OECS Business Focus by AMS St. Lucia

The quarterly magazine for OECS decision makers

OECS

Issue No. 1

Aug/Oct 2015

OECS BUSINESS FOCUS

The quarterly magazine for OECS decision makers

One Community Growing Together

St. Kitts & Nevis Special Feature Interview with Dr. Didacus Jules www.oecsbusinessfocus.com

An official publication of the OECS Commission

Anguilla Aluminium

OECSBusinessFocus Aug / Oct

Opening the Doors to Opportunity! Congratulations to the Organization of Eastern Caribbean States (OECS) as it celebrates its 34th Anniversary since the original signing of the Treaty of Basseterre. The vision of our founding Leaders needs to be recognized as the OECS has made major strides in advancing economic union and a number of other regional initiatives which continue to impact positively across the Member States. The AMS Team wishes the OECS every success with promoting and developing the OECS Single Economy and its ongoing Trade and Investment initiatives thereby, opening doors to opportunity for the OECS Private Sector and new Entrepreneurs. The AMS GROUP is also pleased to partner with the OECS Commission in the publishing of the OECS BUSINESS FOCUS Magazine. This new Magazine will be dedicated to supporting the efforts of the OECS Commission as a catalyst for growth and development and at the same time highlight the activities and opportunities for business expansion and development across the region and beyond. With the advent of the OECS single financial and economic space, this has created an opportunity across borders opening up the potential to expand business operations into other Member States directly or through business relations with associates across the region. This new OECS opportunity has also gained the attention of the larger regional trading conglomerates and financial institutions resulting in new investments and a growing culture of mergers and acquisitions as well as the evolution of a new generation of entrepreneurs, particularly through opportunities in the rapidly emerging Telecoms, ICT and Services sectors. Tourism continues to be the dominant economic sector showing good growth with significant investment in new hotel developments and increased airlift. The Federation of St Kitts and Nevis enjoys the spotlight in this first edition of our Magazine. It has set the stage as a progressive investment market through a range of instruments resulting in the highest levels of foreign direct investment across the OECS. Nevis has also pronounced that it will be the greenest island in the region through the use of alternative and renewable energy. We wish Prime Minister Dr Timothy Harris and his relatively new Government and Premier Vance Amory of Nevis continued success. Congratulations are also offered to the new Governments in Anguilla and BVI who have been elected at recent elections. We trust that you will enjoy the content of this first edition of the OECS Business Focus Magazine and we look forward to your comments. LokeshSingh Singh Lokesh Publisher/Managing Managing Editor /Editor Publisher

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 | Beverly Best Graphic Designer: Cecil Sylvester | Deri Benjamin 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: Ashley Anzie | OECS | AMS | TEPA St. Kitts Tourism Authority | GIS St. Kitts and Nevis St. Kitts Investment Promotion Agency Contributors: Lokesh Singh | Dr. Didacus Jules| Gordon Charles Beverly Best | Vincent Philbert | Elma Gene Isaac Asha Singh | Dr. Lorraine Nicholas | Kim Clarke Theresa Daniel | Natalie John | George Alcee Dr. Chris Bart | David Jessop | Sir Ronald Sanders Curtis Rampersaud | Kem Warner | Michelle Stephens GIS St Kitts & Nevis | Karena Bennett | Jamaica Observer Caribbean Journal | St Kitts Investment Promotion Agency St Kitts Tourism Authority Editorial, Advertising, Design & Production: Advertising & Marketing Services P.O. Box 2003, Castries, Saint Lucia Tel: (758) 453-1149; Fax: (758) 453-1290 email: ams@candw.lc www.amsstlucia.com, www.oecsbusinessfocus.com OECS Business Focus welcomes contributions from professionals or writers in specialized fields or areas of interest. Reproduction of any material contained herein without written approval, constitutes a violation of copyright. OECS Business Focus reserves the right to determine the content of the publication.

On The Cover:

Promoting the OECS Single Economy

OECSBusinessFocus Aug / Oct

No.1

O E C S

BF Aug 2015

CONTENTS FEATURE

30. St. Kitts & Nevis 32. Ministers of Government of the Federation of St. Kitts and Nevis 34. A Profile: Dr Timothy Sylvester Harris 36. Good Reasons to Invest 42. Citizenship by Investment: The case of St. Kitts and Nevis 44. Tourism: The Foundation for Success

