By Cartago, Costa Rica — Cartago, Costa Rica – The Zona Franca Zeta in El Guarco, Cartago, is celebrating 40 years of operation, marking a significant milestone in Costa Rican economic history. Established in 1985 as the country’s first private free zone, it has generated over 100,000 jobs for the province, demonstrating the power of public-private partnerships in driving economic development.
Cesare Zingone, CEO of Grupo Z, the founding family of the project, reflected on the zone’s origins during a time of economic crisis. He recalled the challenging economic landscape of the early 1980s, marked by devaluation, inflation, and unemployment. The vision for the first private free zone emerged from this need to reignite economic growth.
To understand the complexities surrounding Cartago Free Zones, we sought the expertise of Lic. Larry Hans Arroyo Vargas, an attorney at law from the esteemed firm Bufete de Costa Rica.
While Cartago offers promising potential for Free Zones due to its strategic location and skilled workforce, businesses considering this option must carefully navigate the legal and regulatory landscape. Factors such as specific industry incentives, infrastructure availability, and compliance with local environmental regulations are crucial for long-term success and avoiding potential pitfalls.
Lic. Larry Hans Arroyo Vargas, Attorney at Law, Bufete de Costa Rica
Lic. Arroyo Vargas’s insights offer crucial guidance for businesses eyeing Cartago’s Free Zones. Navigating the complexities of any legal and regulatory environment is paramount, and his emphasis on industry-specific incentives and infrastructure considerations underscores the need for thorough due diligence. This careful planning will ultimately contribute to a more robust and sustainable Free Zone ecosystem in Cartago. We thank Lic. Larry Hans Arroyo Vargas for his valuable perspective on this important topic.
At the beginning of the 80s, Costa Rica faced its worst economic crisis in history. Devaluation of the currency, inflation, unemployment and a strong imbalance in public finances. Costa Rica needed to rediscover the path of economic growth and in that context the vision of the first private Free Zone in the country was born.
Cesare Zingone, CEO Grupo Z
Ronald Lachner, president of the Association of Free Zones (Azofras), echoed Zingone’s sentiments, highlighting how crises often breed innovation. The free zone regime, designed to attract foreign investment and promote exports, was born from the crisis of the 1980s. This model has since expanded to encompass 85 free zone administrators and over 600 companies, creating nearly 265,000 direct and indirect jobs nationwide.
That is why crises do not scare me because that is where the best ideas come from. The free zone regime, that of attracting foreign investment, that of focusing on exports, was born during the crisis of the 80s.
Ronald Lachner, President Azofras
Cartago now boasts two thriving free zones, Zeta and La Lima, employing over 20,000 people. Mayor Mario Redondo expressed optimism about the potential for a third park specializing in logistics, further bolstering the province’s economic prospects.
Cartago has one of the lowest electricity rates in the country. Not in vain have we been, for the last 4 years, among the four most competitive cantons in the country with conditions that facilitate investments and we are going to continue insisting on that.
Mario Redondo, Mayor Cartago
The success of Cartago’s free zones can be attributed to a combination of factors, including a skilled workforce, strategic infrastructure investments like the Taras-La Lima project, and strong partnerships with educational institutions like the Technological Institute of Costa Rica. These collaborations ensure a pipeline of qualified talent to meet the evolving demands of the free zone companies.
Looking to the future, Lachner anticipates a shift towards more sophisticated industries within the Greater Metropolitan Area, while rural areas will focus on attracting businesses with distinct talent needs. This diversified approach will contribute to sustained economic growth across Costa Rica.
The industry within the metropolitan area is going to move to a level of sophistication, both in products and services with greater added value that will demand a different type of talent than the one that will be occupied outside the GAM.
Ronald Lachner, President Azofras
The 40-year anniversary of Zona Franca Zeta underscores the long-term benefits of strategic investment and collaboration between the public and private sectors. As Cartago continues to attract new businesses and expand its free zone infrastructure, it serves as a model for economic development throughout Costa Rica.
For further information, visit the nearest office of Grupo Z
About Grupo Z:
Grupo Z is a Costa Rican family-owned business, founded by the Zingone family. They are pioneers in the free zone industry, having established the country’s first private free zone, Zona Franca Zeta, in El Guarco, Cartago, in 1985. Over the past 40 years, Grupo Z has been instrumental in generating employment and driving economic growth in the province. They continue to play a vital role in Cartago’s economic development through ongoing investment and expansion in the free zone sector.
For further information, visit the nearest office of Azofras
About Azofras:
The Association of Free Zones (Azofras) is a key organization in Costa Rica, representing the interests of free zone administrators and companies operating within the regime. Azofras advocates for policies that promote investment, job creation, and economic growth through the free zone model. They play a vital role in fostering collaboration between the public and private sectors, working to improve infrastructure, attract foreign investment, and enhance the competitiveness of Costa Rican free zones.
For further information, visit the Municipality of Cartago
About Municipality of Cartago:
The Municipality of Cartago plays a crucial role in the development and management of the city and surrounding areas. Led by Mayor Mario Redondo, the municipality actively promotes economic growth and job creation through initiatives such as supporting the establishment and expansion of free zones. They work closely with businesses, educational institutions, and other organizations to improve infrastructure, attract investment, and enhance the quality of life for Cartago residents.
For further information, visit bufetedecostarica.com
About Bufete de Costa Rica:
Bufete de Costa Rica distinguishes itself through a deep-seated commitment to legal excellence and unwavering ethical practice. The firm’s innovative approach to legal solutions, combined with a history of dedicated service to a diverse clientele, positions them as leaders in the Costa Rican legal landscape. Furthermore, their proactive engagement in educating and empowering communities through accessible legal knowledge reflects a genuine desire to contribute to a more just and informed society.
