Honduras is a middle income country as documented by the World Bank and its per capita income is estimated to be slightly above 600 US dollars. Its growth in terms of economy has averaged at 7% per year and this is very high compared to other countries, however, even with such growth, half of the country’s population leaves below the poverty line.
Businesses thrive in an environment of peace and tranquility, this two are however bi-products of the politics of a country as they are directly related to the day to day running of a country. Over and above that, foreign investors will not put their money where there is no peace for the reason that, countries that have fallen politically have done so with all the investments. To illustrate are countries such as, Syria and Iraq.
Honduras political climate has not all been rosy, to illustrate, a democratically elected president was removed from office in 1963, and in the same line another coup was also executed with success in 2009. In an attempt to restore political dignity in the country, President Juan Hernandez was elected into office in the year 2014. President Juan came with a master plan dabbed 20/20 program. The platform is a social improvement program which aims to create 600,000 jobs to Honduras people within a span of five years. This is expected to ensue as a consequence of growth that is projected to unfurl in the following major sectors of the country, tourism, manufacturing, agriculture and housing. During the launch of this initiative, President Juan recognized the fact that the 20/20 program was a huge mile to cover through local endeavors alone and therefore his emphasis on the necessity to promote foreign investments in the country. Moreover, President Juan is very concerned with the country’s mineral resources and has been on the front in promoting their exploration.
Honduras has numerous trading agreements with different countries, something that has made trading very easy, to illustrate, Honduras trade agreement with the US has seen an estimated one million people reside in USA. In an attempt to further promote foreign investment, President Juan held a meeting with International business leaders in Dallas September this year in which he elaborated the advantages of investing in Honduras. This meeting was successful for the reason that some multinationals opened some branches thereafter.
The decrease in crime levels in Honduras has also played a significant role in promoting a conducive environment that investors require; this has been achieved through collaborative efforts of the police and the armed forces. This has enabled people to open there businesses without any fear of theft and vandalism.
To conclude, it is imperative to note that, Honduras is a conducive place to do business in; legal challenges are few making it very easy to register and to run a business, in addition, tax levels are also friendly compared to other countries, over and above that, the fact that Honduras has a relatively young and large population means that there are many customers or consumers of products. A good case point is the success of Guildan, a cloth manufacturing company that is making huge profits in Honduras.