OECS Business Focus 7 by AMS St. Lucia

Colonial Trust

Colonial Trust Company Ltd. is a St Lucia Trust Services firm that provides a broad range of Registered Trustee and Registered Agent services. Colonial Trust Companyâ&#x20AC;&#x2122;s experience in the international financial industry allows our professionals to provide comprehensive assistance with the formation of International Business Companies (IBCs) and International Business Trusts (IBTs). We also provide assistance with completing and submitting international bank account applications, in addition to an assortment of auxiliary company formation services. SERVICES: -

Incorporation of International Business Companies (IBCs)

Application for International Banking Licences

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Registration of International Mutual Funds

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Tel: (758) 453-7777 | 453-7007 Fax: (758) 453-3777 Email: info@thecolonialtrust.com OECSBusinessFocus Sep / Nov Website: www.thecolonialtrust.com

No.7

BUSINESS FOCUS

O E C S

Sep/Nov 2017

CONTENTS FEATURE 34. Eastern Caribbean Central Bank 35. Commonwealth of Dominica PM Assumes Chairmanship of ECCB Monetary Council 36. ‘Socio-economic Transformation’ Is Eastern Caribbean Central Bank New Strategy 38. Transforming The Eastern Caribbean Currency Union Together 40. Communiqué: 88th Meeting of ECCB Monetary Council 42. Creating New Pathways To Growth And Profitability 43. Eastern Caribbean Institute of Banking and Financial Services 44. Looking To The Future 46. ECCB Connects: Who We Are, What We Do And How We Serve You! 48. De-risking May Have Cataclysmic Impact On Caribbean Economies 50. Uncertainty Cannot Be An Excuse For Inaction 52. What Is Blockchain And How It Is Changing Finance 54. In Defence Of Caribbean Citizenship By Investment (CBI) Programmes 56. Financial Inclusion And Access To Financial Services Can Help Achieve SDGs 58. Finding Solutions To SME Financing Challenges 60. The Caribbean Finance Industry: Challenges And Strategies 62. Correspondent Banking Survey: Identifying The Impact Of De-risking 63. CAB, CARICOM and Bank of Guyana Discuss Regional Finance Industry 64. Caribbean Credit Unions Want Greater Role In Regional Development 66. US$59 Billion World Bank Support For Developing Countries 67. CDB Signs MOU With Export-Import Bank Of China 68. CTO Receives Financial Boost From CDB 69. CDB: Spiralling Barbados & Trinidad Debt “Worrying” 70. CDB Establishes Cultural, Creative Industries Innovation Fund 70. CDB Approves Funding to Boost CDEMA Response Capability 71. St. Vincent Government Buys BOSVG Shares From ECFH 72. PM Skerrit Presents Dominica Budget 73. Tax Administrators Assemble For 24th COTA 74. The Emerging Role Of Peer-To-Peer Lending In SME Financing 75. Insurance Companies to Comply with New Accounting Standard 75. Grenada, Canada Sign Tax Information Exchange Agreement 76. CIBC FirstCaribbean Performs Well Despite Challenges 77. GraceKennedy Reports 19% Profit Shortfall for Qtr 2 78. Republic Group Records US$138.3M in Profits OECSBusinessFocus Sep / Nov

78. ‘Satisfactory’ Results For OCM Group 78. Heineken Reports 48.6% Profits Leap for First Half of 2017 80. Growing OECS Economies Through The Private Sector 82. Retirement and Us 4. Editors Focus 6 Business Briefs OECS COMMISSION 8. Hon. Dr. Timothy Harris Completes Term As Chairman Of The Oecs Authority With Major Advancements To OECS Regional Integration 10. New Chair Visits The OECSCommission 12. OECS Agricultural Revolution Underway 14. OECS Awarded For Agricultural Health And Food Safety` 16. OECS And Spain Forge Closer Collaboration 16. OECS Commission and UNICEF Sign Cooperation Agreement 18. OECS Announces 30 Under 30 Campaign Winners GOVERNANCE GURU 26. When It Comes To Governance, Size Does Matter! (And Bigger Is Not Always Better!) BUSINESS TECH 28. Cable & Wireless Test Launch Hi-Speed 5G In Antigua 29. ARIN Strengthens Commitment To The Caribbean 30. CXC Launches Mobile App “CXC Connect” 31. Jamaica Ranked #1 For Cyber Security In The Region 31. Digital Skills Needed for Caribbean To Stay Globally Competitive ENVIRONMENTAL FOCUS 84. Regional Energy Supply Companies Have To Change Business Model 84. IICA Launches Publication To Assist In Achieving Sustainable Development 85. BVI to Implement Environmental, Tourism Levy for Visitors 85. Regional Climate Centre Established in Barbados 86. LUCELEC to Construct Solar Farm in St Lucia 87. UN Sec General Lauds CARICOM On Global Issues 88. OECS Commission Joins Climate Technology Centre & Network

ECONOMY & TRADE 89. ExxonMobil Finds More Oil Off Guyana 90. ECLAC, Caribbean Envoys Discuss Priorities For 2030 Agenda 91. IMF says Global Recovery On Firmer Footing 92. Barbados’ Cockspur Rum Brand Acquired By New Group 93. Dominica And ECCAA Explore Plans For International Airport 94. ANSA McAL Group Acquires Berger Paints Caribbean 95. IDB Launches ‘Orange Economy’ on Caribbean 95. CARIFORUM Firms Supported In Leveraging EPA OECS MEMBER STATES 96. Antigua-Barbuda & St Kitts-Nevis Join OAS Business Development Initiative 97. FITINN Investment Conference 2017 To Take Place in A&B YOUTH IN FOCUS 98. SPISE: Science and Engineering Program Reaches Milestone 99. Youth Leader To Rep Saint Lucia At One Young World Summit IN THE KNOW 100. ECCO Wins Historic Copyright Case in Saint Lucia 101. UG School of Medicine Regains Accreditation 101. New UWI Principal Officially Inducted for St. Augustine, Trinidad Campus ENVIRONMENTAL FOCUS 84. Regional Energy Supply Companies Have To Change Business Model 84. IICA Launches Publication To Assist In Achieving Sustainable Development 85. BVI to Implement Environmental, Tourism Levy for Visitors TOURISM 102. Blue Diamond Resorts To Take Over Management Of Antigua’s Jolly Beach Resort & Spa 103. Seaborne Airlines Resumes Service To Antigua-Barbuda 104. Tourism “Key To Fostering Trade” 104. Antigua-Barbuda Stakeholders Impressed By Tourism Strategy 105. EVENTS 106. MAJOR MOVES 108. Advertiser’s Index www.oecsbusinessfocus.com

Caribbean Alliance Insurance

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ECCB Takes The Lead To Push For Economic Growth! Council, comprising Ministers of Finance of the ECCU Member States, has agreed on policy with the ECCB responsible for execution and oversight. This formula, and the framework established, has worked with positive impact despite the challenges of individual Member States.

Lokesh Singh

Publisher / Managing Director

In the last decade, the East Caribbean Central Bank (ECCB), under the leadership of the late Sir K. Dwight Venner, has risen to prominence as the champion of financial and economic stability and growth in the East Caribbean Currency Union (ECCU), especially since the global economic collapse of 2007. With the demise of many major financial entities and resulting negative impact on the small and fragile OECS economies, the efforts and initiatives of the ECCB are indeed remarkable given the challenges facing the region. The East Caribbean Dollar has seen its longest period of constant parity as the strongest currency in the region through established and monitored monetary and fiscal policy. The governance structure of the Monetary

The establishment of subsidiary entities and implementation of policies has channeled particular focus on addressing the issues of and harmonising the financial services sector. The recently agreed policy to amend the Banking Act, resulting in the ECCB being the sole decisionmaker in granting Banking Licences across the ECCU and the capitalisation of ECCU Banks, speaks volumes. Prudent fiscal management by the ECCB has seen efforts to save financial institutions from collapse, and a new mandate of ensuring stronger and larger financial institutions will see mergers and acquisitions or expansion of their capital base to ensure long term viability. The issue of de-risking and the relatively new revenue stream of Citizen by Investment Programmes (CIP or CBI) being implemented in Member States has created major new challenges for the region. It is admirable to see the joint initiatives of the Public and Private Sector being led by the OECS Commission, the ECCB and the Caribbean

OECS Business Focus Magazine is published Quarterly by Advertising & Marketing Services Limited (AMS), Saint Lucia, in association with the Organisation of Eastern Caribbean States (OECS). Publisher / Managing Director: Lokesh Singh - lokesh@amsstlucia.com

Webmaster: Advertising & Marketing Services

Editorial Management Team: Lokesh Singh | Dr. Didacus Jules | Ramon Peachey Dee Lundy-Charles

Graphic Design: Tannel George | Carlisle Searles Advertising Sales: Cennette Flavien - cennette@amsstlucia.com Cleopatra Jules - cleopatra@amsstlucia.com Evol De Souza - evol@regionalpub.com Ann-Maria Marshall - ann-maria@regionalpub.com Shari Dickenson - shari@regionalpub.com

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Association of Banks (CAB) across the ECCU and the wider Caribbean Region, coming together to address the many serious challenges affecting this sector. The appointment of Timothy Antoine as the third Governor of the ECCB ushers in a new era and approach to monetary policy and economic progress. The ECCB 5 Year Plan crafted under his leadership seeks to increase annual growth of the individual economies of the ECCU. We look forward to the unveiling of this Strategic Plan and its resultant positive effect. Our Special Feature in this Issue is dedicated to the very important Financial Services Sector, and I hope the various articles will give you a better understanding of the organisations and the efforts being pursued to improve our economies and provide a better quality of life for our citizens. We trust that you will enjoy the content of Issue 7 of the OECS Business Focus Magazine and we welcome your feedback and comments via our website www.oecsbusinessfocus.com. Happy Reading.

Lokesh Singh Managing Editor / Publisher

Editorial, Advertising, Design & Production: Advertising & Marketing Services P.O. Box 2003, Castries, Saint Lucia Tel: (758) 453-1149; Fax: (758) 453-1290 email: ams@candw.lc www.amsstlucia.com www.oecsbusinessfocus.com OECS Business Focus welcomes contributions from professionals or writers in specialized fields or areas of interest. Reproduction of any material contained herein without written approval, constitutes a violation of copyright. OECS Business Focus reserves the right to determine the content of the publication.

On The Cover: ECCB Governor Timothy Antoine

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RUBiS

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BUSINESS BRIEFS BUSINESS FOCUS

Five CARICOM States Sign Caribbean Community Arrest Warrant Treaty

Taiwan Announces Visa-free Travel for Caribbean Diplomatic Allies

By: Paul McAdam

Citizens from a number of Caribbean countries are now able to enjoy visa-free travel to Taiwan. The Caribbean Arrest Treaty was formally signed by the leaders of Dominica, Grenada, Guyana, St. Kitts and Nevis, and St. Lucia at the recently held Caricom Heads of Government Conference in Grenada. The objective of this Treaty is to establish within the Caribbean Community a system of arrest and surrender of requested persons for the purposes of conducting a criminal prosecution for an applicable offence; or executing a custodial sentence where the requested persons have fled from justice after being sentenced for an applicable offence. The Treaty was presented in draft form when Guyana hosted the 28th Intersessional Meeting of the Conference of Heads of Government of CARICOM on February 16 and 17, earlier this year. It was also presented for ratification at the meeting. At a post Cabinet press briefing on February 2, Guyana’s Minister of State, Joseph Harmon said, “The adoption of this Treaty will simplify the procedures by which fugitives from justice are returned to participating member states, to face criminal prosecution or serve judicial sentences.” The Treaty is one of the regional security instruments that was formulated to enhance cooperation between member states in the fight against crime and to reduce the complexity, cost and delays in the existing extradition arrangements inherent in the Region. Ten other member states are yet to sign on to the agreement. ¤

OECSBusinessFocus Sep / Nov

Coming into effect immediately, the East Asian state, officially known as the Republic of China made the decision to ease restrictions “to demonstrate the Citizens from a number of Caribbean countries are now able to enjoy visa-free travel to Taiwan. Coming into effect immediately, the East Asian state, officially known as the Republic of China made the decision to ease restrictions “to demonstrate the closeness” between it and its “diplomatic allies” in the region. Residents of Belize, the Dominican Republic, Guatemala, St Kitts and Nevis, St Lucia, and St Vincent and the Grenadines can now visit for up to 30 days. El Salvador, Haiti, Honduras, and Nicaragua has restrictions eased to 90-day visa-free visits. The move follows the recent announcement of visa-free access between Taiwan and Paraguay. Taiwan’s Ministry of Foreign Affairs stated that this was “acting upon the principles of mutual benefit and reciprocity.” The 10 countries listed already grant visafree access to Taiwanese nationals, and have been included in Taiwan’s eVisa programme since it was launched in January 2016.

Business Briefs BUSINESS BRIEFS

Recently Dr Timoty Harris, the Prime Minister of St Kitts and Nevis made an official visit to Taiwan to promote investments and expand on bilateral relations between the two countries. Under the new rules, nationals from the selected countries can enter the Republic of China as long as they hold a passport valid for at least six months, a return flight or boat ticket (or valid ticket and visa for an onward destination, and have no criminal record. ¤

PAHO Seeks New Ways to Better Health Care in Caribbean

The Pan American Health Organization (PAHO) says it is looking for innovative community-based solutions for health care delivery issues related to infectious diseases in Central America and the Caribbean. PAHO said that it is collaborating on this initiative with the International Training and Medical Research Centre (CIDEIM) of Colombia, ICESI University of Colombia, and the World Health Organization (WHO) Special Program for Research and Training in Tropical Diseases (TDR). PAHO said the call seeks to identify social innovation projects in health that empower indigenous communities, improve health and well-being, and address conditions and root causes that contribute to death. The call for solutions closed on July 31. Submissions had to be done through the Initiative for Social Innovation in Health website, a global partnership of associates who are passionate about finding and advancing innovative community solutions in health.

“Given the importance of its enduring friendships with these diplomatic partners, and acting upon the principles of mutual benefit and reciprocity, and a further desire to strengthen the development of bilateral relations, the Republic of China decided to grant visa-free privileges to these 10 diplomatic allies from 12 July 2017 in the PAHO is part of this partnership which, hope that such benefits will lead to an in 2015, identified 23 examples of social increase in tourism, business, trade and innovation in health in 15 countries cultural exchanges at multiple levels.”

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BUSINESS BRIEFS around the world, including two in the Americas. In Central America and the Caribbean, as in other regions of the world, PAHO said thousands of people do not have access to affordable and quality health care.The health body says medications, vaccines and medical devices do not always reach those who need them. But PAHO said communities in the countries of the region are finding solutions to strengthen health care and make it affordable to the population. Health workers, business owners, students, government workers, programmers, community members and innovators who are addressing local health problems and applying more inclusive, effective, and affordable health care solutions can apply, PAHO said. “Through the call for solutions, we will study, evaluate and select the most promising projects to carry out case studies that advance knowledge about innovative approaches to health care,” the organisations point out on the initiative’s website. The selected projects will be recognised by national and global health policymakers, and case studies will be made and published, PAHO said. It said the awarded individuals will meet other social innovators in the region, and inspire others by sharing their experiences and help develop collective knowledge in this field. ¤

Vini Kozé Broadcasts to OECS, UK & USA Diaspora

Vini Kozé, the OECS Commission’s Public Education Forum Series on Regional Integration, began airing on television stations across OECS Member States, the wider Caribbean and in the Diaspora on July 25th 2017.

Kweyol for ‘Come Chat’, the programme provides an opportunity for key decisionmakers, grassroots observers and experts within respective fields to discuss and debate issues raised by a live audience on the achievements, development opportunities and challenges facing the Eastern Caribbean region. The series, funded by the 10th European Development Fund, acts as a conduit for a collective citizens’ voice to help shape local, regional and national policy as it relates to the various facets of Regional Integration. Forum topics include: • Education; • Economic Development; • Youth Empowerment; • Regional Integration; • Agriculture; • Climate Change. OECS Director General, Dr. Didacus Jules, believes that the issues of deep concern to the average citizen should be at the forefront of discussions that seek to shape the future of the region. “This initiative provides a platform for intelligent and open discussion and debate on areas of interest to our citizens, such as Education, Youth Empowerment and Climate Change.” “The views, opinions and aspirations shared by citizens will be canvassed in shaping the future of the OECS in relation to these key areas of development,” said Dr. Jules. Dr. Jules hopes that discussions held at the live fora will continue in homes via the television broadcast and that citizens will engage the Commission once again through online participation in the subsequent OECS social media campaign. The OECS Public Education Forum Series ran from January to March 2017 and was staged across six (6) OECS Member States including The BVI, Anguilla, Dominica, Grenada, St. Lucia, and Martinique. The series was funded by the European Union through its 10th EDF programme on Economic Integration and Trade of the OECS region and was produced by ELShaFord Productions on behalf of the OECS Commission. To view the broadcast times in your country, visit www.oecs.org/vini-koze-tvschedule ¤

Dominica Gov’t Increases Threshold On Way To Flat Tax Dominica’s Government has announced that it intends to simplify its tax system with only one rate of income tax. The announcement was made by Prime Minister and Minister for Finance, the Honourable Roosevelt Skerrit during his 2017/2018 Budget Address. In the interim, the Government has announced an increase in the income tax exemption threshold by 20% effective January 1, 2018. The Prime Minister described the move as “major,” and, “bold”. “For us to achieve the bold vision enunciated in this presentation, we must have a tax system that incentivises employment over consumption, and income over idle assets. Consequently, we shall be directing the National Fiscal Policy Panel to consider and advise on the abolition of the 15% and 25% income tax bands as early as the next fiscal year. Under this proposed system, Dominicans would only start paying income tax when their income reaches the 35% tax rate,” the Prime Minister stated. He said that the National Fiscal Policy Panel would be charged with the responsibility of advising on this measure and that he hoped to be in a position as of the next fiscal year, to gradually introduce the new income tax structure. “We shall await the advice of the experts, but in the interim I wish to ease the burden further and enhance the cash flow of workers in Dominica, by increasing the minimum income tax threshold from $25,000 per year to $30,000 per year,” the PM further stated. This means that the first $30,000 earned during the year would be exempt of any future income tax from January 1, 2018. The Prime Minister explained that the revenue foregone would represent less than 5% of current revenues. ¤

OECSBusinessFocus Sep / Nov

OECS COMMISSION

Dr. Timothy Harris completes term as Chair of OECS Authority

Hon. Dr. Timothy Harris Completes Term As Chairman Of The Oecs Authority With Major Advancements To OECS Regional Integration

tepping into the role of OECS Chairman in June 2016, Prime Minister Harris quickly identified OECS Regional Integration as a principal priority and worked strategically towards its advancement – focusing on the benefits to citizens of OECS Member States. Among the areas of focus, under Prime Minister Harris’ chairmanship, were: • Ongoing membership; • Data management; • Regional security; • International interests; and • Regional health. OECS Membership: Fostering Cooperation With The French Territories The accession of Martinique as the 10th Associated Member State of the OECS in 2015 paved the way to deeper ties between the OECS and the French territories of the Caribbean. This link was fortified in April of 2017, when the first OECS staff member from Martinique joined the Commission – a timely addition as the Organisation considers the membership of the French territories of St. Martin and Guadeloupe.

Data Management: The Launch Of The Updated Oecs Centralised Database The recently launched OECSInfo 2.0 provides the general public with web-based access to social and economic statistics such as labour force indicators, population, education and inflation rates. This platform plays a key role into the decision-making process and strategic analysis for the development of Member States. OECSBusinessFocus Sep / Nov

Security: The Creation Of Complementary Regional Systems In addition to the regional focal points for law and order, the Regional Security System (RSS) and the CARICOM Implementing Agency for Crime and Security (IMPACS), the 64th Meeting of the OECS Authority held in Saint Vincent and the Grenadines proposed recommendations for ongoing support in the areas of border security and intelligence sharing, which will enhance concrete cooperation among Member States in the fight against criminal activities. International Arena: Securing OECS interests Discussions on the re-opening of a joint diplomatic Mission in Canada in order to strengthen ties with strategic partners began. The Authority also considered strengthening collaboration with the African Union and its 55 Member States as an opportunity to deepen south-south cooperation. Creating Regional Health Insurance Coverage Despite major improvements at a national level, Health Insurance is still a predominant issue. Under the chairmanship of Prime Minister Harris, the Authority discussed the implementation of a regional health insurance system able to provide specialised care at lower costs. This initiative will complement the work of the OECS Pharmaceutical Procurement Service that saves regional governments an average of USD 4 Million every year. In June, Prime Minister Harris handed over the Chairmanship to Prime Minister Allen Chastanet of Saint Lucia, who will serve for one year. ¤

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First Citizens Investment Services

OECSBusinessFocus Sep / Nov

OECS COMMISSION

New Chairman Of OECS Visits The OECSCommission

Chairman of the OECS, Honourable Allen M. Chastanet, Prime Minister of Saint Lucia meets with members of the Commission’s Leadership Team

New OECS Chair Visits OECS Commission

rowing the economies of the OECS through greater functional cooperation and ensuring greater efficiency in public spending were two priority areas raised from a July visit to the OECS Commission by new Chairman of the OECS, Honourable Allen M. Chastanet, Prime Minister of Saint Lucia. Prime Minister Chastanet met with the OECS Director General, Dr. Didacus Jules, staff specialists and the leadership team, and outlined the Government’s focus on greatly improving the status of education, health care and citizen security. Affirming the achievements and unique positioning of the Commission in driving the OECS Regional Integration process, Prime Minister Chastanet reiterated the importance of economic growth in improving the lives of citizens in all Member States. “We must grow the economies of the OECS . . . What we are spending on in . . . governance now, is not about growing that money in absolute terms. It’s about making what we are spending more efficient, so the Commission plays a significant role in manifesting that opportunity,” said Prime Minister Chastanet. Director General of the OECS Dr. Didacus Jules welcomed the new Chairman and said that the Commission, working in unison with the Authority, had reached a number of milestones in advancing Regional Integration across education, health care and citizen OECSBusinessFocus Sep / Nov

security as just some functional areas, but that more work was needed. “As a region, we have achieved significant socio-economic outcomes - for example, infant mortality has greatly declined but we have a way to go if we are to create the kind of equitable economic opportunities we are seeking for all citizens, which derives from strong economic growth. “Small businesses are the engine room of any economy, as they bring employment, growth and innovation to a community; this is where we are also focusing our efforts as will be outlined in the upcoming OECS Growth and Development Strategy. “I am pleased that we are making sound headway in this regard with for example our Youth Entrepreneurship Program, 30 Under 30, which has identified innovative small businesses across the OECS for support by our Competitive Business Unit. “As I have said before, I believe we are living in the most exciting time in history with innovation and technology being able to leverage previously unseen social, cultural and economic opportunities and we look forward to continue working with the Authority and OECS Chairman Chastanet to realise these opportunities for all citizens across the OECS” said Dr. Jules. ¤ www.oecsbusinessfocus.com

St. Kitts Investment Promotion Agency

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OECS COMMISSION

OECS Agricultural Revolution Underway

OECS Agricultural Revolution Underway The Agriculture Sector in OECS Member States is on the brink of a new era in collaborative production for regional and international trade. A comprehensive grouping of regional agriculture stakeholders, which include Ministers, Manufacturers, Traders, representatives from the Bureau of Standards and the OECS Commission, are working together to ensure the success of the initiative. The virtual OECS Agri-Export Working group began in June of 2016 and, only one year later, has seen many achievements due to the influence and reach of the agricultural stakeholders involved, paired with the technological nature of the ongoing online meeting, which facilitates speedy action and decision making. Main achievements of the Agri-Export Initiative to date include: • three refrigerated boats traversing the OECS and the wider Caribbean with agricultural produce and livestock; • improvement of phytosanitary standards; • change in production packaging from bags to boxes; • forging new purchasing links with Trinidad and Tobago, Martinique, the United States and Canada; • joint production to fulfill shipment quotas for international trade; • development of an app to connect producers, traders, supermarkets and hotels virtually; • identification of high value crops for each Member State with a view to increase production in these areas for regional and international trade; and • identification of designated Agriculture point persons in each OECS Member State to ensure quick implementation of projects and timely feedback. Regional trade has been greatly facilitated with the service of the MV Sea Rambler, the MVC American Liberty and the Iron Cat, which export a range of fruits and vegetables from as far north as the British Virgin Islands to as far south as Trinidad and Tobago. Minister for Agriculture in St. Vincent and the Grenadines, Hon. Saboto Caesar, said that while regional trade is a priority as the OECSBusinessFocus Sep / Nov

OECS strives to lower its food import bill, it is also important that Member States aim to be self sufficient. “At all costs, we should try not to import goods which can be produced on the island – whether from the OECS or extra regionally.” “National agricultural platforms need to step up and produce more. We should aim for self sufficiency and collaborate to consolidate exports for extra regional trade,” Minister Caesar said. Joint production for international markets is an area of great potential for regional integration and the continued development of OECS economies. OECS Director General, Dr. Didacus Jules, said that the extensive achievements that the working group was able to cover in the space of a year was not only testament to inter-regional collaboration but the strong desire of the group to fulfill the economic aspirations of the OECS farming community with new commercial opportunities via the shipping initiative. “Agricultural prosperity remains paramount to the OECS, not only in terms of economic advancement and reducing the unacceptably high food import bill but ideally we want to move to a stage where we, as a region, can produce a marketable surplus for export markets,” Dr. Jules said. Opportunities to increase extra regional trade have also recently been strengthened by the B767 cargo aircraft service to St. Vincent and the Grenadines which offers 220,000 lbs of cargo space per week. The aircraft also services Grenada which, in addition to securing loaders for goods, plans to invest in refrigerated containers for cold storage. Projections for agricultural production in the region are expected to show a marked increase as Member States prepare for smart production aimed at efficiency and competitiveness, and innovative stakeholder collaboration in the sub region continues. www.oecsbusinessfocus.com

OECS Agri-Export Initiative To Earn EC$20,000/Week A new EC$20,000 a week trade agreement has been signed to export produce from St Vincent and the Grenadines to Trinidad and Tobago as part of the growing OECS Agri-Export Initiative. SVG’s Minister of Agriculture, the Hon. Saboto Caesar has been working with the OECS Commission, counterparts, manufacturers, traders and the Bureau of Standards to help drive down the food import bill in the Eastern Caribbean through the initiative which has opened up new trading routes and promotes food production self-sufficiency.

St. Vincent and the Grenadines as “ an agricultural platform now comprises 13 cooperatives which are successfully driving local agricultural production...

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Since the start of the pioneering initiative, St. Vincent and the Grenadines has shipped 3,325 50lb boxes of dasheen to the United States. Dominica, on its first shipment, successfully exported a 20ft container comprising 425 50lb boxes of dasheen. St. Vincent and the Grenadines is now greatly increasing production with 2,000 acres of coffee being planted with another 1,000,000 soursop plants, dasheen, squash and other vegetables being cultivated. Hon. Saboto Caesar noted the OECS Agri-Export Strategy Initiative as a central pillar of the SVG’s Agricultural Ministry’s 2017 agenda. “The OECS Commission has done an excellent job in establishing the framework for this important export strategy and I call all stakeholders in the public and private sector in OECS Member States to activate their national systems in order to make this dream a further reality. “St. Vincent and the Grenadines as an agricultural platform now comprises 13 cooperatives which are successfully driving local agricultural production. “I am pleased to report that the Rassarco and Export Cooperative in the small rural Village of Greggs concluded the sale and purchase agreement with Bunny imports and exports in Trinidad and Tobago. “Under this agreement, Rassarco has been contracted to supply EC$ 20,000 worth of agriculture produce weekly to Trinidad and Tobago with the possibility of adding other OECS Member States to the export list before the end of 2017” said Minister Caesar. President of the Rassarco and Export Cooperative, Alvin BufferCollin commended the work of the OECS Commission for building capacity among small exporters to help make the new initiative a reality which also provides employment opportunities to young people. ¤ OECSBusinessFocus Sep / Nov

OECS COMMISSION BUSINESS FOCUS

OECS Awarded For Agricultural Health And Food Safety OECS Awarded For Agricultural Health And Food Safety In The Caribbean

The USDA is also “currently speaking to the OECS to offer support to the Shipping initiative,

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Over 20 Caribbean countries gathered at the 10th Caribbean Plant Health Directors Forum in the Dominican Republic in July, where the OECS was awarded in recognition of its role in plant protection initiatives leading to enhanced agricultural development, trade and innovation in the region. The Caribbean is known for its vital and diverse agriculture and natural resources, and protecting them from potentially devastating invasive pests and diseases is critical to the health and prosperity of the region. Accordingly, the Caribbean Plant Health Directors (CPHD) has continuously strived to unify plant health safeguarding strategies in the region, while fostering the exchange of technical information, the transfer of technologies and methods, and the harmonisation of plant protection and agricultural trade management approaches. The 10th CPHD Forum was held from July 11 to 13 in Punta Cana, Dominican Republic. The meeting gathered representatives from over 20 countries and territories along with several partner organisations. Officials had two-day intense discussions aiming at bolstering the ability of member countries to identify, exclude, and respond to pests and diseases that threaten regional agriculture and natural resources and to resolve issues that might impede the trade of Caribbean agricultural products regionally and internationally. OECSBusinessFocus Sep / Nov

During the meeting, the OECS Commission received the Greater Caribbean Safeguarding Initiative GCSI Award 2017 in recognition of initiatives and innovations that make significant contributions to furthering the goal of safeguarding the region’s agriculture and plant resources. The Commission was represented by George Alcee, Programme Officer – Agriculture. ‘’Receiving an award at that level is a great achievement for the Commission and the region. It is a recognition of all the endeavours which were undertaken to safeguard the Eastern Caribbean from pest and invasive species. “We still continue to work to enhance trade and strengthen capacity of the quarantine infrastructure and border control agencies to achieve our goal. I am thankful to the European Union for their support under the 10th EDF, which allowed us to provide that level of capacity-building to reduce the entry and spread of pests and invasive species in the region. “The USDA is also currently speaking to the OECS to offer support to the Shipping initiative,’’ said Mr. Alcee. Five (5) major projects have been implemented towards the preservation of the sub-region: • The training support of thirty-three (33) plant quarantine officers at the annual University of the West Indies plant quarantine training programme. • The support to training in Pest Prioritisation and Pest Risk Analysis

(PRA), and the Establishment of PRA units in the plant health laboratories in Saint Lucia, Dominica and St. Vincent and the Grenadines. • The improvement of Regional Pest surveillance through support to the ‘train the trainers’ workshop on pest surveillance held in Grenada, and the production of a pest surveillance manual for plant health technicians in the region. • The training in the Development of National Pest List and the Production of a Manual for Developing Pest List • The training and equipment support to laboratories. Dr. Didacus Jules said the award was a symbol of the extended efforts made by all agricultural professionals in the region to safeguard the sector as a driver of economic growth. “Sustainable agricultural development is an OECS priority. Through our virtual working groups we have been able to achieve major advancements in plant protection initiatives to ultimately safeguard and enhance agricultural trade within the region. “Furthermore, agricultural professionals will be connected through an app where they can address in real time the fulfilment of shipment quotas for international trade, the extension of purchasing links with Trinidad and Tobago, Martinique, the United States and Canada or the improvement phytosanitary standards,” said the OECS Director General. ¤ www.oecsbusinessfocus.com

AMLFC Institute

OECSBusinessFocus Sep / Nov

OECS COMMISSION BUSINESS FOCUS

OECS And Spain Forge Closer Collaboration

OECS Commission and UNICEF sign cooperation agreement

OECS Commission and UNICEF sign cooperation agreement OECS And Spain Forge Closer Collaboration

The OECS and Spain are exploring avenues in which to forge closer cooperation, facilitated by the recent visit by H.E. Fernando García-Casas, Secretary of State for International Cooperation and Latin America. H.E. Dr. Didacus Jules met with H.E. Fernando Garcia-Casas and a distinguished delegation from Spain on July 15th in Saint Lucia, to reaffirm the friendship between Spain and the OECS and to consolidate and strengthen socio-economic cooperation. “Cooperation between Spain and the Caribbean has always been traditionally strong and we now look forward to a new era of growth and development opportunities for the region with Spain and other State actors,” welcomed Dr. Jules. H.E. Garcia-Casas said he looked forward to Spain and the OECS working closely together for shared prosperity and development outcomes. “The meeting with the OECS was a fruitful discussion and I want to reiterate the disposition of Spain to sign an agreement we are jointly working on that will reinforce the relations between Spain and the OECS by establishing new avenues of cooperation across different areas. I also want to reaffirm Spain’s commitment to the regional integration process in the OECS and I commend the notable progress achieved to date,” said H.E Garcias-Casas. “Our regional integration drive will be enhanced with trade links outside of the OECS and to this end, becoming competent in Spanish will assist our professionals to work closely with their counterparts in Spanish speaking regions. “We look forward to cementing further avenues for cooperation and our International Relations Unit will be working closely with Spain to deliver on Programs designed to enhance our friendship and the growth and prosperity of the OECS,” Dr. Jules said. ¤

OECSBusinessFocus Sep / Nov

The Organisation of Eastern Caribbean States (OECS) Commission and the United Nations Children’s Fund (UNICEF) have deepened their partnership to advance the interest of the sub region’s children. The two entities signed a five-year agreement on Monday, June 26th 2017, which will see them jointly promoting child-centred programmes across all OECS Member States. Areas covered by the agreement span several sectors, including education, justice, child protection and social policies. Data collection on childspecific issues is also part of the agreement. OECS Director General, Dr. Didacus Jules, and UNICEF Representative, Ms. Khin-Sandi Lwin, signed the agreement on behalf of their respective agencies. Dr. Jules said that the agreement embodies the ongoing commitment of both organisations to safeguard the future of the region’s youth through empowerment programmes and data collection for development. “As one of our key development partners, we share a common vision with UNICEF to ensure our youth are exposed to healthy atmospheres conducive to growth and optimal development.” “This is an opportunity to strengthen bonds as we work collaboratively to tackle the challenges facing many of the sub region’s youth,” Dr. Jules said. Ms. Lwin, noting that this is the second multi-year agreement being signed by the agencies, said UNCIEF views the OECS Commission as a very important partner and key player in influencing the child rights agenda. ` “We have some very positive and tangible results from our previous collaboration and I have no doubt that this renewed partnership will continue to put the children’s agenda high on the priority of all Member States,” Ms. Lwin added. She highlighted some of the achievements of the past as the OECS Model Child Bills, which several countries have adapted to reform and modernise their suite of child protection laws; the education digests which contain valuable data on the education sector; and the work in promoting quality early childhood development services. ¤ www.oecsbusinessfocus.com

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Sagicor Life Inc is rated â&#x20AC;&#x153;A-â&#x20AC;? (Excellent) by A.M. Best Rating Company. OECSBusinessFocus Sep / Nov

BUSINESS OECS YOUTH FOCUS FOCUS

OECS Announces 30 Under 30 Campaign Winners

The OECS Commission is pleased to announce that after five months, and over one hundred applications from young business men and women throughout the region, the top 30 Under 30 entrepreneurs have been chosen.

OECS Announces

30 Under 30

Campaign Winners At the centre of this effort is “ youth development. The youth demographic is among the most disadvantaged segment of the population, characterised by unacceptably high rates of unemployment...

