Overview

Honduras possesses multiple strengths and the potential for faster growth and greater shared prosperity, due to its strategic location, a growing industrial base, continued efforts to diversify its exports, and a young and growing population.

In Honduras, operational support equipment and other relevant materials are widely available and used in humanitarian operations as well as in programming at the national and district levels. These key commodities are procured through different channels, including imports and trade partnerships with domestic and international suppliers.

In terms of equipment for humanitarian operations, tents of different sizes and capacities are available to provide temporary shelter to displaced or disaster-affected people. Water pumps and piping systems are also in place to facilitate access to drinking water in areas where water infrastructure may be limited. Water reservoirs are also available for water storage and distribution in communities in need of additional supply.

Some of the main economic sectors in Honduras according to their activity are:

• Agriculture: it is the most important generator of production, income, exports and employment of the Honduran economy, in addition to providing valuable environmental services. The rural population that has emigrated abroad sends significant foreign exchange earnings. However, the sector receives little state support, credit and investment, which restricts its sustained development. In recent years, their growth has been weak and volatile, with low productivity and little competitiveness, and the potential of forests is underutilized. Some activities (melon, African palm, poultry, aquaculture, sugarcane and pineapple) show strong dynamism and some diversification has been achieved.
• Forestry:  the importance of this sector is that it contributes 0.87% to the economic growth of Honduras, thus presenting a deficit in the trade balance of wood products during the years under study; tied to the above, in the country the use of the forest is reflected at the private level for industrial purposes, using pine roundwood in greater proportions.  In other words, the use has only been of a raw material nature and there are few technological processes that allow these products to obtain a greater added value. 
• Maquila Industry: The maquila sector is one of the main industries of the Honduran economy. It is of great importance for the country, both in attracting Foreign Direct Investment (FDI) and in generating new sources of employment. According to data from  the Honduran Association of Maquiladores, 315 national and foreign companies are part of the sector, distributed in 9 areas. Business opportunities exist throughout the entire value chain of the maquila sector. In such a way that the more integrated it is, the more competitive it becomes. These range from supply of supplies, design, packaging, various and comprehensive services such as administration and logistics systems, among others.
• Electric Power and Water: The electricity sector in Honduras is called a vertically integrated utility (except for about half of the capacity of electricity generation), an unfinished attempt to reform the sector in the early 90s, the increasing percentage of thermal generation in the last two decades, the weak financial state of the state-owned company (ENEE) (Empresa Nacional de Energía Eléctrica),  large technical and commercial losses in transmission and distribution, and poor electricity coverage in rural areas.

The drinking water and sanitation sector has gained coverage of water supply and sanitation services and has increased significantly over the last few decades. However, the quality and efficiency of the services are deficient, and gaps in coverage persist, especially in rural areas.

• Construction: The construction industry sector contributes approximately between 6.3 and 6.8 percent of GDP, making it the sixth most important sector for the national economy and the third economic activity that generates the most jobs.
• Transport: responsible for the mobilization of the different goods and transport of passengers in a maximum way, which includes the land and air transport service.
• Communications: it have been advancing at a good step, innovating in them almost at the same time as the other countries. Emphasizing that Honduras still has a long way to go in terms of communication strategies, but it also registered an increase of 3.6% in 2022.

Disclaimer: Inclusion of company information in the LCA does not imply any business relationship between the supplier and WFP / Logistics Cluster, and is used solely as a determinant of services, and capacities.

Please note: WFP / Logistics Cluster maintain complete impartiality and are not in a position to endorse, comment on any company's suitability as a reputable service provider.