OECS Business Focus 3 by AMS St. Lucia

The quarterly magazine for OECS decision makers

OECS

Issue No. 3

Mar/May 2016

Saint Lucia

Special Feature www.oecsbusinessfocus.com

An official publication of the OECS Commission

One Community Growing Together

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OECSBusinessFocus Mar / May

Opportunities in Emerging Economies! The current winter season has seen a surge in tourism arrivals and a new wave of significant tourism investments across the region giving hope to a revival of economic fortunes. In some islands this has been driven by the success of the CIP which has become the catalyst for new and significant revenue inflows and increased investment. In others this has been due to natural beauty and touristic appeal supported by generous incentives offered by the Governments. The growth of tourism will continue to ensure that this industry remains the single largest economic platform for the region. We must however, take note of the effects of Climate Change as highlighted during the COP 21 Conference and how vulnerable this industry and our region are to natural disasters. The resultant call for a greener Caribbean has also opened the doors for new opportunities in renewable energy to counter the heavy reliance on fossil fuels. Governments and the Private Sector have responded with significant investments being unveiled in the use of solar, wind and geothermal energy. This call for conservation and prudent management of resources is now filtering through to our communities. We also wish to highlight the efforts of the OECS Commission in “Doing Business with Cuba” – a huge market and great opportunity especially for our manufacturers, some of whom have already made inroads with confirmed exports. We urge others to explore this market and its vast potential. In this issue, our Special Feature is on “Saint Lucia” – another of our island gems in the OECS which has been the recipient of several high profile accolades as a world renowned tourist destination. The island offers itself as an attractive investment location with several significant new investments and major infrastructure projects in progress. The recent introduction of a CIP Programme opens the doors to increased economic activity. Across the OECS Member States there are a number of exciting events, happenings and opportunities which we hope will jump start our economies into a new growth trajectory during 2016 and beyond. We trust that you will enjoy the content of Issue 3 of the OECS Business Focus Magazine and we look forward to your comments.

OECS BUSINESSFOCUS 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 Editor: Lokesh Singh lokesh@amsstlucia.com Editorial Management Team: Lokesh Singh | Dr. Didacus Jules | Ramon Peachey Graphic Designer: Cecil Sylvester Advertising Sales: Cennette Flavien - cennette@amsstlucia.com Hudson Myers - hudson@amsstlucia.com Evol De Souza - evol@regionalpub.com Gilda Alexander - gilda@regionalpub.com Ann-Maria Marshall - ann-maria@regionalpub.com Shari Dickenson - shari@regionalpub.com Webmaster: Advertising & Marketing Services Photography: Cover: Cecil Sylvester | Ashley Anzie | OECS | AMS TEPA | Saint Lucia Tourist Board | Invest Saint Lucia SLASPA | CIP Saint Lucia Antigua & Barbuda Tourism Authority Contributors: Lokesh Singh | Dr. Didacus Jules| Dr. Keith Mitchell Dr. Kenny Anthony | Norma Cherry-Fevrier Francis Burnett | Vincent Philbert | Dr. George Alcee Dr. Chris Bart | Samuel Rosenberg | Michelle Stephens Nisha Charles | Invest Saint Lucia | CIP Saint Lucia SLASPA | Alex Holder | Brian Glasgow | Carib Journal Barbados Today | Jamaica Observer | Carib News Desk IPS News Hub | Trinidad & Tobago Guardian 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.

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Issue No. 3

Mar/May 2016

OECS

Lokesh Singh Publisher/Managing Editor On The Cover:

Saint Lucia Saint Lucia ture Special Fea www .oecs

cus.c om ssion busin essfo OECS Commi

publication An official

OECSBusinessFocus Mar / May |

nity One Commu Growing Together

of the

www.oecsbusinessfocus.com

No.3

O E C S

BF Mar 2016

CONTENTS FEATURE

21. Saint Lucia 22. Prime Minister’s Message 24. About Invest Saint Lucia 28. Saint Lucia Tourism Investment Successes 30. Saint Lucia Business Processing Outsourcing Successes 32. Saint Lucia Manufacturing Successes 34. Quotes From Our Investors 36. Saint Lucia The Award Winning Destination 38. New Developments to Add over 700 Rooms on Saint Lucia 40. Saint Lucia Delivers A Perfect Marriage Between the Arts and Entertainment 42. Inviting Global Citizens to Be Saint Lucian 44. Reaching Beyond the Traditional Approaches 45. The Role of the Unit 46. Due Diligence: An Imperative 47. Four Platforms, One Exquisite Programme 48. Frequently Asked Questions 50. The Modernization of the Air and Sea Ports as a Prerequisite for Economic Expansion 54. Greening St. Lucia and the Opportunities for Business 02. Editor’s Focus

14. The OECS / Pharmaceutical Procurement Service (OECS / PPS) Speaks on the Advantages of Pooled Procurement

16. OECS Member States Discuss Setback

Guidelines as They Cruise Towards an Integrated Coastal Zone Management Policy

18. Barbarians at the Gate: The Scary Rise in Shareholder Activism

75. Number Portability Comes to Trinidad & Tobago

76. 60% of World’s Population Lack Internet Connectivity - World Bank

77. FLOW Set To Launch ‘LTE’ In Jamaica 78. New Luxury Suites for Sandals LaSource Grenada

20. Money… Money… Money!

Tourism

Economy & Trade

80. OECS Begins Process for Tourism Institute

54. Eastern Caribbean Central Bank

81. Top 10 Most Powerful Passports in

58. First Citizens Caribbean Market Outlook 2016

Environment

60. TEPA and British Caribbean Chamber

82. Cash for Climate Change Please, Caribbean

Agreement to Take Effect in First Quarter

the Caribbean

Leaders Plead ENVIRONMENT

61. Barbados Leads Trade Mission to CARICOM

83. Jamaica Invests in Renewables

62. Caribbean Economies to Grow

In The Know

63. World Bank Says Rising Migration Flows also

84. Jamaica Swears in A New Prime Minister

by 0.2% - ECLAC

Mean More Remittances

64. Global Unemployment Expected to Reach 199.4 Million in 2016 – ILO Report

65. Caribbean Rates Low in Penetrating European Market Through Trade Accord

84. Belize’s Dean Barrow Now CARICOM President

85. Ambev Wins Takeover Battle for BHL 85. Heineken Extends Offer After 86% Acquired in D&G

04. Messages

66. Kuwait Urges Guyana to Strengthen Economic

OECS Commission

67. Caribbean Economies Urged to Move Away

04. Understanding the Economic Union, One Country at a Time

Money Matters

OECS Member States

68. Averting a Regional Financial Disaster –

88. Anguilla 90. Antigua 92. British Virgin Islands 93. Martinique 94. Dominica 96. Grenada 97. St. Kitts-Nevis 100. Saint Lucia

The Catalyst for Investment & Devleopment

06. Keep Zika Away 07. Rise Sir Vaughan Allen Lewis 08. OECS Commission Leads Private Sector

Initiative to Deepen OECS Cuba Economic Cooperation

12. Focal points propose governance structure for implementing the OECS Agriculture Plan of Action (APOA) and the Food and Nutrition Security Policies and Plans (FNSPs)

and Trade Ties

from High Government Spending

The BAICO Challenge

70. Caricom Prepares Business Plan 71. IDB Disbursed Billions to the Caribbean in 2015 72. CARICOM Tackles Banking Sector Threat 73. Higher Overseas Profits for Massy Group Technology

86. World Bank to Withhold FunDS Pending LGBT Law Review

87. UN launches New Sustainable Development Agenda for Next 15 years

102. Events 103. Major Moves 106. Advertisers Index

74. C&W Business Awarded 2015 Mid-Market Partner of the Year Award by Avaya

OECSBusinessFocus Mar / May

MESSAGES

Understanding the Economic Union, One Country at a Time By: Dr. Didacus Jules, Director General, OECS

n this era of global business, information is no longer just one of the most important elements for good decision making but it has become itself a factor of production. We are thankful to the business sector that the OECS Business Focus is gaining ground and recognition as a must read source of business and economic information on the OECS Economic Union. For businesses to take full advantage of the Economic Union, they must reach beyond the insularity of their own domestic markets and see the exciting possibilities in the wider space. From the first issue we have been showcasing individual member states to put the spotlight on the key opportunities and developments in these specific market spaces. Through our partnership with the OECS Business Council we are hoping that entrepreneurs and business persons will leverage the information provided to reach out to counterparts, establish new partnerships and grow productive business. This issue of the OECS Business Focus highlights developments in Saint Lucia and explores with a depth not done elsewhere to date on the cluster of investment initiatives being undertaken by the Government of Saint Lucia to boost investment and economic growth. In addition to the focus on Saint Lucia, this issue reports on the OECS trade missions to Cuba undertaken to date. We have had long and fruitful relations with Cuba throughout the difficult days of the Embargo and now that Cuba is opening for business, there are special opportunities for Caribbean and OECS countries in particular to pursue. Major investors from all over the world are rushing in, but we do have the opportunity to occupy niche trade and production opportunities and our Competitive Business Unit is ready to work with our manufacturing sector in particular to seize these opportunities. In this issue we continue to highlight the contribution being made by the OECS Commission in working closely with member states on agricultural development and food security and safety; pooled procurement of medicines and medical supplies; climate change and coastal zone management. In succeeding issues, we will be systematically presenting the success stories in other areas. 造

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OECSBusinessFocus Mar / May

THEBUSINESS CATALYSTTECH FOR INVESTMENT & DEVELOPMENT

An Address by Chairman of the OECS Dr. the Rt. Hon. Keith Mitchell

ear citizens of the OECS, With increasing frequency in recent times, we have been faced with threats from infectious diseases originating from outside our region. Ever since the threat of Ebola, the OECS Ministers of Health have met as a council with their advisors and our principal health partners PAHO (the Pan American Health Organization) and CARPHA (the Caribbean Public Health Agency), to plan and protect against that dreaded possibility. All member states, including Martinique, worked together to ensure that we had as effective a blanket of protection as possible, and that in the event that a case was to present itself in any of the OECS chain of islands, we could contain and respond adequately. Today, we are again confronted with a potential threat that we do not intend to take lightly. At a meeting held on 26 January 2016, the OECS Ministers of Health considered the threat to the health and economic wellbeing of our citizens posed by the Zika virus disease in the region of the Americas. As many of you would know, Zika is a viral illness similar in presentation to Dengue Fever and Chikungunya, which OECSBusinessFocus Mar / May |

ELIMINATE BREEDING TODAY KEEP ZIKA AWAY are all transmitted by the Aedes species of mosquito. Zika is a strange disease – whereas 4 out of every 5 cases may not show symptoms, there have been cases of children born with abnormally small heads and small brains, as well as symptoms such as muscle weakness and paralysis emerging during the Zika outbreak in countries such as Brazil, leading to concerns regarding a possible association among these conditions. Globalization of today’s world means that everyone is closely connected and in the OECS, the freedom of movement of people makes it easier for our citizens to move around freely. This is why the World Health Organization has declared the Zika outbreak to be “a public health emergency of international concern.” While not all countries of the OECS have presented cases of the disease, the US Centers for the Control of Diseases has defined the risk as covering Latin American and the Caribbean because of the speed with which the outbreak could spread. Acknowledging the OECS to be a single health and economic space and considering the impact of concerns over a possible Zika outbreak, the OECS

Ministers of Health have agreed to a harmonized approach involving leadership at the highest level, engagement at the widest community level, coupled with partnership from national, regional and international agencies to address this challenge. Although to date there have been no confirmed cases of Zika in the majority of OECS Member States, proactive measures are currently being implemented and stronger coordination of effort will be seen in the coming weeks.

These measures include: •

•

Leadership at the Ministerial and Parliamentary levels to mobilize communities in country-wide campaigns to eradicate mosquito breeding sites, and to destroy the existing adult population Partnerships with stakeholders, including the tourism industry, to promote measures to prevent all mosquito borne illnesses among residents and visitors alike Robust vector and disease surveillance, including increased premises inspection, mosquito eradication and control measures, especially in areas of high population density www.oecsbusinessfocus.com

The OECS-wide campaign will have four elements to it: 1. Monitoring and surveillance – a close alliance of national, regional and international public health agencies to keep close tabs on the disease, and using this intelligence to attempt to keep ahead of the disease 2. Eradication and protection actions – by national authorities, communities, and workplaces aimed at the most rapid elimination of the mosquito by a variety of measures including fogging, removal of potential breeding sites, use of mosquito nets and skin protection sprays and so on. 3. Care and case management – putting in place arrangements in the public health service to manage any cases that may present themselves 4. A widespread Public education campaign to inform and educate citizens on the status of the threat and the measures that we can and should take at the personal and community levels Several member states have already started to implement some of these measures, and because the efforts will be coordinated collectively, we will ensure that best practices in each national space are adopted in all of the others. The OECS Council of Ministers will be actively overseeing the campaign and we will involve the private sector (especially the tourism industry), the trade unions, churches and other civic bodies in what MUST be a national effort. At the regional level, the air and sea ports and main means of sea and air transportation will be asked to play a key role in preventing vector transmission. The OECS Pharmaceutical Procurement Service will be undertaking central purchasing of mosquito control related commodities and services, such as medicated mosquito nets, repellants, foggers etc., to ensure that we are able to obtain sufficient quantities at the best prices. The Communications Unit of the OECS will be working closely with the Government Information Services of Member States and the media in the OECS to provide updates and explanations of what needs to be done and how. Public awareness is the most important weapon in this battle because we can only successfully defeat the threat of this disease if all citizens and visitors understand what must be done. We also need to communicate and demonstrate to the outside world the determined effort that we will undertake so that visitors will not be fearful of coming to our shores. This battle is foremost about protecting the lives of our people against this disease but it is also about protecting our livelihoods – our vital tourism industry on which so many rely. Brothers and sisters of the OECS family, fear cannot be the answer to this threat…only collective, determined action will be. We are therefore declaring February to be the MONTH OF CONCERTED ACTION by all stakeholders. The enemy here is the tiny mosquito and it cannot be fought by government ministries alone; every one of us must play our part in creating safe living and working spaces in which mosquitos are eliminated. We urge each and every one of you to play your part in this war. May God continue to Bless You and to Grace the Caribbean and the OECS with his Protection. ¤

Congratulating Sir Vaughan Allen Lewis

Knight Commander of the Order of Saint Lucia

he OECS Commission joins the region in congratulating the conferment of the award of Knight Commander of the Order of Saint Lucia upon Prof. Dr. Vaughan Allen Lewis, the founding and longest serving Director General of the Organisation of Eastern Caribbean States Secretariat. Current OECS Director General, Dr. Didacus Jules said it was very difficult to list exhaustively all of the many ways that Sir Vaughan Lewis has promoted and championed the OECS regional integration agenda. “Sir Lewis served as Director General of the OECS with distinction from its inception until 1995. The award of Knight Commander of the Order of Saint Lucia is a fitting tribute to an individual who has served Saint Lucia and the region selflessly throughout his professional life. The staff of the OECS Commission join me in extending heartiest congratulations to Sir Vaughan Allen Lewis and his family.” Following his tenure at the OECS Secretariat, Sir Vaughan Lewis pursued a political career in which he also became Prime Minister of Saint Lucia. He graduated from the University of Manchester with a Ph.D. and was an Assistant Lecturer at the University College of Swansea in Wales, the University of Liverpool and then Research Fellow at the University of Manchester. His research work on regional integration, the behaviour of Small States in the international political economy and on relations between the Caribbean and Latin America has been published widely. His body of work has been a point of reference for many a student in the field of Politics and Government. Today, Sir Vaughan Lewis, Professor Emeritus of the Institute of International Relations of the University of the West Indies, St. Augustine, is the Special Advisor on External Affairs to the Government of Saint Lucia. The conferment of the award of Knight Commander of the Order of Saint Lucia upon Prof. Dr. Vaughan Allen Lewis award was official presented during the investiture Ceremony at Government House as part of Saint Lucia’s 37th Anniversary of Independence. OECSBusinessFocus Mar / May

THE CATALYST FOR INVESTMENT & DEVELOPMENT

By Vincent Philbert, Head of the OECS Competitive Business Unit based in Dominica

OECS Commission Leads Private Sector Initiative to Deepen OECS Cuba Economic Cooperation

t a meeting of the OECS Economic Affairs Council held May 2015 the OECS Commission presented a program of activities on early action to promote economic co-operation and business exchange between the Commission, OECS stakeholders, institutions and private sector and their Cuban counterparts. The Council endorsed the Work Program to facilitate deeper engagement of the private sector with Cuba thereby increasing trade and economic co-operation. Although access to Cuba as a trading partner has been limited due to critical issues related to transportation, business operation modalities and inadequate critical mass there are now new emerging opportunities for joint ventures, building synergies across sectors, and enhancing transportation logistics out of the constant engagement of Member States with bilateral arrangements.

OECSBusinessFocus Mar / May |

For instance, the Trade and Economic Co-operation Agreement currently in place between the Caribbean Community (CARICOM) and the government of the Republic of Cuba aims to strengthen commercial and economic relations between the Parties through, inter alia: 1. The promotion and expansion of trade in goods and services originating in the territories of the parties. 2. The establishment of financial arrangements to facilitate the progressive development of two-way trade between the Parties; 3. The progressive liberalization of trade in services; 4. The encouragement of one Party in the market of the other Party so as to enhance the competitiveness of the Parties in the world market; 5. The provision of facilities for the establishment and operation of joint ventures and other forms of economic co-operation activities; 6. The development of mechanisms that promote and protect the investments made by nationals of the Parties.

The recent partial lifting of US embargo on Cuba as well as the limited access of the Cuban consumers to a wide choice of international products provides opportunities for increasing the volumes of goods and services traded from the OECS. Proactive interventions to explore opportunities for establishing clusters to meet the market demand for items such as clothing, household products as well as beverages and of course services become an urgent priority for the OECS Competitive Business Unit. In 2015, working within the framework of the Co-operation Agreement, the Commission stepped up its agenda for deepening its engagement with Cuba

Vincent Philbert holds a Degree in Economics from the University of Cambridge and an MBA from the University of the Virgin Islands. He is the Head of the OECS Competitive Business Unit located in the Commonwealth of Dominica. www.oecsbusinessfocus.com

in the areas of Commerce and Export Promotion with a series of interventions including those involving the private sector, led by the Competitive Business Unit (CBU). Between June and December, 2015 the Unit participated in three events held in Cuba as part of reconnaissance and exploratory actions to promote business exchange. These actions were made possible with funding support approved by Special Derogation from the European Union Delegation under the private sector component of the OECS Economic Integration and Trade programme. Business Information & Exchange: Cuba CARICOM Business Forum The first activity aimed at deepening the engagement of the region’s private sector with Cuba was a familiarization visit in July, 2015 for the OECS Commission’s Business Development Officers at the CARICOM-Cuba Business Forum hosted by the Chamber of Commerce of the Republic of Cuba and the authorities of the Government of Santiago de Cuba from 15th to 17th July. The event, organized in the context of the 500th Anniversary of the City of Santiago de Cuba, was an opportunity to strengthen economic relations between Cuba and the Caribbean. The OECS Delegation had opportunities to explore discussions on bilateral trade, promotion of joint ventures between SMEs and to receive presentations from Cuban officials and various Private Sector Agencies on areas such as the Cuban business environment and applicable systems, procedures governing the conduct of business, and the trading opportunities in Santiago de Cuba which serves as the gateway for trade between Cuba and the Caribbean. Havana International Trade Fair November 2nd - 8th 2015 Emerging from the Santiago Mission the Commission collaborated with Caribbean Export to support the follow-up participation of the six (6) SMEs in the Havana International Trade Fair (FIHAV) held November 2nd – 8th

involved in trade and investment, introduction to key persons and stakeholders, (including firms that are seeking products and services for which OECS enterprises have supply potential), and laying the ground work with the Cuban Chamber of Commerce for collaboration in logistical and other arrangements for future initiatives such as for participation in Trade Fairs and other market penetration events}. The overall objective of the mission was to strengthen ties with Cuba to encourage export of OECS products and services with five (5) key specific objectives as follows: • • •

•

To further advance OECS private sector interest in the Republic of Cuba To explore opportunities to expand trade between OECS and Cuba. To establish regional and international networking linkages with State Agencies, Distributors, Business Support Organizations and other relevant agencies within the Cuban market To identify opportunities for joint ventures, partnerships, distributorship and other synergistic investment undertakings that result in increased competitiveness and trade To further strengthen the CARICOM-CUBA agreement, the OECS MOU and joint economic cooperation

This mission held at the end of November culminated the 2015 series of business-to-business exchange and served as a further follow up on earlier initiatives in the year involving the public and private sector. Preparation for the mission received strong support from a Working Group of OECS stakeholders. The Working Group included representatives of the Ministries of Trade of the OECS, the OECS Embassies in Havana, private sector bodies in the OECS and staff of the OECS Commission. Crucial guidance and support was received for preparation of the

2015 High Level joint Public/ Private Sector Mission to Cuba The Director General, Dr. Didacus Jules, led an official mission to Cuba to advance bi-lateral relations and collaboration on matters of mutual interest for the Republic and the Commission in various areas, including Health, Education, and Sports. Representatives from the private sector were invited to join the official mission which was designed as a public/private mission, to facilitate further exchange. Forming part of the mission were representatives from two (2) OECS clusters, from Grenada and Dominica representing the OECS rum and paper clusters, respectively. Mr. Severin Mc Kenzie, proprietor of Nature Island Paper Products and coordinator of the OECS paper products cluster and Mr. Devon Date of Grenada Distilleries Ltd, representing the rum cluster. The Director General, Dr. Didacus Jules was accompanied by senior personnel from the Commission: Head of International Relations Unit, (IRU) Ambassador Anthony Severin the Head of Pharmaceutical Procurement Services Unit (PPS) Francis Burnette and the Head of the Competitive Business Unit (CBU). Vincent Philbert. The private sector program of the mission involved meetings with counterpart agencies and entities in Cuba such as {those

mission’s program from the OECS College of Ambassadors based in Havana, the Cuban Ambassador to the OECS based in Castries and also Cuba’s Ambassador to Dominica. Among the Outputs and Outcomes of the business side of the Mission were: 1. Identification of specific opportunities for trade and investment 2. Awareness of the shipping, transportation and distribution channels in support of trade with Cuba. 3. Introduction of the OECS Private Sector to their Cuban Private Sector counterparts OECSBusinessFocus Mar / May

3. Shipping/Transport regularity. It would seem shipping via Port of Mariel or Santiago to Jamaica and onto non-US registered lines such as Cagema would be the best option, until such time as the US blockade and its restrictions on US shipping calls to Cuba is lifted. 4. Trade-Related information on Cuba and on OECS markets for Cuban goods such as fisheries and other rules for frozen foods/meats such as shrimp or lobster. 5. Modality for Business Engagement. The ideal market arrangement to drive trade between the two sides now has to be determined. Some of the elements to be considered include: 4. Access to technology and new techniques for business development. In Cuba, the Chamber of Commerce served as the focal point for arrangement of meetings and visits for the private sector representatives. Discussions were held with senior officials of the Chamber of Commerce, (Camara de Comercio) and with various Cuban agencies and concerns involved with trade and business. Notably, were the meetings with CORALAC, SA – the major food distributors in Cuba, with CUBARON, trader in high end brands of bottled rum and spirits, with AT COMERCIAL – supplier of hospitality products such as sanitary items for over fifty (50) hotels representing 26,000 rooms, TECHNOAZUCAR – leading sugar cane grower and distillery. The meetings provided insights into the various requirements of the market, the extent of demand, and areas of possible collaboration. For instance in the rum sector discussions explored opportunities for Cuba to provide technical assistance in agronomy, supply of planning material distillery operations, and related distillery re-habilitation technical assistance for upgrades for OECS traditional rum distilleries and sugar plantations. Cuba could also serve as a source for bulk rum or molasses to these distilleries: For the paper cluster, the Cuban market is virtually elastic. There is potential for accommodating an OECS niche in this market, but this would require a concerted OECS effort to co-ordinate production in a cluster arrangement across all the region’s producers of paper, for instance, in order to assure a reliable/ consistent supply.

•

• What is the ideal arrangement to put in place in Cuba to facilitate the “pull” of products and investment? A market-based agent on Commission? A distribution company? A Trade Attaché associated with the diplomatic postings in Havana? How would such be financed? As a Public/private initiative with contribution/ commissions on sales/ orders secured? A Retainer or base salary with Commissions?

How would supply of paper products, for instance, be best pursued? An OECS cluster of the four producing companies could incorporate a subsidiary for the specific purpose of securing orders, consolidating volumes, shipping and making payments to the cluster participants. From the reaction of the private sector representatives the overall conclusion suggests that the OECS rum cluster has a ready opportunity to source bulk inputs from Cuba and for technical assistance related to distillery operations and cane cultivation where traditional distilleries are in operation. For the paper cluster, one of the key issues will be the terms of payment for supplies as the average ninety to one hundred and eighty days is long, by usual standards. While there is potential to make consolidated orders in that cluster to meet some portion of the vast demand, payment terms and shipping arrangements will need further development and negotiation.

1. Payment Terms: Cuba has all necessary payment systems in place. The issue of terms of payment would be important with quoted credit terms ranging from ninety (90) to one hundred and eighty (180) days.

From the CBU perspective, this Mission, and the OECS engagement with Cuba is part of a medium term strategy to position the OECS SMEs to be a ready participant as the economic paradigm in Cuba is rapidly unfolding. SMES need to be poised by the time air routes to the region present new convenient air access, and when shipping lanes open up and regular traffic to Cuba is routine. These missions empower the SMEs by introducing them to key counterpart business contacts, counterpart support organizations and to sound information/ knowledge of the Cuban economy and market requirements.

2. Export Financing Arrangements: To facilitate trade under the above payment terms it would be necessary to arrange credit/export financing arrangements in the respective member states in support of the cluster.

The OECS Competitive Business Unit’s programme for the SMEs is delivered to individual enterprises based on an assessment of their requests and to clusters (or groupings of enterprises) within defined sectors that have a common need. ¤

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OECSBusinessFocus Mar / May

THE CATALYST FOR INVESTMENT & DEVELOPMENT

By George Alcee

ecently the OECS Commission, through the support of the Food and Agriculture Organisation (FAO) convened a meeting of OECS Agriculture Focal Points in Roseau Dominica. The Focal Points were nominated by the Ministers of Agriculture of the OECS, following the Second Council of Ministers Meeting held in Antigua in November 2015. The primary focus of the meeting held from February 17-18 2016 was to improve the governance structure within the economic union for the successful implementation of the OECS Agriculture Plan of Action (APOA) and the region’s Food and Nutrition Security (FNS) Policies and Plans. Recognizing the urgency to address challenges facing the agriculture sector and its development, the OECS Commission conducted an independent review of the existing policy framework and action plan for agriculture in 2009. Emanating from the review, it was recognized that there was need to transform the sector in light of a growing population and increased food demand, a high food imports bill accompanied by OECSBusinessFocus Mar / May |

Focal points propose governance structure for implementing the OECS Agriculture Plan of Action (APOA) and the Food and Nutrition Security Policies and Plans (FNSPs)

changing tastes and dietary preferences, the high cost of energy and a scarcity of resources such as land, water, finance and challenges of climate change, which all impact on the production and distribution of land. The review concluded that the policy framework and strategic plan compared well to framework priorities for agriculture in the wider Caribbean and in countries with similar open economies and development challenges. However, arising out of international developments since 2004 and the difficulties faced in implementing the institutional arrangements for execution of the original Agriculture Plan of Action (APOA), a number of critical factors emerged as inputs to a reoriented agriculture programme. These include: •

•

private sector led strategies to transform OECS agriculture by enhancing responses to national and regional food and nutrition security as well as new trends in nontraditional agricultural exports; influencing the consideration of poverty alleviation objectives in the development of commercial supply chains;

•

• •

a strategy for financing agriculture and for resource mobilization primarily for the OECS regional programme; strategies to address the impacts of climate change and climate variability; enabling more coherent and effective participation of OECS Member States in the regional programme through capacity building at the OECS Commission in programme management, monitoring and evaluation; and

George Alcee is an Agriculture Economist at the OECS Commission. Mr. Alcee’s office established in 2002 has also facilitated efforts in reducing the threat and in other cases the spread of the Black Sigatoka plant disease in the OECS. His office also assists in formulating policy guidelines on general agriculture development in the OECS.

www.oecsbusinessfocus.com

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Approaches to more systematically developing synergies with CARICOM-wide agriculture. There are also on-going discussions on Agricultural Risk Management and Crop Insurance Policy and Programmes, water harvesting and recycling; all strategic steps to address the challenges of the sector.

Inherent in all these factors is the issue of governance. This as the Agriculture Plan of Action is set in the context of a mix of proactively linked national Food and Nutrition Security (FNS) policies and plans of the OECS as well as regional policies and plans such as the Regional Food and Nutrition Security Policy (RFNSP), Regional Food and Nutrition Security Action Plan (RFNSAP), the Community Agricultural Policy (CAP), the Common Fisheries Policy, the Caribbean Cooperation in Health, the Regional Agribusiness Strategy, etc.). The importance of an efficient and effective system of governance capable of coordinating and integrating actions within and across the Economic Union, stakeholders and sectors has been and cannot be over-emphasized. In proposing the governance structure the focal points reflected on the scope, strategic elements and processes of the Agriculture Plan of Action, the FNS, the implementation plan and the proposed governance structure as well as discussed and agreed on the form of good governance needed to significantly improve the pace and effectiveness of implementation of the OECS Agricultural Plan of Action and the FNS at the national and regional levels. Good governance must relate to formal and informal processes through which public, private and civil society actors articulate their interests, and decisions for achieving common goals at a local, national, regional and global level, and it should be treated both as a means to an end and as an end in itself. We also need to underscore the importance of public policy established by governments with the intention of shaping behavior and outcomes for the achievement of agreed goals. However, there are recognized governance challenges in implementing the APOA and the FNS. And these include: • • • • • • • •

Building greater commitment at the OECS Heads of Government/OECS Authority level; Strengthening of the OECS Agriculture Coordination and the Ministries of Agriculture in the Member States; Improving internal coordination between OECS Units and within Governments; Mobilization and effective utilization of resources for the implementation of the strategic priorities; Strengthening the linkages between the OECS Agricultural Plan of Action and the wider CARICOM initiatives; Establishing linkages with the private sector to promote integrated and market oriented agribusiness approaches; Establishment of inclusive technical working groups (TWGs) and Improve collaboration between OECS Commission and supporting institutions.

During the exercise stakeholders committed to an arrangement and governance structure that would facilitate the efficient and effective implementation of the APOA and FNS policies as well as other action plans. ¤ OECSBusinessFocus Mar / May

THEBUSINESS CATALYSTTECH FOR INVESTMENT & DEVELOPMENT

The OECS/PPS has a comparative advantage over an individual country’s procurement capacity because the aggregate regional tender has successfully attracted and maintained competitive prices for the past twenty years. The estimated 20 percent reduction on the unit cost of pharmaceuticals and other medical products has resulted in annual aggregate cost saving of approximately $4 million. The annual cost-savings have reinforced OECS/PPS as an excellent model of economic and functional cooperation, which should be expanded to procure other non- medical goods and services as a semi-autonomous business entity.