’’

OECSBusinessFocus Sep / Nov

The selected cohort represents a diverse cross section of industries, including Food and Beverage, Art and Photography, Business, Technology, Agriculture, Sustainable Development, Social Development, Sports, Photography and Entertainment. OECS Director General, Dr. Didacus Jules, commended this initiative that seeks to bolster the creativity of the region’s youth. “At the center of this effort is youth development. The youth demographic is among the most disadvantaged segment of the population characterised by unacceptably high rates of unemployment; therefore youth empowerment and entrepreneurship must be a priority if we are to drive the change we all seek.” “It is the hope that this initiative will provide the support that these young entrepreneurs need to take their businesses to the next level,” Dr. Jules said. Winners will receive business support from the OECS Competitive Business Unit in the form of mentorship, to aid their professional and business development; technical assistance in sourcing markets; and financial assistance. Through its Youth Empowerment Strategy (YES), the OECS Commission opened nominations for its inaugural 30 Under 30 in Entrepreneurship initiative in November of 2016 and extended the nominating period until March 31, 2017. Eligible entrepreneurs had to be 30 years old or younger at the time of nomination, and be a citizen or resident of an OECS Member State. All eligible applications were considered despite business size, years of operation, and business industry. ¤ www.oecsbusinessfocus.com

OECS 30 Under 30 Winners Name

Country

Industry

Akeem Edwards

Antigua & Barbuda

Food & Beverage

Regis Burton

Antigua & Barbuda

Social Business

Winston Laville

Antigua & Barbuda

Agriculture

Sharie De Castro

British Virgin Islands

Education

Mitch Jno Charles

Commonwealth of Dominica

Agriculture

Oudin Samuel

Commonwealth of Dominica

Website Design

Sherwin Thomas

Commonwealth of Dominica

Entertainment & Media

Prince F. Thomas

Grenada

Agriculture

Tereika Peters

Grenada

Food & Beverage

Shakim J. Fortune

Grenada

Food & Beverage

Kimron Corion

Grenada

Media

Jacques Sanquer

Martinique

Consulting

SĂŠbastien CĂŠlestine

Martinique

Culture & Entertainment

Sasha Herbert

St. Kitts & Nevis

Art & Entertainment

Dijaun Jack

St. Kitts & Nevis

Business & Personal Service

Janeel Boon

St. Kitts & Nevis

Computers, Communications & Electronics

Shane Browne

St. Kitts & Nevis

Shopping & Specialty Services

Desi Brown

St. Kitts & Nevis

Creative Enterprise & Business and Personal Services

Wendel George

St. Lucia

Sports & Recreation

Larry Shepherd

St. Lucia

Construction & Renovation

Jonathan Theobalds

St. Lucia

Computers, Communications & Electronics

Kenisha Jn Baptiste

St. Lucia

Construction & Renovation

Kandice Delice

St. Lucia

Shopping & Specialty Stores

Denell Florius

St. Lucia

Public Utilities & Environment

Randy Lafontaine

St. Lucia

Photography, Automotive & Tourism (respectively)

Johanan Dujon

St. Lucia

Agriculture

Heidi C. St. Clair

St. Lucia

Child Care Services

Anton Volney

St. Lucia

Business & Personal Service

Javid Collins

St. Vincent & the Grenadines

Photography

Jeronnie Richardson

St. Vincent & the Grenadines

Messenger & Courier, Online Marketing & Advertising

OECSBusinessFocus Sep / Nov

Akeem Edwards Donut Ace is a small cafe which specializes in handcrafting edible pieces of paradise, specifically donuts. Donut Ace was conceived accidentally when Akeem Edwards a newly graduated culinary chef aspired to win his girlfriend’s heart and stomach. He however won the hearts of his local Antiguans. Donut Ace has grown rapidly in its short existence, providing quality customer service while constantly evolving to remain sustainable in a dynamic economy. Through its charity work the company has become a hub for young individuals from the community to learn new skills, gain experience, and moreover engage in positive meaningful activities. Recently, Donut Ace collaborated with Breast Friends of Antigua to assist with fundraising activities for cancer patients. Akeem Edwards plans to explore opportunities to expand his company’s market share within the next two years. With the growing popularity of the business, he hopes to create additional employment opportunities for young Antiguans and achieve other strategic business goals.

Regis Burton Nolan Hue is a holistic professional lifestyle brand which helps to bridge the generation gap. Nolan Hue believes that the youth will not follow the norm if they continue to expose them to opportunities that changes their professional point of view. Nolan Hue hosts Young Professional networking events, Youth Empowerment Retreats, Professional development workshops, provide educational scholarships and career development workshops just to name a few. If the next generation of leaders become exposed to a different environment than the normal poor customer service for example, then they will change the future. Nolan Hue is in the process of becoming self sustainable and becoming the first registered Community Interest Company in the OECS. Nolan Hue’s Co-Founder Regis Burton was recognized by her Majesty the Queen for what Nolan Hue has done and has the potential to do. Regis Burton is a Queen’s Young Leader for 2016.

Winston Laville LCP Industries is a crop production company in Antigua and Barbuda which aims to reduce the local and CARICOM food importation bill. LCP Industries is an automated farming enterprise that commercially produces onions and other produce. The company focuses on a socio-economic business model and has positively influenced many social issues including supporting vulnerable youth and increasing youth employment. Winston Laville the company’s founder is the recipient of several regional awards including the Antigua and Barbuda’s Best Entrepreneur Award, Best Economic Entrepreneur - Caribbean Innovation Challenge, and President Barack Obama’s Young Leaders of the Americas Class of 2016. The company has engaged in talks with a number of Caribbean Islands to establish intensive crop production farms. However, LCP is focusing on sustaining its present project before expanding into other countries.

Sharie De Castro “Write To Read” is a literacy program that focuses on an individual’s reading and writing skills. The initiative, was birthed after its founder, Sharie De Castro realized that many of the students who were delinquent in school lacked fundamental skills in reading and writing. The company’s vision is to provide academic assistance to individuals through literacy. The young entrepreneur recognizes the challenges regarding improving academic development and self esteem simultaneously however she is dedicated to the cause. She believes that every child has the right to read and write. Therefore, Write To Read is making a significant difference by ensuring that children acquire a strong foundation in literacy that will ultimately support them in other aspects of their lives.

Mitch Jno Charles Island Frutz was established August 2016 in Dominica on one acre of passion fruit plantation by Mitch Jno Charles, its Managing Director. The vision of the company is to establish 50 acres of passion fruit to produce passion fruit pulp. Mitch Jno Charles plans to change the perception of agriculture in Dominica through his company. The company will be introducing large farming systems and a value added facility which will lead to increased employment opportunities for Laborers, Agronomists, Managers, Chemists, and Accountants. Mitch Jno Charles believes that this will create a new thrust in the agricultural sector; attracting public and private investors. It is expected that increased investment by both public and private sector entities will lead to increased economic benefits for Dominica. OECSBusinessFocus Sep / Nov

www.oecsbusinessfocus.com

Oudin Samuel After several years abroad pursuing an education in Computer Science, Oudin Samuel returned to Dominica and established Caribonix, an easy-to-use platform for website building. This startup tech company offers an online website builder software/platform and a curated community of expert web designers to help less, tech savvy business owners easily create awesome mobilefriendly websites and e-commerce online stores. Carbonix empowers small business owners, bloggers, retailers, creative professionals and entrepreneurs across the Caribbean and United States with the tools required to quickly and easily build, launch and manage their web presence with little technical skills at an affordable cost. Oudin Samuel currently seeks to positively impact the economy through job creation and by encouraging a culture of entrepreneurship in other young professionals. He believes that his company can contribute directly to the social issues of his country; and enhance more than just the IT sector but also improve the lives of Caribbean people.

Sherwin Thomas â&#x20AC;&#x153;Colour Me Feteâ&#x20AC;? is a summer event created by Dominican, Sherwin Thomas and a few other college students who sought to bring about something new to the entertainment industry in in Dominica. This paint and powder event provides an open relaxing environment where persons can enjoy themselves while dancing to the local music. In the last two years, Sherwin Thomas and his colleagues have managed to successfully execute the event that has now gained recognition from the rest of the Caribbean region. This has been achieved through effective marketing inclusive of promotional audio and visual media, along with an active social media presence.

Prince F. Thomas The Soursop Eden is a company established by Floyd Thomas geared towards the mass cultivation of Soursop in Grenada for sale locally, regionally and internationally. Approximately 15,000 Soursop plants will be cultivated using strictly organic manure which would be derived from poultry farms. The Soursop Eden will supply high quality fruit at an affordable price to customers. Floyd Thomas looks forward to opening a factory to process a wide range of value-added products such as juice, jam, candies and ice-cream after five years. He recognizes that there is a high demand for Soursop products in North America and Europe due to its nutritional value and health benefits.

Tereika Peters Golden Crust Bakery is a family owned bakery established by co-owner Tereika Peters and her father in Grenada. The company produces breads, cakes and pastries for retail to supermarkets and small shops. In the last 20 years the demand for products has steadily increased and provides employment for eight people. The bakery has gradually introduced new products and strategies which include a breakfast menu. These strategies have led to increased output and revenue. The bakery has a central location and is a model corporate citizen and actively gives back to the community by engaging and funding projects for youth development.

Shakim J. Fortune Herbal Pleasures is the leading manufacturer of tea bags in Grenada. The company also currently exports on a small scale to the United States and Canada. Herbal Pleasures clientele includes supermarkets, hotels, guest houses, restaurants and gift shops. Though only in operation for one year Herbal Pleasures has established itself in Grenada as an excellent producer and exporter. The company has a staff compliment of four and supports more than 20 farmers who produces raw materials. Shakim J. Fortune the co-founder and CEO of Herbal Pleasures is also knowledgeable in the adverse effects of climate change and seeks to combat climate by creating a greener environment at his company.

OECSBusinessFocus Sep / Nov

Kimron Corion Kimron Corion was unsatisfied with the perception of his country, Grenada and believed that it did not accurately reflect citizens and essentially his community. He therefore decided to change this negative image by creating a “I am Grenadian” a transmedia storytelling company, created for the social media age. This independent digital media company delivers stories and narratives driven by social media to thousands of Grenadians and people interested in Grenada, globally. “I am Grenadian” highlights the accomplishments, culture and history of Grenada and Grenadians both on island and in the diaspora and challenges the status quo.

Jacques Sanquer Officially created in 2016, Outremer Solutions is the result of 10 years self-made experience in the Caribbean and Indian Ocean (Reunion Island). Founder, Jacque Sanquer from Martinique noted that the focus of his company is to democratize access to consulting. His ultimate goal is to provide affordable consultancy services to public and private sector entities, and macro and micro enterprises. The company offers “low cost” consulting by young persons eager to gain experience. Outremer Solutions has grown from a one person start-up to a company with 150 employees. Jacque Sanquer spends his free time mentoring the youth and assisting them find employment.

Sébastien Célestine ALL MOL Technology is a digital distribution platform for cultural goods and leisure activities. It’s president Sebastien Celestine founded the company out of the desire to promote Caribbean culture and music globally. From its inception ALL MOL Technology has collaborated with artists, show managers and promoters to better understand their needs and to address them effectively. ALL MOL Technology is the first company in the Caribbean to receive the French Tech Grant acknowledging the quality of the company’s service and products. The company has also won the award for Innovation in French Overseas Territories the e-commerce category by Outre-Mer Network (2016), and the Startup Outre-Mer (2015) award. Sebastien Celestin plans to expand his company within the next three years by hiring additional staff, and developing new products and tools to enhance tourism in the Caribbean.

Sasha Herbert ‘Paint & Sip with Sasha, The Artist’ was created by it’s CEO Artist, Sasha Herbert, a 21 year old visual artist residing in St. Kitts. It is a fun, friendly and exhilarating atmosphere where family and friends can explore their creative side through acrylic painting, socializing and cocktails. ‘Paint & Sip with Sasha, The Artist’ events are mobile and are hosted by restaurants and bars. Sasha Herbert takes a very modern approach by allowing online registration and providing live broadcasted updates via whatsapp, facebook and other popular social media forums. This approach has allowed her to connect with her target audience of young adults and also makes customer engagements more interactive. Over time Sasha Herbert intends to transition her company into the premier ‘Paint and Sip’ studio in St. Kitts and Nevis.

Dijaun Jack Dijaun Jack is the proprietor of Carib Hardware Limited, a business and personal service in St. Kitts and Nevis, which has created opportunities for several other young professionals on the island. The company has been in operation for just about 6 years providing real estate sales and management, freight forwarding from the United States for consumers in St. Kitts and Nevis, and insurance coverage for motor, home and liability insurance. The company plans to expand to other Caribbean islands such as Dominica and Anguilla offering weekly shipping services from Florida.

OECSBusinessFocus Sep / Nov

www.oecsbusinessfocus.com

Janeel Boon Boon’s Computer Repairs is a small computer and electronics company in St. Kitts and Nevis. It’s owner Janeel Boon operates remotely from home however site visits are conducted upon request. The company focuses on repairing computer hardware and software, tablets and phones, networking and outsourcing devices. The 24 year old entrepreneur gives back to his community by hosting IT Talks, a computer tip program on a popular radio station in St. Kitts and Nevis. Janeel Boon is keen on identifying the needs of his market and aims to meet those needs. He believes that nothing is irreparable.

Shane Browne SKN Village is one of the first businesses in Nevis to provide a store that allows customers to purchase items not only from a physical location but also virtually from the comfort of their laptops, smartphones or other handheld electronic devices. The owner Shane Browne finds it is heart-warming to see women come together as a group and purchase their cosmetics transforming each other’s faces right at the boutique. Shane Browne has positioned his boutique as an outlet for creative youth who have their own t-shirt or craft line and need a place to display their items. With only three employees at his store Shane Brown strives to provide quality service to all customers in a warm and friendly environment.

Desi Brown Poise SKN delivers services in choreography, performance and tutoring, offering a range of dance classes with a Junior Department, Latin Fusion Department, Hip Hop Department and a Company Ensemble. Over time the company has ventured into fire dancing, aerial silk and pole fitness. Poise SKN focuses on preparing individuals and corporations for personal and professional success through their Human Resource Development services and also offers Promotional Model Management. The company’s owner Desi Brown at age 22 has already made an incredible mark in St. Kitts and Nevis, distinguishing herself from her peers and is considered extraordinary for her work ethic and initiatives.

Wendel George Portable Swimming Pools SLU offers St Lucians the options of hosting events in the privacy of their homes, as well as hosting of public events. Customers can rent a pool for up to two days and enjoy special moments with friends and family at an affordable rate. It is currently the only pool rental business in St Lucia and offers a unique entertainment product. Wendel George the company’s founder believes that it is an opportune time for diversify in the entertainment and recreational market and looks forward to continued growth and success.

Larry Shepherd BL Designs is an architectural company specializing in residential building and renovation. The company provides its clients with full architectural drawings accompanied by 3D models, rendering, animation and physical models. The company’s designs are influenced by nature, and owner Larry Shepard believes that a ‘house’ is essentially an extension of nature and therefore it should not disrupt its environment. BL Designs’ goal is to improve the quality of living of its clients whilst fostering a healthy green environment. As a model corporate citizen the company often provides guidance and equips young architects from the community, encouraging them to be creative.

OECSBusinessFocus Sep / Nov

Jonathan Theobalds Tibbs Tech Solutions is a fast and affordable computer, cell phone and other electronics repairs and maintenance service company. The company provides home/office networking, sales of computers and cell phone hardware and software products and accessories; online ordering and shipping to St. Lucia. Tibbs Tech Solutions was started by Jonathan Theobalds in 2009 while attending community college. What started as a small business operating from his home, serving a few friends and family has now expanded to serving customers around St. Lucia. The young entrepreneur anticipates that in the future his business will expand further to meet the needs of clients in St. Vincent and the Grenadines.

Kenisha Jn Baptiste KDL Architecture & Engineering provides professional, high-end 3D architectural design and rendering. The company also offers walk-through animation services to architects, contractors, builders, developers and land development professionals. KDL Architecture & Engineering follows the evolving trends and technologies in the field of design and 3D presentations. Kenisha Jn Baptiste, the St. Lucian owner of this company continuously signs up for courses to learn new software for architecture and engineering. The constant increase in knowledge and competence in her field has enabled her company to remain sustainable in a dynamic environment. One of the company’s key goals is to expand regionally and create job opportunities across the Caribbean with a focus on reintroducing youth to skilled job sets.

Kandice Delice House of Balloons provides customers with a variety of helium balloons for every occasion. Balloon decor (columns, arches, and sculptures) and other party essentials are also offered. With the use of creative, innovative and forward thinking, this company has made birthday celebrations more exciting by incorporating unique designs, colours and flare. Kandice Delice the company’s owner currently seeks to expand her business locally and anticipates that her company will eventually become a regional luxury event designer, in the future.

Denell Florius EcoCarib Inc. is an Energy Saving and Service Company which specialises in renewable energy and green building technologies. The company has grown over the course of 2 years into a powerful brand and has aided in the design and installation of over 300 kW of solar power on the island of St. Lucia. The company’s owner Danell Florius is currently seeking to expand into the Jamaican market. EcoCarib’s goal is to promote eco-living in the Caribbean through green technology. Among the major issues faced by clients are the high upfront capital to purchase their solar energy system, and getting access to tier 1 solar technology which would last the warranted period. EcoCarib Inc. has however successfully been able to solve both of these problems by developing a solar financing and supply company.

Randy Lafontaine Randy Lafontaine is the owner of 3 small enterprises in St Lucia which are: Top Notch Media Inc. - a photography service; Top Notch Auto Detailing - a car maintenance and detailing service; St Lucia Travel and Tours - a tourism based service which specializes in planning and executing tours and travel arrangements for clients, usually tourist. Though his enterprises are still growing, Randy Lafontaine provides opportunities for young people to receive part-time income from them. He also volunteers the resources of his photography business to non-profit organisations when requested. Randy Lafontaine has a vision to develop his brands further into something which will benefit more young people across Saint Lucia.

OECSBusinessFocus Sep / Nov

www.oecsbusinessfocus.com

Johanan Dujon Algas Organics is a Caribbean agricultural and household chemical manufacturer based in St. Lucia. The company’s main objective is to provide effective, affordable and natural solutions to synthetic chemical products for both the household and agricultural market. Algas Organics seeks to provide products that are child friendly, pet friendly, and do not harm the environment. Johanan Dujon the company’s owner developed an innovative process which incorporates Sargassum seaweed as one of its key raw materials and thereby converting what is currently a regional problem into an enormous opportunity.

Heidi C. St. Clair St. Clair’s Sitting Services’ key goal is to provide convenient, high quality and exceptional service to parents and family-oriented hotels with qualified people to care for their clients’ loved ones, homes and children when they are away. The fundamental objective is reflected in the services offered which contribute to the enrichment of the lives of people around Saint Lucia. Heidi C. St. Clairs the company’s owner has over time gained the credibility and trust of many Saint Lucians. St. Clair’s Sitting Services understands its customers’ needs and deals with them on a personal level. As a service provider the company constantly seeks to develop and motivate its human resource.

Anton Volney Midas Touch Writer is an internet marketing consultant agency founded by Anton Volney, which provides business owners with clear, powerful and profitable written communication. This includes giving business owners the insight they need to increase their profits from their online businesses as well as writing the sales material that converts one-time customers into repeat customers. It is virtual and location-independent, which means that jobs can be completed from anywhere in the world. Midas Touch Writer services clients from all over the world; with a client base comprising mainly of internet based entrepreneurs. In the future, Midas Touch Writer will explore the possibility of collaborating with designers, programmers, and other tech based professionals to enhance the company’s services.

Javid Collins Specs Aerial Photography brings a fresh view to cinematography, photography and graphic design in Saint Vincent and the Grenadines. Specs Visuals is operated by college students and incorporates social trends into business directions to create new innovative ideas for clients. Specs Aerial Photography goes the extra mile by bringing cinematographic editing to every video produced, making the smallest advertisement feel like a Hollywood blockbuster film, for a quarter of the price. The company services a plethora of clients from the island’s top event promoters, to corporate organizations. The founder of the company Javid Collins believes that his company will one day become an international media powerhouse with offices across the Caribbean region.

Jeronnie Richardson JSR Communications offers affordable business support services which include script writing, bill payments, courier services, marketing and video editing. This unique company was founded by Vincentian, Jeronnie Richardson and uses an online platform method to assist small businesses that do not generally use traditional media for marketing or advertising. JSR Communications has partnered with other established businesses such as Courts (Unicomer) St. Vincent. Jeronnie Richardson hopes to expand his company and looks forward to acquiring physical office space to facilitate the efficient provision of services to other countries in the OECS.

OECSBusinessFocus Sep / Nov

BUSINESS FOCUS

GOVERNANCE GURU

When It Comes To Governance, Size Does Matter! (And Bigger Is Not Always Better!)

When It Comes To Governance,

Size Does Matter! (And Bigger Is Not Always Better!) By: Dr. Chris Bart, FCPA, F.CIoD Chairman, The Caribbean Governance Training Institute & Chairman, Caribbean Institute of Directors According to one major study, the average US corporate board size is 9.2 members. In contrast, the average for boards of all types (for profit, not for profit, association etc.) in the US is 17. Within these statistics, boards have been found to range between 3 and 30 members. In theory, a board should be big enough to get the board’s work accomplished, yet small enough to communicate, deliberate, and act as a single body. Interestingly, while acknowledging this maxim, most writers on the topic of board size seem to agree that a typical board of directors should be comprised not less than 5 members and not more than 15, with the ideal board size being 7. So how many directors should you have sitting around your boardroom table? Naturally, the real answer is: “It depends.”

The Case for Small(er) Boards

By their very nature, large boards tend to be inefficient. That’s because when they meet, they usually entail longer and more protracted discussions with too many voices competing for OECSBusinessFocus Sep / Nov

attention and directors anxious to “make a contribution to the meeting”. It can become an unwieldly situation. Yet, ironically, members of large boards often complain that their opportunity

Dr. Chris Bart, FCPA is a recognised global governance authority and Co-Founder of the Caribbean Governance Training Institute in Saint Lucia. The Institute is the first to offer throughout the Caribbean, an intensive, 3 day governance programme leading to the prestigious and internationally recognised Chartered Director (C.Dir.) designation. Visit www.caribbeangovernancetraininginstitute.com or phone Avie at 758 451 2500 for more information. www.oecsbusinessfocus.com

for participation – to contribute their good ideas and exercise their leadership capabilities – is restricted. They feel left out of the decision making process which then leads to them feeling and becoming disengaged! Therefore, to make the board more efficient, and because it’s usually difficult to bring all of the directors together (especially on short notice), a board will often agree to create an executive committee of 5-7 directors to carry out work on behalf of the full board. But then it’s not too long before the full board becomes an acquiescent, rubber-stamping body in relation to the “the real board” – the executive committee. The full board now meets infrequently and directors who are not part of the executive committee feel ‘structurally disconnected’ from the locus of decision making power. As a result, both their preparation and attendance wanes and board disengagement soars! Moreover, due to the infrequency with which they meet, it becomes almost impossible for large boards to develop the interpersonal relationships with each other - not to mention with their CEO – which many argue are vital for creating a high performing board that adds value to the organisation. Interestingly, recent research has discovered that with every director added over a board size of 17, the quality of the board’s decision-making ability decreases by 10 percent. So if this is true, doing the math would mean that for the typical average US board size of 17, the quality of their decision making would be recorded at zero! Taking a somewhat different approach, an analysis conducted by GMI of almost 400 publically listed corporations found that smaller type boards tended to enjoy significantly higher rewards for their shareholders than their larger board counterparts. The companies studied had an average board size of 11 which ranged between 9 and 14 directors. Smaller boards of directors were observed to outpace their peers by almost 9 percentage points, while larger boards underachieved peers by 11 points. Interviews with the directors explained these results by noting that with smaller boards, a richer dialogue among the directors and management was encouraged. This in turn fostered more cohesiveness, decisiveness and agility in the board’s supervisory functioning. There was also more effective oversight of management – especially the CEO – with smaller boards being more willing to sack poorly performing CEOs for lackluster performance, something that gets more and more difficult to do as board size increases. So on average, it would appear that bigger is not always better and that good things do come in small packages. However, beware as you contemplate downsizing your board. There will be serious turf issues at stake as board members jostle to see who gets a seat when the music stops. As with all major change initiatives, and this is a big one, it will be extremely important to lay a proper foundation in terms of getting the board ready for such a change and managing it without bruising egos or making enemies. So be prepared. Downsizing properly can take years!

The Case for Big(ger) Boards Notwithstanding the previous arguments, there is still a case to be made for having larger sized boards because they too provide certain benefits. At the top of the list is the fact that big boards

offer greater diversity of thought as well as the horsepower to sustain a rigorous dialogue around each of the board’s various agenda items. Larger boards also allow for the inclusion and presence of certain directors by virtue of their geographic location, ex officio status, or ‘stakeholder’ representation. To minimise their limitations discussed previously, effectively functioning large-scale boards like to make use of many committees with five to seven directors appropriately assigned to each one. The committees do all the heavy lifting on topics that fall under the board’s purview: audit, finance, human resources, compensation, governance, risk etc. Under these conditions, directors report feeling engaged due to the specialised contributions they make to the full board via their specific committee. And because of the rigor that these topics get from the highly focused and aligned attention of the committee members (and often supplemented with outside professional expertise), the full board does not have to rework the agenda items (called “double due diligence”) when they come up for final review. This helps make the full board act more efficiently when they meet. Not surprisingly, the quantity of work faced by bigger boards does not get reduced for smaller ones. Smaller boards face the same volume of responsibility and liability as do their larger counterparts. It’s easy therefore for the directors on small sized boards to become overwhelmed by their tremendous workload – which, in turn, can also lead to board disengagement. To alleviate this problem, and especially if the directors want to avoid having to do double duty on multiple committees that require specialized expertise, small boards start adding directors to their ranks thereby setting them on a path to “bigness”. And so it goes. In conclusion, all organisations are not the same. They come in a multitude of varieties – for profit, not for profit, associations, charities, state agencies etc. Accordingly, the nature of the circumstances surrounding an organisation will significantly influence the size of its board. I have given you the cases for both smaller and larger boards. In both instances, directors want to be meaningfully consulted and not have their talents dissipated. It’s also my view that the average size of boards is slowly shrinking. However, the ultimate decision on which size is right for your organisation rests with finding the number of directors that (a) allows your board to competently and diligently carry out its many demanding responsibilities while (b) not damaging the quality of its decision making due to having either overburdened directors or disengaged ones. No outside expert can make this determination for your board. So here’s the big, uncomfortable question for Caribbean directors: To what extent do you and your fellow board members think you have the right board size? If you think that there is room for improvement in the way your board is structured – one of your many critical governance decisions – you might want to consider sending them to one of the corporate governance training programs available in the region – like the extraordinarily unique 3 day Chartered Director Program (“C. Dir.”) currently being offered by The Caribbean Governance Training Institute. After all, it’s not education which is expensive, but rather ignorance. ¤

OECSBusinessFocus Sep / Nov

BUSINESS TECH FOCUS BUSINESS

Cable & Wireless Test Launch Hi-Speed 5G In Antigua

Hon Gaston Browne, PM of Antigua and Barbuda, with John Reid, CEO C&W Communications, at the 33rd CANTO Annual Telecom Conference & Trade Exhibition in the Dominican Republic

Cable & Wireless Test Launch Hi-SPEED 5G IN Antigua At the 33rd CANTO Annual Conference & Trade Exhibition, John Reid, CEO of Cable & Wireless Communications (C&W), announced that C&W has completed a groundbreaking pre-5G (fifth generation wireless broadband technology) trial in Antigua. Once installed, Antigua will be the first country in the region with the most advanced pre-5G network, delivering download peak speeds of up to 800 Mbps. In the trial’s next phase, the Company expects to test a 5G prototype reaching 2 to 5 Gbps peak speeds, which will have a profound positive impact on the island. The announcement came as part of Reid’s keynote address to prominent Caribbean officials at the 33rd CANTO Annual Conference & Trade Exhibition in the Dominican Republic. “These are exciting times for C&W Communications, as we continue to invest and develop more pioneering innovations to meet the needs of our customers and enable growth in the region through transformative technology,” said Reid. “This pre-5G trial in the Caribbean, is a significant step towards the evolution of C&W’s OECSBusinessFocus Sep / Nov

mobile networks across the region to 5G, and providing Gigabit speeds to our customers in Antigua,” he continued. C&W’s pre-5G technology trial, a combined effort with parent company Liberty Global, is based on LTE Advanced Pro (LTE-A Pro), the latest LTE evolution, that delivers lower latency, more capacity and improved reliability for customers. This translates into a faster mobile internet experience where customers can better participate in advanced technology such as richer video experience and new apps. In early October, the Company will further test a 5G prototype network designed to deliver wireless data connections above 2 Gbps. If the trials are successful, and the business case favourable, the Company plans to invest another $5 million in Antigua alone to significantly upgrade the wireless infrastructure there. C&W has invested $1.5 billion in the region over the last three years. 5G is a new set of standards beyond traditional 4G/LTE technologies. This set of standards will allow operators to deliver wireless data connections above 1 Gbps and to enable the Internet of Things (IoT). C&W’s pre-5G trial and 5G prototype trials are part of a partnership with Ericsson, who will provide the equipment and software in Antigua and across the Caribbean. ¤ www.oecsbusinessfocus.com

Strengthens Commitment to the Caribbean Appoints Bevil Wooding as Caribbean Outreach Liaison is central to the advancement of the Caribbean’s development goals. Many Caribbean countries are already increasing their investment in critical Internet infrastructure to spur local innovation, economic growth, and global competitiveness. At the same time, consumers want access to faster, more reliable, more affordable Internet services. This will require greater investment in network infrastructure. To support this, ARIN expects to see more autonomous networks, more requests for Internet number resources, and more organizations adopting the next generation Internet protocol, IPv6.

ARIN Strengthens Commitment To The Caribbean

Wooding’s strong track record in the Caribbean Internet community well-positions him to address these regional concerns. He has served throughout the Internet community as an Internet Strategist and Caribbean Outreach Manager with Packet Clearing House, advocating the implementation of exchange points throughout the Caribbean. He is a Special Advisor to the Caribbean Telecommunications Union (CTU), routinely advising governments and regulators in the region. He also serves as Chair of CaribNOG and Co-chair of the Caribbean Peering and Interconnection Forum (CarPIF), both volunteer technical communities supporting Internet development in the Caribbean. As ARIN’s Caribbean Outreach Liaison, Wooding will focus on three key areas: 1. Building awareness of ARIN’s mission and services, 2. Growing Caribbean participation in the ARIN policy development process, 3. Strengthening relationships with ARIN’s members, partners, and communities in the Caribbean.

Bevil Wooding Caribbean Tech Guru

The American Registry for Internet Numbers (ARIN) is pleased to announce the appointment of Bevil Wooding as Caribbean Outreach Liaison, a newly created role to strengthen the organization’s relationships with community members in the Caribbean region. “ARIN has had a long history of Caribbean engagement,” said John Curran, ARIN’s President and CEO. “We want to build upon the work done in the past and welcome even more Caribbean voices, views, and contributions to the ARIN community. Given Bevil’s standing and extensive experience in the region, we’re happy to have him on board to help us achieve this goal.” Over the past 20 years, ARIN has been engaging with the Caribbean in many ways, recognizing the region’s unique challenges, opportunities and priorities. A resilient networking environment

“Over the years, ARIN has developed a positive reputation in the Caribbean. I am looking forward to building on this by strengthening ARIN’s relationship with the technical community, regulators and governments in the region,” said Bevil Wooding. Starting immediately, Wooding will promote ARIN’s objectives and initiatives while expanding its collaborative partnerships in the Caribbean. For more information about ARIN’s engagement in the Caribbean, take a look at how ARIN has been connecting with the Caribbean over the years on TeamARIN.net. ¤ About the American Registry for Internet Numbers (ARIN) ARIN is the nonprofit corporation that manages the distribution of Internet number resources – IPv4, IPv6, and Autonomous System numbers – in its service region, which includes Canada, the United States and many Caribbean and North Atlantic islands. Those who need IP address space can request it directly from ARIN. More information about ARIN services, events, IPv6, and more is available at http://www.arin.net and http://teamarin.net/get6/

OECSBusinessFocus Sep / Nov

BUSINESS TECH

CXC Launches Mobile App “CXC Connect”

Students Can Now Access Examinations Results Through The App

address at the launch. “This is indeed a great occasion we’ve seen the progress that CXC has been making over the years particularly with bringing on board all of the technologies to make learning relatively seamless. Knowledge acquisition, knowledge retention, knowledge accumulation is absolutely important in today’s world,” he said. Jones admitted that he too must keep up with the pace as CXC continues to move rapidly with technological advancements. E-marking, E-Testing and E-Books were among the council’s accomplishments he noted. Pledging his support for advancements in learning technology, the Minister emphasised, “If our students are to learn and learn seamlessly to stay connected, to feel the knowledge flow from not only teachers, but feel that knowledge flow from across the world, that it in fact can enhance their learning, then we have to open the space.” Chief Executive Officer of BITT, Gabriel Abed, also commended CXC for stepping up to the plate and embracing technology which will prove beneficial for generations to come.

The Caribbean Examinations Council (CXC) continues to climb the technology ladder as it launches its first mobile application “CXC Connect.” On Wednesday 26 July 2017, CXC Connect became available to mobile users in the Google Play Store and to commemorate the event, an official launch was held at Sky Mall in Barbados. Barbados’ Minister of Education, Science, Technology and Innovation, Ronald Jones gave the key note

The app was built with several attractive features in mind to engage all of CXC’s stakeholders. The 2017 candidates of CXC examinations will be the first to access their results from the portal within the app, anywhere and anytime, using their credentials. The Newsfeed on the app is comprised of the Council’s Facebook and Twitter activity, as well as customised activity to suit each stakeholder. Users have access to the FAQs library, where they can ask questions and corresponding answers will appear. Upcoming events for the council will also be provided with the necessary details. CXC has since hosted another app launch in Guyana on 31 July, 2017. ¤

CXC Caribbean Examinations Council

OECSBusinessFocus Sep / Nov

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Jamaica Ranked #1 for Cyber Security in Region

Digital Skills Needed for Caribbean to Stay Digital Skills Needed for Caribbean To Stay Globally Competitive Globally Competitive By: Gerard Best

Jamaica Ranked #1 For Cyber Security In The Region

The digital era is here to stay but many still lack the skills needed to get ahead in the Internet economy. A 2017 CIGI-Ipsos global survey on Internet security and trust found that a significant percentage of Internet users do not trust the Internet enough to conduct financial transactions online. Even among those willing to embrace digital commerce, many face another barrier: Digital literacy. Rhea Yaw Ching, executive director of the Covela Foundation, points out that the problem is more acute in Latin America and in particular the Caribbean, where an increasing number of citizens and businesses are now coming online.

Jamaica’s efforts to boost Cyber security have been given international recognition after the country was ranked number 1 in the Caribbean region on the Global Cyber Security Index.

“There is a direct correlation between digital literacy and financial inclusion,” said Yaw Ching, a former telecommunications sector executive.

According to a report produced by the International Telecommunication Union (ITU), Jamaica was among onehundred and thirty-four member states which responded to questions based on the core areas of the ITU Global Cybersecurity Agenda (GCA).

“Sixty-five per cent of the Caribbean population is unbanked, meaning that they are predominantly cash-based. And a further 20 per cent are underbanked, meaning that they under-utilize the financial services that do exist.”

The survey conducted in 2016 through an online platform, measured the commitment of all 193 ITU member states to improving cybersecurity through legislation, projects and programmes, capacity building and cooperation. Minister of Science, Energy and Technology, Andrew Wheatley says that while he was optimistic about the latest rankings and applauds the efforts of the Cyber Incident Response Team (CIRT), MOCA, & Communications Forensics and Cyber Crimes Unit (CFCU), there is still a lot more work to be done. Adding that the Government through the Cyber Incident Response Team continues to strengthen its Cyber Security responsiveness and boost its public education programme, Minister Wheatley says that he is confident that Jamaica’s ranking will continue to improve. The overall picture for Jamaica suggests that Jamaica’s Cyber Crime efforts have improved significantly even as the country continues to strengthen all four elements of its national Cyber Security strategy.

