- Photo via CINDE -
Published on Monday, May 8, 2023
By the A.M. Costa Rica staff
President Rodrigo Chaves, through the Ministry of Foreign Trade, announced the withdrawal of over $6 million from the annual budget to the Costa Rican Investment Promotion Agency (CINDE).
Created 40 years ago, CINDE is a private non-political and non-profit organization that promotes Costa Rica as a hub for international companies to establish operations in the country.
Of the total budget cut, more than $1.2 was provided by the Costa Rican Foreign Trade Promoter (Procomer) which is the country's agency to support Costa Rican companies in the process of exporting, and the rest was provided by the Ministry of Foreign Commerce.
cumulative reduction accounts for 73% of
CINDE's yearly budget, said the agency
in its statement.
According to CINDE, for every $1 in public funding, they generate about $44 from international companies' investments. The firm budget annual average is about $380,000 in its operations, to then generate an investment of $1 million from international firms branched into Industrial Free Zone.
Manuel Tovar, Minister of Foreign Commerce, justified the million-dollar budget cut over limitations on the ministry budget. The funds are equivalent to 18% and 13% of the total budget assigned to the ministry and the agency had not obtained the expected results regarding attracting international firms to open operations in rural zones.
CINDE expresses its concern regarding the withdrawal of government support and the impact that this action will have on the country's economic development. "Notably, the Minister was unaware of CINDE's accumulated 40 years of technical experience as the agency in charge of attracting investment and generating employment," they said in its statement.
One of the most recent achievements by CINDE is the organization of the Megaminds in Megatrends 2023 Summit on foreign direct investment that will be held in June in Costa Rica.