US$ 1 Billion to be Invested in Nicaragua

    WASHINGTON, DC, March 12, 2010 /24-7PressRelease/ -- 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. For further information, please contact us at (505) 2270-6400.

Website: http://pronicaragua.org

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