What heightens the challenge is the big gap between the formal financial sector in the Caribbean and the hundreds of thousands of small or micro-organizations operating in the informal economy with little access to services such as automated payments, credit cards, online banking, mobile apps or even ATMs. “The informal economy is a key driver of the economics of most Caribbean nations. Unfortunately, the informal economy is still largely characterised by limited access to ICT services, limited access to formal financial services, and, critically, limited digital skills,” Yaw Ching said. She added that the Caribbean still has a long way to go before it can realise the benefits brought about by the digital era. “The key to unlocking true innovation lies in equipping citizens with the digital skills most relevant to the region and developing the financial systems and services to allow them to fully capitalise Caribbean ideas and innovations.” ¤ Source: Caribbean360.com

“There is room for capacity building and cooperation between the public and private sector at all levels but we remain committed to meeting all international standards and best practices” Minister Wheatley said. ¤ OECSBusinessFocus Sep / Nov

BUSINESS FOCUS

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OECSBusinessFocus Sep / Nov

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Special Feature Financial Services ECCB Charting The Course Ahead

One Community Growing Together

OECSBusinessFocus Sep / Nov

FEATURE

Eastern Caribbean Central Bank

Eastern Caribbean Central Bank Mission Statement Advancing the good of the people of the currency union by maintaining monetary and financial stability and promoting growth and development. Vision Statement To be a model institution delivering exceptional service and influential policy advice to support the development of a thriving currency union. ECCB 101 - When, Who, What, Where and How The Eastern Caribbean Central Bank (ECCB) was established in October 1983. It is the Monetary Authority for a group of eight island economies namely - Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia, and St Vincent and the Grenadines. The Agreement establishing the ECCB as the monetary authority for the eight ECCB participating governments, was signed on 5 July 1983 in Trinidad and Tobago. The ECCB was officially commissioned on 1 October 1983, replacing the Eastern Caribbean Currency Authority (ECCA) which was established in March 1965. The primary objective of the ECCB is to maintain the stability of the Eastern Caribbean Currency and the integrity of the banking system.

OECSBusinessFocus Sep / Nov

Management And Oversight In accordance with the ECCB Agreement 1983, the Monetary Council is the highest decision-making body of the Bank. Monetary Council The Monetary Council comprises the eight Ministers for Finance of the ECCB Participating Governments. Provision is made in the ECCB Agreement for each minister to designate an Alternate, who shall also be a minister of government, to serve on the Council in his/her absence. The Chairmanship of the Council is rotated annually among member countries in alphabetical order. Corporate Governance Framework The ECCB is cognisant that Good Corporate Governance is critical to the success of any organisation. The Bank is committed to ensuring that this attribute is enshrined in the conduct of its operations. The Bank’s corporate governance framework is upheld by the following pillars: • Firm foundation for management and oversight; • Proactive and sound risk management and internal control; • Integrity in financial reporting; • Code of Conduct that endorses ethical values; and • Reciprocal relationship with stakeholders. www.oecsbusinessfocus.com

Commonwealth of Dominica

Commonwealth of Dominica PM Assumes PM Assumes Chairmanship Chairmanship of ECCB Monetary Council of

ECCB Monetary Council

ECCB Governor meets with OECS Commissioners of Police The Corporate Governance Framework is guided by the following: • The ECCB Agreement, 1983; • The Corporate Governance Principles for the Organisation of Eastern Caribbean States (OECS); • The Legal and Regulatory Framework of the ECCU Member Countries; and • Changes in local and international practices. The framework seeks to promote accountability, ensure that appropriate control systems are in place to treat with associated risks, and fosters innovation through critical thinking and development through problem solving.

HIGHLIGHTS OF THE FISCAL YEAR 2016-2017 The Bank launched its weekly programme, ECCB Connects as part of the thrust to provide the public with a better understanding of the role and functions of the ECCB and how its work affects their lives. An Office of Risk Management was established and a Chief Risk Officer appointed to implement the Enterprise Risk Management Framework. The Bank started the process of developing its Strategic Plan, which will set out its vision for the next five years (2017-2021). The Plan will also focus on goals that are needed to better reflect the expression of the Bank’s mandate and provide strategies to guide the accomplishment of these goals over the five-year period. The Strategic Planning and Projects Department was established in September 2016 to provide a focal point for the development and management of the Bank’s Strategic Plan.

Dominica’s Prime Minister and Minister for Finance, Hon. Roosevelt Skerrit is the current Chairman of the Monetary Council of Eastern Caribbean Central Bank having recently taking over the Chairmanship from Prime Minister of Antigua and Barbuda, Hon Gaston Browne during a ceremony hosted at State House in Commonwealth of Dominica. In remarks at accepting the Chairmanship, Hon Skerrit reiterated the ECCB’s move towards the socio-economic transformation of the economy in order to secure the future of the people of the OECS region. While the global economic growth is projected at 3.5 and 3.6 per cent in 2017 and 2018, he says, growth for the Eastern Caribbean Currency Union(ECCU) is projected at 3.2 per cent in 2017 and 3.1 per cent in 2018; still short of the 5 per cent annual growth rate target which is required. Hon Skerrit said, it is expected that tourism and the foreign direct investment, particularly through Citizenship by Investment, will continue to be the main drivers in achieving these targets. “We see a future of strong banks, vibrant economies led by tourism, agriculture, medical education, financial services and powered by technology; we see a future where our citizens can find or create decent and meaningful work; we see a future where our children can grow up to realise their God-given potential; we see a future of peace, stability, unity and prosperity,” the Monetary Council Chairman said.

As part of the initiative to forge consensus on a plan of action for addressing growth, competitiveness and employment in the Eastern Caribbean Currency Union (ECCU), the inaugural Growth Dialogue with Social Partners was convened at the ECCB Headquarters on 1 March 2017.

“The process of economic transformation is not a sprint, it requires inter alia, a solid foundation, an appropriate infrastructure, a strategy, resolute implementation and patience. It is with this high level of commitment and with the eagerness to make life better for citizens of the Eastern Caribbean Currency Union that I assume the Chairmanship of this Council.”

The Bank convened an inaugural meeting with the Commissioners of Police of the ECCB member countries on 2 February 2017 at the ECCB Headquarters. One of the objectives of that engagement was to engender an avenue for information sharing as it related to security matters and criminal activities in the ECCU. ¤

Having set economic transformation as its focus, the ECCB will formally launch its strategic plan for 2017 to 2021 during September 2017. ¤

OECSBusinessFocus Sep / Nov

FEATURE

‘Socio-economic Transformation’ Is Eastern Caribbean Central Bank New Strategy

‘Socio-economic Transformation’ Is Eastern Caribbean Central Bank New Strategy Extract From ECCB Governor Timothy Antoine’s Speech Marking The Change In Chairmanship Of The ECCB Monetary Council On July 2017 In The Commonwealth Of Dominica “The global economy is exhibiting some signs of recovery, with a modest pick-up in growth. However, this recovery is accompanied by considerable uncertainty, including US policy on issues such as healthcare reform, tax cuts and infrastructure spending, and the outcome of BREXIT negotiations which are now underway. We in the Eastern Caribbean Currency Union (ECCU) are a very interested party in these policy outcomes, not simply from a global economic perspective, but precisely because the US and UK are our major trading partners and host our region’s largest diasporic communities. Almost a decade later, the global economy is yet to deliver the levels of growth recorded prior to the global financial crisis. Indeed, over the past five years, growth in the global economy has averaged a mere 3.0 per cent annually, prompting strong global concern about the notion of lower growth ceilings, caused in part by a global productivity slow-down. For example, the growth ceiling in the US in the 1990s was around 4.0 per cent to 4.5 per cent. Today, that ceiling appears to have fallen to about 2.5 per cent to 3.0 per cent. Indeed, the US has not achieved an annual rate of economic growth of more than 3.0 percent in each of the past 11 years - the longest such stretch of sluggish growth in US history.

OECSBusinessFocus Sep / Nov

Here in the ECCU, after a difficult [period] from 2009-2016 during which economic growth averaged growth about 0.8 per cent, things are looking up, somewhat. Last year, the ECCU recorded growth of 2.6 per cent. This year and next year, we project the ECCU will grow by about 3.0 per cent. When juxtaposed with its major trading partners, the ECCU can be said to be holding its own on “a pitch offering variable turn and bounce and with the ball keeping relatively low.” Against this backdrop, I invite us to cogitate on two questions: 1. What will it take to attain and sustain a growth rate of 5.0 per cent per annum in the ECCU? 2. What will it take to generate 60,000 jobs in the ECCU over the next eight years? In case you are wondering, 60,000 jobs is our initial estimate of the number of jobs required to secure single-digit unemployment in the ECCU. Many economists believe that the slowdown in global economic growth is partly attributable to a global productivity slowdown. Based on this view, we in the ECCU must apply ourselves fully to a ‘productivity speed-up’ to help raise our current growth ceiling.

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In my humble estimation, this shift requires our full commitment to socio-economic transformation and will entail critical reforms and investments. For this reason, the focus of the strategic plan of the Eastern Caribbean Central Bank is socio-economic transformation. This Plan will be launched on 7 September, 2017. Critical structural reforms include overhaul of our education system inclusive of curriculum, and improving the ease of doing business for all investors including our local entrepreneurs. Critical investments include scaling up of technical and vocational skills-training, including certification in coding to prepare for and exploit ICT job opportunities; research and development; and infrastructure provision such as affordable high-speed internet and renewable energy. In the financial sphere, it involves building out our financial markets infrastructure including the Partial Credit Guarantee Scheme and the Credit Bureau. It also requires reducing our dependence on the use of cash by utilising more electronic and digital payments. At this moment, our initial estimates â&#x20AC;&#x201C; the dearth of data is a huge challenge in our region â&#x20AC;&#x201C; is that 70.0 per cent of purchases in the ECCU are effected using cash or cheques, compared with Belgium, the most cashless country, which is around 7.0 per cent).

Beyond the prospect such a shift offers for helping deliver the urgently needed productivity speed-up, I truly believe this shift is part of the solution to addressing rising bank fees and charges, a concern expressed by many bank customers in the ECCU. Furthermore, the use of electronic and digital payments could be a useful tool in responding to the issue of rising criminality, a very grave concern in our fair isles. The fact that most of our citizens already possess at least one smartphone means this shift is feasible but internet connectivity, reliability and speed must improve. In conclusion, I reaffirm the commitment of the entire management and staff of the ECCB to deliver exceptional service for the good of the people of the ECCU. Strengthened by the grace of Almighty God; guided by the collective wisdom and collective action of the Monetary Council; undergirded by our core values of Service Excellence; Teamwork and Truth Telling; Accountability and Results (our STAR Mantra); supported by our development partners; and motivated and held accountable by a fully engaged citizenry, we are confident of success.

OECSBusinessFocus Sep / Nov

FEATURE Transforming The Eastern Caribbean

Transforming The Eastern Caribbean Currency Union Together

Transforming The Eastern Caribbean Currency Union Together Currency Union Together

Within the current and future context, characterised by economic uncertainty, technological disruptions, rapid evolution towards a globally integrated economy and fiscal challenges faced by member governments, the Bank is developing the Strategic Plan 2017-2021. The Plan sets out the Bank’s vision for the next five years and focuses on goals that are needed to better reflect the expression of the Bank’s mandate and provides strategies to guide the accomplishment of these goals over the coming years. The Bank coordinated the in-house development of the Plan and its refinement in collaboration with an external consultant. Strategic Planning and Projects Department (SPPD) The Strategic Planning and Projects Department was established to provide a focal point for the planning and development of the Bank’s strategic priorities. The responsibilities of the department include strategic policy development and monitoring, policy counsel to the Bank’s leadership, policy formulation and coordination, project management and coordination of the Bank’s financial and economic developmental initiatives. Office Of Risk Management The international financial landscape has undergone significant changes in recent years which have heightened the importance of robust risk management regimes within organisations to mitigate the attendant risks in the global operating environment. Traditional risk management practices, where risk was primarily viewed as a series of single elements to be addressed individually, gave rise to the creation of silos within organisations and detracted from the overall achievement of strategic objectives. In response to these shortcomings, companies have adopted an Enterprise Risk Management approach. The intention is to develop a holistic OECSBusinessFocus Sep / Nov

ECCB Unveils 5 Year Strategic Plan

view of the most significant risks that can deter or otherwise negatively impact the achievement of the entity’s key objectives. In response to this paradigm shift, an Office of Risk Management was established to implement an Enterprise Risk Management Framework. A Chief Risk Officer was appointed in September 2016 to lead this initiative. This separation of the risk function is in line with international best practices and facilitates greater efficiency in meeting the Bank’s objectives. This new focus on risk management extends to the Board of Directors. Consequently, the role of the Board Audit Committee was expanded to include oversight of the Enterprise Risk Management functions and the Charter was updated to reflect the added responsibilities. The Board Audit subcommittee was renamed the Board Audit and Risk Committee, (BARC)indicative of the increased focus. As part of the mandate for the development of the Enterprise Risk Management Framework, the Chief Risk Officer has responsibility for leading various initiatives including: • The development of a concise Risk Appetite Statement with clearly defined risk tolerances to guide the risk management operations throughout the Bank. This would be supported by clearly defined roles within the governance structure to support the Risk Management Framework at all levels including, Board of Directors, Executive Committee, Department Heads, management and operational staff; • Oversight of the Disaster Recovery and Business Continuity Management Programme; • Facilitating training sessions in risk management at all levels; and • The development and implementation of appropriate tools and methodologies for risk measurement and reporting. In formulating the Bank’s Risk Appetite, requisite attention is given to the inherent risks associated with the broad areas of www.oecsbusinessfocus.com

ECCB Governor - Timothy Antoine monetary policy, financial sector stability, management of the Payment and Settlements System and the daily operational tasks undertaken to support these functions. It is recognised, however, that a culture of aggressive risk avoidance could potentially stifle the progress of the institution and erode the Bank’s ability to achieve its overall objectives. Consequently, being cognisant of the need to take appropriate risks, the Risk Management Framework emphasises highly effective risk management responsibilities at all levels of the institution. Three broad categories of risk have been identified and articulated in the Risk Appetite Statement namely: Strategic, Financial, and Operational, which are further divided in multiple sub-categories. The effective management of the various risks, as identified, is reliant on detailed policies, processes and procedures as defined and documented. Monitoring and reporting are also vital elements of the framework to ensure that the practices remain in accordance with international best practices and applicable to the prevailing operating environment. During the year, the Chief Risk Officer spearheaded the following activities as part of the Enterprise Risk Management implementation programme: • A review of the Bank’s corporate governance structure to ensure that the necessary infrastructure is in place to support effective risk management at the Bank; • The administering of a Bank-wide Risk Awareness Survey and follow-up risk awareness orientation sessions with all departments; • A revamping of the role of Surveillance Officers within departments to adopt a more risk-based approach. As a result, the designation was changed from Surveillance Officers to Risk Liaisons;

ECCB Deputy Governor - Trevor Braithwaite • A one-week training session for select staff across the Bank, along with representatives from ECCU commercial banks, in Enterprise Risk Management and Disaster Recovery and Business Continuity Management; and • The completion of a one-week training attachment at the Office of Risk Management of the CDB. Internal Management At its meeting of 9 June 2016, the Board Audit and Risk Committee (BARC) approved a three-year Strategic Plan and Revised Charter for the Internal Audit Department (IAD) which reflected a full assurance arrangement. The Strategic Plan and Revised Internal Audit Charter took into consideration the recommendations arising from the external quality review done by the KPMG and the Update Safeguards Assessment conducted by the IMF during the latter part of the 2015/16 financial year. As the Bank continued on the path of aligning the activities of the department with international best practices, all operational activities previously carried out by the IAD were reassigned to other areas within the Bank to allow the IAD to place greater focus on the function of assurance in keeping with its Revised Charter. The reassignment was necessary to ensure that there was no threat to the independence of the department. During the financial year the IAD completed the following audits: • The Human Resource Department’s effectiveness in providing value added services to the Bank; • The Research Department’s effectiveness in producing timely and effective policy advice to member governments; • Agency Office operations in three of the seven ECCB member countries, specifically as it related to the issue and redemption of currency; and • A follow-up audit of the Bank Supervision Department. ¤

OECSBusinessFocus Sep / Nov

FEATURE

Communiqué: 88th Meeting of ECCB Monetary Council

Communiqué: 88th Meeting of ECCB Monetary Council The Eighty-Eighth Meeting of the Monetary Council of the Eastern Caribbean Central Bank (ECCB) was held under the chairmanship of the Honourable Roosevelt Skerrit on 22 July 2017, at the Fort Young Hotel, Roseau, Commonwealth of Dominica. 1.0 Monetary Stability The Monetary Council received the Governor’s Report on Monetary and Credit Conditions in the Eastern Caribbean Currency Union (ECCU). The report assesses the recent trends in monetary and credit conditions, within the context of the Bank’s broader objectives of ensuring the stability of the exchange rate and exchange arrangements and the stability of the financial system. The key messages from the report were: 1. Monetary conditions were assessed to have eased during 2016 as the money supply continued to increase. However, credit conditions tightened, as reflected in the contraction in credit and the widening of commercial banks’ weighted average interest rate spread. 2. The exchange rate anchor remained stable and strong throughout 2016, supported by adequate foreign reserves. Exchange rate stability underpins monetary stability, thereby sustaining the confidence necessary for economic activity. 3. Consistent with global and regional trends, real output growth in the ECCU stood at 2.6 per cent in 2016, compared with 2.8 per cent in 2015. Having considered the monetary and credit conditions in the ECCU, the Monetary Council agreed to maintain the minimum savings deposit rate at 2.0 per cent; and maintain the Central Bank’s discount rate at 6.5 per cent. The Minimum Savings Rate is the lowest rate commercial banks can offer on savings deposits. The Central Bank’s Discount Rate is the rate at which the ECCB lends to commercial banks. 2.0 Financial Sector Stability For the year 2016, the ECCU financial system was assessed as stable. The resilience of the financial system to potential adverse shocks strengthened and major risks to financial stability in the ECCU diminished. However, the banking sector continued to be challenged by structural vulnerabilities, including correspondent banking relationships. OECSBusinessFocus Sep / Nov

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The improved performance of the financial sector is expected to continue into 2017 in line with stronger economic growth and improvements in the regulatory and supervisory framework. Notwithstanding, vigilance must be maintained to ensure that gains are sustainable. In keeping with its goal of maintaining financial stability, the ECCB would commence publication of a Financial Stability Report annually. The report is aimed at identifying risks and vulnerabilities in the ECCU financial system; assess the resilience of the financial system to domestic and external shocks; and provide information on the soundness of the financial system, and the various initiatives that regulators and governments are pursuing to mitigate risks to the ECCU financial system. 2.1 Recommendations to Address Commercial Banks’ Fees and Charges Having considered the recommendations from the ECCU Working Group on Commercial Bank Fees and Charges and the ECCU Bankers Association’s feedback, Council approved the implementation of the following measures to address concerns regarding increases in commercial banks’ fees and charges: 1. The side by side publication of ECCU selected fees and charges for commercial banks’ by territory, on the ECCB’s website no later than January 2018; and 2. The issuance of prudential standards on bank fees and charges by December 2018. 3.0 Fiscal and Debt Sustainability The combined overall surplus on the fiscal operations of ECCU member governments rose to $321.4m at the end of 2016, from $107.8m in 2015. The regional Debt to Gross Domestic Product (GDP), which was 79.3 per cent in 2014, declined to 73.3 per cent in 2015 and 72.5 per cent in 2016. The fiscal position of member governments is expected to continue to strengthen. Gains are expected in tax and non-tax revenue as economic activity increases and the Citizen by Investment (CBI) programmes investments proceed apace.

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At its 87th Meeting, held on 2 March 2017, Council agreed to recommend that member governments submit fiscal targets for the approval. Council therefore agreed to recommend to Member Governments that they implement mechanisms to secure Parliamentary approval of fiscal and debt targets, medium term frameworks as far as practicable with social partners, and for periodic peer review.

5.2 Amendments to the AML/CFT Legislation At its 85th meeting held on 22 July 2016, Council took the decision to recommend to Member Governments that the legal responsibility for Anti-Money Laundering and Counter Financing of Terrorism (AML/CFT) supervision and regulation of financial institutions licensed under the Banking Act be transferred to the ECCB.

4.0 Growth and Competitiveness The ECCB hosted the inaugural ECCU Growth Dialogue with Social Partners on 1 March 2017. The Dialogue sought to create a unique opportunity for social partners to engage the Monetary Council on the issue of economic growth and to forge consensus on a plan of action for addressing growth, competitiveness and employment in the ECCU. Following the Dialogue the ECCU Growth Action Plan was developed.

The Monetary Council therefore considered the proposed areas of amendment to the Anti-Money Laundering and Counter Financing of Terrorism Legislation (AML/CFT legislation) in Anguilla, Antigua and Barbuda, Commonwealth of Dominica, Grenada, Montserrat, St Kitts and Nevis, and Saint Lucia, to transfer the regulatory and supervisory authority of AML/CFT for institutions licensed under the Banking Act to the ECCB.

In keeping with its commitment to the implementation of the ECCU Growth Action Plan, the Monetary Council: 1. Endorsed the collaboration between the OECS Commission and the ECCB on the implementation of an ECCU Growth Action Plan; 2. Agreed to recommend that Member Governments appoint a focal point to coordinate the implementation of the Growth Action Plan; 3. Agreed to support in country consultations in conjunction with the OECS Commission and the ECCB on the Growth Action Plan. Council also agreed to urge commercial banks to increase lending to the private sector in an attempt to spur growth. Council noted with increased concern, the difficulties with payment settlement of traders selling agricultural produce in Trinidad and Tobago. Council further noted that the ECCB has submitted a proposal to the Central Bank of Trinidad and Tobago to resolve this issue and expressed the view that a resolution has to be found for this matter. Council urged that this long standing matter be resolved expeditiously. In the meantime, the Council Member for St Vincent and the Grenadines updated the Monetary Council on a solution that his government is advancing.

5.0 Legislative Reforms 5.1 Proposed Areas of Amendment to the Banking Act 2015 At its 86th Meeting held on 21 October 2016, the Monetary Council approved the establishment of a Ministerial Subcommittee of the Council, chaired by the Council Member for St Vincent and the Grenadines, to lead discussions with stakeholders on the proposed amendments to the Act and to facilitate the process through to its enactment. To this end, a Consultative and Legislative Drafting Workshop was held on 11 April 2017 in St Vincent and the Grenadines. ECCU Attorneys General, Parliamentary Counsel, Financial Secretaries and other representatives of the Ministries for Finance, representatives of the ECCU Bankers’ Association, local Bankers Associations, and representatives of the ECCB attended the workshop. The team discussed the policy issues related to the amendments and the concerns of the banking industry and reached consensus on the draft amendments. The Monetary Council approved the amendments to the Banking Act 2015; and agreed to urge Member Governments to secure passage of the amendments to the Banking Act 2015 by 31 December 2017.

6.0 Report From the Technical Core Committee on Insurance BAICO Council noted that the Plan of Arrangement (BAICO and CLICO) Act has been passed in all ECCU member countries and in the home jurisdiction of The Bahamas. Council further noted that once the agreements of the respective Courts are received, this would pave the way for the meeting of the creditors and a distribution to BAICO policy holders in the last quarter of 2017. With respect to CLICO, progress has been markedly slower and resolution is a greater challenge. The Technical Core Committee is exploring a number of options to have the issues relating to the CLICO policy holders addressed effectively. 7.0 Acknowledgement Council thanked Mr Maurice Edwards for his 28 years of unbroken service to the ECCB Board of Directors since 1990 in his various capacities including, Chairman of the ECCB Board Audit and Risk Committee. Mr Edwards demitted office as a member of the ECCB Board of Directors at the end of 30 June 2017. 8.0 Date and Venue of 89th Meeting of the Monetary Council Council agreed that the 89th Meeting of the Monetary Council would convene on Friday, 20 October 2017 via videoconference.

Photo (Left to Right) • Hon Victor F Banks, Chief Minister and Minister for Finance, Anguilla; • Dr the Hon Ralph E Gonsalves, Prime Minister and Minister for Finance, St Vincent and the Grenadines; • Timothy Antoine, Governor of ECCB • Hon Gaston Browne, Prime Minister and Minister for Finance, Antigua and Barbuda; • Hon Roosevelt Skerrit, Prime Minister and Minister for Finance, Commonwealth of Dominica (Chairman); • Dr the Hon Timothy Harris, Prime Minister and Minister for Finance, St Kitts and Nevis; • Dr Ubaldus Raymond, Council Alternate for Saint Lucia; • Hon Donaldson Romeo, Premier and Minister for Finance, Montserrat. ¤

OECSBusinessFocus Sep / Nov

The ECHMB Creating New Pathways To Growth And Profitability

Creating New Pathways To Growth And Profitability The Eastern Caribbean Home Mortgage Bank (ECHMB) was established by the Monetary Council of the Eastern Caribbean Central Bank (ECCB), to develop the mortgage industry and the money and capital markets as a catalyst for economic growth and development. The critical roles the ECHMB was created to fulfill within the financial system are as follows: 1. The purchase of primary mortgages from financial institutions to recycle liquidity into the system; 2. The development of the capital market through the issuance of bonds; 3. The improvement of both underwriting and building standards for the residential housing industry by establishing critical performance benchmarks. The ECHMB began commercial operations on April 22nd, 1996, with shareholder capital of EC$10 million and the ECCB as its largest shareholder. Twenty-one years later, the Bank has grown to a formidable business with total assets of over $246 million, funded by debt issued 0n the capital market of $184 million and equity capital of $61 million. The ECHMB has provided more than $743 million in liquidity support to financial intermediaries throughout the ECCU, including more than $251 million supplied to indigenous financial intermediaries at the height of the global financial crisis. Global Crisis Fallout During the past 21 years, the ECHMB has been true to its primary mandate conferred on it by the Monetary Council of the ECCB to provide a secondary market for residential mortgages.

OECSBusinessFocus Sep / Nov

However, the landscape of the regional financial system has transformed rapidly over the most recent years and the original mandate is becoming archaic. The period of excess liquidity that followed the financial crisis affected the viability of the secondary mortgage market within the ECCU. Not only have primary lenders stopped purchasing mortgages, but they began to repurchase their mortgage portfolios previously sold on the secondary market to the Bank. These conditions combined to cause a decline in ECHMB’s revenues and, as a result, the Bank’s profitability was preserved through the containment of expenses. The Board of Directors opined that while the Bank’s financial performance continued to be commendable, the philosophic underpinnings and objectives of the ECHMB required re-assessment. The ECHMB therefore needed to be re-engineered to survive the changing economic conditions regionally and internationally to remain viable. The result of the introspection suggested that the ECHMB needed to infuse new business lines and markets in its operations. Embarking on the cusp of operational resilience, the ECHMB took the bold step of revamping its business model and broadening its scope of operations to play a more expanded role in the development of our region’s money and capital markets. Adapting For The Future In this regard, the Board of Directors has articulated a new strategy for the ECHMB which focuses on the following strategic priorities: 1. Pursuing a growth agenda through expansion of the money & capital market and development of the secondary mortgage industry in the ECCU; 2. Increasing the range of products and services offered by the Bank; 3. Extending the Bank’s target market to the wider Caribbean, USA and Europe; 4. Strengthening the corporate governance structure, policies and functional structure of the Bank; 5. Rebranding of the ECHMB. As the institution sets sail on the third decade of its operations, we envisage that the ECHMB through its pioneering efforts will serve as a fitting model for more regional endeavors by both the public and private sectors in the ECCU. ¤

Innovative

Introduce new ideas and creative thinking to the capital market and mortgage industry

Excellence in Customer Service

Understanding and fuifilling the capital market and the housing needs in the ECCU

Excellence in Risk Management

Promote the highest standard in corporate governance and risk management

Excellence in Organisation & Staffing

Attract, retain and develop the best talent

Stakeholders Driven

Promote the interest of providers of capital and other connected individuals www.oecsbusinessfocus.com

Eastern Caribbean Institute of Bankingof Eastern Caribbean Institute and Financial Services Banking and Financial Services

Leading the Way to Higher Levels of Performance with tight work schedules, in that it offers flexibility, convenience and financial benefits resulting from educational and career advancement.

Mr. N. Analdo Bailey, Chief Executive Officer The Eastern Caribbean Institute of Banking and Financial Services (ECIB) was established 21 years ago on the direct initiative of the Eastern Caribbean Central Bank (ECCB). The Institute’s mandate is to promote and advance the banking profession and matters of interest to staff of financial institutions, by contributing to the continued development of the study and practice of banking and finance. Its main domain is the eight states comprising the Eastern Caribbean Currency Union; however, through collaboration with other regional Training Institutes its area of operation has been extended to include all territories of the wider Caribbean. Vision and Operating Context The enabling vision that supports the Institute’s activities is to be recognised as the preferred provider of human resource development training for the banking and finance sector, and being an active partner supporting corporate and industrywide performance improvement efforts. Since its inception, the ECIB has acquired competencies and modalities in training development and delivery, and pioneered video-conferencing across CARICOM. Through its video-conferencing facility, the Institute has facilitated a number of important meetings, including Meetings of CARICOM Heads of Government. This videoconferencing has enhanced communication and collaboration between organisations and has also saved regional entities, including the ECCB, the OECS Secretariat, the University of the West Indies and CARICOM, enormous cost and time. Through videoconferencing and other distance learning initiatives, numerous young persons employed in the regional banking and finance sector, have been able to remain on the job and without having to travel overseas, pursue university level training that have resulted in both academic certification and professional designations. This type of training pioneered by the Institute is especially appealing to staff of Member Institutions

Community Engagement ECIB, as a member of the Eastern Caribbean Central Bank family unit, collaborates with the ECCB in its Public Education and financial literacy initiatives. The Institute in conjunction with the Eastern Caribbean Securities Regulatory Commission (ECSRC) and the Eastern Caribbean Securities Exchange (ECSE) is jointly responsible for the training of persons preparing for the Eastern Caribbean Securities Market Certification Examinations. The networking with corporate, government and other social partners helps to address community-wide issues, thereby achieving greater transformational impact. The Institute’s current operational focus is the expansion of Knowledge Capabilities and Human Capital Formation necessary to support quality performance in the banking and finance sector, and the development of Social Capital in the wider community. Ongoing Activities Across The ECCU In its ongoing commitment to the professional development and training of persons engaged in the fields of banking, finance, and investment, the institute undertakes periodically regional and local workshops, seminars, discussion forums, research and investigatory activities covering the following areas • Education and Knowledge Development • Productivity and Performance Improvement • On-the-job Competencies Development • Advocacy and Promotion • Academic Qualifications • Enhanced Corporate Governance • Professional Designation and Training • Social Capital Enhancement • Best Practices and Benchmarking • Financial Literacy and Money Management What Of The Future Instability is the new order and the sustainability of organizations but be centered on legacy and relevancy. The Institute has accomplished much during the first twenty years of its existence, having focused on the critical training needs of the time. However, the changes that have occurred in the international and regional environments have warranted adjustments in approaches to training needs. The Institute is therefore faced with the challenge of upgrading in order to remain relevant to its stakeholders. Sir Errol Allen, former Deputy Governor of the Eastern Caribbean Central Bank, is President of the Institute. The Administrative Office headed by Mr. N. Analdo Bailey, Chief Executive Officer, with Mrs. Sheryl Evans, as Administrative Officer is located at the ECCB Financial Complex, Bird Rock Road, Basseterre, St Kitts. ¤

OECSBusinessFocus Sep / Nov

FEATURE

The Eastern Caribbean Stock Exchange

Looking To The Future By Trevor Blake, Managing Director

The ECSE is a fully electronic exchange, which embodies some of the most modern securities market features available. Its operating environment is fully dematerialised (wherein physical certificates are completely eliminated), and its advanced technological platform allows seamless real-time trading across geographical boundaries. Trading is fully electronic, and remotely accessible, enabling broker-dealers to trade securities securely and reliably from diverse locations. Vision For Financial Markets Launched in 2001, the Eastern Caribbean Securities Exchange (ECSE) was established as a part of the money and capital market development programme undertaken by the Eastern Caribbean Central Bank (ECCB), as it sought to fill some of the gaps identified in the financial infrastructure of its member states. These deficiencies included an excessive degree of bank-centricity, wherein financial intermediation was based primarily on bank financing. Avenues for regional investment were also limited, as were pricing and distribution mechanisms for securities and capital flows across the Eastern Caribbean Currency Union (ECCU). The ECSE was developed to address some of these gaps. In general, the ECSE and the markets it hosts were expected to significantly improve the efficiency of the financial system in mobilising and allocating resources across the ECCU. This sought to address not only the price at which financial resources are channeled to the productive sectors of the economies, but also to ensure that the appropriate forms of financing are readily available. The ECSE has two wholly-owned subsidiaries, the Eastern Caribbean Central Securities Depository Ltd (ECCSD) and the Eastern Caribbean Central Securities Registry Ltd (ECCSR). The OECSBusinessFocus Sep / Nov

ECCSD handles the post-trade activities, primarily clearing and settling the trades executed in the Trevor Blake primary and secondary markets. Settlement takes place at T+1, ie one day after the trade is executed, and this super-efficient cycle reduces the risk of default and other related risks. The ECCSR is the registry that maintains the securities holders’ records in electronic or book-entry form. With dematerialisation, the positions of holders of shares and other securities must be kept in an official centralized electronic register, in a secure and easily retrievable manner. The ECCSR also serves as a transfer agent facilitating and recording transfers of ownership of securities both from market trades and other methods of transmission. Also, given its unique position as the repository of securities holders’ information, and ability to leverage the ECSE Group’s interface with the payment system in the ECCU, the ECCSR acts a paying agent, making payments of dividends, interest and principal on behalf of its various clients. The launch of the ECSE created the Eastern Caribbean Securities Market (ECSM) as the first electronic regional market in the Western Hemisphere. Just over one year later, in November 2002, the Regional Government Securities Market (RGSM), was launched. At its launch on 19 October 2001, the ECSE had a single listing, The Bank of Nevis Ltd (BON), with a market capitalisation of $37.4 million. From these humble beginnings, the number of listing has grown to 129 at 11 August 2017, including 14 equities with an overall market capitalisation of $8.2 billion, and 115 debt securities with a nominal value of $2.9 billion. www.oecsbusinessfocus.com

Who Is Listed? The listed equities represent a range of industries, including utilities, financial services, trading, telecommunications and real estate. This represents a considerable degree of diversification, sectorally, and geographically, being spread across 5 OECS countries, and Barbados. The listed debt securities also provide an unparalleled level of diversification, comprising instruments issued by several sovereigns and a corporate issuer, and straddling maturities ranging from 91 days to 32 years. Several of these are also denominated in US dollars. ECSE Listed Companies • Bank of Nevis Ltd (BON – St. Kitts & Nevis); • East Caribbean Financial Holding Company Ltd (ECFH – St. Lucia); • St. Lucia Electricity Services Ltd (SLES – St. Lucia); • St. Kitts Nevis Anguilla Trading & Development Company Ltd (TDC – St. Kitts & Nevis); • St. Kitts-Nevis-Anguilla National Bank Ltd (SKNB - St. Kitts & Nevis); • Dominica Electricity Services Ltd (DES – Dominica); • S L Horsford & Company Ltd (SLH - St. Kitts & Nevis); • CIBC FirstCaribbean Int’l Bank (Barbados) Ltd (FCI – Barbados); • Cable & Wireless St. Kitts & Nevis Ltd (CWKN - St. Kitts & Nevis); • Republic Bank (Grenada) Ltd (RBGL – Grenada); • Grenada Electricity Services Ltd (GESL – Grenada); • Grenreal Property Corporation Ltd (GPCL – Grenada); • Bank of St Vincent & the Grenadines Ltd (BSVG – St. Vincent & The Grenadines); • Grenada Cooperative Bank Ltd (GCB – Grenada)

Bright Future The ECSE has made significant strides over the past 16 years in delivering on its mandate and has enabled companies to raise over $157.0 million in new capital by means of Initial Public Offerings (IPOs) and Additional Public Offerings (APOs). Even more noteworthy, Governments have raised some $11 billion, and reduced their financing cost, enhancing their ability to catalyze further economic development. Both institutional and retail shareholders have benefitted from the diverse range of ECCU-wide investment opportunities provided by the corporate and Government securities markets. Investors are now able to participate in new securities offerings, and to buy and sell securities seamlessly across the ECCU. The ECSE is also playing its part in attempting to raise corporate governance standards in the ECCU. The listing requirements demand adherence to the statutory continuing disclosure obligations and other reporting requirements. In addition, the ECSE has partnered with the internationally recognised and accredited educational institution, ISCA Canada, on the holding the acclaimed Directors Education and Accreditation Programme (DEAP) in the Caribbean. Notwithstanding, the ECSE and the markets are far from having achieved their full potential. Indeed, it may be said that the surface has just been scratched. ¤

Caribbean Strategy

OECSBusinessFocus Sep / Nov

FEATURE • De-risking: Impacts and Solutions • Basel II and IFRS 9: Where are we? • Credit and the Macro-environment

ECCB Connects: Who We Are, What We Do And How We Serve You!

