In order to house companies that are about to start operations or for companies that need to expand their operations in Coyol Free Zone, the Costa Rican industrial complex is building new infrastructure for an area equivalent to 67,347 square meters.
According to information disseminated by the industrial park located in Alajuela, Costa Rica, 17,725 square meters are currently being built, corresponding to new expansion processes of companies already installed and requiring more physical space to operate.
Panama and Honduras were the only two Central American countries to report increases in foreign direct investment in 2018 over the previous year, with year-on-year changes of 36% and 3%, respectively.
The growth of investments directed to Panama, which concentrated 51% of the sub-regional total, explained the increase that was reached in 2018 in Central America (9.4%), since except Panama and Honduras, the Central American countries received less Foreign Direct Investment (FDI) than in 2017, explains the report "Foreign Direct Investment in Latin America and the Caribbean 2019", produced by the Economic Commission for Latin America and the Caribbean (ECLAC).
The Yamaha distributor in Costa Rica invested $5 million in the construction of a 4,000-square-meter building with a sales room, workshop and a parts store.
Lutz Hermanos y Compañía, distributor of the aforementioned motorcycle brand, inaugurated its new building in front of Capris, in La Uruca, San José.
Despite the location and the fiscal benefits that in some cases the countries of the region offer, the lack of education of the population will be the main barrier to continue attracting large investments.
The lack of guarantee of finding the competent and sustainable human capital necessary for the proper operation of companies is an issue that negatively influences the attraction of important investments in Central America.
In 2016 44% of foreign direct investment in the region was concentrated in Panama, and a fourth consecutive year of increases was recorded, with 16%, while Costa Rica received 27% and increased by only 1.1%.
From chapter I of the report "Flows of FDI in Latin America and the Caribbean", by the ECLAC:
FDI into Central America grew by 3.7% in 2016 and totaled 11,833 million dollars.The increase in investments to the two main recipients of the subregion -Panama, which recieved 44%, and Costa Rica, 27%- compensated for the drop in FDI to the other Central American countries.
A representative of the American restaurant franchise Chuck E Cheese's is planning to open three stores in the country, and is currently looking for spaces in the West and East of San Jose.
The representative company plans to open the first restaurant in Plaza Bratsi, in Heredia.Around $3 million will be invested in this location, and the process of remodeling the premises, importing games and hiring staff is currently being completed.
The Unicomer group plans to invest $5 million this year in the opening of six new stores for its brands Gollo and Curacao and five new Opticians.
Unicomer Group's plan for this year also includes a new remittance service in tills in the Gollo and Curacao stores.Through an alliance with Western Union it will provide the money transfer service in 40 stores initially, and later this will be expanded to other outlets in the country and in Central America.
Costa Rica's lack of actions to address the problems of road infrastructure is beginning to take its toll directly, preventing the development of areas with clear productive vocation.
The very success of an area with comparative advantages for operating free zones, call centers and corporate offices, such as those close to Juan Santamaria International Airport, has become a detonator triggering the paralysis suffered by investments in construction of new buildings, simply because of vehicle congestion in Belen, in the Greater Metropolitan area of Costa Rica, is so bad that it is normal to take up to 50 minutes to travel 4 kilometers from the area in question to the access road to the center of the capital.
Knowing how to laugh at yourself is a virtue that every entrepreneur in Costa Rica should have, even though it might all end in tears.
This is what Alfonso Carro does in his article on Crhoy.com: laugh at himself, at the same time bringing to light the helplessness felt in light of the deteriorating conditions for investment in an economy such as Costa Rica, which was once number one in Central America.
Determinants of investment, committed figures, and key economic sectors in the region in which Colombian companies have ventured into in recent years.
From the summary of the document by Cepal: "Colombian Investment in Central America":
The main objective of paper on Colombian investment in Central America is to analyze the business strategies that have led to increased Colombian foreign direct investment (FDI) in Central American countries.
This year multinational plans to invest that amount in remodeling, maintenance, new units, electronic commerce, and logistics and distribution.
From a statement issued by Walmart of Mexico and Central America:
Mexico City, 10 March 2016.- In 2016 Walmart de Mexico and Central America will invest an estimated $14.700 million pesos ($866 million), 17% higher than the total amount invested last year.
The Costa Rican company increased its sales by 2% compared to 2014, thanks to the dynamism of flavored alcoholic beverages in the US, foods in Guatemala, and beers, wines and spirits in Costa Rica.
Flavored alcoholic beverages, especially in America, and increased profitability in beer, wine and distilled drinks in Costa Rica and food in Guatemala, boosted Costa Rica Florida Ice & Farm's operating income in 2015, reaching $179 million, 13% more than in the previous fiscal year.
The private transport company has announced it will invest $3.5 million in the opening of a service center and support for the operation of the company in Latin America.
From a statement issued by the CINDE:
San Jose, January 26, 2016 -Uber has announced the establishment in Costa Rica of its first Center of Excellence in Latin America. The center will create more than 300 jobs by the end of this year.
In the third quarter private construction projects grew at an annual rate of 5%, driven by residential projects, which grew by 21%, while non-residential fell by 14%.
From the report "Construction with Private Destination" by the Central Bank of Costa Rica:
The quarterly index of construction activity which is for private consumption continues to show positive annual growth rates.
The project Parque Industrial del Caribe in Costa Rica, includes the construction of an industrial free zone measuring 41,000 m2, an 8,300 m2 office center and an 11 000 m2 shopping center, as well as Ofibodegas and a hotel.
The companies behind the project announced plans to begin construction of the Caribbean Industrial Park (PIC by its initials in Spanish) in the first quarter of 2016.