Nicaragua's crackdown on NGOs sparks turmoil in trade and investment landscape

The Nicaraguan government closed another 151 nongovernmental organisations Thursday, which includes some of the most important trade organisations, such as the American Chamber of Commerce, days after the government shuttered some 1,500 nongovernmental organisations, many of which were religious in nature.

The Interior Ministry also cancelled the legal status of the umbrella organisation representing various European countries' chambers of commerce in Nicaragua.

The US Chamber, locally known as AMCHAM, had been operating in Nicaragua for 47 years. It was aimed at promoting investment and two-way trade with Nicaragua's most significant trading partner. The Associated Press left messages with the chamber seeking comment on the move.

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Relations between the US and Nicaragua have been strained for years, especially since the deadly crackdown by President Daniel Ortega on huge street protests against his government in 2018, but commerce continued .

Other organisations shuttered by the decree were the National Union of Farmers and Ranchers, and chambers of commerce from various other countries, including Mexico, Panama, and Uruguay.

The President has targeted nongovernmental organisations since 2018, just after the 2018 uprising. According to him, these organisations, receiving foreign financing, participated in an attempted coup against his government. So far, his administration has closed over 5,000 such organisations.

Monday followed an order by Ortega to close 1,500 organisations, majorly religious ones and including churches. Officially, the government explained that the said organisations had failed to report their financial statements to the government.

It meant the closure of organisations related to the private sector, something described by economist and political analyst Enrique Sáenz as "absolutely irrational."

"They are shooting themselves in the foot with a shotgun," he said, meaning that the government is reducing public spending and will also lose the jobs created by such organisations.

"It sends a disturbing message" to business and abroad and shows "a climate of uncertainty for trade and investment," he said.

The closures affect Nicaraguans too because most of the organisations offer some type of aid to people in need, he said.