As part of the thrust to provide the public with a better understanding of the role and functions of the ECCB and how its work affects their lives, the Bank launched its weekly programme, ECCB Connects in April 2016.

ECCBis aired Connects: Who We What We Do And How We Serve You! The programme in seasons which runAre, for three consecutive months with new programmes released on Wednesdays. As at Financial Information Month 31 July 2017, 56 programmes had been released on the Bank’s Financial Information Month is YouTube channel and Facebook page. The topics covered included: a regional financial, economic, • How the ECCB Issues and Manages EC Currency; business and entrepreneurial • Steps to Bank Resolution; education campaign executed • How the Work of ECCB Economists Impacts the Lives of the in October throughout the People of the ECCU; Eastern Caribbean Currency • Correspondent Banking Relations; Union (ECCU) since 2002. The • Banking Products and Services; programme for the month is planned and implemented through • Counterfeiting; the collaborative efforts of the ECCB, ECCU member governments, • Electronic Payments System financial and academic institutions, the media, other private and • Retirement Planning public sector institutions and community based groups. • Personal Financial Management • Eastern Caribbean Securities Exchange – A Viable The campaign incorporates a series of initiatives designed to InvestmentOption. support the goals of a financially developed and vibrant ECCU region that fosters strong and sustainable economic growth and Country Outreach Visits Country outreach programmes were coordinated as part of the the improved well-being of the region’s citizens and residents. Bank’s new thrust to deepen its stakeholder communication through more focused engagement and discussions. The Governor travelled to the eight ECCB member countries to meet with the Heads of State, Cabinets, Leaders of Opposition, Chambers of Commerce, social partners and the media to share the Vision for the ECCB.

The theme for Financial Information Month 2017 - Retirement Planning: Making Your Golden Years Golden, is geared towards sensitising the public on the realities of retirement for current and future generations of retirees and providing information on the actions they need to take now to help ensure a good quality of life during the Golden Years. The areas of focus during the month will include: savings, investment and insurance options, debt and risk management, legacy planning, cyber security, the cost of retirement, retirement benefits and health and wellness. This year’s logo design shows human figures of increasing sizes walking along a colourful pathway which ends with a pot of golden eggs. The portrayal of the human figures of increasing sizes walking along a colourful pathway signifies retirement planning starting from the first day of employment and continuing throughout the individual’s income earning years; while the raised hands of the last figure signify jubilation having come to the end of one’s working years and confidence in knowing that the time has come to reap the benefits of planning for retirement.

27th Annual Conference With Commercial Banks The conference was held from 10 - 11 November 2016 under the theme, “The Way Forward: Commercial Banks in a New Environment.” Representatives from commercial banks and nonbank financial institutions from the eight ECCB member countries attended and participated in relevant and timely discourse pertaining to the advancement of the banking sector within the sub-region. The topics covered included: OECSBusinessFocus Sep / Nov

The coloured pathway represents the varying events that one will encounter on the journey through life and the pot of golden eggs at the end represents the rewards to be gained from retirement planning. The pot of golden eggs further portrays the ability to maintain a good standard of living; smoother transition from active working life to retirement; a sense of achievement and financial independence.

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Financial and Business Training The ECCB is committed to arming the people of the ECCU with the knowledge to help develop their entrepreneurial and financial management skills. During the year, emphasis was placed on small business development. Workshops for small business owners were held in four of the eight member states.

In The Community The ECCB’s community outreach initiatives are designed to foster development within the ECCU through advocacy and support, capacity building, collaboration and information sharing. 21st Sir Arthur Lewis Memorial Lecture “The Gig Economy, Secular Stagnation and Sir Arthur Lewis” Professor Avinash Persaud, non-executive Chairman of Elara Capital PLC and Intelligence Capital Ltd in the UK and Emeritus Professor of Gresham College, UK. In his lecture, Professor Persaud articulated how the ideas of Sir Arthur Lewis laid the foundation for understanding global development in the 21st Century and the new gig economy. The lecture gave insights into how what are often seen as current events, were foretold in Sir Arthur Lewis’ tale of growth under unlimited supplies of labour, long before the internet was even imagined. This year, a Question and Answer segment was added, giving the audience the opportunity to engage the lecturer after his presentation. Following the lecture, Governor Antoine, presented the 8th Annual Sir Arthur Lewis Memorial Book Award to Mr Nigel Scott, Principal of the St Vincent and the Grenadines Community College. The book award is presented annually in alphabetical order to a selected college in the respective ECCB member country. This gesture accords the college the opportunity to select publications for its library collection.

ECCU Best Corporate Citizen Award The Republic Bank (Grenada) Limited was awarded the 2016 Best Corporate Citizen Award Among ECCU Commercial Banks for its outstanding contribution to the overall development and welfare of the people of Grenada.

The Republic Bank (Grenada) Limited also received the Good Corporate Citizen Awards for Cultural Development, Educational Development, Environmental Awareness and Sports.

The other banks which received Good Corporate Citizen Awards were: National Bank of Dominica, Ltd, which received the Good Corporate Citizen Awards for Customer Service and Financial Education and Empowerment; and Antigua Commercial Bank, which was presented with the Good Corporate Citizen Award for Community Outreach and Social Services. OECS/ECCB Under-23 Netball Tournament In 1991, the ECCB, in keeping with its thrust to promote regional integration, began collaboration with the OECS to host the OECS/ ECCB Under-23 Netball Tournament. The ECCB’s continued sponsorship of the tournament over the years demonstrates the Bank’s vision of fostering regional integration and its commitment to the overall development of the region’s young women through sports. 2017 marked the 27th year of the tournament which was hosted at the Tanteen Netball Complex in St George’s, Grenada from 16 – 20 June. Six teams competed for the championship title: Anguilla, Grenada, Montserrat, St Kitts and Nevis, Saint Lucia and St Vincent and the Grenadines. Team Grenada walked away as the champions for the third consecutive year.

In keeping with its commitment to the overall development of the region’s youth, the ECCB incorporates a development session which has been a key feature of the tournament since 1999. This theme of the session was: Building a Success Driven Team. Yvette Payne, Head of TVET at the T.A. Marryshow Community College in Grenada, facilitated the session. ¤

OECSBusinessFocus Sep / Nov

FEATURE

De-risking May Have Cataclysmic De-risking May Have Cataclysmic Impact On Caribbean Economies Impact On Caribbean Economies If you talk to the experts, de-risking is one of the most discussed - and least understood - threats against the Caribbean banking industry. Although commentators have highlighted the issue for the past several years, with high level lobbying via multiple governments and stakeholders ongoing in Washington, there is still a general haziness among the lay population as to why the threat of severed relationships with correspondent banks could be apocalyptic for the combined economies of the region’s small island developing states and beyond. Business Focus wanted to shed some light on the raison d’etre for de-risking, its potential hazards and the long term benefits of fighting it every step of the way, through a professional, political and consumer movement, the likes of which has never been seen in the past. Saint Lucian career banker and 1st National Bank Managing Director, Johnathan Johannes was on hand to provide insight and explain the issues. By Dee Lundy-Charles People forget that the banking system is what lets the economy churn and operate. It allows investors to extract profits, businesses to pay suppliers, fuels our tourism industry by supporting credit card transactions. Whilst we don’t see it or feel it, the banking sector is like the invisible hand that touches every single transaction. It’s not just about loans and deposits, it’s about facilitating trade and payments. We do that by utilising networks of correspondent banks, that allow us to access international markets. So any threat to the relationships that allow for foreign currency transactions in and out of Caribbean nations would be potentially devastating to the activities that fuel OECS island economies? Imagine the worst case scenario. Your largest supermarket chain wants to import a forty-foot container of products from their supplier in Miami. There is no way for that company to receive a wire or a draft if there is no correspondent bank relationship to effect the payment. You would literally have to find a way of getting a duffle bag full of cash to the USA. By far the hardest hit jurisdiction thus far would have to be Belize, think of it a ground zero for de-risking. There have been reports of business men resorting to shipping cold hard cash, actual bills across borders to settle loans and transactions. What is the underlying cause of de-risking? Banks may choose to restrict or rationalise their correspondent banking relationships for a number of reasons. Guidance OECSBusinessFocus Sep / Nov

Johnathan J. Johannes Managing Director of 1st National Bank St. Lucia Ltd. published by FATF in October 2016 cited supervisory penalties, changes in banks’ financial risk appetites and anti-money laundering (AML) compliance costs as key drivers of de-risking. Meanwhile, low interest rates have led to shrinking profit margins in correspondent banking, essential leading some banks to welcome the opportunity to exit a line of business, which is now less lucrative than in the past. If I had to break it down to its simplest terms, high risk demand high reward, maintain relations is seem as a high risk for correspondent banks, a risk that is not matched by the reward. Is it only about cost, or is there a reliability issue involved with the Caribbean banking sector? That’s a good question. Is it down to cost or is it down to reputation? All I can say is that the majority of cases I have come across of institutions being fined because of their correspondent relationships do not have their origins in the Caribbean, there have been numerous examples in Central and South America, and Eastern Europe to name a few but I have yet to come across www.oecsbusinessfocus.com

a major international fine levied on a Correspondent Bank due to their relationships with Caribbean Banks. So in my opinion, it boils down to risk versus rewards cost, and unfortunately for us, the deck is against us. As stated earlier, Belize is ground zero for Caribbean bank derisking, if memory serves me correct, only two commercial banks maintain relations, one being Scotiabank. Think of the impact that can have on your tourism product, your mom and pop stores, remittances from relatives overseas. Thankful industry experts and partners have moved swiftly to seek alternative routes to continue engaging in US dollar transactions, and have moved swiftly to open other channels. Given what is at stake then, what is being done in real terms about the threat of de-risking? There is no doubt that there is a general awareness of the term among business commentators and economists, but how does the message filter down to the consumer? I must applaud our CARICOM leaders and our regulator The Eastern Caribbean Central Bank because they continue to discuss it at almost every meeting that they have. They have understood over time that it is not a crisis facing our banking sector, it is a crisis facing our Caribbean economies, and I believe that is the realisation our constituents to arrive at. What would help out tremendously is if people were more aware that this threat is looming, that we [the banks] are under such pressure. It links back to the need for a stronger compliance regime in the Caribbean. We have a very strong structure, hence the reason these fines are not being levied against the correspondent banks for transactions originating in Caribbean organisations. The regime is strong, our regulators are some of the best in the world if you ask me, they guided us through the global crisis pretty much unscathed; we have robust regulations and procedures. These all bod well of our industry, our sector and our economies.

to comply to a much higher standard than some of the larger organisations, because if we lose a correspondent relationship, it is a nail in the coffin of that institution. Is there a Caribbean strategy for sustaining the pressure against de-risking? How do countries act through governments and NGOs to protect their economies? The whole issue of de-risking has been raised at several CARICOM meetings, and the seriousness of the threat was outlined at the Heads of State meeting in Guyana in February 2017. That was the first time it was cemented that de-risking is a Caribbean problem. People say sometimes that all these leaders do is talk, what good ever comes from that? Well, in my opinion, the more they talk about it, the more they are educating their constituents who can then lobby to stave off the de-risking effort. Saint Lucia’s Prime Minister Allen Chastanet has said correspondent banking wasn’t targeted towards the Caribbean but was aimed at eliminating money laundering and imposing huge penalties. He has reached the Florida Caribbean Cruise Association and pointed out the problems that cruise tourism will face if de-risking progresses towards catastrophic impact. These are the kind of stakeholders who can have influence in Washington because the effects on their business would be huge. They have a more powerful voice than our small island states have, even collectively and add their voice to our lobbying effort will only serve to improve our odds. At the institutional level, national level, CARICOM level, the Commonwealth level, we must all do what we can. For the Caribbean Bankers Association, it is a burning issue that we continue to address with international partner associations, and one that we do not see going away anytime soon unless we can change hearts and minds of the people who make the regulations. This is clearly a major paradigm shift. What sort of innovative thinking is needed to develop the new reality for banking?

Often times, customers complain ‘why do you ask all these questions? Why do you want all this information now, after I’ve been with the bank for twenty years?’ And it speaks to a lack of knowledge on the customer’s part, no clear message from bank employees as to why we need ‘all this’ information, and a general lack of sensitization to the issues related to de-risking. The international banks want to know who we do business with in order to take that risk of continuing a correspondent relationship, so they want us as Caribbean banks to have better information on our files about our customers.

It all comes down to dollars and cents, so if I am the head of a global bank, I have to understand that having a relationship with the Caribbean is going to be profitable for me. And if we can find a way to make a relationship with the Caribbean more attractive; more profitable to the global banks, they will continue to do business with us. If the cost continues to outweigh the rewards, as with any business, you would have to re-examine the relationship. Simply put, we must sell our Caribbean banking system as safe, secure and profitable to international correspondent banks. That is the crossroads we find ourselves at.

Are customers in the Caribbean banking system being asked for more or different information than our international peers?

In terms of ‘out-of-the-box’ thinking, there are a lot of ideas floating around during discussions among bankers these days. We have to be thinking as a Caribbean entity, so how about a collaborative approach where the Caribbean banks and government give consideration to possibly buying or establishing a bank in the US system to act as our Corresponding Bank, handling all the regions transactions. This is what makes the discussion exciting, because a paradigm shift always forces people to think outside the boundaries of today.

No, I don’t think so. Whenever I go to open a bank account, I have a standing joke that the amount of information I share with my banker is sometimes even more than I share with my wife! And I go through all this just to give you my money! As an insider, I sometimes get really frustrated and sometimes feel exposed responding to these questions - and I know, and understand the reasons why I have to – just imagine what it is like for our average customer, some have described it as invasive and painful. But as more people get to understand the regulations and the pressure the banks are under, plus the stress placed on the economy by a de-risking exercise, I believe they will be more understanding about the international standards that we have to comply with. In fact, small indigenous banks feel pressured

This is not business as usual, so challenging the status quo and coming up with innovative solutions will result from this change. I am confident that our Caribbean ingenuity will overcome this challenge, but the question is, will the goalposts shift again? ¤

OECSBusinessFocus Sep / Nov

FEATURE

Uncertainty Cannot Be An Excuse For Inaction

Uncertainty Cannot Be An Excuse For Inaction By: Rendra A. Gopee

Following is an excerpt of the key points of the EY 2017 global banking outlook survey - a survey of senior executives at almost 300 banks across the globe. The survey shows that only 11% of respondents expect their banks financial performance to improve significantly in the next 12 months. And while the survey indicates that the risk and regulation agenda will continue to dominate the attention of management and decisions about spending over the next year, our research shows that many of the world’s largest banks are starting to think about how to improve financial performance by growing or optimizing their businesses. While the challenge for banks is how, in a year of uncertainty and with little cash to invest, they can improve their financial performance, we expect the shift from “keeping safe” to “making things better” to gather pace over the coming year. We believe there are short- and medium-term steps banks should take in five specific areas to help them address both a “keep safe” and “make things better” strategic agenda. • Reshape: Rethink basic organizational structures, consider M&A strategies and find new ways to grow profitably in response to regulatory and market pressures. • Control: Ensure that financial risk and financial performance are singularly sourced, measured, validated and reported.

OECSBusinessFocus Sep / Nov

• Protect: Holistically address threats to business continuity from both external and internal actors, including cyber and financial crime. • Optimize: Use new operating models and technologies to address the challenges of margin pressure, customer experience and compliance. • Grow: Regain profitable relationship growth in an era of heightened customer expectations and nontraditional market entrants. Rendra Gopee is a Partner within our Assurance and Advisory practice. He leads the Business Development efforts within Ernst & Young in the Caribbean (EYC). Rendra brings over 24 years of public accounting experience serving with large, complex clients across a broad range of industries both regionally and internationally. He has experience serving a diversified portfolio of clients with an emphasis on Financial Services, Public Sector, Retail and Distribution, Utilities, Public companies and large multinationals.

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“ 2017 must be the year that banks move decisively to improve their profitability. ” Our 2017 global banking outlook survey confirms these trends and reveals that risk and regulation will continue to dominate management attention over the next 12 months. According to the survey, the top five strategic priorities for banks in 2017 are: 1. Managing reputational risk, including conduct and culture risks 2. Meeting regulatory compliance and reporting standards 3. Enhancing data security and cybersecurity 4. Meeting capital, liquidity and leverage ratio requirements 5. Recruiting and retaining key talent Notably, four of the five priorities in this list are aligned with the “keeping things safe” agenda. Despite this, we expect 2017 to also be the year that banks increasingly look for ways to improve their ROE. According to our analysis of the publicly stated strategies of 30 major banks around the world, while their strategic priorities vary across regions, many are focused on “making things better” by growing and optimizing their business. We believe it is possible for banks to reconcile conflicting priorities to improve their financial performance, while also enhancing their control and protection agenda. • Reshape the business: Banks must clearly articulate a core strategy - do they want to dominate local markets, be regional champions or establish themselves as universal super banks that provide a full range of services to a global customer base?

to optimize their balance sheets in the face of multiple market and regulatory constraints. • Grow the business: To regain profitable growth, banks must determine the clients they want to serve and harness the power of analytics to serve those customers better. They must also define their product portfolios and the geographic footprint of the organization. Our analysis also revealed that the maturity of strategic actions banks are taking to keep safe and make things better varies significantly. Looking at growth, for example, some banks are simply seeking to protect their existing market positions, while others are ambitiously investing in new technologies and customer segments. There is a similarly divergent approach to “reshape,” with some banks maintaining their current business structures while exiting selected non-strategic markets, and others actively building alliances with companies in an effort to find new ways to grow profitably. To drive meaningful ROE improvements banks will need to innovate. They must look for new ways to operate their business and deliver against client expectations. Doing this alone will be challenging, and we believe they will likely become increasingly dependent on an ecosystem of providers to help them drive innovation and implement change. ¤

“ The successful execution of strategies

in each of these areas, will require banks to think and operate differently. Innovation will be necessary to drive meaningful improvements in performance. ”

They will need to identify their strengths and then restructure operations to reflect them, while also being more mindful of their legal entity structure and the danger of ignoring innovation. • Control the business: As compliance and risk management remain a priority, banks must also enhance their application of the three lines of defense to nonfinancial issues, strengthen their focus on vendor management and simplify their supply chains to manage associated risks. At the same time, banks must improve the efficiency of the risk management function, using technology or centers of excellence to scale down testing and surveillance teams. • Protect the business: Banks must rebuild trust. The right organizational culture will be a key differentiator for leading banks. In addition, given the ongoing- and extensive threat of cyber- and financial- crime, banks must make their systems secure, use technology to maximize the coverage of internal protection and adequately train and supervise their staff. In addition, banks must embed a focus on cybersecurity in their agenda. • Optimize the business: Banks must develop new operating models that take advantage of technology and partnerships to improve service and reduce cost. Over the medium term, we expect utilities to play an increasingly significant role in driving efficiency. In addition, banks will need to do more OECSBusinessFocus Sep / Nov

FEATURE

What Is Blockchain And What Is Blockchain And How It Is Changing Finance How It Is Changing Finance By: Ernst & Young

New information and communication technologies are significantly impacting, and in fact disrupting business, including Finance. This article addresses how blockchain is changing Finance. There are many specific challenges which can be addressed by blockchain, including: Manual processes: A great number of processes are still in paper form, opening the door to unnecessary operational risks. Disorganized compliance data: Data is not transferred between departments and organizations efficiently, resulting in unreliable customer due diligence. Siloed systems: Trading, order management, and settlement processes are housed in separate systems, in addition to multiple copies of shared ledgers, leading to time-consuming and expensive reconciliation processes. Lack of transparency: The mixture of manual, siloed systems and disorganized data creates databases with few actionable insights and analysis paralysis. Cyber security risk: Legacy systems give rise to cyber security risk as a result of segmented IT infrastructure. A successful hack into just one backdoor can compromise the whole organization. So what is blockchain? It is a distributed infrastructure technology held collaboratively which enables a decentralized exchange of trusted data. It uses cryptography to allow each participant on the network to manipulate the ledger in a secure way without the need for a central authority. Blockchain technologies enables storage of data at the transaction/record level in an immutable shared database while allowing users to access and validate data with minimal effort. And what is the value of distributed ledger technology? Distributed infrastructure is technology that allows the distribution OECSBusinessFocus Sep / Nov

“ Using cryptography, blockchain is a distributed infrastructure technology held collaboratively which enables a decentralized exchange of trusted data ” of trusted value transfer and execution - the disintermediation of intermediaries – when the network becomes the intermediary. Therefore blockchain is a decentralized ledger that keeps a record of each transaction that occurs across a peer-to-peer network, and it allows us to: Store digital records - blockchain allows control of information through secure, auditable, and immutable records of transactions and assets. Exchange digital assets - users can issue new assets and transfer ownership in real time without banks, stock exchanges, or payment processors. Execute smart contracts - self-governing contracts simplify and automate lengthy and inefficient business processes. In this context, blockchain can impact/disrupt Finance in a number of areas, including: Treasury – this corporate function can be transformed by implementing a blockchain-based clearing and settlement function within the company’s financial network. The immutable nature of such a network lends huge credibility to financial risk management while effectively managing cash flow based on upto-date financial numbers. Cost Allocation – blockchains with inbuilt smart contracts capability can enable financial applications to allocate costs on a real-time basis eliminating long, manual and error-ridden www.oecsbusinessfocus.com

CFO enablement role – a distributed ledger will allow for more efficient and transparent intercompany transactions that are settled simultaneously. Less manual attention will be needed for reconciliation and consolidation processes, allowing for a more efficient finance function. And, blockchain’s data trail will allow for more accurate monitoring of transactions, balances and project results. CFO development role – with improved efficiency and strategic analysis, the finance function will be able to devote more time and attention to organizational strategy. With some public transactions and improved audit approaches, the CFO will be able to communicate to the marketplace more quickly and with more clarity and transparency. It is EY’s point of view that blockchain can prove to be a disruptive technology which the C-suite should monitor closely as its impact to business generally and Finance specifically can be significant. Perhaps CEOs and CFOs should give thought as to how this technology can be harnessed in their business rather than being reactive to change that is likely to be inevitable. ¤

processes, thus improving efficiency and significantly reducing cost of the overall function. Intercompany transactions – the ideal application of blockchain for intercompany would allow for instant transactions with immutable documentation. This would simplify the intercompany transaction process, automating dispute resolution, and eliminating manual invoicing and process. Contracting – using a digitized contracting system, two anonymous parties can trade and transact without the involvement of a middleman or a trusted party. This can help reduce or eliminate costs associated with monitoring and enforcement. Property and asset management – by using a distributed ledger, tracking the provenance of a property can be simplified and strengthened by transacting a digital token through the blockchain system, eliminating the chances of corruption in transaction trail. This establishes the authenticity of the certificates, enabling buyer trust and eliminating provenance checks. Identity management - blockchain provides an ideal platform to manage vulnerable peer-to-peer assets such as identities. The inherent fraud management capabilities of blockchain, through hardened cryptography and distributed ledgers, allow for an easy and secure way to share digital identities. In the view of Ernst And Young, there are many ways in which the CFO role could be impacted, including: CFO execution role – blockchain’s distributed nature decreases the opportunity for fraud or reporting inaccuracy. • Immutable transaction history provides a single documentation trail that will streamline the audit process and allow for greater focus on systems and controls. • Centralized data source allows for greater reporting speed and validity for both internal and external stakeholders.

Devindra Ramnarine leads EY Caribbean’s Government and Public Sector practice. He brings over 25 years of direct experience in planning, leading and managing technology-enabled transformation in the public and private sectors. He has developed national ICT strategic plans for several countries and managed complex high-risk projects in the public sector. Devindra has masters’ degrees in Electrical Engineering and Telecommunications and has considerable experience in telecommunications, information technology, project management, strategic planning and e-government. He also served the countries of the Commonwealth as Head of the Commonwealth Connects Secretariat and Adviser, Public Sector Informatics at the Commonwealth Secretariat in the UK. Lerone Brathwaite is a Senior Manager with the Advisory Services, specializing in Performance Improvement and Transformation. He has a background in Computer Science and is a member of the Information Technology Professional Society. Lerone is currently pursuing his MBA and Six Sigma Master Certification. Lerone joined EY Caribbean in 2013, bringing over 20 years’ experience in multiple sectors, with considerable experience in banking. He has been responsible for leading project work streams, streamlining processes and working on various transformation initiatives. He has worked on projects specializing in business process improvement and re-engineering, operational readiness, organizational effectiveness reviews, strategic planning, strategic information systems planning, project management, organization design and change management.

OECSBusinessFocus Sep / Nov

FEATURE

In Defence Of Caribbean Citizenship By Investment (CBI) Programmes

By: Alicia Nicholls

A 60 Minutes Special aired by American network, CBS, on January 1, 2017 added fuel to the fiery debate on the legitimacy of Caribbean countries’ economic citizenship programmes. Whether intended or not, the segment entitled “Passports for Sale” cast a shadow of iniquity on the programmes which certain Caribbean countries, and to which an increasing number of countries are turning in order to stimulate their economies and attract much needed foreign investment.

Programme where eligible investors may obtain a green card once they “make the necessary investment in a commercial enterprise in the United States; and plan to create or preserve 10 permanent full-time jobs for qualified U.S. workers”. Several European countries offer Golden Visa programmes, while a number of Canadian provinces offer Provincial Entrepreneur Programs whereby qualifying investors can attain permanent residence once a qualifying investment is made.

In 2016, St. Lucia joined four other Eastern Caribbean countries: Antigua & Barbuda, Dominica, Grenada and St. Kitts & Nevis by offering a direct citizenship programme. Economic investor programmes fall into two broad types: residency programmes (which only offer investors the right to reside) and citizenship programmes (which confer citizenship, either directly or after a period of residency).

As I argued in a recent article I wrote for Henley Partners’ Global Residence and Citizenship Review Q3 2016, once carefully managed, CBI programmes can be tools of development. A prime example is St. Kitts & Nevis, which at one point had been among the world’s most indebted countries, and has seen its economic fortunes turned around.

Caribbean CBI programmes fall into the category of direct economic citizenship programmes which entitle qualifying investors and their qualifying spouse and/or dependents (e.g: children or elderly parents) to citizenship of the host country upon making a qualifying investment under that particular programme. Depending on the programme, a qualifying investment could be a monetary contribution of at least a certain amount to a special fund, the purchase of real estate of a minimum value or the purchase of government bonds in some cases. Investors and their co-applicants must also pass stringent due diligence procedures and pay the prescribed fees. The reporting on the Caribbean CBI programmes was reduced to simply the “sale of passports” without taking into account the rationale behind the operation of these programmes. CBI programmes are not only about raising revenue through foreign investment for cash-starved Caribbean countries, but have wider development goals. These include helping to improve infrastructure, creating jobs and attracting investors who are the “best of the best”, that is, persons with know-how and skills and networks which could redound to the benefit of the host economy. It is for this reason that an increasing number of countries, including Western countries, have either implemented economic investor programmes or are thinking of doing so. CBI programmes not limited to small states Indeed, missing from the CBS segment was that economic investor programmes are not unique to small countries like those in the Caribbean or the EU small state of Malta whose programme has a one-year residency requirement. Economic investor programmes are offered by a growing number of countries around the world. For example, the United States has its EB-5 Immigrant-Investor OECSBusinessFocus Sep / Nov

Focuses on missteps and not changes The 60 Minutes Special focused almost exclusively on the missteps made under some of the CBI programmes, while comparatively little was said of the changes made to the programmes to increase the robustness of the due diligence processes. For instance, St. Kitts & Nevis undertook a revamp of its programme amidst concerns raised by the US and Canada. The CBS 60 Minutes Special also harped on the fact that some unsavoury characters had managed to obtain passports through CBI programmes. This is regrettable, no doubt, but “shady” characters have managed to earn residency in western countries which have much greater due diligence capability than do small states. The CBS Special did not mention, for instance, that Caribbean CBI countries maintain a list of restricted nationalities. Nationals from Afghanistan, Iran and Syria are not eligible under St. Kitts & Nevis’ programme, as an illustration. Moreover, when oligarchs from Russia and the Middle East set up homes in western countries, no one (and rightfully so) questions Alicia Nicholls, B.Sc., M.Sc., LL.B., is a trade and development consultant with a keen interest in sustainable development, international law and trade. You can also read more of her commentaries and follow her on Twitter @ LicyLaw. www.oecsbusinessfocus.com

their intention. Yet, why is a nefarious light cast on a Russian or Middle Easterner who obtains citizenship via a Caribbean CBI programme? Why the double standard? Or better yet, why are Caribbean countries constantly being held to a higher standard? Or is it because Caribbean CBI programmes, just like our muchmaligned offshore financial services sectors, are one area in which Caribbean countries can actually go toe to toe with developed countries? Growing demand for secondary passports One of the biggest falsehoods about CBI programmes is that secondary passports are sought primarily by persons with nefarious intent or as the CBS Special put it “scoundrels, fugitives, tax cheats, and possibly much worse”. This is far from the case. The growing class of High Net Worth Individuals (HNWIs), which includes a growing number of persons from emerging economies, increasingly see second passports as an “insurance policy” against instability or economic uncertainty in their home countries. Moreover, simple things like travelling for business or taking one’s family on vacation can be burdensome if one comes from a country with limited visa-free access to other countries. A good quality passport, therefore, brings mobility benefits. However, it is not only HNWIs from emerging economies which have sought secondary passports. Many, particularly those living abroad, are renouncing their American citizenship not because they necessarily want to dodge their tax duty, but because of the onerous and costly reporting requirements and the fact that American citizens may be liable to pay tax on income earned abroad to the Federal Government even if they have been resident in another country for years. Added to this, ever since the passage of the Foreign Account Tax Compliance Act of 2010 which requires foreign financial institutions to report to the US Inland Revenue Service on assets owned by US citizens, Americans have been renouncing their citizenship in record numbers. The demand indicators for secondary citizenship are all trending in the right direction, which is yet another reason why countries are turning to economic investor programmes. The election of President Donald Trump in the US led the Canadian Immigration Department’s website to crash on election night as Americans increased online enquiries about moving to Canada, while the UK’s impending withdrawal has spurred demand by UK nationals for second EU passports. Additionally, investors who acquire citizenship under Caribbean CBI programmes do not only come from “questionable countries”. The St. Lucia Times reported in December that among the 38 citizenships which were granted in St. Lucia, “there were seven applicants from the Middle East, three from Russia, two from Asia, two from North Africa, two from South Africa, one from North America and one from Europe.” Attractiveness of Caribbean passports There is also the erroneous belief that Caribbean CBI programmes’ popularity stems from their purported corruption or because of the perceived negligible due diligence. Caribbean passports are attractive for a multiplicity of reasons. Holders of Caribbean passports enjoy visa-free access to a growing number of countries, which tick off the mobility box for investors. The high standard of living and political stability in the Caribbean appeals to those investors in search of a lifestyle change. CBI Caribbean countries’ citizenship laws recognise both citizenship by birth (jus soli) and citizenship by descent (jus sanguinis), meaning that investors can pass on their citizenship to

their children (born after the investor’s acquisition of citizenship) whether they are born in the host country or not. Moreover, Caribbean countries allow for dual citizenship so they do not have to renounce their current nationality. Another factor is that the lack of residency requirement reduces the time it takes to acquire citizenship than through naturalisation. There are other factors such as Caribbean countries’ access to international business hubs through frequent flights to international gateways, their tax-friendly climates and their network of tax treaties and investment treaties with third states. Conclusion For the above reasons, I found the CBS 60 Minutes Special’s “Passports for Sale” segment to be extremely unbalanced. I also question why except for a nominal reference to Malta at the beginning, Caribbean CBI programmes were singled out and why so much attention was devoted to some of the mishaps but little was said of the steps taken to prevent a recurrence. An online petition by One people, One Caribbean has sought to set the record straight and also calls for the retraction of the segment. That being said, I do believe that robust and honest debate on the functioning of Caribbean countries’ CBI programmes is an important exercise once it is objective and not skewed. For example, the lack of transparency on the number of citizenship approvals granted under CBI programmes and to whom is a problem I have mentioned before. Although some countries have started to release some of their statistics, more data should be released and in a more timely manner. What is needed as well is greater cooperation among Caribbean CBI countries. Some critics of CBI programmes raise the legitimate fears that increased competition both among Caribbean CBI programmes and with extra-Caribbean CBI programmes may lead to a race to the bottom in order to remain competitive. Perhaps what needs to be done is harmonisation of Caribbean countries’ CBI due diligence requirements so that an investor who fails the due diligence requirements of one Caribbean programme cannot gain access to another’s. Another option could be to harmonise CBI countries’ restricted countries’ lists. I am under no illusion that this would be an easy task but it is perhaps worth considering. There is some support for greater OECS collaboration on this issue. The Prime Minister of St. Lucia, Allen Chastanet, has called for an OECS approach to CBI programmes through an OECS initiative based at the OECS Secretariat. However, it should be noted that a pan-OECS initiative may be problematic as not all OECS countries are supportive of such programmes. Additionally, CBI programmes must be free of political influence and interference. Cooperation with the wider Caribbean Community (CARICOM) is also needed. Non-CBI CARICOM countries have raised concerns about reputational and security implications for their own countries. Under the Revised Treaty of Chaguaramas, the broad definition of “Community National” means that an individual who attains citizenship of a CARICOM country would qualify as a community national and be entitled to those benefits. As I argued before, CBI programmes are not a panacea. Continued monitoring and upgrading of the programmes is needed to ensure that they meet their objectives of contributing to national development, while also ensuring the strictest of due diligence standards. ¤ Source: Caribbeantradelaw.com OECSBusinessFocus Sep / Nov

FEATURE

Financial Inclusion And Access To Financial Services Can Help Achieve SDGs

Financial Inclusion And Access To Financial Services Can Help Achieve SDGs By: Norma Cherry-Fevrier

In 2015, the 193 countries of the United Nations General Assembly (UNGA) adopted the 2030 Sustainable Development Agenda, aimed at transforming the world. The objective of this agenda is to improve people, planet and prosperity. The agenda contains 17 Sustainable Development Goals (SDGs) and 169 targets developed to guide and frame agendas and political policies over the next 15 years. There exists strong positive linkages between financial development and a number of the SDGs, in particular, goals 1 (no poverty), 2 (zero hunger), 8 (decent work and economic growth) and 10 (reduced inequality). Hence, strengthening financial services will play a major role in the pursuit of these SDGs. The United Nations Conference on Trade and Development (UNCTAD, 2015) recognises the contribution financial services make to the economy via banking, securities and insurance services. Financial services therefore contribute to output and employment by the various activities that have high value added, thus requiring additional jobs. Consequently, financial inclusion, defined as the effective access and use by individuals and firms of available, affordable, convenient, quality, and sustainable financial services from formal providers, can contribute to poverty reduction and economic and social development. While the UN called on governments to develop strategies to pursue the SDGs, it also recognised the role of the private sectorâ&#x20AC;&#x201D; OECSBusinessFocus Sep / Nov

micro-enterprises, cooperatives and multinationals in achieving the goals. The SDGs thus include access to financial services within their several targets and state the relevance of ensuring that all people have full access to financial services, while also highlighting the importance of womenâ&#x20AC;&#x2122;s access to financial opportunities.

