Nicaragua’s government has taken a harsh step by shutting down an additional 151 nongovernmental organizations, including significant trade entities such as the American Chamber of Commerce. This move follows the closure of around 1,500 NGOs, with many having religious affiliations. The Interior Ministry also revoked the legal status of the union representing European chambers of commerce operating in Nicaragua.

The closure of the American Chamber of Commerce, with a longstanding history of 47 years in Nicaragua, has raised concerns. The chamber, known locally as AMCHAM, played a key role in facilitating investment and bilateral trade between Nicaragua and the United States. Tensions between the U.S. and Nicaragua have been strained, particularly after President Daniel Ortega’s violent crackdown on protests in 2018, but business activities between the two nations persisted.

Among the organizations ordered to close were the National Union of Farmers and Ranchers along with chambers of commerce from countries like Mexico, Panama, and Uruguay. Ortega’s government has been targeting NGOs since the 2018 uprising, accusing them of receiving foreign funds to undermine his administration. Over 5,000 organizations have been shut down by his government to date.

In a recent decree, Ortega ordered the closure of 1,500 organizations, mostly of religious nature, including churches, citing inadequate financial reporting to the government. Analysts, like economist Enrique Sáenz, criticize the government’s actions, especially the closure of private sector-related organizations, calling it “absolutely irrational.” Sáenz highlighted the negative impact on the job market and the overall business climate, creating uncertainty for trade and investment within and outside the country.

The closures not only affect businesses but also impact Nicaraguans who rely on these organizations for various forms of assistance. The crackdown on NGOs is seen as a repressive measure that could further isolate Nicaragua from the international community and hinder economic development in the country.