BUSINESS & ECONOMICS |
| INVESTMENT
OPPORTUNITY |
| Monday, March 27, 2006 Online Edition 11 | ||
Honduran economy strikes black gold
A group of businessmen from the United Arab Emirates have put forward
plans to invest in the construction of an oil refinery in Honduras.
Current proposals involve building in the bay of Trujillo, Colón.
Henry Arévalo Fuentes, the manager of DIPPSA, asserted that a
refinery of this size would guarantee the supply of fuel and bring about
a boom in the chemical industry. In the coming weeks the Arab investors
will visit the country and meet with representatives from SERNA (Department
of Natural Resources and the Environment). During this interview the
requirements in relation to minimizing environmental impact will be
made clear and the businessmen asked to comply in order to gain permission
to proceed.
The Guatamalan fast food chain 'Campero' is set to join forces with
the Honduran group 'Intur' with a view to increasing its presence in
the country. 'Campero' already has eleven establishments in Honduras,
and this strategic alliance will increase that figure to a total of
twenty. The company is the biggest operator of such franchises within
Central America. 'Intur', which controls the country's touristic investments,
also manages a variety of other fast food outlets including Burger King,
Popeyes and Little Cesars among a number of others.
The government hopes to end the financial year with a fiscal deficit
of 4,000 million lempiras. This is an achievement both in comparison
to the fiscal deficits of the last ten years and with the agreement
made with the FMI (International Monetary Fund). Last year the deficit
closed at 3.1% of the GDP at the end of the term whereas twelve months
on the Secretary of Finance, Hugo Noé Pino has revealed that
it will be just 2% of the GDP. Noé Pino also added that targets
for the forthcoming financial year have been agreed with the FMI.
The highly successful American company Walmart Stores Inc has now further
increased its control on the global supermarket industry. It recently
purchased controlling shares in the leading Central American supermarket
group, CARHCO (Central American Holding Company), now Wal-Mart Centroamérica.
This move has increased its percentage of shares in the company to 51%,
a rise of 18% on the previous year. This will give Walmart control over
three hundred and seventy-five supermarkets in Central America, including
stores in Honduras. Despite acquiring a significant amount of power
in the former CARHCO, representatives from Wal-Mart claim that no drastic
changes will be made; rather a review of how to strengthen relations
with the CSU (Corporation of United Supermarkets) and the Guatamalan
'La Fragua'.
The new administration of the national ports authority has come up with
a project to encourage investment. The renovation of the Zona Libre
area is an urgent necessity and recent talks have promised much; jobs
will be created on a large scale and it is hoped that investment levels
reach those needed to revitalize a flagging economy. |
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Monday, March 20, 2006 Online Edition 10 |
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Congreso gives green light to CAFTA
Tegucigalpa consumes conspicuously for 10% less
Poultry giant with something to crow about
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| Monday, March 13, 2006 Online Edition 9 | ||
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The Holy City of Copan
It seems that every religion has its "Holy City" - a place that holds special significance to that particular faith, belief system, or movement. These wonderful cities provide a spiritual connection to the past and a place where individuals can go to feel closer to something beyond their limited physical existence. They offer a location where people can come together with others of like-mind to worship, pray, meditate, and become better human beings by recommitting to radical teachings of how to better treat each other and thus eventually truly become One. I would like to add the town of Copán Ruinas, Honduras to the list of holy cities. Strange, you might think. "What religion has a unique connection to Copán?" My answer is. "None, if you only think of religion in terms of specific traditions and hierarchical structures designed to pay homage to a deity or deities." I think that all too often religions get way too caught up in their operational aspects. In other words, those things that allow them to thrive as unique entities and remain separate from each other. Most religions have their own set of rules, regulations, and guidelines by which their members are encouraged to abide in order to be deemed members in good standing. This emphasis is unfortunate, in my view, because it misses the point of what those special individuals who inspired the founding of the world's great religions were trying to make. It is the messages of these spiritual masters that were central to their lives. The religions that subsequently sprang up evolved from these new ways of thinking, speaking, feeling, and acting. Over time, they were influenced by various cultures, events, and agendas, which led to different translations and interpretations of the teachings, divisions within the religions and further divisions, hierarchies and sub-hierarchies, and rules and more rules. For me, religion represents two things. First, it represents following the spiritual teachings of someone in whom you trust and believe. These teachings should provide the path toward enlightenment and unity with each other and with the beating heart, mind, and power of creation. Secondly, it represents following these teachings within a community. We humans tend to be happier within communities, and we certainly can accomplish so much more working together. If you allow me to simplify "religion" on my terms, then it is not such a far stretch to conceive of Copán Ruinas as sacred ground. For the past three years, Copán Ruinas has served as the site of an annual pilgrimage by people from all walks of life, various faiths, and different countries. The purpose of the pilgrimage has been to come together as a community to find ways to become more enlightened and learn how to work as One. The ultimate aim has been to better support the poor and underprivileged within Honduran society by empowering them through education, healthcare, and a variety of community building projects. And to do so in a positive spirit of compassion, harmony, and joy. This annual pilgrimage has brought people face to face with others who enjoy giving of themselves to others in need. I sense that these individuals do this for no other reason other than that is what they feel compelled to do, rather than for any promise or expectation of rewards. Somewhere along the line, they have discovered the truth that it is by "emptying oneself" selflessly to others that we become One in the spirit and gradually start to transform the world for the better, starting of course with a little piece of it known as Honduras. It is no small feat for more than 200 people from diverse backgrounds to meet each year for four days and four nights and then leave with renewed energy, confidence, goodwill, and new contacts to continue their