Norma Cherry-Fevrier is a Programme Officer with the Environmental Sustainability Unit. She holds a BSc. in Economics (UWI), a MSc. in Natural Resource and Environmental Management Water Resources Management (UWI), a PgCert in Project Planning, Appraisal and Management (University of Bradford) and is a Certified Project Management Professional (PMP).

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Financial Services

By 2030, ensure that all men and women, in particular the poor and the vulnerable, have equal rights to economic resources, as well as access to basic services, ownership and control over land and other forms of property, inheritance, natural resources, appropriate new technology and financial services, including microfinance. Undertake reforms to give women equal rights to economic resources, as well as access to ownership and control over land and other forms of property, financial services, inheritance and natural resources, in accordance with national laws. Strengthen the capacity of domestic financial institutions to encourage and expand access to banking, insurance and financial services for all.

Increase the access of small-scale industrial and other enterprises, in particular in developing countries, to financial services, including affordable credit, and their integration into value chains and markets. Multi-stakeholder Partnerships - Enhance the global partnership for sustainable development, complemented by multi-stakeholder partnerships that mobilize and share knowledge, expertise, technology and financial resources, to support the achievement of the sustainable development goals in all countries, in particular developing countries.

The SDGs specifically mention financial services by noting that all men and women, especially the poor, have equal rights to economic resources and financial services and calls for domestic financial institutions to encourage and expand access to banking, insurance and financial services for all. As well, the SDGs call for increasing access of small-scale industrial and other enterprises, especially in developing countries, to financial services and engaging in multi-stakeholder partnerships that mobilise and share financial resources (See Figure 1). This includes access to secure payment and remittance facilities, savings, credit and insurance.

In seeking to achieve the SDGs and in addressing financial inclusion in the OECS, it is important to ensure that the most vulnerable have access to services such as savings, credit, insurance, and remittances. This can improve their wellbeing and livelihoods and enable them to create job opportunities for others in the community. Therefore, it is necessary to make investments that facilitate prompter, safer and less costly transfer of remittances, promotion of cooperatives and credit unions that provide finance for larger income groups, and the use of technology that enables new payment systems and networks with lower infrastructural costs.

In keeping with this, H.E. Mr Peter Thomson, President of the 71st Session of the General Assembly in 2016, highlighted the role of the private sector and how it can help ensure that development gains reach those most in need. Mr. Thompson further noted that “by strengthening financial inclusion, access to essential services can be extended to millions of people, and generate a positive multiplier effect for the achievement of all SDGs. Additionally, digital financial services can also bring large numbers of people into the formal economy, generating growth, and increasing domestic resource mobilisation.”

Increased access to financial services by low-income/poor families can thus have tremendous impact at the household level by enabling them to invest in their children’s education, health and nutrition. Having saving accounts, insurance and easy access to remittances will enable them to deal with emergency and unforeseen situations that can leave them more vulnerable. Farmers, for example, who have access to loans can invest in new technologies, increase production and contribute to increasing food security and reducing hunger. Increased access to financial services in our region can also give people the ability to manage medical expenses and engage in preventive measures against diseases.

Moreover, as more than 2 billion people globally do not have access to basic financial services like savings accounts, loans or insurance products, promoting access for low-income persons will be very important in pursuing the SDGs especially in our small islands. – World Bank, 2017. FINCA International recognises that access to financial services for the poor enables them to earn more, build their assets and cushion themselves from external shocks. Access to financial services also provides aspiring entrepreneurs with job creation opportunities for themselves and enables growing microenterprises to provide opportunities for other community members.

More importantly, increased access to financial services for women supports many development objectives as women are more likely to spend on necessities such as school fees and health care. Overall, financial inclusion and access to financial services can have ripple effects by enabling persons to rise above the poverty line and make productive investments which can contribute to economic growth in a country. ¤

OECSBusinessFocus Sep / Nov

FEATURE showing evidence of ownership of business plans and other documentation required for submission to qualify to receive a financial institution lending facility.

Finding Solutions To SME Financing Challenges

Additionally, international banking covers different types of facilities which include supplier credit, debtor finance, invoice discounting, factoring, bills of exchange, overdrafts, revolving credit facilities, medium term loans and commercial paper. The question remains, however, why do most SMEs engage the regional financial institutions for term loans? Another interesting observation is the ease in obtaining a term loan to purchase an automobile but not to start a business. Financial institutions seem to prefer providing credit to purchase “assets” that can be repossessed in the event of failure to meet the debt obligations.

Finding Solutions To SME Financing Challenges

By: Tamika Dorival-Phillip

So often, as citizens and entrepreneurs of the Caribbean Region fortunate to have Small-Medium Enterprises (SMEs), making an average annual gross income of XCD $ 65,000.00 to XCD $ 120,000.00 and above, we are grateful for the banking services and lending facilities extended when we engage the services of financial institutions. We do not consider, however, the vast majority of SMEs that have been denied access to financing due to challenges in meeting banking requirements. This reality is true for many young entrepreneurs, unable to qualify for financial statement lending. In this article, I refer to Berger and Udell (2006) as they defined financial statement lending as “a transaction technology based primarily on the strength of a firm’s financial statements.” I beg you to imagine how many young SMEs would be able to produce financial statements, or are already financially strong, before approaching a Financial Institution? To be frank, not many. A reasonable solution needs to be reached to support the youngest entrepreneurs to get off their feet and to ‘break even’ at some point within the five year growth period for new business startups. We have seen some initiatives across the region which seek to make access to financing easier and more accessible for all but, unfortunately, these come with very high interest rates which may be counterproductive for all interested stakeholders, especially the young SMEs. Interestingly, in a survey conducted in 2015 to assess to what extent bank financing policies hindered the SMEs ability to access finance in the Commonwealth of Dominica, “collateral required” and “proving credit worthiness” received the highest percentage as the contributing factors in terms of banking policies that hindered successful SME credit applications. The results of the survey also indicated that more than fifty percent (50%) of the SMEs interviewed received access to financing, but were generally dissatisfied with many of the financial institutions’ processes. Some of these processes included, but are not limited to collateral required, proving credit worthiness, OECSBusinessFocus Sep / Nov

Perhaps it would be worth exploring forums geared towards selling a product that suits the needs of the buyer. This requires a paradigm shift for financial institutions within this developing region, but it is worth consideration as this may stimulate positive results for all stakeholders. This is said taking into consideration the fact that financial institutions are partially responsible for the types of services offered as they do shape aspects of their own agenda; albeit they are governed by Regulations and Central Banks. Earlier research on monetary policy indicated that Monetary Policy Transmission is based on two explanations: the Balance Sheet Channel and the Bank Lending Channel, referred to as the Credit Channel of Monetary Transmission - Bernanke and Gertler (1995). Berger and Udell (2006) also document the Framework for Lending Technologies, described as: 1. Transaction Lending 2. Relationship Lending This Framework for lending seems to be a common feature of financial institutions’ policy on lending. For example, in transaction lending financial institutions lend to borrowers based on hard quantitative data but in relationship lending financial institutions lend to opaque borrowers based on soft qualitative information. Some researchers view the latter as highly subjective creating an unleveled playing field for SMEs to qualify for access to finance. Tamika Dorival – Phillip studied Business Administration in Canada and continued post graduate studies in Management and Business Administration with the University of Leicester, United Kingdom. She has worked in a number of business oriented positions during her career, including banking, mass communication, journalism, marketing, customer relations, auditing and currently accounting. She is currently employed as a Senior Accounting Assistant within the OECS Commission and manages a Bed & Breakfast, providing quality service to business professionals and vacationers.

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Additionally, in recent years, Caribbean regulators have been actively working on the adoption of International Accounting Standards for banks and core principles for effective banking supervision. I refer to the Caribbean Communityâ&#x20AC;&#x2122;s (CARICOM) Bank Supervision Harmonisation Project which speaks to a legal framework to include provisions for capital, regulations for shareholding, bank holding companies, large exposures, audit requirements, special powers, prudential regulations, supervision of non-bank financial institutions, deposit protection mechanisms, financial reporting requirements, on-site and off-site inspection procedures and training. International Monetary Fund working paper (2001). These initiatives suggest that the influence, and focus, is geared towards monitoring and protection of a Financial System that appears to have a solid foundation but could suffer fatal blows if left unchecked. While this approach may be a good management principle, without the customer of the financial service there would be nothing to monitor and therefore, more value needs to be placed on the customer to improve the services and the customerâ&#x20AC;&#x2122;s experience in obtaining lending facilities from financial institutions. Through evidence we can recognise that uncontrollable factors and theoretical literature influence the services provided by the financial institutions, however the empirical literature which exists indicates that there are scientific approaches that are used to understand the characteristics of SMEs in relation to access to finance.

In South Africa, Fatoki and Asah (2011) identified collateral, managerial competency, business information, networking, age of the firm, size of the firm (number of employees), demographics, age of the owner and location of the firm as characteristics which influenced the success of credit applications of SMEs. Fatoki and Asah (2011) observed that SMEs in South Africa established for more than five (5) years had a far better chance of success in their credit applications compared with SMEs established for less than five years. Additionally, Abdulsaleh and Worthington (2013) document and observe that to determine the stage of the business life cycle of an SME, the age and the size of the SME are paired together. Abdulsaleh and Worthington (2013) went on to indicate that size of an SME can be measured by the total assets, sales and or number of employees. In developing regions, such as ours, we similarly observe a high concentration on financing viable new businesses which fall within the 5 - 10 year range. Undeniably this realisation is valuable, indicating that there is a correlation between the age of an SME and its success with credit applications. Learning from the observations of other researchers, that the stage of the business life cycle can be determined by using scientific approaches, our region is able and should develop strategies aimed at finding solutions for SME financing challenges. Â¤

OECSBusinessFocus Sep / Nov

FEATURE

The Caribbean Finance Industry: Challenges And Strategies

The Caribbean Finance Industry: Challenges And Strategies The survival of the financial industry, and by extension the economies of the region, is constantly being challenged by internal and external shocks on a legislative, regulatory, institutional and industry level. The key question which must be answered is this: How will banks, large and small, continue to achieve their objectives while effectively managing these challenges? Regulatory and Legislative Challenges Compliance with the ever-changing regulatory framework has become a blueprint for survival for financial institutions. In the aftershock of the “great financial crisis”, a plethora of regulations has evolved, including Anti-Money Laundering (AML), Counter Terrorist Financing (CTF), Foreign Account Tax Compliance Act (FATCA), Common Reporting Standards (CRS) and the BASEL Accords. All are aimed at promoting better risk management and a more robust financial system that underpins strong and sustainable economic growth. Implementing the necessary systems to support a robust compliance framework requires significant resources, which adds pressure on resource constrained OECS banks. In the case of AML/CTF, the range of regulations are growing and changing continuously so keeping up and complying with all these regulations is a mammoth task for smaller banks whose processes are still semi-automated. Consequently, the Caribbean Association of Bankers believes that the development of a centralised compliance hub should reduce the cost of compliance and strengthen the AML/CTF framework of regional financial institutions. In that regard, CAB recently facilitated discussions between forty of its members and a potential provider of such services. The international drive for greater tax transparency and accountability has given rise to regulations such as FATCA and CRS. The Banks have incurred significant cost to implement the necessary reporting infrastructure. Non-compliance could result in heavy penalties and blacklisting of countries as tax havens. To OECSBusinessFocus Sep / Nov

CAB Members and Board of Directors

date, all of our members have the necessary structures in place for FATCA reporting, and many are in-train for CRS reporting. In an effort to increase banking stability, the BASEL Committee of the Bank of International Settlements has released new “Accords” which are more stringent in their capital requirements. In a similar effort to strengthen the financial stability of regional banks, the OECS has also implemented their new banking act, which raised the capital requirement of banks in the region. Raising the necessary capital to satisfy these requirements has been a challenge for some banks due to the limited investment pool and appetite in the region. This supports the ongoing discussions and recommendations on the consolidation of various banking functions to drive sustainability and efficiency. It is therefore important to pursue the harmonisation of the Caribbean region’s regulatory and legislative framework to provide a more effective enabling environment for the financial services industry in the Eastern Caribbean Currency Union, including harmonised foreclosure, credit reporting, AML/CTF and privacy laws. Threats To The Banking Industry The loss of correspondent banking relationships and de-risking are considered the most severe threats that the financial services sector and the Caribbean region face at this juncture. De-risking refers to the phenomenon of financial institutions terminating or restricting business relationships with clients or categories of clients to avoid rather than manage risk. The “derisking” decisions by the correspondent banks take into account several factors which include: • Risk Rating of Individual countries with regards to AML/CTF and Tax compliance; • Risk rating of financial services institutions; and • Adequacy of return received by the correspondent banks for undertaking the risks associated in providing correspondent banking services. www.oecsbusinessfocus.com

The loss of these vital relationships could render the Caribbean region “unbanked “and ultimately destabilise all sectors of our economies. In this regard, the CAB has collaborated with a correspondent banking service provider to facilitate U.S. correspondent banking services to members who have been negatively impacted. The CAB also continues to work with other correspondent banking providers to widen the pool of options available to members. The CAB is currently researching the possibility of a regional payments system which would streamline the need for U.S. correspondent banks in intra-regional transactions. The CAB is also a partner in the Inter-American Development Bank’s project: “Strengthening Financial Transparency: Rebuilding Trust in Correspondent Banking in the Caribbean”. This multilateral project will involve initiatives aimed at helping to prevent and mitigate the risk of loss of correspondent banking relationships. The perception of the region’s risk rating by correspondent banks is another deciding factor. In this regard, it is necessary for countries to pay attention to rectifying the gaps identified in their national risk assessments and actively publish the positive initiatives that they are taking with respect to AML/CTF. The Financial Technology (Fintech) revolution has been radically challenging and threatening banks’ traditional roles as trusted intermediaries. It has also reduced barriers to entry in the financial industry, thereby enabling new entrants to compete with banks without incurring the injection of enormous capital investments.

The Caribbean Association of Bankers (CAB) represents seventy-six member institutions with an asset base in excess of US$41 Billion as at December 2016. Membership spans from Jamaica in the north, to Guyana and Suriname in the south, comprising both the English and Dutch-speaking Caribbean. The Mission of the CAB is: “To proactively influence matters of interest to financial institutions through advocacy and education.” The association is guided by the following pillars of its value proposition: • Effective Advocacy; • Premier Networking Platform; • Facilitation of Industry Cooperation and Harmonisation; • Reliable and Relevant Source of Information; • Facilitation of Industry-Specific Education and Training; and • Benefits of Economies of Scale through Cost Reduction and Sharing of Services

New services such as peer-to-peer lending, block chain, crypto currencies, cognitive computing, mobile and internet banking will certainly change the face of banking in the future, and banks should monitor these developments as well as customer demands, in order to be innovative, and responsive. For example, Carilend in Barbados, a peer to peer lender was recently established in Barbados. Cyber risks and implementation of necessary mitigating infrastructure is another area of great threat to banks. In this regard, the CAB has a group insurance scheme which covers such risks for members. Impact On Institutions The dynamics of the worldwide financial crisis brought to light a number of credit portfolio risks. Globally, there has been an increase in non-performing portfolios, giving rise to increased provisioning which exerts significant pressure on the banks’ capital base. For example, in the OECS sub-region, ‘non-productive loans’ average approximately 12% against a benchmark of 6%. With the impending introduction of the accounting standard IFRS 9, which is based on raising provisions upfront on future expected losses, banks may experience increased pressure on their capital and profitability.

CAB Chairperson Joanna Charles (L) and General Manager Mary Popo

In order to continue recovery and growth, banks will have to continue to demonstrate strong leadership capabilities, good corporate governance, greater investments in talent management to produce the highest-performing teams, to steer the region’s financial services industry into the path of growth and expansion. Source: Caribbean Association of Banks CAB Board of Directors OECSBusinessFocus Sep / Nov

Correspondent BankingBanking Survey: Identifying Correspondent Survey: The Impact Of De-risking Identifying The Impact Of De-risking

When measuring the incidence of de-risking vis-Ă -vis the number of members present in each country, it was found that the most affected countries were Suriname followed by Guyana and Jamaica.

Members who lost CBRs No. of CBRs 0

13%

10%

2 45%

32%

Number of Accounts Terminated

M eric er an ril lL yn ch To Ci ro ti Ba nt Ba nq o nk Do ue m Fr i an Sc nion ca ise oti Na Co aba ti o n m na m k er lW cia es le tm Ro inis HS t ya l B er B BC a an k o nk P LC fS co tla IN nd G Ba Ba nc n o Po k De pu ut lar sc h Ra Com e Ba b nk m Ba o nk ban erz ba k of Ch Bth nk er in l e Ho and ng s Ba K nk on of g To ky o

14 12 10 8 6 4 2 0

of A

However other USA banks were also involved in the de-risking exercise. To eliminate the heterogeneity caused by of Bank of America in the sample, weights were added. When further analysis was done the data indicated that Europe as a region has been the most aggressive in de-risking Caribbean banks.

Correspondent Bank Involved in De-risking

The results indicated that more than half of respondents (55%) had lost at least one Correspondent Banking Relationship (CBR), while 45% per cent of respondents reported having no loss. The major loss came from relationships with Bank of America.

Figure2: Summary of Banks Involved in de-risking

On August 25, 2016, the CAB Secretariat conducted a survey to track and interpret the impact of actions of correspondent banks, and assess the scope of de-risking on its members. There were thirty-eight (38) respondents representing 97% per cent of the sample.

Conclusion The results from this survey have provided greater clarity with regard to the scope of de-risking among members, the most aggressive entities involved in de-risking and the impacted lines of business. That 55% of members have lost at least one CBR warrants the involvement of the Caribbean Association of Banks in advocating for some relief for those affected. For the 45% that have reported no loss in relationship, the onus is on them to continue to provide services that can withstand international scrutiny. The results also call for a refocus of attention away from purely USA-based advocacy to a strategy aimed at Europe, where the bulk of the banks engaged in de-risking originate. The survey results also point to the need to develop new products and services, and reduce the reliance on traditional products and services which have come under increasing scrutiny. CAB will continue its advocacy efforts to keep this issue at the forefront of both the regional and international agenda.

The most severely impacted services were: wire transfers, foreign cheque clearing and cash letter deposits. However, the majority of relationships

Figure 4: Incidence of de-risking by Country

Loss of CBRâ&#x20AC;&#x2122;s by Country

Most Impacted Lines of Business

6 5 4 3

Cash Letter Deposits

0 Ba r

illa

bu d Ba a ha m Ba as rb ad Br os iti sh Vi Beli rg in ze Is Ca ym land s an Isl an Cu d ra c Do ao m in i Gr ca en ad Gu a ya na Ja m aic M St . K ont a se St itt .V s a rra in nd t ce Ne nt an vis d th St. L e Gr ucia en ad in Tri S nid ur es i na ad m an dT e ob ag o

Bank Draft Settlement

19%

Cheque Clearing

Mercant Services

49%

15%

Wire Transfers

An ti g

10%

Total Number of Banks Included in Survey

OECSBusinessFocus Sep / Nov

Number of Banks Derisked

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CAB, CARICOM and Bank of Guyana Discuss Regional Finance Industry

Photo L to R: Mrs. Evelyn Wayne, Mr. Richard Sammy, Mr. Rolf Phillips, Ms. Joanna Charles, Mr. Irwin LaRocque, Mrs. Mary Popo, Mr. Mark Anderson, Mr. Joseph Cox.

CAB, CARICOM and Bank of Guyana Discuss Regional Finance Industry

The Caribbean Association of Banks (CAB) paid an official visit to the CARICOM Secretariat in Guyana as well as the Central Bank of Guyana, July 6-7, 2017. The CAB was represented by six (6) Directors of the Association: Ms. Joanna Charles – Chairperson, Mr. Rolf Phillips, Mrs. Evelyn Wayne, Mr. Mark Anderson, Mr. Richard Sammy and Mrs. Mary Popo, the Secretary to the Board. The Directors first met with Mr. Irwin LaRocque, CARICOM Secretary- General, Mr. Joseph Cox, Assistant Secretary- General, Trade and Economic Integration. Following this meeting, they met with, Dr. Gobind Ganga, the Governor of the Central Bank of Guyana as well as Mr. Ramnarine Lal, Director, Banking Supervision Department of the Central Bank of Guyana.

In recognition of the unprecedented challenges being faced by the industry, and given the important role of banks in financial intermediation, economic growth and the overall development of the Region, the CAB has made it a priority to collaborate with key stakeholders in the industry. The Directors also took the opportunity to visit some of the Association’s members in Guyana and to listen first hand to some of their concerns and challenges as well as to share best practices. ¤

Discussions with the CARICOM Secretariat and the Central Bank of Guyana focused on issues of great importance to the financial services sector and the growth and development of regional economies. The discussions focused on: 1. The importance of the financial sector in facilitating trade in goods and services, remittances and investments; 2. The development of a regional payments system which should: reduce reliance on international correspondent banks; reduce the length of the regional payments chain; and improve settlement times; 3. Harmonization of the Region’s regulatory and legislative framework to provide a more effective enabling environment for the financial services industry; 4. Solutions which could be pursued in an effort to address the correspondent banking issue; and 5. Strengthening collaboration between the CAB and the CARICOM as well as the Central Banks in the Region on matters of common interest.

OECSBusinessFocus Sep / Nov

CARIBBEAN CONFEDERATION OF CREDIT UNIONS

Caribbean Credit Unions Want Greater Role In Regional Development Aaron Moses Past President of the CCCU

Caribbean Credit Unions Want Greater Role In Regional Development By Earl Bousquet

Caribbean credit unions are more alive and active, and can play a greater role in national and regional development, but that much is either not known or not recognised by the region’s governments - and they want that to change. That was the word from President of the Caribbean Confederation of Credit Unions (CCCU), Aaron Moses, as he delivered his message at the regional organisation’s 60th International Convention and 46th AGM held June 16-17, 2017, at the Memories Varadero Beach Resort in Cuba. Under the theme ‘Cooperatives: Reshaping Caribbean Sustainable Development’, some 485 delegates attended the conference at the world-famous beach, which offers 20,000 rooms at over 55 hotels and resorts. Delegates attended from 16 Caribbean territories: Antigua and Barbuda, The Bahamas, Barbados, Belize, Bermuda, Cayman Islands, Curacao, Dominica, Grenada, Guyana, Jamaica, Montserrat, St Kitts and Nevis, Saint Lucia, St Vincent and the Grenadines and Trinidad and Tobago. Resident ambassadors to Cuba from all Caribbean Community (CARICOM) member states were also present. Strategic Choice Delivering the opening remarks, Moses welcomed members to “another engaging, interactive and rewarding experience,” of which 55 per cent were attending for their first time. OECSBusinessFocus Sep / Nov

The CCCU president noted they were “meeting at an uncomfortable time in world history, when our region continues to grapple with many challenges and deep vulnerability.” He noted they were “also meeting for the first time in a beautiful country in the Caribbean where there are several cooperatives, but no credit unions.” “Our choice was strategic and exploratory,” he pointed out, “as the hopes of the benefits of the cooperative sector can accrue to the Cuban people and economy.” He also had a special welcome to Cuba’s veteran Caribbean coordinator, Otto Marrero, “the man the Caribbean has had to know if ever we wanted to get to Cuba.” “I hope this is a new relationship between Caribbean credit union and our Cuban friends,” he added. Strong Regional Presence Underlining the strong presence of the credit union movement across the Caribbean, Moses noted, “There are now 297 credit unions in 17 countries and our level of penetration is 20 percent -- the highest in the world, involving the economically active populations in the region.” Moses pointed out the Caribbean people have been historically wedded to credit unions, “as it is a cradle-to-grave situation, www.oecsbusinessfocus.com

where many people have grown up after having been given their first gift in the form of a credit union card.” The only country that finds itself this unique group of high level penetration of the economically active population is Ireland”, he added, while credit unions “continue the transformation of lives of people and countries around the world.”

Moses’ message to the government leaders was clear: “We want to lobby for a continuous role of regional and national credit unions in sustainable growth, as it is foundational and pivotal.” “But,” he added in a moment of collective self-criticism, “too many (credit unions) are still too slow to become cognizant of our potential and relevance -- and this is partly our fault.”

Moses noted that credit unions have a long history in the region, with the regional movement having been active for the past 75 years. The president also pointed out that the International Labour Organisation (ILO) has acknowledge that credit unions are “the most sustainable” organisations within the Labour movement.

Value-added Productivity Hinting at some of the areas the regional credit union movement can be both helpful and proactive, Moses noted: “Financing is needed in agriculture, community tourism and all businesses to ensure value-added productivity.”

More Attention Needed It is against this background that the CCCU president issued his call to CARICOM and other regional governments, whether of nations or dependent territories, to give much more attention to a sector that they may have overlooked or underestimated for too long.

He said, “The time is now, the opportunity exists, environment is appropriate - and what is needed is aggressive action.”

In a direct appeal to CARICOM, Moses said, “We urge the region’s governments to revisit their relationship with and roles of credit unions and give them a greater role in national development.”

The CCCU president therefore called on the hundreds of Caribbean delegates at the Cuba conference to take a page from the chronicled history of a great African and world leader, saying, “We need to be remind of Mandela’s vision when he said ‘vision and action by themselves will not work, but vision and action can change the world...’” ¤

And, directly appealing to prime minister of St. Vincent and the Grenadines Dr Ralph Gonsalves, currently the longest-serving leader of the regional grouping, who was present as the invited guest speaker, the CCCU president added “and we definitely hope our senior CARICOM prime minister can pass the message on...”

Source: Caribbean News Now

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OECSBusinessFocus Sep / Nov

FEATURE

Nearly US$59 Billion in World Bank Support to Developing Countries Including the Caribbean in 2017 US$59 Billion World Bank Support For Developing Countries

US$59 Billion World Bank Support For Developing Countries

The World Bank says its commitments to help developing countries, including those in the Caribbean, take on poverty and boost opportunity reached nearly US$59 billion in loans, grants, equity investments and guarantees in fiscal year 2017. “With aspirations of the poor on the rise, and overlapping crises, such as forced displacement, famine and climate change adding urgency to our mission, our staff this year worked to provide marked increases in financing from IDA, IFC, and MIGA,” said World Bank Group President Jim Yong Kim. IDA is the abbreviation for International Development Association, IFC for International Finance Corporation and MIGA for Multilateral Investment Guarantee Agency. “While this year we have had to actively manage IBRD (International Bank for Reconstruction and Development) lending, the Board and management are discussing approaches to ensure adequate capacity across the World Bank Group to best help countries achieve their development goals,” Kim said. “As always, we are committed to working with our member countries and other partners to crowd in private investment and maximise resources for the poor,” he added. The World Bank said commitments from IBRD, which provides development knowledge to countries, combined with financing and risk management products, were at US$22.6 billion in FY17. “This reflects the bank’s careful attention to ensuring continued strong capital adequacy ratios and prudent financial management into the future, while responding to client countries’ most pressing development challenges,” the World Bank said. It said commitments from the IDA, which provides zero or lowinterest loans and grants to the world’s 77 poorest countries, hit US$19.5 billion in FY17. OECSBusinessFocus Sep / Nov

“IDA’s increased commitments reflect strong demand for financing, as well as IDA’s efforts to better leverage resources and expand financing options for borrowing countries,” the World Bank said. “FY17 continued to reflect very high demand for IDA financing from clients, fully committing the three-year resource envelope of IDA17.” The bank said these efforts include an additional US$3.9 billion allocated for non-concessional lending to finance transformational projects in qualified IDA countries. Increased financing has also allowed IDA to respond rapidly to global crises. The World Bank said the IFC, the largest global development institution, focused exclusively on the private sector, leveraged its capital, expertise, and influence to create markets and opportunities wherever they were needed most. Preliminary and unaudited data as of June 30 indicated that IFC’s long-term investments totalled about US$18.7 billion, including funds mobilised from other investors. In FY17, IFC made nearly US$11.9 billion in long-term investments from its own account and mobilised about US$6.8 billion from other investors. The World Bank said these “often-complex” investments supported 342 long-term finance projects in developing countries around the world. IFC maintained its strategic focus on the poorest countries and regions, providing more than US$4.6 billion in long-term financing to accelerate development in IDA countries, including funds mobilised from other investors. It said these countries accounted for nearly 25 per cent of IFC’s total investments. ¤ www.oecsbusinessfocus.com

CDB Signs MOU With Export-Import Bank Of China

CDB Signs MOU With Export-Import Bank Of China The Caribbean Development Bank (CDB) and the Export-Import (EXIM) Bank of China have signed a memorandum of understanding (MOU), which will allow both parties to discuss opportunities for cooperation and coordination in CDB’s borrowing member countries (BMCs). The MOU will allow both institutions to explore co-financing options, as well as coordinate development strategies, concepts and activities in those countries. Speaking at the signing ceremony, Monica La Bennett, CDB vicepresident (Operations), said that both CDB and the EXIM Bank hold a common conviction of the importance of trade in promoting economic ties between China and Caribbean countries. She noted, therefore, that the partnership had tremendous potential. “We are especially optimistic about the prospects for co-financing projects in key sectors such as infrastructure; human resource development; agriculture; and renewable energy and energy efficiency. We, therefore, welcome this collaboration with the Export-Import Bank of China and look forward to combining our resources, knowledge and expertise to further the development of the Caribbean Region for the benefit of its people,” she said. “CDB and EXIM Bank, we share the same target, to improve the economic development of Caribbean countries…I am quite sure

that by signing this MOU we will expand this kind of cooperation and achieve the given result, the economic cooperation between China and Caribbean agencies,” added Yu Wen, deputy general manager, Corporate Business Department, Export-Import Bank of China. The signing ceremony took place during a CDB-hosted conference on the use of Chinese renminbi in the Caribbean, which was held in Barbados on July 10, 2017. China EXIM Bank is a state-owned policy bank that supports China’s foreign trade, investment and international economic cooperation. It implements projects around the world, including in Latin America and the Caribbean. China has been a member country of CDB since 1998.¤ Photo: Monica La Bennett, Vice-President (Operations), CDB, signs the MOU between CDB and EXIM Bank of China on July 10, 2017. Looking on are (L-R) Yu Wen, Deputy General Manager, Corporate Business Department, EXIM Bank of China. Dr Warren Smith, President, CDB, Diana Wilson Patrick, General Counsel, CDB and Dr Justin Ram, Director, Economics, CDB

OECSBusinessFocus Sep / Nov

FEATURE

CTO Receives Financial CTO Receives Financial Boost From CDB Boost From CDB The Caribbean Tourism Organization (CTO)’s continued efforts at promoting service and business excellence in the region’s tourism and hospitality sector has received a financial boost from the regional financial institution that focuses on harmonious economic growth and development in the Caribbean. The Caribbean Development Bank (CDB), through its Caribbean Technological Consultancy Services (CTCS) Network is providing US$223,312 in support of the two key components of the Hospitality Assured (HA) Caribbean certification programme managed by the CTO as part of its product development and service quality thrust. The funds will be used to engage business advisors and assessors to help strengthen the business performance and overall competitiveness of tourism-related micro, small and mediumsized enterprises (MSMEs) in ten CDB borrowing member countries through the HA programme. “Our region needs to boost its reputation for service and business excellence and pay attention to the overall visitor experience. The Hospitality Assured framework provides the tool to drive this effort,” said Bonita Morgan, the CTO’s director of resource mobilization and development, and the CTO official with overall responsibility for the HA programme. “We are thankful to the CDB, through the CTCS Network, for supporting this effort to help Caribbean tourism businesses shore up their competitiveness.” “For several Caribbean economies, tourism is an engine of growth, and MSMEs have the potential to make significant contributions to the sector. CDB is pleased to be supporting CTO in delivering the HA Caribbean certification programme, and deeply value the role it plays in helping regional MSMEs deliver an even higher

OECSBusinessFocus Sep / Nov

quality product and experience in an increasingly competitive global tourism market,” said Darran Newman, acting division chief, technical cooperation division, CDB. Over the next year 30 businesses in the ten countries – Anguilla, Belize, the British Virgin Islands, Guyana, Jamaica, Montserrat, Saint Lucia, St. Kitts & Nevis, St. Vincent & the Grenadines, and Turks & Caicos Islands will receive technical assistance as well as assessment services through the CDB funding. The regional lending institution’s support for HA dates back to 2014 when, through the United Kingdom Department for International Development’s Caribbean Aid for Trade and Regional Integration Trust Fund, managed by the Bank, it provided funding support for six businesses in Grenada to participate in the certification programme. Last year, CDB, through the CTCS network, provided financial support to conduct a week-long business advisors training workshop organized by the CTO to equip 15 business advisors to provide technical assistance to tourism-related businesses participating in the HA certification programme. CTCS is managed within CDB’s Technical Cooperation Division and operated in cooperation with regional and national institutions, laboratories, industrial enterprises, and consultants. It comprises a network of institutions and experts, and has as its primary aim, transferring knowledge, skills and technology to improve managerial and operational efficiency and competitiveness of MSMEs through the provision of technical assistance. Hospitality Assured is a certification programme promoting service and business excellence in tourism and hospitality companies. It is owned by the Institute of Hospitality in the United Kingdom, and managed by the Caribbean Tourism Organization in the region. ¤

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CDB: Spiralling Barbados CDB: Spiralling Barbados & Trinidad Debt “Worrying”& Trinidad Debt “Worrying” Spiraling debt in some regional economies remains a major worry for the Caribbean Development Bank (CDB). The Barbados-based institution has warned that the efforts of some countries to tackle the problem are off-track and Governments have to seriously assess their management of the problem. According to Director of Economics at the CDB, Dr Justin Ram, Barbados is the most indebted country in the region and there are strong signs that the Trinidad and Tobago economy is headed for trouble. “Although Barbados is at the top now, we have other countries there that are actually on the wrong trajectory. Trinidad and Tobago as well, I can say, their debt dynamics is on the wrong trajectory, and if things do not turn around there quickly then very soon they will have a debt-to-gross domestic product (GDP) ratio possibly in excess of 80 per cent of GDP,” he told the annual review seminar of the Central Bank of Barbados. Ram stressed the problem needed fresh, urgent action and lamented that regional governments may not be following the right examples. Highlighting experiences in Greece, Italy, Japan, Singapore, the United Kingdom and the United States he suggested the region should carefully study each case and take only the best practices. “Greece, yes, [has] a primary balance now that is positive, but