56. CIBC FirstCaribbean CEO Points to PPP as

74. Digicel Acquires Bermuda Telephone

57. ECLAC Forum Tackles Caribbean

Tourism

Catalyst for Economic Recovery in the Region

Development Financing

58. Youth Unemployment and Selling Citizenship

Company

76. Caribbean Countries Record Growth in Tourist Arrivals

59. Caribbean Urban Forum Assesses

80. Barbados Breaks a 25 Year Record

60. Trinidad Cement Limited Group Restructures,

80. JetBlue Airways, Seaborne Airlines

02. Editor’s Focus

60. India and the Caribbean Get Closer

81. Hummingbird Air Enters VI Air Travel Industry

04. Messages

Money Matters

Environment

OECS Commission

62. EU Announces EURO 346M New Funding

82. Bill Clinton Is Making a New Green

63. US$120m World Bank Help for Struggling

83. Caribbean Looks to France as Key Partner

63. Scotiabank 50 Million Fund for

In The Know

Regional Urban Development Settles Debt

The Catalyst for Investment & Devleopment 08. 34th OECS Anniversary Historical and Futuristic Perspectives

10. Advances Made and Potential Benefits of the OECS Free Movement Regime

12. An Interview With Dr. Didacus Jules (Part 1) 16. The OECS Competitive Business Unit 18. Highlights on the OECS Agriculture Desk 20. OECS Prepares for UN Climate Change Conference in Paris

22. A Coordinated Approach to Tourism Development in the OECS

24. The OECS Youth Entrepreneurship Programme 26. ECTEL Celebrates 15th Anniversary

for the Caribbean

Caribbean Countries

Caribbean Business

64. ECCU Approves New Measures to Tighten Banking Sector in OECS

66. Business Development Strategies for OECS Small Businesses

67. GraceKennedy Rebrands Insurance Company Technology 68. Barbados Hosts Region’s First Peering Forum 69. C&W Group Revenue Higher at US$1.8b 69. Microsoft to Launch Windows 10 on July 29 70. Caribbean Significant to Global Internet Governance

48. Improving the Caribbean Board’s Role in Strategy

72. ECTEL Holds Consultations in Member States

Economy & Trade

72. CARCIP Assisting ECTEL Countries with

50. Caribbean Banks Challenged by Tough Global Regulations

52. CDB Projects Slight Economic Growth for Caribbean Countries in 2015

53. World Bank Report Proposes New Directions to Boost Trade in the Region

54. Regulatory Challenges in the Region

Development of Legal and Regulatory Framework

73. CWC to Introduce Post Hurricane Drones 73. CWC Awarded Avaya Regional Partner of the Year

74. Digicel Relaunches App

for Tourist Arrivals

Sign Codeshare Agreement

Push in the Caribbean Region in Climate Financing

84. EU Signs Visa Waiver Agreement With Four OECS Countries and Trinidad & Tobago

84. OECS Eyes Development of Biometric Swipe Card

85. Saint Lucia’s TEPA Completes OECS Business Mission

86. Ansa Mcal Chairman Gets UWI Honorary Doctorate

86. Invest TT Ranked Among World’s Best 87. Massy Distribution is P&G’s Regional Distributor of the Year

OECS Member States 88. Anguilla 90. Antigua 93. British Virgin Islands 94. Dominica 96. Grenada 98. Martinique 99. Montserrat 100. St. Kitts & Nevis 102. Saint Lucia 104. St. Vincent & the Grenadines 105. Major Moves 106. OECS Events 2015 108. Advertisers Index OECSBusinessFocus Aug / Oct

MESSAGES

Promotiong Trade In the OECS Single Economy These voices must speak with sufficient autonomy that they can bring to the table the views of their constituents and precise recommendations for policy. So we have been for example, working to strengthen the OECS Business Council so that it can authoritatively project the voice of the private sector across the single space. We have been encouraging the consumer protection groups in the Member States to work towards a strong OECS consumer protection network that can articulate issues for consideration by Ministerial Councils whose remit covers consumer protection.

Dr Didacus Jules Director General

Commission The genius of the Revised Treaty of Basseterre is that it very clearly sets out to establish a single economic and financial space in the arc of the Caribbean archipelago that constitutes the Organisation of Eastern Caribbean States (OECS). The Treaty specifically identifies several areas in which Member States are committed to “coordinate, harmonize and undertake joint actions, and pursue joint policies”. The areas mentioned include: international trade agreements and other external economic relations; financial and technical assistance from external sources; international marketing of goods and services including tourism; external transportation and communications including civil aviation; regulatory and competition authorities; education including tertiary education; telecommunications; intellectual property rights; scientific, technical and cultural cooperation; social protection mechanisms; social policy framework; the development of arts and culture. It is important to note that although the main trajectory of the Treaty is economic, the amplification of its remit embraces the social and what I call the capacitative sectors (education, telecommunications etc). The OECS Heads have long recognized that economies are about people and the productive arrangements for the satisfaction of their needs and wants. In that context, the Treaty seeks to unite, enlarge and expand the economic space to facilitate the emergence of a better, more prosperous, more cohesive Caribbean civilization. Our new strategic approach to fulfilling these responsibilities involves working closely with the universe of stakeholders in all spheres of the economy and the society to first of all encourage the unification of interests across the single space, then to facilitate their clarification and definition of the agenda that speaks to these interests and to engage these representative fora in shaping the developmental way forward for the OECS. It is essentially about giving voice to representational interests so that they can contribute to the regional development process. OECSBusinessFocus Aug / Oct

