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Nicaragua, The Ideal Country for Teak Investment

Nicaragua, The Ideal Country for Teak Investment
September 24, 2015 [email protected]

Currently, Nicaragua contains more than 3.5 million hectares of solid forestry potential. Of that, about 1.9 million hectares is economically valuable, natural forest suitable for sustainable management projects.

The country has more than 1.8 million hectares of land suitable for forestry plantations of timber species like real cedar, mahogany, pochote, teak, eucalyptus, and melina, among others. There are major companies dabbling in this sector right now.

As stated by Ivo Gombala, Deputy Head of the EU Delegation: “Nicaragua is one of the countries with a great potential for forestry development in Central America. It has large forests as well as a large availability of land adequate for the establishment of forestry plantations. The development of an efficient and sustainable forestry sector is a profitable alternative for real estate owners. In that sense, the European Union can give direct benefits, through this project, to the small and medium-sized businesses, estates, associations, and guilds of the forestry sector.”

Cost Competitive Workforce

Nicaragua is characterized by a young, skilled, and productive labor force. The agricultural sector is the main source of employment in Nicaragua. In this sector, the majority work in the livestock and agriculture industries, with the remainder working in fisheries and forestry.

The country has a strong university system and many technical education centers related to business and agro-forestry. A large pool of skilled human capital exists for middle and upper management positions. There are around 5,000 new university graduates annually, with degrees in business management, agricultural engineering, forestry engineering, zoology, agribusiness, biology and veterinary studies, among others.

Nicaraguan labor costs are the most competitive in the region, as shown in the following chart:


Generous Fiscal Incentives

Nicaragua’s government offers generous tax incentives for export-oriented sectors such as tourism, mining and forestry. Some of these incentives include free trade zones, which allow the duty and tax free entry of goods into the nation. Other benefits include tax free, domestic purchases of industry-related goods.



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