Director of Economics at CDB, Dr. Justin Ram

general government debt of 181 per cent, and what about the real GDP growth? It’s actually at zero,” Ram noted. He also cited the experience in Singapore, but maintained it was not the best model for the region. “When we look at some of the data, is it really what we want to emulate? A country that has a primary balance that is positive, yes, but I don’t think we really want to go down the route of having such high levels of debt-to-GDP, and I don’t think two per cent real economic growth would be sufficient for us here in the Caribbean,” the CDB official said. He stressed that some of the best lessons of debt recovery were in the region, pointing to economic development in Jamaica and Grenada. “I want to emphasize to you that the lessons learned from Jamaica, and perhaps Grenada, show us that we can turn things around if we take the right policy measures and the right policy steps,” Ram said. He contended that now was the time for governments to seriously map out a new direction to take forward their economies. “I would proffer to you that perhaps we want to travel down the road that is less travelled. We want to have inclusive growth with low debt and prudent fiscal management,” he said. ¤ Source: Caribbean360.com OECSBusinessFocus Sep / Nov

CDB Establishes CDB Establishes Cultural,Cultural, Creative Creative Industries Industries Innovation Fund Innovation Fund The Caribbean Development Bank (CDB) has announced that it will provide the initial capitalisation for a multi-donor fund to improve the competitiveness of the cultural and creative industries sector in its Borrowing Member Countries (BMCs). The bank is making an initial contribution of US$2.6 million to the establishment of the Cultural and Creative Industries Innovation Fund (CIIF) as a pilot intervention and it will also administer the fund. The CIIF will support the development of the creative industries sector and encourage innovation, job creation and improved enterprise sustainability, by providing grants and technical assistance to governments, business support organisations and academia that support the creative industries sector. It will also provide funding to creative and cultural entrepreneurs and micro, small and medium enterprises (MSMEs) in CDB’s BMCs.” Currently, there is no clearly identified regional financing regime for the creative industries in the Caribbean and, with each country specialising in different creative industries sub-sectors, prioritising and allocating support has been challenging. Our investment towards the establishment of the CIIF aims to address this challenge and gives further momentum to an ongoing regional effort to harness the power and potential of the creative industries in the Caribbean,” CDB Project Director Daniel Best said. The CIIF seeks to support the enabling environment for the development of the cultural industries sector in BMCs with a focus on legislative reforms and incentive policies; improve the quality, depth and dissemination of research on the sector, and to strengthen the existing knowledge infrastructure related to cultural industries; enhance the technical capacity and knowledge of MSMEs in the cultural industries sector to improve their competitiveness to participate in local, regional and international markets; and strengthen business support organisations that support the cultural industries to deliver capacity-building at national and regional levels in the CDB’s BMCs. The CIIF will primarily support projects identified in the priority sub-sectors: music, including production, distribution, sales and events; audio-visual, film, interactive media, animation and gaming/digital; fashion, and contemporary design; and festivals and carnivals. The fund will comprise three components which will focus on supporting the enabling environment, the development of sector data and market intelligence and supporting MSMEs in the CIs sector to develop new products/services, implement new business models, improve employee and managerial capacity and access new markets. Governments, international organisations, and private sector entities will be able to contribute to CIIF to further facilitate the provision of capital to the creative industries sector. ¤ OECSBusinessFocus Sep / Nov

CDB Approves Funding to

CDB Approves Funding to Boost CDEMA BoostCapability CDEMA Response Response

Capability

The Caribbean Development Bank (CDB) has approved a grant to the Caribbean Disaster Emergency Management Agency (CDEMA) to assist with the review and strengthening of emergency-response procedures in participating states. Daniel Best, Director of Projects, CDB, notes, “The Caribbean is among the most disasterprone regions in the world. A recent disaster management readiness audit by CDEMA has revealed an urgent need for improved planning and coordination across sectors, to strengthen preparedness and response mechanisms at the national level. This grant supports improvements in these areas, which, if made, will significantly reduce potential losses due to hazard impacts.” The grant will provide resources to review and evaluate the preparedness and response procedures of The Bahamas, Barbados, Haiti and Saint Lucia. This will include an assessment of the national-level actions undertaken in response to Hurricane Matthew in 2016, and the development of recommendations for strengthening readiness and response protocols and procedures in these countries. Through the technical assistance intervention, support will also be provided for: the development of action plans, inclusive of a communications plan, for strengthening national preparedness and response in the four selected countries; creation of model guidelines for national shutdown procedures, including provisions for reaching the poorest and most vulnerable members of the society, including the elderly, women and persons with disabilities; and conduct of a regional workshop to discuss national preparedness. The grant will be funded through resources provided to CDB under the African-Caribbean-Pacific-European Union-CDB-Natural Disaster Risk Management in CARIFORUM Countries Programme (ACP-EU-CDB NDRM). The intervention is consistent with the bank’s strategic objective of supporting inclusive growth and sustainable development within its Borrowing Member Countries. It also aligns with the CDB’s corporate priorities of promoting disaster risk management and climate change mitigation and adaptation and improved protection and sustainable management of natural resources. It is also consistent with Result 2 of the ACP-EU-CDB NDRM Programme to improve local, national and regional resilience through strengthened early warning, national risk profiling, community-based disaster risk reduction and climate change adaptation. ¤

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St. Vincent Government Buys BOSVG From ECFH St. Vincent Shares Government Buys BOSVG Shares From ECFH Government Floats $35m Bond For BOSVG Shares Repurchase The government of St. Vincent and the Grenadines floated a three-year EC$35 million bond in late July, to raise the EC$32.4 million to repurchase 31 per cent of the Bank of St. Vincent and the Grenadines. The remaining funds will go to road repairs, Prime Minister Ralph Gonsalves told Parliament during a debate of the Supplementary Appropriation Bill, 2017. The repurchase of the shares comes seven years after the Gonsalves administration sold to Eastern Caribbean Financial Holding, (ECFH) for EC$42 million, a 51 per cent share in the bank, which was then known as the National Commercial Bank (NCB). The sale was made shortly after the government had borrowed EC$100 million to help capitalise the bank. “This bond was floated, particular institutions immediately said that they will purchase,” Gonsalves, who is also Minister of Finance, told Parliament on July 27, adding that the Bank of SVG itself said that it would purchase EC$10 million of the bonds. The General Employees Co-operative Credit Union (GECCU) said it would purchase EC$5 million, and the state-owned National Insurance Services (NIS) will purchase EC$10 million. “And we are raising $35 million,” Gonsalves said, adding that the bond was “quickly subscribed by businesses and individuals from Dominica, St. Lucia, Antigua, Grenada, St. Vincent and the Grenadines.” He said that within a week of the NIS buying EC$10 million of the shares, a regional financial intermediary based in St. Vincent contacted the NIS and asked them to sell $5 million of the bonds “at par or even, to sweeten it for the NIS, they would even consider a premium”.

He said a credit union, which he described as a “big investor in St. Vincent and the Grenadines”, said that when the time comes they are hoping that they can buy EC$5 million of the bank shares because they would like to be part owner of the Bank of St. Vincent and the Grenadines. “It’s an attractive instrument and of course, the purpose for which the bond has been floated to buy the bank, if the last two years you are making 7.5-8 million dollars in pre-tax profits, you are doing pretty well.” The 31 per cent of the shares in Bank of SVG that the government is repurchasing represents 4.45 million common shares, costing EC$32.365 million. Gonsalves noted that it has been said that shares of the National Commercial Bank had been sold to ECFH and others at a lower price than the government is repurchasing them at. ‘The simple reason is the valuation of the shares then was less than the valuation now. A simple question. I don’t do the valuation; the experts do the valuation and that is the number, which was arrived at in both circumstances,” Gonsalves said. With the repurchase, the government’s share of the bank moves from 12 to 43 per cent, while ECFH will retain 20 per cent -- down from 51 per cent. The National Insurance Services will retain its 20 per cent of the shares, while a number of private shareholders will continue to hold 18 per cent. ¤ Source: iWitness News St. Vincent & The Grenadines www.iwnsvg.com

However, the NIS said it is prepared to hold on to the share, Gonsalves said, noting that the interest on the bonds is 6 per cent per annum for three years. OECSBusinessFocus Sep / Nov

FEATURE

PM Skerrit Presents Dominica Budget Projects that Dominica is on a Path to Prosperity. Prime Minister Roosevelt Skerrit says Dominica is on the path towards prosperity based on the performance of the economy. Skerrit recently presented a budget of EC$918,255,358 (US$340 million) against the backdrop of the island being on a path of growth in 2016, despite setbacks in 2015 due to the passage of Tropical Storm Erika.

can be termed a decent middle-income salary, and all of those earning more will only pay tax on their income above this level. In this move we are saying to all that Dominica is a place that does not penalise work and income.”

In his presentation themed “Realising a modern and prosperous Dominica”, Skerrit said the economy recorded growth of 2.8 per cent.

The Prime Minister announced that until the new structure is in place, he would ease the burden and enhance the cash flow of workers in Dominica by increasing the minimum income tax threshold from $25,000 per year to $30,000 per year.

“The Eastern Caribbean Central Bank (ECCB) says the Dominican economy is expected to grow by 3.1 per cent in 2017 and 2018. This buoyant outlook contrasts sharply with the rest of the Caribbean and Latin America with the growth experienced by Dominica being clearly better than the rest of the Caribbean.” “This is Dominica’s moment and we as a country must seize it; we could cash in the growth dividend of successful economic management with a broad expansion of existing spending programmes. That would be far easier, but this Government is not in the business of sitting back and basking in its success. What we propose is a bold journey that begins this morning,” said Skerrit. According to the Prime Minister, non-tax revenues of $421.0 million are anticipated with a significant part coming from the Citizenship By Investment Programme which is expected to contribute $399.9 million for the year. The lion’s share of the budget $241.9 million will go toward the Ministry of Finance. “Included in this amount is a provision for meeting the cost of promotional activities and payment of due diligence fees relating to the Citizenship By Investment Programme (CBIP) in the sum of $101.7 million.” In the area of taxes, Skerrit said in order to achieve the Government’s vision, there must be a tax system “that incentivises employment over consumption and income over idle assets”. “Consequently, Madam Speaker, we shall be directing the National Fiscal Policy Panel to consider and advise on the abolition of the 15 per cent and 25 per cent income tax bands as early as the next fiscal year. Under this proposed system, Dominicans would only start paying income tax when their income reaches the 35 per cent tax rate. “This is a major, bold, move. By this measure, we will remove from the payment of income tax all Dominicans earning less than what OECSBusinessFocus Sep / Nov

“This means, Madam Speaker, that effective January 1, 2018, no person earning $30,000 a year or less will pay income tax and those working for more than $30,000 a year will have the first $30,000 exempted from income tax deductions.” He added that in the medium term, in order to replace the loss of income a new feature will be added “to our successful Citizenship By Investment Programme”. “We are examining a plan to encourage some of our new citizens, who do not reside in Dominica, to consider becoming tax residents here. The advantage for them would be a tax identification number, which is increasingly becoming a requirement for carrying out international business.” He said for new citizens who wish to become tax residents here without living on the island for the normal requisite time, they may be given the option of becoming tax residents “as long as they pay a minimum amount of income tax”. “This would serve a number of purposes. Most importantly, it would ensure that our engagement with our new citizens is deeper and more continuous. But it also has the potential to provide a substantial amount of additional revenue annually.” Skerrit said that it’s likely that this new proposal could yield more than the $34.0 million raised last year by all of the existing income taxes in the country. “We are excited that this proposal would graduate the CBIP to a new level; from a programme based around an initial investment to one where there was a constant flow of annual taxes from new citizens. As soon as we are satisfied that we have the right design and have fully assessed the costs and benefits and the risks and opportunities, we will bring it to Parliament,” he said. ¤ www.oecsbusinessfocus.com

Tax Administrators Assemble For 24th COTA

Tax Administrators Assemble For 24th COTA A number of tax administrators from across the CARICOM region met in St. Kitts and Nevis in late July to attend the 24th General Assembly and Technical Conference of the Caribbean Organisation of Tax Administrators (COTA), with the aim of encouraging deliberations on topical issues relating to the efficient mobilisation of tax revenues to support growth in member states, as well as the sharing of experiences among tax administrators in the region. The meeting from July 24-28 was hosted by the St. Kitts and Nevis Inland Revenue Department, and held under the theme “Promoting Voluntary Tax Compliance and Cooperation – A paradigm shift in tax administration in the Caribbean Community”. Delivering the featured address at the opening ceremony, Deputy Prime Minister, Hon. Shawn Richards stated that a conference of this nature is vital not only to St. Kitts and Nevis, but to all member states within the CARICOM region. “At this time in our region, as we continue to grapple with the challenges inherited from the global slowdown in economic growth, we are acutely aware of the pressing obligation to our citizens to ensure that they live in stable states that create economic opportunities for individual prosperity and corporate growth and expansion,” said Minister Richards. “Every state in our CARICOM community has the common goal of creating, maintaining and sustaining an economic and social environment that stimulates innovation, productivity and wealth creation among our people, while at the same time affording us the capacity to provide the social safety nets for the vulnerable segments of our populations.”

The deputy prime minister said that the onus is on the tax administrators to ensure that governments receive the help necessary to achieve the common goals. “As tax administrators, you have the invaluable role and tremendous responsibility of assisting the governments of the region to achieve these goals. You are the collectors of our revenue and managers of our revenue systems,” he said, while quoting a chief economist in the Australian Department of Foreign Affairs and Trade, who stated that ‘a well-functioning revenue system is a necessary condition for strong, sustained and inclusive economic development’. “Our revenue streams fund the public goods and services that we consider that governments should provide for the citizens of the state, services that our people expect and that we believe they deserve. It is this revenue that provides for health and education; safety and security; transport and communication; and infrastructure and social safety nets.” Minister Richards added that the tax administration itself can be “regarded as an intangible infrastructure that facilitate the economic business of government”. Also addressing the COTA Conference, Evelyn Wayne, Director of Economic Policy and Development of the CARICOM Secretariat, said that the conference is testimony to the determination and strength of purpose, which standardises CARICOM Tax Administrators. ¤

OECSBusinessFocus Sep / Nov

The Emerging Role Of Peer-To-Peer Lending In SME Financing By: Michelle Stephens

Financial institutions play a critical role in supporting the survivability, growth and sustainability of small and medium-sized enterprises (SMEs) through investments, savings and lending services. SMEs argue that this role is undeveloped and credit financing is largely inaccessible. They further argue that this inaccessibility is due in part to the slow approach to innovation by the traditional financing sector, its cultural inflexibility to use substitute client data for loan applications, capability limitations in responding to new industries (e.g. creative and green industries), and overall risk management policies to conform to the regulatory environment. In 2016, the Caribbean Development Bank (CDB) reported that SMEs contributed 50% to the regional gross domestic product. Given the recognised importance of SMEs to individual economies, a relatively new solution called ‘peer-to-peer’ (P2P) or marketplace lending has emerged to address the accessibility gap in financing for small and medium-sized enterprises. According to the 2016 ‘Americas Alternative Finance Benchmarking Report’ by the Cambridge Centre for Alternative Finance, the online alternative finance market within Latin America and the Caribbean accounted for US$72.88 million or 66% of the total alternative finance transaction volume, a 97% growth rate between 2014 and 2015 driven by business finance. So is P2P lending right for your business? Let’s have a look. How It Works P2P lending is an online platform that enables lenders and borrowers to exchange investment and credit financing goals outside of the traditional banking system. It focuses on loans or bundles of loans, and earns revenue via fees and commissions from borrowers and lenders. P2P lending has its origin in the United Kingdom (UK) with the launch of the Zopa platform, and has developed alongside the rapid diffusion of technology, rising consumer trust in online transactions and appetite for immediacy, as well as the proliferation of public (online) data. P2P lending may be more suitable for established SMEs with a trading history that are looking to grow, since the borrower will need to provide basic company and financial details, together with the reason for the loan, the amount and term. The P2P platform will then conduct a ‘soft credit search’ to determine a credit score and estimate the monthly loan rate. If the borrower accepts the rate, individualised fees and repayment protocols, the funds will be made available online within a few hours or days. On the other hand, the investor will identify their ideal investment return by specifying the maturity period or their risk profile or a combination of the two. Once approved the investor submits their investment, an interactive dashboard allows them to manage their activity. OECSBusinessFocus Sep / Nov

How Does It Differ? Traditional banks intermediate between savers and borrowers, earning income by managing spread between the interest charged on loans and that paid on savings. The P2P lender matches lenders with borrowers via an online platform and makes money from commissions and fees from each respectively. They focus on loans and do not hold capital (from savings). Bank depositors have no control over how their savings are used, but P2P lenders disclose to investors the receipts on funds lent out. Additionally, banks need a liquidity buffer since deposits are typically shorter term than loans, so they engage in maturity transformation which P2P lenders do not. Overall, P2P lending adopts a more customer-centric approach to how funds are managed, and their simplified model increases transparency. Pros & Cons of P2P Lending P2P lending platforms have a lower cost operating model than traditional banks and are not regulated in the same way, enabling them to compete with advantages that the banks cannot. The pros of P2P include: • Better customer experience for borrowers, driven by speed and convenience. • Access to funds in an efficient and timely manner through faster decisions and competitive rates. • Less documentation needed for a loan application. • Absorbs and diversifies risk better by matching the appetite of borrowers and investors, and minimises risks by spreading lenders’ investments across a large number of borrowers. • Affords increased transparency by allowing investors to choose whom they lend to. Critics argue that P2P lending gives a false sense of security about the balance of risks versus returns to the investor. In response, P2P platforms have introduced visible cautions on their websites about the risks of default. While this form of lending may sound innovative, it has drawbacks which borrowers and investors should be mindful of. • Some P2P platforms still require traditional documentation e.g. financial statements, forecasts and business plans for at least two years, thereby eliminating start-ups. • In some markets, P2P lending is not regulated so provides limited protection of funds invested, and lenders may impose higher interest rates than banks due to higher default rates. Some platforms may even impose borrowing limits. • Tangible projects (e.g. plant and equipment) have higher rates of funding. The Way Forward Globally, P2P lending continues to develop, but within the Caribbean Community (CARICOM) growth is slower. Carilend, a Barbados-based P2P lending platform, began operations in May 2017 focusing on personal lending. CARICOM is yet to see a P2P lending platform incorporating lending to SMEs and other businesses. However, it is anticipated that with the continued growth in SMEs’ contribution to economies across the Caribbean, one such P2P lending platform will emerge, but for the established SME seeking finance for growth, the commercial and development banks will continue to be a primary source for financing. ¤

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Insurance Companies to Comply with New Accounting Standard By: Shawn Cumberbatch

Grenada, Canada Sign Tax Information Exchange Agreement

Insurance Companies to Comply with New Accounting Standard Grenada, Canada Sign Tax Information Exchange Agreement

The Insurance Industry in the Caribbean should prepare for significant impact from a new accounting standard. Recently professional services firm PricewaterhouseCoopers gave notice of the pending introduction of International Financial Reporting Standard (IFRS) 17. Now, the Association of Chartered Certified Accountants (ACCA) is also highlighting the importance of the provision. ACCA’s head of corporate reporting Richard Martin said it was a “significant moment” when the International Accounting Standards Board’s project on insurance accounting “comes to fruition after 20 years of development”. “Those many years have been taken up with a fundamental examination of how insurance business could be best accounted for and extensive input from the insurance industry on how it can be implemented in a practical way,” he said. “Existing insurance accounting treatments around the world are very variable and none are the same as IFRS17. They will by 2021 be replaced by a consistent treatment in all countries using global standards. The scope of this standard is limited because it applies only to the relatively restricted number of insurance companies, but they do form a very significant sector in the economy.” He added: “But for those companies the impact will be very significant – both in terms of the changed accounting numbers that they will report and in terms of the data that may need to be assembled. Investors and other users of those financial statements will also have to adapt to the new numbers.” Martin said despite the long development period for IFRS17 “not all parties may be content with all aspects of the new standard”. However, he said its “consistent accounting treatments will be a major advance, and the imperfections perceived by some are an inevitable price that has to be paid”. ¤

Grenada and Canada have signed a Tax Information Exchange Agreement, which, according to Prime Minister Dr Keith Mitchell, is not based purely on revenue, but also on securing the country. The agreement was recently signed with Canada’s High Commissioner to Barbados and the Eastern Caribbean, Marie Legault. According to Mitchell who is also Grenada’s Finance Minister, there is need for even greater transparency and accountability in governance, with the world becoming a global village, hence Grenada’s decision to pass the Fiscal Responsibility Act. “In this period where we are dealing with terrorism, all sorts of madness is taking place in the international community, we are to share information on taxes because they might be, in some cases, links that we might be able to detect so this is not a simple decision of just revenue,” the Prime Minister said. “It is also about securing our borders and the world environment in which we live. So I am particularly heartened by the step we have taken. We have done it with other countries around the globe”. The Tax Information Exchange Agreement is designed to promote international co-operation in tax matters through exchange of information. It will also help both countries to look further at their vision for security and stability in the region. Legault says the signing shows that Grenada and Canada are committed to transparency. “The signature is something that I am very proud that we are doing because it will be something that will increase our relationship on the economic side,” said Legault. “This is an important step for Grenada and Canada and I am very happy that we are able to do this, to see how we can demonstrate that Canada and Grenada are committed to transparency”. According to Canadian MP, Celina Ceasar Chavannes, who was born in Grenada, the signing will ensure greater accountability. h¤ OECSBusinessFocus Sep / Nov

FEATURE

CIBC FirstCaribbean Performs Well Despite Challenges

CIBC FirstCaribbean Performs Well Despite Challenges By: Shawn Cumberbatch

The Caribbean’s “uncertain economic environment” has not primarily as a result of higher business taxes and technology stopped CIBC FirstCaribbean International Bank from achieving systems related expenditure. Loan loss impairment expense “strong operating results”. of US$6.9 million was down US$700 000 or nine per cent. An improved loss experience and solid loan recovery activity continue Chief Executive Officer (CEO) Gary Brown, commenting on the to drive lower loan losses,” he added. bank’s condensed consolidated financial statements for the six months ended April 30, reported its earning of a US$37.2 million He also said that “despite the continuing low credit demand and profit in the second quarter of its current financial year. This was uneven investment activity across the region, the bank’s loan a US$2.9 million (eight per cent) increase compared to the same growth has been encouraging across both the retail and corporate period last year. and investment banking segments, registering a US$315 million or five per cent increase in productive loans over the second On the other hand, FirstCaribbean’s profit for the two quarters quarter of the prior year”. detailed was US$70.9 million, “down $2.1 million or three per cent compared with the same period last year”, the CEO added. “During the second quarter, the bank continued to make progress against its stated objectives of growing the business and In his review, Brown said: “Overall, the bank delivered another enhancing the client experience. Our challenge continues to be quarter of strong operating results and showed profitable growth the efficient allocation of capital in support of client initiatives in despite an uncertain economic environment.” these subdued economic conditions,” Brown reported. ¤ In the six-month review period, “total revenue was US$264.6 million, down US$5.6 million or two per cent compared with the same period last year primarily due to lower interest margins and non-recurring securities and foreign exchange gains recorded last year”.

Courtesy: Nation News Photo: CIBC FirstCaribbean International Bank CEO Gary Brown (right) congratulates customer service representative Sharon Brereton (left) after presenting her with “good deeds beads”. (GP)

“Operating expenses of US$182.4 million were up US$2.3 million or one per cent compared with the same period in the prior year OECSBusinessFocus Sep / Nov

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GraceKennedy Reports 19% Profit Shortfall for Qtr 2

GraceKennedy Reports 19% Profit Shortfall for Qtr 2 GraceKennedy Group has reported a decline of $516.4 million or 19.1 per cent in net profit year over year for its second-quarter 2017 results and apportioned the decline on a non-recurring gain in 2016, which accounted for $423.5 million of the amount. “As previously reported, this non-recurring gain was realised on the liquidation of some non-operating subsidiaries for the corresponding period of 2016. Without this, net profit for the current period would have been lower than the corresponding period of 2016 by 5.5 per cent,” GraceKennedy said in a media release. Nonetheless, the company reported revenues of $46.4 billion, an increase of $2.3 billion or 5.1 per cent over the corresponding period of 2016. This was driven by growth in both its food trading and financial segments. Profitability for the quarter was ahead of plan, with net profit for the period at $2.2 billion. In speaking to the company’s performance, Group CEO Don Wehby said, “We are satisfied with the profits of $2.2 billion which, while below prior year, are ahead of plan as factors such as costs associated with expansion were taken into account in our 2017 planning process. The group is on track for improved operating performance over prior year.” In June, the board of directors approved an interim dividend of 38 cents per stock unit to be paid on 26th September 2017, a 12 per cent increase over the dividends paid in September 2016. The food trading segment continued to experience growth in the reporting period. Included among the highlights of the period was GraceKennedy’s agreement to acquire Consumer Brands Ltd, a large player in the Jamaican distribution market.

“Our expertise in managing top-tier brands and deep distribution channels makes this acquisition a natural fit for us,” said Wehby. The group also announced the planned opening of its sixth manufacturing plant in Jamaica. When opened, it will produce a range of conveniently portioned and packaged locally grown fruits and vegetables, including frozen produce primarily for export markets in North America and the United Kingdom. “We are very pleased that GraceKennedy Foods (USA) LLC continues to experience growth from both the Grace and La Fe brands over the corresponding period of 2016,” said Wehby. The company was recently appointed the exclusive distributor of the premier Puerto Rican coffee brand, Yaucono, which is already having a positive impact on third-party brand sales. GraceKennedy also reported positive feedback from customers to its frozen patties, which have gotten shelf space in 240 Walmart stores across Atlanta (Georgia), Florida and New Jersey. Wehby disclosed that the GraceKennedy Financial Group experienced mixed results during the period under review. GraceKennedy Money Services, and the banking and investments segment reported strong growth in both revenue and pre-tax profit over prior year. GK Capital continued to generate improved revenues from its private equity portfolio. However, the insurance segment experienced a decline in both revenue and pre-tax profit over prior year. While the segment experienced significant growth in its underwriting performance, finance and investment income were lower than the prior year. ¤

The company currently distributes the Proctor and Gamble (P&G) line of products, among other international brands. OECSBusinessFocus Sep / Nov

Republic Group Records Republic Group Records US$138.3M in Profits US$138.3M in Profits

Heineken Reports

Heineken Reports 48.6% Profits Leap for First Half of 2017 Leap for 48.6% Profits

First Half of 2017

Republic Financial Holdings Limited has recorded a net profit attributable to shareholders of US$138.3 million for the third quarter ended June 30, 2016. This represents an increase of 1.1% over the corresponding period in 2015. Total assets stood at US$10.5 billion at June 30, 2016, an increase of 10.4% over June, 2015. The Group’s Chairman, Ronald Harford, in announcing these results said that the 2016 results consolidate the performance of the new subsidiaries – Republic Bank (Suriname) N.V and HFC (Ghana) Limited – which was not the case in the comparative period in 2015. ¤

‘Satisfactory’ Results Republic Group Records US$138.3M in Profits For OCM Group The One Caribbean Media (OCM) Group has reported “satisfactory” results for the six months ended June 30, 2017, despite operating in a difficult economic environment, chairman Faarees Hosein said yesterday. During the period, the group recorded revenues of $217.6 million (US$32 million), which were one per cent less than the revenues for the same period last year of $220.6 million (US$32.4 million), Hosein said in OCM’s results for the half year. Net profit before tax of $40 million (US$5.9 million) was achieved, a decline of five per cent for the corresponding period last year of $42 million (US$6.2 million). This performance includes the investment in broadband, Hosein said in his statement accompanying the financial results. “Despite the economic conditions, the group remains confident that our strategies will continue to support the delivery of acceptable results to our shareholders,” Hosein said. OCM directors have approved an interim dividend of 27 cents per share (2016: 27 cents), which will be paid on September 29. OCM is the parent company of Caribbean Communications Network (CCN), which publishes the Express and operates TV6. ¤

OECSBusinessFocus Sep / Nov

Dutch brewing giant Heineken reported a 48.6 per cent leap in first half profits for 2017, with beer sales boosted by warm weather in Europe and its new zero alcohol brand. Profits were up to 871 million euros (US$1.02 billion) in the first half of 2017 compared to 586 million euros over the same period in 2016, the company said in a statement. “We delivered strong results in the first half year, with all four regions contributing positively to organic growth in volume, revenue and operating profit,” Chief Executive Officer JeanFrancois van Boxmeer said. Europe in particular “delivered a good performance,” he remarked in a statement, with the company noting the “particularly good weather” in the region. Total sales in the first six months of 2017 were up 3.8 per cent to 10.47 billion euros, compared to 10.09 billion in the same period last year. “After a slower first quarter given Easter timing, the earlier Tet Vietnamese New Year and tough comparatives, all regions saw higher organic volume growth in the second quarter,” the Amsterdam-based company said. Its new brand Heineken 0.0 was launched in the second quarter in 16 markets, and the company said it “already looks promising”. “Overall in Europe, there was double digit growth for low and no alcohol volume, including strong performance in Spain, Netherlands, Poland and Austria,” it said. The company warned however that “economic conditions are expected to remain volatile” and it expected to continue to be hit by the “negative impact” of currency fluctuations. Heineken is the world’s second-largest brewer after global number one AB InBev clinched a mega deal for its nearest rival SABMiller in November 2015. It was the third biggest takeover in global corporate history. The company also announced that it had completed on May 31 its acquisition of the Brazilian unit of Japanese brewer Kirin for 594 million euros. Founded in the 19th century, Heineken produces and sells more than 250 brands including Jamaica’s Red Stripe, Desperados tequila-flavoured beer, Sol and Strongbow cider. It employs over 80,000 people and operates in 70 countries around the world. ¤ www.oecsbusinessfocus.com

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FEATURE

Growing OECS Economies Through The Private Sector By: Clarence Henry Economist and Programme Officer, Regional Integration, OECS Commission

Arthur Lewis, development economist and Noble Laureate in the Science of Economies, once argued that economic growth is propelled through some engine of economic growth (Lewis 1980). During the past two decades, the OECS economies witnessed the decline of its engine of economic growth â&#x20AC;&#x201C; with the decline in the banana and sugar industries in the late 1990s. Despite some measure of economic repositioning, through support to the tourism industry from the 1990s onwards, the results and impacts following the decline of these industries are not only noted in the socio-economic statistics â&#x20AC;&#x201C; lower economic growth, higher crime levels and unemployment rates, but is also manifested in the decline in the standard of living of citizens of OECS States â&#x20AC;&#x201C;growth in real GDP per capita income in the OECS in the most recent period has been slow. While the OECS governments have sought to sustain social and economic stability through various social and economic programmes, the limit to public led economic growth and development is quickly being acknowledged due in part to higher public debt levels, which has led to limited fiscal policy space to sustain efforts aimed at socio-economic recovery. What then is the next economic growth engine? Ruprah and Sierra (2016) note that there is need for greater focus on building the private sector in the Caribbean. Private sector led growth may provide OECS economies with the opportunity to turn the page on high unemployment and persistent low economic growth. OECS governments are becoming more cognizant of the wider role that the private sector plays in pursuit of economic growth and development. Increasingly, there has been greater attention OECSBusinessFocus Sep / Nov

to the development of this sector through various government policies and programmes. These policies are aimed at enhancing the capacity of the private sector to grow and become globally competitive, resulting in growth in employment opportunities and foreign exchange earnings. Ensuring that the private sector is not constrained by small markets is a fundamental contributor to promoting private sector led growth. The OECS Economic Union, established through the Revised Treaty of Basseterre (RTB) calls for the creation of a single financial and economic space within which labour, goods, capital and enterprise throughout all seven (7) protocol member states (Antigua and Barbuda, Dominica, Grenada, Montserrat, Saint Kitts and Nevis, Saint Lucia and St. Vincent and the Grenadines) are free to move. No longer would the production activities of a manufacturer in St Vincent and the Grenadines be confined to a market of approximately 110,000 people, but rather, such manufacturer will benefit from ease of access to a market of approximately 620,000 people and a GDP size of approximately US$ 5, 477, 839, 761.0 (based on WDI 2015 estimates). With the operationalisation of the OECS Economic Union, no longer is a small producer in Grenada confined by the few skilled workers within the national economy but instead such producer has access to all available skills within the OECS Economic Union Area (EUA), given the existing indefinite stay regime and the elimination of work permit requirements. The OECS Economic Union, therefore, provides the private sector within the OECS EUA with the launch pad upon which to grow and become globally competitive in the long-term. www.oecsbusinessfocus.com

Notwithstanding, the extent to which the private sector will benefit from a larger market created through the establishment of the OECS Economic Union will depend on the effectiveness of Table: The World Bank DB Getting Credit Ranking 2017 for OECS Economies SIDS

Rank

Distance to Frontier (DTF)

Antigua and Barbuda

157

Dominica

139

Grenada

139

Saint Kitts and Nevis

157

Saint Lucia

157

St. Vincent and the Grenadines

157

Jamaica

Trinidad and Tobago

Mauritius

Singapore

OECS Average

175

26.7

Source: World Bank Ease of Doing Business Ranking 2017

In tackling this issue, OECS governments need to continue to collaborate with the Caribbean Development Bank (CDB), allocate more resources into national development banks and create avenues for greater access to non-traditional sources of finance. Furthermore, these private sector assessment reports also note that the labour market within the OECS is inadequate. These reports note that there is a mismatch between skills demanded by the private sector and those being supplied along with a near absence of soft skills. In this regard, the OECS governments are seeking to improve the output from the education sector. Consequently, at the regional level, there is a focus on strengthening the education sector as noted by the OECS Education Sector Strategy (OESS 2012). It is important that the national and regional efforts promote better attainment at the CXC CSEC levels, increase access to tertiary education (including university education), and allow for greater access to technical and vocational training within the OECS. Growing the private sector will be good for economic growth and development. Consequently, confronting the challenges faced by the private sector is important. In particular, access to finance (and credit) is essential for growing SMEs and for addressing low attainment in the education sector. Increasingly, these are priority areas for OECS governments. Â¤

policy measures to grow the private sector. Recent Private Sector Assessment Reports conducted by Compete Caribbean (2014) suggest that the OECS economies have a very small private sector which is dominated largely by small and medium size enterprises (SMEs) with significant informal sector activities. This was further validated by Ruprah and Sierra (2016) who found that, among small states, Caribbean firms tend to be smaller with about 69% of firms employing 20 or fewer employees. Public policy measures therefore, need to encourage a reduction in the informal private sector while simultaneously encouraging growth in the formal private sector. However, the private sector is unable to grow once supply side constraints, such as limited access to finance and inadequacy in the skill sets of the labour force, persist within the OECS. Recent World Bank assessments suggest that OECS economies do not perform well with respect to access to finance. Access to finance is needed to provide the resources for increasing the productive capacity of the private sector, in particular SMEs, to take advantage of the wider regional market and invest in modern technology and systems needed to enhance global competitiveness. However, the OECS economies Ease of Doing Business (DB) ranking has been declining and, with respect to getting credit, is unfavourable against comparative SIDS such as Jamaica and Mauritius.