For these initiatives to succeed there must be strong channels of communication that provide reliable information and empirical data that will enable analytical alternatives. The OECS Commission has therefore partnered with AMS Ltd – a long time publisher of the Business Focus Magazine in several countries of the region – to offer the OECS Business Focus. We would like this to become a major authoritative channel of communication for the business community in the OECS and the wider region (including the investor community) on developments in all sectors of the OECS economy. The provision of accurate and authoritative business intelligence is a prerequisite for stimulating economic growth, innovation and entrepreneurship. Over time, we expect that the OECS Business Focus will provide comprehensive coverage on economic activity within each Member State but also cover developments in critical economic sectors across the single space. This first issue focuses on the Federation of St. Kitts & Nevis because it was the location of both the Treaty of Basseterre and the Revised Treaty of Basseterre. The Federation also has a remarkable story to tell about its economic journey over the 34 years of OECS integration. Associated with the OECS Business Focus will be an integrated architecture of social media (facebook, twitter, website) that will go further than a physical magazine in providing background documentation and access to statistical sources for business persons wanting greater access. Although we are a relatively small cluster of islands, the potential of the OECS Single Space must not be discounted. With the inclusion of our newest Member State – Martinique, the population of the OECS moves to one million people and the combined GDP to just under US$12 billion. In the short term, the most exciting opportunities are to be found in this internal space and we hope that this issue of the OECS Business Focus will open the discussion on how do we promote economic growth through stronger internal linkages, deeper trade and closer integration within the Single Space and across economic sectors. We are counting on you to give us the kind of critical feedback that will enable us to make this Magazine a must-read channel of communication for business persons, budding entrepreneurs and everyone who wants to be well informed on economic developments in the OECS Single Space. www.oecsbusinessfocus.com

OECSBusinessFocus Aug / Oct

MESSAGES

Gordon Charles Chairman OECS Business Council

Introducing the OECS Business Council Earlier this year the region witnessed the formal appointment of the 1st Board of Directors of the O.E.C.S Business Council (OBC). This entity is the brainchild of the Eastern Caribbean Central Bank (ECCB) who parented its formation back in 2013 with the establishment of an interim Board consisting of regional business persons from the OECS islands. The ECCB has provided full secretariat support for the OBC which has met regularly with the use of the bank’s video conferencing capabilities in each island. Further endorsement of the OBC has come from the OECS Commision which has also established representation at the OBC and is working jointly with the ECCB to provide support and guidance to this entity. The vision of the OBC is to provide a common singular regional voice to the OECS private sector as the sub-region moves towards stronger unification. The private sector has been touted as the “Engine of Growth” within the region, with the public sector being responsible for establishing and maintaining the enabling environment for business to flourish. The OBC will seek to champion the concerns of its membership across the single space as it is recognised by the OECS Heads of Government and can now lobby common concerns, as well as represent the sub-region’s private sector positions on the wider Caricom and international stage. Each OECS territory will have a representative on the council, whose authority and appointment to the OBC is made by its own local private sector council or union which represents the umbrella of its private sector interest. One of the first functions of the interim board was to ensure the creation or endorsement of the already established local council in each territory which itself is composed of various private sector organizations such as Chambers of Commerce, Manufacturers Associations, Coalitions of Service, Small Business Associations and Hotel & Tourism entities. OECSBusinessFocus Aug / Oct

In January 2015 each territory council nominated its OBC representative and identified a series of national issues which was in turn submitted up to the OBC, and this list then distilled to the most common concerns across the territories. The initial issues identified for focus and action are: • • • •

The Ease of Doing Business. The Cost and Efficiency of Regional Transportation. The Cost and Access to Financing. The Cost of Energy.