The OECS / Pharmaceutical Procurement Service (OECS / PPS) Speaks on the Advantages of Pooled Procurement

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Background

The OECS/Pharmaceutical Procurement Service (OECS/PPS) was established in 1986 as a pooled procurement agency to purchase tendered pharmaceuticals and other medical products for the OECS Member States. In 1990, OECS/PPS became fully self-financing by charging Member States an 11% surcharge fee on invoices. OECS/PPS has provided Member States with a reliable supply of high quality pharmaceuticals that are safe and effective, and has a comprehensive quality assurance program that encompasses a restricted international tendering system.

OECSBusinessFocus Mar / May |

•

OECS Countries have derived the following benefits from the regional pooled procurement system:

By Francis Burnett-Head of the OECS PPS 1.

Advantages of Pooled Procurement

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Economies of scale through reduced prices by purchasing large consolidated quantities of medical products through the pooled procurement system. Adequate supply resulting from a reliable supply of tendered products because requisition orders had been scheduled to ensure discipline in ordering and avert stock outs. Rational Drug Use through a harmonized regional drug formulary with common treatment protocols. Quality assurance through a comprehensive quality assurance program to maintain product quality, and to protect the public sector from the proliferating menace of counterfeit drugs. Financial Incentives arising from annual surplus distribution that are pro-rated and redistributed to OECS Member States. Market intelligence and information sharing on drug quality, medicine prices, and supplier reliability with Ministries of Health at regional meetings and consultations.

Strengths of the OECS/PPS

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Recognized as the world’s leading multi-state pooled procurement agency for pharmaceuticals and related medical products by reputable health organizations, such as Management Sciences for Health (MSH), Pan American

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Health Organisation (PAHO), United States Agency for International Development (USAID), World Bank, and CARICOM Secretariat. Provides technical assistance and collaborates with regional and international health institutions in developing, and implementing pharmaceutical policy regarding procurement and management of pharmaceuticals. Twenty-eight years of experience in executing annual tenders and awarding contracts to pharmaceutical and medical suppliers in a fair and transparent manner, and conforming to World Bank standard bidding procedures. A proactive and ever-expanding agency that commenced in 1986 with 250 medicines at an annual value of $2 million. Currently, OECS/PPS purchases 800 medical products at an annual value of $24 million. Country-based committees that confer the Member Countries with a full sense of participation, ownership, and confidence in the regional program. Reducing the unit cost of products by approximately 20 percent, while providing a service level of approximately 90 percent prescribed drugs. A financially viable coordinating unit to procure pharmaceuticals and medical products. ¤ To be continued…

Francis Burnett Heads the OECS Pharmaceutical Procurement Service, one of the flag ships of the OECS Commission and functional cooperation in the region. The OECS PPS was established on the 1st of August 1986 and has gained worldwide recognition for its success story in pooled procurement. www.oecsbusinessfocus.com

OECSBusinessFocus Mar / May

THEBUSINESS CATALYSTTECH FOR INVESTMENT & DEVELOPMENT

OECS Member States Discuss Setback Guidelines as They Cruise Towards an Integrated Coastal Zone Management Policy

By: Norma Cherry-Fevrier

he Caribbean region is an area rich in marine life and coastal resources that are crucial to the tourism product—the largest contributor to gross domestic product (GDP), and to food security. In our region, majority of the physical development in the islands occur along the coast and 70% of the population live along the narrow coastal lands. As well, coastal areas have multiple uses for multiple sectors and are under constant threat from increasing physical development, population expansion and land based sources of marine pollution. Integrated Coastal Zone Management (ICZM) seeks, over the long-term, to balance environmental, economic, social, cultural and recreational objectives, all within the limits set by natural dynamics. ‘Integrated’ in ICZM refers to the integration of objectives and also to the integration of the many instruments needed to meet these objectives. It means integration of all relevant policy areas, sectors, and levels of administration. It also means integration of terrestrial and marine components in both time and space. ICZM can therefore be defined as a process for the management of the coast using an integrated approach, regarding all aspects of the coastal zone, including geographical and political boundaries, in an attempt to achieve sustainability. Defining the coastal zone is of particular importance to the idea of ICZM, but the uncertainty of borders due to the dynamic nature of the coast makes it difficult to clearly define. OECSBusinessFocus Mar / May |

The OECS Commission, through a consultancy has developed a draft Model ICZM Policy for the OECS Region including coastal setback guidelines. The draft documents were presented at a regional consultation which brought together participants from the OECS Member States to review and provide feedback, with the aim of moving towards a further refined document which can be adopted by Member States. Dr. Valma Jessamy of the consulting team emphasised the importance of partnerships for the effective implementation of an ICZM Policy for the OECS Region as this can assist in sustaining economic growth as well as enhancing the health and well-being of OECS people: “I think in the region we need a partnership between government, the private sector and society as a whole. Of course, government will set the policy environment, would create incentives, negotiate and broker relationships with international organisations to bring resources in for us at the national level, but we really need to bring all sectors on board whether it’s a hotel developer, an energy company or a fisherman to make this happen.” Dr. Jessamy also praised previous interventions undertaken by the OECS Commission (then OECS Secretariat) which have helped tremendously in crafting the draft policy for the region’s coastal zones. She noted for example, that St. Georges’ Declaration of Principles for Environmental Sustainability has

provided noteworthy guidance. All in all, these efforts which seek to bring balance within the coastal zone will not only inform climate change adaptation actions but also contribute to achieving the United Nations Sustainable Development Goals. Finally, Dr. Marije Schaafsma, an environmental economist and part of the consulting team also facilitated the discourse. She noted that issues such as legislative support, proper land use practices, the effects of sea level rise, public perception, storm surges and overall environmental degradation are issues that experts believe significantly influence Coastal Zone Management. Discussions will therefore continue among Member States towards achieving a comprehensive final document.

Norma Cherry-Fevrier is a Programme Officer on the RRACC Project. 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). www.oecsbusinessfocus.com

OECSBusinessFocus Mar / May

THE CATALYST FOR INVESTMENT & DEVELOPMENT

BARBARIANS AT THE GATE: THE SCARY RISE IN SHAREHOLDER ACTIVISM In 2015, there were approximately 400 US Shareholder activist campaigns, the most since 2008. So what is this thing called “shareholder activism”? As an economic activity, shareholder activism is a way in which shareholders attempt to influence a corporation’s behavior – principally through the Board of Directors and its Management - by exercising their rights as owners. Although shareholders don’t really run a company (especially large ones), there are multiple ways for them to affect change.

t one activism extreme there are the ‘hedge funds’ which are pools of capital designed to acquire a major investment in a company and use that stake to effect change. At the other end are “shareholder proposals” that are voted upon at the corporation’s AGM (annual general meeting). Nevertheless, each form of activism aims to bring about a major adjustment to a corporation’s strategy, board composition, senior management team, financial operations, executive compensation, and/ or governance policies and practices Their purpose in doing so is also the same: to increase the corporation’s value. While activists are not a new innovation (they’ve been “active” since the 1980s) their scale and scope has expanded enormously. Activists now run funds with at least $100 billion of capital. In fact, in the most recent past, one in seven S&P 500 firms has been the recipient of an activist assault. And no one is immune. Just ask Microsoft, Procter & Gamble, Netflix, eBay, Yahoo, and the Bank of New York Mellon, the bankers’ bank! There’s no question that activism is not without controversy. Supporters claim companies without critics are destined to be less successful than those that are held to some standard of accountability. Activists, they argue, are the watch dogs that bark loudly when they see boardroom and management leadership

OECSBusinessFocus Mar / May |

mediocracy. In so doing, they help bring about change and do it more quickly than it might otherwise occur. While they are typically labelled as “curmudgeons to the core”, activists often wind up being a failing corporation’s unsung redeemer. On the other hand, opponents argue that shareholder activists are just a bunch of disruptors and extortionists. “They like to steal assets and replace them with debt” say a lot of unhappy targets. And “they’re an unruly mob” opponents add, who without hesitation, are not afraid to publically call non-performing CEOs “clueless idiots” and “lazy bastards”. Modus operandi Back in the 1980s, activists usually wanted to breakup the company since they saw the corporate “sum” as being less than the individual parts. This often earned them the name of “corporate raiders.” Their typical strategy was to use their own money to obtain a significant position in the corporation’s stockholdings and then wage a proxy war to wrest control away from the existing board. Activists today, however, usually prefer to raise most of their money from other investors (who support the activist’s planned changes) and then seek to obtain one or two or three board seats to influence significant changes in shareholder value. The process generally starts with the activist approaching a select number of large shareholders to ascertain the latter’s receptivity to the

activist’s contemplated changes. After this, company officials are approached in which the goal is to have them agree to the changes before explicitly threatening a proxy fight. And while a company’s breakup is still an option, activists’ new approach once in power is to seek changes in the firm’s governance to increase the company’s value rather than scavenge the firm’s assets.

Dr. Chris Bart, FCPA is a recognized global governance authority and Co-Founder of the Caribbean Governance Training Institute. The Institute is the first to offer throughout the Caribbean an intensive 3 day governance program leading to the prestigious and internationally recognized Chartered Director (C.Dir.) designation. For more information visit CGTI’s website: http://www. caribbeangovernancetraininginstitute. com/ or phone Lisa at 758 451 2500

www.oecsbusinessfocus.com

What Activates the Activists? There are two principal forces at work that attract the attention of activists and that cause them to attack. The first is a country’s securities legislation which may be more (or less) welcoming to activists in some jurisdictions than others. For instance, the minimum “warning threshold” in which activists are allowed to operate covertly before having to announce their share position is a generous 10% in Canada versus 5% in the US. There are often also differences in the number of shareholders an activist may contact to solicit their support without notifying the regulators. However, what really attracts activists most often - like bees to flowers - is the persistent refusal of boards and their managements to correct their company’s major problems. Incredibly, the leadership of these organizations prefer to bury their heads in the sand believing that the activist “boogeyman” will never appear. Well, think again! Here are just some of the “sins” that lazy boards and their senior managers commit which bring the activists rushing to their doors: •

Top of the list, there is uncorrected fundamental underperformance. The company’s products and services are well known but, relative to its peers, performance has lagged for a considerable period of time;

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The company has significant excess cash reserves without any strategy for deploying them;

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The corporation is failing to meet the current prescribed governance “best practice” standards in terms of board composition (i.e. qualifications and structure) and their board’s behaviors.

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There are concerns being expressed in the media and by governance professionals about: • the corporation’s executive compensation practices; • the board’s non-response to a shareholder proposal approved at the most recent AGM; • a major acquisition or new product launch that has gone extraordinarily bad; and/or

• a sitting director who failed to secure at least 50% of the votes at the most recent AGM. •

The board has been negligent in their shareholder engagement activities. All of this is just another way of saying that activists are drawn to companies that are out of touch with their major stakeholders, but especially those who own the company, the shareholders.

How to Prevent and Respond to Activism To keep the activist “barbarians” from attacking, the solution is surprisingly OBVIOUS! Boards and their CEOs need to undertake a critical examination of their corporation’s performance, assess their governance framework against best practices, and have the ‘spine’ to replace those directors and senior managers who have gone beyond their “best before date”. Caribbean companies that aren’t willing to do these sorts of things could find an activist there to do it for them. So, what to do when first approached by an activist? Your response will play a big part in how collaborative or hostile your company’s future will be. Research has shown that 75% of activists’ start collaboratively, but 50% of them turn aggressive. This says that corporations, their boards and their management teams first need to think more about how they will engage with an activist versus whether they will acquiesce to the activist’s proposal(s). Accordingly, while there may be circumstances that demand more aggressive retaliation to an activist’s assault, research by experienced governance professionals has concluded that the more prudent approach involves the following: A. Be prepared! This means conducting an anticipatory activist audit (“AAA”) to ascertain your organization’s true performance and determining whether your corporation might be an activist’s target given its current strategic and operating activities and plans. Corporations that try to see themselves from the perspective of an activist – and where they will most likely attack - will be in the best position for mounting a quick and intelligent counterstrike. Boards should also have their managers develop a game plan to execute upon first contact with an activist.

B. Don’t automatically dismiss the activist’s suggestions/recommendations. Everyone will be paying close attention to the activists’ suggestions. If the activist’s changes are helpful, embrace them publically. After all, corporations that are able to show their owners that they are not afraid of progressive change, especially if it comes from outside sources, can help strengthen shareholder confidence in their stewardship. So, don’t let pride get in the way. C. Accommodate where possible. Don’t sweat the details. An activist campaign can cost a small fortune for both the activist and management, the latter of which have their precious attention and time sidetracked from running the business. Recent research suggests that contested campaigns for very large companies cost between $10 million and $20 million in advisory and public relation expenses, not to mention the executive time required to mount a counter offense campaign with the shareholders. Most activists would prefer spending as little time as possible to effect the changes they desire and then mosey on to their next victim. Help them move along. D. Don’t forget to tell your side of the story! If you believe the activist’s changes aren’t good for the corporation, investors and the business media will want to know why. Clearly stating the corporation’s rationale for currently pursuing its particular course of action will help greatly in strengthening resiliency against denunciation. In conclusion, boards should view the potential appearance of an activist as a pre-emptive call to action for improving their organization’s success and continuity. Yet many boards either fail to consider this thereby leaving their firms and themselves vulnerable. So here’s the big, uncomfortable question for Caribbean directors: to what extent does your board have the assurance it needs regarding your organization’s state of preparedness for an activist? If you think that there is room for improvement in the way your board carries out this important governance oversight function, you might want to consider sending them to one of the corporate governance training programs currently available in the region – like the unique 3 day Chartered Director Program currently being offered by The Caribbean Governance Training Institute. After all, it’s not education which is expensive, but rather ignorance. ¤ OECSBusinessFocus Mar / May

Money… Money…

Money!

By Samuel Rosenberg

anaging your small business is so much more than offering the best products at the right prices with high quality service. Where you are unable to manage your business finances, many of your great qualities may possibly be squandered. Small businesses often cannot afford to employ a financial controller or accounts manager. This task is usually completed by the business owner, because trusting someone else to manage your business finances presents its own difficulties. The individual running the business must be able to understand and negotiate all of the financial elements necessary. Allowing an untrained full-time employee to manage the company’s finances during one or two hours a week can be a recipe for disaster. The biggest challenge that most small businesses face is the ability to manage their finances effectively. When you are considering a volatile economy and the competition in your industry, you have an obligation to educate yourself to be able to exercise caution with your financial decisions as you attempt to run your business competently. You will be creating a financial structure that aims to provide a profit for your business. Not all great ideas become successful businesses, but where the finances are managed efficiently, the

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company will have a good idea about its future. While you may be happy working with a specific vendor, it makes great sense for your business to compare prices from a range of vendors to ensure that the quality and the prices are correct for your business. Recording every item of income and expenditure related to your business is vital. Some small businesses use free accounting software for their basic needs and some owners will only use a cheque book to pay bills to provide another level of record-keeping. Should you not understand the accuracy of money coming into and going out of your business, you may never know how well or how poorly the business is doing. There are a wide range of cloud-based accounting software situations available to small businesses, so that you can make entries into the system at a time that suits you. Monitoring your cash flow is vital for your business to stay afloat. Where you offer your products on credit, you will need to create a carefully managed collection skill to ensure you receive money at the right time. Some poorly managed businesses give credit and fail to chase the income, which can lead to the business failing even though, on paper, sufficient business was being completed. Educating the owner of the business and all employees to record and

manage the finances is essential. As you become better at reading your financial statements you will find it easier to manage your business. Many small businesses confuse their personal and business finances by keeping them together. This is always a mistake. Keeping clear lines between the two sets of finances will clearly show how each is operating. Running a small business can be a mixture of great fun and desperation. Even if mathematics wasn’t your strongest subject at school, understanding the finances for your business will eventually become an easy task. Control of running the business with better information will help you improve the future of your business. ¤

Samuel Rosenberg is the founder and CEO of Axcel Finance Ltd., the leading regional microfinance institution. Share your thoughts and email your questions to srosenberg@axcelfinance.com www.oecsbusinessfocus.com

Special Feature

A Land of Beauty and opportunity! • A Place to do Business • Great Investment Opportunities • A Growing Economy

OECSBusinessFocus Mar / May

Saint Lucia

A Land of Beauty Inside and Out!

The Gateway for Opportunity, Growth and Investment in the Eastern Caribbean

A Message from the Hon. Dr. Kenny D. Anthony Prime Minister and Minister for Finance, Economic Affairs, Planning & Social Security

Welcome to this feature on the island of love, luxury and light, the isle called the Helen of the West, Saint Lucia! Saint Lucia has often been a gateway for the Caribbean. In the days of colonial rivalry, we were a strategic linchpin. In the days of coal, we were once one of the most important ports in the world. Today, we are determined to once again be that gateway for opportunity, growth and investment in the Eastern Caribbean. Today, we are diversifying and expanding our economy in areas such as financial services, renewable energy, health, education and research, but also through the digital and creative economies. OECSBusinessFocus Mar / May |

www.oecsbusinessfocus.com

Beautiful Landscapes, Beautiful Minds

Product Offerings

Our economic base, however, for the time being remains tourism. And with good reason. We have a people as warm, kind and hospitable as the Caribbean sunshine.

We will be investing in tourism product offerings to make our port and capital city of Castries attractive and enticing, more appealing to visitors who just want to get off the ship and walk around. This will take the form of a mix of public and private investments. These will include improved traffic circulation, enhanced safety and sanitation, as well as landscaping, beautification and signage measures.

Saint Lucia is world renowned for beautiful landscapes, but we are also proud of our beautiful minds. Saint Lucian culture, discipline, hard work and ingenuity has resulted in two Nobel Prize winners in Economics and Literature, Sir Arthur Lewis and Sir Derek Walcott respectively. We will continue to marry our beautiful environment with smart, strategic and imaginative thinking to realise an island that is a great place to live, work and vacation. Such ambitions require foresight and determination, the type it takes to climb our world famous Pitons!

Expansion in duty-free shopping facilities at Port Castries will also be pursued through public-private partnerships (PPPs). Another major investment to commence in 2016 will be the dualising of the Castries-Gros Islet Highway, a highway used daily by close to 30,000 vehicles and servicing the majority of our hotel plant.

Saint Lucia offers a mix of exclusivity, fun and romance: truly an island of poetic coves and tranquilizing sunsets. And there is so much on offer: gorgeous green landscapes, calm bays and marinas, sumptuous cuisine, high quality onshore and marine adventures, lovely boutique and luxury properties, historic forts perched aside tranquil beaches and a rich French Creole legacy.

We will continue to support stay-over arrivals and airlift capacity through the new Hewanorra International Airport PPP. This will see the take-off of investment into our international gateway.

Realising Growth

Away from tourism, expect to see before year end the opening of two new state-of-the art health facilities – the new Dr Owen King-EU Hospital at Castries and the reconstructed St Jude Hospital at Vieux Fort. We are also pursuing partnerships with academia and research interests to ensure that these modern facilities also directly support economic activity.

After the mellow economic spell of the past years, we are finally realising growth and this will largely be as a result of investments in tourism. Hotel expansion abounds. From the buzz of Rodney Bay to the serenity of Soufriere, we will be expanding both in terms of quantity and quality of our offering. With over 4,500 rooms and another 700 on the way by end of 2016, we expect to enrich visitor experiences and induce greater spend. And further resort and real estate investments are on train within the medium term. This expansion will certainly be invigorated by strong interest in our new Citizenship-byInvestment Programme (CIP) which we launched January 1 this year. This will be supported by continued public and public-private investments in making our island more competitive and attractive as a destination. Already, with close to 700,000 cruise visitors, we are the largest cruise destination in the southern part of the Eastern Caribbean. We have set our gaze at becoming one of the top cruise destinations in the Caribbean outright.

Non-Tourism Development

In the energy sector, we have undertaken legislative changes, with more to come, so as to diversify power production. Meanwhile, LUCELEC, our electric utility is seeking to develop a grid-scale solar photovoltaic plant with a capacity of 3 MW (megawatts). We also expect construction of a 12 MW wind plant in Dennery to add to our mix. Further exploratory work will also be undertaken to realise the exploitation of our island’s geothermal resources as we aim for 30 percent of our energy from renewables by 2030. This will realise benefits, particularly for Saint Lucian manufacturing, and companies are keen to make their own investments in renewables, even at a time when we enjoy some of the lowest fuel and electricity prices in the Eastern Caribbean. Also expect to see continued reforms at ensuring that Saint Lucia remains an attractive place for doing business. The opening of a new commercial division of the High Court this year is only the start. We will be working with the World Bank to commence a new round of reforms in 2016. ¤ While there are always challenges, I know we are on the right path and I am optimistic about our future. Come share in our vision of a great Caribbean island, a land of beauty inside and out!

OECSBusinessFocus Mar / May

Invest Saint Lucia (ISL) was established in 1971, as the National Development Corporation (NDC), to promote the economic development of Saint Lucia. The Corporation first functioned as an investment, trade and export promotion agency, providing a range of business oriented services to the public, including attracting foreign investment to Saint Lucia, sourcing technical assistance for business sized enterprises, promoting locally manufactured products through regional and international trade missions and exhibitions, and identifying sites for hotel development. By Act of Parliament #14 of 2014, the Corporation was formally rebranded as Invest Saint Lucia, the official Investment Promotion Agency responsible for stimulating, facilitating and promoting inward investment opportunities for both foreign and local investors. Specifically, its new focused mandate thus reads: 1. Build and promote Saint Lucia’s image as a preferred location for investors; 2. Actively seek out and generate new investments in strategic sectors with high value-added and employment generating potential; 3. Facilitate domestic and foreign direct investment by functioning as a true one stop shop for investors; and 4. Identify major issues and measures geared towards assisting the Government in the ongoing development of a National Investment Policy.

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In carrying out this mandate, ISL is focused on key economic sectors and niches in which Saint Lucia has a competitive advantage. For the time being, the targeted sectors are: tourism, including hotel/resort development, specialty restaurants and entertainment facilities; manufacturing, particularly agroprocessing and light industrials; infrastructure (both hard and soft); and any other economic activity that may be conducive to the economic development of Saint Lucia. Invest Saint Lucia has been entrusted by the Government to expertly and efficiently promote and facilitate potential investors’ access to business development and investment opportunities in Saint Lucia. We thus pledge to always maintain a transparent and responsible approach that upholds the values of professionalism, integrity, adaptability and accountability, as we respond to the needs of existing and potential clients, partners, associates and the wider public. Invest Saint Lucia works with new as well as established investors to encourage and assist in the expansion and development of business ideas. We encourage investments that promote a holistic approach to development, ensuring economic viability, social equity and environmental sustainability. Saint Lucia’s most important resources are its natural beauty, rich biodiversity, economic and technological openness, social and political stability, and the warmth, friendliness and enterprise of its people. Those attributes underpin the value proposition of the island. ¤

www.oecsbusinessfocus.com

Investment never looked better Why Saint Lucia? Citizenship by Investment Programme Strategic geographic location Free and stable economic and political climate Modern and reliable infrastructure and advanced technology Strong history of attracting and protecting investments Free access to OECS labour pool of 300,000 Efficient regulatory environment Protection of intellectual property and patents Rich biodiversity Location of the Future (Site Selection Magazine July 2015) Caribbean Country of the Future (fDi Magazine July 2015)

Our Focus

Infrastructure Development

Niche Tourism

Smart Manufacturing

Ports, bridges, roads and highways Health care facilities Research institutions/facilities Business process outsourcing (BPO) and knowledge process outsourcing (KPO) operations Technology and hospitality training institutions Alternative energy production

High-end branded hotels and boutique properties Health and wellness facilities Specialty restaurants Art galleries Eco lodges and environmental leisure parks Animation centres Convention/conference centres

Agro-processing /dairy production â&#x20AC;&#x2DC;Smart technologyâ&#x20AC;&#x2122; manufacturing Furniture production High fashion Pharmaceutical products Household products Production of packing materials

1 (758) 457 3400 info@investstlucia.com

www.investstlucia.com OECSBusinessFocus Mar / May

Our Services

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Invest Saint Lucia’s dedicated team of qualified professionals with proven international experience, offers comprehensive knowledge of the processes to set up a business; a keen understanding of investor needs; facilitation and professional guidance in helping investors and existing businesses navigate the official approvals process; and a full understanding of the available incentives and resources to foster growth and to expand your business. They are supported by a team of technical service officers who are well placed to assist potential investors explore Invest Saint Lucia’s over 2500 acres of strategic lands which are available for targeted sustainable investment projects. Invest Saint Lucia’s keen team of professionals offer guidance and direction to new and established investors who are interested in pursuing investment opportunities in Saint Lucia. Some of these services include: • •

The provision of general and sector specific information. Facilitation of investor site visits and provision of customized

OECSBusinessFocus Mar / May |

• • • •

information packages. Matching investors with sectorspecific projects. Introducing potential investors to local industry. Business start-up facilitation. Identifying sites for business development. Aftercare Client Support.

ISL owns and manages seven (7) industrial estates, which contain factory shells ranging in size from 4000 to 32,000 square feet and strategically placed throughout the island’s economic hubs. This endowment serves as a critical element of the facilitation process which makes business set-up a bit easier, as these shells are available for lease at attractive rental rates. Further complementing the facilities of Invest Saint Lucia (ISL) is the duty free shopping complex Duty Free Pointe Seraphine, which adjoins the main cruise port. ISL also liaises with private landowners on behalf of investors who are interested in leasing or purchasing land for establishing their enterprises.

Priority Areas for Investment Niche Tourism Saint Lucia is quickly positioning itself as a high end, boutique destination with accommodations and amenities that will propel the destination to even greater visitor spend and lengths of stay. To this end, Saint Lucia provides the perfect platform for similarly focused investors and their businesses to take advantage of the high-end clientele that are quickly viewing Saint Lucia as the destination of choice for a chic and elusive experience. Saint Lucia is open to investment opportunities in: • • • • • • • • • •

High-end branded hotels and resorts High-end boutique properties Yachting marinas & cruise ports Health & wellness facilities Specialty restaurants Art galleries Shopping/elite merchandising Eco lodges and theme parks State of the art entertainment establishments Animation centres

www.oecsbusinessfocus.com

Smart Manufacturing With its central location in the Eastern Caribbean, and as a party to trade agreements within CARICOM and the OECS Economic Union framework with the US, Canada and Europe, Saint Lucia is an ideal place to service both regional and near shore markets of North and Latin America as well as Europe. Saint Lucia’s manufacturing sector over the years has been creating opportunities in diverse areas of manufacturing such as food processing, carbon fiber high-speed boats and green technology innovations. Saint Lucia is open to investment opportunities in: • • •

• • • •

Agro-processing ‘Smart technology’ manufacturing Pharmaceutical and nutraceutical products including use of local biodiversity traditional/herbal medicines High-end furniture High fashion designs Production of household products and light industrial tools & materials Electronic assembly

Infrastructure Returns on infrastructure in a safe and stable jurisdiction like Saint Lucia, offer an attractive proposition for risk averse and capital preserving investors. Saint Lucia’s credentials are strong in this respect as an open and stable economy. Saint Lucia’s growing and resilient economy provides the environment for companies to finance, build, and operate hard and soft infrastructural projects. Saint Lucia is open to investment opportunities in: • • •

Ports, bridges, roads and highways Health care facilities Research institutions

• • • • •

Reputable offshore universities Technology and hospitality training institutions Voice and call centre operations Business process outsourcing (BPO) and knowledge process outsourcing (KPO) operations Alternative energy production

Saint Lucia: an investment location for all the right reasons 1. Strategic geographic location and rated as ‘Location of the Future’ by fDi and Site Selection Magazines (July 2015). 2. Enabling regulatory and legislative environment (No. 1 in the English Speaking Caribbean in the World Bank’s Ease of Doing Business Reports 2009-2013). 3. Economic Freedom Index of 70% in 2016 (Ranks 2nd in South and Central America/Caribbean region). 4. Strong history of attracting foreign international investments. 5. Freedom to repatriate profits and no foreign exchange controls. 6. Modern and efficient telecommunications system. 7. Modern air and sea port facilities including operational free zones. 8. Stable political climate. 9. Stable monetary and financial system, as a leading member of the Eastern Caribbean Currency Union. 10. Reliable electricity supply with ease of connectivity. 11. Focused on renewables. 12. Regional and International market access through trade agreements. 13. Access to qualified and trainable OECS English speaking workforce. 14. Proficient investment facilitation services. 15. Attractive incentive legislation 16. Portfolio of strategic lands and industrial estates. 17. Award winning tourism destination with relative pristine natural environment. 18. Rich Biodiversity. 19. Historical and cultural uniqueness. 20. Warm, friendly and enterprising people. ¤

OECSBusinessFocus Mar / May

Saint Lucia Tourism Investment Successes

Jade Mountain, a five star boutique property of

unparalleled acclaim owned by architect Nick Troubetzkoy, has a bold architectural design – individual bridges leading to exceptional infinity pool sanctuaries and rugged stoned-faced columns reaching towards the sky. This stunning avant garde design makes Jade Mountain Saint Lucia one of the Caribbean’s most mesmerizing resort experiences. Each of the 29 infinity pool sanctuaries at Jade Mountain were carefully designed as individual works of art and architecture. All of the sanctuaries reveal an unparalleled view of the Pitons – Saint Lucia’s world famous twin peaks that rise sheer from the calm Caribbean Sea below. Jade Mountain has received numerous accolades, the most celebrated being the AAA Five Diamond Award in 2009 (the only such awardee in the entire Eastern Caribbean) and the most recent being rated the Top Caribbean Resort in the US Condé Nast Traveler 26th Annual Readers’ Choice Awards for the third year in a row!

OECSBusinessFocus Mar / May |

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Accolades are no stranger to the five star Le Sport BodyHoliday Saint Lucia either. This recently

refurbished all-inclusive resort is unmatched in terms of its facilities, its offerings, service, and cuisine. Its Wellness Centre, which revolves around its signature thalassotherapy treatments, has been voted as one of the best spas in the Caribbean, and one of the top all-inclusive resorts in the world. The Tao restaurant at Le Sport was also voted by Condé Nast as one of the top 60 tables in the world. Based on the four key pillars of relaxation, restorative beauty, exercise and good diet, this all-inclusive Saint Lucian owned resort has been created specifically to ensure that guests leave feeling relaxed, rejuvenated and recharged. Renowned for their treatments, therapies and activities, they offer everything from archery to Scuba, spinning to Pilates, and Ayurvedic treatments to Reiki. Set on a very private cove in the northernmost tip of the island, the BodyHoliday is one of the foremost luxury resorts in Saint Lucia; a very private retreat.

Coconut Bay Beach Resort, another proud addition

to Saint Lucia’s accommodation stock, is situated on 85 acres and it offers two worlds in one along Saint Lucia’s exotic south coast. Harmony is Coconut Bay’s adults-only wing offering the perfect surroundings for a tranquil escape: hammocks, sun decks for two, a quiet pool and bar, the oceanfront Kai Mer Spa, and newly remodeled accommodations. Splash on the other hand, is the resort’s playful wing where the young and young at heart will delight in the CocoLand water-park and Kidz Klub or take pleasure in the thrilling activities offered by Coconut Bay’s exclusive Surf Shack and paintball court. Recent awards include 2015 TripAdvisor Traveler’s Choice Award for Family and 2015 TripAdvisor Hall of Fame Award, which the resort has won five consecutive times.

The five star Windjammer Landing Villa Beach Resort has been a fixture on the Saint Lucia tourism landscape

since 1989. In the last 26 years, the resort has continued to expand to better serve the needs of clients and has received numerous accolades from the international media such as best “Ceremony and Reception Venue” by Wedding Wire and “Investor of the Year” by the St. Lucia Chamber of Commerce. Windjammer in recent times has been expanding and renovating existing units focused on the self-styled “North Pointe”. The objective of the expansion project was to add a world-class spa, a fitness centre and luxury villas. Indeed, from a visit to Windjammer it is clear that this objective was met.

