Nicaragua’s safe environment attracts investors

MANAGUA, Nicaragua - March 14, 2014 - PRLog -- Nicaragua’s personal security has gained worldwide recognition, as it was featured in the 2013-2014 Human Development Report, by the United Nations Development Programme (UNDP), as the second safest country in Latin America in terms of homicide and assault rate. The National Police of Nicaragua indicated that the homicide rate in 2013 was of nine per every 10,000 people, while Latin America’s average was of 26 homicides.

Experts have indicated that the high levels of personal security have influenced the annual growth of the country’s Foreign Direct Investments (FDI). According to the General Manager of the Center for Export and Investment in Nicaragua (CEI, for its acronym in Spanish), Roberto Brenes, investors who come to the country have stated that a country’s public safety is one of the main elements to take into consideration when choosing where to invest.

“Nicaragua is a country that, in addition to many other opportunities, has freedom of movement, which allows all actors to move from one department to another in productive areas, and that's obviously quite positive compared to other countries of the isthmus, where transportation from one area to another can be very risky,” said the General Manager of CEI. Brenes believes that it is valid to think that a percentage of the country’s investment can be attributed to public safety.

Additionally, the Partner and Director of the Corporate-Commercial and Transactional Law Firm of Garcia & Bodan, Federico Gurdián, confirmed that public safety is an important factor when establishing a business in Nicaragua. “Some companies were planning to settle in Honduras or the Dominican Republic, but when comparing all factors, the issue of public safety always comes very favorable to Nicaragua when making the decision of where to invest,” stated Gurdián.

Nicaragua’s safety has led to major progress in the country. Last year was a year of growth for the country’s investment, registering US$1,045 million in terms of FDI inflows to the third quarter of 2013, showing a 15 percent increase compared to the same period in 2012. During the third quarter of 2013, FDI inflows were registered in 11 economic sectors. The main sectors included Industry, Trade and Services, Mining, Financial and Telecommunications, which comprised 88 percent of total FDI inflows.

This demonstrates the confidence investors have in establishing their operations in the country, which offers various competitive advantages such as a favorable business climate, solid legal framework, government support and high levels of personal safety.