The OBC is scheduled to hold a two day retreat in St. Kitts in July with the support and participation of the ECCB and OECS Commission. There its Board will work collectively to review those common concerns identified above as well as operational matters such as its role and objectives, structure and relationships going forward as they relate to and impact the development and strengthening of the OECS private sector. We welcome the decision to publish the OECS Business Focus Magazine and believe that this publication can serve as a catalyst to promote investment, business development and stronger business linkages with the OECS public and private sectors and the wider community. Congratulations to the Publishers – Advertising & Marketing Services Ltd and the OECS Commission for their vision and partnership in making this project a reality. ¤ www.oecsbusinessfocus.com

OECSBusinessFocus Aug / Oct

The birth of the Organisation of Eastern Caribbean States (OECS) in Basseterre, St. Kitts, June 1981. Maurice Bishop of Grenada (extreme right)

34th OECS Anniversary Historical and Futuristic Perspectives By: Beverly Best

n June 18, 1981, the Treaty Establishing the Organisation of Eastern Caribbean States (OECS) was signed by seven Member States in Basseterre, the capital city of the Federation of St. Kitts and Nevis. The Treaty was signed by Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia and St. Vincent and the Grenadines. In November 1984 and May 1995 respectively, the British Virgin Islands and Anguilla ratified the Treaty as Associate Members. Among the most important objectives of the Treaty establishing the OECS are: to promote cooperation, unity and solidarity; to assist Member States with obligations with respect to International Law; to engage in joint overseas representation; to promote economic integration; and to establish common institutions and take actions in common. In preparing the region for an era of heightened integration, on June 18, 2010, which marked the 29th anniversary of the OECS, the Prime Ministers of the six independent Member States of the OECS signed the Revised Treaty of Basseterre establishing the OECS Economic Union. In the spirit of deepening integration among Member States this Revised Treaty has aided the region to provide for, inter alia, the establishment and implementation of a free movement regime within a single economic and financial space. OECSBusinessFocus Aug / Oct

Thirty-four years later it is interesting to review the historical records of the OECS in its bid to ultimately unify the islands and integrate the people of the region. According to OECS Director General, Dr. Didacus Jules in his 34th Anniversary Speech “Anniversaries like this provide us with an opportunity to assess and celebrate the accomplishments of the past recognizing that it is on the foundation of these accomplishments that the future is constructed.” On reflecting on the range of achievements, Dr. Jules further stated that “The record is punctuated by many important things that we take for granted today. And the fact that they are taken for granted is the greatest testimony of their lasting impact – because they now constitute an indistinguishable element of our everyday existence.” Some of the key pillars of the region’s resilience include the operation of OECS institutions – such as the Central Bank, the Supreme Court, the Civil Aviation and Telecommunication Authorities (dubbed as the first of their kind globally) and its Organs. Today, the reality of the region’s unique circumstances, coupled with a brutally competitive world that is dominated by the large and powerful economies, calls for greater optimism in the region’s potential and ability, rededication to solidarity and stronger unity; and demands resolute will and unwavering speedy action, as well as a reaffirmation of a commitment to a common collective

path. In noting the enviable track record of the OECS, Dr. Jules acknowledges that “The entry of Martinique to the fraternity of the OECS in its 34th year of integration marks a qualitative shift in our approach to regional integration. It signals the putting aside of linguistic and cultural barriers….It opens new windows of possibility for people to people exchange, trade, exchange of services and the collective development of the region.” The road ahead for the OECS in the coming years is aptly summed up by Dr. the Right Honourable Keith Mitchell, Prime Minister of Grenada, during his opening speech at the 61st Meeting of the OECS Authority when he stated that “...this is the time for us to bind more closely together than ever, and like our Carib ancestors, to fight harder for each other. It is indeed a time to stand firmer in the face of all that seeks to undermine our unity and development.” ¤

Beverly Best is Head, Functional Co-operation and Programme Management Unit at the OECS Commission www.oecs.org

OECSBusinessFocus Aug / Oct

THEBUSINESS CATALYSTTECH FOR INVESTMENT & DEVELOPMENT

Advances Made and Potential Benefits of the OECS Free Movement Regime

By Elma Gene Isaac

he free movement of citizens of the OECS is a right provided for in the Revised Treaty of Basseterre and secured by the laws of Member States which are participating in the Economic Union Protocol. The Economic Union Protocol is that part of the Treaty which deals with the free movement of goods, services, capital and people. The free movement of people applies to skilled and unskilled persons, retirees, people traveling for leisure, in short, all citizens of the Protocol Member States, with the sole restriction being possible security risks.

Member State who exercises the right of free movement enjoys the same general and social rights and privileges accorded to a citizen of the host Member State.

For citizens of Antigua and Barbuda, Dominica, Grenada, Montserrat, St. Kitts and Nevis, Saint Lucia and St. Vincent and the Grenadines the following are in effect as regards free movement of people:

One main goal of the regime for free movement of people is to support the creation of an Economic Union-wide labour market. This improves jobseekers’ access to employment opportunities in the OECS. Moreover, it allows businesses to take advantage of a wider pool of skills and paves the way for optimal allocation and utilization of labour resources throughout the region. The exercise of the right to establish businesses and to provide services, which are rights enshrined in the Revised Treaty of Basseterre will be more readily attainable with an effective free movement regime. The transferability of Social Security benefits throughout the OECS facilitates free movement, particularly since persons can work in various participating States over the course of their working lives and then access their retirement benefits in the country in which they choose to retire.

