Investing in Nicaragua: Fishing & Aquaculture

Nicaragua is considered, “the land of lakes and volcanoes”. This is because of the considerable number of lakes and lagoons that exist in the country. In fact, one of those lakes, Lake Nicaragua (Cocibolca) alone is the largest lake in Central America, being about 160 kilometers long and 75 kilometers wide. Also, there is a considerable extension of coastline which corresponds to the Pacific and Caribbean oceans.

Such characteristics have resulted in Nicaragua being an ideal prospect for Fishing and Aquaculture investments. With that in mind the government has provided incentives for this industry that a definitely worthwhile in considering.

Why invest in Fishing & Aquaculture?

Aquaculture is a great way for qualified investors who are not risk averse to diversify part of their portfolios away from traditional investments. While investing in aquaculture can be a tricky business, sophisticated investors who take the time to learn the business and the potential pitfalls may be well rewarded.

While fish farming or aquaculture may appear highly technical to many qualified investors, it’s still a business at its core and from this perspective it’s really no different from any other alternative investment that may be under consideration.

Demand for seafood continues to grow, while supply has been constrained, which has led to a substantial increase in prices since the early 2000s. While a growing aquaculture industry can meet some of this demand, internationally, marine fisheries still generate nearly 60% of fish sold to consumers (EKO Asset Management Partners, 2014). There will continue to be a large market for wild seafood, both to serve basic food security needs in less developed countries and to serve regions where a premium is placed on wild, sustainably caught fish (World Bank, 2013). Investments that increase the supply and sustainability of this commodity are, therefore, both necessary and potentially profitable.

Specialized Incentives for Fishing & Aquaculture

If you are considering investing in Nicaragua especially in this sector, please keep in mind the following benefits:

• Suspension or reimbursement of the taxes that levy fuel when purchased to be used to produce the products that are either to be used internally or exported outside of the country.
• Income tax credits can be applied towards the payments of concessions.
• Government incentives to be given to banks to facilitate loans.