Alejandro Delgado, president of National Leather and Footwear, explained that most exports head for Central America and that the average price of each pair is $ 12.

He added that the sector has little technology and in order to reverse the situation, the workshops require a more accessible credit.

"Loans for two or three years do nothing for the sector since during that period it is difficult to pay back the debt, especially for small companies. We require loans of at least ten years, but banks (domestic) are not contemplating such terms," Delgado told El Nuevo Diario de Nicaragua.

Source: elnuevodiario.com.ni

More on this topic

Complex Outlook for Panamanian Industry

March 2017

In 2016 the GDP of the industrial sector shrank by almost 3%, affected by a 12% drop in sugar production and 11% in beverage production.

In the last two years, the contribution of the industrial sector to the economy has shrunk by $80 million, according to estimates made by entrepreneurs who are members of the Union of Industrialists of Panama. In 2016 alone the sector's GDP fell by 2.8%, and this year the outlook is not very encouraging.

The Potential of Nicaragua's Industrial Sector

September 2016

The union has projected growth of 4.4% in 2017 and is counting on attract more foreign investors to partner up with local entrepreneurs to promote the development of industrial activity.

More foreign investment, better use of chains that already exist, such as in the food industry, and reducing the cost of energy are elements that will enhance the development of the Nicaraguan industrial sector, which expects to close 2016 with growth of 3.8%.

Schmidt Calzados Invests $12 Million in Nicaragua

February 2010

The shoe company will open in the free zone between July and September, creating over 1.000 jobs.

Of Brazilian ownership, the company sells 70% of its production to Europe and the remainder to the United States.

Alvaro Baltodano, secretary of the Free Zone Corporation, told Laprensa.com.ni that “the Brazilians want to produce all their shoe parts in Nicaragua, such as heels, soles and insoles”.

Guatemala: Demand for industrial products drop

February 2009

The level of consumption in the sector has fallen between 15 and 25%, as a result of the decrease in exports and a smaller local demand.

Elperiodico.com.gt reports: "The most affected industries are food and beverages, maquila, plastics, and construction, including some materials used by that sector, added Ernesto Morales, president of the Federation of Small and Medium Business (Fepyme).