Growth of Guatemalan Investments in Nicaragua

Investment made by Guatemalan companies in Nicaragua almost tripled between 2014 and 2015, with money mainly going into energy, sugar, palm oil and tourism.

Wednesday, July 20, 2016

In the past eight years Guatemalan companies have invested $246 million in Nicaragua, according to ProNicaragua. In 2013 the highest amount in the last five years was recorded, with $46 million being invested in the country. In 2014 the amount of investment was only $6 million, while in 2015 it amounted to $16.7 million.

The presidential delegate for investment and exports, Alvaro Baltodano, told that "...'(Guatemalan businesspeople) have made investments in hotels (in Nicaragua). The Hyatt Hotel is an investment made with Guatemalan and Mexican capital. In Energy there are investments in the geothermal plant Momotombo. In livestock, the Guatemalan Leal Group is one of the most important in Nicaragua'."

Extraction, processing and refining of vegetable oil is another of the activities in which Guatemalan companies have invested. "...According to the National Free Zones Corporation (CNZF by its initials in Spanish) the company Extraceite, S.A. has set itself up in Chontales, and is working on extraction, processing and refining of vegetable oils, having invested US $11.9 million."

In the energy sector, César Zamora, chairman of the Chamber of Energy, explained that "... in the case of plants in Tipitapa, Corinth and Amayo (Rivas) alone, 30% of the investment is of Guatemalan origin."

In the sugar, "industry ...The Monte Rosa Mill, belonging to the Guatemalan Pantaleón Group, of Guatemalan origin, contributes about 35% of the sugar produced in the country."

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