These hotels and many more including the Anse Chastanet Resort, the Ladera Resort, the Landings St. Lucia, Capella Marigot Bay and Cap Maison St Lucia - the site of the final rose ceremony of the well-

known ABC Show “The Bachelor”- are testament to the fact that Saint Lucia is characterized as a high-end, luxury, boutique destination. The tourism product is varied and continues to develop rapidly, offering investors a full range of accommodation, amenities and ancillary services. Saint Lucia is a leading tourism destination and decorated recipient of international awards and accolades for her natural beauty, luxury and romance. ¤

OECSBusinessFocus Mar / May

Saint Lucia Business Process Outsourcing Successes OECSBusinessFocus Mar / May |

Information Communication Technology (ICT) is quickly becoming the foundation that supports the development pillars of the Saint Lucian economy including education, health care and governance. The use of ICT in various sectors within the Saint Lucian economy is encouraging. ICT is used as an enabler within sectors such as tourism, manufacturing, health and finance. Successive Governments have embraced the philosophy that improved and more accessible telecommunications are both a key development indicator and facilitator. A competitive telecommunications sector is essential for the emergence of information and technology services and business opportunities that contribute to the elimination of geographical barriers facing smaller remote communities, thereby promoting deeper integration and inclusive development.

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A noteworthy recent initiative in that vein is the implementation of the Saint Lucian Internet Exchange (SLIX), which ensures that internet traffic generated within Saint Lucia will remain in the country, rather than having to endure lengthy, expensive and sometimes insecure international routes. The SLIX has led to high-speed data transfers, reduced latency, improved routing efficiency, improved bandwidth and reduced third party costs. Currently, all the telecommunications service providers are signed onto the SLIX. In addition to the SLIX, Saint Lucia boasts of other modern ICT features such as GPRS & EDGE capabilities, Metro Ethernet and MPLS services, International Private Leased Circuits (IPLC) and Virtual Private Networks (VPN), which can be leveraged by business process outsourcing (BPO) and knowledge process outsourcing operations (KPO) providers as well as contact centres, which rely heavily on real time operations and adequate bandwidth. Saint Lucia’s ICT sector therefore offers a compelling investment opportunity for BPO and KPO service providers. In the push to develop the ICT sector in Saint Lucia, as well as create more long-term employment, one of the more noticeable efforts is KM² Solutions Saint Lucia. KM² Solutions, a United States corporation, provides services such as customer care, accounts receivable management, customer acquisition and sales, technical support, back office solutions, and loan servicing. The Company operates in the Caribbean and Latin America; specifically in Honduras, Grenada, Barbados, Dominican Republic and Saint Lucia. KM² Solutions meets all industry specific quality, technology, logistical and physical security standards. Every centre is connected to a unified platform for maximum business continuity and redundancy. From a state of the art MPLS network, to PCI compliance and SSAE 16 certification, KM² Solutions ensures safety and security on every project.

SAVE DATE THE

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The Company is housed in one of Invest Saint Lucia’s factory shells located in Union, Castries and currently employs approximately 500 agents who work on a shift basis. Utilizing a shift system allows KM² Solutions to operate a 19-hour day from 6am to 1am, 7 days a week. Some of the company’s clients include LIME, TELUS, and the Denver Post. In addition to KM² Solutions, Ark Teleservices has established a call centre on island. Ark Teleservices is a teleservices corporation based in Hewlett, New York. They provide both inbound and outbound services to large and small companies. The company implements telemarketing programs on a local and national level and manages complete order entry systems. The company commenced operations in January of 2008 and currently has a staff complement of 240 persons. Ark Teleservices has invested time and resources in the training and development of staff in the areas of customer service and computer skills, as it relates to their specific business needs. KM² Solutions and Ark Teleservices are prime examples of Saint Lucia’s emerging location status in the ICT realm, particularly in the BPO sector. As the country further develops its technological infrastructure, it is hoped that additional foreign companies will take advantage of the strategic geographic location, the OECS labour pool of over 300,000 English speaking persons as well as the reliable IT equipment suppliers. ¤

EXPORT

TEPA

OECSBusinessFocus Mar / May

Saint Lucia Manufacturing Successes

Manufacturing enterprises in Saint Lucia produce a range of award-winning products including food and beverages, condiments, corrugated cardboard cartons, handicraft, sporting goods, furniture, metal sheeting, apparel and souvenir items, among others. Agro-processing is a leading component of Saint Lucia’s growing manufactured products, as illustrated by the international competitiveness of its world renowned rums, spices and condiments. Baron Foods Limited, one of the top manufacturers and exporters in Saint Lucia, produces a range of condiments and beverages, which includes exotic sauces, spices and drink cocktails. Several of their products have won international awards in North America and Europe and the company has been named Manufacturer of the Year and Exporter of the year by the St. Lucia Chamber of Commerce for several years in succession. The company began manufacturing in Saint Lucia in 1991 employing only 23 individuals. Today, Baron Foods has grown to just under 200 employees producing more than 150 different products with over 50 % of its production being exported. Baron Foods currently serves markets in the USA, Canada, Europe, Guyana and almost all of the English, French and Dutch speaking Caribbean territories. Viking Traders is another agro processor that has taken advantage of the manufacturing opportunities here in Saint Lucia. Starting in 1979, Viking produces a range of products including spices, sauces, coffee, beverages and other OECSBusinessFocus Mar / May |

condiments. Its nascent coffee product, marketed as Green Gold, has already garnered regional and international accolades and the company continues to expand its offerings of locally produced and exportable products. With Saint Lucia having a committed and easily trainable workforce, companies such as Baron and Viking continue to perform at a consistently high level, attributing their success to their dynamic and vibrant employees. In an effort to grow the sector, the government of Saint Lucia provides attractive concessions under the Fiscal Incentives Act, which includes a Tax Holiday up to a maximum of fifteen (15) years; waiver of import duty on imported plant, machinery and equipment; and waiver of import duty on imported raw and packaging materials. Windward and Leeward Brewery (WLBL), which has been manufacturing Heineken beer and other similar products in Saint Lucia since 1975, states that the concessions received under the incentives legislation was one of the main reasons for moving to Saint Lucia to manufacture Heineken in 1974 when the company was looking to invest in the region. WLBL also took into consideration the level of infrastructure on island; “the facilities provided by the site, the quality of the water in the area and the concessions available under Saint Lucia’s Incentive Legislation, were some of the factors that led to the decision.” The brewery’s capacity at startup was 50,000 hectolitres with a workforce of 60 employees. The company produces 750,000 cases of beer annually including the renowned Piton Beer since the mid -1990s, for sale on the local and OECS markets. Today, the www.oecsbusinessfocus.com

workforce has grown to 114 employees and expanded its market reach beyond the OECS, to Barbados, Belize, Guyana, Anguilla, BVI and Trinidad and Tobago. Apart from agro-processing, opportunities exist in smart technology manufacturing, high-end furniture, high fashion, pharmaceutical products including use of local biodiversity for developing traditional/herbal medicine and nutraceuticals, production of household products and light industrial tools and materials and production of packing materials and electronic assembly. Antillia Brewery Limited is a small craft brewery that took advantage of such an opportunity. In February 2015 the Antillia Brewing Company began operations in Rodney Bay, Saint Lucia to the great joy of local and visiting craft beer lovers. The brainchild of veteran Canadian craft brewers Andrew Hashey and Greg Potten, the small brewery in Rodney Bay features a taproom and patio, designed to introduce locals and visitors to their crafted ales as well as host brewery tours and tastings for day trippers from local resorts and hotels. “When on island, I visited with the folks at Invest Saint Lucia. We were absolutely aware that the region was devoid of choice in the beer category and were curious as to why this was. We figured there must be significant barriers to establishment on the islands. What we discovered through the incredible facilitation of Invest Saint Lucia was the contrary,” stated Hashey. Specializing in traditional UK styles designed for the climate, Antillia has found incredible success in using local agricultural products to design their Lucian Specialty Series. “This island is a brewer’s paradise…the variety of fresh local products that we can experiment with is incredible. We try to incorporate products with cultural significance out of respect for our local market and to generate interest amongst Lucians,” states Hashey. In November, with the assistance of the Trade Export and Promotion Agency (TEPA), Hashey took samples of his Antillia Ales to the Caribbean Rum & Beer Festival in St. Maarten. They walked away as big winners, capturing 2 gold medals (Golden Wheat Ale and Chocolate Stout) and 2 bronze (Traditional Stout and Passionfruit Wheat). Antillia took home four of nine medals awarded by the judges, no surprise for Hashey, as the experience and pedigree of 20 years of brewing in Canada was being applied at Antillia’s Saint Lucia facility. Antillia is a real example of the realisation that there are certain products that are unique to the true Saint Lucian experience for which there is a global demand. There are new and emerging industries that offer substantial potential for growth and investment in the manufacturing sector. Whether you are a large or small manufacturer, a producer of niche or mass products, or an assembly house, there is an opportunity for you in Saint Lucia. A pertinent example of a unique Saint Lucian product is the manufacturing of teas. There are a variety of teas indigenous to Saint Lucia, which can be exported abroad. The Manufacturing Sector in Saint Lucia is strengthened by a supportive fiscal framework, a reliable electricity supply, an experienced workforce, strong exporting history and the support of a number of private sector and government agencies including the Ministry of Commerce, Business Development, Investment and Consumer Affairs, TEPA, The Saint Lucia Bureau of Standards, the Saint Lucia Chamber of Commerce, and The Saint Lucia Manufacturers Association. ¤ OECSBusinessFocus Mar / May

Investor Testimonials “The advantage of operating in Saint Lucia is tremendous. For us, the human capital would probably be the biggest asset; the people are very easy to deal with, very friendly; the business support that we enjoy from the government and the business sector is tremendous … we’ve had 23 wonderful years here, the business and political climate is very stable so I’m sure you’ll get good returns on your investment.” ¤ Andre Dhanpaul, Regional Director, Sandals Resorts International

We’ve had a good working relationship in Saint Lucia. It’s welcoming, there are incentives to do business and for a telecoms company, that’s important … we have a good relationship in terms of policy regulators and even the Government; we have great skill set and access to trained employees, that’s definitely something any investor looks out for and any investor who’s looking to grow and invest, a Saint Lucian market is absolutely perfect ...” ¤ Siobhan James-Alexander, Country Manager Digicel

“One of the things that has been quite impressive and I’m particularly pleased with is the ease and accessibility of support from Invest Saint Lucia and the Government of Saint Lucia … the ease at which they coordinate their activities with us is quite pleasing and has made things an awful lot easier for us as we look forward to developing the Marina further.” ¤ Paul Ash, General Manager, IGY Rodney Bay Marina

“Our experience in setting up on the island has been fabulous … pioneering a new market is not easy but with the help of the government and Invest Saint Lucia in particular, it’s been fantastic. I would say to anybody looking to come to Saint Lucia, to contact Invest Saint Lucia, get an officer involved, they will do everything to investigate your opportunity and make the process as seamless and as painless as possible.” ¤ Andrew Hashey, Owner/Managing Director, Antillia Brewing Company OECSBusinessFocus Mar / May |

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The Saint Lucia Team L-R: Louis Lewis, Lorine Charles-St. Jules, Hon. Lorne Theophilus, Tracey Warner-Arnold

Saint Lucia The Award Winning Destination

Where Tourism Leads the Economic Revolution

The business of Sand, Sea and Sun is, atypically, no tranquil undertaking but the team at the Saint Lucia Tourist board has adapted a strategy that employs innovation and original thinking – cornerstones to the revolution in Saint Lucia’s tourism product recorded over the past few years.

On that front, Saint Lucia has developed a masterful approach to promotion, which has appealed to markets previously unknown to the island. This is a reflection of a year-round approach with almost themed quarters serving as footstools for destination seekers and travel agents.

In a sit-down with Business Focus OECS, Director of the Saint Lucia Tourist Board Mr. Louis Lewis placed innovation at the first floor of the empirical growth of the island’s diverse tourism product.

In outlining some of the island’s amazing growth statistics, Lewis said Saint Lucia’s overall visitor arrivals has skyrocketed by almost 30% in the last decade, with cruise ship arrivals standing at an all-time high with more than 600,000 visitors in 2015 alone.

Lewis is armed with a $40 million purse annually and with it he has employed a number of diverse strategies that have literally resulted in the amplified growth of Saint Lucia as a tourism destination.

Going forward, the Director said, his office would be adding a three-tier approach to the foundation of innovation and excellence that has already been set.

The Caribbean is fast becoming the go-to place for events of almost any kind with global icons emerging from its shores and shining the light of focus on the destinations individually and collectively. Saint Lucia has without a doubt produced its own icons in the likes of Nina Compton for culinary excellence and Levern Spencer and Darren Sammy in the arena of sports. It is avenues like these that have peaked some of the interests of innovation and diversity in the island’s tourism product, and Lewis says the continued exploitation of these avenues will certainly be explored. OECSBusinessFocus Mar / May |

These include the further amplification of the island in the Caribbean destination market place. This first tier is being achieved through the promotion of the island as matchless in the niche market arena and one that offers an inimitable experience, capitalised around its landscape, warmth and hospitality. “Someone who has made a decision to take a holiday is looking for an experience and we are presenting an experience that is different,” Lewis said.

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He continues to bank his dollar on the much admired culture and heritage of his people, which in it-self, is an outstanding feat. The island’s topography is another outstanding avenue that provides a perfect mix of adventure, tranquillity and scenery. “We are adding to the marketplace’s perception of what they are looking for in a vacation experience. We have a variety of all those aspects…good beaches, attractive and tropical, yet we can give them a rainforest experience, kayaking, diving, weddings and honeymoons,” Lewis said. Next in the line of the three-tier approach is the fortification of existing relationships with key travel partners and airlines in North America and Europe, and further develop new relationships to ultimately create total hassle-free access with limited connections to the destination. Ease of access to a destination is a key factor for visitors and Lewis says this fact remains one that commands the full attention of his office.

The Saint Lucia Tourist Board awarded Destination Partner of the Year by Classic Vacations for 2015

“We have negotiated with the airlines in areas where we have strong pockets of visitor arrivals to the destination, in Canada and United States, to provide a direct air service to Saint Lucia.” Completing the tier will serve to further solidify the platform set by the initial two through magnified marketing of the destination and the further climb of stay-over visitor numbers. This aspect will weigh to a considerable extent on the Tourist Board’s impressive relationship with the island’s hotels – most of which have sustained aggressive and successful marketing strategies of their own. Saint Lucia boasts a range of six and five star hotel chains like Sandals Resorts International and also has a considerable complement of award-winning resorts and guest houses and bed and breakfast properties that appeal to an array of visitors and budgets. “As a Tourist Board all we sell is an impression of the destination, but a final sale requires a place of stay and an airline ticket. Once we excite someone’s curiosity, the next question they ask is, how do I get here? Where do I stay? That’s where our partners come into play,” Lewis said. On top of this, Lewis announced that the Saint Lucia Tourist Board is actively exploring new initiatives to increase the accommodation stock on island. Already this year, over 700 new rooms are anticipated to be complete. These include the 550-room Royalton Luxury Resorts in Cap Estate; the 115-room Harbor Club in Rodney Bay, and an additional 100 rooms at the Papillon Hotel. Tourism continues to be a considerable driver of the Saint Lucia economy, accounting for at least 12 per cent of its GDP. “A few years ago we facilitated a study by the Oxford Research Group in the UK to measure the impact of tourism on all sectors of the economy. The extent to which your utility services depends on a viable tourism industry, water, agriculture, sales to the hotel plants…When we took all those components into consideration we found out that 64 per cent of Saint Lucia’s GDP was accounted for by tourism,” the island’s Tourism Director asserted. ¤ OECSBusinessFocus Mar / May

New Developments to Add over 700 Rooms on Saint Lucia Island Tourism Poised for More Growth in 2016 OECSBusinessFocus Mar / May |

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Saint Lucia tourism officials are preparing to welcome over 700 new hotel rooms to the island’s accommodations in 2016, along with a new marketing campaign and push for new island investment. Rex resorts has re-opened the 110 room Papillon Hotel after completing extensive renovations as an all-inclusive four-star property in February 2016 with Air Canada Vacations as the exclusive tour operator out of Canada. The Papillon Hotel is located adjacent to the St. Lucian and Royal by rex resorts hotels on Reduit Beach near Rodney Bay. Also set to open this year, the Harbor Club on the Rodney Bay Marina will feature 115 four-star accommodations with a number of amenities that include two restaurants, lounges, a full-service spa, gym, pool recreational concept and 4,000 square feet of meeting and conference space. Adjacent to the Harbor Club is the recently completed Dive Saint Lucia, one of the premier scuba diving centers in the Eastern Caribbean featuring state of the art facilities at the complex just south of the Rodney Bay Marina. In late 2016, Royalton Luxury Resorts will add to its rapidly expanding portfolio of vacation experiences with the upscale Royalton Saint Lucia near Cap Estate. The elegant resort features 361 luxurious rooms, eight restaurants and six bars, world class spa, onsite splash park, conference space and an exclusive 94-suite, adults-only hotel within a resort called Hideaway. “This overdue hotel boom adds much-needed inventory to meet the demands of our key source markets” said Louis Lewis, Director of Tourism. “Tourism growth is a priority, and Invest Saint Lucia and the newly opened Saint Lucia’s Citizenship by Investment Office will continue to seek new investment and development for the island.” Lewis reported that the U.S., the island’s leading market with more than 44 percent of arrivals in 2015, realized a seven percent growth in visitors compared to 2014. Saint Lucia saw six record-breaking months in 2015 - January, February, March, April, June and October – for a total of nearly 345,000 visitors for the year and an overall increase in stay-over arrivals of two percent, following a six percent rise in arrivals in 2014. “Partnership is key to the continued success of Saint Lucia’s marketing efforts,” said Lewis. “We work closely with our hotel and product partners, travel agent partners, tour operators and airlines, to harness ideas and resources for the benefit of the overall destination.” He added that the Saint Lucia Tourist Board will unveil a new marketing campaign in the second half of 2016 with plans to refresh the brand with new collateral and photography. Saint Lucia was recognized as “Best Honeymoon Island in the World,” one of the “Top 20 Islands in the World,” and one of the “Most Romantic Islands in the World” by the Condé Nast Traveler 2015 Readers’ Choice Awards. Six of the island’s resorts were also distinguished as “Top 40 Resorts in the Caribbean” by Condé Nast Traveler readers. The growing reputation of the diverse hotels, and the island of Saint Lucia as a sought-after destination was further strengthened by the more than 50 awards and accolades received by resorts across the island, including recognition from Travel & Leisure’s World’s Best List and Condé Nast Traveler’s Gold List to the coveted “Caribbean’s Leading Honeymoon Destination” by World Travel Awards. ¤ OECSBusinessFocus Mar / May

Saint Lucia Delivers A Perfect Marriage Between the Arts and Entertainment Capitalising on the Saint Lucia Jazz and Arts Festival OECSBusinessFocus Mar / May |

The business of events and destinations are becoming almost intricately linked the world over and Saint Lucia has positioned itself amply in the limelight to capture not only the imaginations of event destination seekers, but the island has also been able to build a reputation for sinking its own foot prints in the sands of event paradise. And keeping perfectly aligned with its record of exceptional growth across the tourism sector, the Saint Lucia Tourist Board continues to aggressively explore this avenue as an area of growth to complement the islandâ&#x20AC;&#x2122;s overall tourism exploits. With this in mind, the island has managed to created a faultless marriage between the arts and entertainment and the Tourist Board is so committed to, and confident of, the avenue of event marketing and growth, that it has allotted oneâ&#x20AC;&#x201C;third of its total budget to the cause. This allows for special events to play an essential role in not only stimulating the destination but also strengthening its visibility in areas previously underexplored. Topping the charts of Saint Luciaâ&#x20AC;&#x2122;s events calendar is undoubtedly its Jazz Festival, recently renamed the Saint Lucia Jazz and Arts Festival, which has for the past 25-years constantly raised the bar for production, innovation and regional tourism standards. The festival has recorded significant growth with thousands of visitors flocking to the island annually for an array of activities, from live jazz and other performances, to now poetry and fashion. Leading the charge in this area is Dahlia Guard, who has for the past three years re-energized the festival not only in the area of marketing but also in eyes of Saint Lucians with renewed national pride, and across the Caribbean with diversity in entertainment and arts. www.oecsbusinessfocus.com

Guard, the Special Events Manager at the Saint Lucia Tourist Board is equally as eager to carry forward this charge in 2016 as she was at the beginning of her tenure in 2013. This year more than before, the festival will include more stand alone arts events that have not been seen since its rebranding – all part of the continued process of diversification and exploration of new avenues of event management and presentation. A part of Saint Lucia’s most renowned history is its production of two Nobel Prize winners in Economics and Literature in the likes of Sir Arthur Lewis and Sir Derek Walcott, respectively. And for the first time, the Festival has sought to capitalize on the contributions of this outstanding achievement by including events like the play ‘Omeros’ featuring the literary genius of Sir Derek Walcott. This will be complemented with a tribute to Virginia Alexander – known for her tremendous contribution to the promotion of arts and culture in Saint Lucia. And though not honoured with a Nobel Prize, Alexander is recognized in the island as a Laureate in her own right. “We are going big with visual arts as well with paintings, sculptures, fashion and the spoken word. There will even be an Arts Village,” declared the Tourist Board’s Events Director during her brief discussions with Business Focus OECS. She pointed out that patrons to the Festival both locally and from outside of Saint Lucia have expressed the desire for more diversity in arts and culture to be added to the list of activities and this request has been honoured. The outstanding track record of the Saint Lucia Jazz and Arts Festival is global knowledge with stupendous performances on its stages delivered by a variety of outstanding artistes including UB-40, Kenny G, Trey Songz, Earth Wind and Fire, and Robin Thicke. For 2016, the entertainment will marry an increased focus on the arts when the likes of Mark Anthony, Kool and the Gang, Shaggy and Omi graces the Pigeon Island stage between April 29 and May 8. “No one year is equal or similar to the last,” Guard said. “There are always things that will wow you and it is never solely about the artists. We always try to exceed the expectations of our patrons – a considerable number of whom visit from the USA, Martinique and Trinidad. For them it is also about the food, the culinary experience, what happened on the airport, Jazz on the Square and all of the fringe activities come together.” Among the other events almost uniquely Saint Lucian include the island’s Wedding Symposium in August and the 26-year sailing of the Atlantic Rally for Cruisers in November-January, where up to 3,000 yachtees sail from Las Palmas to Saint Lucia in what is known as the largest transatlantic rally. Guard and her Special Events department, support the Saint Lucia Tourist Board’s Marketing Department with these events, adding a new dimension to the event experience. ¤ OECSBusinessFocus Mar / May

Technology has shattered physical barriers. You can be in Castries, Saint Lucia and attend a meeting in Warsaw, Poland as long as you have an internet enabled device. It goes much further than that though. Your shoe enterprise can be based in the United Kingdom but your shoe manufacturing plant is in Namibia. You can be living in Argentina and earn your degree via distance learning from a university in Germany. Globalisation is not just a theory anymore. It is the reality in which we live. Mobile devices in our world exist for more than just entertainment. Cyberspace is the new boardroom. Issues in territories miles away are brought to us in real time. The results of attitudes and practices are spread wide with a click of a button. The ripple effects of any event reach far and wide in an indelibly short space of time. It is for this reason we are all called on to be global citizens. A global citizen has several responsibilities: moral, ethical, political and economic. Among these responsibilities; a global citizen must respect cultural diversification, make connections and build relationships with people from other countries, understand the ways in which peoples of the world are inter-connected and inter-dependent, and understand and respond to global issues.

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Inviting Global Citizens to Be Saint Lucian

OECSBusinessFocus Mar / May |

The Citizenship by Investment Programme (CIP) allows Saint Lucia to invite a select few to revel in its majesty. More importantly, the CIP is seeking responsible global citizens who are genuinely interested in investing in the island and its people in exchange for a tangible, valuable asset of an alternative citizenship. In keeping with the reverence which must be afforded to citizenship of any nation, the application and the due diligence processes are designed to ensure that global citizens are properly and thoroughly vetted before being granted Saint Lucian citizenship. Saint Lucia offers all the tropical and cultural benefits of the Caribbean region while being authentic and exclusive. The island can boast of the individual accomplishments of its people and its inherent successes. It is for this reason that Prime Minister Anthony said “We have always dedicated ourselves to shaping the world because we believe we can make a difference to world civilization. Similarly, we expect that when we offer citizenship, we want our new citizens to enrich our Saint Lucia, enhance our global standing and ensure that our proud heritage endures.” Saint Lucia is a speck on the map compared to continents like North America, Asia and Africa. In fact, our land mass is not even discernible on some maps. Despite our physical size, Saint Lucia’s triumphs and personality rival any other country in the world. We are the Helen of the West Indies – vivacious, charming, regal and tempting. We can be jealous guardians of our patrimony and will not allow it to fall into disreputable hands even as we open up our shores to citizens of the globe. ¤ www.oecsbusinessfocus.com

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OECSBusinessFocus Mar / May

Reaching Beyond the Traditional Approaches To say Saint Lucia’s newly launched Citizenship by Investment Programme (CIP Saint Lucia) is causing a buzz would be an understatement. Since the idea surfaced and a specialized task force was assigned to explore the possibilities of such a programme, voices from all spheres of society began to weigh in. The loudest cry came from Joe Public asking “What’s in it for me?” Before we dive into the answer to that question, let us first define the CIP. Saint Lucia first announced the newest and the most elite Citizenship by Investment Programme in the Caribbean in October 2015 at the Global Citizens Forum in Monaco. In order to be considered for citizenship, applicants must have a minimum net worth of US$3 million, be of exceptional character, hold no criminal record and be in excellent health. Additionally, the applicant must choose one of four investment options: contributing a minimum of US$200, 000 to the island’s National Economic Fund; invest in an approved real estate project at a minimum of US$300, 000; invest a minimum of US$3.5 million in an approved enterprise and guarantee a minimum number of permanent jobs created; or invest a minimum of US$500, 000 in non-interest bearing Government Bonds which will be held for five years. According to Saint Lucia’s Prime Minister Hon. Dr. Kenny D. Anthony, “I have come, in the vein of a practical and pragmatic leader, to accept that the world is changing. The institutional insensitivities which so often pervade international discussion on development prove that the requirements and resources needed to achieve economic growth and equitable development will OECSBusinessFocus Mar / May |

not be forthcoming. We need to think beyond the traditional approaches, outside the prescriptive menus, to deal with our problems.” Every applicant granted citizenship by investment will be contributing to the development of Saint Lucia in one form or another. Government bonds are a debt security issued to support government spending. Investing in this option allows the Government of Saint Lucia to borrow monies for projects to address pressing issues facing the populace at several socioeconomic echelons as the island strives to ensure the safety, security, happiness and prosperity of its people. This can range from social safety net programmes to alleviate poverty to renewable energy options to mitigate the effects of climate change. The enterprise option is dedicated to sustainable areas for the island’s development. The approved areas of enterprise are specialty restaurants, cruise ports and marina, agro-processing plants, pharmaceutical products, ports, bridges, roads and highways, research institutions and facilities and off-shore universities. According to the stipulations, the investor must create at least three permanent jobs in a chosen area. The CIP can provide the means for the people of Saint Lucia to enjoy a better quality of life in this new globalised age. Saint Lucia will be able to maintain its competitiveness in the world market and its citizens, both existing and new, will be able to benefit from sustained progress in critical developmental areas. ¤ www.oecsbusinessfocus.com

The Role of the Unit Saint Lucia is limited in the natural and financial resources it can harvest to profit the economy. Its largest resource is its people and to invest in the people is a long and complicated process with a multiplicity of rewards at the end of it all. The funds required for this investment has to be sought externally. As such, the Government of Saint Lucia has established several agencies to attract foreign income to the island. The Citizenship by Investment Unit serves to strengthen the existing official investment structures. It does not duplicate any existing service offered by any government department or agency. The Unit provides alternative financing for approved investments into the country. All investment proposals coming from prospective developers to the Citizenship by Investment Unit must be approved by Invest Saint Lucia. Invest Saint Lucia manages the investment portfolio of Saint Lucia. It ensures that all investments fit into the wider investment framework of the country. This means that the real estate and enterprise options for the CIP are based on recommendations from Invest Saint Lucia. Additionally, Invest Saint Lucia and the Citizenship by Investment Unit review the applicant’s investment proposal to ensure that it fits into the broader national vision of Saint Lucia. The Citizenship by Investment Unit deals only with granting citizenship based on an investment criteria. The Ministry of Legal Affairs, Home Affairs and National Security deals with all other

categories of citizenship: naturalization, marriage, descent and those left to the discretion of the Minister. Persons who would like to be considered for citizenship must apply to the Ministry and meet the requirements outlined by the existing legislation. Several agencies promote Saint Lucia as a destination. What is critical to understand is which demographic each one targets. The Citizenship by Investment Unit promotes Saint Lucia as a destination to live – to make a second home. Invest Saint Lucia promotes the island as a destination for investors – it’s solely about enterprise. The Saint Lucia Tourist Board promotes the island as an ideal destination to visit, vacation and relax. As expected, each of these three agencies attracts funding for the island in different ways. The Citizenship by Investment Unit is concerned with direct funding to Saint Lucia using donations and the purchase of Government bonds. In contrast, Invest Saint Lucia acts as a source of indirect funding through investment. It provides guidance and advice for investors. The Saint Lucia Tourist Board is another indirect source of funding for the island. It attracts visitors which in turn boosts the various aspects of the tourism industry. The Citizenship by Investment Unit works as part of a well-oiled machinery designed to facilitate economic stability and social prosperity for Saint Lucia. ¤ OECSBusinessFocus Mar / May

Due An Diligence: Imperative • • •

• • • • • • • •

Must be at least 18 years of age Have a net worth of at least US$3, 000, 000 Satisfy a minimum qualifying investment in one of four categories – Saint Lucia National Economic Fund; approved real estate project; approved enterprise project; or Government Bonds Pass a diligence background check. Spouses and dependents over the age of 16 years must also pass a diligence background check Must provide full and frank disclosure on all matters pertaining to the application Pay the requisite non-refundable processing fee, due diligence and administrative fees upon application The principal applicant must not: Have been convicted of a criminal offense except a minor traffic offence Have been denied any category of visa to a country to which Saint Lucia has free visa access and been unsuccessful in subsequently obtaining that visa Have been declared bankrupt by a court Have been declared by a court or qualified health practitioner to be mentally incapacitated.

The Citizenship by Investment Board will consider an application for citizenship and the outcome may either be to grant, to deny or to delay for cause. It is a guarantee that any applicant who is above the age of 16 and who has failed a due diligence background check will be denied.

