President Asfura's Reforms Focus on Economy, US Relations, and Security

Nasry Asfura's presidency: Initial reforms and future prospects

With a slight edge over his opponent, Nasry “Tito” Asfura has taken office as Honduras's president, following a highly charged electoral season. His term began on January 27, after securing just 40.27% of the vote, narrowly surpassing his primary competitor, Salvador Nasralla of the Liberal Party. Asfura's administration is keen on economic initiatives, aiming to attract investment by fostering a favorable business climate and reducing bureaucratic hurdles, with the backing of former U.S. President Donald Trump.

Initial economic strategies

The administration's early actions emphasize economic competitiveness and fiscal austerity. One notable step is the expansion of the Temporary Import Regime, allowing more companies to benefit from duty-free import facilities, potentially generating 47,000 extra jobs. Additionally, Asfura aims to reestablish Honduras's participation in the World Bank's International Centre for Settlement of Investment Disputes (ICSID), a move intended to reassure investors and promote a stable investment climate.

Legislative dynamics

The Honduran National Congress, also elected during the November 2025 elections, features a leading bloc from Asfura's National Party with 49 seats. Although no party commands an outright majority, the National and Liberal Parties together hold a significant share, signaling a shift back to more traditional bipartisan politics. Despite potential policy disputes and ongoing demands from some Liberal Party members for independent electoral result verification, this composition allows Asfura to advance his legislative agenda with relative ease.

Early administration moves

Asfura's initial days in office were marked by cost-cutting measures and institutional reforms. During his austere inauguration, he emphasized fiscal discipline and signed three critical bills into law to streamline public resource allocation. These included initiatives to sell the presidential plane and expand educational infrastructure, reflecting a commitment to invest in human capital and economic infrastructure.

Global and regional relationships

On the international stage, Asfura is realigning Honduras's foreign policy, focusing on strengthening ties with the United States and Taiwan while distancing the nation from China. His administration is initiating efforts to rejoin ICSID and engage in reciprocal trade negotiations with the U.S., tackling issues from trade barriers to labor standards and intellectual property rights. Asfura also aims to restore trade relations with Taiwan, particularly in the shrimp export sector, which suffered under the previous administration's alignment with China.

Energy sector overhaul

Reforming the energy sector is a cornerstone of Asfura's economic strategy. With the state-owned Empresa Nacional de Energía Eléctrica (ENEE) facing significant financial challenges, the administration is looking to restructure its debt and improve operational efficiency. Key priorities include reducing energy loss, enhancing infrastructure through public-private partnerships, and aligning legal frameworks with competitive market principles to attract investment.

Addressing crime and ensuring security

Asfura's administration recognizes crime and insecurity as major barriers to investment. While emphasizing a tough-on-crime stance, the government plans to pursue comprehensive strategies that include justice system reforms and violence prevention. Collaboration with the U.S. aims to address both security threats and governance challenges, reinforcing legal certainty and investor confidence.

Asfura's initial reforms have set a promising tone for his presidency. By addressing structural issues in trade, investment, and energy sectors, and fostering international relationships, his administration has the potential to drive significant economic growth and stability in Honduras.