Walmart Investing in Nicaragua

Walmart Store Inc. has announced an aggressive plan to invest $54 million in Nicaragua through its Mexico and Central America subsidiaries.  For Walmart, the largest retail store in the world, this is the largest monetary investment it has put in Nicaragua to date.  The plan is to open 14 new stores in different cities around the country.  Walmart does not have an actual “Walmart” retail store but owns the Pali and La Union grocery store chains.  Walmart for these stores to go with the warehouse format that is popular in the US.

Nicaragua Magazine Walmart Investing

For some this may not seem like important news but it is a big deal.  Investing in Nicaragua has long been considered risky business but the fact that a company like Walmart is willing to invest a large sum of money shows a change in the perception foreign companies have of Nicaragua.  The fact that Walmart is doing this in an election year when there is a bit of the unknown as to what will happen adds to it.  In the past most foreign companies would have waited until after the election to see what happens.  This is because the country has a history of instability.  After the revolution and during the civil war in the 1980’s many US companies like McDonald’s and Sears pulled out of Nicaragua.  McDonald’s did not come back until 1998.

Many in Nicaragua are hoping this investment as well as smaller ones in Nicaragua will help create jobs and boost the economy.  This is important for everyone who has some vested interest in Nicaragua.  Whether it’s the locals who are trying to provide for the families with food, shelter and an education, they need the jobs that are created from these investments.  Also for the foreigners looking to buy a vacation home or retire in Nicaragua.  If the local economy is doing well then there is less political unrest and raises the value of their investment.

Hopefully with investors like Walmart taking the lead, it will help others ease the doubts others may have for investing money into the Nicaraguan economy.  If  Walmart is willing to shell out $54 million in investments, then others should see that as an opportunity to get in on the rewards of investing in Nicaragua.

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