The priority of any government is the protection and sustainability of its people and its territory. Saint Lucia’s Citizenship by Investment Programme (CIP) is committed to up keeping the principles of sovereignty while simultaneously facilitating the development of the island through direct foreign investment. Prime Minister of Saint Lucia Hon. Dr. Kenny D. Anthony said “We have taken considerable time to study the industry – its characteristics, its pitfalls, the criticisms, the praises, the errors made – and to ensure that we learnt best from those that went before us.” Those best practices shaped the application and approval processes used in the Citizenship by Investment Unit. As stated in the Citizenship by Investment Act No. 14 of 2015 and the Citizenship by Investment Regulations No. 89 of 2015, all applications must be submitted through an authorized agent. The following are the requirements for a principal applicant:

OECSBusinessFocus Mar / May |

Due diligence background checks explore every aspect of an applicant’s history. The check will focus on information that has been disclosed on the application to include whether or not the person has ties to high-risk geographical areas or industries; whether or not the person’s source of wealth is legitimate and verifiable; and whether or not the person is politically exposed or has ties to a politically exposed person. In addition, the due diligence background check explores areas that are not disclosed on the application to include, but not limited to, negative news on the individual; litigation against the individual; and negative news on known and undisclosed business entities and associates. It is safe to say that every effort is being made by the Citizenship by Investment Unit to vet every individual over the age of 16 who applies to become a citizen of Saint Lucia. In the exceptional circumstances where an individual is granted citizenship by omitting or falsifying critical information, the Minister may, by order, revoke a grant of citizenship. ¤

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Four Platforms, One Exquisite Programme National Economic Fund Saint Lucia National Economic Fund is a special fund established under Section 33 of the Citizenship by Investment Act for the sole purpose of receiving qualifying investments of cash for funding government sponsored projects. The Minister for Finance is required each financial year to gain approval from Parliament for allocation of funds for specified purposes. Once an application for citizenship by means of an investment in the Saint Lucia National Economic Fund has been approved, the following minimum investment is required: • • • •

Applicant applying alone: US$200,000 Applicant applying with spouse: US$235,000 Applicant applying with spouse and up to two (2) other qualifying dependants: US$250,000 Each additional qualifying dependant, of any age: US$25,000

Real Estate Investment The Cabinet of Ministers will consider real estate projects to be included on the approved list for the Citizenship by Investment Programme. Approved real estate projects fall into two broad categories: 1. High-end branded hotels and resorts 2. High-end boutique properties

Once approved, the real estate project becomes available for qualifying investments from applicants for citizenship by investment. The applicant is required to execute a binding purchase and sales agreement for an investment in an approved real estate project. Investments, equaling the agreed purchase price, are deposited in an approved irrevocable escrow account managed jointly by the developer and the Citizenship by Investment Unit in Saint Lucia. Once an application for citizenship by means of an investment in a real estate project has been approved, the following minimum investment is required: •

Main Applicant: US$300,000

Enterprise Investment The Cabinet of Ministers will consider enterprise projects to be included on the approved list for the Citizenship by Investment Programme. Approved enterprise projects fall into seven broad categories: 1. 2. 3. 4. 5. 6. 7.

Specialty Restaurants Cruise ports and marinas Agro-processing plants Pharmaceutical products Ports, bridges, roads and highways Research institutions and facilities Offshore universities

Once an application for citizenship by means of an investment in an approved enterprise project has been approved, the following minimum investment is required: Option 1 – A sole applicant. •

A minimum investment of US$3,500,000

Option 2 – More than one applicant (joint venture). •

A minimum investment of US$ 6,000,000 with each applicant contributing no less than US$1,000,000

Government Bonds Citizenship by investment may be made through the purchase of non-interestbearing Government bonds. These bonds must be registered and remain in the name of the applicant for a five year holding period from the date of first issue and not attract a rate of interest. Once an application for citizenship by means of an investment in government bonds has been approved, the following minimum investment is required: • • • •

Applicant applying alone: US$500,000 Applicant applying with spouse: US$535,000 Applicant applying with spouse and up to two (2) other qualifying dependants: US$550,000 Each additional qualifying dependant: US$25,000 ¤

OECSBusinessFocus Mar / May

Frequently Asked

Questions Q: Can any foreign investor be considered for citizenship under the Citizenship by Investment Programme? A: In order to be considered for citizenship, applicants must have a minimum net worth of US$3 million, be of exceptional character, hold no criminal record and be in excellent health. Additionally, the applicant must fulfill one of four investment options: contributing a minimum of US$200, 000 to the island’s National Economic Fund; invest in an approved real estate project at a minimum of US$300, 000; invest a minimum of US$3.5 million in an approved enterprise and guarantee a minimum number of jobs created; or invest a minimum of US$500, 000 in Government Bonds which will be held for five years. Q: What is a global citizen? A: A global citizen has several responsibilities: moral, ethical, political and economic. Among these responsibilities, a global citizen must respect cultural diversification; make connections and build relationships with people from other countries; understand the ways in which peoples of the world are inter-connected and inter-dependent; and understand and respond to global issues.

OECSBusinessFocus Mar / May |

Q: Can an investor with a criminal record be granted citizenship? A: According to the legislation which establishes the CIP, the principal applicant must not: • •

• •

Have been convicted of a criminal offense except a minor traffic offense Have been denied any category of visa to a country to which Saint Lucia has free visa access and been unsuccessful in subsequently obtaining that visa Have been declared bankrupt by a court Have been declared by a court or qualified health practitioner to be mentally incapacitated.

Q: Is there a limit to the number of applicants considered? A: The Citizenship by Investment Unit will only consider five hundred applicants annually. Q: Can citizenship granted under the programme be revoked? A: Yes. The Minister may, by order, revoke a grant of citizenship in exceptional circumstances. Q: Can an investor’s application be fast tracked?

A: There is no accelerated processing of applications. Every application received by the Citizenship by Investment Unit will be processed in the order it is received and will go through the due process as established by law. Q: What becomes of the money deposited into the Saint Lucia National Economic Fund? A: The Minister for Finance is required each financial year to gain approval from Parliament for allocation of funds for specified purposes. Q: Can someone who is refused citizenship by investment reapply? A: An applicant can appeal the denial of their application if they feel that there are good grounds to do so. The Authorised Agent can advise the applicant on how to make an appeal. Whether or not the applicant can reapply if their application has been denied depends on the reason for the denial. Q: What rights does a citizen who has been granted citizenship by way of an investment have? A: All citizens of Saint share the same rights and responsibilities. The new citizens are expected to be governed by the same laws and regulations that govern all of Saint Lucia. ¤ www.oecsbusinessfocus.com

Pointe Seraphine, P.O. Box 195, Castries, St. Lucia Tel: 1 (758) 456-2600

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OECSBusinessFocus Mar / May

The Modernization of the Air and Sea Ports as a Prerequisite for Economic Expansion

Hewanorra International Airport

The Saint Lucia Air and Sea Ports Authority (SLASPA) was established by an Act of Parliament in 1983 and is responsible for the management and development of the island’s two principal seaports - Castries and Vieux Fort – and the George FL Charles and Hewanorra International Airports, as well as the smaller points of entry which include Soufriere, Marigot and Rodney Bay Marinas. SLASPA handles approximately 600,000 tonnes of cargo, facilitates over 800,000 travellers, safely lands 40,000 aircraft and berths over 1000 vessels per year. Given the national significance of SLASPA, a key focus of the organisation is to ensure the island’s ports of entry are efficiently managed. The Authority has therefore invested heavily in service delivery over the past few years. Such investments include: • • • • • •

The modernization of key operational functions in support of operational efficiencies; Procurement of additional cargo handling equipment; Upgrading of passenger facilities at the airports and ferry terminal to improve comfort; Reconfiguration of the cargo shed to improve speed of delivery; Development of a port education campaign to empower customers and the wider public with information about Saint Lucia’s ports and; Most importantly, employee development which was focused on training in a number of areas which includes customer service.

OECSBusinessFocus Mar / May |

SLASPA Commences Seaport Operational Restructuring Our island’s seaports since the early eighteenth century have played a vital role in the development of Saint Lucia, facilitating trade in various commodities from coal to sugar cane and more recently bananas. Currently, seaports are in a phase of farreaching structural change, where increasing globalization of the economy has led to growing international trade volume and a corresponding necessity to build infrastructure to meet these demands. Today, Port Castries is a bustling multi-purpose port catering to hundreds of thousands of cruise passengers annually, as well as handling cargo from around the world. The Saint Lucia Air and Sea Ports Authority (SLASPA) is currently operating in an era of rapidly increasing trade opportunities and heightened competition, which has created an environment which necessitates an organisation with modern infrastructure, a well-trained, motivated workforce and operations which embrace the needs of today’s consumers all in support of fostering greater productivity and market relevance. The Castries Seaport has witnessed the advent of containerized cargo and increased reliance on the tourism industry and the introduction of mega cruise vessels over the past decade. In both the cargo and cruise industries, the positive correlation between high quality service, advanced infrastructure and continued economic viability is most apparent. The Authority’s strategic pillars speak to an organization focused on Business Development, Customer Centricity and Operational www.oecsbusinessfocus.com

Efficiency. In so doing, our strategic intent not only points to operational efficiencies, cost reduction and institutional strengthening, but also takes into consideration ensuring full understanding and appreciation of who our customers are, their needs and how we can better respond to those needs. Restructuring of the port is currently governed by an adjustment of port infrastructures to the changed requirements of the industry’s users. For example, due to the age of the world’s fleet of container ships - many ships are more than twenty years old - it is to be expected that many new ships will be commissioned in the foreseeable future. These will chiefly be ships with capacities of 3,000 to 4,500 TEU drawing 13.5 metres maximum. So-called third and fourth generation container ships will increasingly become standard ships used in the container transport of the future and our ports must be adequately able to accommodate them. SLASPA’s vision entails continuously improving the service offered to the many stakeholders utilizing our ports, by ensuring the provision of services which promote convenience to customers within a framework of flexible hours; capital investment in equipment and facilities in support of service availability and development and implementation of processes which positively impact the current level of operational efficiencies at the seaport.

environment that functions effectively and at the convenience of port users. The main purpose of this initiative is to offer a convenient service and improve the customer experience at the seaport to shipping lines, truckers, consignees and by extension the end customer. Consultations with stakeholders have already commenced in support of developing a model which is mutually beneficial to the parties involved. This serves as an excellent opportunity to foster strategic progression that will redound to our mutual benefit. Research has proven that a 24-hour port operation lends to improving the movement of goods. This initiative would allow for more optimal use of resources at the port, as long as there is cooperation from businesses along the supply chain. It also promotes reductions in wait times, a key factor for port users. Additionally, the introduction of a revised stevedoring labour regime offered through private labour companies, will encourage the provision of quality services in a competitive seaport environment, moving away from an archaic structure of uncompetitive labour rates and unproductive man-hours. The stevedoring initiative at Port Castries is only Phase 1 of a three phase project that has been conceptualised to lessen SLASPA’s liability exposure by reducing the inherent risks associated with our cargo handling operations and introduce more competitive labour cost for stevedoring operations. The services most frequently requested by our customers during overtime hours (4:30 pm onwards) include navigational services to ships and handling services to cargo which include the subsystems of ship operations, transfer operations and yard operations. The risks associated with inadequately rested staff include but are not limited to increased vulnerability to depression, increased risk of heart disease, increased levels of worker fatigue and higher occurrence of accidents and/or close calls.

Port Vieux Fort Seaports worldwide are in a phase of far-reaching structural change. One of the major components of restructuring seaport operations in Saint Lucia, is the eventual operation of a 24-hour seaport, which has a unique advantage, allowing round-the-clock passenger and cargo facilitation. The end result of this strategic repositioning is a reduction in operational costs and by extension handling cost and the integration of seaport services/systems with other components within the existing framework. Globally, countries wishing to remain relevant and increase productivity, have transformed their port environment to that of a 24-hour operation as this is a significant catalyst to trade facilitation, which has in the last few decades become a major discussion in most economic forums. Considering the aforementioned, naturally as we progress SLASPA beyond 2015, the strategic intent of moving away from the traditional inconvenient operating hours to a more flexible, relevant operation is at the forefront of management’s vision. Through meaningful collaboration, SLASPA intends to work with seaport stakeholders to eliminate impediments, increase efficiencies, improve productivity and ultimately create a port

In order to pattern our operations in line with established industry norms, realize our efficiency benchmarks and effectively manage the safety requirements of our operations SLASPA is proposing the revision of normal working hours of key port operations and the introduction of a flexible work system for employees of the Operations and Engineering Departments. The newly proposed hours, include Shift A – 8:00 am to 4:00 pm, Shift B – 4:00 pm to Midnight and Shift C - Midnight to 8:00 am (Roving Shift). The implementation of a flexible work system, within redefined normal working hours, will have huge positive impact on port employees as well as external stakeholders including optimization of labour and equipment, reduction in the turnaround time of vessels, faster clearance of containerized and warehoused cargo, increased transhipment opportunities and reduced cost of doing business at the port. The cruise product has also diversified. Throughout its history the industry has responded to the vacation desires of its guests and embraced innovation to offer new destinations as part of itineraries. Some cruise lines such as Crystal Cruises, Seabourn and Silversea Cruises, have embraced overnight stays. The positive impacts cruise travel has for both passengers and the local economy of cruise destinations is undeniable. The influx of ships generates millions of dollars for our economy in terms of wages, while the money passengers spend onshore provides OECSBusinessFocus Mar / May

an additional income for local businesses and Government. Traditionally, cruise lines have offered few if any overnight stays and generally leave ports before sunset. Large-ship lines in particular have made their vessels into evening playgrounds, but the emergence of evening port stays as a defining feature for Azamara Club Cruises has focused a spotlight on the growing use of this alternate deployment strategy. For the cruise season 2016-2017, two (2) cruise lines are scheduled to commence overnight stays, with one also Homeporting in Saint Lucia. This restructuring also has direct benefits to the employees of SLASPA, through the implementation of an optimal shift system, which allows for improved labour productivity and minimal impact on the well-being of individuals. The advantages of shift work are widely recognized, particularly for labour intensive careers, where long hours of work, fatigue and lack of rest breaks or time to recuperate are a few of the challenges faced by employees.

Unions, Brokers and Truckers to develop a framework that supports the success of the seaport restructuring initiative. Redeveloping the Hewanorra International Airport (HIA) Hewanorra International Airport (HIA) is a major component of Saint Luciaâ&#x20AC;&#x2122;s tourism product, serving as the gateway to the international long-haul airlines that connect the island to the United States (US), Canada, Europe and the rest of the world. HIA facilitates approximately 80% of all air traffic into the island. Annually, the airport handles more than 15,000 domestic and international aircraft movements and in 2014 it recorded 614,754 arriving and departing passengers in addition to 125,010 in-transit passengers. Growth of economies and globalization has seen demand for air travel advance rapidly in the last decade and economic and demographic evidence allude to this accelerating trend. A period of tremendous growth is on the horizon for the islandâ&#x20AC;&#x2122;s tourism and travel industry and the redevelopment of the airport will

Port Castries Although empirical assessments have proven there may be encounters with challenging circumstances regarding the maintenance of port security regulations, the impacts stemming from these security requirements can be analysed and amended to accommodate change. From a technological perspective, SLASPA is equipped to provide the services required on a 24hour basis. The Information Systems Department in collaboration with the Seaport Operations Department, successfully led the implementation and upgrading of its Seaport Management System and the development of a Central Statistical Database, a system which fully manages and tracks containers, general and break-bulk cargo, from arrival, warehouse and release. The ever-growing economy in which ports operate is constantly evolving, necessitating an organisation sufficiently flexible to identify and embrace timely evolution and modification. In its entirety, the restructuring of the seaport has significant advantages to SLASPA, the Government and the nation by extension. These benefits form part of a bigger picture of not only enhancing productivity within the Saint Lucian economy, but also decreasing cost and increasing convenience to importers and exporters as well as reducing the cost of doing business at the islandâ&#x20AC;&#x2122;s ports of entry, thus possibly resulting in lower costs of goods to consumers. In this regard, SLASPA eagerly anticipates collaborating with key stakeholders such as the St. Lucia Chamber of Commerce, Customs and Excise Department, OECSBusinessFocus Mar / May |

ensure infrastructural and operational improvements that will facilitate an expected increase in passenger arrivals and aircraft landings. Based on trend analyses done for the airport, the Saint Lucia Air and Sea Ports Authority (SLASPA) is anticipating an increase in passenger traffic at the Hewanorra International Airport (HIA), which means the facilitation of approximately 700,000 passengers by the year 2017. Mindful of the aforementioned, the way forward must entail the development of HIA into a modern aerodrome. Airports worldwide are being modernized due to growing industry demands, to ensure more environmentally friendly operations are engaged, as well as aesthetically meeting the needs of the modern day traveler. If developments are not undertaken in the near future, SLASPA may also witness a negative change in the standard which has been maintained for customer comfort, convenience and safety over the years. Therefore, the proposed redevelopment seeks to address seismic risk, provision of right-sized facilities, resolution of operational challenges, improvement in customer service, and accommodation of anticipated growth while maintaining competitive costs. However, airport projects worldwide have become increasingly sophisticated and costly, consequently requiring financing strategies that include both public and private investment www.oecsbusinessfocus.com

to complete an overall funding plan. Also, planning and constructing new infrastructure can potentially take an extremely long time and history has shown the construction of new airports and the expansion of existing ones tend to be highly controversial. To undertake a project of this nature, our country requires a development model that reduces construction risks, generates new revenue streams for SLASPA and the government, and transfers risks related to the operations and maintenance of the airport to a third party, all while enabling the government to use its financial resources to attend to other pressing social and development needs. Therefore, the proposal of a Public-Private Partnership (PPP) for the redevelopment of Saint Lucia’s international airport was deemed most suitable by mutual agreement between the Government of Saint Lucia (GoSL), the Saint Lucia Air and Sea Ports Authority and the International Finance Corporation (IFC), a subsidiary of the World Bank. As business markets become national and international in scale, airports are increasingly

industries associated with infrastructural development such as construction. Very importantly, such an arrangement promotes appropriate risk transfer to the private sector over the life of the project – from design, to construction, to operation and maintenance. The economic importance of the redevelopment of HIA to Saint Lucia includes the potential to become a major generator of economic activity and source of motivation for a wide range of trade and industry activities. The modernized HIA can act as a strategic force by attracting new foreign investment from overseas companies, retaining and securing the expansion of existing local businesses in the face of competition and promoting the success of businesses located in the vicinity. The airport development will also enhance the competitiveness of the economy through the fast and efficient delivery of passenger and freight services. Also, highly important is that it will act as a center of employment by generating demand for a wide range of skills. Under this Public-Private Partnership, SLASPA envisions a 30-year Master Plan for the long-term development of the airport, which takes into account optimal development in accordance with international best practices in airport design, territorial development and air transport management. Capital investment to be undertaken by the private operator will include all required development of airport facilities, particularly a New Terminal Building, Terminal Complex (including apron, road and parking) and Runway Rehabilitation. This Master Plan supports the PPP process with a robust roadmap for successful redevelopment to meet the needs of HIA’s stakeholders.

being viewed as incentive for local economic development. Their ability to generate jobs and attract new business is being used in many countries as a justification for investment in new airport construction or expansion. The implementation of a PPP as the preferred model to redevelop HIA, has numerous potential benefits to Saint Lucia. While the typical focal point for capital investments tends to be fiscal risk, governments look to the private sector for other reasons. The selection of an agreement of this nature serves as an avenue to introduce private sector technology and innovation in providing better public services through improved operational efficiency. This agreement will also demonstrate the utilization of PPPs as a way of developing local private sector capabilities through joint ventures with large international firms, as well as sub-contracting opportunities for local firms in areas such as civil works, electrical works, facilities management, security services, cleaning services and maintenance services. A PPP can also serve as a way of gradually exposing government and its agencies to increasing levels of private sector involvement, particularly from foreign investors; as well as the structuring of PPPs in a way so as to ensure transfer of skills. It also has the potential to create diversification in the economy by making the country more competitive in terms of its facilitating infrastructural base as well as giving a boost to its business and

Currently, as prescribed by the Master Plan, capacity enhancing works required to be facilitated by the Authority in support of the redevelopment have commenced. These projects include construction of a new Air Traffic Control Tower and Technical Block, Parking Apron, Rehabilitation of the Turning Bay and upgrade of Automatic Transfer Switch (ATS) and Gensets. Simultaneously, pre-qualified bidders are being carefully evaluated for experience, financial solvency and reputation, among other issues. SLASPA’s Management and Technical Teams, along with the International Finance Corporation (IFC), remain committed to careful evaluation of the bids, with maximum transparency. Subsequent to conclusion of the bidding process, the intention is to award the contract to the successful bidder by July 2016, with projected commencement date for construction scheduled in January 2017. In its entirety, the redevelopment of HIA through a PPP has significant benefits to SLASPA, the Government and the nation by extension and forms part of a bigger picture which creates a sustainable future for generations to come. SLASPA is working steadfastly with the support of the IFC and other stakeholders within the Saint Lucian context to ensure the successful conclusion of the development of the island’s international airport. The Authority reassures the public that the process has been transparent, all-encompassing and in keeping with international best practice. For all intent and purpose, the redevelopment of the Hewanorra International Airport as an Aerodrome has commenced and is well on its way to successful completion. ¤ OECSBusinessFocus Mar / May

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placement of a 10kW grid-connected solar photovoltaic system on Saint Lucia’s Government House to reduce electricity costs.

So what do all these initiatives mean for the businesses community? Government’s investment in renewable energy sources, signals it’s commitment to reducing public expenditure through lower energy costs, protecting the environment for future generations and developing new sectors and jobs. The spin-off opportunities within the renewable energy industry for businesses include:

Greening St. Lucia and the Opportunities for Business

By Michelle Stephens

he Caribbean Community (CARICOM) as part of the wider Alliance of Small Island States (AOSIS) achieved a major accomplishment last December at the 21st Conference of Parties (COP21) in Paris. The final Climate Change Conference Agreement reflected the target of 1.5°C as the maximum allowed global temperature rise, a target championed by CARICOM and the other Small Island Developing States (SIDS). The Agreement identifies: special financing for SIDS to assist with the implementation of climate change initiatives; milestone evaluations every 5-years for the strengthening of national climate actions; the long term goal of net zero emissions; dedicated funding under the REDD Plus mechanism for lowered emissions due to forest preservation; adaptation as a central pillar and the separate treatment of loss and damage. For St Lucia, the articulation of its Intended Nationally Determined Contributions (INDCs) to the overall Agreement signals and commits the island to reducing its greenhouse gas emissions by 16% of projected levels by 2025 and OECSBusinessFocus Mar / May |

by 23% of projected levels by 2030. To ensure these targets are met, St Lucia like other CARICOM countries will focus on renewable energy, energy efficiency in buildings, energy efficient appliances, and water distribution and network efficiency. St Lucia has already initiated action on its targets through the: •

•

signing of the National Energy Transition Strategy with LUCELEC (St. Lucia Electricity Services Limited), the Clinton Climate Initiative, Rocky Mountain Institute and Carbon War Room Alliance. This partnership will support the transition from electricity produced from only fossil fuels to 35% of electricity production from renewable energy sources, and a 20% reduction in electricity consumption in the public sector by 2020; start of a multi-donor agency funded project to rehabilitate the John Compton Dam and the Vieux Fort Water Supply Redevelopment, these projects aim to alleviate water supply challenges to affected communities in the north and south of the island; on-going installation of LED bulbs in all street lights across the country;

1. Solar panel sales and distribution 2. Photovoltaic system supply and installation 3. Wind energy instrument development, supply and control 4. Power converters and storage 5. Installation, maintenance and repair services 6. Renewable energy training, consulting, financing and auditing 7. Bio-fertilizer and bio-fuel production and other new product development 8. Solar air-conditioning and refrigeration While the list is not exhaustive, success in these new business areas will require training/re-training, skills development, traditional and non-traditional operational practices and partnerships. ¤

Michelle Stephens is a Chartered Marketer, Certified Strategy and Business Planning Professional and the Chief Strategy Officer at Caribbean Strategy Inc. She has over 15 years experience in marketing, business development and strategic planning across the Caribbean, and holds a MBA from the Edinburgh Business School. You can follow Ms. Stephens on Twitter at michellestephens@Michst22.

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OECSBusinessFocus Mar / May

Eastern Caribbean Central Bank September 2015 Quarterly Economic and Financial Review Commentary by Richard Peterkin Partner, Tax and Transaction Services Grant Thornton Saint Lucia

Grant Thornton St Lucia, together with Grant Thornton Antigua St. Kitts and Nevis, covers all eight countries of the ECCU. Both firms are member firms of Grant Thornton International Limited, a global organization of member firms with 42,000 people in over 130 countries.

The Eastern Caribbean Central Bank (ECCB) prepares a quarterly Economic and Financial Review (EFR) for the Eastern Caribbean Currency Union (ECCU) and each of the eight (8) member territories for the periods ending March, June, September and December of each year. This commentary provides a general overview of the ECCB report for the quarter ended September 2015. Economic activity in the ECCU was estimated to have increased by 2.21% in the first nine months of 2015 compared with 2.9% in the comparable period in 2014. Table 1 below shows the growth rates in the individual countries over the last four years, along with the projected rates for 2016.

Table 1 Real GDP Growth Rates

2012

2013

2014

2015 Estimated

2016 Projected

Anguilla

(1.77)

0.32

6.74

3.12

2.97

Antigua and Barbuda

3.61

1.54

4.21

1.77

2.83

Dominica

(1.08)

1.70

3.42

(3.46)

5.68

Grenada

(0.58)

3.18

4.85

3.02

1.87

Montserrat

1.57

2.79

1.29

(0.92)

1.94

St. Kitts & Nevis

(0.86)

6.20

6.07

6.66

4.61

Saint Lucia

(0.79) (1.93) (0.70)

2.35

1.47

St, Vincent & the Grenadines

1.30

2.31

(0.24)

0.83

2.11

ECCU Total

0.37

1.65

2.91

2.21

2.80

The overall growth in the region was attributed mainly to growth in tourism, transport, storage and communications, construction and, to a lesser extent, agriculture, but the performance in manufacturing in most countries remained weak. The robust growth in St. Kitts & Nevis was due primarily to construction activity in both the public and private sectors, whereas the contraction in economic activity in Dominica was due to lower output in most sectors following the passage of Tropical Storm Erika in August 2015. Consumer prices declined on average in the majority of the countries as a result of lower prices for energy and price declines in transport, food and non-alcoholic beverages. Declines in the Consumer Price Index ranged from 0.03% in Montserrat to 2.7% in St. Kitts & Nevis. OECSBusinessFocus Mar / May |

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Tourism remains the main industry for all of the countries in the ECCU, and activity increased in almost all of the countries. Total visitor arrivals increased by 11.1% to 3.0 million, compared with growth of 8.3% in 2014. Cruise ship passengers accounted for 93.2% of the growth in total arrivals, and grew by 16.6%, primarily in St. Kitts & Nevis (35.6%), Antigua and Barbuda (22.4%) and Saint Lucia (8.9%). Declines in cruise ship passenger arrivals were experienced in both Dominica and St. Vincent & the Grenadines. Stay-over visitor arrivals increased by 2.4% to 820,946 but growth was lower than in 2014 (5.9%). There was growth in the number of stay-over visitors from the USA (5.2%) and the Caribbean (4.5%) but contraction in the number of visitors from Canada (5.2%) and the United Kingdom (0.3%), as indicated in Table 2.

Total visitor expenditure increased by 2.3% to $2.7 billion, indicating no significant shift in the average daily rate earned by hotels, or the average daily expenditure of visitors. Saint Lucia (32.1%) and Antigua and Barbuda (22.2%) attract the most stay-over visitor arrivals in the ECCU region. Activity in the construction sector increased across the majority of countries in 2015 compared with a marginal contraction in the corresponding period in 2014. This was driven primarily by construction activity on residential and touristic properties in the private sector as Public sector construction was lackluster in most countries. Agricultural output increased largely due to improvements in the non-banana subsectors. Banana production increased by 4.9% but remains low at 12,355 tonnes in the Windwards. Manufacturing output is estimated to have contracted in the review period, constrained by weakened demand and competitiveness. There was an improvement in the consolidated fiscal operations of all Central Governments other than Dominica, whose overall deficit widened due to the effects of Tropical Storm Erika. The overall deficit of the ECCU narrowed by 44.6% to $104.1 million. Montserrat’s

overall surplus increased, and countries other than Dominica incurred smaller overall deficits. Current revenue in the region increased by 6.8%, due to higher tax and non-tax revenues. The improvement in overall economic activity resulted in higher collections from all categories of taxes, including VAT inflows which increased by 3.8% to $711.9 million. Revenue from the Citizenship by Investment Programmes in Antigua and Barbuda and St. Kitts and Nevis contributed to a 9.8% increase in non-tax revenues to $526.5 million. Current expenditure increased by 3.6% compared with 2.7% in 2014, but increases in the outlays on personal emoluments were restricted to 0.5% compared with 2.9% in 2014. Capital expenditure declined by 12.3% to $563.7 million as a result of lower spending in six of the countries. Public sector debt of $12.9 billion at September 30, 2015 was 2.6% lower than the outstanding debt at December 31, 2014, but debt service payments increased by 52.6% to $1.2 billion as a result of higher principal repayments. There was growth in foreign currency deposits and savings, and a reduction in lending to the private sector and Central Government, due to tighter lending terms

and de-risking by commercial banks. Commercial banks’ liquidity increased and the ratio of loans and advances to total deposits decreased to 64.8%. The weighted average interest rate on deposits declined from 2.58% to 2.08% and the weighted average lending rate fell by 9 basis points to 8.83%.

Prospects for 2016 The IMF’s world economic outlook for 2016 and 2017 is predicated on subdued demand and diminished prospects. Global growth, currently estimated at 3.1 percent in 2015, is projected at 3.4 percent in 2016 and 3.6 percent in 2017, both down on previous projections. The ECCB report forecasts ECCU growth of 2.80% in 2016 and 2.53% in 2017 but recent developments, including a slowdown in the growth of stayover tourist arrivals, may result in slower economic growth. Downside risks to the forecasts include a weaker than expected global recovery, continued appreciation of the US dollar, additional competition from the opening of USA-Cuba tourism, lower stay-over arrivals from the USA during an election year, worsening drought in the region, volatile oil prices and the risks of terrorism and natural disasters. ¤ OECSBusinessFocus Mar / May

ECONOMY & TRADE

First Citizens Caribbean Market Outlook 2016

‘Lower Fuel Prices Creating Better Opportunities for Tourism Sector’

he Caribbean region is being asked to proceed with caution this year, but to also remain optimistic.

The predictions come from the First Citizens Market Outlook Seminar 2016 presented by First Citizens Investment Services in Saint Lucia on February 9. Moderating the discussions was Regional Manager for First Citizens Investment Services, Carole Eleuthere-Jn Marie, who was the first to share her thoughts on the subject. “Unlike in years before, the outlook for 2016 is looking quite optimistic with the current trends in oil prices as well as the economy. With economies like Trinidad that depend on the price of oil being up for the economies to thrive, whereas countries that import oil like Saint Lucia have been crying for the price to go down. Now even the mini bus drivers are calling for the fares to be reduced, it is really a sign of the times,” Jn Marie remarked. Starting off the discussions was First Citizens General Manager, Sana Ragbir, who said that although global growth is expected to be supported by lower oil prices and weaker economic activity from larger players namely China; the market remains volatile. Lower oil prices have led to the belief that regional countries will do better in the tourism sector, with cheaper fares as well as more spending power from the US markets due to their increased spending power. But Head of the Research Department, Vangie BhagooRamrattan, had cautionary words for the region, indicating that while lower oil prices may be good news for the tourism industry, the threat of the Zika Virus could dampen visitor arrivals to the island.