• • • • •

Citizens have the right to freedom of movement Citizens are granted indefinite stay on entry Citizens are allowed to travel and enter the countries with a government issued valid photo ID Citizens are not required to obtain a work permit Citizens are allowed to drive in a Member State on a valid driver’s licence from another Member State

These provisions will be supported by the proposed OECS Policy on Rights Contingent to the Freedom of Movement, through which a citizen of a Protocol OECSBusinessFocus Aug / Oct

Recognizing that an OECS citizen may move with family, including spouse and dependents, the Policy provides that the right of an OECS citizen to move and reside freely within the OECS Economic Union Area and to enjoy rights and privileges as citizens should also be accorded to his or her family irrespective of nationality. The family unit and quality of family life are therefore protected.

The free movement regime seeks to establish a single domestic space for travel. Ultimately, there will be an OECS border, as opposed to several national borders and immigration and customs checks will be rationalized. This will have positive implications for the movement and processing of nationals of third states and will doubtless give impetus to efforts to enhance the OECS tourism product. The movement of people inevitably includes movement of goods. The regime for free movement of people is therefore being developed taking into account the requirement in the Revised Treaty for goods not only to move freely, but also to be in free circulation once they clear the OECS border. In this regard the OECS proposes to develop fully integrated systems which will include a security system as well as a single electronic portal geared towards connecting all border control agencies, so simplifying business, trade and investment in the OECS. ¤

Elma Gene Isaac is Head of the Regional Integration Unit at the OECS Commission www.oecs.org

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OECSBusinessFocus Aug / Oct

THEBUSINESS CATALYSTTECH FOR INVESTMENT & DEVELOPMENT

An Interview With Dr. Didacus Jules Director General

Commission Part 1

he scope of the work of the OECS Commission is so wide and varied that this interview will not be able to address all of the subject areas under Dr Jules’ remit. Hence we expect to continue this discourse for publication in future editions of this Magazine. We also hope that you will be more enlightened on Dr Jules’ responsibilities and the good work being executed by this most important regional institution - the OECS Commission and its various Agencies. This is the first in a two part Interview with Dr Didacus Jules, Director General of the OECS Commission conducted by Lokesh Singh, Publisher of the OECS Business Focus Magazine. Dr Jules - Congratulations on your not so recent appointment as Director General of the OECS Commission and also on the Commission’s 34th Anniversary. BF: Having had some time to settle in as Director General, what are some of your key objectives in the short and medium term? My overall mandate is to ensure that the provisions of the Revised Treaty of Basseterre are realized in the shortest possible timeframe. This translates for me into three key short to medium term priorities: 1. Consolidating the architecture of OECS regional integration – which involves restructuring the Commission for efficiency and delivery; ensuring that the organs of OECS integration function in the most cost effective manner and the single reliance on government subventions is OECSBusinessFocus Aug / Oct

reduced and that they become more financially sustainable. It also involves the strengthening of compliance with and implementation of all agreements arrived at by the OECS Authority 2. Facilitating the free movement, growth and development of people, goods, services, capital and ideas – involving full implementation of the provisions for ease of travel and residence by OECS nationals in any member state; strengthening the travel and communications infrastructure (air, sea and broadband) within the OECS Single Space; facilitating the unhindered movement of goods within the single space; revitalizing the OECS Stock Exchange so that it can play a more dynamic role in private sector growth. 3. Assuring the security and well-being of citizens – this we define in a holistic manner. Wellbeing and security of citizens is not just about safety from crime but also about freedom from want, the battle against poverty and a caring, healthy society. The key economic priorities underlying this agenda is focussing on food security, renewable energy, transportation and communications, jobs, education and climate change/disaster management. BF: Your mandate as Director General is very wide in scope, is the OECS Commission adequately structured with the requisite skills and funded to achieve the objectives of its work plan? The mandate is wide because the OECS Heads of Government recognize that integration is ultimately about people’s lives and the sustainability of our small societies. It is necessary therefore for us

to take holistic and integrated approaches to the challenges that we face because our problems are interrelated. When we talk about a single economic space, we cannot separate issues related to transportation from tourism; we cannot speak about making that single economic space a wider tourism space and not also take note of the spread of infectious diseases and the implication for joint health action and seamless protective measures. Education is an important element of our integration project because it is supposed to create the human capacity for decent work jobs and new opportunity as well as shape the citizenry of the future. So a major challenge for the mandate is how well we can converge its various dimensions so that every action that we undertake serves to reinforce progress on several other fronts. The question of whether the structure and the capacity of the Commission is up to the challenge of the integration agenda is one that has preoccupied me from the assumption of office. For any organization to effectively execute its mandate, its structure, staffing and financing must be optimized for that purpose. That is why consolidating the architecture of regional integration is one of the key priorities. The OECS Heads of Government are sensitive to that reality and have agreed on a mechanism to ensure sustainable financing of the OECS institutions and some key CARICOM bodies and they will also be reviewing a new structure that is being proposed. Further, in the interim, the Commission through its Human Resource Unit has begun undertaking some fundamental initiatives geared towards facilitating effective change management in general, and strengthening leadership skills as well as enhancing its recruitment www.oecs.org

and talent specifically.

management

processes

organisations especially where there are clearly areas for conflict on many fronts?

