by Mark N. Spencer

Cacao is a plentiful resource in Nicaragua and has been for thousands of years. Surprisingly, this major precursor for chocolate has yet to put Nicaragua on the map as a major manufacturer of chocolate.
A pair of Dutch nationals now living in the verdant, scenic, cool central highlands two hours northeast of Managua may be changing all that. (more…)

by Nick Cooke
How much wood would a woodchuck chuck, if a woodchuck could chuck wood? Well, if it’s a Nicaraguan woodchuck, it would be quite a bit given this country’s relative abundance of tropical forests and all the varieties of trees in them. This is still so, despite rampant deforestation over the last half century.
But forget about just chucking wood: do something with it. And that is exactly what the people at Simplemente Madera (Simply Wood) are about. Setting an example for taking advantage of the potential offered by Nicaragua’s forests, they combine it with a business attitude that is respectful of the environment and the local communities that live in them.
Furniture manufacture and processing lumber for building materials is an obvious way to go in this country. In recent years, fresh investments are being made in an industry that is a natural.
Between the Waves talked with Matthew Falkiner, a principal partner in the company called Simplemente Madera. This company is setting an example for others in terms of creating synergies and in using Nicaragua’s renewable resource of wood wealth in a sustainable way.

by Alec Trihzity

Living in the countryside has its attractions for many: bucolic peaceful surroundings, clean air, wind rustling through trees, sunshine painting shadows on your patio. But few really want to truly rough it at night with just a kerosene lamp and candles with which to read the Farmers’ Almanac. Most of us want to live with the conveniences of modern life, like a fan on those hot summer nights that happen all year round in these latitudes.

Sometimes, the nearest established “normal” electricity is miles away from the homestead and the cost involved in stringing up power lines and a transformer can be prohibitive. Meanwhile, the price of the electricity from the system is steadily increasing, the flow of juice is sporadically interrupted, sometimes for hours at a time, and surges and brownouts damage many appliances.

Between the Waves talked with Max Lacayo, the Sales Manager for ECAMI, a company specializing in energy alternatives for homes and businesses. Asked about the prospects for alternative energy here in Nicaragua, he smiles and says, “We think they are very good. There is increasing awareness of the need to implement alternative energy systems and the electricity grid in Nicaragua shows no signs of a feasible solution being reached in the medium term.” Alternative energy sources are a good and reliable solution.

by Mike Newton

Insurance talk? It is a dry subject, one that will make most want to reach for a pillow. However in a country where “lead floats and cork sinks,” this seemingly mundane subject can present surprises and in insurance, surprise is usually a dirty word. Although the nuances and peculiarities of Nicaraguan insurance are not as straightforward as one would hope; some basic knowledge will help you get on the right path. When shopping for insurance for your family, Nicaraguan home or car, it is wise to keep in mind that many of the rules are not the same as at home. Knowing where some of the pitfalls are and how to avoid them is the focus of this article

by Rachel Lewis

One of the delightful things about Granada is the spirit of hope and creativity one can sense in the busy streets and parks.  People from all walks of life pass through the Parque Central in the center of the town. Here lovers stroll, children play, vendors sell their wares, locals and tourists alike enjoy the food and fresh juices in the cafes and old folk sit on the shady benches greeting passing friends.

One of the many handicraft stalls is selling truly local wares. A group of women in the small pueblo of La Prussia on the outskirts of Granada has banded together to help solve some of their problems, both economic and social. What started as a simple chat one morning between five young mothers has rapidly grown into the basis for a successful co-operative micro business.

by Nick Cooke

World prices for crude oil and its derivatives are up twice what they were a decade ago, for a multi-dimensional plethora of reasons. Big China, since reintegrating Hong Kong and Macao, is active in petro-market futures in order to secure its energy needs through the early part of this century. Pessimistic pundits prognosticate prices of up to US$150-a-barrel before this 2-double-O decade ends.

The recent protests that resulted from bus fare increases highlight the need to address looming concerns over increased energy demands and fuel costs.

In addition to transportation concerns, 80% of Nicaragua’s electricity is generated by burning fossil fuels.  Besides insufficient funds to purchase these fuels, capacity to generate adequate supplies of electricity is also a cause for immediate future concern.

Most of the remaining 20% of electrical production is produced from geothermal sources.

by Rebecca Love & Mike Sabine

John-Marc and Janice Gallagher lived in Tamarindo, Costa Rica where they ran a successful real estate management business.  After five years running the business, they decided to sell up and come to Nicaragua.  Business in Tamarindo had become too much like life in the United States, something they had moved down here to get away from.  They set up Granada Property Services (GPS) two years ago.

I asked them exactly what the business involves.  The demand comes from people who buy properties here, but do not want to live here full-time.  Often, people remodel their homes here, and so renting the properties out is a great way of maximizing their investment. “Maintaining and renting properties is an excellent advantage when it comes to selling a house, as the buyer can see that it has been well-maintained and is turnkey ready,” said John-Marc.  The owner will state when they would like to use the house, and the rest of the time, the house is available for rent.  Every time GPS find a tenant for the house, the owner is informed.

by  Penny  Hurlbuck

As part of Nicaragua’s ongoing efforts to make tourism a cornerstone of the national economy, a new tax incentive driven tourism investment bill will be presented to the national legislature in the fall session. Patterned on tax incentive financing (TIF) laws common in the United States, the bill allows investors to finance 70% of tourism-based projects by the sale of bonds which are in turn repaid over time by money that would otherwise have been paid to the government as taxes. The other 30% must be funded by the project investor. The new law is called the Tourism Investment Bond program (BIT).

The bill specifies the use of undeveloped land which now has no existing infrastructure and therefore no tax base. The diverted tax money would be the 15% central government IGV sales tax and Rental Tax (IR); applicable local taxes would still be paid.

by J. Hanson

Lacking the colonial charms of Granada and the ocean views of San Juan del Sur, Managua is well off the tourist trail where expatriate entrepreneurs tend to set up shop.  Located atop a cluster of geological fault lines and consisting of a confusing maze of nameless streets and addresses that often begin with “de donde fue…”  (referring to a landmark that no longer exists, and was possibly destroyed in the 1972 earthquake), Managua is like no other city in the world.   

The sprawling capital city is home to over one million Nicaraguans, and a sizable chunk of the foreign expatriate residents who work for embassies, development cooperation agencies, and non-governmental organizations.  It’s also the country’s nerve center for government, commerce, finance, media, international relations, and higher education.  In short, Managua contains some deep pockets and cosmopolitan consumers eager for new options, presenting a ripening opportunity for entrepreneurs in the dining and entertainment business.  What does it take to make it in the big city, especially as a foreigner?  Three expatriate owner-operators of successful small businesses – a bar and two restaurants – share their experiences, insights and advice.

by J. Hanson

When H.C. Kang arrived in Mexico to start up operations for a Korean textile firm, his first move was to get help from the government agency charged with helping foreign investors.  Three years later, when he was hired to check out Central America for the US-based Popular Textiles, he tried to find the Nicaraguan equivalent. He couldn’t find one. He came to Nicaragua anyway, at the invitation of a Zona Franca industrial park developer. But by the time Kang’s plane landed in Managua, the developer’s project had been put on hold. Despairing of what to do with his guests, the would-be developer dropped them off at the office of ProNicaragua, an investment promotion agency, bringing Kang right to the door of the agency for which he had been looking.