work in partnership with the people of Honduras. That is exactly what the Conference on Honduras has accomplished during three conferences in Washington, DC and three in Copán Ruinas. Copán is extremely well suited for this particular kind of gathering. Its proud but humble people, its central park, its coffee shops, its colorful restaurants and hotels, its cobblestone streets, its marketplaces, its river and green mountains exude charm, warmth, something mystical. The place is accessible spiritually. It has the effect of bonding those who visit it, and that is precisely what we seek. It is that effect that, to me, provides meaning to the concept of a Holy City. Several people ask me each year to send them a report of the results, conclusions, recommendations, and expectations of the Conference. When I say to them that there will be no such report, they look puzzled. The results of the Conference lie in the benefits of the relationships that develop from the event. The conclusions are that focusing on education, healthcare, and community building are the right strategy for empowering the people of Honduras and changing the country for the better over the long-term. The recommendations are that those who are helping Honduras should continue to do so consistently, selflessly, wisely, creatively, and with a positive attitude. The expectations are that within one or two generations Honduras will be transformed into a model for other developing countries to emulate. In the final analysis, isn't religion really all about transformation? If you're interested in participating in the next pilgrimage to the Holy City of Copán Ruinas during October 12-15, 2006, see http://www.projecthonduras.com/conference
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Closing the net on Money laundering The Law against Money Laundering, in action since June 2002, has recently increased the penalty for the laundering of funds derived from illicit activities such as drug and people trafficking and kidnapping. Furthermore, legal reforms are pending which will further penalize the laundering of money associated with terrorist activities. Although many companies now possess sophisticated software capable of earmarking potentially illegal transactions involving suspicious funds, in the past 4 years there have been nearly 200 reported cases of money laundering. With the help of the European Union and Oxfam (who donated 9 million euros over three years), women from rural Honduras have begun exporting the coffee they grow to Germany. According to the manager of Oxfam International, Sonia Cano, over a million lempiras' worth of coffee has been exported to Germany after it was grown and processed by the women of COMUCAP, an organization for rural women in the La Paz area. The coffee will be distributed with the aid of a Catholic association and the help of the EU. For the first time in their history, Honduran assembly plants will receive a comprehensive audit at the hands of the Dirección Ejecutiva de Ingresos, or DEI. Armando Sarmiento, head of the DEI, explained: "we are going to the factories because we want to know whether they are making good use of their tax breaks - the State has a right to know these details." The assembly industry generates over 131 000 jobs in the country and in 2005 raised over $2,700 million US in exports.
The USA has changed the laws governing the export of Centro American chilies, including those from Honduras, in order to facilitate commercial interdependence and thus import 31,040 tons annually, at the cost of $1,300 million US. The change in the law comes with the objective of "permitting the importation of certain types of chili cultivated in Honduras, Guatemala, Costa Rica, El Salvador and Nicaragua", clarified a statement released by the American Embassy in Guatemala.The new law, demanding rigorous quality control, was announced by APHIS, a sub-section of the US Department of Agriculture, and is intended to prevent certain types of pests, such as the Mediterranean fly, from entering the USA.Honduras is one of Centro America's largest exporters of chili, and demand continues to rise. In a deal worth 39,500,000 lempiras, the Honduran company Multifon took control of telephone communications throughout the country. This deal allows Multifon to offer greater coverage in areas of lower population density, where Multifon hopes to expand its services to 150, 000 lines to meet market demand. The Multifon telephony company gained permission to operate the services of telephony from the National Commission of Telecommunications, Conatel. According to Rasel Tome, president of Conatel, "Through this deal, more of the population will be connected, and all business will be conducted with total transparency." |
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Monday, March 06, 2006 Online Edition 8 |
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Demystifying the chamber's secrets
George Reynolds
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Housing for the Middle Classes With an investment of 42 million Lempiras, the Lafise Bank made its first steps last week in the construction of the Cerro Grande housing Project (zone eight), which will provide more than 280 houses in Tegucigalpa. Targeted at the middle classes, with a family income of between 12 and 15 thousand Lempiras, the houses will cost between 177,000 and 193,000 Lempiras.
Hondutel, the company with the monopoly on telecommunications in Honduras, suspended the contracts of three foreign companies and rewrote its agreements with 225 Honduran businesses, through which it will create more than a thousand new jobs. The vice-president of Hondutel explained: "At the moment at Hondutel we are developing a project to give the power back to national business - whereas previously the installation of lines was conducted by foreign companies, we are now awarding this contract to Honduran businesses."
The Honduran Coalition for Civilian Action (CHAC) has made a plea to the executive and legislative powerbase of the country that work in the countryside will be not be compromised by the upcoming Free Trade Treaty. The coordinator of the project, Trinidad Sanchez is concerned that there is not sufficient legislation to safeguard the nation's interests and stated "we are demanding that laws are brought into force that which will protect the country's economy but will also support the companies run by peasants, women, children and all the other industries that represent the enormous potential of this country that is currently going unexploited."
The National Commission for Banks and Insurance is set to cancel the permit originally given to the insurance company Danmark International Health Insurance for failure to begin operations by the agreed start date. In April last year, the Central Bank, through resolution 157-4/2005 approved the Danish company's plan to open a branch in Honduras, which Jorge Omar Casco, the company's legal representative, estimated would begin construction in November last year. The company, which has offices in England, France, Spain, and Japan, was unable to start work within the permitted nine months owing to a change of plans on the part of its business partners.
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