Panama Country Commercial Guide
Learn about the market conditions, opportunities, regulations, and business conditions in panama, prepared by at U.S. Embassies worldwide by Commerce Department, State Department and other U.S. agencies’ professionals
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Strategic Technologies
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Panama is actively positioning itself as a technology hub in Latin America, leveraging its strategic geographic location and strong financial infrastructure. The country is seeing increasing interest and development in several critical emerging technologies, particularly:

Autonomous Systems and Robotics

While fully autonomous vehicles on public roads are still some way off globally, Panama is seeing advancements in specific applications and the foundational elements of these technologies:


•    Logistics and Ports: Given the immense volume of cargo through the Panama Canal and its ports, there’s significant potential for autonomous systems in automated yard operations. This includes autonomous tractors to move containers and cargo within port facilities, aiming to increase safety, efficiency, and address workforce shortages. DHL Supply Chain, for example, has deployed proof-of-concept autonomous shunting robots in other locations that could be indicative of future trends in Panama’s logistics sector.
•    Aerial Surveillance and Security: Panama has recently acquired combat-capable aircraft, including the A-29 Super Tucano, which possess advanced avionics suites with capabilities like night vision, forward-looking infrared sensors, mission computers, and targeting systems. While these are piloted, they represent an increase in sophisticated aerial platforms that can incorporate autonomous or semi-autonomous features for surveillance, border patrol, and countering illicit activities.
•    STEM Education: Panama is nurturing future talent in robotics through educational initiatives like RoboThink Panama, which offers STEM, coding, robotics, and engineering programs for students. The VEX IQ Robotics Competition is also held in Panama, providing a platform for young minds to develop practical skills in designing, building, and programming robots. This indicates a long-term investment in the human capital necessary for a robotics ecosystem.

Financial Technologies (FinTech)

Panama’s robust financial infrastructure and strategic location make it a fertile ground for FinTech growth, although the regulatory framework is still evolving.
•    Growing Market: The FinTech sector in Panama is experiencing rapid growth, with digital financial services access growing at 15% annually and over 70% of internet users accessing mobile banking tools. This indicates strong demand and a user base for digital financial solutions.
•    Predominant Business Models: Key areas of focus for FinTech in Panama include Payment Service Providers (PSPs), mobile banking, digital payment systems, blockchain solutions, and the use of AI in risk management.
•    Regulatory Challenges and Opportunities: A significant challenge is the lack of a clear and comprehensive regulatory framework specifically for FinTech companies. Many services like e-wallets, cryptocurrencies, and crowdfunding operate in a “grey area.” However, government efforts are underway to develop a legal framework to provide trust for investors and users, with the legislative branch showing interest in regulating and promoting AI in financial services.
Smart Grid Technologies for Renewable Energy

Panama is highly committed to renewable energy and is making strides in integrating smart grid technologies to enhance energy efficiency and grid resilience:                                                                                                             
•    High Renewable Energy Penetration: Panama has a high percentage of renewable energy in its matrix, with hydropower, wind, and solar making up most of its energy sources. The country aims for 30% of its installed capacity to come from new renewable energy sources by 2050.
•    Policy and Regulatory Incentives: Panama has implemented various incentives to attract investment in clean energy, including tax and tariff incentives for solar and small hydroelectric projects, and policies promoting energy efficiency and self-consumption with the ability to sell surpluses back to the grid.
•    Smart Grid Development: The regulatory watchdog is actively working on its 2025 regulatory agenda for the power sector, which includes: 

o    Auxiliary Services Market: Plans for a norm to implement an auxiliary services market, which is crucial for integrating variable renewable energy sources.
o    Battery Energy Storage Systems (BESS): Modifications to the calculation of firm power for renewable generation plants incorporating BESS, although there are discussions around cost implications. This highlights the growing importance of energy storage for grid stability.
o    Smart Meters and Advanced Metering Infrastructure (AMI): Plans to amend the framework to include definitions of smart meters and AMI, along with a replacement plan for older meters. This is a foundational step for building a smart grid that can enable two-way communication and more efficient energy management.

•    Regional Integration: Panama is a key player in the Electrical Interconnection System of Central American Countries (SIEPAC), which promotes regional electricity trade and energy exchange, further bolstering grid stability and efficiency.

In summary, Panama is strategically investing in and fostering the development of critical emerging technologies. While each area has its unique challenges, there’s a clear governmental and private sector push to leverage these technologies for economic growth, improved infrastructure, and enhanced security.

Web Resources

•    U.S. Department of State Investment Climate Panama 
•    Izertis Article Positionins in Latam 
•    Panama Bill Sets the Stage for Crypto-payments Article 
•    Robothink Article 
 

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