Prospera’s Future in Doubt After Nasry Asfura’s Election Victory

Prospera, the experimental Honduran city created to operate as a self-governing territory within the country, now faces renewed uncertainty following the presidential victory of Nasry Asfura. The project was originally established under former president Juan Orlando Hernández, during whose administration the legal framework enabling autonomous economic zones was approved. However, Honduras’ political landscape has shifted significantly since then, raising fresh questions about the city’s long-term status.

The legal foundation for Prospera was built on the Zone for Employment and Economic Development (ZEDE) law, which allowed designated areas to function with their own political, judicial, economic, and administrative systems while remaining formally under Honduran sovereignty. This framework, however, was later challenged by the subsequent government, and the Honduran Supreme Court ruled the ZEDE law unconstitutional by majority decision. Despite the ruling, the court has yet to clarify how already operating zones like Prospera will be treated moving forward.

Prospera, backed by U.S. investors, leveraged its autonomous status to implement policies distinct from the rest of Honduras, including adopting bitcoin as legal tender and establishing an alternative tax regime. In response to legal threats against its framework, the city filed a dispute with the World Bank’s International Centre for Settlement of Investment Disputes (ICSID), seeking billions of dollars in damages.

Political Ties and Investment Stakes Complicate the Outlook

Asfura’s administration could take a different approach to Prospera compared to the previous government. Known for supporting private investment, infrastructure development, and a stronger role for multinational companies in Honduras, Asfura has been viewed by some as potentially favorable to projects like Prospera. The city’s connections to prominent U.S. investors, including Peter Thiel of Palantir and venture capitalist Marc Andreessen, both of whom maintain ties to President Donald Trump, add another geopolitical dimension to the situation.

Still, Asfura has not publicly clarified his position on Prospera. The lack of a clear stance leaves billions of dollars in investments and infrastructure projects hanging in the balance. Until the government formally outlines its strategy regarding ZEDE zones, Prospera’s future remains uncertain, suspended between legal ambiguity, political change, and international arbitration.