The Caribbean of Nicaragua and its investment opportunities
- 22 September 2021
This area is characterized by having a great development potential due to the dynamism and advantages offered by its different economic sectors
Nicaragua’s Caribbean Coast represents around 46 percent of the national territory, and it is divided into two autonomous regions known as Autonomous Region of the North Caribbean Coast (RACCN, for its acronym in Spanish), and Autonomous Region of the South Caribbean Coast (RACCS, for its acronym in Spanish), which are governed under the Autonomy Law (Law 28), in accordance with the Political Constitution.
This area is characterized by having a great development potential due to the dynamism and advantages offered by its different economic sectors, among which the following stand out:
• One of the activities with the greatest potential is forest plantations, given that the Caribbean Coast represents more than 80 percent of the country's forest area, which includes 37,394 km² of land suitable for timber plantations and high commercial value as mahogany, laurel, and teak.
• The fishing sector is another of the most relevant for the Caribbean Coast, where its more than 551 km of coastline represent 70 percent of the national fishing production with great potential in hydrocarbons.
• The agricultural sector, considering that the Caribbean Coast of Nicaragua represents 23 percent of the total agricultural area, and approximately 30 percent of the Caribbean workforce is dedicated to this sector.
• The tourism sector, given that this area is currently one of the best-known tourist regions worldwide, which represents an excellent opportunity to increase not only the number of tourists, but also hotel investors and essential services for this industry.
• The mining sector, given that the area represents 60 percent of the country's mining resources, concentrating around 388 hectares under metallic and non-metallic mining concessions.
• And the service sector, given that the region has bilingual, young and qualified human resources to provide quality services, whether in the BPO, ITO or KPO sector.
Additionally, the Caribbean Coast also has the necessary infrastructure for the development of the area, which represents a significant advantage for the region. In 2019, the first Bluefields-Managua overland route was inaugurated, linking the Caribbean Region with the Pacific Region, which adds to the approximate 2,415 km of rural roads and 157 bridges that have been built and rehabilitated. The area also has three ports, including the Arlen Siu port, which is considered Nicaragua's main access route to international markets in the Caribbean and the east coast of the United States and has an operating airline, La Costeña (a subsidiary of Avianca) which currently provides air transportation services between Managua and the Caribbean Coast. By 2022, the construction of a deep-water port in Bluefields is projected to begin, which will connect Nicaragua's maritime transport with the Caribbean countries.
All of the above provides a significant competitiveness to the area, which is in turn highly valued by investors, allowing the establishment of successful companies; such as MLR company that carries out teak and cocoa plantation operations, and Extraceite with the processing of palm oil.
The Autonomous Regions of Nicaragua are home to 938,224 people, which represents 15 percent of the country's total population, making it the second most populated region in Nicaragua, after the department of Managua. Most of the indigenous and Afro-descendant peoples reside in this region of the country, who enrich and contribute significantly to development with identity.
This combination of natural and historical riches, cultural diversity and geographical position allows the Nicaraguan Caribbean Coast to make a substantial contribution to the country in social, cultural, political, and economic terms, still having a great potential to develop.
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