General%20information%20for%20investing%20in%20Nicaragua

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General%20information%20for%20investing%20in%20Nicaragua

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Title: General%20information%20for%20investing%20in%20Nicaragua

1
General information for investing in Nicaragua
2
Nicaragua
3
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

4
Nicaragua has beach property
352 Km of coastline on the Pacific
5
Nicaragua has lake property
10,333 square km of lakes and lagoons
6
Political climate

Two major political parties
PLC
FSLN
President Enrique Bolaños
Term 2002-2006
Economic Stability

7
Cellular service

BellSouth, PCS and Enitel operate cellular phone
networks.
Average local cost is .26/min.

8
Internet access

Several companies offer dial-up, cable, radio and
satellite services.
Largest ISPS are IBW, CABLENET and TMX.
Monthly fees range from 20 for basic dial-up
connections to over 500 for satellite services.

9
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.

10
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

11
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

12
Economic indicators

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

13
Principal growth sectors

Tourism
Commerce
Construction
Telecommunications
Agriculture
Textiles

14
Investments
Recent significant investments include
Metrocentro Shopping Mall in Managua Plaza Inter
Shopping Mall in Managua La Colonia
Supermarket Hotel Intercontinental Managua Hotel
Montelimar Holiday Inn Plaza Intercontinental Hote
l Princess Legends Hotel Expansion of
International Airport Highway System Telecommunica
tions
15
Major foreign investors
16
Tourism

112.5 million market
Will eventually overtake coffee as leading hard
currency earner

17
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 US65 million.

18
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

19
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

20
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 investors right to own property
and establish business enterprises as they wish.
100 foreign ownership is allowed, no requirement
to have a local partner.

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