We Effect to phase-out operations in Nicaragua

We Effect will phase out operations in Nicaragua. The decision, made by the Board of Directors, is a consequence of new legislation, which demands that all people and organizations that receive financial support from abroad have an obligation to register as "foreign agents".

– The law is unfortunately another example of how democratic space is shrinking in many parts of the world. The situation has worsened during the pandemic, where we see how governments are using restrictive measures to increase control over civil society, says Anna Tibblin, Secretary General of We Effect.

The law (la Ley No. 1040, Ley de Regulación de Agentes Extranjeros) was adopted on 19 October this year and means that everyone who receives financial support from abroad has an obligation to register as a “foreign agent”. As a registered foreign agent, you are obliged to report all income and expenditure and prohibited from participating in any type of political activity. The penalties for breaking the law range from fines and seizure of funds and assets to, in the worst case, imprisonment. Exactly what is meant by ‘political activity’ is not yet clear.

We Effect has analyzed the legislation and does not see that there is any viable way to avoid the requirement for registration. Registering according to the legislation would make it impossible to conduct relevant development work in the country.

– Unfortunately, we see no other way than to phase out our operations in Nicaragua. It is with great sadness that we do this. We Effect has worked in the country for 35 years and wishes it was possible to continue to support small-scale farmers in Nicaragua in their fight against hunger and poverty, says Anna Tibblin.

The regional office has been commissioned to produce a plan for rapid phase-out of operations in the country, which includes support to employees and partners.

For further information, please contact:
Marcus Lundstedt, Director Media and Advocacy
+46 72 070 97 21




Written by

Marcus Lundstedt