BF: What management style do you bring to the table to realise and maximise on resources and generating results?

We cannot pretend that differences between the two integration processes do not exist. However one must appreciate that the OECS countries have more in common than do the wider membership of CARICOM. When Sir Arthur Lewis wrote “The Agony of the Eight” he argued that there was a more compelling commonality in the Eastern Caribbean than across the wider basin.

The management style is one that emphasizes staff empowerment and engagement of key stakeholders but which also holds people strictly accountable for their deliverables. In other words, emphasis will be placed on ensuring that service is efficient and inclusive, and that people are held responsible and are rewarded when they perform their tasks. BF: Yours is a difficult task having to satisfy so many Heads of Government and stakeholders whilst making both popular and unpopular decisions. Have you been able to sell yourself and your personal leadership style and work agenda successfully? I have no hesitation in making difficult decisions once I am empowered to do so. Navigating the needs and perspectives of different stakeholders is a normal dimension of a job like this and is part of what makes it exciting. Very often when we look at things on the surface, we see differences but when the issues are explored in some depth, those differences may not be as deep as they first appeared. Experience has also taught me that differences should be approached from a positive perspective – if we explore our differences so as to better understand them that exploration can sometimes lead to a modification of original positions with better outcomes for all. To achieve this requires that we listen to understand and not just listen to respond. BF: Do you agree with the six month period of rotating OECS Chairmanship or would you like to see an extended period of Chairmanship? If yes, then expand on the rationale. If no, then share the benefits for the Commission? CARICOM has a six month rotation of its Chair but in the case of the OECS, the Chairperson has a one year tenure of office. This works well for us because the longer tenure allows the incumbent Chair more time to shape objectives and define with greater precision the legacy and impact that he/she would like to make. BF: The achievements of the OECS Commission in comparison to those of CARICOM are admirable. What is the relationship between these two

These commonalities have made it easier for the OECS to achieve results in some areas that still elude the wider integration movement. We must be clear, however, that the OECS’ success lays the ground for CARICOM to succeed and both integration efforts must learn from each other if this aspiration is to be achieved. Ultimately CARICOM cannot succeed if the OECS does not succeed and equally the OECS cannot fulfil its mandate if CARICOM does not succeed. BF: The OECS Community have made significant progressive steps with Free Movement, a single economy, a single currency, a common Central Bank and other initiatives. Have we been able to harmonise the efficiency of Governments and their domestic agencies in the efficient implementation of programmes and delivery of services across the OECS Community? Each of the successes that you itemized here has also required varying degrees of harmonization of processes and organizational agendas and some rethinking about traditional notions of sovereignty – without that harmonization of monetary policy for example, we could not enjoy a common EC currency. Notwithstanding this, there is still a lot of work that needs to be done on the public sector reform front. The size, structure and cost of the public service is a challenge faced by each Member State and in every OECS country there are different initiatives being undertaken to rationalize the public service. In some countries, there are emergent best practices that are pointing the way to improving delivery of service to the public in a least cost model and many initiatives that have been improving productivity. There needs to be more sharing of these experiences so that, sooner rather than later, we can agree on the best reform and reengineering practices that need to be adopted by all Member States.

BF: Most of the economies of the OECS Member States are experiencing major economic challenges to include rising costs and high levels of unemployment. Ideally they have been economies based on the traditional sectors of agriculture, manufacturing and tourism which has emerged as the shining star in recent times. What are some of the strategies you believe need to be implemented as an OECS Community to turnaround these economies? We are in the final draft stages of an OECS Growth & Development Strategy (OGDS) which is essentially focussed on the question of what can we do differently and better to address economic turnaround and growth in the OECS. There are many key elements that need to be addressed. First of all we are very clear that any economic strategy must make youth employment, empowerment and entrepreneurship a demographic priority because youth are the most disadvantaged segment of the population of the OECS and also because a different future requires their fullest participation and energy. Secondly we recognize that the old model which relies heavily on foreign direct investment has not brought the results that we anticipated and that with the constriction of global aid and investment flows, we need to be more creative and self-reliant. To that end we are proposing new investment strategies that will better mobilize the resources of the Diaspora, the indigenous financial institutions such as the Credit Unions, and the OECS Stock Exchange to fuel the growth that we seek. In a nutshell here are some of the strategies that we are proposing: •

