The arrival of foreign investment to the west of the country is being promoted, in places where there are already companies interested in developing the potential for metal mining in the area.
The Mining Chamber of Nicaragua projects growth of 5% in exports this year compared to 2015, driven by a rebound in gold prices internationally and investments in the sector.Sergio Rios, director of the union, also attributed the positive growth projection to the approximate 5% achieved in production.
The project aims to create a free trade zone which will offer offshore financial services and related economic activities.
The Nicaraguan government's proposal to create a free trade zone to provide tax incentives to attract financial sector companies and to exported services from there has raised doubts in some quarters, with accusations being made that the bill evokes the concept of a tax haven.
The start of operations by Lala will have a favorable impact on the conditions of production and quality of milk and stabilize the price of milk for producers.
The start of operations of a plant with capacity to process up to 300 thousand liters of milk per day will result in benefits not only for the production sector, which could sell most of the expressed milk, but also force an improvement in the regional dairy market conditions, infrastructure and production practices related to animal feed, sanitary measures, among other things.
The new plant belonging to the Mexican dairy company Lala has capacity to process 300,000 liters of milk per day and will change the Central American dairy market.
Javier Chamorro, Executive Director of the investment promotion agency, told Confidencial.com.ni that "... That means that the production that Lala uses to enter the entire into the Central American market will come from Nicaragua.
The private sector and the governments of both countries have started talks to put into place the partial agreement which came into force in November 2014.
A Cuban delegation composed of 9 representatives from the government and entrepreneurs from the private sector will be visiting Managua with the aim of coordinating with the Nicaraguan government implementation of the agreement, which establishes the possibility of achieving up to 100% of tariff exemptions on some products.
North American entrepreneurs in the footwear sector have emphasized the advantages of the Nicaraguan industry as providers of high heel shoes for ladies.
Surpassing China, Vietnam, Cambodia, Indonesia and Bangladesh and ranking below average in cost of quality leather shoes ($ 3.30 per pair), manufacturing soles ($ 0.43) and the development of a pair women shoes ($ 8.17), Nicaragua has become highly attractive as a destination for industry manufacturers and a candidate for a strong manufacturer and exporter of women's shoes.
There are 285 multinational companies operating in the region, employing more than 87,000 bilingual people.
The figure was revealed by Javier Chamorro, executive director of ProNicaragua, during the Central American Nearshore Summit 2013, which is being held in the Central American nation.
"Costa Rica and Guatemala are the two nations that have attracted the largest number of companies in the outsourcing industry, with a total of 191.
During the first quarter of 2013, foreign direct investment totaled $440.8 million, and if this pace is kept up, the year could close at $1.5 billion.
According to data from ProNicaragua, the sector which contributed the most was industry with $131.6 million and growth of 143% compared to the same period in 2012, followed by the financial sector with $96.5 million and an increase of 36% as well as trade and services with $83.4 million and an increase of 151%. The telecommunications and energy sectors, which are often the biggest contributors, contributed $54.8 and $19.2 million respectively.
In the 2013 edition of the fair, participants closed $14 million in deals, plus $42.6 million in future purchasing intentions.
From a statement by ProNicaragua:
More than $14 million in business deals were signed during LAC Flavors 2013, the highest amount among the five editions of the annual business meeting, an increase of 363% compared to the $4 million conducted in the previous edition.
For this new edition opened in Granada, Nicaragua, more than 1,600 business meetings have already been scheduled between the buyers and suppliers participating in the event.
"Conditions are ripe for this (Lac Flavors) to succeed in the sale and promotion of Nicaraguan products, the abundant quantities and skills of the attendees representing companies interested in agribusiness fills us with satisfaction and demonstrates the motivation in the food sector," said Alvaro Baltodano, Presidential Delegate for Investments.
In what milk processing companies see as a threat, dairy producers are hailing as an opportunity to grow and to enjoy stable prices.
According to an article in Laprensa.com.ni, "the immediate concern of the companies, Centrolac, Parmalat and Eskimo is a lack of clarity over the benefits being offered by the Government to Grupo Corporativo Lala to encourage them to finally decide to invest in Nicaragua, after years of perseverance."
The initiative Finnpartnership's Matchmaking Service will be presented in Nicaragua, a development which facilitates links between companies from developing countries and the Nordic country.
With the help of intermediary services from Finnpartnership, companies and organizations in Finland and developing countries can seek business partners and business opportunities and cooperation.
The Brazilian-owned company is not closing its operations but only reducing production because of less demand from regular customers in Europe.
An article in Laprensa.com.ni reported that "Last week, workers at the company which belongs to the Brazilian group Schmidt Irmaos Calzado, were concerned about the future of the company, due to the reduction in their production lines.
Nicaragua participated in the Latin America Down Under Conference held in Sydney, Australia during May 22nd and 23rd, with the objective of promoting investment opportunities in the country’s growing mining sector
Presenting at the event was Javier Chamorro, Executive Director of PRONicaragua, the official investment promotion agency of Nicaragua.
“Foreign direct investment is now 13 percent of GDP, the highest rate in Latin America, so Australian mining entities coming into our market have a secure investment in an operational, geological and socially positive environment,” he stated, adding that “this is particularly so as our government has set the mining sector as a priority for our country’s development and Australia as a target partner.”
On 13th and 14th June an event entitled "Nicaragua, the Right Step for Footwear Manufacturing" will bring together industry associations, manufacturers of global brands and international buyers.
The global forum for the footwear industry, "Nicaragua, The Right Step” will bring together 30 participants from Brazil, the USA, Italy and Central America.
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