Honduras: Closure of Cigar Factory Announced

The president of the National Association of Manufacturers, Adolfo Facussé, reportedly stated that the owner of the tobacco company informed him that they will move their operations to Nicaragua.

Tuesday, August 30, 2011

According to Wendy Mejia in her article in Elheraldo.hn, the cigar factory, located in the department of El Paraíso, is one of the largest in the country, currently employing 1,500 people, who would become unemployed if this move goes ahead.

One of the factors specifically identified as the reason for the plant’s transfer to Nicaragua is "the threat of invasion," and more generally, the position of legal uncertainty that productive sectors face.

Facussé noted that "investments in agriculture have stalled because of the threat of invasion. The government, instead of attracting investments and creating jobs, is sponsoring land invasions, how can we be happy with the government?"

In turn, the president of the Honduran Council of Private Enterprise (COHEP), Santiago Ruiz said he was "alarmed about the situation of legal uncertainty of the national productive sectors. We've seen the areas of Cortes, Comayagua, Yoro and Choluteca being heavily threatened, which is bad for investment in the agricultural sector, there are also invasions of residential areas and that is unfortunate, if this is left unchecked, the country will not be a good destination for investment. "

More on this topic

Honduran Companies Migrate to Mexico and Nicaragua

March 2013

Harassment and a business climate of animosity in the country has forced 25 Honduran companies migrate to Mexico and Nicaragua.

Latribuna.hn reports that "15 of them moved to Nicaragua and the rest to Mexico to the Yucatan area, because they have found better conditions to invest and grow, therefore, the National Association of Industrialists (ANDI), is anlaysing setting up branches in these places in order to continue serving its members. "

Honduras: Businessmen Recommend Investing in Nicaragua

May 2012

Amid complaints of government harassment of private enterprise, its noted that in Nicaragua the costs are lower and "there are not too many obstacles."

Given some recent actions and tax proposals by the government of Honduras that have note been well received by employers due to their potential impact on business competitiveness, the president of the National Association of Industrialists (ANDI), Adolfo Facussé, is advising entrepreneurs to invest in neighboring countries, pointing in particular to Nicaragua.

Insecurity Affecting Honduran Investments

August 2011

Some companies are moving their offices to other countries in the region and others are abandoning the idea of settling up in the country because of insecurity.

So said the president of the Chamber of Commerce and Industry of Tegucigalpa (CCIT), Aline Flores, in light of the revival of agrarian conflict in the Lower Aguán region, requesting swift action by the government.

Honduran Agricultural Project Halted

September 2010

San Joaquín valley investors have decided to suspend a business project in Honduras.

The investors have stated that the reason for the interruption is the country's legal insecurity, Carlos López Urquía told members of Honduran industry association, Andi.

Elheraldo.hn reports further comments from the Andi representative saying that, "Honduras is on stand by while El Salvador and Guatemala are also being reviewed since these countries depend on judicial security in order to enter the country".

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