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General information for
investing in Nicaragua
Nicaragua
Nicaragua at a glance
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Population 5,210,000
Population growth rate
2.8%
Fifteen departments and
Two Autonomous Regions
Capital City: Managua
(pop. 1 million)
Other Major Cities:
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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
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PLC
FSLN
 President
Enrique Bolaños
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Term 2002-2006
Economic
Stability
Cellular service
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BellSouth, PCS and Enitel operate
cellular phone networks.
Average local cost is $.26/min.
Internet access
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Several companies offer dialup, 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
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Managua International Airport
has recently been expanded to
double its original capacity.
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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.
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National flights are available for
travel to Corn Island,
Bluefields, Puerto Cabezas
and San Carlos.
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NatureAir runs daily flights
between Granada, San José
and Liberia in Costa Rica.
Banking system
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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
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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
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Gross Domestic Product
(GDP) $2.45 billion (locally
produced)
Estimated 2002 Real GDP
Growth 3.5%
Low growth due to the end
of Post Hurricane Mitch
construction boom and
presidential elections
Inflation 3.7% estimated
Economic indicators
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Exports US$ 770.4 million
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Major trade partners
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Coffee
Beef
Seafood
Sugar
U.S.
Western Europe
Central America
Working population 1.85
million
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Rural based
Largely unskilled
Principal growth sectors
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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
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$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
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Designed to promote the growth of
tourist activities.
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Provides tax breaks for
investments in:
– Hotel services industry
– Food, beverage and
entertainment services
– Tourism infrastructure
– Arts and craft facilities
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Over 65 projects have been
approved, under this law, value
US$65 million.
Construction costs
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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
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Average monthly wages:
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Work week
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Manufacturing $127.70
Transportation $199.63
Construction $113.99
Agriculture $81.47
Services $91.24
6 days/45 hours
30 days vacation for 12 months
worked
All employees receive 13th
month Christmas Bonus
Foreign investment
Law 344
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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.