The National Assembly, with a Sandinista majority, approved this Thursday the Law Creating the Secretariat for the Promotion of Investments and Exportsthrough which it eliminates the Agency for the Promotion of Investments and Exports (ProNicaragua), founded in 2002 with a mixed profile between the private and state sectors, and transfers all its assets to the Executive Power.
The new Secretariat for the Promotion of Investments and Exports was created with the favorable vote of 89 deputies. This entity will be the “legal successor without continuity solution” of ProNicaragua, directed by Laureano Ortega Murillo, one of the nine children of the ruling couple, Daniel Ortega and Rosario Murillo.
“Financial resources, movable and immovable property and any other resource acquired or on behalf of ProNicaragua, must be transferred to the Presidency of the Republic,” ordered the National Assembly.
The transfer of ProNicaragua was an “urgent” request from the Executive Power and it comes four days after the United States Department of the Treasury announced an amendment to executive order 13851 on Nicaragua that allows it to sanction sectors of the Nicaraguan economy that support and provide funds to the “authoritarian regime” of Ortega and Murillo.
“Due to the relevance and impact of capturing national and foreign investment in the national economy, it is necessary for the President of the Republic to have under his control and direct coordination the body in charge of fostering and promoting investments and exports. ”, justifies the creative law.
Investments in Nicaragua
According to the most recent report of the Central Bank of Nicaragua (BCN), in the first half of 2022 the country received 1,042.7 million dollars in Foreign Direct Investment (FDI), 23.4% more than in the same period of 2021 , with the United States as the main economic partner.
In 2021, Nicaragua reached 1,470.1 million dollars in FDI, 52.7% more than in 2020, according to official data.
Regarding exports, Nicaragua reported a cumulative of 5,507 million dollars in the first eight months of 2022, which meant a year-on-year increase of 19.3% compared to the same period in 2021, the year in which total sales abroad reached 6,888.6 million dollars, for a growth of 29.5%, according to the BCN.
Nicaragua foresees a growth of its gross domestic product (GDP) of between 4% and 5% in 2022.
New decentralized entity
The fundamental objective of the Secretariat for the Promotion of Investments and Exports is “attract private investment, promoting foreign trade and national exports of goods and services, fostering a favorable climate for investment and foreign trade”, says article 2 of the new law.
Among the functions of the new decentralized entity are the elaboration of the National Investment and Export Strategy, coordinating direct investment promotion efforts with public and private sectors, and representing the Government of Nicaragua in the signing of any promotion, cooperation and collaboration instrument. .
In addition, promote the implementation of measures to improve Nicaragua’s position as an investment destination and facilitate the growth of national exports.
