Formulating a National Investment Promotion Strategy
The Central American nation is moving forward with the formulation of an Investment Promotion Strategy for the purpose of improving its capacity to promote Honduras as an investment destination. The plan is being led by the National Investment Council (CNI) in coordination with a group of technical specialists from the European Union (EU), who will assist Honduras in defining its value proposition and identifying priority sectors as part of the process.
Authorities and government representatives from Honduras understand the need to position the country as a strategic investment destination among investors worldwide. They have also identified the need to create an orderly process for carrying out actions related to promoting Honduras as an investment destination.
The National Investment Council has established alliances with key sectors of the public and private productive apparatus, as well as multilateral organizations, to begin developing an orderly mid and long-term roadmap with the objective of structuring Honduras as a reliable investment destination.
Workshops Bring Key Economic Actors Together
From March 4th to 6th, the CNI hosted working sessions attended by representatives of important sectors from both Tegucigalpa and San Pedro Sula. These workshops were planned with the purpose of jointly analyzing Honduras’ potential from an investment standpoint and defining the country’s strategy to position Honduras as an investment destination.
Participants in these workshops represented the following:
- Government institutions and ministries
- The private sector
- Productive sectors associations
- International cooperation entities
In total, there were 92 attendees representing 63 companies and institutions involved in creating Honduras’ new investment strategy. This showcases the level of interest that exists among Honduras’ economic actors to improve the perception of Honduras as an investment destination.
International Technical Support from the European Union
The workshop participants were joined by an international team of specialists led by Ramón Tejeiro, Silvana Torres, and Susana Casablanca, who facilitated sessions with the technical team of the National Investment Council (CNI). Topics discussed during these meetings centered around the identification of opportunities, challenges, and strategic opportunities.
These workshops are part of the ongoing collaboration between Honduras and the European Union. In this case, the project ties into the Global Gateway initiative led by the EU.
Global Gateway seeks to promote sustainable investment projects as well as economic development through partnership programs.
The initiative places special focus on promoting investments that seek to provide long-term value as well as ensure the environmental sustainability of partner countries.
“The Global Gateway strategy seeks to accelerate sustainable and viable projects, prioritizing quality, transparency, and environmental care,” said Ramón Tejeiro.
Competitive Advantages of Honduras as an Investment Destination
Honduras boasts several advantages that make it an ideal destination for companies looking to expand their operations throughout the Americas.
Among the main advantages discussed during the workshops are:
- Centrally located within America
- Access to two oceans through logistics corridors
- Various natural resources
- A relatively young workforce
Manufacturing and Export Opportunities
Honduras is also looking to highlight specific sectors in which it has competitive strengths. During the workshops, multiple sectors were identified as priorities for attracting investment.
Key sectors for investment mentioned during workshop sessions:
- Agroindustry
- Electricity
- Transportation
- Manufacturing
- Tourism
- Business services
An investment promotion strategy should identify sectors in which the country has a comparative advantage. By positioning these sectors as pillars of economic development, it will be possible to attract investments that create jobs and contribute to the growth of exports.
Strategic Pillars to Strengthen Investment Promotion
To accomplish this, the CNI has identified 5 pillars that will help strengthen the position of Honduras as an investment destination. They are as follows:
- Promote Honduras internationally as an investment destination
- Prepare bankable projects
- Establish better coordination with institutions
- Facilitate access to financing
- Ensure the business environment is attractive and consistent
Agriculture as a Strategic Sector
During the workshop sessions, the topic of agriculture was discussed at length. Santiago Vélez, representative of the Inter-American Institute for Agricultural Cooperation (IICA), pointed out that this sector is strategic for Honduras’ investment portfolio.
“It is a sector that not only helps us achieve food sovereignty but also allows us to generate exports and employ Honduran citizens,” said Vélez.
Companies interested in investing in Honduras need to know about specific projects they can be involved with. Santiago Herrera, Manager of Economic Policy at COHEP, advised that we need to provide clear and viable projects to catch the attention of investors.
“Investors want to see projects prepared by the country, so they know what they would be potentially investing in,” said Herrera.
Infrastructure and Connectivity Improvements
Improving Honduras’ territorial connectivity is essential for sectors such as tourism. Juan Fernando Carranza, highway coordinator at the Secretariat of Infrastructure and Transportation (SIT), explained that by improving the country’s roads, it could open up more opportunities for tourist attractions and development.
“The construction of highways not only improves the integration of producers with their markets but also allows us to attract tourism through improved access,” said Carranza.
Construction Sector and Employment Opportunities
The construction industry in Honduras recognizes the importance of bringing more investment into the country. David Hércules, representing CHICO, explained that this industry can play a key role in employing Honduran youth.
“When we increase investment in our country, we are not only creating jobs in the construction industry but across the entire economy,” said Hércules.
Tourism as a Driver of Economic Growth
Representatives from the Tourism sector had the opportunity to share their perspectives on positioning Honduras as an investment destination. Aracely Alvarado, representative of the Honduras Convention and Visitors Bureau, mentioned that increased tourism brings numerous benefits to the country.
Tourism takes advantage of other sectors such as transportation, hospitality services, and more to further drive economic activity.
“We have to continue improving our efforts to position Honduras as a tourist destination,” said Alvarado.
Better air connectivity was mentioned as an important factor to increase tourism. Airlines are often the first point of contact that foreigners have with Honduras and other countries around the world.
For this reason, improving the country’s airport infrastructure and air connections to international destinations is also part of the strategy to position Honduras as an investment destination.
International Promotion and Investment Outreach
As part of the strategy to position Honduras as an attractive investment destination, CNI and the EU team will continue to work on international promotion activities. Some of these activities may include:
- Investment forums
- Business alliances
- Investment missions to key financial centers
- Meetings with institutional investors
These types of activities will allow Honduras to make its voice heard in the most important investor platforms around the world. By telling Honduras’s story, the country aims to successfully position itself as a competitive and reliable investment destination.