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 Elnuevodiario.com.ni 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."
With significant participation by Venezuela, levels of FDI reached $1.284 billion in 2012, $182 million more than in 2011.
The main targets were industry, trade and services, energy, mining and free zones, which accounted for 77% of the total, according to data presented by the investment promotion agency ProNicaragua.
Representatives of the Government of Nicaragua have made assurances that the tax reform will not affect the incentives announced in the FTZs.
The presidential delegate for the Promotion of Investment and Trade Facilitation, Alvaro Baltodano said, "What's in free zones, stays as it is, it will not change."
The Government is emphasizing the understanding and agreement between employers, workers and officials on issues like the minimum wage.
Nicaragua seeks to position itself as an attractive and reliable place for foreign investment and to attract innovative projects, states the investment promotion agency ProNicaragua, which is preparing three business forums this year.
$ 600 million investment is projected for this year, 20% higher than 2010.
Javier Chamorro, Executive Director of ProNicaragua noted that in 2010 the energy, telecommunications and free zones had the biggest growth, followed by tourism. This year projections estimate that investments will again concentrate in these sectors.
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