Regarding policies for production transformation, the Estrategia Nacional de Competitividad 2024‑2029 (ENC) aims to promote inclusive, equitable and sustainable development in the country. The ENC identifies 12 key areas, including human capital, innovation, employment and environmental sustainability, with a particular focus on fostering research and development (R&D), strengthening human capital and diversifying the economy. Additionally, the Plan Estratégico Nacional de Ciencia, Tecnología e Innovación 2025‑2029 promotes 22 strategic science, technology and innovation projects in 6 critical sectors, including production transformation and digitalisation. The plan proposes concrete actions to modernise industry, boost investments in R&D and promote technology transfers. Finally, the Panamá Productiva III initiative, supported by the Development Bank of Latin America and the Caribbean (CAF), offers technical assistance and co‑ordinates the joint action of companies, academia, communities and the public sector to increase productivity, diversify markets and foster innovation.
Regarding public financing mechanisms for production transformation, a primary source of funding is the Inter-American Development Bank (IDB), which has allocated more than USD 190 million to Panama since 2018. The IDB has funded four development programmes in the country, targeted at supporting micro, small and medium-sized enterprises, promoting R&D and innovation, enhancing human capital and fostering transport decarbonisation. Public banking institutions, including the Banco Nacional de Panamá (BNP), Caja de Ahorros (CA) and Banco de Desarollo Agropecuario, propose specific credit lines to increase the productivity and sustainability of business. For instance, the BNP offers green technology financing and specialised advice for the implementation of sustainable technologies, while the CA provides leasing for companies to acquire high-value machinery, vehicles or technological equipment.
In terms of international partnerships for production transformation, the regional data centre CopernicusLAC Panama part of the EU-LAC Digital Alliance, was established under the European Union’s Global Gateway to foster digital innovation. In addition, the European Union’s Euroclima programme has assisted Panama in developing human capital and regulatory frameworks to advance the green hydrogen market, in alignment with the Estrategia Nacional de Hidrógeno Verde y Derivados de Panamá. Furthermore, the World Bank’s Country Partnership Framework (CPF) 2024‑28 seeks to diversify Panama’s economy, enhance human capital and facilitate job creation. The CPF comprises eight projects, including three development policy loans and a programmatic series focused on green growth. In addition, the Proyecto Mesoamerica supports sustainable development and regional integration among Central American countries through capacity building, technical assistance and green transition programmes.