AVENUES FOR AGRIBUSINESS AND IN-BOND MANUFACTURING
Nicaragua's population of 4 million is concentrated primarily on the Pacific coast, where the agriculture-based economy has traditionally generated most of the country's income.
These lands, with volcanic loam topsoil up to nine feet (2.7 meters) deep, produced the grains, cotton and cattle that supplied the Central American market in the '60s and '70s and allowed Nicaragua to have the highest per-capital income in the region.
These same soils today are sparking an economic revival with non-traditional products such as cantaloupes, peanuts, Soya beans, asparagus and vidalia-type onions for the US. winter markets. Cattle production is rebounding,
as is newly developed hybrid coffee, and there is ample credit for these and other new industries such as shrimp farming. For export manufacturers, Las Mercedes Free Zone - 114 acres (46 hectares) of land bordered by the international airport and the Pan
American Highway - is the center of the fastest-growing industry in the economy. Of the 10 in-bond manufacturing companies located there, eight produce women's ready-to-wear clothing for the US. market, taking advantage of the excellent labor pool availa
ble in the nearby towns and the quota-free status of garments made in Nicaragua.
Fine handiwork and machine embroidery have a long tradition in Nicaragua, and according to the senior production supervisor of Istmo Textiles, the newly hired workers are easier to train than workers in other countries. Th
e lowest lease rates in the region are made further attractive by Nicaragua's moderate year-round climate. Manufacturers can produce without having the added expenses of heating or cooling, although electrical energy and water are available at moderate co
sts.
Taiwan, one of the world's leading international investors, has targeted (central America as a priority investment region.
After five years of suspended diplomatic relations between the Taiwan and Sandinista governments, Taiwanese manufacturers have returned to set up business in Nicaragua's free zone. According to the Taiwanese Ambassador Ki-Tseng Lin, the absence of export
quotas in Nicaragua's a big draw for manufacturers.
The Taiwanese government, which has provided $90 million in loans for stimulating the private sector, is encouraging investments in textiles, real estate and, potentially, agribusiness. Ambassador Lin said his government is committed not only to invest in
Nicaragua, but also in its people through providing training for workers and managers.
An additional attraction for investors interested in Nicaragua is a large, foreign educated management pool. As a result of the change of government in 1990, Nicaragua has experienced a return of talent
that provides the country with new business perspectives and professionals with experience gained at some of the largest US. and European companies.
Their presence also facilitates business transactions within Nicaragua. Bilingual executives are present in almost every business in the country.
A survey conducted by Price Waterhouse in 1992 indicated the following salaries:
Monthly-US$
Nicaragua has no established minimum wage, but according to Carlos Zuniga, marketing director for the Free Zone Corp., garment workers in the free zone earn an average of$0.63 per hour, including social benefits.
Garment workers also earn a full month's pay as a Christmas bonus and one month's vacation, half of which must be taken off-site. There are eight local holidays each year.
Annualy-US$:
General manager: $50,245
Finance manager: $28,362
Sales representative: $17,839
Secretary: $251
Bilingual executive assistant: $650
Data processor: $496
CONTENTS | PAGE BACK | NEXT PAGE | DIRECTORY
Click Here