Carole Eleuthere-Jn Marie Regional Manager First Citizens Investment Services

OECSBusinessFocus Mar / May |

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McHale Andrew Chief Executive Officer Invest Saint Lucia

Vangie Bhagoo-Ramrattan Head of the Research Dept. First Citizens Investment Services

“Since 2010 there has been a steady increase in tourist exports contributing to 4.5 per cent of GDP of the region’s countries. The total impact of direct and indirect flows into the region’s countries are closer to 15 per cent ranking at number 1 for contributions to GDP. Commodity exporters like Trinidad and Tobago, are expected to grow around 0.2 per cent as compared to previous years of 3 per cent on average”. To add to Bhagoo- Ramrattan’s caution was a report by Moody’s entitled, ‘Caribbean Sovereigns, the Silent Debt Crisis’. The report highlighted vulnerabilities within the region that could dampen prolonged growth. It stressed the problem of cyclical economic growth saying that countries dependent on tourism were vulnerable to external forces, as well as commodity exporters.

Sana Ragbir, General Manager, First Citizens Investment Services

However, CEO of Invest Saint Lucia, McHale Andrew believes that some of these crucial factors can work in Saint Lucia’s favour and in turn drive investments. Andrew who was the featured speaker at the seminar is of the opinion that with a world economy gaining momentum and the lower commodity and oil price, Saint Lucia is in a position to capitalize on that as investor confidence in the Caribbean and Saint Lucia, in particular, have returned. He highlighted several private sector projects that have been earmarked for construction or already underway for 2016, including the Royalton Saint Lucia Resort and Spa, a US$130M projected investment, as well as the Harbor Club which is set to open in November of 2016.

Another factor is the region’s exposure to natural disasters, saying that ECCU countries are most danger prone regions and are among the top 10. Annually, the region experiences damages from natural disasters amounting for 2 per cent of GDP.

According to Andrew, Saint Lucia attracted over $US181 million in total direct investment, falling short by about $US18 million of its projected $US200 million target. Of that amount, $US137.728 million was through foreign direct investment (FDI) while $US44 million was through direct investment.

Risking Sovereign Debt was also an issue. Historically, government would use debt and external borrowing to absorb external shocks, but Bhagoo- Ramrattan says that borrowing capacity is not an effective cushion.

Andrew says that much of the projected growth for Saint Lucia will be determined by how well the country can adapt to the spread of the Zika virus, which poses a threat to all countries whose economies are tourism driven. That he says will affect the forecast, for economic growth as well as for investments. ¤ OECSBusinessFocus Mar / May

ECONOMY & TRADE

LORDS AND LEADERS: Guests at the British Caribbean Chamber House of Lords Dinner, from left, John Kennedy, chairman of Boka Group; Kenny Anthony, Prime Minister of St Lucia; Lord Howard of Lympne; Dr Ian Kelly; Angus Thirlwell, group chief executive of Hotel Chocolat and David Beasley, chief executive of Humber-based Classlane Media.

TEPA and British Caribbean Chamber Agreement to Take Effect in First Quarter OECSBusinessFocus Mar / May |

RIMSBY TELEGRAPH – The Humber’s unique trade links with the Caribbean are to be furthered this year, as Chamber of Commerce work comes to fruition. A Memorandum of Understanding between St Lucia Trade and Export Promotion Agency (TEPA) and the British Caribbean Chamber – run by Hull and Humber Chamber of Commerce – will kick in next month, as staff are seconded to the regional office. It was toasted at a recent House of Lords dinner, at which former Conservative leader, Lord Michael Howard of Lympne, now patron of the British Caribbean Chamber of Commerce, played host to the Prime Minister of St Lucia, Kenny Anthony. It set the agenda for a trade and investment visit to the Eastern Caribbean and Trinidad and Tobago in February aimed at exploring exclusive investment opportunities in both Grenada and St. Lucia, as well as more traditional trade links into Trinidad and Tobago, where the two largest businesses on the island are British-based BP and BG, formerly British Gas.

Major UK investors in the Eastern Caribbean attended the dinner, including Peter De Savary, famous for his role in the America’s Cup but also a formal ambassador to the island of Grenada. John Kennedy, chairman of the Boka Group and Angus Thirlwell, founder of Hotel Chocolat, also attended, highlighting the market opportunities, particularly in tourism. Dr Ian Kelly, group chief executive of the British Caribbean Chamber, and head of Hull and Humber, said: “At the top end of the market, these two exclusive Caribbean islands offer excellent opportunities for both trade and investment which Prime Minister Kenny Anthony was kind enough to review for us on this special visit to explore opportunities for investment in particular.” Mr Anthony highlighted his commitment to trade into the UK market by noting the MoU, for which a Market Access Internship Programme will see TEPA staff join Humber staff. Lord Howard will lead the February mission. ¤

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Barbados Leads Trade Mission to CARICOM

Team Visit’s Saint Lucia, Grenada and Guyana to Promote Business

member states.

inister of Industry, International Business, Commerce and Small Business Development Donville Inniss will lead a five-day trade mission aimed at increasing this island’s exports to three neighbouring Caribbean Community (CARICOM)

Inniss, who is to be accompanied by his Permanent Secretary Philmore Best and five other officials, is scheduled to visit St Lucia, Grenada and Guyana on the mission, which also seeks to enhance the development of trade relations, joint ventures and other investments. Organized by the Barbados Investment and Development Corporation (BIDC), the mission includes three BIDC export and business development officers, along with a representative from the Barbados Manufacturers’ Association and Foreign Service Officer Corey Archer. It will see 17 local companies marketing their products and services through business-to-business meetings and consultations. Participants from the food, beverages, condiments, printing and professional services sectors leave the island on Sunday for St Lucia. The mission then moves on to Grenada on Tuesday, January 26 and Guyana on Thursday, January 28.

One of the highlights of the visits to St Lucia and Grenada will be the signing of memoranda of understanding between the BIDC and the St Lucia Trade and Export Promotion Agency (TEPA) and the Grenada Industrial Development Corporation. Bridgetown is also exploring opportunities for expandede trade with Guyana, as well as Brazil via Guyana’s partial scope agreement with that South American country. In 2014, Barbados shipped $48.4 million in goods to Guyana; $29.7 million to St Lucia; and $18.5 million to Grenada. Speaking ahead of the mission, BIDC Chief Executive Officer Sonja Trotman said: “We believe there are still many untapped opportunities for innovative companies willing to explore niche areas and provide high quality goods on par with imports from larger international suppliers.” The mission, entitled Embracing Our Region, is one of the major activities in the BIDC’s Going Global programme, and the first of several export initiatives planned for 2016. A second mission to northern CARICOM countries is scheduled for later this year. ¤ Courtesy: Barbados Today OECSBusinessFocus Mar / May

ECONOMY & TRADE

Caribbean Economies to Grow by 0.2% - ECLAC

ccording to new projections unveiled by ECLAC in January, Latin American and Caribbean economies will grow just 0.2% in 2016.

The United Nations regional organization presented in Santiago, Chile, its annual report Preliminary Overview of the Economies of Latin America and the Caribbean 2015, in which it updated the estimates given last October and called again on the region’s countries to invigorate economic growth through greater investment and higher productivity. “It is necessary to resume growth and reverse the contractionary investment cycle in a context of slow global recovery and a decline in trade,” Alicia Bárcena, Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), said during a press conference where the document was presented. The senior United Nations official underscored that the agreements reached at the recent Conference of the Parties (COP21) of the United Nations Framework Convention on Climate Change held in Paris will enable countries to provide incentives to innovation and investment in new sources for the production of renewable energy, which has huge potential in the region.

OECSBusinessFocus Mar / May |

“In the current context, active fiscal policies to promote smart adjustments gain greater relevance: analyzing the level of public spending as well as its composition to avoid excessive cuts to public investment and social spending; reviewing the structure of fuel subsidies and tax incentives in order to strengthen instruments for promoting investment and financing social spending; and reducing tax evasion/avoidance, which on average is equivalent to 6.3 points of regional Gross Domestic Product (GDP), or $320 billion dollars,” Bárcena added. According to ECLAC’s report, the region will have to face diverse scenarios and risks related to the global economy in 2016, which will undoubtedly condition its economic performance. On the external front, global growth is forecast to remain slow and reach 2.9%, while uncertainty persists regarding China—one of the region’s main trading partners—which will continue decelerating to 6.4%. Compounding uncertainty over the global economy is low growth in international trade (1.5% in 2015 and 2.5% forecast for 2016). In addition, the prices of the commodities that the region exports will stay low, meaning that Latin America and the Caribbean will once again suffer a deterioration in its terms of trade in 2016, especially in countries that export hydrocarbons and minerals, the document states.

In financial terms, ECLAC explains that the volatility and uncertainty observed in 2015 will continue next year, which means that some emerging economies will still have difficulty obtaining resources in international markets. On top of that, there will be impacts from the steady appreciation of the dollar and the rise in United States interest rates. As in previous years, external conditions have a highly differentiated effect in the region, which will show marked heterogeneity. While Central America will grow around 4.3% in 2016, South America will see its GDP shrink -0.8%, mainly due to the expected contractions in Brazil (-2.0%) and Venezuela (-7.0%). Meanwhile, the English-speaking Caribbean will grow 1.6%. According to ECLAC’s projections, Panama will lead regional growth next year with an expansion of 6.2%, followed by Dominica and the Dominican Republic (5.2%), Saint Kitts and Nevis (4.7%) and Bolivia (4.5%). It is expected that Nicaragua will grow 4.3%, Cuba 4.2%, Guatemala 4.0%, Peru 3.4%, Costa Rica and Honduras 3.3%, Colombia and Paraguay 3.0%, Mexico 2.6%, Haiti 2.5%, El Salvador 2.4%, Chile 2.1%, Uruguay 1.5%, Argentina 0.8% and Ecuador 0.3%. ¤

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World Bank Says Rising Migration Flows also Mean More

Remittances

Migrants are now sending earnings back to their families in developing countries at levels above US$441 billion, a figure three times the volume of official aid flows indicates the newly published Migration and Remittances Factbook 2016, a study produced by the World Bank Group’s Global Knowledge Partnership on Migration and Development (KNOMAD) initiative.

ithin the Caribbean and Latin America, the top 10 remittance recipients in 2015 were: Mexico (US$25.7 billion), Guatemala (US$6.4 billion), the Dominican Republic (US$5.0 billion), Colombia (US$4.5 billion), EI Salvador (US$4.4 billion), Honduras (US$3.8 billion), Brazil (US$2.8 billion), Peru (US$2.7 billion), Ecuador (US$2.4 billion) and Jamaica (US$2.3 billion) Migrants from Latin America and the Caribbean region totalled 32.5 million people, nearly 85 per cent of whom were living in OECD countries. The top 10 emigration countries in the region were Mexico,

Colombia, Brazil, EI Salvador, Cuba, Peru, Haiti, the Dominican Republic, Ecuador and Jamaica. Remittances to the region amounted to $US67 billion in 2015, while outward remittances were US$6 billion in 2014. The region has also seen rising levels of migrants with 292 tertiary graduates leaving Jamaica in 2013, ranking the island 23 places — behind first-placed India which saw 2,221 graduates leaving for better shores in the same year. Migration and Remittances Factbook 2016 said that the number of migrants has risen rapidly in the past few years for reasons including job opportunities, labour shortages resulting from falling birth rates, internal conflict and war, natural disasters, climate change, and improved access to information through phone and the Internet. “Migrants are now sending earnings back to their families in developing countries at levels above US$441 billion, a figure three times the volume of official aid flows. These inflows of cash constitute more than 10 per cent of GDP in some 25 developing countries and lead to increased investments in health, education, and small businesses in various communities,” the new study stated. The study notes that while the migration of highly skilled people from small, poor countries can affect basic service delivery, “it can generate numerous benefits, including increased trade, investment, knowledge, and technology transfers from diaspora contributions”. The fact book says that the number of international migrants was expected

to surpass 250 million in 2015, an alltime high. In total, it is expected that international migrants will send US$601 billion to their families in their home countries. The United States was the largest remittance source country, with an estimated $US56 billion in outward flows in 2014, followed by Saudi Arabia (US$37 billion), and Russia (US$33 billion). India was the largest remittance receiving country, with an estimated US$72 billion in 2015, followed by China (US$64 billion), and the Philippines (US$30 billion). The study looked at remittance flows for 214 countries and territories. It updates the 2011 edition with additional data on bilateral migration. It indicates that more than 38 per cent of the international migrants in 2013 migrated from developing countries to other developing countries, compared to 34 per cent that moved from developing countries to advanced countries. The top 10 migrant destination countries were the United States, Saudi Arabia, Germany, Russia, United Arab Emirates (UAE), United Kingdom, France, Canada, Spain and Australia. The top 10 migrant source countries were India, Mexico, Russia, China, Bangladesh, Pakistan, the Philippines, Afghanistan, Ukraine, and the United Kingdom. Immigration flow between Mexico and the United States was the largest migration corridor in the world, accounting for 13 million migrants in 2013. Russia-Ukraine was the second largest, followed by Bangladesh-India, and Ukraine-Russia. ¤ Courtesy: Jamaica Observer OECSBusinessFocus Mar / May

ECONOMY & TRADE

Global Unemployment Expected to Reach 199.4 Million in 2016 – ILO Report

ontinuing high rates of unemployment worldwide and chronic vulnerable employment in many emerging and developing economies are still deeply affecting the world of work, warns a new ILO report.

The unemployment rate for developed economies decreased from 7.1 per cent in 2014 to 6.7 per cent in 2015. In most cases, however, these improvements were not sufficient to eliminate the jobs gap that emerged as a result of the global financial crisis.

a decrease in poverty rates, the rate of decline in the number of working poor in developing economies has slowed and vulnerable employment still accounts for over 46 per cent of total employment globally, affecting nearly 1.5 billion people.

The final figure for unemployment in 2015 is estimated to stand at 197.1 million and in 2016 is forecast to rise by about 2.3 million to reach 199.4 million. An additional 1.1 million jobless will likely be added to the global tally in 2017, according to the ILO’s World Employment and Social Outlook – Trends 2016 (WESO). “The significant slowdown in emerging economies coupled with a sharp decline in commodity prices is having a dramatic effect on the world of work,” says ILO Director-General Guy Ryder.

Moreover, the employment outlook has now weakened in emerging and developing economies, notably in Brazil, China and oil-producing countries.

Vulnerable employment is particularly high in emerging and developing economies, hitting between half and three-quarters of the employed population in those groups of countries, respectively, with peaks in Southern Asia (74 per cent) and sub-Saharan Africa (70 per cent).

“Many working women and men are having to accept low paid jobs, both in emerging and developing economies and also, increasingly in developed countries. And despite a drop in the number of unemployed in some EU countries and the US, too many people are still jobless. We need to take urgent action to boost the number of decent work opportunities or we risk intensified social tensions,” he adds.

“In addition, policy-makers need to focus more on strengthening employment policies and tackling excessive inequalities. There is much evidence that well-designed labour market and social policies are essential for boosting economic growth and addressing the jobs crisis and almost eight years after the start of the global crisis, a strengthening of that policy approach is urgently needed,” adds Torres.

In 2015, total global unemployment stood at 197.1 million – 27 million higher than the pre-crisis level of 2007.

The authors of the WESO also document the fact that job quality remains a major challenge. While there has been

OECSBusinessFocus Mar / May |

“The unstable economic environment associated with volatile capital flows, still dysfunctional financial markets and the shortage of global demand continue to affect enterprises and deter investment and job creation,” explains Raymond Torres, Director of the ILO Research Department.

Meanwhile, the report shows that informal employment – as a percentage of non-agricultural employment – exceeds 50 per cent in half of the developing and emerging countries with comparable data. In one-third of these countries, it affects over 65 per cent of workers. “The lack of decent jobs leads people to turn to informal employment, which is typically characterized by low productivity, low pay and no social protection. This needs to change. Responding urgently and vigorously to the scale of the global jobs challenge is key to successful implementation of the United Nations’ newly adopted 2030 Agenda for Sustainable Development,” concludes Ryder. ¤ www.oecsbusinessfocus.com

Caribbean Rates Low in Penetrating European Market Through Trade Accord

Director General of the Caribbean Forum of the African, Caribbean and Pacific States (ACP), Percival Marie.

even years on since the Caribbean and Europe signed a trade and economic accord, the latest review shows that this region is yet to benefit significantly and much depends on proper organising. That’s according to a top regional official .

Caribbean Coordinator for the Economic Partnership Agreement (EPA), Percival Marie said recently concluded monitoring and evaluation shows that much more needs to be done to take advantage of European Union (EU) markets. “To put it diplomatically, the major conclusion was that the Caribbean has not yet been able to convert market access even in EPA into market presence in the European Union,” said Marie who is also the Director General of the Caribbean Forum of the African, Caribbean and Pacific States (ACP). He was addressing the National Bipartite Meeting on Challenges to Cariforum Labour, Private Sector and Employers to fulfill their EPA obligations, late last year. The Caribbean signed the EPA with Europe in October 2008 with the aim of taking advantage of huge aid for trade opportunities. While acknowledging that benefits from the EPA were yet to flow to the Caribbean, he suggested that the region replicate instances of success in taking advantage of the EU market. Marie urged civil society and social partners to take advantage of monies available from a 346 million Euro Caribbean Regional Indicative Programme under the 11th European Development Fund for beefing up capacity building. He said most of the cash would go towards EPA implementation. The EU has said rules on competition policy and intellectual property were yet to be put in place by the Caribbean so that this region could take advantage of European markets. Cariforum is made up of the 14 independent Caribbean Community (Caricom) member states and the Spanish-speaking Dominican Republic. ¤ Courtesy: Carib News Desk

CDB Approves Grant for Energy Audit of Government Buildings in SVG

he Caribbean Development Bank (CDB) is financing the cost of energy audits of selected public buildings in St. Vincent and the Grenadines which will inform the energy efficiency (EE) measures and/ or renewable energy (RE) interventions needed to reduce the country’s electricity consumption. CDB has provided a grant of USD48,500 under its Sustainable Energy for the Eastern Caribbean (SEEC) Programme which will finance the cost of consultancy services to update (where they exist), and/or conduct, investment grade energy audits for 20 selected public buildings. The energy audits will evaluate the energy performance of the subject buildings and elaborate cost-effective and feasible energy efficiency measures and renewable energy options. The identified measures will form the basis for proposing a project to CDB for utilisation of SEEC grant and loan resources. Implementation of an investment project resulting from the energy audits supported by this TA Grant, could potentially save the Government of St. Vincent and the Grenadines an estimated 30% in energy consumption for the targeted buildings, and similarly reduce expenditure on electricity. Such an investment project would contribute directly to climate change mitigation due to lower levels of CO2 emissions, consistent with Sustainable Development Goal #7. The SEEC Programme is a multi-donor trust fund, supported by Department For International Development (DFID)-UKaid, European Union- Caribbean Investment Facility (EU-CIF) and CDB, which provides grant and blended loan resources to the six independent OECS countries – Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia, and St. Vincent and the Grenadines, for addressing public sector energy security issues through RE and EE interventions and for capacity building. ¤ OECSBusinessFocus Mar / May

ECONOMY & TRADE

By Ray Chickrie Caribbean News Now contributor

President David Granger (C) in discussion with Kuwait Ambassador Ayadah Alsaidi (R) as Minister of Foreign Affairs Carl Greenidge looks on

Kuwait Urges Guyana to Strengthen Economic and Trade Ties

GEORGETOWN, Guyana -- While political ties between Guyana and Kuwait are strong, economic and trade relations are “not as strong as they could be,” Kuwait’s non-resident ambassador to Guyana, Ayadah Alsaidi, told the president of Guyana, David Granger, on Wednesday, during his accreditation ceremony in Georgetown.

uring his meeting with Granger, the Kuwait envoy said that Sheikh Sabah AlAhmad Al-Jaber Al-Sabah of Kuwait is committed to working to strengthen relations between Guyana and his country. Alsaidi committed himself to strengthen ties in the areas of trade and investment. Kuwait, he said, would welcome proposals for projects that could benefit the people of Guyana. In his remarks, Granger said that Guyana and Kuwait will find “practical ways of moving their collaboration further.” He noted, “Your accreditation takes place at a time of economic transformation for both our countries, albeit at different levels. Guyana, like Kuwait, is striving to further develop its natural resources to accelerate economic growth and ensure OECSBusinessFocus Mar / May |

a good life for all of its citizens. Guyana remains deeply committed to its efforts to reduce poverty and unemployment and to provide better social services for all. There are ample opportunities for our two countries to collaborate in this regard.”

especially in the areas of communication, culture, commerce and investment. We are confident that during your tenure we will be able to find practical ways of implementing these agreements,” Granger added.

Guyana and Kuwait, two small-states, have in the past worked closely at the multilateral level on issues relating to the preservation of sovereignty and territorial integrity. Guyana backed Kuwait at the UN when that country was occupied by Iraq. They are both members of the Organisation of Islamic Cooperation (OIC), and Kuwait has funded various projects in Guyana. Guyana’s only embassy in the Middle East and the East and North Africa region is in Kuwait and is financially subsidized by the emirate.

Contacts between Guyana and the Middle East have increased after Granger’s visit to Saudi Arabia last November. In prioritising the Saudis first instead of Iran, Granger calculated that the House of Saud has strong political and economic clout in the region.

“We have given added life to our relations in recent years, through the conclusion of several cooperation agreements,

Just a few days ago, the United Arab Emirates (UAE) sent its minister of state, Reem Al-Hashimy to Guyana in an effort to examine all areas and scope for cooperation. This was the first visit by a top ranking UAE diplomat to Guyana. ¤

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Caribbean Economies Urged to Move Away from High Government Spending

merging markets, including those in the Caribbean, must find new models of economic growth.

The first step according to Natalie Mansoor, head of Asset Management at RBC Investment Management (Barbados) Ltd, is to move away from models based on high government spending or driven by debt. Mansoor was speaking at the recent Annual Forecast Dinner hosted by the Chartered Financial Analyst (CFA) Society, Barbados. Mansoor noted that many Caribbean economies have traditionally linked their growth cycles to the external environment, together with reliance on one or two products or services. “It is a simple model,” she said. “In good times spend. In bad times borrow and continue to spend and wait for good times to come back.” But Mansoor said the problem with this approach was that without stronger growth cycles the debt simply continues to grow. As a result, she said she expected to see downgrades, debt restructuring and defaults. She added: “I expect devaluations. They are inevitable, whether we choose them or have them forced on us.”

She told CFA members and guests that slow growth in wages had become a drag on consumption in developed markets, and growth in the global economy would have to come from emerging markets with growing populations and rising incomes. In the United States, for example, she said, growth in wages was not keeping abreast of job creation. “In the US we have unemployment of 5%, but we still see low-wage growth. Normally, we should be getting more wage growth.” The investment banker said two major factors were now keeping the lid on wage growth in developed markets. Firstly, most of the jobs being created are low-skilled and low-paying. Secondly, the declining cost of automation is displacing middleskilled jobs. In their presentations, both David Noel, Scotiabank’s managing director, Caribbean East, and Donna Wellington, CIBC FirstCaribbean’s managing director – Barbados Operating Company, also warned that high indebtedness and large fiscal deficits continue to undermine hope of meaningful growth.

Natalie Mansoor, Head of Asset Management at RBC Investment Management (Barbados) Ltd.

Made up of approximately 50 local investment professionals, the CFA Society Barbados is a member of the Chartered Financial Analyst Institute, a global not-for-profit organisation, comprising over 135,000 investment professionals worldwide. ¤ OECSBusinessFocus Mar / May

MONEY MATTERS

Averting a Regional Financial Disaster – The BAICO Challenge By Brian Glasgow

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Collapse of British American Insurance Company Limited The Global Financial Crisis of 2008 hit the OECS in early 2009 with the collapse of British American Insurance Company Limited (“BAICO”), and triggered a major challenge to the region’s financial stability. By mid-2009, the OECS Governments recognised that decisive action was necessary and established an ECCU Ministerial sub-committee on insurance matters headed by Prime Minister, Dr. R. E. Gonsalves of St. Vincent and the Grenadines, and a technical “Core Committee” on insurance matters, chaired by then Permanent Secretary in the Ministry of Finance in Grenada, Mr. Timothy Antoine, who has just been recently appointed Governor of the Eastern Caribbean Central Bank. The regional insurance regulators, working closely with the Core Committee, applied to the respective Courts for appointment of Judicial Managers, and during August 2009, partners of KPMG were appointed throughout the ECCU as Judicial Managers of BAICO. It quickly became apparent to the Judicial Managers, that BAICO’s financial position was extremely fragile: OECSBusinessFocus Mar / May |

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BAICO’s unaudited balance sheet as at 30 June 2009 had shown assets of EC$920 million and liabilities of EC$1.35 billion; However, while the figure for liabilities was not inconsistent with the Judicial Managers assessment, very significant asset write downs were required relating principally to substantial property investments that BAICO had made in the United States and to recoveries due from intercompany transactions; This led the Judicial Managers to believe that, in the immediate aftermath of their appointment, dividend prospects for policyholders and creditors were probably less than 5 cents in the dollar.

Proposed Initial Solution To improve prospects of recovery for policyholders in the period immediately following their appointment, and with the assistance of the Core Committee, the Judicial Managers developed a solution to create a new company (“NewCo”). This NewCo was to have been capitalised with funds from the ECCU, independent investors and a significant injection of

Brian Glasgow is a fellow of the Association of Chartered Certified Accountants, and a Chartered Professional Accountant. He holds an MSc in Accounting and Finance, and is currently Secretary of the Eastern Caribbean Institute of Chartered Accountants. He is the Head of Markets in KPMG Caricom, and lead Restructuring Partner.

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funds from the Government of Trinidad & Tobago (“GORTT”). NewCo was to assume the liabilities of BAICO and the prospects of recovery for policyholders, while not receiving payment in full, would have been enhanced. Unfortunately, after several months of work, the funding for the solution did not materialise, principally due to the withdrawal of certain key financial support, and the NewCo solution was discontinued. The Judicial Managers subsequently pursued a different strategy, seeking to generate solutions based on portfolios of business within the company.

The ECCU Policyholders Relief Programme (“the PRP”) The EC Governments established the PRP to assist certain of these remaining policyholders. Phases 1 and 2 of the PRP assisted policyholders with individual policy values less than EC$30,000. Phase 3 assisted non-corporate and noninstitutional policyholders with principal balances over EC$30,000. Certain applications that have been submitted for payment under the PRP have not yet been paid. The EC Governments are in discussion with GORTT to attempt to obtain the funding required to make the remaining payments under Phase 3 of the PRP as a matter of urgency. Litigation The Judicial Managers have ongoing litigation in various jurisdictions seeking to recover amounts due to BAICO as well as actions against former office holders for breach of duty. Set out below, is some key information relating to certain actions in the public domain: US Litigation:

Portfolio Solutions In the period following their appointment, the Judicial Managers dealt with certain portfolios of business in the following ways: •

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The Judicial Managers arranged for all Property policies with BAICO to be replaced with coverage from Caribbean Alliance; Working with the Judicial Managers, the ECCU set up a Compensation Fund to pay all outstanding Medical Claims following the cancellation of medical policies;

The Traditional Business Following the withdrawal of financial support for the NewCo solution, the Judicial Managers and the Core Committee developed a subsequent plan to use remaining Government funding to support a transfer of BAICO’s traditional life business to Sagicor which was completed in 2013.

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In 2010, the Judicial Manager of BAICO in St Vincent & The Grenadines, obtained relief in the United States Bankruptcy Court, effectively protecting BAICO’s assets in the United States, and recognizing the Judicial Management process: The Judicial Managers commenced two principal causes of action in the United States at this time: •

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Attempted discovery and recovery of amounts due from BAICO’s investments in a mutual fund in the sum of approximately EC$27 million; and Breach of fiduciary duty in relation to BAICO’s US Property transactions. This litigation is ongoing and, although certain parties have settled with the Judicial Managers, judgement is being sought against the remaining defendants.

Trinidad Litigation •

The Judicial Managers commenced legal proceedings against BAICO’s parent undertaking CL Financial Limited seeking recovery of certain amounts due in respect of a promissory note;

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The Judicial Managers successfully sought recovery of an amount loaned by BAICO to a director in 2013.

Summary of Litigation Some matters are “sub judice” and therefore it is not appropriate at this stage to comment. Currently, the Judicial Managers have recovered in excess of EC$140 million from litigation. Closure of BAICO and Distribution of Funds The Judicial Managers have been seeking a fair and equitable solution across the region for the remaining policyholders. After taking account of the various programmes which have been put in place to deal with certain portfolios, the remaining liabilities of the company are estimated to be in the region of EC$810 million. Given the multi-jurisdictional nature of this matter, it is the opinion of the Judicial Managers that there is no consistent process currently available to implement across the regions which will allow for the distribution of funds equally across territories. As a result, the Judicial Managers, in conjunction with the Eastern Caribbean Core Committee, have proposed new legislation specifically for the use of BAICO, to allow the Company to propose a “Plan of Arrangement” to its policyholders. This legislation, which is now being enacted throughout the ECCU, will provide a mechanism for a payment to insurance creditors in a much reduced time frame than may otherwise be possible. The Plan of Arrangement will allow all free assets to be pooled and will allow all policyholders to be paid across the region on one consistent basis as set out in the Plan. Ultimately, though, with the funds presently available, prospects of success of ongoing litigation, and GORTT’s delivery on its commitment, dividend prospects for the remaining policyholders and creditors are significantly higher than the 5 cents in the dollar originally anticipated. ¤ OECSBusinessFocus Mar / May

MONEY MATTERS

Irwin LaRocque, Caricom Secretary-General, addresses the Community Council of Ministers Meeting in Guyana.

he Caribbean Community (Caricom) Secretariat is proceeding apace with implementing the Community Strategic Plan 2015-2019, including the preparation of a strategic business plan, guided by the recently established Change Management Office. This assurance was given to the Community Council of Ministers by Ambassador Irwin LaRocque, Caricom Secretary-General as he addressed the opening of the 37th meeting of the Community’s second highest organ, referred to as The Council.

Caricom prepares business plan OECSBusinessFocus Mar / May |

It is meeting in Georgetown, Guyana to consider the Caricom Secretariat’s work programme and budget for the year 2016, ahead of the TwentySeventh Inter-Sessional Meeting in Belize in February. This meeting of the Council is on the heels of a meeting of the Caricom Committee of Ambassadors, which, functioning as the preparatory body for The Council, met last Wednesday and deliberated on issues for its agenda. LaRocque said a critical factor of the strategic plan was establishment of a planning, monitoring and evaluation, and reporting system which was being developed with financing from the Caribbean Development Bank (CDB).

In urging The Council’s positive consideration of the meeting’s agenda, he said: “Ministers, all our plans and activities are geared towards the sustainable development of our community, through building our economic, environmental, social and technological resilience. As has been demonstrated throughout our 43-year history, our achievements have been rooted in our united actions. As recently as last December, that unity proved its immense worth at the COP 21 in Paris. Our unified approach resulted in the attainment of favourable outcomes on an issue of existential importance to us, climate change.” That spirit and approach must propel all efforts to overcome the challenges to providing a “safe, viable and sustainable Community for all citizens,” LaRocque said. The Caricom Secretariat is one of the implementing partners of the Community Strategic Plan along with the regional institutions and the member states. LaRocque welcomed Dennis Moses, T&T’s Minister of Foreign and Caricom Affairs of Trinidad and Tobago, who was attending his first meeting of the Council. ¤

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US $595m in C&W Profits

IDB disbursed billions to the Caribbean in 2015

W Phil Bentley

ith Barbados and the Caribbean continuing to play a pivotal role in its operations, Cable & Wireless Communications (CWC) is reporting improved business.

he Inter-American Development Bank (IDB) says it has approved loans and guarantees totaling US$11.3 billion and disbursed US$10.4 billion to borrowing countries in Latin America and the Caribbean during 2015.