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The extent of this challenge is noted by the Distance to Frontier (DTF) average score of 26.7 â&#x20AC;&#x201C; which highlights the OECSâ&#x20AC;&#x2122; average in comparison to the leading country with respect to the getting credit ranking (see Table - The World Bank DB Getting Credit Ranking 2017 for OECS Economies). The Economist (2015) notes that private sector enterprises are too small and lack adequate collateral to access traditional sources of finance from financial intermediaries such as commercial banks. This reality is made more challenging due to the high collateral requirements of financial intermediaries within the OECS (The Economist 2015). OECSBusinessFocus Sep / Nov

Retirement and Us

Retirement and Us By: Dr. Terrance K. Martin

Today, the OECS Region is largely dependent on defined benefit plans/ pensions to provide financial support in retirement. However, only those lucky enough to be civil servants or those who work for larger private firms have access. But even those that have pensions are not insulated from the disutility of an underfunded retirement. With limited or no access to retirement plans, the majority of individuals are forced to self-fund their retirement. Individual preferences may explain the variations in retirement savings in a self-funded retirement system. One important preference is the weight placed on future consumption vs present consumption. Do I spend this $100 today, or do I wait until the future and possibly gain $110? Another important factor is the lack of financial knowledge among many workers which may contribute to suboptimal savings outcomes. On average, households save less than they would need to maintain consumption during retirement; and, therefore, struggle to maintain constant marginal utility from consumption. Notably, the presence of Social Security reduces the need for retirement saving for a number of households. Social Security represents a national annuitization program and replaces a large percentage of income for lower income households during retirement, but only a small portion for middle-income workers and even less for the higher-income earners. Further stress is being placed on Social Security because people are living longer and in many cases retiring much earlier, so the number of contributors to retirees maybe decreasing overtime. Strategies To Address Retirement Income Issues First, the obvious gaps in retirement funding has actually provided an opportunity for the Financial Services sector, but it appears to have been largely ignored at least in most smaller island states. Based on Rational Choice Theory, households should find annuities attractive because annuities address longevity risk; however, not many providers sell immediate or deferred annuity products. Instead Universal Life insurance policies seem to be the product of choice sold even when they don’t meet the real needs of the consumer (that’s an entirely different article). Outside of Social Security, the pension system annuities appear to be nonexistent in the region. Annuities can help households smooth consumption up to death. Second, we need more access active participation in defined contribution (DC) plans. DC plans remain self-funded and managed, but allows for growth and reinvestment. Now, we do have the Eastern Caribbean Stock Exchange, but there is hardly any trade volume and thus very little share price appreciation. Most companies listed do pay handsome dividends, but what we need is growth and not just income generation. No, universal insurance is not the answer in the scenario, although there OECSBusinessFocus Sep / Nov

maybe downside risk protection, you are also limited with the upside growth. So if we don’t have market in the region to help with wealth accumulation, then we need to look outside to the US, Canada, and Europe. How do you get this extra $10 in the future that I mentioned earlier? With the absence of a robust capital market structure, this becomes a valid question. How do you access these markets? Reach out to Registered Investment Advisors such as Tranquility Financial Planning which although US based has pledged to help Caribbean citizens invest in global markets. Last, any discussion on investing is always met with resistance and fear. This is understandable, it goes back to financial knowledge. But if we lack financial knowledge, then we should hire someone that has this knowledge. No, I am not only referring to bankers or insurance agents, but a viable alternative. You need a Personal Financial Planner. Trust me, they do exist. Currently, there are nationals from St. Kitts & Nevis, St. Lucia, Antigua, Dominica, and Grenada with Master’s degrees or higher in Personal Financial Planning. Professional financial advice has the ability to facilitate rationale household financial and investment decisions. Financial planners correct confounding cognitive errors that would have otherwise led to investment mistakes such as poor diversification. Clients are more likely to remain focused on long-term goals. Additionally, clients working with financial planners are found to be less risky and speculative when trading in household portfolios. We need more engagement and discussion on how to create an environment that leads to more sustained and comfortable retirement for all of our citizens. Hopefully, this brief article starts the conversation. Dr. Terrance. K. Martin hails from Saint Kitts and Nevis. He is an award winning researcher and an assistant Professor of Finance at the University of Texas Rio Grande Valley in Edinburg, Texas. He also serves as the Center Director for the Edinburg center of Economic Education, Director of Financial Literacy initiatives and Program Director of the College of Business and Entrepreneurship’s Personal Financial Planning Program. His research has been featured on NASDAQ.com, CNBC, CNN Money, Yahoo Finance, WalletHub, the Wall Street Journal, Forbes, Kiplingers as well as several newspapers and magazines across the United States of America and international conferences. You can find more of his work on www.tranquilityfp.com www.oecsbusinessfocus.com

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ECONOMY & TRADE

Regional energy supply companies have to change business model Regional Energy Supply Companies Have To Change Business Model

IICA launches publication to assist in achieving sustainable development IICA Launches Publication To Assist In Achieving Sustainable Development

Photo: JPS Chairman, Seiji Kawamura (left) and Chief Technology Officer, Gary Barrow discuss the nuts and bolts of power plant machinery on the opening night of the 2017 CARILEC Engineering Conference, being held at the Montego Bay Convention Centre this week.

The Inter-American Institute for Cooperation on Agriculture (IICA) says it has launched an initiative that includes an analysis of agricultural policies and their contribution to sustainable development in the region. IICA said that in an effort to support modernisation of the agricultural policies that many countries in the Americas require, it has launched the new publication, which is a series of recommendations that can be adapted to the particular needs of each country for further implementation.

Executive Director of the Caribbean Maritime Institute (CMI) Fritz Pinnock says that the Jamaica Public Service (JPS) and other Caribbean electricity suppliers are now faced with the rising trend of solar and battery technologies, which have implications for their traditional business models.

IICA said that in light of the objectives defined in the United Nations 2030 Sustainable Development Agenda it is imperative that integrated agricultural policies be pursued, given that this economic activity extents way beyond primary food production and the rural environment: it touches all aspects of modern life.

According to Pinnock, consumers of electricity are dramatically changing how they want energy generated and delivered to their homes and businesses.

It said that the objectives of this agenda are closely linked to agriculture, since, as outlined in the agenda, agriculture can contribute to putting an end to poverty and hunger, promoting the use of clean energy, reducing inequalities, producing and consuming responsibly and combatting climate change and its effects.

Caribbean utilities must therefore re-examine their own model of energy distribution and decide on how to respond to the growing trend of self-generation, Pinnock argued. He was speaking at the official opening of the 2017 CARILEC Engineering Conference, held recently at the Montego Bay Convention Centre, in Jamaica. Speaking under the conference’s theme, “Re-Engineering our Energy Future: a Utility in a Disruptive Age,” the CMI head asserted that utilities must consider how they can move from being purely energy companies, to being more technologically based organisations, looking at the use of sensors, communications and other software. Meanwhile, Chief Technology Officer at JPS, Gary Barrow, in his address to the over 350 participants, pointed to significant advancements in the use of technology in the company, as it recognises the pressing issue of modernity, rapidly evolving technologies and heightened customer expectations. ¤ OECSBusinessFocus Sep / Nov

The new document, which is available in Spanish and English, systematises seven hemispheric dialogues that were coordinated by IICA between 2014 and 2016, and in which specialists from the Institute, government officers, representatives from the academic and private sectors as well as commentators, analyzed the agricultural policies of the United States, Brazil, Canada, the European Union, the Central American region, China and the Caribbean. “During these discussion, there was an exchange of knowledge, analysis and identification of lessons to be learnt regarding the design of policies that can then be applied to the specific conditions of each country, taking into account their differences and peculiarities,” according to Joaquín Arias, the author of the publication and IICA specialist in policies and sectoral analysis. Courtesy: CMC www.oecsbusinessfocus.com

BVI to Implement Environmental, Tourism Levy for Visitors

Visitors to the British Virgin Islands will, as of September 1, 2017 start paying an environmental and tourism levy of US$10 at ports of entry. The Government, in an announcement, said the levy is being implemented after the House of Assembly passed the Environmental Protection and Tourism Improvement Fund Act 2017. The Act was gazetted on June 12, paving the way for visitors arriving in the territory via air or sea to be charged the levy. However, the legislation makes provision for some people to be exempted, including residents and belongers, non-residents two years old or under, and guests of the Government.

BVI to Implement Environmental, Tourism Levy for Visitors

“Other exemptions include visitors arriving in the (British) Virgin Islands on a second or subsequent occasion in the course of the same visit, persons in transit who on arrival do not leave the airport or dock, and crew of vessels,” said a media release from the Government Information Service. “All visitors must have the necessary documents available to help determine their status.” The Government said the funds collected will be used to facilitate environmental protection and improvement, climate change, as well as the maintenance and development of tourist sites and other tourism-related activities. ¤

Regional Climate Centre Established in Barbados accounts for seven of the world’s top 30 water-scarce countries, and Barbados is in the top ten of that list,” she said.

Regional Climate Centre Established in Barbados

The Caribbean will benefit from the establishment of the Regional Climate Centre (RCC) – the first of its kind in the western hemisphere. The centre which is located at the Caribbean Institute for Meteorology and Hydrology (CIMH) in Barbados was financed by the United States Agency for International Development (USAID). United States Ambassador to Barbados and the Organisation of Eastern Caribbean States Linda Taglialatela noted the importance of having such a centre in the region. “In the past two decades, the Caribbean has experienced several natural phenomena, including floods, droughts, and hurricanes, which can threaten economic growth. Also, the region presently

The US government provided support for the RCC through infrastructural work at the CIMH, as well as providing staff training and other resources to help manage the centre. The project got underway following a meeting in 2009 when the countries of North America, Central and South America and the Caribbean, which makes up this region of the World Meteorological Organization (WMO), discussed the importance of having a regional climate centre. “In 2010, the governing body of the CMO supported our proposal to move in this direction, and we started the demonstration phase in 2012. Eventually, when the WMO’s governing body met in China last October, we took a proposal to them and they were impressed with what they saw, and ultimately we were approved as a Regional Climate Centre in May of this year,” said Coordinating Director of the Caribbean Meteorological Organisation (CMO) Tyrone Sutherland. With the establishment of this centre, Executive Director of the Caribbean Disaster and Emergency Management Agency Ronald Jackson urged regional governments to ensure the venture is a sustainable one, by providing it with the resources it needs to continue its work. ¤ OECSBusinessFocus Sep / Nov

ENVIRONMENTAL FOCUS

LUCELEC to Construct Solar Farm in St Lucia

LUCELEC to Construct Solar Farm in St Lucia St Lucia Electricity Services Ltd (LUCELEC) has advised that it will be moving ahead with the construction of a Solar Farm on the island. In a statement, the company said that when connected to the grid, the Solar Farm’s 14,900 photovoltaic (PV) panels are expected to generate the equivalent electricity used by nearly 3,500 homes while offsetting over 3,800 metric tons of carbon dioxide (CO2) annually. “The Solar Farm is historic for St. Lucia as it will be the first utilityscale renewable energy project on the island, where dieselpowered generators currently account for over 99 per cent of electricity generation, the statement noted. LUCELEC’s Managing Director, Trevor Louisy, said ‘we see this as the first major practical step in St. Lucia’s energy transition process towards a more secure and sustainable energy supply, and LUCELEC is pleased to help make that happen”. Last year, LUCELEC and the St. Lucia Government jointly developed the National Energy Transition Strategy, an energy roadmap informed by independent technical analysis that paves the road for a sustainable, reliable, cost-effective, and equitable electricity sector using the island’s local resources. Infrastructure, Ports, Energy and Labour Minister Stephenson King said the solar project in La Tourney aligns well with the government’s renewable energy targets and with the National Energy Transition Strategy produced last year. OECSBusinessFocus Sep / Nov

“We congratulate LUCELEC on their contract signing and look forward to seeing the first utility-scale solar project in operation.” The procurement process for LUCELEC’s Solar Farm was facilitated with technical assistance from non-profit partners Clinton Climate Initiative (CCI), an initiative of the Clinton Foundation, and Rocky Mountain Institute-Carbon War Room (RMI-CWR), alongside global energy and engineering advisory firm DNV GL. The organizations supported LUCELEC in the project development, bid evaluation, and contract negotiations to ensure the Solar Farm meets international standards and best practices while procured at a competitive price for the Caribbean region. “The solar installation and recently completed National Energy Transition Strategy makes Saint Lucia a regional clean energy transition leader, and the strong collaboration between LUCELEC and the Government is the reason why they’ve been able to move forward,” said RMI-CWR Director Justin Locke. CCI Director of Programmes and Policy, Jesse Gerstin, said the “Caribbean islands are at the front lines of climate change, yet they rely heavily on imported fossil fuels, which contribute to greenhouse gas emissions and are also expensive. “This Solar Farm provides the next step in building Saint Lucia’s energy resilience by providing its households with access to a clean, local source of power.” The solar project ground breaking is scheduled for September, with the construction scheduled for completion by mid-2018. ¤

www.oecsbusinessfocus.com

UN Sec General Lauds CARICOM On Global Issues 2011 the United Nations General Assembly adopted a political resolution on the fight against the prevention of NCDs globally. While the Heads of Government of CARICOM at their recently concluded 38th Regular Summit recognised that the Community had not sufficiently advanced the recommended actions with regard to the Declaration, they recommitted themselves to the promotion of healthy lifestyles to combat the epidemic of NCDs.

UN Sec General Lauds CARICOM On Global Issues

Mr. Guterres also described the Community as “pioneers” in elevating awareness on climate change, with the Caribbean Community Climate Change Centre (CCCCC) serving as a symbol of CARICOM governments working together to address the specific vulnerability of Caribbean states. “You have highlighted the need to protect the world’s oceans and the special circumstances of the Small Island Development States,” he said, adding that the ambitious outcomes produced from the UN Oceans Conference on SGD 14 needed concrete follow-up to ensure that all nations work together to meet their obligations.

“A new mission will be deployed

soon to accompany the Haitian Government as it consolidates the progress achieved together during in the past few years...

’’

As CARICOM and United Nations met in New York to discuss how the international body can better support the Caribbean region’s strategic goals, UN Secretary-General, H.E. António Guterres has lauded CARICOM’s leadership on many pressing global issues. Speaking at the opening of the 9th Biennial CARICOM-UN General Meeting on July 20 in New York, the UN SG said: “This year marks the 25th anniversary of the decision by the General Assembly to grant the Caribbean Community observer status. Since then, we have worked productively together and, today, our organisations are both undergoing processes of review and strategic planning to better face the challenges of a changing international reality. We are grateful to have benefited from your leadership on many pressing global issues.” He highlighted CARICOM’s spearheading of the General Assembly’s discussion on non-communicable diseases. “I am aware that, translating this vision into action, the CARICOM Heads of Government during their recent summit in Grenada, adopted a set of recommendations on measures to address the rise of NCDs in the region.” This year marks the 10th Anniversary of the Port-of-Spain Declaration – ‘Uniting to Stop the Epidemic of Chronic NonCommunicable Diseases (NCDs)’. It was a launching pad for NCDs to become a feature on the United Nations (UN) Agenda, and in

The UN Secretary-General said he was hopeful that the meeting’s discussions would identify areas for stronger cooperation towards reaching the Community Strategic Plan’s 2019 goals of improving economic, social, environmental and technological resilience, as well as strengthening governance and coordinating foreign policy among Member States. “As you know, the United Nations is also in a process of wideranging reform encompassing the development system, the peace and security architecture and our internal management. Our main objective is to serve countries better, and to support your efforts to achieve national priorities, including the Sustainable Development Goals. We are also seeking to strengthen the regional policy backbone and our partnerships with regional organizations.” “You will have seen my report on the development system; we will have our retreat on management reform two days from now; and I look forward to continuing our discussions across the full agenda of change,” the UN SG stated. As he lauded the CARICOM-UN cooperation, he expressed gratitude for the Community’s role as “advocates of the UN presence in Haiti.” “A new mission will be deployed soon to accompany the Haitian Government as it consolidates the progress achieved together during in the past few years. We will continue to count on your strong support as we strive to help Haiti to implement the 2030 Agenda for Sustainable Development and address the cholera epidemic,” the UN SG stated. He also commended the sterling contributions of Caribbean nationals whom he said featured prominently among his senior advisers and the UN leadership including, Guyana’s Ms Catherine Pollard, Under-Secretary-General of the General Assembly Affairs and Conference Management; and Trinidad and Tobago’s Ms Sandra Honoré, Special Representative and Head of MINUSTAH. ¤ OECSBusinessFocus Sep / Nov

ENVIRONMENTAL FOCUS

OECS Commission Joins Climate Technology Centre & Network

OECS Commission Joins Climate Technology Centre & Network OECS Member States now have access to a diverse global community of climate technology experts able to provide policy and technical advice on technology solutions, capacity building and implementation in developing countries. The Climate Technology Centre and Network (CTCN) is the operational arm of the United Nations Framework Convention on Climate Change (UNFCCC) Technology Mechanism, hosted by the United Nations Environment Programme (UNEP) and the United Nations Industrial Development Organization (UNIDO). Members of the CTCN form a community of climate technology stakeholders, including academic, finance, non-government, private sector, public sector, and research entities, in addition to over 150 National Designated Entities (CTCN national focal points selected by their countries). The OECS Commission’s May 2017 application for membership to the CTCN was approved on July 11, 2017; and envisages the following benefits: • Technical Assistance – Assisting Member States in benefitting from technical assistance and support on climate technologies as follows: 1. Technical assessments, including technical expertise and recommendations related to specific technology needs, identification of technologies, technology barriers, technology efficiency, as well as piloting and deployment of technologies; 2. Technical support for policy and planning documents, including strategies and policies, roadmaps and action plans, regulations and legal measures; 3. Training; OECSBusinessFocus Sep / Nov

4. Tools and methodologies; and 5. Implementation plans. • Information and Knowledge Exchange – Apart from the benefits of linking into the CTCN’s online knowledge platform, the OECS Commission would also benefit from knowledge of emerging areas of technology and practice that can assist the Commission in fulfilling its mandate to the OECS Member States in securing and maintaining the technical, financial and human resources required to achieve the goals and targets of the St. George’s Declaration of Principles of Environmental Sustainability. • Networking and Collaboration – All six (6) independent OECS Member States are Party to the United Nations Framework Convention on Climate Change (UNFCCC). Therefore, by becoming a member of the CTCN, the Commission is now in a position to contribute to the CTCN’s broad network of stakeholders while simultaneously providing access to the experience and expertise of the OECS Sub-Region. In return, the Commission would benefit from policy and technical expertise that delivers technology solutions, capacity building and implementation advice to developing countries. • Visibility – Broadening the Commission’s reach by engaging in new technology projects and showcasing relevant experience, events, reports and tools. The OECS Commission will explore and assist with the submission of requests by its Member States that are in keeping with its mandate and the CTCN’s focal areas, in order to support their continued efforts in adapting to climate change and building resilience. Visit www.ctc-n.org for more information. ¤ www.oecsbusinessfocus.com

ExxonMobil Finds More Oil Off Guyana ExxonMobil Finds More Oil Off Guyana

Fresh Vitamins

Oil giant ExxonMobil has discovered additional oil in the Payara reservoir offshore Guyana, increasing the total Payara discovery to approximately 500 million oil-equivalent barrels. Payara-1 well was announced as ExxonMobil’s second oil discovery on the Stabroek Block off Guyana in early 2017. In order to test a deeper prospect underlying the Payara oil discovery, the Payara-2 well was started in late June. In a statement on July 25, Exxon said that that positive results from the Payara-2 well increase the estimated gross recoverable resource for the Stabroek Block to between 2.25 billion oilequivalent barrels and 2.75 billion oil-equivalent barrels. The well was drilled by ExxonMobil affiliate Esso Exploration and Production Guyana Limited and encountered 59 feet (18 meters) of high-quality, oil-bearing sandstone in the Payara field. It was drilled to 19,068 feet (5,812 meters) in approximately 7,000 feet (2,135 meters) of water. The well is only 12 miles (20 kilometers) northwest of the recently funded Liza phase 1 project on the Stabroek Block, which is approximately 130 miles offshore Guyana.

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To remind, Exxon and its partner Hess made a final investment decision (FID) to proceed with the first phase of development for the Liza field in mid-June. “Payara-2 confirms the second giant field discovered in Guyana,” said Steve Greenlee, president of ExxonMobil Exploration Company. “Payara, Liza and the adjacent satellite discoveries at Snoek and Liza Deep will provide the foundation for world class oil developments and deliver substantial benefits to Guyana. We are committed to continue to evaluate the full potential of the Stabroek Block.” The Stabroek Block is 6.6 million acres (26,800 square kilometers). Esso Exploration and Production Guyana Limited is operator and holds 45 percent interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30 percent interest and CNOOC Nexen Petroleum Guyana Limited holds the remaining 25 percent interest. ¤ Source: www.offshoreenergytoday.com

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ENVIRONMENTAL FOCUS

ECLAC, Caribbean Envoys Discuss Priorities For 2030 Agenda

Guyana’s Permanent Representative to the UN, Ambassador Michael Ten-Pow (left), ECLAC’s Alicia Bárcena and another official during the meeting

ECLAC, Caribbean envoys discuss priorities for 2030 Agenda The Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Alicia Bárcena, met recently in New York with representatives of the countries of the Caribbean Community (CARICOM) to evaluate the subregion’s priorities and specific needs regarding implementation of the 2030 Agenda for Sustainable Development and its 17 Sustainable Development Goals (SDGs). Bárcena began by congratulating Belize for being the first country in the Caribbean to present its Voluntary National Review (VNR) to the High-Level Political Forum on Sustainable Development (HLPF), which held its annual session this year on July 10-19 at the UN headquarters in New York. The Bahamas and Jamaica, meanwhile, will report on their progress in 2018. “Peer review and exchange is fundamental for strengthening implementation of the 2030 Agenda. This process is oriented toward establishing a common vision with all stakeholders, staying the course and being accountable, not only to the regional and global communities, but especially to national ones,” Bárcena stated, highlighting the role played in this sense by the regional mechanism created for follow-up and monitoring of the Agenda: the Forum of the Countries of Latin America and the Caribbean on Sustainable Development. ECLAC’s Executive Secretary said that the presentation of more reports by Caribbean countries “would be a strong sign of the subregion’s commitment to implementation of the SDGs,” a task that requires a coherent and resilient institutional architecture for integrated and cross-sector planning and decision-making, she indicated. “ECLAC, which has a Subregional Headquarters in Port of Spain (Trinidad and Tobago), is ready to support Caribbean countries, both individually and collectively, on all the aspects related to achieving the SDGs, from measurement and the analysis of means of implementation to the reporting of outcomes,” Bárcena said. OECSBusinessFocus Sep / Nov

At this time, the Commission is working on a project that, in its initial stage, involves six countries of the subregion and seeks to strengthen both the national architecture for inter-institutional follow-up to the Agenda as well as national statistics systems for the effective implementation of the SDGs. In addition, in October of this year, ECLAC will present a full overview of challenges in the Caribbean during the next European Union (EU)-Community of Latin American and Caribbean States (CELAC) Summit, which will take place in El Salvador, which holds the bloc’s Presidency Pro Tempore. Furthermore, Bárcena explained, ECLAC’s thirty-seventh session (which is the regional body’s most important biannual gathering) is scheduled to take place in 2018 in Cuba, which will hold the Presidency of the Commission for two years. The Ambassadors present at the meeting in New York underscored the role that ECLAC plays in terms of coordination in Latin America and the Caribbean, and praised the fact that the Commission addresses the Caribbean as a subregion, which allows for focusing responses on its specific needs, bringing together the goals of the 2030 Agenda and those of the Small Island Developing States Accelerated Modalities of Action (SAMOA Pathway). Among the specific challenges seen in the Caribbean, high levels of debt and vulnerability to climate change were mentioned in particular. Bárcena described the scope of a debt-relief proposal for English-speaking Caribbean countries, via the creation of a prevention fund for mitigating the impact of climate change on their economies, which the institution formulated two years ago. The Caribbean continues to face high debt, moderate growth, reduced global demand for its exports and limited possibilities for accessing external financing, since countries have been classified as middle income. The public debt stands at 70.7% of GDP on average, despite considerable fiscal adjustment efforts, the senior representative stated. ¤ www.oecsbusinessfocus.com

IMF says Global Recovery On Firmer Footing

IMF says global recovery on firmer footing The global economic recovery is on firmer footing as improving growth in China, Europe and Japan offset downward revisions for the United States and Britain, the International Monetary Fund announced recently.

UPWARD REVISIONS But those downward revisions were offset by the improving outlook in key economies, including the Euro area where growth prospects have improved in France, Germany, Italy, and Spain.

However, wage growth remains sluggish, which risks increasing tensions that have pushed some countries toward more antiglobal policies, while efforts to erode financial regulations put in place since the 2008 crisis could erode stability, the IMF warned.

The Euro area now is projected to see economic growth of 1.9 per cent this year and 1.7 per cent in 2018.

“The recovery in global growth that we projected in April is on a firmer footing; there is now no question mark over the world economy’s gain in momentum,“ IMF Chief Economist Maurice Obstfeld said. Presenting the latest update of the World Economic Outlook (WEO), he said “recent data point to the broadest synchronised upswing the world economy has experienced in the last decade”. The fund still expects the global economy will grow by 3.5 per cent in 2017 and 3.6 per cent in 2018, the same as in the April WEO. However, the unchanged forecast masks some significant revisions, including in the United States, where the IMF downgraded its growth estimate in July after judging that spending plans promised by President Donald Trump that had been expected to provide a boost to the economy were stuck in limbo. The US estimate was cut to 2.1 per cent for this year and next, down 0.2 points and 0.4 points, respectively, from the more optimistic forecast in the last report. The outlook for the British economy also was revised down by 0.3 points to 1.7 per cent this year on weaker-than-expected activity in the first quarter, while the impact of Brexit “remains unclear”.

Japan also is seeing improved growth prospects, with an expansion of 1.3 per cent this year expected, although that is seen slowing sharply to 0.6 percent in 2018. Meanwhile, China continues to be a major engine of global growth, expanding by 6.7 per cent this year and 6.4 per cent next, driven by economic policies in Beijing. The forecast for 2017 was revised up by 0.1 percentage point, “reflecting the stronger than expected outturn in the first quarter”, which the IMF said was underpinned by Beijing’s “supply-side reforms”. The 0.2-point upward revision for 2018, however, was the result of the expected delay in the “needed fiscal adjustment” which could cause risks down the road. “China’s higher growth is coming at the cost of continuing rapid credit expansion and the resulting financial stability risks,“ Obstfeld warned in his prepared statement. KEY TO PROSPERITY But within the mostly upbeat forecasts, the IMF once again sounded the warning on the growing anti-global sentiment, which could leave all economies worse off. That has been fuelled in part by the fact the benefits of increased growth have not been broadly shared. ¤ OECSBusinessFocus Sep / Nov

Barbados’ Cockspur Rum Brand Acquired by New Group

ECONOMY & TRADE

Barbados’ Cockspur Rum Brand Acquired by New Group

“Highly motivated individuals will be recruited to work with a network of distributors globally to aggressively market the brand...’’ GEL Supermarkets (St Lucia) Limited, a wholly-owned subsidiary of Goddard Enterprises Limited (GEL), has concluded an agreement to sell its majority interest in International Brand Developers N.V., owners of Barbados’ world famous Cockspur Rum brand. GEL has had a long association with the Cockspur Rum brand, dating back to the early 1980s. The launch and annual hosting of the Cockspur Gold Cup and its annual sponsorship and promotion of this premium Horse Race in Barbados for 15 consecutive years positioned the Cockspur Rum brand to world recognition and a position of market leader. Following this success, the Cockspur brand had been met with aggressive campaigns from other brands and changing market forces, and so, options were explored to grow the brand. GEL then investigated various options for the future of the brand as it determined that the spirits industry no longer fitted in with its business strategy. A global search ensued but an eventual offer came from an internationally experienced company in Barbados – Woodland Radicle Limited and its affiliated companies (the “WR Group”) – with a global reputation in brand creation, brand building and activation of beverage brands. The WR Group sees great potential for the Cockspur Rum brand.

The WR Group management team is comprised of Damian McKinney, Steve Wilson and Allan Reinecker supported by local investors. Damian McKinney, who is based in Barbados, was until recently the creator and owner of McKinney Rogers Consulting – a global business execution agency specialising in bringing businesses and brands back to greatness with a very impressive list of global clients and brands. Steve Wilson is a veteran in the creation of global spirits. He was involved with many well-known brands including Bailey’s Irish Cream, Malibu, Ciroc Vodka and Smirnoff Ice. Allan Reinecker is an expert in global finance and business development having concluded many beverage deals globally. In terms of changes as a result of the sale, the headquarters for Cockspur Rum will be at the WR Group’s corporate base in Woodland, St George. Highly motivated individuals will be recruited to work with a network of distributors globally to aggressively market the brand, while local distribution for the brand will remain with Hanschell Inniss Limited, a subsidiary of GEL. The brand will continue to be produced in Barbados. Courtesy: Nation News

Damien McKinney is a member of the WR Group Management Team.

OECSBusinessFocus Sep / Nov

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Dominica And ECCAA Explore Plans For International Airport Dominica and ECCAA Explore Plans for International Airport “Very soon the government shall invite a wide cross section of the population to provide an update. For the project to be successful we will need the fullest cooperation of all,” Prime Minister Roosevelt Skerrit is quoted as saying in the statement. During his recent budget presentation, Skerrit told legislators that his administration had advanced plans for the development of the international airport and established an Airport Development Fund as of May 2017.

Melville Hall Airport

The Director General of the Eastern Caribbean Civil Aviation Authority (ECCAA), Donald McPhail, has held talks with the Dominica government on the development plans for an international airport on the island. A brief government statement noted that the meeting took place on the fringes of the parliamentary debate on the 2017/2018 national budget now underway here. It said that the talks were also attended by President Charles Savarin.

He said the fund “has been capitalised with US$10 million from the Citizenship by Investment Programme (CIP),” which allows investors to make financial contributions to the socio-economic development of the island in return for citizenship. “Government has taken the decision that an amount of five million US dollars will be paid into that fund on a monthly basis,” Skerrit added. Earlier this year, Skerrit said that a US-based firm that conducted studies for the construction of the international airport would present its findings to Cabinet. Skerrit first announced plans were afoot to construct an international airport in May 2014. Since then, government has had discussions with a Chinese team for the construction of the international airport at Crompton Point, north-east of Dominica.

Grenada Steel Works Ltd.

OECSBusinessFocus Sep / Nov

ECONOMY & TRADE

ANSA McAL Group Acquires Berger Paints Caribbean ANSA McAL Group Acquires Berger Paints Caribbean

and market capitalisation of $20,903,848.20 as at the close of yesterday’s trading. The acquisition of Berger’s Caribbean business is the third by ANSA McAL in less than a year, as it follows two acquisitions last year. ANSA McAL acquired Indian River Beverage Corporation, a Florida-based brewery in July 2016 and EASI Industrial Supplies Ltd, a caustic soda supplier, in August. Those acquisitions were made for a total investment of $240 million, according to the conglomerate’s 2016 annual report. Of the 2016 transactions, the annual report states: “Both acquisitions are in businesses in which we already have significant investments and synergies and both are a potential future source of US dollar income.” Speaking about the pending transaction, Group Chairman and CEO of the ANSA McAL Group of Companies, Norman Sabga noted that the acquisition of LBOH will further enhance the Group’s position in the Caribbean architectural coatings market. “Berger is best known for its well-positioned paint brands throughout the region. The architectural coatings industry has enjoyed a period of healthy innovation over the last decade. Norman Sabga, Group Chairman and CEO of the ANSA McAL Group of Companies

Through this acquisition, we hope to address an expanded customer base with a broader suite of product offerings and superior levels of customer service and support,” Sabga said. ANSA McAL Group is a diversified conglomerate across eight industrial sectors and operating in over eight territories. ANSA McAL is publicly listed on the Trinidad and Tobago Stock Exchange with market capitalisation of US$1.7 billion. Through its ANSA Coatings Limited subsidiary, it has produced and marketed paints, coatings and materials trusted by customers for over 55 years. ¤

The ANSA McAL Group announced recently that its wholly-owned subsidiary ANSA Coatings International has signed a definitive agreement to acquire the Caribbean business of Berger, the paint manufacturer. A statement from the local conglomerate said the agreement is to acquire Lewis Berger (Overseas Holdings) Limited (LBOH) from Berger International Private Limited (BIPL), in an all-cash transaction, for an undisclosed sum, subject to customary closing conditions, including regulatory approvals. The transaction is expected to close in the third quarter of calendar year 2017. LBOH is a privately held UK company with equity-ownership stakes of 100 per cent, 70 per cent and 51 per cent in Berger Paints Barbados Limited, Berger Paints Trinidad Limited and Berger Paints Jamaica Limited respectively. The combined Berger Caribbean business has estimated net sales of US$35 million. Berger Paints Trinidad Ltd is a public company listed on the T&T Stock Exchange with issued share capital of 5,161,444 shares OECSBusinessFocus Sep / Nov

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IDB Launches ‘Orange Economy’ on Caribbean

CARIFORUM Firms Supported In Leveraging EPA

Supporting CARIFORUM firms to leverage the CARIFORUM-EU Economic Partnership Agreement (EPA) is at the forefront of the Caribbean Export Development Agency’s work programme as it implements the 11th EDF Regional Private Sector Development Programme (RPSDP) funded by the European Union. Over 70 business and Business Support Organisations participated in the specially held workshop at the Trinidad and Tobago Manufacturers’ Association’s (TTMA) Trade and Investment Convention (TIC) on Friday 7 July and a further 90 persons were able to participate via the live streaming. Cohosts for the workshop, the European Union (EU) delegation, expressed their commitment to supporting the region’s private sector.

