 Encarnación, August 31, 2025 – The Rally del Paraguay marked a historic milestone: for the first time, the country joined the official calendar of the World Rally Championship (WRC), becoming the 38th nation to host an official round. The event took place from August 28 to 31, with Encarnación as its hub and 19 special stages covering more than 335 km of competition.
Victory in the main category went to Sébastien Ogier, alongside co-driver Vincent Landais, representing Toyota Gazoo Racing WRT. In WRC2, Swedish driver Oliver Solberg, with co-driver Elliott Edmondson, took the win — establishing a symbolic link between Paraguay and European motorsport talent. A Global Showcase with Economic and Symbolic Impact The rally generated a significant economic impact, with record hotel occupancy, increased consumption of goods and services, and unprecedented promotion of destinations such as Encarnación, Cambyretá, and Hohenau. Authorities emphasized that this event “marks a turning point for Paraguay, boosting economic development, tourism, and consolidating the country’s position on the international motorsport calendar.” Paraguay–Sweden: A Narrative that Goes Beyond the TrackOliver Solberg’s triumph and Paraguay’s debut in the WRC create a bridge with Europe — and particularly with Sweden. This convergence opens a powerful narrative for those aiming to connect both regions:
Final ReflectionThe Rally del Paraguay did more than ignite engines; it ignited Paraguay’s international visibility as a strategic country on the world map. Related article: Oliver Solberg närmar sig VM-titeln – efter stark upphämtning Mario Contreras linkedin.com/in/mario-cp/ Club Networking Análisis estratégico y desarrollo de negocios sostenibles
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 In Paraguay, SMEs represent nearly the entire formal business sector and contribute significantly to national employment. In an increasingly competitive environment, two strategic concepts emerge as key allies for this sector: circular economyand digitalization. Far from being isolated trends, their integration offers a concrete opportunity to optimize operations, reduce costs, and build more sustainable and profitable businesses.
The Importance of SMEs in Paraguay According to the OECD’s 2024 SME Policy Index for Latin America and the Caribbean, micro, small, and medium-sized enterprises account for 99.5% of registered companies in the region and provide about 60% of formal employment. Their strategic importance in Paraguay is indisputable. Strengthening SMEs means strengthening the national economy. Circular Economy: Efficiency and Sustainability Adopting a circular economy model allows companies to redesign processes to reduce raw material use, minimize waste, and find value in by-products previously discarded. In a country where input and energy costs are recurrent challenges, this strategy represents a direct path to efficiency. A report by ECLAC (CEPAL) shows that implementing circular principles can reduce operating costs by 10% to 30%, depending on the sector and depth of applied changes. In Paraguay, interest in this model is growing, as evidenced by the recent ICEX 2024 Market Study on the Circular Economy in Paraguay, which highlights the opportunity to generate local value by utilizing industrial and agricultural waste. Digitalization: The Lever to Professionalize and Scale Digitalization acts as a strategic enabler for SMEs. According to official data from the National Statistics Institute (INE) of Paraguay, 82% of Paraguay’s population aged 10 and over uses the internet, confirming that the local consumer is already digital. However, many SMEs still operate with traditional schemes, manual processes, and limited online presence. In this scenario, adopting accessible digital tools — such as virtual catalogs, basic order platforms, digital inventory control, and simple reporting — allows professionalizing management, optimizing resources, and expanding commercial reach. According to DataReportal 2025, Paraguay has 5.78 million active internet users, and it is projected that e-commerce will grow 28% annually until 2027, reaching online sales close to US$1.5 billion, according to PaymentsCMI. Practical Strategies for Paraguayan SMEs Integrating circular economy and digitalization does not require large investments. Some concrete actions include:
Real Benefits
In a context where consumers are digital and sustainability is an increasing requirement, combining circular economy and digitalization is not a trend but a strategy for survival and growth. Paraguayan SMEs that integrate these approaches will be better positioned to compete in the current and future market. The time to transform is not tomorrow. It is today. Mario Contreras Club Networking Análisis estratégico y desarrollo de negocios sostenibles Consulted references: OECD (2024), PNUD Paraguay (2024), CEPAL (2023), ICEX (2024), INE Paraguay (2024), DataReportal (2025), PaymentsCMI (2025).  In Latin America, sustainability is often associated with institutional campaigns or external regulations. However, the principles of the circular economy represent a real strategic opportunity for companies seeking to adapt, differentiate themselves, and strengthen their resilience in the face of new challenges.
This approach moves away from the traditional “take, make, dispose” model, aiming instead for a system where resources remain in use for as long as possible. It involves redesigning processes, reusing materials, and discovering new value streams from what was previously considered waste. In Paraguay, where many small and medium-sized enterprises face structural limitations, applying these principles can translate into concrete advantages:
Real-world examples: When circularity cuts costs and generates revenue These benefits are not hypothetical. There are already real cases, both regionally and locally, that show how this model delivers tangible results. In Chile, the company Algramo managed to reduce the price of daily consumer products by up to 30% through the use of smart refillable containers. Over 200,000 plastic containers have been avoided, and the model has led to new partnerships with major brands like Unilever.¹ Another outstanding initiative is EcoCarga, which has eliminated more than 100 tons of plastic through cleaning product refill stations. The system not only saves consumers money, but also improves margins for distributors.² In Paraguay, TyD Recycling turns end-of-life tires into steel, mulch, and rubber. This avoids landfilling or burning waste while providing direct employment to 22 people and opportunities for over 350 local recyclers and suppliers.³ A compelling agro-industrial innovation comes from Maigotex, which has started producing plant-based leather from mango waste. What was once discarded is now a cost-free raw material with high added value.⁴ Several of these projects have received funding from the Circular Opportunities program, driven by the European Union, Koga, and GIZ, offering up to €30,000 per initiative.⁵ Globally, it is estimated that an industrial transition to circular models could unlock up to $4.5 trillion in economic value by 2030.⁶ Circular economy is not just an environmental trend; it is a concrete business strategy. Companies that embrace these principles will not only be better positioned to meet future market demands, but will also discover smarter, more efficient, and responsible ways to grow. Mario Contreras Club Networking Strategic analysis and sustainable business development Sources
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