In its third quarter performance report for the period ending December 31, 2015 CWC reported revenue of US$595 million, a one per cent increase, while revenue for the first nine months of its financial year was US$1.7 billion, a three per cent increase. In terms of other performance categories, the group earned US$238 million (a 16 per cent increase) in the third quarter. For its fiscal year to date, its earnings increased by eight per cent to reach US$665 million.

The lending agency says in an effort to fulfill its mandate to support the region’s smaller and vulnerable economies, it devoted 50 per cent of the resources approved last year to borrowers of those characteristics, a 14 percentage point increase over the previous year.

Commenting on the performance, CWC chief executive officer Phil Bentley said the increased earnings in the third quarter were underpinned by cost synergies, and the impact of the Project Marlin investments, which he said “have now passed their peak level”.

The IDB said last year’s lending was concentrated in priority areas established in the 2010 capital increase agreement. Of this amount, 39 per cent went to projects involving infrastructure and the environment, 32 per cent to institutional development, 21 per cent to social sector programs, and 8 per cent to trade and integration projects.

So much so that the company’s network is now “delivering better resilience and speeds to our customers and carrying 104 per cent and 42 per cent more traffic on our mobile and fixed networks, respectively, compared to last year”, Bentley said.

During 2015, the IDB completed the process of consolidating its private sector activities into the Inter-American Investment Corporation (ILC). The expanded IIC, which began operations earlier this month, aims to approve up to US$2.9 billion in its first year of merged activities. In addition, the IDB said it began to implement an exposure exchange agreement with other multilateral finance institutions, which enables regional development lenders to lower their geographic concentration by diversifying their risk. The bank also took a series of administrative austerity measures, reflecting similar steps taken by many of its member countries, to adjust to changing global economic conditions. “These internal cost-saving efforts will continue in 2016,” the IDB said. ¤

“Our strategy is delivering: smartphone take up increased nine percentage points to 50 per cent and drove mobile data revenue growth of 18 per cent against the prior year; in fixed networks, and additional 20 000 homes were passed with high speed connectivity, driving five per cent and seven per cent growth in broadband and video, respectively,” he said. In the case of the business to business division, he said the telecommunications comapny was “shifting our focus away from one off IT and government projects, towards building ongoing relationships with our customers resulting in monthly recurring revenue growth of four per cent across our markets since the start of the year; and in networks, backhaul capacity for our customers has increased by 24 per cent” “Overall group year to date like for like revenue growth of three per cent is solid. We continue to transform our business to become the region’s leading quad-play operator, and I am confident that revenue growth will increase, as we build the platform for sustainable, profitable growth in the coming years,” Bentley added. ¤ OECSBusinessFocus Mar / May

MONEY MATTERS

CARICOM Heads at recent meeting in Belize

Tackles Banking Sector Threat

aricom will employ the full gamut of options available to it to confront the banking crisis that is threatening the region, chairman of Caricom and Prime Minister of Belize Dean Barrow said. He underscored the necessity for collective action, sensitisation and mobilisation.

with the issue of correspondent banking relations and conceded that there was no simple solution.

Among the steps dediced on by Heads of Government at their 27th Inter-Sessional Meeting, which concluded in Belize, was to establish a high level advocacy group, led by Antigua and Barbuda Prime Minister Gaston Browne, whose mission is to represent the Caricom’s interest at all levels, including with the United Nations (UN), the World Trade Organisation (WTO), and the United States Congress.

PM Browne’s mission, Barrow pointed out, was just one avenue through which Caricom hoped to find a solution to the problem which he had earlier described as a “possible correspondent banking Armageddon” and for which the region had to wage a relentless war.

“The goal is to underline to all the key players, including the US Congress how absolutely existential this issue is for us,” Barrow said. A letter is also to be dispatched to United States President Barack Obama. The threat relates to the possible loss of access to international financial markets by mainly the regional indigenous banks. Several international banks, mainly in the US and Europe, have signalled to client banks in the region an unwillingness to continue carrying their business. The so-called ‘de-risking’ by the global banks threatens to impact several critical services including remittance transfers. International trade, the facilitation of credit card settlements for local clients are among the other effects the region faces. Prime Minister Barrow dealt at length

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“It is going to take a great deal of doing... all we can say is that we are determined to pursue all possible means until we get the kind of resolution ...that we want,” he said.

Barrow pointed to the scenario in Montserrat to underscore the gravity of the situation; noting that member state has only two banks and they are “having their status revoked.” He reiterated that banking regulators had assured that there was no “problem with our jurisdictions” and added that all Caricom member states were Financial Action Task Force (FATF) compliant. He rejected outright the notion that corruption in governments may be one of the factors responsible for the de-risking. He recommended that member states pool their business to achieve critical mass and to make it worthwhile for the correspondent banks. The governors of regional central banks, and the Committee of Ministers of Finance on Correspondent Banking, that Heads of Government have established, will consider the modalities of that recommendation. ¤ www.oecsbusinessfocus.com

or the first time in its history the Massy Group has earned more profit before tax (PBT) from outside of T&T.

Chairman Robert Bermudez, in comments to shareholders on the group’s unaudited financial statements for the first quarter of the 2016 financial year, said PBT from overseas accounted for 51 per cent of Massy’s overall PBT of $211 million for the period.

E. Gervase Warner President & Group Chief Executive Ofﬁcer.

Higher overseas profits for Massy Group

The group’s latest results, which are posted on the T&T Stock Exchange, show that PBT declined by 3.6 per cent and its third party revenues decreased by 1.6 per cent to $3.1 billion compared to the corresponding period in 2015. Bermudez said: “With higher tax rates in overseas jurisdictions, the group’s effective tax rate increased to 31 per cent versus 29 per cent for the same period in financial year 2015. As a result, group profit after tax and earnings per share

Goddard Enterprises Limited Records $62 Million Profit

for first quarter 2016 declined by six per cent to $146 million and $1.30 per share respectively.” He said the group continues to focus on operational efficiency, waste elimination and investment for growth and in the 2016 financial year expects additional revenue production from the launch of a new Massy Stores supermarket in Guyana, expansion of its auto dealership and car rental businesses in Colombia and full commercial launch of high speed internet and television services in T&T. “The benefit of the group’s geographic diversification will continue to assist the group’s performance as Massy continues to grow its operations in Colombia and Latin America and as economies outside Trinidad and Tobago continue to enjoy lower oil and other commodity prices,” Bermudez said. He added that the group is “well positioned to weather the current economic challenges” facing T&T. ¤

dopting a business model that focuses heavily on overseas diversification is paying off handsomely for Barbadian conglomerate Goddard Enterprises Limited (GEL).

GEL has earned nearly $62 million in profits after what its directors called a “record-breaking” 2015. It included earnings per share of 83 cents – “the highest ever”. And the group is targeting more of the same this year. Managing director Anthony Ali (below) said the 2016 plan involved “streamlining the business portfolio and continuing to evaluate those businesses that are not giving us the type of return we expect, or do not allow us to focus on a regional strategy”. “Group revenue and net income for the year ended September 30, 2015 amounted to $924.5 million and $61.9 million, compared with $954.1 million and $48.9 million in the previous year. The group achieved the highest earnings per share (EPS) ever of 83 cents which exceeded prior year’s EPS of 62.1 cents by 33.7 per cent and also surpassed the previous highest amount of 73.7 cents, which was earned in 2008,” the group’s directors reported. The Goddard Group has operations in Barbados, across the Caribbean and beyond. ¤ OECSBusinessFocus Mar / May

TECHNOLOGY

C&W Business Awarded 2015 Mid-Market Partner of the Year Award by Avaya

&W Business, part of Cable & Wireless Communications Plc (CWC), has been recognized by Avaya, a global leader in business communications software, systems and services, as the 2015 MidMarket Partner of the Year Americas International. The company received the top channel partner award during Avaya’s annual Executive Partner Forum event held in San Diego, California in February, 2016. C&W Business received the award for its innovative solutions in delivering comprehensive and unified communications to meet customer needs across the Caribbean and Latin American region. C&W has been a recipient of a Mid-Market partnership award from Avaya for the past six years and has been Avaya’s platinum Partner during this time, the highest partner status level in Avaya’s Channel Relationship hierarchy. C&W Business has a long tradition of bringing top-level services to customers and is the longest Platinum Certified Avaya Partner in the Caribbean and Latin American region. C&W Business currently has over 30,000 units installed and maintained in all segments and verticals in the region. “We congratulate C&W Business for its well-deserved distinction as a 2015 Avaya Partner of the Year. We are pleased our channel partners not only see the value of Avaya’s technology, but are highly effective at communicating that value to their endcustomers. We celebrate our Partners of the Year for being true ambassadors of our technology and thank them for their continued support, dedication and laser focus on a customerfirst approach,” said Steve Biondi, vice president, Global Partner Organization, Avaya. ¤

OECSBusinessFocus Mar / May |

C&W and WhatsApp Sign Partnership

able & Wireless (C&W) and WhatsApp have entered into a strategic marketing partnership. A first for the Caribbean, this exciting deal offers C&W customers access to the full range of WhatsApp features across the company’s networks. As a result of this partnership, C&W will introduce a suite of innovative packages with additional benefits for customers, which will be unveiled across all its markets in the coming months. Cable & Wireless’s brands—Flow, BTC, and LIME—are currently the only officially authorised providers of WhatsApp data bundles in the Caribbean region. The agreement between Cable & Wireless with the world’s leading mobile messenger application, WhatsApp, highlights C&W’s commitment to bring the best value to customers through strategic partnerships. “Since the emergence of Over The Top (OTT) Communication services, Cable & Wireless has maintained our commitment to work with authorised service providers to ensure customers have access to world-leading services on their devices, running on the region’s best networks,” said John Reid, C&W’s consumer group president. “We are excited to work with Cable & Wireless to help people across the Caribbean stay better connected with friends and family,” said Brian Acton, co-founder of WhatsApp. ¤ www.oecsbusinessfocus.com

Number Portability Comes to Trinidad & Tobago

Signing the contract are, from left, Peter Gillette, Kirk Rudder, Charles Carter, Ronald Vlasman, Cris Seecheran, Brian Collins, Fiachra Groarke and Narissa Mustapha.

obile and fixed line telephone operators in T&T have signed an agreement Porting XS for provision of service provider number portability. This means customers will be able to change their service providers without having to change their telephone numbers. As a result of the agreement, the Telecommunications Authority of Trinidad and Tobago (TATT) has set a deadline of March 31 for implementation of mobile number portability while implementation for fixed lines will take place no later than September 30. The agency embarked on implementation of local number in 2010 with the publication of its Framework for the Implementation of Number Portability. Since then TATT has sought to have all operators have their networks suitably configured to implement number portability on their fixed and mobile networks. PortingXS of Holland will provide the centralized database required for implementation of number portability. Signing of the contract between Porting XS and local service providers took place recently at TATT’s office in Barataria.

Caribbean Technology Start-up Companies Engage in Bootcamp

tarting and running a successful business is a challenge for any entrepreneur, but for first time start-ups, one of the major issues that they face is a lack of knowledge of basic business tools and where to turn for advice. For at least 15 technology start-up companies from Barbados, Trinidad and the Eastern Caribbean though, this is no longer an insurmountable challenge, as they recently participated in a 3-day Bootcamp geared towards providing them with key tools to launch and grow their own software-based company. Hosted by The World Bank, in partnership with the Caribbean Development Bank (CDB), Devlabs, and Startup Jamaica, the Bootcamp took place during February 14th-17th at the Accra Beach Hotel in Barbados. It provided participants with the basic business and product development tools and techniques needed to start a software-based company. Participants also developed actionable business plans, created websites for their products, and learnt how to scale their sales processes and generate revenue quickly.

Speaking at that signing, Cris Seecheran, TATT’s CEO said, “I wish to take this opportunity to thank all our service providers for the tremendous effort that they have all taken in the preparation for the implementation of number portability in T&T. I wish also to thank Porting XS for the role that they will play in the success of this initiative that will enhance the customer experience and further the competitive landscape in telecommunications in T&T.”

Lisa Harding, Operations Officer at CDB, noted that facilitating entrepreneurship, particularly for firms using technology as an enabler, has the potential to contribute to economic growth and diversification of the region. “This is a focus area for CDB, because of the role it can play in employment generation for the region’s youth, while promoting the ICT as a channel for economic diversification. These emerging sectors are environments in which we can compete in on a global scale, as success is not driven by the size of the countries or economies, but rather, by our intellectual ability and creativity.”

Signing on behalf of their companies were Brian Collins, managing director, Columbus Communications Trinidad Limited; Fiachra Groarke, chief operations officer, Digicel (T&T) Limited; Narissa Mustapha, general manager, Lisa Communications Limited; Peter Gillettem, chairman, Open Telecom; Charles Carter, EVP Legal, Regulatory, Carrier Services and Corporate Secretary, TSTT; Kirk Rudder, manager, Value Added Services, Massy Communications Limited; and Ronald Vlasman, CEO, Porting XS, BV. ¤

CDB’s support for the bootcamp is part of a wider Caribbean Animation and Technology Capacity Building Programme (CaribAniTech), designed to promote the growth and development of the animation and mobile applications software development sectors. Carib-AniTech is a 2-year programme which will leverage the development framework currently available in Jamaica to enhance outreach to include Barbados and the Eastern Caribbean. The World Bank has overall responsibility for the execution of Carib-AniTech, with support from CDB. ¤ OECSBusinessFocus Mar / May

TECHNOLOGY

60% of World’s Population Lack Internet Connectivity - World Bank

new World Bank report says that while internet, mobile phones and other digital technologies are spreading rapidly throughout the developing world, the anticipated digital dividends of higher growth, more jobs, and better public services have fallen short of expectations, as 60 per cent of the world’s population remains excluded from the commodity. The report, titled World Development Report 2016: Digital Dividends, stated that the benefits of rapid digital expansion have been skewed towards the wealthy, skilled, and influential who are better positioned to take advantage of the new technologies, while the world’s most vulnerable falls behind. It added that though the number of internet users worldwide has more than tripled since 2005, with mobile phones being the source of connectivity in developing countries — four billion people still lack access to the internet. Jamaica The World Economic Forum in its Global Information Technology Report published last April, ranked Jamaica’s networked readiness at a new high of 82 of 143 countries versus being placed 85 in 2013 and 86 in 2014. Digital technologies are spreading rapidly, but digital dividends – growth, jobs and services – have lagged behind,” the report stated. In response, President of the World Bank Group, Jim Yong Kim, in a release stated that as digital technologies continue to transform the worlds of business, work and government, efforts must be made to continue to connect everyone. “The costs of lost opportunities are enormous,” he stated. “But for digital dividends to be widely shared among all parts of society, countries also need to improve their business climate, invest in people’s education and health, and promote good governance.”

OECSBusinessFocus Mar / May |

The report highlighted that more than 40 per cent of adults in East Africa pay their utility bills using a mobile phone, while eight million entrepreneurs in China—one third of them women — use an e-commerce platform to sell goods nationally and export to 120 countries. “The digital revolution is transforming the world, aiding information flows, and facilitating the rise of developing nations that are able to take advantage of these new opportunities,” World Bank Chief Economist, Kaushik Basu stated. “It is an amazing transformation that today 40 per cent of the world’s population is connected by the internet. While these achievements are to be celebrated, this is also occasion to be mindful that we do not create a new underclass. With nearly 20 per cent of the world’s population unable to read and write, the spread of digital technologies alone is unlikely to spell the end of the global knowledge divide.” In its recommendations, the bank emphasised that analogue complements to digital investments be used to fulfil the development promise of a new digital age. “The World Bank suggests two main actions: closing the digital divide by making the internet universal, affordable, open, and safe; and strengthening regulations that ensure competition among business, adapting workers’ skills to the demands of the new economy, and fostering accountable institutions,” it said. Over the last decade, the World Bank Group has invested a total of US$12.6 billion in ICTs. ¤ Courtesy Jamaica Observer

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FLOW

Set To Launch ‘LTE’ In Jamaica

elecommunications firm FLOW is now carrying out work on a long-term evolution (LTE) upgrade to sections of its network that will introduce advanced next-generation mobile Internet speeds to Jamaica. This groundbreaking move will facilitate mobile Internet connectivity of up to 10 times faster than the 4G mobile speeds which FLOW subscribers all across Jamaica now enjoy. “These are indeed exciting times for the FLOW brand as we are constantly pushing the boundaries in our bid to meet and exceed the expectations of our customers,” said Garfield Sinclair, managing director of FLOW Jamaica. Sinclair also added, “This

first-world technology is sure to delight our customers as it places Jamaica on par with, if not ahead of many, developed countries around the globe.” “Initially, we will be rolling out LTE in major high-traffic sections of the Kingston Metropolitan Area and the north coast,” he further explained. With the use of handheld devices smartphones, tablets and Wi-Fi devices - customers will be able to access superfast mobile Internet network with connectivity that is expected to be up to 50 megabits per second (Mbps) on the downlink and 5 Mbps on the uplink in areas where the service is introduced. ¤

Providing a weekly service from the UK & Europe to the Caribbean, as well as inter-island services between these islands: Antigua (St. John’s) - Barbados (Bridgetown) - Dominica (Roseau) - Dominican Republic (Manzanillo) - Grenada (St. George’s) - Martinique (Fort de France) - St. Kitts (Basseterre) - St. Lucia (Castries/Vieux Fort) - St. Vincent (Kingstown) - Trinidad (Port of Spain). www.geestline.com

UK Office: +44 (0)1489 873 500

info@geestline.com

OECSBusinessFocus Mar / May

TOURISM

New Luxury Suites for Sandals LaSource Grenada

Chairman of Sandals International Resort, Gordon ‘Butch’ Stewart has partnered with Grenada’s Prime Minister Keith Mitchell to invest US$10 million in the expansion of Sandals LaSource Grenada Resort by summer of 2016.

uring a ground breaking ceremony last week, the duo unveiled plans to expand the resort which currently spans 32 luxury suites to house 257 lagoon nature reserve suites.

“We have had the most extraordinary two years in Grenada where we see the demand for our brand and this destination, soar. So we have decided to invest more in our product here, in an effort to meet the high demand the international travel trade has placed on us for Grenada,” Stewart told media. He added that some 150 construction jobs will be created as a result of the expansion efforts, with more full time employment to be created upon completion. According to Stewart, the new lagoon nature reserve suites will accompany the most sophisticated amenities ranging from butler service, smart TVs and other traditional Sandals opulence. The Caribbean hotel mogul is of the view that travelers are looking for more on their vacation experience and believes that the industry must spare no effort redefining itself. OECSBusinessFocus Mar / May |

“Grenada, one of our newest destinations is part of that redefinition. We challenge ourselves every day to raise our standards and to offer the world new innovations and fresh travel experiences,” said the Sandals founder. Prime Minister Mitchell noted that Grenada’s economy has seen tremendous growth averaging 5.7 per cent for the last two years and credits the resurgence of the spice isle to the growth in tourism. “Our encouraging economic growth is as a result of great performances in tourism and agriculture, and tourism has grown in large measure to the contribution of Sandals. It was only a year ago we were discussing the idea of Sandals opening its marketing center and today one year later the center is well established with 150 high paying jobs,” Mitchell said. Also speaking at the event was local tourism guru Royston Hopkins who acknowledged the tremendous benefit Sandals has brought to the entire industry. Similar sentiments were shared by Grenada’s Tourism Minister, Yoland Bain-Horsford. ¤ www.oecsbusinessfocus.com

LIAT launches New Routes with Caribbean Helicopters Charter Agreement

egional carrier LIAT has entered into a charter agreement with Caribbean Helicopters, based in Antigua and Barbuda, whereby the company will provide LIAT with charter flights into specific markets in the region.

Caribbean Helicopters operates a fleet of Piper Navajo Chieftain PA31-350 and Britten Norman BN2 aircraft, which are ideal for services into some of the smaller Caribbean islands, where demand is limited and a smaller aircraft is required. Customers can continue to book these flights through LIAT, and they will operate with LIAT flight numbers. Beginning January 22, Caribbean Helicopters will operate new services into Dominica Canefield and also to Nevis, on a daily basis. Services to Canefield depart Antigua at 1130 and return at 1240 daily. Flights from Antigua to Nevis depart at 1635 and return from Nevis at 1720.

Nevis and Canefield, Dominica become LIAT’s 19th and 20th destinations respectively. All services will be able to accommodate seven passengers and one piece of checked baggage. The permitted weight is no more than 50 lbs (23 kgs), which is the inclusive amount for both checked baggage and hand baggage. Commenting on the new agreement, David Evans, LIAT’s CEO, said, “We are pleased to be working with Caribbean Helicopters, as this new arrangement allows us to extend our network, open up new markets, and offer more choice to our customers. It is also an example of how locally based airlines can come together to improve connectivity throughout the region.” Neil Dickinson, managing director of Caribbean Helicopters commented: “This is a great opportunity for us and allows us to support LIAT in the expansion of services. Our aircraft are ideally suited to serving the smaller markets in the region.”. ¤

OECSBusinessFocus Mar / May

TOURISM

OECS Begins Process for Tourism Institute

n December 23rd, the OECS Commission signed a Grant Agreement with the World Bank to execute a project to develop a harmonized framework for collecting and reporting Tourism Market Intelligence Data in the OECS.

This framework will allow participating countries to collect, organize, report and use the statistical data necessary for tourism market intelligence and ultimately enhance the quality of decision-making in vital Tourism sector in the OECS. Tourism is by any measure the lead economic sector in the OECS, accounting for almost half of the region’s GDP and labour force respectively. Given this heavy reliance on tourism for economic prosperity in the OECS, it is of paramount importance that the industry is effectively developed and managed to ensure its competiveness and sustainability. The need for accurate, timely and reliable information on the tourism sector cannot be overemphasized in light of the ever-changing dynamic tourism industry. Empirically derived data can play a pivotal role in the OECS in empowering tourism policy makers to make more informed decisions for tourism planning, policy making and marketing. Notwithstanding, there is a notable lack of marketing intelligence available to enable countries of the OECS to monitor tourism market dynamics nationally, regionally and globally. For the most part, the research agenda of most tourism entities in OECS Member States is restricted to the collection and analysis of data on tourist arrivals and expenditure. The methodology for data collection and reporting in Member States also differs across Member States, with the absence of a proper framework for monitoring of global market trends in tourism. Such deficiencies relative to marketing intelligence present dire implications for the ability of OECS Member States to make sound strategic business decisions. This project to develop a regional market intelligence system will involve Diagnosis and Preparation of Recommendations for constructing a harmonized regional approach for tourism market intelligence work, including data collection and analysis, the introduction of a Common Methodological and Institutional Framework for Tourism Market Intelligence; and Capacitybuilding towards standardized and harmonized statistics. The project is expected to commence in January 2016 and end in December 2017. ¤ OECSBusinessFocus Mar / May |

OECS Moves Joint Promotion of the Yachting Sector to Europe

he Organisation of Eastern Caribbean States (OECS) participated in the Boot Düsseldorf Boat Show in January, to increase the visibility of the region in the European market.

After two successful joint promotional activities in the United States and Canada, respectively, the OECS Commission coordinated the joint representation of the OECS at the show. The Düsseldorf International Boat Show, commonly known as Boot Düsseldorf, is highly regarded among the world’s premier boat shows and dubbed: “The world’s biggest boat and water sports trade fair”. With some 1,700 exhibitors from over 50 countries, this professional trade fair is considered a benchmark for the international boat and water sports industry, showcasing state of the art developments in the yachting sector. Dr Loraine Nicholas, the tourism officer at the OECS Commission, said the OECS collective participation at the Boot Düsseldorf boat show is part of the OECS common tourism policy, which is at its advance stage of implementation. The 47th Boot Düsseldorf International Boat Show will be held at the Duesseldorf Exhibition Centre in Messe Düsseldorf, Germany. ¤ www.oecsbusinessfocus.com

Top 10 Most Powerful Passports in the Caribbean

ourism-centred countries are dominating the charts when it comes to the number of countries their citizens can travel to visa free.

Barbados is ranked as the most powerful passport in the Caribbean, followed by Bahamas, Antigua and Barbuda and St Kitts and Nevis, according to a visa restriction index by Henley & Partners, a citizenship and planning firm.

In the Caribbean, Barbados comes in at number 1in the Caribbean where citizens can visit 141 countries without a visa. Bahamas falls in at number 2 with giving their citizens visa free access to140 countries. Antigua & Barbuda follows with 134, St. Kitts and Nevis with 132, Trinidad and Tobago with 130. Saint Lucia comes in at number 6 in the Caribbean with 125 countries where citizens are allowed to travel visa free, St Vincent & the Grenadines; 125, followed by Grenada at 121, then Dominica at 119 and Guyana at 82.

The company ranks nations or territories based on the number of countries their citizens can travel to visa-free to provide a gauge of each passportâ&#x20AC;&#x2122;s travel power. Overall, Germany remains at the top of the pack while those issued in the United Kingdom and the United States rank third and fourth respectively. German citizens can visit a whopping 177 countries without a visa.

Ranked number 61 in the world, and number 11 in the Caribbean is Jamaica with access to 78 countries visa-free. Suriname also just missed the top 10 by four, sitting at position 64 with 74 countries at its citizens disposal for visa-free travel. The rankings are based on visa restrictions that were in place on January 1, 2016. Â¤

One country-shy of 177, Sweden sits in the second place slot with its citizens being granted visa-free entry to 176 countries.

Talent and Imagination from Cover to Cover â&#x20AC;&#x153;we develop and maintain our Clientsâ&#x20AC;&#x2122; Business Marketing Needsâ&#x20AC;?

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Cash for Climate Change Please, Caribbean Leaders Plead ENVIRONMENT

By Desmond Brown EORGETOWN, Guyana, Monday January 11, 2016, IPS – Funding to address the financial flows needed for adaptation and mitigation of climate change remains an issue of concern for the Caribbean.

The region’s leaders say developed countries should continue to take the lead in mobilizing climate finance from a wide variety of sources to prevent disaster to these vulnerable island states. Additionally, the Secretary General of the Caribbean Community and Common Market, (CARICOM), Ambassador Irwin LaRocque, said there ought to be transparency in terms of the commitments countries make. “And I would hope that the commitments that the developed countries have made to provide financing are commitments that they will honour,” LaRocque told IPS. “And I dare add that such commitments to provide financing should not be tied up in all the bureaucratic maneuverings to access these finances.” “We also feel very, very strongly that the vulnerability that our countries exhibit should be a major criteria for accessing those resources and not per capita income,” LaRocque added. The climate change agreement signed in Paris in December recognized the importance of averting, minimizing and addressing loss and damage associated with the adverse effects of climate change, including extreme weather events. With climate change already affecting the region, St. Lucia’s Prime Minister Dr. Kenny Anthony is concerned that there is still a gap between what the politicians are saying on the issue and what the region’s people believe. “There are a lot of people in the Caribbean who have not understood the danger that these islands face. It is true that they have experienced adverse weather systems but they have not translated that experience into understanding that there is a change in the weather systems, the weather patterns because of climatic factors, so we have to translate that to out ordinary people,” Anthony said. ¤ OECSBusinessFocus Mar / May |

Secretary General of CARICOM, Ambassador Irwin Larocque (Left) and Jimmy Fletcher, Minister of the Environment and Sustainable Development in St. Lucia. Larocque said Developed Ccountries Should Honour Their Commitments to Provide Financing. He Adds That Such Commitments to Provide Financing Should not be Tied up in Bureaucratic Maneuverings to Access Thes Finances. (photo: Desmond Brown/IPS) “There is one hopeful sign though, and that is to say the way the young people and the artists of the Caribbean have come together to help us to consolidate our position and to shape our views. Never before have I seen such a great partnership between civil society and the governments. This is an issue that has united us. Ambassador Albert Ramdin, the Advisor to the Minister of Foreign Affairs in Suriname said better communication is needed to address the gap spoken of by Prime Minister Anthony. “We need to communicate better with the people, with our population the impact of climate change. It cannot be that it is an issue that is distant from their lives,” he told IPS. “It has to be conveyed that it is about their life and their future. So communication at the national level is critically important.” Detailed climate modelling projections for the Caribbean predict an increase in average atmospheric temperature; reduced average annual rainfall; increased sea surface temperatures; and the potential for an increase in the intensity of tropical storms. Climate change is a serious threat to all Caribbean nations even though they have a low contribution to global greenhouse gas (GHG) emissions Due to their size and location, the Caribbean islands are especially susceptible to the impacts of climate change. As developing economies, according to the Inter-American Development Bank (IDB), they are relying on various sectors that are vulnerable to the climate, like tourism, agriculture and fishing. Caribbean nations would be detrimentally affected by a continued rise in sea levels, changes in rainfall and temperatures, and increasing weather changes and natural disasters highlighted by the Intergovernmental Panel on Climate Change (IPCC). The cost of inaction to the Caribbean could be very high, says the IDB. It says projections indicate that losses could total US$22 billion annually by 2050. That figure is approximately 10 per cent of the current Caribbean economy. Climate change resources, it says, could help the region reduce fossil fuel dependence and exposure to price variability and mitigate climate change. ¤ www.oecsbusinessfocus.com

Jamaica Invests in Renewables

y year’s end, Jamaica will add 115 mega watts (MW) of renewable capacity to the power grid, in its quest to reduce energy costs and diversify the energy mix in electricity generation to 30 per cent by 2030.

With 90 per cent of its electricity coming from fossil fuels, the government is committed to reducing the country’s carbon emissions by increasing the amount of electricity generated from renewables from 9 per cent now, to 15 per cent by 2020. Junior Minister Julian Robinson told IPS via email, a National Energy Policy is guiding actions to cut costs and comply with the international agreements to reduce carbon emissions; among them are plans to reduce the amount of electricity generated from petroleum from 95 to 30 per cent. Reliance on fossil fuels is also costing the country in terms of high local pollution, healthcare costs and its contribution to global climate change. According to Jamaica’s 2nd National Report to the United Nations Framework on Climate Change (UNFCCC,) in 2000, the energy sector accounted for 86 per cent of the 9,532 Giga-grams (Gg) of carbon dioxide emissions, up 1,114 Gg over 1994. And according to business leaders, the high energy cost is a major barrier to the country’s economic development and is a leading cause of business failure in the country. At 0.40 cents per kilowatt-hour, Jamaicans pay one of the highest rates for electricity in the region. In 2011, US$1.48 billion or 15 per cent of the country’s Gross Domestic Product (GDP) was spent on petroleum imports. Even with oil prices currently hovering at an all-time low of below US$34 per barrel, a falling Jamaican dollar, the possibility of

higher petroleum prices and as much as 22.3 per cent generation and distribution losses (at 2011 estimates) mean the country is unlikely to divert from the course set by the energy policy. More than US$200 million were invested to bring a mix of wind and solar projects online. The Office of Utilities Regulation (OUR), the agency responsible for overseeing the operations of utility companies, approved 80MW of additional capacity by way of Blue Mountains Renewables’ (BMR) 36.3 MW wind farm and a 24.4 MW addition to the state-owned Wigton wind farm. To complete the 115 MW of renewable energy commissioned in 2015, Content Solar Limited (CSL) -a Jamaican subsidiary of the Florida based WRB Enterprises – was approved and began construction of a 20 megawatt solar photovoltaic facility, which president Robert Blenker noted will supply enough electricity to power 20,000 homes. WorldWatch Institute’s Sustainable Energy Roadmap for Jamaica 2013 stated that increasing the number of households using solar water heaters, could save an additional 75 to 100 GWh of electricity per year. It concluded that there was a need to create a “smooth transition” to a sustainable and economically viable energy system. Experts say that by making the switch to an electricity system based mainly on renewables could save the country as much as US$12.5 billion by 2030, freeing up much needed cash for public and social spending in a country that according to 2012 estimates, spends around 54 per cent of its earnings on debt servicing. ¤ Courtesy IPS News Hub OECSBusinessFocus Mar / May

IN THE KNOW

Jamaica Swears in A New Prime Minister

Belize’s Dean Barrow Now CARICOM President

The Prime Minister of Belize, Hon. Dean Barrow, is now the new President of the Caribbean Community. He will assume the responsibility for a period of six months in an effort to strengthen CARICOM and provide greater benefits for its people.

