Honduras Supreme Court Declares ZEDE Zones Unconstitutional

Recently, the Honduran Supreme Court declared that the legal framework supporting the self-governing ZEDE zones is unconstitutional.

These zones, designed to attract foreign investment by offering autonomy from local laws and regulations, were seen as a beacon of economic potential.

Now, this decision casts a shadow over the future of these zones and, more broadly, over the economic stability of Honduras.

This ruling does more than just nullify a law; it sends a strong signal of juridic instability. By stripping away the legal protections that allowed these zones to flourish, the court is limiting the freedom of Hondurans to choose where they work and how they prosper.

The decision, driven by political motives rather than economic logic, threatens to stifle innovation and entrepreneurship in a country that needs them most.

Take Prospera, for instance, one of the most prominent ZEDEs in Honduras. With this ruling, the country stands to lose:

- $120 million USD in investments that were pouring into the local economy.

- 200 registered companies that were creating a vibrant business environment.

- 1,000 jobs that provided livelihood and hope to many Hondurans.

These numbers represent not just lost opportunities but also the potential setback for the country's economic growth and global competitiveness.