Nicaragua’s free zone sector continues growing

Feb. 18, 2011 - Nicaragua’s free zone sector continued showing a dynamic growth during 2010, registering record-setting exports of over US$1,500 billion, according to preliminary statistics from the National Free Zones Commission (CNZF, for its acronym in Spanish). This figure represents a 27 percent growth when compared to the US$1,233 million exported in 2009.

Between 2001 and 2010, total free zone exports have grown at an annual average rate of 21 percent.

In 2010, free zone exports were led mainly by the textiles and apparel industry, which represented 64 percent of total exports and reached US$1,013 million. Autowire harnesses and agribusiness were the second and third leading industries, with exports of US$313 million and US$176 million, respectively.

The recovery of international markets during 2010 helped boost the sector’s activity and generated interest of foreign companies looking for destinations that offer the ideal conditions to successfully establish manufacturing operations.

In terms of employment, the sector registered nearly 85,000 people working in industries such as textiles and apparel, call centers, agribusiness and autowire harnesses. The number of people employed in the sector grew by approximately 19 percent when compared to the nearly 71,400 people working by the end of 2009. Of the total number of employees within the sector, 55 percent are women, demonstrating that free zone promote equality of gender and work opportunities for women.

Additionally, various initiatives led by the Government of Nicaragua have also contributed in the development of the free zone sector. One of these initiatives was the opening of the Free Zones One Stop Shop, whose objective is to facilitate business procedures for companies operating within the sector and foster their development.

Another major achievement was the signing of a tripartite agreement between the Government, union labors and the private sector to protect jobs within the Free Zone sector by establishing minimum wage increases up to 2013. This agreement offers investors the predictability factor and allows them to more effectively develop their company’s financial plans.

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