New Jamaican Prime Minister Andrew Holness after he was sworn in (Jamaica Observer photo)

amaica’s new Prime Minister, Andrew Holness, was sworn in on March 3, after a narrow general election win.

Holness’ Jamaican Labour Party replaced the People’s National Party after winning 32 of 63 parliamentary seats in last week’s election, with some constituencies decided by just a handful of votes. “The priority of this government is to grow the economy and create meaningful jobs,” Holness said in his inauguration speech in Kingston. “In so doing, we will more rapidly and sustainably reduce debt.” Holness vows to increase growth and cut taxes in a reversal of the previous government’s austerity programme. “Our government will ease your tax burden, but you must invest and spend wisely,” he added, encouraging Jamaicans to spend on the local economy to create jobs in manufacturing, housing and agriculture. Unemployment still hovers around 13 percent on the island of 2.7 million, hitting 38 percent for young people. Holness has promised some 250,000 jobs and said he envisioned Jamaica becoming a center for finance and technology in the Caribbean. The top three global ratings agencies – Standard & Poor’s, Fitch, and Moody’s – have all upgraded Jamaica’s sovereign debt in recent months and predicted the new government would maintain the country’s agreement with the IMF. ¤ OECSBusinessFocus Mar / May |

he official handing over of the chairmanship took place on January 7.

In his speech upon being named the new Chairman of CARICOM on January 1, P.M Barrow stated and we quote “The resolution is to continue to strengthen our integration movement to deliver ever-increasing benefits to the people of our community. We will continue our quest to improve our standard of living through providing a safe, viable and prosperous Caribbean Community, in doing so we will build on our successes and will be moving forward with a number of initiatives to achieve that aim”. End quote. Barrow has committed himself to build on past successes and looks forward to increasing the pace of the CARICOM Reform process and to implement the Community strategic plan for the years 2015-2019. The plan is originally designed in order to help develop CARICOM’s economic, environmental, social and technological resilience by forming an alliance with the Caribbean Single Market and Economy (CSME). Apart from development, Barrow has a vision to join forces with other states including Belize, Barbados, Dominica and Guyana in order to make the Caribbean Court of Justice their final court. “In my view, another relevant factor in the lives of our people is the Caribbean Court of Justice. The creation of our own jurisprudence will help define us as a people, and the excellent, well-reasoned judgements, which have been the hallmark of the CCJ, are ample proof of the intellectual quality of the legal minds of this community. During my stewardship of the Community, I look forward to more Member States joining the four of us in the Appellate Jurisdiction of the CCJ.” ¤ www.oecsbusinessfocus.com

Heineken Extends Offer After 86% Acquired in D&G

Ambev Wins Takeover Battle for BHL

he battle for Banks Holdings Limited (BHL) is over and the winner is AB InterBrew’s major Brazilian subsidiary, AmBev. According to a shareholders circular issued by the BHL board on Friday, Ambev, through its subsidiary SLU Beverages acquired just over 50 per cent of the shares in the Barbados brewery last week when it agreed to purchase close to 6.5 million shares at Bds$7.10 on the floor of the Barbardos Stock Exchange (BSE). BHL will become a part of the world largest Brewer of beer, Anheuser Busch InterBev once the trades have been finalized. Ambev’s acquisition of control over BHL means it would have purchased around two thirds of the 15 per cent of shares so far changing hands on the BSE. This suggests that Ansa has the other five percent, which when added to its shares acquired from the purchase of Blue Waters Holdings, would bring its stake in BHL to around 18 per cent at present. The BHL circular advises remaining shareholders not to pledge their shares to Ansa, stating that the requirement for 51 per cent was unattainable, and instead it should sell to AmBev, which it directors were doing with their own shares. In its most recent offer for the BHL shares, which is dated December 2, Ansa McAl varied its offer by increasing the price set to Bds$7.20 for each common share and by stating “it may be withdrawn by the Offeror if an aggregate number of Common Shares representing not less than fifty one per cent (51 per cent) of the Common Shares that are outstanding and not already owned by the Offeror are not tendered to the Offer.” The offer was open for acceptance until January 11, 2016. In its circular, the BHL board clearly considered this new condition to be a game-changer, saying, “The AMC Amended Offer No 3 introduces, for the first time, a condition of a minimum requirement of shares to be tendered to AMC.” ¤

nternational brewery giant Heineken will extend its offer to acquire all outstanding shares in local brewery Desnoes & Geddes to January 21, but already has sufficient take-up to delist the stock.

According to a statement from Heineken Sweden AB, an indirect wholly owned subsidiary of Heineken, the original closing date was December 22, 2015. In early December the Financial Gleaner reported that Heineken had already surpassed the 80 per cent mark, which would trigger the delisting of D&G from the Jamaica Stock Exchange. At the time, NCB Capital Markets, the broker to the deal, avoided revealing the precise percentage garnered by the beer giant. The acquisition of D&G, which operates as Red Stripe Jamaica, forms part of Heineken’s drive to grow its earnings in faster growth markets outside of Europe, which are predominantly in emerging markets. It announced, in early November, plans to spend up to US$194 million to acquire all outstanding shares in D&G. Minority owners will be paid US$$0.259 per share. ¤ Courtesy: Jamaica Gleaner

Courtesy: Trinidad and Tobago Guardian OECSBusinessFocus Mar / May

IN THE KNOW

World Bank to Withhold FunDS Pending LGBT Law Review Caribbean Countries Face Sanctions for Non-Implementation

eveloping countries including those in the Caribbean will be sidelined from World Bank funding in projects which could endanger LGBT.

World Bank President Jim Yong Kim

This comes after disclosure by President of the World Bank Jim Yong Kim who was speaking at the Economist’s Pride and Prejudice’ conference taking place in London, New York and Hong Kong. The World Bank is an international financial institution that specialises in providing loans to developing countries for projects, assisting in their development and creating infrastructure to help tackle poverty. “We’re trying to look at another principle that is important, that that principle is that if something we support leads not only to discrimination but endangerment, don’t we as an institution have to stand up and say ‘no’? Explaining why the bank cut off lending after Uganda passed an AntiHomosexuality Act, he said: “In 2014 the Ugandans had passed a law, and it was quite a bit more draconian than a lot of the laws that exist: it said homosexuality would be punished with life imprisonment, but it became a requirement that anyone who suspects others of homosexuality had to report that also. “Right at that moment we were about to approve a $90 million loan to support health clinics in Uganda. “I worked as a doctor, and this is an important issue for me… but we looked carefully and we found out that it was possible that active discrimination could happen in these clinics, and because of the requirement to report homosexual behaviour, gay men and women could go to these clinics… and we could actually endanger people from the LGBT community, so we had to stop that loan.” Speaking about progress to draw up a consistent policy, he said: “One of the things that we’ve done is that we’ve put into a new version of the draft safeguards explicit language that says discrimination against LGBT people will not be tolerated. “This is new and it’s not passed yet – I push as far as I can, but I have to step back because this is a 70 year old institution with laws and regulations and procedures, and so this is a decision that will ultimately be made by the board. “But we’ve put them in there, and we are committed to continuing to look at every single thing that we do, to see if our lending is leading to discrimination or even endangerment [of LGBT people].” ¤ OECSBusinessFocus Mar / May |

www.oecsbusinessfocus.com

22 Bids Opened for Feasibility and Design of New Demerara Harbour Bridge

UN launches new sustainable development agenda for next 15 years

he New Year ushers in the official launch of the bold and transformative 2030 Agenda for Sustainable Development adopted by world leaders last September at the United Nations. The new Agenda calls on countries to begin efforts to achieve 17 Sustainable Development Goals (SDGs) over the next 15 years. “The seventeen Sustainable Development Goals are our shared vision of humanity and a social contract between the world’s leaders and the people,” said UN Secretary-General Ban Ki-moon. “They are a to-do list for people and planet, and a blueprint for success.” The SDGs, unanimously adopted by the UN’s 193 Member States at an historic summit in September 2015, address the needs of people in both developed and developing countries, emphasising that no one should be left behind. Broad and ambitious in scope, the Agenda addresses the three dimensions of sustainable development: social, economic and environmental, as well as important aspects related to peace, justice and effective institutions. The mobilization of means of implementation, including financial resources, technology development and transfer and capacity-building, as well as the role of partnerships, are also acknowledged as critical.

The Paris Conference on climate change is seen by many as the first test of political will to implement the Agenda. “The Paris Agreement is a triumph for people, the planet, and for multilateralism. For the first time, every country in the world has pledged to curb their emissions, strengthen resilience and act internationally and domestically to address climate change. By addressing climate change we are advancing the 2030 Agenda for Sustainable Development,” said the UN Secretary-General. Turning this vision into reality is primarily the responsibility of countries, but it will also require new partnerships and international solidarity. Everyone has a stake and everyone has a contribution to make. Reviews of progress will need to be undertaken regularly in each country, involving civil society, business and representatives of various interest groups. At the regional level, countries will share experiences and tackle common issues, while on an annual basis at the United Nations, the High-Level Political Forum on Sustainable Development (HLPF), will take stock of progress at the global level, identifying gaps and emerging issues, and recommending corrective action. The 17 Sustainable Development Goals and 169 targets of the new agenda will be monitored and reviewed using a set of global indicators. ¤

even European and four Chinese companies as welll as several others in association with Guyanese firms are among 22 companies that have shown interest in the construction of a new Demerara Harbour Bridge. The companies did not submit bids to construct the new thoroughfare, but instead were required to express interest to conduct a feasibility study and design the bridge. Among the bidders is Ballast Nedam, which has built several robust bridges in neighbouring Suriname and around the world. The Netherlands-based company was at one time selected to build the Berbice River Bridge but a memorandum of understanding was later scrapped around 2007. Also in the runnings are chinese companies, China Railway First Group, China Harbour Engineering (CHEC), Zhejiang Provincial Institute of Communications, Planning, Design and Research, and China Shandong International Economic and Technology Competition Group Limited. Companies from Caribbean Community (Caricom) member states also submitted bids to conduct the feasibility study and design the new Demerara Harbour Bridge, including VIKAR Enterprises of Trinidad and Tobago, CTE in association with NV Rustwijk and Rustwijk of Suriname, WSP Caribbean Limited from Trinidad and the Guyana-based Stunning Nisi Inc. The 1.25 mile long Demerara Harbour Bridge- the main link between East and West Demerara for people and cargo- was opened in July 1978 and was expected to last only 10 years, but its life-span has been expanded. ¤ OECSBusinessFocus Mar / May

ANGUILLA ANTIGUA

Minister Reveals Five Hopeful Projects for 2016

t a recent meeting of the House of Assembly, Richardson outlined projects that he hopes government will undertake in 2016.

“In 2016, we have five main projects which I believe the Government needs to align so that we can get on with some specific action regarding these projects. They are the Blowing Point Port Development; the Sandy Ground Jetty; the Airport Development and Expansion Project; the road that connects the Jeremiah Gumbs Highway with the George Hill Road to provide a bypass for travellers to [and from] the Blowing Point area; and the Sandy Ground Chapel Hill Road.” The Minister gave a detailed explanation about the projects as follows: “Those are the five projects we will definitely be trying to get all the paper work in order for. We will hopefully accomplish some of them in 2016 and some will run over in 2017. I believe the Blowing Point project is an expensive project. Its construction should take us well into 2018, 2019 and probably into 2020. We will work hard towards getting the financial aspects and all the relevant engineering plans in place. Among the things already approved, in the design drawings, is the whole reconfiguration of the ferry terminal. But what I envision to have incorporated into the project is a shopping mall which someone is interested in financing – is coming to Anguilla later in the year – and I will be introducing that person to the Chief Minister.” The Minister of Infrastructure continued: “For the Sandy Ground Jetty, we have two options. One is, specifically, that we can borrow the money from Social Security. It is about three to four million dollars. The second option is that we have a proposal from a financier who is interested in financing the project and giving Government four to five years to repay him at a particular low rate. “As it relates to the Airport Development and Expansion Project, I am glad that this season a lot of people have another opportunity to see [the number of jets in Anguilla]. In a country you must have vision. As a young man I have travelled a lot and I will not sit in Government and allow the idea of expanding the airport to rest. I believe the time has come for Anguillians to travel from Anguilla straight to New York and direct from New York to Anguilla, and to do the same in the case of Miami and England. It does not have to happen every day, but it must happen at least once a week or once every two weeks. We must have the means of accessing these gateways so that we can raise the standard and viability of Anguilla as a major player in the world in terms of travel and a place for relaxation.”

Mr. Curtis Richardson

The Hon. Minister of Infrastructure in the Government of Anguilla, Curtis Richardson, has called on Government’s Ministry of Finance to create the economic and employment opportunities whereby the people of Anguilla can invest and derive various benefits.

OECSBusinessFocus Mar / May |

Mr. Richardson also has responsibility for fishing and agriculture, among other sectors of the economy. “Fishing and agriculture represent another charge that I have,” he added. “I intend to work on them specifically and to promote them heavily in the New Year. But the five projects I outlined earlier are what I will mainly be pursuing.” ¤

www.oecsbusinessfocus.com

Anguilla and St. Maarten Law Enforcement Holds Bilateral Talks

aw Enforcement Officers from Anguilla and St. Maarten on Thursday 10th December, 2015 met in Anguilla at Police Headquarters to hold bilateral talks on security and intelligence for both islands.

The meeting hosted by the Royal Anguilla Police Force and chaired by Acting Deputy Commissioner of Police Elliott Forbes was attended by Police, Customs and Immigration Officers. Attending the meeting from Anguilla were Chief Immigration Officer, Ms. Laureen Bryan and Comptroller of Customs, Mr. Travis Carter and other members of staff of both agencies as well A/Sgt. Charles Richards from the Marine Department. The St. Maarten representative included Mr. A. J Doran, Head of Customs and Mr. Cederik A Werleman, Head Support Station St Maarten, Dutch Caribbean Coast Guard and other members of staff.

Bilateral Participants The talks which focused on issues and challenges facing each agency revealed that drug trafficking, firearm trafficking and firearm related incidents as well as illegal immigration affected all the parties concerned in some way or another, some greater than others. “We all recognized that greater attention needs to be placed on our borders by improving control on both sides as well as collaborating with each other,” said Acting Deputy Commissioner of Police Mr. Forbes. “We must work closer together developing better working relations in an effort to combatting the illegal activities that affects us all.” It is anticipated that there will be quarterly meetings organized in the near future between the islands with the inclusion of the French as well. ¤

OECSBusinessFocus Mar / May

ANTIGUA

Antigua Scraps Personal Income Tax

Tighter Scrutiny for CIP Due Diligence Checks

ffective April 2016, personal income tax will be abolished in its entirety,” that’s how Prime Minister Gaston Browne announced the end of a measure that has been in place since April 2005.

Browne, who is also finance minister, was delivering the 2016 budget in Parliament when he gave the news. While personal income tax (PIT) will be removed other taxes will be increased. “The loss of $37 million from the elimination of personal income tax will be partially substituted, and I emphasize partially substituted, by an increase in the revenue recovery charge, the RRC, from 10 per cent to 13 per cent, which is expected to yield an additional $20 million in revenue,” he told the House. Browne reasoned that the substitution would be a net reduction of the tax burden of about $17 million. He did not mention, however, the increasing rates of payroll deductions going to Social Security and Medical Benefits and that water rates are also expected to go up. While the changes in line for water and Medical Benefits have not yet been detailed, Social Security Executive Director David Matthias has said that starting with a 2 per cent increase this year, employer and employee contributions to Social Security will rise annually until the combined rate is 15 per cent. The removal of PIT was a major plank of the Antigua and Barbuda Labour Party’s 2014 election campaign. The administration came under fire when, just after the election, it announced that it would be too devastating to government finances at that time to cut the much disliked PIT. ¤

OECSBusinessFocus Mar / May |

ven as government sets a US $200 million target in revenue from the Citizens by Investment Programme (CIP) this year, the head of the Citizens by Investment Unit (CIU) said changes will be made to ensure the due diligence process is not compromised.

The unit’s Acting Chief Executive Officer Thomas Anthony said the process will be tightened in the face of global security concerns. He added that the entire system will be fully automated to speed up the process of handling the applications for investors and their families who are desirous of obtaining Antiguan and Barbudan citizenship. “That will help us to process applications more quickly, but the background checks itself will continue to take an average of about 30 days on a good application. Those are people who would have had a footprint in more than one country for more than six months in the last 10 years; it would necessitate a background check in all those countries they would have lived,” Anthony said. The average processing time for an applicant is 30 days given the fact that this service is subcontracted to private due diligence providers who have several years of experience. Anthony further explained that the unit conducts its background checks by using online resources, many of which are not available to the public. The data is then compiled and sent to one of three providers attached to the programme; an enhanced check is also completed by another agent. ¤ www.oecsbusinessfocus.com

20 PER CENT MORE FOR SOCIAL SECURITY

he Antigua & Barbuda Social Security Scheme is expecting to collect 20 per cent more in revenues when the proposed increase comes into effect later this year.

On Tuesday, the scheme’s Executive Director David Matthias told the nation that employers and employees will each be contributing 1 per cent more to make up the proposed 2 per cent increase. However, the actual amounts that will go into Social Security’s coffers will translate to be 25 per cent more in employee contributions, and an additional 16.667 per cent from their bosses. OBSERVER media spoke with several companies that have already started calculating the monies they will be forced to come up with in light of the proposed rate increase. The business owners, who did not wish to be named, said the impending hike spells disaster for the economy that is already facing serious hardships. One operator of a food distribution company indicated that the combined increases to employee and employer contributions would cost his establishment more than $40,000 per annum. Another, a businessman in the auto industry opined: “We all know Social Security and Medical Benefits should not have any money problems but they invested in all kinds of fancy loans and companies that failed. To me, it’s like they are trying to regain all the money they lost. “One per cent increase may not seem like much but there have not been any salary increases in both the public and private sectors, because businesspeople just can’t afford to,” he said On the other hand, a businesswoman lamented that she would have to find creative ways to keep up with the latest demand since she already shells out over $6,000 in employer’s contribution. The proprietor said she will now have to come up with more than $1,000 just to cover her contribution to the scheme.

“I mean, how are you to keep everyone on your payroll when the new cost is half of a full month’s pay? The amount of people I have that owe me and I want to be tough on them but I realise things hard. To pay a bailiff, to pay a lawyer to go court all cost money that I just don’t have,” she said. OBSERVER media also interviewed the proprietor of another company who said that the increase would scrape an additional combined $4,200 per month from the coffers of the business and the pockets of its 70-plus employees. That company’s manager said that sum would be in addition to the $21,000 per month that it already pays to Social Security, on monthly basis, to cover employer and employee contributions. Once this new increase takes effect, it will represent an overall increase of 50 per cent in contributions to the scheme, in just three years. In 2013 contributions jumped from 8 per cent to 10 per cent. Political Leader of the Opposition United Progressive Party Harold Lovell said up to 2014, Social Security was collecting $9.5 million per month, and he’s questioning how this amount has been reduced to $7.5 million just two years later. The reduction, he said, could only be the result of a reduction in compliance or an increase in unemployment. But, he added, this increase and other pending increases, will be a burden on the backs of the poor who cannot afford it. “We felt that any further increases should be accompanied by other benefits; an employment injury benefit and an unemployment benefit. What we are seeing is an increase in rate and no benefits and for those two primary reason it says to me that the government needs to come to the people and explain,” Lovell said. The UPP leader said the increase in the Social Security contributions will also impact employers’ decision to hire staff, and under the circumstance, more staff means added expenses. The proposal, he added, ought to have been discussed with the Employers Federation, trade unions, the Chamber of Commerce, and others. ¤ OECSBusinessFocus Mar / May

BRITISH VIRGIN ISLANDS

Contract Signed for The Rehabilitation of Nottingham Estate

Non-Stop Flights Between Miami and BVI Coming Soon

he Government of the Virgin Islands, through the Ministry of Communications and Works, is continuing rehabilitation works to repair damage caused to the Territory’s roads in 2010 as a result of Tropical Storm Otto.

long awaited air link could soon become a reality. And it could be a game-changer for British Virgin Islands tourism.

The government of the British Virgin Islands has partnered with air carrier BVI Airways on what will be the firstever direct, nonstop flights between Miami and the British Virgin Islands.

Government today signed a contract for the construction of two major retaining walls and slope stabilisation at Nottingham Estate.

The government is investing $7 million to develop the service with BVI Airways between Miami and Beef Island airport in Tortola.

The contract was awarded to the joint venture company of G-Unit, owned by local contractor Mr. Gregory Hodge, along with Mr. Junior Mathias, also a local contractor.

The direct flights will be operated on an RJ85 regional jet, which will be converted to accommodate 86 passengers. The flights, which are slated to launch this fall, will take around 2.5 hours each way.

Minister for Communications and Works, Honourable Mark Vanterpool expressed satisfaction for the continued works taking place to repair damages around the Territory. Honourable Vanterpool said, “I am very happy to note, that we continue to use local contractors to execute these works, and I am even more pleased to see that our local contractors are teaming up to undertake these infrastructural development projects. This speaks volumes, for your commitment to work with the Government and own a stake in the development of our Virgin Islands”. Contractor Mr. Gregory Hodge thanked the Government for awarding them the contract. He also encouraged joint ventures among local contractors. The Nottingham Estate project is valued at $669,022.02. This is the eighth contract executed under the Infrastructure Rehabilitation Loan Programme funded by the Caribbean Development Bank (CDB) which approved $15,670,000.00 in March 2013 in order to carry out rehabilitation works of this nature. To date, work has been executed for engineering consultancy planning regulations and construction works amounting to $6,120,047.47. ¤ OECSBusinessFocus Mar / May |

“As a result, we expect consequential infrastructural development in the tourism sector; higher participation of BVI businesses in activity outside of the BVI; and ultimately more employment opportunities for our people,” said BVI Premier Dr Orlando Smith. “The partnership with BVI Airways is meant to fill the immediate need to solve our air access issues and constitutes another investment by my Government in the continued development of the BVI economy and its people.” The flights are slated to begin with daily service, with an potential expansion to two or three daily flights in the high season. “As a tourism destination, we will for the first time take charge of our future and our collective objective of building a year round destination, tapping new markets, expanding our annual calendar of events and growing events such as the Lobster Fest, doing more in sports tourism, we will have an airline partner for our summer and fall packages, and yes tapping into the BVI Brand in the financial services space to encourage more persons to do business here as well as vacation in the BVI,” said Russell Harrigan, chairman of the BVI Tourist Board. “Additionally, this flight also has the potential to create completely new business opportunities. ” ¤ Courtesy Carib Journal www.oecsbusinessfocus.com

‘New Air Access Will Attract More Financial Services to VI’ – Julien N. Johnson

MARTINIQUE

ROAD TOWN, Tortola, VI – Executive Director of BVI Finance Julien N. Johnson has described as critical the reality of direct air access to and from the Virgin Islands from Miami, Florida, USA, calling the development a welcomed one for the financial services sector whose personnel need such direct access.

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As we all know the BVI is home to many of the world’s major financial services players,” he said, speaking at the launch of BVI Airways’ service to and from Miami International Airport held at the offices of BVI Finance in Road Town on Tuesday January 12, 2016.

Government has come in for severe criticism for pumping $7 million into BVI Airways, a foreign-owned entity, to allow them to be able to offer a direct service to and from Miami, Florida, USA, while local business, contractors, and Government workers cannot be paid as Government is saying that they do not have money. “We are home to a melting pot of professionals from every corner of the globe... professionals who travel frequently for business, to reconnect with family and friends and to explore other interests, professionals whose time is as valuable as the money in their bank accounts,” Johnson said. “Any development which makes it easy to travel to the BVI will have significant value to anyone who calls the BVI home,” he said. According to Johnson, BVI Finance is seeking to enhance the sector by repositioning some of the products offered to allow new players to come on board. This he said is being done in the captive insurance sector and the mutual funds sector among others initiatives. As such, he said attracting business to the VI means creating an environment that is friendly for business. “Any company that is seriously considering doing business in the BVI will thoroughly examine the ease and practicality of doing business from within our shores,” he said. “They will consider many things, including the ease of getting to and from the BVI.” Johnson noted that the success of the territory’s Arbitration Centre and Commercial Court would largely be dependent on how quickly people can come into the territory. Further, he said the new air service would aid in the process as the VI seeks to do more business with Latin America and South American nations such as Brazil. ¤

Norwegian to Resume Service to Martinique

ow-cost, long-haul airline Norwegian will resume its seasonal winter service to the French Caribbean following a successful first winter season.

Nonstop service from Baltimore-Washington International Thurgood Marshall Airport (BWI), Logan International Airport (BOS) and John F. Kennedy International Airport (JFK) to Martinique will begin on November 10. Norwegian’s service between the United States and the French Caribbean began last December. The flights for the 2016 winter season will operate three times per week to Martinique from New York, and twice per week to Martinique from Baltimore/Washington, D.C. and Boston, respectively. “…We are pleased to see the positive response from American travelers who are now enjoying easier access and affordable fares to the Caribbean, and if demand continues to grow, we hope to make this a year-round service,” said Thomas Ramdahl, Norwegian’s chief commercial officer. “This winter’s air service to Martinique with Norwegian is a great success, and US visitors are enthusiastically discovering this gem in the heart of the Caribbean that is Martinique,” said Muriel Wiltord, director Americas for the Martinique Promotion Bureau. “Having Norwegian announce its service to Fort-de-France for 2016/17 is truly exciting! Our US visitors will be able to book early for the next winter season at an excellent rate, while benefiting from modern and comfortable air service. The word is spreading about easy access to Martinique Magnifique, its superb cuisine, magnificent scenery, rich culture and traditions, excellent road network, and generous people, to name a few. We are looking forward to welcoming more and more guests from the United States with open arms.” ¤ OECSBusinessFocus Mar / May

DOMINICA

IMPROVING THE BUSINESS CLIMATE FOR THE YACHTING SECTOR IN DOMINICA

otwithstanding the challenges and technical hitches influenced by current economic conditions, the Government of the Commonwealth of Dominica remains resolute in pursuing one of its main goals for growth and development of the island’s tourism yachting sub-sector. The Ministry of Tourism and Urban Renewal in particular is continuously seeking ways to exploit the island’s comparative advantages and notable opportunities for development that would enable Dominica to expand its share of the yachting segment and experience such remarkable economic gains like regional competitors of Grenada and St. Kitts/Nevis. As part of its thrust towards supporting the development of this important subsector and the livelihoods of those who depend on it, the Ministry of Tourism has in recent times undertaken some key project activities towards improving specific aspects of the yachting experience. In that regard, the Ministry has formed strong partnership with the Portsmouth Association of Yachting services (P.A.Y.S.), an essential stakeholder to the development of tourism particularly to the north, and has accomplished notable achievements that will serve as spurs/offshoots towards the development of a sustainable yachting sub-sector for Dominica: 1. (a) Construction of a 94ft jetty at Purple Turtle, Portsmouth, Phase 1 – The construction of a 94ft concrete jetty carries a project cost of $170,000.00. The jetty is complemented with lumber planks that are removable during rough weather to allow for protection. This aspect serves as phase 1 of this project, as there are plans to support this project though a second phase by expansion through an additional 100ft and installation of lighting. Apart from the benefit of an improved aesthetic appeal to the Purple Turtle Beach, yachters can now experience the safety, ease and convenience of berthing that this much needed jetty will add to their yachting experience. 2. (b.) Security Boat - The Ministry of Tourism has given equal consideration to the security of yachters (also own as “yachties”) while on stay at the island’s esteemed Prince Rupert’s Bay. Accordingly, the Ministry has invested in the provision of a security boat for use by P.A.Y.S in their execution of security services, to ensure the safety of this important segment of visitors to our shores. The Ministry of Tourism has provided the necessary assistance in the provision of an engine, a replacement engine, fenders, training and certification and recognition to facilitate commissioning and efficient operations of the vessel. To OECSBusinessFocus Mar / May |

date, this boat has been actively utilized to provide services to the very fragile sub-sector; a fact that was lauded recently by a visitor to the island. 3. (c.) Moorings: The creation of a mooring field - The Ministry of Tourism hasalsoset the stage for the development of a mooring field at Prince Rupert’s Bay. The commencement of phase 1 of this project is marked by investment in the manufacture and installation of moorings each with a dimension of 18ft x 4ft x 4ft and at a cost of EC$2,500 ea. It is expected that at the end of this phase, twenty-five (25) moorings would have been manufactured and installed. The grand benefits to be derived from the creation of this mooring field are numerous as it will eliminate the need to share moorings between yachts which poses damage risk from contact. Importantly, quite apart from being able to accommodate an increased number of yachts, there is benefit to the natural ecosphere as an increased number of moorings will discourage the need for yachters to use anchors which are noted to destroy coral reefs and sea bed. This very significant instigation by the Ministry for a mooring field coincides with the efforts of investor, Mr. Hank Schmitt of The Mooring Field Development Foundation who has been working relentlessly with P.A.Y.S in offering technical and some financial assistance towards this initiative. To that end, the Ministry has partnered with Mr. Schmitt in the organization of the impending Yachtie Appreciation Week scheduled to take place from February 14th – 21st 2016, by which time installation of the 25 moorings, phase 1, should have materialized; 150 yachters are expected in anticipation of this event.

Looking Ahead In addition to this strengthened partnership, stakeholders in the tourist industry can look forward to even greater investments by the State in the yachting sub-sector because the Ministry is actively pursuing other avenues of support through the OECS High Commission in Brussels. The foundation for that effort was laid in November and December; first, during a visit by Her Excellency Dr. Len Ishmael (OECS Ambassador to Brussels and the European Union) and second, through two stakeholder forums held. Through this initiative by the Ministry of Tourism and Urban Renewal, we can expect support for the sub-sector in policy development, infrastructural development, the acquisition of equipment, training for frontline stakeholders, and public information campaigns. ¤ www.oecsbusinessfocus.com

CDB Approves US$30M Loan to Assist Dominica with Reconstruction Post Erika

he Board of Directors of the Caribbean Development Bank (CDB) approved a loan of USD30 million to the Government of Dominica, recently. The loan is to assist with recovery from the impact of Tropical Storm Erika, while reducing the risks associated with landslides and flood hazards. This will include the rehabilitation and reconstruction of critical infrastructure within the Roseau and Layou Valleys, as well as the conducting of a feasibility study for proposed infrastructure work along the Pointe Michel to Soufriere corridor. Specific areas to be impacted include the road network within the Roseau and Layou Valleys, which will benefit from slope stabilization, road reconstruction, drainage works, the full reconstruction of Trafalgar Bridge, rehabilitation of the Copt Hall Bridge ,and the realignment and reconstruction of Wotten Waven Bridge. Daniel Best, Director of Projects, CDB, said that the intention is to restore the infrastructure to better than pre-Erika levels, while building on lessons learnt during the passage of the storm. “Landslides and flooding were the major causes of loss, fatalities and injuries during the passage of Erika. Major sections of the road network were rendered impassable as a result of land slippage, fallen trees and flooding. This project is intended to restore the damaged infrastructure, as well as mitigate against future incidents of land slippage and flooding, while ensuring continued safe access.” The CDB Board also approved a grant of USD149,500 to assist in financing the engagement of two engineering design consultants with expertise in Structural Engineering, with emphasis on bridge and drainage design; and Hydraulic Engineering, with emphasis on surface water drainage and coastal hydraulics. Tropical Storm Erika ravaged Dominica on August 27, 2015, and an initial World Bank led assessment of the total damage and loss was estimated at USD483 million, which is equivalent to 90 percent of Dominica’s Gross Domestic Product (GDP). Previous assistance provided by CDB in the wake of Tropical Storm Erika includes an Emergency Response Grant of USD200,000 and an Immediate Response Loan of USD750,000. Additional grant funds of USD700,000 were provided through CDB’s Basic Needs Trust Fund. ¤

Small Businesses Getting Back on Their Feet After Tropical Storm Erika Losses

R reporting.

