Businessmen in Nicaragua expect to reduce by at least 50% the investments they had previously planned for 2018, waiting for the problems affecting the country to be solved.
The research by the Consejo Superior de la Empresa Privada (Cosep) and the Fundación Nicaragüense para el Desarrollo Económico y Social (Funides), takes place in the context of more than 160 days of political and social crisis, which has severely affected the performance of the country's economy.
In the first half of the year, foreign direct investment flows received by the country totaled $620 million, 5.8% more than in the same period in 2017.
The main source of financing of Foreign Direct Investment (FDI) was reinvested earnings.By origin of investment, it was observed that most came from North America, with 37.6% of the total, followed by Europe with 20.3%.
In the first quarter of the year, FDI flows to the country totaled $318 million, reflecting an increase of 2% compared to the $311 million recorded in the same period in 2017.
From a report issued by the Central Bank of Honduras:
The composition of these flows reflects that the majority corresponds to reinvested earnings.By economic activity, those geared towards the Manufacturing Industry stand out (45.0% of the total); as well as Services (21.6% of the total); and Transportation, Storage and Telecommunications (11.4%).From the point of view of the origin of the investment, the most noteworthy figures are those originating from America with 56.1% of the total and Europe with 32.8%.
Israeli government officials have announced that they plan to invest close to $2 billion in various businesses in the sectors of agriculture, medicine and education.
The investment will be made through the Guatemalan-Israel Fund for Investment and Development in Guatemala, and this seeks to make the Central American country the center of Israeli business in the region.
Through an agreement with the business sector, the government of Honduras has announced that it intends to simplify procedures for licenses and registration of companies.
As part of a plan to facilitate private investment, the Hernandez administration has announced that they will also be talking with mayors so that local governments facilitate the operation of companies nationwide. In addition they"... announced that from April they will start using customs' forward looking statement."
Industrialists are demanding that the Constitutional Court rule on the request for legal protection that was granted in favor of an environmental group and which is keeping the mine's operations in a state of paralysis.
The project has been paralyzed since an environmental organization filed an request for legal protection against the mine, arguing that the Ministry of Energy and Mines did not carry out the necessary community consultations before authorizing the licenses.
In the first half of the year private fixed investment increased by almost 6% compared to the same period in 2016, driven mainly by the good performance of the construction sector.
From the Central Bank's "Quarterly GDP Report II"
Private fixed investment grew by 2.8% (5.6% in the first half of the year), as a result of increases in construction (9.3%) and other investments (3.25) and a decrease in machinery and equipment (-2.2%).Fixed investment increased by 2.2% (4.6% in the first half of the year), as a result of a positive performance in machinery and equipment (15.3%) and decreases in other investments (-8.1%) and those under construction (-1.0%).
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.
Minera San Rafael will have to cease operations after its two operating licenses were suspended as a result of a writ of protection granted by the Supreme Court of Justice to an environmental group.
Prensalibre.com reports that "...The licenses for El Escobal, approved in 2013, and Juan Bosco, in 2012, are suspended and as a consequence, the San Rafael mine must stop its operations.The extraction plants whose licenses are now invalid are located in Mataquescuintla, Jalapa, and Nueva Santa Rosa, Casillas, and San Rafael Las Flores, Santa Rosa."
34 thousand new companies started operations in 2016, recording an 8% increase over 2015.
The sector in which the most Operating Notices were recorded is retail and tourism, which includes restaurants, bars, beauty salons and supermarkets, among others.
Anpanama.com reports that "...According to the statistics, from January 1 to March 22, 8,267 Operating Notices were issued with an invested capital of US $459 million, less than in 2016 when 8,923 were issued generating US $826 million."
Fomilenio II will finance feasibility studies for four treatment plant projects and a one technical assistance project, all submitted by private companies, estimated at $32 million.
These five studies will have a cost of approximately $570,000, provided by FOMILENIO II, and will be used to determine the feasibility of public investments.Collectively, investors plan to invest $31.7 million.
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.
A portfolio of 105 infrastructure projects worth $1.6 billion, to be developed using public-private partnerships is being promoted among foreign companies.
During the Guatemala Investment Summit the government of Guatemala presented its portfolio of projects to local and foreign investors, in search of options to finance and develop them using public-private partnerships.
Five out of ten Guatemalan entrepreneurs believe that the current legal landscape of the country "could have repercussions" for the business sector.
From a statement issued by the Coordinating Committee of Agricultural, Commercial, Industrial and Financial Associations, CACIF:
Industrial and financial sectors are forecasting the best results, while construction and tourism show lags in different variables that are analyzed in the diagnosis of Perception of Business Activities.