Exporting to Honduras
Growing import market
The import market has seen steady growth for the last 6 years. It is expected to continue growing until at least 2024 (IMF, 2019). In 2019 UK exports to Honduras rose by 93.8%, compared to 2018 (ONS, 2020). If you are thinking of exporting to Honduras or looking for a base to expand into the Central American market, now could be a great time to do so.
Demand for goods and services
In 2019, the top goods exported from the UK to Honduras were manufactured metals, industrial machinery, and cleansing preparations (ONS, 2019). The top services imported into Honduras from the rest of the world were travel, transport, telecommunications (ITC TradeMap, 2019). If you are in any of these sectors, Honduras could be a good market for you.
Opportunities for exporters
There are opportunities for UK companies across a broad range of industries. Our trade advisers in Honduras have identified opportunities for UK businesses in the following sectors.
The government has approved a project that will make the Bay Islands off the coast of Honduras a free trade zone and free port. This will provide tax and other incentives to companies that set up operations.
More than 2 million people visited Honduras in 2017 and the trend is moving upwards. Tourists spend approximate $700 million (Honduran Central Bank, 2019), making this a profitable industry for companies that export products and services to the tourism industry.
Leading country in Central America for Public Private Partnerships
Honduras is one of the leading countries in the Central American region in the implementation of Public Private Partnerships (PPPs). The country has managed the allocation of 10 infrastructure projects since 2010, when the PPP Law was approved by the Honduran congress, including the building and operation of Palmerola International Airport. The country is in the process of restructuring this model to make it easier to operate.
Demand for UK services
There are opportunities for UK companies who can offer expertise in feasibility studies, planning, design, operations, and structuring in the mobility, energy, and services sectors. In addition financial expertise to develop projects through Public-Private Partnerships are welcomed.
Demand for UK expertise
The country is undergoing a reform in the electricity generation, transmission, and distribution matrix, including the facilitation of private investment in the national electricity system. Honduras is the second country in the region to offer cheap electricity (EEE, the government owned and operated electrical power company, 2020). UK expertise to implement new technology and best practices in renewable energy is highly valued.
The country has legislated tax incentives for the development of renewable energy projects; these include exemptions for 10 years in import tax, 12 years in income tax and 10 years in income and value-added taxes.