OSEAU, Dominica, Monday January 11, 2016 – Many small businesses which suffered during Tropical Storm Erika last August have begun getting back on their feet, the Minister of Commerce Enterprise and Small Business Development Roslyn Paul is

Paul said her ministry had spent more than EC$144,000 (US$53,333) to help revive the affected operations. “We started with the micro businesses like shopkeepers and vendors who had estimated their losses at EC$15,000 or less. So far, we have to provided assistance to 71 such businesses at a cost of EC$144,371 (US$53,470),” she said, adding that the next phase would be assisting those whose losses were more than EC$15,000 (US$5,555). The focus was first given to the most heavily impacted areas – the communities in the south – that were flooded when Tropical Storm Erika hit the island, causing millions of dollars in damage to infrastructure and claiming lives. Most of those southern areas estimated losses above the EC$15,000 (US$5,555) mark. Paul said the feedback so far to her ministry’s efforts has been exceptional. “The people have been appreciative of that support because it came just before Christmas and they were able to restock their shops,” the minister said, further assuring business owners that have not yet received assistance that they have not been forgotten. Paul says that in the meantime, the ministry is also developing new initiatives to assist small business owners all across the island. ¤ OECSBusinessFocus Mar / May

GRENADA

Grenada to Develop

Climate Smart Agriculture

Grenada Launches its “Buy Local” Campaign

he Ministry of Trade in Grenada is continuing its efforts to help local consumer become more knowledgeable of the products being offered by Grenadian manufacturers.

The Ministry launched its 3rd annual Buy Local Campaign early January, which runs through to March 27. At the launch, Trade Minister Oliver Joseph called on locals to appreciate locally manufactured products, thus supporting local entrepreneurs which will in turn cut back on the country’s import bill allowing for the circulation of more money among local manufacturers. “Our first market is our local market, and when we have successfully penetrated our local market, we know we are ready for the export market. We must get acceptance for our products,” said Joseph. The campaign has proven to be a success over the years, exposing local manufacturers to wider markets. ¤ OECSBusinessFocus Mar / May |

he Grenada Government is partnering with the German Agency for International Cooperation (GIZ) to establish self-sufficient communities through permaculture, or the use of modern science for sustainability.

John Stollmeyer Director of Caribbean Permaculture Consultants says the idea is to get communities to be creative with ideas for production that are inexpensive to start, but with big profit margins. “We’re setting up a model where we will be teaching permaculture, so people will come in and learn the skills and go back into their communities and share those skills,” he said. “The first rule in permaculture is to find a yield, that means a product to take to market, and what we stress is to find simple processes, very low tech processes that can create a high value product.” GIZ’s Technical Officer Naba Francis said Grenada’s agriculture sector stands to benefit tremendously from the adaptation of climate smart strategies. “I believe that climate smart agricultural practices are the ways that we can build the agriculture sector in Grenada so that it can adapt to the climate changes,” he said. “The agriculture sector has been identified as one the most vulnerable sectors to climate change, and it’s very important that we build a climate resilient agriculture sector.” The model farm will be open for experiments by the end of this year. ¤ www.oecsbusinessfocus.com

ST KITTS - NEVIS

St Kitts-Nevis Government to Stimulate Small Business Development ST. KITTS AND NEVIS GOVERNMENT CONTINUES SUPPORT FOR BUSINESS GROWTH

he number of registered businesses in St Kitts and Nevis continues to rise according to statistics from the Social Security Board and the federal government has signaled a commitment to grow and strengthen the private sector.

While delivering the Budget address in the National Assembly on Tuesday, prime minister and minister of finance, Dr Timothy Harris, highlighted his administration’s policy to support business growth. “During the first six months of 2015, a total of 304 new businesses were registered with the majority comprising of small entrepreneurs,” the prime minister reported, noting that promoting micro, small and medium-sized enterprises will remain an important element. He added that, when coupled together, these businesses play a vital role in creating employment and generating a steady income for employers and employees. “Over the medium term, my government therefore will focus its attention on facilitating entrepreneurship and development of small businesses. In particular, emphasis will be placed on areas such as manufacturing and services,” Harris outlined. The Fresh Start programme was listed as an example of the government’s commitment. Fresh Start has offered

Prime Minister Dr Timothy Harris delivers the Budget Address. SKNIS Photo concessionary loans to individuals to pursue business ventures. Funding of US$5 million was provided by the government of Venezuela for the programme, which has being administered through the Development Bank of St Kitts and Nevis. Some 200 persons have already benefitted from the initiative operating in the fields of tourism, law, public transportation, fisheries, agriculture, retail and wholesale. “This initiative of the Team Unity government is positively impacting persons who may otherwise be marginalized in terms of their ability to secure the necessary capital from the commercial banking system,” Harris said. With reports that the programme has been oversubscribed, the St Kitts and Nevis leader said, “We are negotiating a further support from the government of Venezuela to meet the overwhelming response of our young people to our Fresh Start programme.” Locals and aspiring entrepreneurs can also look forward to the full implementation of the Small Business Development Act (2009), which was designed to support small businesses and entrepreneurial development. A recent review resulted in draft regulations being formulated and submitted to the Ministry of International Trade, Industry and Commerce and the Attorney General’s Chambers. It is expected that the document will soon be submitted to the Cabinet for approval and operationalization. ¤ OECSBusinessFocus Mar / May

ST KITTS - NEVIS

St Kitts-Nevis to Discuss CCJ Accession

By Ken Richards

ASSETERRE, St Kitts (WINN) -- While not exactly on the front burner, accession to the Caribbean Court of Justice (CCJ) appellate jurisdiction is under discussion by the St Kitts and Nevis government.

CCJ president, Sir Dennis Byron, said that’s the view he came away with following a recent courtesy call on Prime Minister Dr Timothy Harris. Byron has been giving an update on the various efforts being undertaken by countries that have not yet made the CCJ their final court of appeal to do so. “Grenada has tabled legislation which led to its referendum taking place on April 26, so that is very specific. As far as I understand Antigua is in the process of taking the same step. With regard to the other OECS countries, the governments of all made statements that indicate that they’re moving toward taking that step, we’ve had nothing very specific, but that they’re moving in that direction. When I met with the prime minister in St Kitts he indicated an interest in having me address his cabinet colleagues and I indicated my willingness to respond to any invitation favourably,” he said. WINN FM asked Byron whether the popularity of the Privy Council ruling on the St Kitts and Nevis constituency boundaries changes that saw the general elections being held on the old boundaries would be a deterrent for St Kitts to fully accept the CCJ. “Of course not, the Privy Council has been the final court of appeal for St Kitts for over 300 years and it is just doing its duty when it adjudicates on a case. Whoever is the final court would have to respond to cases of that nature and they would be doing their duty so I don’t see it as being a deterrent at all,” he said Byron also insisted that the CCJ is an international court and not a local one, when reference was made to criticism of the decisions taken by the High Court in Basseterre and the OECS Supreme Court on the boundaries case. “The CCJ is not a local court, the CCJ is an international court affecting the entire Caribbean and it is the apex court of the country. It has the same status of the Privy Council and in fact that is exactly what we do, we assess appeals from courts of appeals in the region and give our judgement in that capacity. Our function would be identical to what the Privy Council exercised,” he noted. ¤

OECSBusinessFocus Mar / May |

Taiwanese Donate Computer Equipment to JNF Hospital

he Ministry of Health’s plans to update the information system at the JNF Hospital received major inputs in January with a substantial donation of IT equipment from the Taiwanese government.

Resident Ambassador of the Republic of China (Taiwan) to St. Kitts and Nevis His Excellency George Gow Wei Chiou presented the hospital with 38 Acer computers and monitors, 4 Microsoft Service Pros, as well as one multifunction HP laser color printer. The donation totaled over EC $130,000. The equipment will be used to collect patient and other data related to the operations of the JNF hospital that will lend to more efficient health care delivery. Physicians would be able to rapidly access patient files especially in times of emergency, instead of having to manually find and peruse paper files as has been the case over the institution’s 50 years. Minister of Health Hon. Eugene Hamilton assured Ambassador Chiou that the partnership in health related matters will advance the federation’s progress in that sector. He noted that the equipment will also help improve the administrative capacity of the hospital with keeping track of inventory, equipment use and billing. “Undoubtedly, effective and efficient care delivery is dependent on adequate inventories of medicines, vaccines, equipment, supplies, and technology.” Noting the close and longstanding relationship between the two governments, Ambassador Chiou said one of the more recent targets for cooperation has been the health sector. By advancing its healthcare through technology, he said, St. Kitts and Nevis is being propelled as a leader in merging technology with public health in the OECS. The IT equipment is one of the first steps in the new government’s plans to introduce a national health insurance scheme and the introduction smart health cards for citizens. ¤ www.oecsbusinessfocus.com

World Pediatric Project Leans Towards Expansion of Eastern Caribbean Programme CEO Susan Rickman with one of the children who were helped by WPP

hree officials from the World Pediatric Project (WPP) were in St. Kitts and Nevis investigating the expansion of the collaborative arrangement with the Federation that enables children to receive beneficial and lifesaving medical treatment and surgery abroad.

During the brief visit in January, Susan Rickman, WPP President and Chief Executive Officer (CEO), along with WPP Board Members, attended a meeting with key pediatric and general health partners including a private charity. The WPP officials then paid a courtesy call on Governor General His Excellency Sir S.W. Tapley Seaton, and toured the pediatric and maternity wards at the Joseph N. France (JNF) General Hospital. CEO Rickman explained that the service to the children of the Eastern Caribbean is based in St. Vincent and the Grenadines. She said that patients go there for medical attention from the other islands of the region. The objective of the expansion is to increase the number of children who are helped. “We’re taking care of quite a few children, but we know we need to reach more, so we know we need to scale up our programmes that we’re offering down here [Eastern Caribbean], and really get more into the other countries like St. Kitts and Nevis,” Ms. Rickman said.

She said the one day visit to the Federation would clarify the role of those involved in assisting the children and chart the way forward in how processes can run more smoothly, and effectively benefit the patients. “So on top of that, we are looking towards growing our funds so we can scale it up,” Ms. Rickman said, noting that funding should also be sought locally. She explained that annually, WPP hosts two major auctions in St. Louis, USA, along with other fundraisers that support the life-saving activities undertaken by her organization. Honourable Eugene Hamilton, whose St. Kitts and Nevis’ ministerial portfolio includes both Health and Social Services, through which persons may seek free medical assistance, emphasized that he is a proponent of public and private sector partnerships. He further assured that the comprehensive national health insurance that his ministry is working on would assist in ensuring that medical care is more accessible to residents. “I believe that St. Kitts and Nevis has to see itself in a position of promoting healthcare, since it is one of the fundamental rights of our people,” Minister Hamilton emphasized. He qualified Ms. Rickman’s call for local assistance by encouraging those attending the meeting to reach out to philanthropists who can source funding for worthy causes such as the healthcare of children. ¤ OECSBusinessFocus Mar / May

SAINT LUCIA

Gov’t Moves to Increase VAT Threshold

he Government of Saint Lucia has taken the decision to increase the Value Added Tax (VAT) threshold from $180,000 to $400,000 with the aim of providing greater incentives for the expansion of small business on the island. This new measure will be introduced with the passing of Value Added Tax (Amendment) Bill 2016, which was tabled in the National Assembly on Tuesday, January 12, 2016. Prime Minister Dr. Kenny Anthony said it represents a more realistic measure of equity of taxpayers, and provides more breathing space for the small businessman. “It therefore means that a number of small businesses don’t have to register for the VAT or if they are currently register can now deregister,” he explained. Dr. Anthony told members of the House that there are some persons who would prefer to continue their registration under VAT, because they would want to claim the input of VAT into whatever goods and services they offer. Meanwhile, Castries Central MP Richard Frederick said there is a misconception that VAT collection is a manner to unjustly enrich one’s self, explaining that it is essentially collecting money on behalf of the government. “So when persons make noise that they are not registered, they believe they will collect the VAT and never pay up to government,” Frederick told the House. Government has said it raked in over $220,000 increase in the VAT threshold in May 2015. Over 600 VAT registrants will not be required to collect tax on behalf of the government. ¤ OECSBusinessFocus Mar / May |

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LUCELEC and Government Signs Integrated Resource Plan Agreement

S country.

t Lucia Electricity Services Limited (LUCELEC) has taken a historical step in assisting with the design of a viable energy transition strategy for the

The power company is also getting ready to begin the process of constructing a 3.2MW solar power plant. On Thursday, January 14, LUCELEC signed an agreement for the development of an Integrated Resource Plan (IRP) with the Government of Saint Lucia. It will make provision for a team of independent consultants from Carbon War Room (CWR), Rocky Mountain Institute (RMI), Clinton Climate Initiative (CCI) and DNV GL, to assist both parties in designing a viable energy transition strategy for Saint Lucia. What this means is, the team will develop a plan for how best Saint Lucia will be able to move its energy sector from where it is now to where it needs to be, to give effect to the goals and objectives of the National Energy Policy. The plan will determine how best to integrate the optimum mix of renewable energies into the national energy grid, at the least cost, without compromising the stability and reliability of the electricity system. It will determine what improvements need to be made to the electricity infrastructure (transmission

and distribution systems) on the island, and how best to ensure that LUCELEC remains viable, given that the electricity system underpins Saint Lucia’s economy. The process will also allow for public input into the strategy. In addition, LUCELEC Managing Director Trevor Louisy announced the company’s intent to issue a Request for Proposals (RFP) for what will be its first major renewable energy project on the ground, the construction of a 3.2-MW solar farm to be located at La Tourney in Vieux Fort. The project will form part of a power complex the company is proposing to develop. The RFP will be circulated internationally and it is the company’s hope that within the next several weeks a successful bidder will be identified and a contractor in place by May this year. According to Mr. Louisy, the intention is to have at least one megawatt of solar power commissioned by the end of this year, and then add the remaining two megawatts subsequently. The RFP was developed with the assistance of the Rocky Mountain Institute, Carbon War Room and DNV GL through the Government of Saint Lucia. The signing ceremony and the announcement on the solar power plant were done in the Conference Room of the Ministry of the Public Service. ¤ www.oecsbusinessfocus.com

St. Lucia Tapping Into Solar Power

he National Mental Wellness Centre (NMWC) and the headquarters of the National Emergency Management Organisation (NEMO) have been equipped with photovoltaic (PV) systems allowing them to tap into the renewable energy of the sun.

The development is in keeping with government’s policy direction to increase electricity generation from renewable resources by 35 per cent by the year 2020, while reducing energy consumption in the public sector by 20 per cent over the same period. The transition to renewable energy sources is a fundamental component of the energy security and price stability thrust of the Government of Saint Lucia. Renewable energy technologies such as photovoltaics also help Small Island Developing States (SIDS) demonstrate their commitment to greenhouse gas reductions despite their negligible contributions to global warming. Global greenhouse gas emissions are cited as the primary cause of climate change. The implementation of the systems at the NMWC and NEMO, is an important achievement in the work program of the Energy, Science and Technology Unit of the Ministry of Sustainable Development, Energy, Science and Technology. “The use of photovoltaic technology is increasing in Saint Lucia and now stands at a meagre yet significant 328 KW of solar rooftop PV,” Permanent Secretary Sylvester Clauzel said. “While there are a few demonstration sites, the time is opportune for great dissemination of the technology particularly on public buildings. The need for ready access to energy during times of disaster cannot be overemphasised as interruption of the electricity supply can cause significant problems.” PV systems can provide backup power for communities, increasing the ability to cope both during and following a disaster event. ¤

ST VINCENT & THE GRENADINES

St. Vincent Signs Multi-Million Dollar Geothermal Loan Agreement

t. Vincent and the Grenadines Prime Minister Dr. Ralph Gonsalves has signed a US$15 million loan agreement with the Abu Dhabi Fund for Development (ADFD) to establish a geothermal power station on the Caribbean island. The agreement was also signed by the SDFD director general Mohammed Saif Al Suwaidi. The geothermal project is being funded as part of the US$350 million ADFD/IRENA project facility, set up in 2012, to provide concessional financing for renewable energy projects in developing countries affiliated to International Renewable Energy Agency (IRENA). One of the five projects selected for funding as part of the second loan cycle facility, the power plant aims to utilize naturally occurring geothermal energy to plug the power shortage in St. Vincent and the Grenadines. It will also help drive the wider energy sector and accelerate sustainable economic development across “The proposed geothermal power plant will give a strong boost to the energy sector in our country, supporting its economic growth and development programmes,” Gonsalves sad. “ADFD plays an active role in financing development projects that translate into significant economic and social impact in beneficiary countries. My government is keen to leverage our collaboration with the Fund to push ahead with more development projects that deliver key sustainable development goals and benefit the overall economy,” he added. Suwaidi said “ADFD has paid particular attention to the renewable energy sector given the essential role of the sustainable energy in meeting the growing needs of developing countries, and supporting their social and economic development. He said evidence suggests that despite the enormous potential of renewable energy in acting as a key enabler of sustainable development across the world, there remain challenges and gaps in the ease of accessing global funds to support these projects so we are delighted to be able to support this project by providing essential finance. “The renewable energy projects financed by the Fund since 1974 to date have contributed to delivering clean energy for millions of people in more than 24 developing countries across the globe. These projects have generated thousands of megawatts of renewable energy, and stimulated economic growth in the beneficiary countries,” he added. ¤ OECSBusinessFocus Mar / May

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events 2016

CARILEC’s Human Resource, Corporate Communications and Customer Service Conference Grenada- March 13th-17th, 2016 This CARILEC Conference is one of the best events in the Caribbean Region, for Utility and business professionals in the field of Human Resources, Corporate Communications and Customer Service. This conference will provide proven HR, PR and CS strategies to assist professionals to deal with organizational and environmental changes in the region and globally. Gain tips, tools and techniques so effective they will change the way you think, manage and lead.Explore the forces shaping human engagement, communications and customer relations. You will learn how to take advantage of these forces and win employees, media and customers attention in the era of digital transformation.

CaribNOG’s 11th Regional Gathering Montego Bay, Jamaica- April 20th to 22nd, 2016 Caribbean Network Operators Group,(CaribNOG), is a not-for-profit, independent, technical community that providing an important regional forum for building technical capacity, sharing industry experiences and promoting relevant solutions for advancing network engineering in the Caribbean. CaribNOG 11 is expected to draw industry experts from across the region and around the world to the beautiful island of Jamaica.

CARAIFA - The Caribbean Association of Insurance and Financial Advisors 30th Annual Sales Congress 2016, April 24th - 27th St. John’s, Antigua Theme: “Capture the Vision” CARAIFA is an umbrella organization of regional Life Underwriting associations whose members are engaged primarily in the sale of the products of Life Insurance and Financial Services companies. CARAIFA hosts an annual conference of the Life Underwriters/Financial Advisors throughout the region in May each year. These congresses feature motivational and inspiring speakers from our region and internationally. www.caraifa.com

Expo Jamaica 2016 Jamaica- April 14-17, 2016 Expo Jamaica, the largest biennial trade-show of the Caribbean hosted by the Jamaica Manufacturers Association (JMA) and the Jamaica Exporters Association (JEA) in partnership with JAMPRO will unveil its 45th and most elaborate staging to date. Conceptualized under the theme ‘The Business Hub of the Caribbean’, Expo Jamaica 2016 will showcase all things Jamaican in Manufacturing, Agriculture, Tourism and Services in its expanded home which in addition to the National Arena, will now include the National Indoor Sports Centre. This expansion will result in 90 more booth spaces becoming available to enterprising Jamaican trade professionals.

CTO’s 2nd International Tourism Expo (ETI) San Juan, Puerto Rico- May 11th-14th 2016 The ETI –Expo de Turismo Internacional, is designed to showcase the beauty, sports, nature, adventure, and gastronomy experiences available throughout the Caribbean and beyond, bringing together members of the tourism industry from across the globe.

OECSBusinessFocus Mar / May |

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www.oecsbusinessfocus.com

MAJOR MOVES Gale ArchibaldHead, Research and Statistics, Research and Statistics Unit OECS Commission Gale Archibald has just under 27 years experience in statistics and statistical development. Her career spans working for three years from 1989 as a Statistician in the St Lucia Government Statistics Department; for 14 years from 1992 as a Senior Statistician at the ECCB, and a three year engagement from 2009 as a Consultant Statistician in Antigua and Barbuda. Just prior to joining the OECS Commission in November 2015, Gale spent 4 years as a Project Manager for a World Bank-funded public and social sector transformation project in Antigua and Barbuda. Gale’s portfolio at the Commission includes leadership for the OECS Regional Strategy for the Development of Statistics; the OECS Geospatial Data Visualisation Programme; and OECSInfo, the Commission’s centralised data depository. Gale holds a Post Graduate Certificate in Public Policy and Management, an MBA in Information Management and a BA in Statistical Science. She also has a doctorate in Organization and Management Between 2006 and 2009, Gale operated her consulting practice in St. Kitts. Some of her consulting engagements include institutional strengthening, designing data and information management infrastructures, performance management systems, and lecturing. Her clients included central banks in the region, government ministries in St. Kitts and the University of the West Indies (UWI). As a part-time tutor at the UWI OpenCentre in St. Kitts, she lectured in Human Resource Management and Information Management. She is a national of St Lucia, a citizen of St. Kitts and Nevis. ¤

Geraldine St. Croix- Project Coordinator for Enhanced Country Poverty Assessment project, OECS Commission Geraldine St. Croix is employed at the OECS Commission as the Project Coordinator for the Enhanced Country Poverty Assessment project, funded by the Caribbean Development Bank. Prior to her tenure at OECS Commission, St. Croix took up a position at the CARICOM Secretariat in Georgetown, Guyana as the Project Coordinator for the 9th and 10th EDF project with the Regional Statistics Programme. She has also worked as an Economist with main responsibility for monitoring the Livestock sector as well as the focal point officer for the Special Framework of Assistance Programme. Geraldine has a Bachelor of Science degree in Business, Economic and Social Statistics (BESS) from the University of the West Indies Mona Campus. She then completed her Masters of Science in Economic Policy and Reform for Development, Suma Cum Laude from Universidad Católica. She has also taken a course in project Management with Cambridge University at the professional diploma level, and also has project management certification from the Project Management Professionals (PMP) Institute. ¤

Senior immigration officials Joycelyn Hughes gets top Caricom appointment An Antiguan and Barbudan has made history by becoming the first national to be appointed to a top immigration post within Caricom the region. Senior Immigration Officer Joycelyn Hughes will leave the island this weekend to take up a two-year appointment as Border Security Liaison Officer for Caricom’s Implementation Agency for Crime and Security (IMPACS) based in Trinidad & Tobago. Her appointment came following an offer which was made to her through the government of Antigua & Barbuda. Hughes, who last held the post of Station Chief in charge of the airport, said she will be directly responsible for all border security protocols and projects within Caricom including immigration and customs matters. “I will also be providing advice to Caricom officials on the way forward as it relates to border control issues. I would have worked in a similar position a few years ago; that is why they threw out the offer to government,” Hughes said. The immigration official spent two years in Barbados as Deputy Director of that country’s Joint Regional Communications Centre. She also participated in a three-week United States Department of State’s International Visitor Leadership Programme (IVLP) which focused on combating trafficking in persons. Hughes joined the department in 2001 and has served in many capacities including Deputy Chief Immigration Officer. ¤

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OECS Business Focus looks at Corporate Transitions Dr. Hilaire holds a Doctor of Philosophy in Economics from Columbia University in New York and graduated with First Class Honors from the University of the West Indies at St. Augustine. ¤ Jocerlerme Privert is Interim President of Haiti Former head of the Haitian parliament, Jocerlerme Privert, is the interim President for 120 days. He was elected on February 14, one week after the previous president stepped down with no successor lined up. The election came after former President Michel Martelly stepped down February 7. A new round of elections will take place on April 24, with the elected winner to be installed on May 14. ¤

Dr. Alvin Hilaire is the new Governor of the Central Bank of Trinidad and Tobago. Dr. Hilaire is a career central banker having worked with the Central bank of Trinidad and Tobago (CBTT) for a cumulative period of approximately 20 years, holding positions of Senior Economist, Chief Economist, Director of Research, and most recently Deputy Governor since 2013. Dr. Hilaire has extensive experience in macro economic policy development and implementation and monetary policy matters. Regionally, Dr.Hilaire has made significant contributions to developing the economies of small vulnerable CARICOM countries through his work as Chairman of the CARICOM Development Fund, where he was influential in increasing financial assistance to these islands. OECSBusinessFocus Mar / May |

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The Monetary Council has appointed Mr Timothy Antoine as Governor of the Eastern Caribbean Central Bank (ECCB). Mr Antoine, a Grenadian national, succeeds Sir K Dwight Venner who retired on 30 November, 2015, and assumes the position on February 1, 2016. He is the holder of a BSc degree in Economics with Management from the University of the West Indies and a MSc in Social Policy and Planning from the London School of Economics. Mr Antoine brings to his new position, senior managerial experience, having served as Grenada’s Permanent Secretary in the Ministry of Finance for fourteen (14) years. He also has significant regulatory experience as a member of the ECCB Board for twelve years and as Chairman of the Grenada Authority for the Regulation of Financial Institutions for the past seven years. Mr Antoine is also the Chairman of the Technical Core Committee on Insurance for the ECCU. ¤

Sanders now Chairman of the OAS Permanent Council Antigua and Barbuda’s Ambassador Sir Ronald Sanders is now Chairman of the Organization of American States (OAS) Permanent Council.

Sanders will preside over the activities of the OAS until April this year with a packed agenda including issues involving General elections in Haiti as well as problem areas in some member countries.

Under his stewardship, the Permanent Council will also advance preparations for the General Assembly, the highest decision-making organ of the OAS. The General Assembly will be held in the Dominican Republic in June. His first act as Chairman of the OAS Permanent Council was to receive the Deputy Minister of Foreign Affairs of Bolivia, Juan Carlos Tejeda, to discuss Climate Change and initiatives that could be taken to ensure that undertakings given at the Climate meeting in Paris last December actually deliver results. Sanders has been an advocate of the interests of small states in the global warming debate. He is expected to advance discussion of this issue, as well as threats to the financial services sector of the Caribbean during his Chairmanship. ¤

The InterAmerican Development Bank (IDB) has announced the appointment of Francisco Ramón Ruiz García as treasurer, effective April 1st, 2016. Mr. Ruiz García, a Spanish citizen, is currently Treasury ALM (Asset Liability Management) Market Risk Director for Barclays Bank PLC in London, where he is responsible for risk exposure oversight and for the implementation of market risk methodologies.

Sanders assumed the position on January 12, 2016. www.oecsbusinessfocus.com

MAJOR MOVES

OECS Business Focus looks at Corporate Transitions Before joining Barclays Bank, Mr. Ruiz García also held several leadership positions in commercial and investment banking, including management roles within Banco Santander and BBVA Bank in Madrid and New York. Mr. Ruiz García holds a Master´s degree in Quantitative Finance and Economy from CEMFI Foundation - Banco de España (Spanish Central Bank), and a BSc in Electrical Engineering from Valladolid University (Spain). Ruiz García will run the Treasury Division of the Inter-American Development Bank, which is responsible for executing the Bank’s borrowing program in the international and domestic capital markets, investing the liquid asset portfolio, forecasting and managing the IDB´s cash position, and performing the valuation of the investment and funding portfolios. He will will also coordinate the relationship with financial intermediaries and lead the expansion of the Bank’s local currency treasury capabilities in the Region. ¤

Owen Verwey has been identified as the new Chief Executive Officer for the Guyana Officer for Investment (GO-Invest). Mr Verwey will be working along with the recently appointed Board of Directors, to provide critical leadership to the agency to realise its full potential. He will assist in the development of a 2020 Strategic Plan for GO-Invest and spearhead its execution under the supervision of the Board of Directors. Mr. Verwey has served the Public Sector for nearly 20 years, both in Guyana and internationally. He has held senior positions in several public sector organisations where he has been involved in project implementation, policy development, budget planning,

project and programme management and financing. He holds a Masters Degree in Finance from the University of Exeter in the UK and the Bachelor’s Degree in Economics from the University of Guyana. ¤

Ian Peter is new Chief Financial Officer at LUCELEC St. Lucia Electricity Services Limited (LUCELEC has appointed Ian Peter to the position of Chief Financial Officer (CFO) as of

January 1, 2016. A Fellow of the Association of Certified Chartered Accountants (FCCA) with an excellent track record in senior and executive management positions, Mr. Peter brings a unique perspective to the role of CFO at LUCELEC, having worked for the past eight years in a competitive retail environment.

He holds a BSc (Hons) Management Studies from the University of the West Indies, Cave Hill Campus and has held positions of Senior Accountant at KPMG and Financial Controller at Peter & Company Limited among others. He most recently held the position of OECS Director of Finance & Technical Services at Unicomer, trading as Courts. ¤

Justin Nedd is now Guyana Telephone and Telegraph (GTT) Company’s Chief Executive Officer. Mr. Nedd was formerly the company’s Chief Financial Officer and has been acting in the Interim CEO capacity since June 2015.

According to a release, the GTT Board commented, “ Justin brings the right balance of relentless customer focus, executional rigour and infectious optimism required to lead GTT in delivering the best and most compelling communications services in Guyana”. Responding to his confirmation, Mr. Nedd said, “This is a true honor to be entrusted with the leadership of such an important company in Guyana and at such an exciting time. We have made a brand promise to our customers and to the country to “Do More” and we are doing so every day. The best is yet to come! ¤

Mr. Sanovnik Destang is the new President of St Lucia Hotel & Tourism Association Sanvonik Destang has served the SLHTA with distinction over the last few years in varying capacities including; 1st Vice President, Chairman of the Chef’s Table and as Representative of Large and Boutique Hotels; before being appointed as President in February 2016. Sanovnik is the Executive Director of Bay Gardens Resorts, an award-winning locally owned hotel chain in Rodney Bay Village, St. Lucia. A Chartered Accountant (CA) and Chartered Financial Analyst (CFA) by profession, Sanovnik spent 4 years working with KPMG in Toronto in the fields of assurance and Mergers and Acquisitions advisory before returning to St. Lucia in 2008. Destang also serves as a Director on the Board of the St. Lucia Development Bank (SLDB), he sits on the Marketing Committee of the St Lucia Tourist Board and on the Investment Committee of the National Insurance Council. He is a Regional Vice President at the Caribbean Hotel and Tourism Association (CHTA) and also served as the Chair of the Board of Trustees of the newly launched Tourism Enhancement Fund (TEF). ¤

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