Why invest in Nicaragua?
High Levels of Personal Safety: Nicaragua has become one of the safest countries in the western hemisphere. The Economist Intelligence Unit (EIU in its 2013 country risk evaluation ranked the country as the second safest in Central America and the third in Latin America).
Preferential Access to International Markets: The country strategic location in the heart of the Americas and the preferential access gained to key markets such as the United States, Mexico and Europe, has allowed to position itself as a very competitive export platform, reaching to a world market of 1.5 billion people.
Favorable Business Climate: The Government of Nicaragua has established a series of measures and policies to stimulate the sustainable growth of the country’s private sector.
Availability of a Qualified Labor Force: Nicaragua’s population is young and dynamic, with 77 percent of its total population under the age of 39. The country’s labor force of 3.2 million is one of the most competitive and productive in the region.
Solid Legal Framework and Attractive Investment Incentives: The Foreign Investment Promotion Law (344) offers investors fundamental guarantees such as full currency convertibility, freedom to expatriate all capital and profits, full international ownership and no discriminatory treatment for foreign investors.
Public Private Dialogue: The establishment of a public-private dialogue where government, private sector and union leaders meet periodically to discuss key issues for business and work environment, has been instrumental for social stability, to foster economic growth, create jobs and reduce poverty.
US$ 10.9 Billion in 2012 – 2016
- Manufacturing US$ 600 Million
- Mining Exploration US$ 359.4 Million
- Oil Exploration US$ 353.6 Million
- Ports US$ 281 Million
- Agroindustry 334.3 Million
- Free Zones US$ 644.6 Million
- Tourism US$ 555 Million
- Telecommunications US$ 2,018.3 Million
- Refinery “Supreme Dream of Bolivar” US$ 3,880.4 Million
- Expansion and transformation of the Energy Matrix US$ 1,742.0 Million
- Others US$ 121 Million
- Renewable Energy
The Government of Nicaragua established as a priority the transformation of the energy generation matrix towards renewable resource.
In the 2014 Climatescope, published by Bloomberg and IDB, Nicaragua was among the 15th countries with the best investment climate in clean energy, from 55 countries studied around the world. http://global-climatescope.org/en/
Projects: Geothermal: San Jacinto-Tizate, Casita-San Cristobal, Binary Plant 68 (MW; US$ 450.0 million). El Hoyo-Monte Galan, Caldera de Apoyo, Ometepe island, Mombacho, Cosigüina Telica-el Ñajo, Caldera de Masaya etc.; Hydroelectric: Tumarín 253 (MW; US$ 1,100 million), Larreynaga, Hidropantasma, El Diamante, La Mora, Boboké, Copalar Bajo, Valentín, Piedra Fina, Corriente Lira, La Sirena, Piedra Cajón, El Barro, El Carmen; Solar Energy: La Trinidad; Eolic: La Fe San Martin and ALBA in Rivas (124 MW; US$ 204.2 million).
- Transport and Communication infrastructure projects
– Roads: Acoyapa- San Carlos Road & Santa Fe Bridge; Bluefields- Nueva Guinea and Improvements to roads to that connect the Pacific coast with the Caribbean and the Costanera Road
– Ports: Deep Water Port in the Caribbean; Bilwi Port; Cruise Ship Port in San Juan del Sur;
– Airports: Punta Huete in Managua; San Carlos in Río San Juan; Ometepe; Montelimar and Iguana Beach in Guacalito de la Isla Project
– The Grand Interoceanic Canal of Nicaragua: The US$ 50 billion project will be the second channel for Central America that will help to meet the global demand with a new commercial transport route to a lower cost. A Ship Canal joining the Caribbean Sea and the Pacific Ocean, will be one of the major Infrastructure projects planned internationally and will operate as a multimodal logistic centre for regional and global trade. The Canal also include sub-projects such as: A port on the Caribbean and Pacific Coasts; a free trade zone with the Pacific and Caribbean coasts; a Dry Canal that is a railway between the two ports; a Pipeline to connect the Caribbean and the Pacific; An international airport and others.
- Agribusiness: Historically named the “breadbasket of Central America”, Nicaragua is known for its ideal climate and fertile soils with optimum conditions to produce a wide variety of agricultural products, from quality forestry plantations in the Atlantic region to shrimp cultivation and industrial fishing operations in the coastal areas of the Pacific and the Caribbean Sea. 9 million hectares of suitable agricultural land available, of which only 1.2 million are currently being exploited.
- Manufacturing: The manufacturing industry is one of Nicaragua’s most dynamic sectors, encompassing various fields from footwear and apparel to auto-wire harness production. The industry’s participation as a national economic driver has been steady through recent years, demonstrating an average of 41.4 percent of the country’s total exports since 2007.
- Outsourcing Services: Due to its proximity and affinity to North and South American markets, its competitive cost structure and its young and qualified workforce, Nicaragua has quickly become an attractive emerging destination for the Outsourcing Services Sector.
REGISTERING A COMPANY IN NICARAGUA
The process of registering a company in Nicaragua can be fast tracked by using the top quality, free of charge services for investors provided by the Investment One-Stop Shop (VUI, for its acronym in Spanish), reducing the registration time to approximately 13 days. The main steps are:
- Draft Act of Incorporation
- Buy Accounting and Corporate Books
- Submit Act of Incorporation, Registration as a Trader and Accounting Books at VUI
- Obtain the Single Registration Document (DUR, for its acronym in Spanish)
See from the link below the Nicaragua Investment Overview 2014:
Investment_Overview Nicaragua 2014
PRONicaragua is a public-private institution that offers complimentary support services to qualified businessmen interested in exploring investment and trade opportunities in Nicaragua. www.pronicaragua.org
Would you like to be a part of the The Finnish-Latin American Trade Association?
The Finnish-Latin American Trade Association operates for the development of commercial, technical, and those related to cooperation between Finland and Latin America. The association organizes meetings and lectures, and opportunities for progress current issues.
More information about the trade association here.