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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
                   Bluefields
                   Puerto Cabezas
Nicaragua has beach property




   352 Km of coastline on the Pacific
Nicaragua has lake property




 10,333 square km of lakes and lagoons
        Political climate
 Two major
  political parties
      PLC
      FSLN
 President
  Enrique Bolaños
      Term 2002-2006
      Economic
       Stability
      Cellular service

•   BellSouth, PCS and Enitel operate
    cellular phone networks.
•   Average local cost is $.26/min.
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.
           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 Cabezas
    and San Carlos.
•   NatureAir runs daily flights
    between Granada, San José
    and Liberia in Costa Rica.
           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
Economic indicators
            Gross Domestic Product
             (GDP) $2.45 billion (locally
             produced)
            Estimated 2002 Real GDP
             Growth 3.5%
            Low growth due to the end
             of Post Hurricane Mitch
             construction boom and
             presidential elections
            Inflation 3.7% estimated
Economic indicators
         •   Exports US$ 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
Principal growth sectors

  •   Tourism
  •   Commerce
  •   Construction
  •   Telecommunications
  •   Agriculture
  •   Textiles
        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
                 Hotel Princess
                 Legends Hotel
                 Expansion of International Airport
                 Highway System
                 Telecommunications
Major foreign investors
                Tourism
•    $112.5 million market
•    Will eventually overtake coffee as leading hard
     currency earner


140%
120%
100%
80%
60%
40%
20%
    0%
         1996 1997 1998 1999 2000 2001 2005
      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.
       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
         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
             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.

				
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