economy through the sustainable use of natural resources. They recently became the first country from Latin America to accede to the Convention on the Protection and Use of Transboundary Watercourses and International Lakes (Water Convention). Further, the new State Agri-Food Policy Act represents a big step towards making its agricultural production more sustainable. The act adopts an inclusive, territorial, and sustainable approach, designed to create jobs and promote the rural economy.

https://unece.org/media/press/380975 

https://www.iica.int/en/press/news/panama-launching-its-state-agri-food-policy-designed-assistance-iica-and-aimed-making 

Panama is home to various research centers and businesses focused on Technology and Innovation. Information and Communication is a sector with one of the highest FDIs in the country. As part of the Panama Hub Digital strategy, which aims to develop the Information and Communication Technologies (ICT) Sector and make Panama a Digital Innovation Center, the country seeks to make the ICT sector competitive at an international level through coordinated programs and projects. Financing from the IDB has supported the creation and strengthening of ICT and cybersecurity skills throughout public administration. Panama holds many advantages including a favorable legal framework that protects data privacy making it a natural destination to house data for large companies and governments.  Additionally, Curie, a Google-owned subsea cable, added a branch in Panama, which will enhance connectivity and bandwidth to Central America.

https://propanama.gob.pa/en/Digital 

https://www.trade.gov/market-intelligence/panama-ict-opportunity-new-regional-ixp 

https://cloud.google.com/blog/products/infrastructure/curie-subsea-cable-set-to-transmit-to-chile-with-a-pit-stop-to-panama 

https://www.iadb.org/en/news/panama-will-advance-its-digital-transformation-idb-support

Panama’s entrepreneurial spirit and innovation ecosystem are driving the growth of technology startups and digital businesses. The Panamanian government has shown a commitment to promoting the digital sector through various initiatives. This includes creating programs to foster entrepreneurship, providing incentives for technology investments, and developing policies to support the growth of the digital economy. In addition, Panama’s strategic location and well-established logistics infrastructure position it as a potential regional hub for technology services. The country seeks to attract regional headquarters of tech companies, IT outsourcing services, and data centers, leveraging its connectivity and business-friendly environment.