•

Create opportunity for greater private sector investment especially by the domestic private sector in productive growth areas of the economy that leverage the wider OECS single market space Reposition the OECS regionally and internationally as an emerging location for business – this includes leveraging our relations with Cuba, Mexico, Haiti, ALBA countries for stronger trade Revitalize exports through short term interventions in tourism and agriculture (including stronger linkages between them) and using WINFRESH as a vehicle for production and export of OECS value added agricultural goods Strengthen and widen the impact of the tourism sector through intersectoral linkages (with agriculture, culture and

OECSBusinessFocus Aug / Oct

• •

•

festivals) and development of niche opportunities (in yachting, community tourism, sporting tourism and health tourism). Implement the provisions for free circulation of goods and services across the OECS Single Space Improve the climate for business – harmonized business legislation and investment policy, seamless processes for business registration, licencing, taxation, labour regulations, investment facilitation Improve access to finance and capital - Portability of Collateral to support Pan-OECS business Address High cost and availability of appropriate finance for business – Export and venture capital finance; equity; multilaterals; Credit Unions; Development Banks Improve air transport - Progressively expand air services; Facilitate improved air connectivity through inter-lining; Enhance schedule integrity, predictability, convenience; Improve equipment and service quality and reliability; Improve airport facilities (throughput; security; hubs) Expand sea transport - Enhance the quality of shipping/level of service; Modernise informal OECS shipping cluster to become competitive with the formal sector, and sustainable; establish fast ferry service for the OECS; Improve seaport facilities Communication and ICT – Stronger liberalization of broadband to ensure universal access to larger bandwidth, number portability, removal of roaming in the OECS single space, and several conditions conducive to promoting/creating a digital economy.

The OECS Growth & Development Strategy also addresses some issues which have deep economic implications and impacts but which directly impact families and communities. This includes: •

•

Climate Change & Disaster Mitigation - mobilising financing for climate change adaptation and action plans for vulnerable sectors and communities; Adoption of harmonised protocol for conduct of vulnerability and post-disaster assessments; Integration of disaster risk reduction into environmental management programmes New attention to the Ocean - Develop an overarching OECS Ocean Policy to provide a framework for regional and national activities; Determine, legislate and register national baselines from

OECSBusinessFocus Aug / Oct

which maritime boundaries will be measured; Negotiate, agree and delimit maritime boundaries between OECS States and with third party States; Develop ocean economy by enhancing the ocean as a key element in the tourism and fisheries sectors, creating conditions for best use of the ocean and coastal zones The OGDS will be subject to the widest scrutiny that we can muster from key stakeholders that include the private sector organizations, the labour organizations and various sectoral interest groupings (in tourism, manufacturing, agriculture, ICT, cultural/entertainment industries and sporting interests). BF: The ECCU has since agreed to tighten banking regulations including the adoption of an amended Banking Act giving the sole rights to issue Banking Licences to the ECCB Governor. This new legislation has been implemented with varying responses in the member states. What are your thoughts on the future of the traditional and offshore banking sectors in the region, moreso in the light of regionalisation and the new AML / FATCA regimes? The Monetary Authority of the ECCB has taken these measures to ensure that we are able to protect the interests of depositors and ensure that our banks can meet standards that avoid insolvency. Situations such as the collapse of the Stanford business empire and its bank, the CLICO debacle were a wake up call for us in the region that has necessitated these measures. It is evident that the foreign banks operating in the region have been consolidating their positions and taking the steps necessary to shore up their profitability; it is necessary for the indigenous banks to work more closely together within the opportunities created by the Single Economic and Financial Space to network better and to consolidate as well. The future of the Offshore Banking sector is subject to incessant contestation by the more influential international players who are giving no quarter to us. The British Virgin Islands in particular has done exceedingly well as a jurisdiction of integrity that is regulated at an even more stringent level than some of the international jurisdictions yet it has been subject to unfair pronouncements and uncompetitive impositions. We need to be deeply conscious of these realities and be prepared to defend each other and our collective interests. The Rt Hon P J Patterson has warned about the unrelenting and unfair competition that