Highlighting the contributions of creative talent to social and economic progress, the Inter-American Development Bank (IDB) has launched the e-book, Orange Economy: Innovations You May Not Know Were From Latin America and the Caribbean. The IDB said it uses the term “Orange Economy” to describe the cultural and creative industries, which include activities such as architecture, audiovisual arts, digital services, fashion, graphic and industrial design, handcrafts, music and software. In 2015 the IDB said the ‘Orange Economy’ generated more than US$124 billion in revenue and provided jobs to more than 1.9 million people in the region. The e-book showcases 50 outstanding initiatives in the cultural and creative industries from 12 countries in Latin America and the Caribbean. “The case studies underscore how creativity works as an engine for innovation and a tool to help countries diversify their output and engage in the knowledge-based economy,” the IDB said. “Among the selected start-ups, we highlighted those that succeeded in bridging the analog and the digital realms, a key convergence for reinventing the entrepreneurship ecosystem and our cities, drawing from what communities need, their surrounding environment and leveraging our cultural heritage,” said IDB lead specialist Alejandra Luzardo, one of the authors. The e-book includes examples exhibited in different editions of “Demand Solutions: Ideas for Improving Lives,” the IDB’s flagship initiative on creativity, innovation and entrepreneurship. Besides Luzardo, the other co-authors of the e-book are the international consultants Dyanis de Jesús and Michelle Pérez Kenderish. ¤

“One of the EPA’s main objectives is to promote economic growth of the region and to gradually integrate the Caribbean states into the world economy. It aims to increase chances for the Caribbean businesses to participate in global value chains and supports the conditions for increasing investment and private sector initiatives, enhancing supply capacity and competitiveness in the CARIFORUM states,” said Ambassador Biesebroek of the EU delegation in Trinidad and Tobago in his remarks at the opening of the workshop. The EPA was signed in 2008, and the opportunity for CARIFORUM firms to grow their businesses through exporting is apparent. “Caribbean Export has focused its attention on providing export development services (such as training, grant financing, trade and business intelligence) to SMEs and business support organisations in order to build their capacity and enhance their trade competitiveness globally,” said Robertha Reid, senior advisor at Caribbean Export. One of the presenters, Dr Noel Watson, is currently working with the agency to break down the EPA so that private sector can be more aware of the market opportunities available to them. Also sharing at the workshop was Adam Wisniewski from the EU delegation’s office based in Barbados who expounded on the core elements of the EPA. The agency, the EU delegation and the CARIFORUM Directorate supported eight Business Support Organisations from across the region to exhibit at TIC to showcase the products of their respective members and countries in an effort to gain interest and increase regional trade. Events of the similar nature, bringing the Caribbean private sector together and explaining practical aspects of the EPA are to be organized regularly throughout the region. Trinidad and Tobago minister of trade and industry, Senator Paula Gopee-Scoon, made a plea for “a more aggressive approach” to be taken by the private sector as it relates to exporting products and services. With regional and international buyers attending TIC, there was a real opportunity to increase the market penetration of Caribbean products into export markets including Europe using the EPA. ¤ Source: Caribbean News Now OECSBusinessFocus Sep / Nov

OECS MEMBER STATES BUSINESS FOCUS

Antigua-Barbuda & St Kitts-Nevis Join OAS Business Development Initiative

The governments of Antigua and Barbuda and St Kitts and Nevis on Friday signed a memorandum of understanding with the Organization of Americans States (OAS) for the implementation of a project for the development of the Small Business Development Centre (SBDC) model in their countries. The program focuses on the transfer of the successful US Small Business Development Centre model, which provides a vast array of technical assistance to small businesses and aspiring entrepreneurs. This targeted assistance seeks to address some of the systemic issues plaguing small and medium enterprises (SMEs) in the Caribbean region such as access to finance, development of a strong legislative/policy framework and effectively linking SMEs to international markets. At the signing ceremony, OAS executive secretary for integral development, Kim Osborne, highlighted the value of the program and affirmed that “public policies to assist SMEs must go hand in hand with the planning and execution of programs that improve their productivity, innovation and participation in both the domestic and international markets.” The minister of trade, commerce and industry, sports, culture and national festivals of Antigua and Barbuda, Chet Greene, expressed the commitment of his country to the implementation of the initiative and the relevance of partnership for economic growth. “We are glad to be part of this program, and we offer our full commitment and our readiness to be a responsible partner in growing and strengthening our SMEs, and we look forward to the coming weeks, months, years, and to the evaluation that will follow,” Greene said. OECSBusinessFocus Sep / Nov

For his part, the minister of international trade, industry, commerce and consumer affairs of St Kitts and Nevis, Lindsey Grant, highlighted the impact that SMEs have for economic development. “The signing of this memorandum of understanding today is not simply a signature, or ticking a box to show completion of a task; but rather it is the first step in the serious business of not only improving the economies of our countries, but also engaging in the most satisfying activity of enhancing the lives of all the people whom we serve,” he affirmed. The minister of state for Grand Bahama, James Kwasi Malik Thompson, recalled that his country had previously joined the initiative during the meeting of ministers of education in The Bahamas. He further commented the need to support SMEs in the framework of competitiveness and innovation. “In order to accelerate the country’s economic growth,” Thompson said, “steps need to be taken to further develop our environment, which focuses on competitiveness, ease of doing business and microeconomic stability.” In its second phase, the SBDC program seeks to expand the model adaptation to new beneficiary countries within the Caribbean region The SBDC model leverages the technical, human and financial resources of the public and private sectors and academia to develop an “ecosystem” of sorts to nurture the growth of small business enterprises. The tripartite partnership guarantees the sustainability of the program and eliminates inefficiencies and duplication of efforts among agencies. ¤ Source: Caribbean News Now www.oecsbusinessfocus.com

FITINN Investment Conference 2017 To Take Place in A&B

FITINN Investment Conference 2017 to take place in A&B

FITINN Investment Conference

The Countdown is on for the Inaugural OECS FITINN Investment Conference, which will take place on October 5, 2017 at the Hibiscus Conference Room, Jolly Beach Resort and Spa in Antigua & Barbuda. The 2017 Theme “Creating an Innovative Finance and Investment Culture” embodies the essence of FITINN’S objective and focus for this upcoming Conference. It will bring together Speakers whose knowledge, expertise and extensive experience, will provide guidance and know how to participants, to enable them to confidently engage in investment activities as well as to promote the formation of an investment club. The intent is also to enhance Investor confidence and trust in the investment process and to educate our constituents to different types of investments for individuals and at various levels of the business life-cycle. The conference will be an all day powerful, interactive and opportunity event that will seek to create a n mindset regarding investing and partnering. It will take the format of a series of presentations and panel discussion. The event will culminate with an opportunity for attendees to participate in developing an Investment Club. A Networking Cocktail will follow this. Presentations will be facilitated by KPMG Barbados, our GOLD Partners, The BVI Investment Club, Eastern Caribbean Central Bank, Financial Services Regulatory Commission Antigua, the Government of Antigua & Barbuda, among others. FITINN – (Finance Investment Trade and Innovation) is a registered organization in the State of Antigua & Barbuda whose objective is to create an enabling environment that promotes Finance, Investment, Trade and Innovation through knowledge sharing and networking. FITINN is breaking new ground with its upcoming 2017 Investment Conference. ¤

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The Private Dining Room is the perfect meeting room for small meetings; press conferences just to name a few, with a capacity of a maximum of 50 persons theatre style. This 1089 square foot meeting room is located next to our signature restaurant, The Verandah which offers a breath taking view of the Caribbean Sea, the city of Basseterre and neighbouring island of Nevis.

OECSBusinessFocus Sep / Nov

BUSINESS FOCUS YOUTH IN FOCUS

SPISE: Science and Engineering Program Reaches Milestone

SPISE: Science and Engineering Program Reaches Milestone This year has marked the highest number of students to take part Furthermore, students will also have a unique mentorship to in the Student Program for Innovation in Science and Engineering prepare applications to Ivy League U.S. universities, internships (SPISE), the residential summer program which recorded its 100th and build financial aid strategy. scholar in its 5th year of existence. The Eastern Caribbean Central bank sponsored two scholars The Caribbean Science Foundation (CSF) announced the selection for SPISE 2017: Jason Phillip a national from Grenada and Rol-J of the 100th student for participation in the prestigious Program. William who was born in St. Kitts and Nevis. The OECS institution SPISE fosters outstanding Caribbean students aged from 16 to 18 donated US$ 6.000 to each of them to allow their enrollment into years, passionately interested in science to expand their learning the programme. by joining a 4-week intensive summer program, which started with 10 students in 2012. Five years later, the programme has This year, fifty-eight students applied to the program and twentyrecorded a total of 109 participants. five received scholarships. Among them are Jason Phillip and Rol-J William, nationals from Grenada and St. Kitts and Nevis. Dinah Sah, Director of SPISE, confirms the student milestone attests to a rising interest of the young Caribbean nationals “I am only the third person from St. Kitts and Nevis to be accepted interested in a career in the Sciences. to SPISE. I am very excited to have that opportunity because this is a prestigious program recognized in the Caribbean and “Admitting our 100th student represents a significant milestone worldwide. It is also closely linked to a similar program at the MIT for SPISE and the Caribbean Science Foundation towards grooming Massachusetts Institute of Technology and affiliated with U.W.I. the next generation of Caribbean science and engineering leaders. to which I look forward to applying. I believe it will add value to my record and will certainly give me an advantage in terms “We take great pride in the accomplishment, as there have been of ease of admission” said Rol-J, who intends to start a Science many challenges that we have had to overcome to launch and club at his college to encourage more students to apply to SPISE. sustain SPISE over the past years. We are extremely grateful to After university, he aspires to start his career in biochemistry and our sponsors and supporters without whom this would not have molecular biology. been possible,” said Dr. Sah. The participation of both students has been made possible thanks Since the 15th July, twenty-four students from thirteen countries to Eastern Caribbean Central Bank funding. The cost per student is of the Caribbean have enrolled to take part in the annual US$ 6.000. Overall, eighty-five students have had the opportunity residential program held on the University of the West Indies to take part in SPISE from 2012 to 2016 since the program was (UWI), Cave Hill Campus, Barbados. implemented. Students will benefit from full immersion in university-level courses in various disciplines such as calculus, physics, biochemistry but also renewable energy, computer programming and Mandarin. OECSBusinessFocus Sep / Nov

In recognition of the increasing importance of science based careers, The Caribbean Science Foundation would like to encourage more applicants for future Program intakes.¤ www.oecsbusinessfocus.com

Youth Leader To Rep Saint Lucia At One Young World Summit

The Summit will bring together 1,300 delegates from 196 countries and aims not only to inspire delegates but also to provide clear, expert guidance on a range of topics in order to enable tangible outcomes. Nyus Alfred is the Co-Founder and Director of the Sports Media Organisation ‘Sporte Avis’, that aims to provide exposure and opportunities for talented youth in sports. Sporte Avis received the award for Outstanding Youth in Media in 2015 and 2016. Alfred is also a former Caricom Student Ambassador, and former Public Relations Officer of the Choiseul Youth and Sports Council. He is a contributor to the OECS Youth Empowered Society, and has represented Saint Lucia and OECS youth at several regional and international workshops and conferences. His experience goes beyond these activities, as he also served as a program host on both television and radio. He was recognised for his efforts earlier this year when he was named as a Highly Recommended Runner Up for the Queens Young Leaders Program. Alfred is also a two-time nominee for the National Youth of the Year Award. ¤ Source: St. Lucia News Online

It was announced in July that Choiseul youth leader, Nyus Alfred, has been selected as a delegate for the One Young World Summit, and will represent Saint Lucia in Bogotá, Colombia from October 4th to 7th 2017. Alfred is currently 1st Vice President of the Saint Lucia National Youth Council and has been actively involved in youth development over the past several years. Speaking on his selection, the Choiseul Secondary School alumnus said he was honoured to represent St. Lucia at the youth summit.

RSI Architectural Design & Photography

‘’I am thrilled to have been selected to represent my country at this prestigious summit. I look forward to the experience, and pledge to represent the youth of Saint Lucia to the best of my ability,’’ said Alfred. The over-arching theme of One Young World 2017 Bogotá is reconciliation and the role young people can play in propagating peace. This is marked by a dedicated Peace Day on the final day of the Summit. Other key themes include education, environment and sustainable development, leadership and government, poverty alleviation, peace and security. During the Summit, delegates will hear and be heard by a wide range of high profile Counselors each of whom are experts in their fields. Previous Counselors have included Archbishop Emeritus Desmond Tutu, Bob Geldof, Kofi Annan, Sir Richard Branson, Mary Robinson, Professor Muhammad Yunus, Justin Trudeau, Emma Watson, Cher, Jamie Oliver, Jack Dorsey and Arianna Huffington. OECSBusinessFocus Sep / Nov

BUSINESS FOCUS IN THE KNOW

ECCO Wins Historic Copyright Case in Saint Lucia

ECCO Wins Historic Copyright Case in Saint Lucia The Easter Caribbean Collective Organisation for Music Rights (ECCO) Inc. emerged victorious in its case against a cinema company, Mega Plex Entertainment Corporation, which played films and simultaneously publicly performed musical works from the sound tracks in the films at its cinemas in St. Lucia. ECCO argued that the cinema company was obliged by law to seek and receive its licence and authority for the public performance of music of any sort within the repertoire it represented in Saint Lucia and the rest of the OECS. The failure of Mega Plex Entertainment Corporation to receive a licence from ECCO for the public performance of music synchronised with the films that were shown in its cinemas infringed ECCO’s right of public performance in these pieces of music, whether or not the authors of the music were members of ECCO. ECCO based its claim for the right to sue for infringement of foreign authors’ works on the reciprocal and/or unilateral representation contracts which it has with foreign societies. Within the terms of the non-exclusive licences or assignments which ECCO has with the foreign societies it is explicitly agreed that ECCO could, at its own discretion and peril, take action in court for the infringement of any work within the repertoire of these foreign societies that occurred within its territory of operation – the OECS. The defendant company put forward a number of defences. The defendant claimed that it had obtained the necessary authorisation of the film distributor to screen the films and since the music was on the same medium as the pictures no further

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licence was needed from a third party for the music performed while films were being shown. They also put forward an argument that since ECCO was not the owner or the exclusive licensee for the right of public performance in the foreign works associated with the film ECCO had no locus standi and as such the case should be dismissed. The judge disagreed with the defendant company on every point and rendered judgement in ECCO’s favour. The judgement has made it clear that any music which accompanies a film or other audio-visual production is a separate property which remains the property of the copyright owner and cannot be licensed by anyone except those whom he had so authorised. Therefore, the licence of the film distributor does not, and cannot, include a licence to publicly perform the music in the cinema and ECCO’s licence ought to have been sought and relevant royalties paid to ECCO. Secondly it reaffirms ECCO’s claim to be the only body in the OECS clothed with the authority, by virtue of its agreements with foreign societies, to issue licences for any copyright protected music from anywhere in the world that is performed or communicated to the public in any manner or form. The case was originally filed in 2010 and came to trial in February of 2017. Mr. Thaddeus Antoine appeared for ECCO while Mr Gregory Delzin SC and Ms Cleopatra McDonald appeared for the defendants. Justice Godfrey Smith presided. The judgement was given on 25th July 2017. Damages and costs are to be determined at a later date. ¤

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New UWI Principal Officially Inducted for St. Augustine, Trinidad Campus He said The UWI had embarked on its five-year strategic plan, a critical mission that will pilot its transformation to an institution that will lead Caribbean societies to near utopian scenario.

New UWI Principal Officially Inducted for Copeland St. Augustine, Campus said, “AtTrinidad the St Augustine Campus, we have identified

two major initiatives for immediate implementation. The first seeks to reform our core education processes to become much more efficient and relevant but increase access to a wider range of individuals and significantly, the underserved. The target is a holistically trained graduate who will be a model citizen of near utopia.”

Photo: UWI Chancellor, Sir George Alleyne (left), presents Professor Brian Copeland after he was officially inducted as the ninth Principal of the UWI St Augustine Campus. Professor Brian Copeland was officially inducted as the ninth Principal of The University of the West Indies (UWI), St Augustine Campus in Trinidad on Saturday 15 July 2017. The ceremony was held at the Daaga Auditorium, St Augustine and was followed by a reception. In his inaugural address, Copeland said he was hopeful that the Trinidad & Tobago Government would give some consideration to the Steel Pan industry as an opportunity for economic diversification.

The second initiative, called “innovation imperative” will see the creation of an innovation eco-system. He advised that this strategic activity was of the highest priority. Copeland was named Pro-Vice Chancellor and Principal designate on April 29, last year. He assumed office on July 1, 2016 and will serve for a five-year term. In his tribute, President of the University of Trinidad & Tobago, Professor Dyer Narinesingh said Copeland was a respected colleague who worked tirelessly for the holistic advancement of the country and the region. “This is evidenced by his pioneering and innovative work on the steelpan, but more so, in his distinguished teaching and administrative career, nurturing minds and changing lives through the medium of education.”¤

UG School of Medicine Regains Accreditation UG School of Medicine Regains Accreditation

The University of Guyana School of Medicine (UGSM) has regained accreditation from the Caribbean Authority for Education in Medicine and other Health Professions (CAAM-HP) for the period 2017-2021 with a few conditions. According to a release, which did not say what the conditions are, it noted that the decision was made at the July 2017 meeting of CAAM-HP. The school first gained accreditation in 2008 and functioned as a professionally-accredited institution up to 2015. The re-accreditation of the School of Medicine, located in the Faculty of Health Sciences, Turkeyen Campus, follows a site visit to UG in November of 2016 by a team of evaluators from CAAMHP, to conduct a comprehensive re-evaluation of the teaching/ learning facilities available at the school and meet with the various administrative sections of the university and medical students.

The team comprised Team Chair, Professor Christopher Stephens, Emeritus Professor of Medical Education, Faculty of Medicine, University of Southampton, UK; Team Secretary, Professor Jonas Innies Addae, former Head of Pre-Clinical Sciences Department and former Deputy Dean, Faculty of Medical Sciences, The University of the West Indies, St Augustine Campus, Trinidad and Tobago; Professor Trevor McCartney, Professor of Surgery and Deputy Dean, Faculty of Medical Sciences, The University of the West Indies, Mona Campus, Jamaica; and former Medical Chief of Staff, University Hospital of the West Indies, Jamaica. The team was accompanied by Lorna Parkins, Executive Director of CAAMHP and Professor Emerita Marlene Hamilton, Chair of the CAAMHP Council. In commenting on this long-awaited announcement, ViceChancellor, Professor Ivelaw Lloyd Griffith congratulated the faculty, students and staff of the School of Medicine. “This investment of time and resources by the University in the reaccreditation of the School of Medicine is a tribute to the entire University and it strengthens our brand overall, as we pursue Project Renaissance,” he said. “However, substantial amounts of time and money will be required to complete the needed enhancements of one of our flagship programmes.”¤

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BUSINESS TOURISM FOCUS

Blue Diamond Resorts to Take over Management of Antigua’s Jolly Beach Resort & Spa Blue Diamond Resorts, the Caribbean’s fastest-growing hotel company, is proud to announce that it will be taking over the management and operation of Antigua’s largest all-inclusive resort, the 464-room Jolly Beach Resort & Spa, beginning September 1, 2017. “We look forward to bringing our operations to the beautiful Island of Antigua, and to applying our management experience to this popular resort” said Jordi Pelfort, Managing Director of Blue Diamond Resorts. Known to be one of Antigua’s best all-inclusive resorts for its value, Jolly Beach Resort & Spa is set on powdery Jolly Beach, and is enveloped by 40 acres of lush tropical garden and greenery. The resort offers guests a selection of accommodations in six categories, each featuring a private balcony with stunning views to enjoy the gentle Caribbean Sea breeze. Optional amenities including mini-fridge service, in-room coffee maker, Wi-Fi, and inroom safe are available at an additional charge. For dining, guests can choose between four a la carte restaurants offering delicious dishes from Italian classics and authentic Indian to grilled catchof-the-day options and jerk chicken, or opt for Hemispheres, the resort’s spacious buffet. Every afternoon at Jolly Beach Resort & Spa, guests gather to meet one another in the Courtyard for a unique spread of scones, pastries and a gourmet selection of teas. Those who prefer to stay active on their all-inclusive vacation are sure to enjoy the basketball, tennis and beach volleyball courts, or the Jolly Sports Program for daily tennis and dance lessons. Friendly competition takes place by the water with the Family Beach Olympics and kayak OECSBusinessFocus Sep / Nov

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races, or guests can enjoy quiet time with authentic Antiguan arts & crafts, or a visit to the Palms Wellness Center. For more information on this new resort experience from Blue Diamond Resorts, visit our website www.bluediamondresorts. com. About Blue Diamond Resorts Since inception in 2011, Blue Diamond Resorts has risen to become the Caribbean’s fastest growing resort company of 35 properties exceeding 14,000 rooms in seven countries. Taking an innovative approach to differentiating brands under each market’s demands, Blue Diamond Resorts’ ever-expanding portfolio is more impressive than ever. Award-winning Royalton Luxury Resorts offer signature All-In Luxury® amenities including All-In Connectivity™, modern Sports Event Guarantee™, and in-suite wellness elements such as the exclusive handcrafted DreamBed™. Royalton Luxury Resorts’ adults-only sub-brands include Hideaway at Royalton, an adults-only experience, plus the stylish All Exclusive™ CHIC by Royalton, a social vacation experience. In Jamaica, Grand Lido Negril has been revived to provide those over 21 an upscale and au naturel vacation along an exclusive shore for the ultimate in privacy. Memories Resorts & Spa is an experience for families or adults featuring on-site splash parks, themed characters Toopy & Binoo™, and an innovative teen’s lounge. Starfish Resorts are solely found in Cuba and offer amazing value for customers with convenient locations, comfortable accommodations. In September 2017 Blue Diamond Resorts will manage Jolly Beach Resorts & Spa, Antigua’s largest all-inclusive resort with 454 rooms, on a worldfamous beach that shares its name. www.oecsbusinessfocus.com

Seaborne Airlines Resumes Service To Antigua-Barbuda Seaborne Airlines Resumes Service To Antigua-Barbuda In addition to the Seaborne flights providing convenient connecting opportunities for visitors, Antiguans and Barbudans will also have access to Seaborne’s sizable portfolio of airline partners at San Juan Luis Munoz Marin International Airport. Coupled with connections to other Seaborne flights in the Caribbean, and partner airlines Air Europa, American Airlines, Delta Air Lines, JetBlue Airways, and United Airlines, and Vieques Air Link, passengers will be able to connect to 33 destinations in the Americas and Europe. All flights will be operated by 34-seat Saab 340 aircraft. The Saab 340 features a roomy cabin with overhead bins, snack and beverage service, a restroom, a 50lb baggage allowance per person, and operates with two pilots and a flight attendant.

Seaborne Airlines resumed its non-stop service between the carrier’s hub in San Juan, Puerto Rico, and Antigua and Barbuda on Friday. The service represents the only non-stop connection between Antigua and Barbuda and Puerto Rico. Passengers from over 30 destinations in the Americas and Europe will be able to reach Antigua’s V.C. Bird International Airport with a single stop at San Juan’s Luis Muñoz Marin International Airport through connections with Seaborne Airlines.

The San Juan-Antigua service will operate four times weekly on a year-round basis. As of July 21, Seaborne will operate four nonstop flights per week between San Juan and Antigua and Barbuda. Marketing consultant for the Caribbean region, Charmaine Spencer, said, “This service provides Antiguans and Barbudans with more options and connectivity to San Juan, US Virgin Islands and the mainland USA. The Antigua and Barbuda Tourism Authority and Seaborne Airlines have plans to collaborate on a number of marketing activities for the remainder of 2017.” ¤

Caribbean Agro Industries Ltd.

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TOURISM BUSINESS FOCUS

Tourism “key to fostering trade” New UN-backed report calls for sector to be given greater recognition as a major service export. A United Nations-backed report has stressed the need for greater recognition of tourism as a key service export in order to attract technical assistance to the sector in least developed countries (LDCs), including the Caribbean.

The report says although tourism represents seven per cent of all international trade and 30 per cent of the world’s services trade, it is often difficult to direct trade-related technical assistance towards the sector because tourism and trade tend to fall under different line ministries, the report says. Produced by the World Tourism Organization (UNWTO), the International Trade Centre (ITC) and the Enhanced Integrated Framework (EIF), the report, titled, “Tourism for Sustainable Development in Least Developed Countries”, was launched on the occasion of the Aid for Trade Review held in Geneva. In LDCs, tourism accounts for seven per cent of total exports of goods and services – a figure that stands at 10 per cent for non-oil LDC exporters. The report says that tourism can make a strong contribution to the economies of LDCs, “but successful interventions in tourism require strong collaboration across government agencies as well as across different actors at the regional or local level”. According to the UN, the report also aims to increase the commitment and investment in coordination and raise tourism’s prominence in trade-related technical assistance “as to ensure the sector delivers on its powerful capacity to create jobs and incomes, where they are most needed and for those who are most vulnerable – including youth and women”. The UN said UNWTO, ITC and EIF are working to contribute to this process of increased co-ordination and collaboration by joining forces in the design and implementation of tailored tourism technical assistance and tourism export strategies, and leveraging resources. The report’s launch coincides with the International Year of Sustainable Tourism for Development 2017, the UN said.It said the year aims to support a change in policies, business practices and consumer behaviour towards a more sustainable tourism sector that can contribute to Sustainable Development Goals.

Antigua-Barbuda Stakeholders Impressed By Tourism Marketing Strategy The marketing strategies for Antigua and Barbuda’s main source markets in the USA, UK and Europe, Caribbean and Canada, were scrutinised by local stakeholders at a public/private sector market consultation hosted by Antigua and Barbuda’s ministry of tourism and the Antigua and Barbuda Tourism Authority (ABTA) in July. Senior tourism officials and marketing directors presented updated action plans and exchanged information with members of the Antigua Hotels and Tourist Association. The meeting was held at the Antigua and Barbuda Hospitality Training Institute and was co-chaired by tourism consultants, Ricky Skerritt and Shirlene Nibbs. Antigua and Barbuda Minister of Tourism, Asot Michael, said this meeting was a continuation of his ministry’s efforts to achieve effectiveness and sustainable growth for tourism in globally competitive markets. The meeting also addressed airlift and related concerns raised by the hotels and tourist association membership as tourism officials continue to monitor tourism arrivals and expenditure and adjust marketing strategies accordingly. The meeting focused on the stay-over projections going into the summer and upcoming 2017/2018 season and expressed optimism in a highly competitive environment. The tourism minister said: “This meeting will strengthen our resolve for achieving ongoing private/public sector partnership. Working with our local and international stakeholders, and taking into consideration their expertise and experience, we have already begun to develop new and creative strategies allowing us to be more competitive and grow visitor arrivals and revenues to the wider destination.” BDO accounting firm senior partner, Cleveland Seaforth, and ABTA chairman, Ricky Skerritt, presented a study which gave stakeholders insight into the options for much needed shortterm growth of funding for destination marketing, focusing on the projected expenditures of the tourism authority and the financing needed to pursue aggressive marketing efforts on a more sustainable basis. With access to funding of marketing activities a main area of concern for stakeholders, the gathering discussed ways of ‘injecting new sources of cash to achieve the desired results’ in order to effectively compete with other major destinations that are well known to be outspending Antigua and Barbuda in destination marketing. ¤ Source: Caribbean News Now

Goal 17 sets, as one of the targets, a “significant increase of exports of developing countries, in particular with a view to doubling the least developed countries’ share of global exports by 2020”, to which tourism as service export can contribute. ¤ OECSBusinessFocus Sep / Nov

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www.oecsbusinessfocus.com

Events

events 2017

FITINN Investment Conference & Exhibition October 5, 2017 - Jolly Beach Resort & Spa - Antigua & Barbuda A Call is going out to Investors, Innovators, Entrepreneurs and Individuals of the Caribbean, to embrace Finance & Investment opportunities at this conference. If you are serious about increasing wealth or need funding to grow your business then you should attend this event. Knowledge will be shared by individuals whose expertise, extensive experience and success in finance and investment; will provide, guidance and know how, to enable attendees to engage in investment activities with confidence. Attendees can also benefit from opportunities to invest in listed businesses and participate in the development of an Investment Club. For further information: http://www.ifitinn.com facebook/ifitinnantigua or call 1 268 - 781-7267 | 720 7267

Caribbean Renewable Energy Forum - CREF 2017 October 18-20, 2017 JW Marriott Marquis Miami, Florida

CREF 2017, the largest annual gathering of the Caribbean energy market, will take place at the JW Marriott Marquis, Miami, from October 18th-20th. 500 attendees from 50 countries attended CREF 2016. Over 20 Caribbean countries were represented either by their government or by their utility, or in many instances, by both. This is an exciting time to be in the market. The Caribbean is transitioning away from a decade-long discussion around how to enable a resilient energy matrix, to one focused squarely on how to procure, finance and build world-class clean energy projects in the Caribbean. An array of projects are coming online as we speak and the pipeline is deep. For further information: www.http://newenergyevents.com/cref/

23rd Annual FCCA Cruise Conference & Trade Show October 23-27, 2017. Merisa, Mexico The FCCA Conference is a four-day event designed to foster a better understanding of the inner workings of the cruise industry and help attendees improve their cruise tourism business. Through a specialized forum that blends meetings and workshops with social functions, attendees have a unique opportunity to develop relationships with, promote products to, and learn from approximately 100 executives from FCCA’s 19 Member Lines who decide where ships call, what is sold and used onboard, and how to invest in destinations and infrastructure. For further information: www.f-cca.com

Caribbean Association of Banks Inc. 44th AGM & Conference November 15-18, 2017 Dominican Republic Being hosted under the theme: ‘Breaking New Ground’

The Caribbean Association of Banks Inc. Annual Conference is the premiere event for networking with financial services professionals from throughout the Caribbean and further afield. A gathering of over 200 top financial professionals discussing a wide range of banking and financial issues facing the region. For more information: www.cabconference.com

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Contact: Contact: MAJOR MOVES Rendra Gopee | Assurance Rendra Gopee | Assurance Mobile: | Email: rendra.gopee@bb.ey.com Mobile: +1 +1 758758 722722 81498149 | Email: rendra.gopee@bb.ey.com

BUSINESS FOCUS

MAJOR MOVES A look at Corporate Transitions

The board of directors of regional air carrier LIAT has confirmed the appointment of Julie ReiferJones as chief executive officer, the airline’s first female CEO. Reifer-Jones is a graduate of The University of the West Indies, a Fellow of the Association of Chartered Certified Accountants (ACCA) and a member of the Institute of Chartered Accountants of Barbados. Prior to joining LIAT as chief financial officer in 2008, Reifer-Jones held several senior finance positions and has more than 25 years of experience in the fields of finance and management. On her appointment, Reifer-Jones stated she is delighted to be taking up this new challenge and is looking forward to delivering an improved level of service from LIAT to the region. In announcing her appointment, chairman of the board of LIAT, Dr Jean Holder, noted, “Mrs ReiferJones has served at LIAT in the number two position for some nine years and in that capacity has acted as CEO for extended periods on several occasions.

Juan Bailey will take on the leadership role for B2B in Saint Lucia. Juan Bailey is a Grenadian national, with over 20 years of professional experience in the Caribbean ICT industry, working in the public sector, private sector, and as an independent

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consultant. The holder of an MBA (Finance) from the University of Leicester and a B.Sc in Electrical & Computer Engineering from the University of the West Indies, he most recently re-joined the Cable & Wireless Family in 2015 under C&W Business, as Regional Sales Director with responsibility for Curacao, Grenada and St. Vincent and the Grenadines. Under the new B2B structure in Saint Lucia, Sales Support under the leadership of Mary Delice will now report to Juan, as will Small and Medium Enterprises (SME), led by Dione Benn.

The Citizenship by Investment Board (“the Board”) is pleased to announce the appointment of Mr. Nestor Alfred to the position of Chief Executive Officer (“CEO”) of the Citizenship by Investment Unit effective today, 8th August, 2017. Mr. Alfred holds a BSc. Management Studies from the University of the West Indies and an MBA from Henley Management College/Brunel University. Prior to his current appointment, his former roles include Executive Director of the Gaming Authority; Financial Management Consultant; Banker in the jurisdictions of Saint Lucia, Barbados and the Cayman Islands; Senior Executive within the East Caribbean Financial Holding Group; Director of Saint Lucia Financial Sector Supervision Unit; Registrar of Insurance and Assistant Comptroller of Inland Revenue Saint Lucia. Regionally, he serves as Commissioner to Caricom Competition Commission. Nestor brings to CIP Saint Lucia, his vast experience as a regulator within the financial services sector and his expertise in the areas of Anti Money Laundering and Combating the Financing of Terrorism (AML/CFT).

Ambassador Javier Paulinich takes office as of 2 Aug 2017 as the new Permanent Secretary of the Latin American and Caribbean Economic System (SELA). SELA is an intergovernmental organisation that brings together 27 countries in the region, for the period 2017-2021. According to a release from SELA, Ambassador Paulinich will take over as the highest-ranking authority of SELA, with the purpose of strengthening the positioning of the body in the region and guiding its work according to the current needs of its Member States. The new permanent secretary was elected at the XII Special Meeting of the Latin American Council of the Latin American and Caribbean Economic System (SELA), held on June 13 in Caracas.

Amory Jervis was appointed Senior Corporate Manager of CIBC FirstCaribbean Barbados Limited, St Lucia on July 3, 2017. Mr. Jervis is Jamaican and has over 23 years banking experience. Prior to joining CIBC FirstCaribbean he held Senior Management and Management positions across Retail and Corporate Banking at four international and local banks. He is passionate about client service and believe in developing people to reach their full potential. Amory holds a Diploma from the Chartered Banker Institute, a Chartered Banker MBA from Bangor University in UK and is a member of the Chartered Institute of Bankers in Scotland. www.oecsbusinessfocus.com

Contact:

MAJOR MOVES Rendra Gopee | Assurance Mobile: +1 758 722 8149 | Email: rendra.gopee@bb.ey.com

Rendra Gopee | Assurance Mobile: +1 758 722 8149 | Email: rendra.gopee@bb.ey.com

Kirk Maraj is the new Branch Manager in Saint Lucia for Guyana and Trinidad Mutual Group of Companies Limited (GTM). The appointment places him among the youngest to hold the top post with the company locally. As Branch Manager for the territory of Saint Lucia, Maraj will have oversight of the entire Saint Lucia operations which include offices in Castries, Vieux Fort and Soufriere. Kirk Maraj graduated Summa Cum Laude from Monroe College with a bachelor’s degree in Business Administration (BBA). He’s also a holder of a Caribbean Certificate of Insurance Practice from the Association of Insurance Institutes of the Caribbean (CCOIP). Other insurance designations include ACS and ALMI from Life Office Management Institute. (LOMA).

In his introductory press conference the New Managing Director underscored his passion for customer service excellence in ensuring world class service for customers from a world class team. He emphasized the need to listen to customers, shareholders and staff and to empower staff in the execution of their duties, always making sure that their welfare is a priority. A graduate of the University of Lincoln (UK) in the discipline of International Business The Board of Directors is pleased to welcome another son of the soil to head the first National Bank Family.

The Trinidad & Tobago Securities and Exchange Commission (TTSEC) has announced the appointment of T&T national Haydn Gittens as its new Chief Executive effective

An avid sports enthusiast and decorated athlete, Maraj has been a national cyclist since 2000 and a member of the Saint Lucia Cycling Association. He also is affiliated with Project Breakaway. August 2, 2017. Gittens brings to the TTSEC three decades of banking experience after working throughout the Caribbean at several banking institutions, including Republic Bank Ltd, RBC Royal Bank Group, RBTT Bank Johnathan Jamaica Ltd and most recently as CEO at Johannes has been Bank of St Lucia Ltd. appointed as the He holds a Master of Business New Managing Administration from the University of Director of 1st Manchester, as well as a Master of Science National Bank St. in Accounting and a Bachelor of Sciences Lucia Limited. (Hons) in Industrial Management, both Johannes from the University of the West Indies St previously held Augustine. senior positions in Within Gittens’ portfolio is the responsibility Banking, Customer for the regulation of the securities industry, Service and Retail Sales throughout the ensuring the stability of the financial region, in particular the OECS, Belize and system and the protection of investors Barbados. His most recent position was and to provide overall management and Regional Sales Director for UNICOMER. administration of the TTSEC’s operations. Mr. Johannes will report to the Board of Directors of the Bank.

Andrew Sabga has been appointed as the new Chief Ex¬ecutive Officer of the ANSA McAL Group of companies. He is also the current Deputy Chairman of the Group. ANSA McAL Group Chairman Norman Sabga announced the appointment of his brother, Andrew, as new Group Chief Executive Officer (CEO) on 10th August 2017 at a meeting with stockbrokers and the media, on the 10th floor of the TATIL building on Maraval Road in Port of Spain, Trinidad. “We did something that is very important this morning. We appointed a new Chief Executive Officer (CEO) for the Group and I’m happy to announce that Andrew Sabga is now the new CEO of the Ansa McAL Group, so there’s new energy, new blood, new ideas, new drive, new determination to even improve upon what we have,” he said. The Ansa McAl Group is one of two Trinidad based conglomerates with a diverse portfolio of investments and operations across the region. Former Trinidad & Tobago Finance Minister Larry Howai assumed responsibility as Sector Head for the Financial Services portfolio of the ANSA McAL Group effective August 1, 2017. Howai was elected to the Board by a unanimous show of hands at the group’s Annual General Meeting in June 2016 at Tatil Building, Port-of-Spain. Howai said it was an honour to serve on a Board as prestigious as ANSA McAL’s and he was impressed by the brand strength. He said that was the factor that influenced his decision to accept the invitation by the Group Chairman and Chief Executive to join the Board. Howai was previously Chief Executive of the First Citizens Bank Group before being appointed as Trinidad & Tobago’s Finance Minister. OECSBusinessFocus Sep / Nov

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BUSINESS FOCUS

ADVERTISER’S INDEX Advertiser’s Index

COMPANY

Page

Advertising & Marketing Services

Antigua & Barbuda International Institute of Technology

Capita Financial

Caribbean Agro Industries Ltd.

103

Caribbean Alliance Insurance

Caribbean Information & Credit Rating Services Limited

Caribbean Strategy

Colonial Trust

Cool Breeze

CXC Caribbean Examinations Council

First Citizens Investment Services

FITINN Investment Conference

Fresh Vitamins

Grenada Steel Works Ltd.

KPMG

Ocean Terrace Inn

Remax South Florida

RSI Architectural Design & Photography

RUBiS

Sagicor

St. Kitts Investment Promotion Agency

Structural Systems Limited

COVERS ECCO

OBC

Global Investments - ECFH

IBC

Colonial Trust

IFC

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