Almost half of Nicaragua’s six million or so inhabitants are classed as poor. The country is one of the poorest in Latin America. Like its neighbour Honduras, income and wealth are very unevenly distributed. The country is home to great natural wealth with a wide array of flora and fauna. Lake Nicaragua is the largest reserve of freshwater in Latin America and yet the quality of the drinking water is often poor. Nicaragua is frequently affected by natural disasters such as hurricanes and flooding. KfW supports the government in fixing damage caused by hurricanes and supplying people with drinking water.
As part of the BMZ 2030 reform strategy, the Federal Ministry for Economic Cooperation and Development (BMZ) is ending bilateral development cooperation with Nicaragua. Apart from the projects and measures still in progress, no further commitments are planned.
