general information for investing in nicaragua
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General information for investing in Nicaragua. Nicaragua. Nicaragua at a glance. Population 5,210,000 Population growth rate 2.8% Fifteen departments and Two Autonomous Regions Capital City: Managua (pop. 1 million) Other Major Cities: Granada Leon Masaya Matagalpa Jinotega - PowerPoint PPT PresentationTRANSCRIPT
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General information for investing in Nicaragua
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Nicaragua
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Nicaragua at a glance
Population 5,210,000 Population growth rate
2.8% Fifteen departments and
Two Autonomous Regions Capital City: Managua
(pop. 1 million) Other Major Cities:
Granada Leon Masaya Matagalpa Jinotega Bluefields Puerto Cabezas
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Nicaragua has beach property
352 Km of coastline on the Pacific
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10,333 square km of lakes and lagoons
Nicaragua has lake property
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Political climate
Two major political parties PLC FSLN
President Enrique Bolaños Term 2002-2006 Economic
Stability
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Cellular service
• BellSouth, PCS and Enitel operate cellular phone networks.
• Average local cost is $.26/min.
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Internet access
• Several companies offer dial-up, cable, radio and satellite services.
• Largest ISP’S are IBW, CABLENET and TMX.
• Monthly fees range from $20 for basic dial-up connections to over $500 for satellite services.
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Air transportation • Managua International Airport
has recently been expanded to double its original capacity.
• Daily non-stop flights to Miami via American, TACA and SANSA. Continental offers daily non-stop flights to Houston. Direct connections to Los Angeles also available.
• National flights are available for travel to Corn Island, Bluefields, Puerto Cabezasand San Carlos.
• NatureAir runs daily flights between Granada, San José and Liberia in Costa Rica.
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Banking system• 70% of all deposits are in U.S. Dollars
• Residency or local property ownership is required to open a personal bank account
• Six banks, all offer international financial services
– BAC (Banco de America Central)– BANCENTRO (Banco
Centroamericano)– BDF (Banco de Finanzas)– BANEXPO (Banco de Exportacion)– BANPRO (Banco de la Produccion)– BANCO CALEY DAGNALL
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Economic indicators Gross Domestic Product
(GDP) $2.45 billion (locally produced)
Estimated 2002 Real GDP Growth 3.5%
Low growth due to the end of Post Hurricane Mitch construction boom and presidential elections
Inflation 3.7% estimated
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• Exports US$ 770.4 million– Coffee– Beef– Seafood– Sugar
• Major trade partners
– U.S.– Western Europe– Central America
• Working population 1.85 million
– Rural based– Largely unskilled
Economic indicators
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Principal growth sectors
• Tourism• Commerce• Construction• Telecommunications• Agriculture• Textiles
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Investments
Metrocentro Shopping Mall in ManaguaPlaza Inter Shopping Mall in ManaguaLa Colonia SupermarketHotel Intercontinental ManaguaHotel MontelimarHoliday InnPlaza IntercontinentalHotel PrincessLegends HotelExpansion of International AirportHighway SystemTelecommunications
Recent significant investments include: Recent significant investments include:
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Major foreign investors
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Tourism
• $112.5 million market• Will eventually overtake coffee as leading hard
currency earner
0%
20%
40%
60%
80%
100%
120%
140%
1996 1997 1998 1999 2000 2001 2005
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Tourism Incentives Law
Law 206• Designed to promote the growth of
tourist activities.• Provides tax breaks for
investments in:– Hotel services industry– Food, beverage and
entertainment services– Tourism infrastructure– Arts and craft facilities
• Over 65 projects have been approved, under this law, value US$65 million.
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Construction costs• Cost of building is approximately $35-$50
per square foot.• Most construction is of cinder block, cantera
block, cement, and tile.• Estimated sample costs:
-Concrete $4.00/bag
-Cinder block $.30/each
-Cantera block $1.00/each
-Steel Rebar $18.00 per 100 lbs
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Labor information• Average monthly wages:
– Manufacturing $127.70– Transportation $199.63– Construction $113.99– Agriculture $81.47– Services $91.24
• Work week– 6 days/45 hours
• 30 days vacation for 12 months worked
• All employees receive 13th
month Christmas Bonus
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Foreign investment Law 344
• Assures that foreign and domestic investment receive the same treatment.
• Eliminates restrictions on the way in which foreign capital can enter the country.
• Recognizes the investor’s right to own property and establish business enterprises as they wish.
• 100% foreign ownership is allowed, no requirement to have a local partner.