We have covered Belize and the Honduras in the news recently. Here is a story as we move down the map to Nicaragua, where I have friends developing in what I have always considered to be a challenging environment to say the least. I still can’t get the picture of these three amigos out of my head,
They are having such a good time together
Nicaragua’s President Ortega, Venezuela’s President Chavez and Iran’s President Ahmadinejad shake hands before Ortega’s swearing-in ceremony in Managua. Welcome back Camondante!!!
So despite the history and present conditions in Nicaragua, they are still seeing some foreign investment capital albeit cautious and well insured.
The announcement of a $27 million guarantee for an agribusiness project in Nicaragua demonstrates the harsh reality of the higher costs we pay for being who we are. The good news is: A huge investment to develop a sustainable cultivation of bamboo become feasible, in terms of external risk management, due to a international guarantee.
The bad news is: This confirms that in some Central American countries additional costs must be paid – insurance premiums – , which in other countries, competitors in the global economy, are simply not required.
A statement of the Multilateral Investment Guarantee Agency (MIGA) reads:
MIGA supports sustainable bamboo plantation in Nicaragua
The project creates jobs, improves the land and mitigates the effects of climate change
Washington, January 29, 2013. The Multilateral Investment Guarantee Agency (MIGA), the institution of the World Bank Group’s which issues insurance policies for political risk, today announced its support for an agribusiness project in Nicaragua. The project’s impact on the local economy is already evident, for example, in terms of employment generation, land improvement and upgrading of skills of workers.
The investment guarantees, for U.S. $27 million, insures a capital investment made in Nicaragua by EcoPlanet Bamboo Group (EPB), a company based in the United States, for a period of 15 years against risks of expropriation, war and civil unrest.