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CENTRAL
AMERICA |
US$ 1 Billion to be Invested
in Nicaragua
PRONicaragua, the official investment
promotion agency of Nicaragua, recently
reported that nearly US$1 billion are
expected to flow into the country in foreign
direct investment (FDI) in the next couple
of years as a result of numerous FDI
projects soon to be developed in different
economic sectors.
2010 is rapidly becoming the recovery year
for Nicaragua, as savvy investors are
increasingly choosing Nicaragua as the ideal
destination to start a business due to its
dynamic economy, strategic location and
natural beauty.
Although the international crisis affected
FDI inflows in all of the Central American
countries during 2009, Nicaragua was the
least affected nation in the region. During
the first semester of 2009, Nicaragua
managed to attract US$231 million, only a 9
percent decrease in comparison to the same
period in 2008, while countries like Costa
Rica and El Salvador, traditional strong
players in FDI attraction, experienced
drastic plunges in their inflows, seeing
their numbers decrease by 49 percent and 90
percent, respectively.
However, in 2010 several investment
announcements continue to demonstrate the
country's success in attracting FDI
projects. One of the most important
announcements for the country was the US$700
million investment of Tumarín, a
hydroelectric dam of Brazilian origin. Other
American and Canadian companies such as Ram
Power, B2Gold, Amayo and Hemco, have all
announced major investments in energy and
mining, which will account for more than
US$300 million in the next couple of years.
Nicaragua has also attracted investments in
both the manufacturing and services sectors,
providing added value and better paying jobs
to the economy. Companies such as Mexican
Grupo Denim, Brazilian Schmidt Irmaos,
German Draexlmaier and American Cupid
Foundation, have all begun investment
projects totaling more than US$80 million
dollars in the manufacturing sector, which
will generate around 8,000 new jobs.
In the service sector, companies such as
Stream Global Services Inc. and Sitel,
leaders in the outsourcing of complex
business processes, have either recently
launched operations in Nicaragua or expanded
their existing facilities, recognizing the
country's openness and attractive conditions
for these kind of investments.
Javier Chamorro, Executive Director of
PRONicaragua, stated that "not only has the
Government of Nicaragua openly expressed its
interest in constructing a favorable
business climate in the country, but its
actions speak accordingly. A good example is
the signing of a tripartite agreement
between the Government, labor unions and the
private sector to protect jobs within the
Free Zone sector by establishing a minimum
wage policy through 2013". This agreement
offers predictability to investors and, by
establishing policy well into the next
administration's term, effectively
demonstrates how the country recognizes that
this type of issues should be resolved
separately from political discussions. The
legal framework has also been strengthened
to offer legal securities to investors as
well as to promote investment in priority
sectors of the economy.
PRONicaragua is the Nicaraguan Investment
Promotion Agency, established in 2002. It is
a non-profit, public-private institution
whose mission is to generate economic growth
and job creation in Nicaragua by attracting
high-quality foreign direct investment. The
agency provides complimentary support
services to qualified investors seeking
investment opportunities in our country. The
agency's excellent performance has been
recognized as one of the best in the world
by impartial and respected institutions such
as the World Bank. |
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