we face. He stated in an address in 2011 that: “None of us should believe that Autonomy and Independence constitute irreversible and unassailable gains for relatively small and powerless nations. The shadow of globalisation is as long as its grip is strong, and it carries within it the potential – if not the intention – by the powerful to make client-states of the weak and vulnerable, opening them-up as markets; assuming once again control of their factors of production; and reducing them to a state of dependency that compromises their autonomy” BF: It has been stated that for us to be successful, the business community needs to be the engine of growth with Governments being facilitators. When business grows, we feel the benefits across the society. We note the ECCB and OECS Commission being the catalysts for the formation of the OECS Business Council. Can you share the vision for this organisation and the ensuing benefits? The notion of the private sector being the engine of economic activity has become a truism but I believe that it is one that we need to embrace with some nuancing because the reality is that governments are still expected to make levels of provision for jobs, infrastructure, and other economic stimulants that contradict the truism. Whether the private sector is able to play that energizing role in economic growth really depends a great deal on the complexion of the private sector. If that sector is a largely distributive sector comprising businesses that just import and resell, its capacity to drive the economy is very constrained by the nature of its economic activity. If the sector is a highly productive sector involved in production of goods and services – whether for export or for domestic consumption – it is able to play a more aggressive role in driving economic growth. That is because its economic activity is creating jobs. We are dialoguing more closely with the OECS private sector to have this kind of discussion and to encourage a greater appetite for risk and investment in productive enterprises. We would also want to help create policies and incentives for stronger linkages between industries. The best example of this would be the growing linkage between tourism and agriculture that we need to grow exponentially. www.oecs.org

The OECS Business Focus is an important initiative in our effort to engage the OECS private sector. It is highly significant that it is itself a public-private partnership between AMS and the OECS Commission. We are jointly taking a product that has been successful and moving it to a much higher level of visibility and utility to make it a regular “must read” source of information on business developments in the OECS Single Economic Space. Timely, authoritative, practical information is the blood stream of an entrepreneurial culture and this is one medium that we intend to cultivate to provide it. The OECS Business Council we hope will become a powerful, inclusive and representative voice of the private sector of the OECS. Our role in establishing this is simply to plant a seed that we expect will grow autonomously. We would like to see the various private sector organizations across the OECS taking control of this body, making it representative of their varied interests and using it as a vehicle to articulate their needs to governments. BF: The Citizen by Investment Programme has now taken center stage as the new economic windfall with St Kitts and Antigua projecting it to generate 30% and 25% respectively of annual national revenues. All major OECS member states (St Lucia has agreed to implement it) except St Vincent have adopted the CIP. Is the OECS Commission and ECCB involved in any oversight of this Programme to protect the integrity of the member states and the citizenry? At the moment neither the OECS Commission nor the ECCB are involved in any oversight of the CIP. The countries which initiated this program have made independent efforts to ensure that the integrity of the program is maintained and that standards are established. In light of the increased interest by other Member States resulting from the success of the early adopters and also taking account of the debate occasioned by concerns expressed by other developed countries, the OECS governments are discussing among themselves the most appropriate way forward that will build on the successes but also avoid any pitfalls. It is important to also note that even the more advanced economies have some variant of economic citizenship programs in place – in the United States of America, over 6,000 “investor visas” have been issued in the current fiscal year. CNN Money

reported that “Under the government’s EB-5 Immigrant Investor program, foreign investors can get conditional visas that allow them and their families to live, work and attend school in the U.S. To qualify for the visa, they must invest at least $1 million in a new or recently created business, or $500,000 for businesses in rural or highunemployment areas. The investment must be demonstrated to have created or preserved at least 10 full-time jobs for US workers within two years. Assuming this condition is met, investors and their families graduate to permanent resident status, and can apply for full citizenship three years later.” Similar programs are in place in Malta, the Netherlands, Spain and the UK (which has a Tier 1 Investor and Tier 1 Entrepreneur program). We need to be aware of these realities because too often the richer more powerful countries flex their muscles – as they have done with the so-called blacklisting of the financial services industries in several Caribbean jurisdictions including some OECS countries like the BVI which have well regulated programs. BF: Several OECS Agencies have been major success stories such as the Pharmaceutical Procurement Services Unit, ECTEL and the Civil Aviation Authority. Are there any new Agencies being considered for establishment based on these models and our regional needs? We are being very cautious about the establishment of new agencies – Governments are very sensitive to the costs of creating and maintaining these agencies and in the OECS integration project we are guided by the need to ensure that the architecture of regional integration is lean and efficient, adds real value and direct benefits to the people of the OECS and are managed in a cost effective manner. Based on these principles we are examining opportunities to expand the remit of existing successful agencies such as the Pharmaceutical Procurement Services Unit to centrally procure other goods that could result in major savings for governments – school supplies and textbooks are one example. We have recognized the need to have some structured means of addressing consumer issues and competitiveness concerns but we have hesitated to create a Competitiveness Commission as recommended by CARICOM. We are examining and brainstorming ways in which the exercise of these watchdog functions can be executed through IT enabled crowdsourcing solutions and

empowerment of consumers themselves. We are also committed to working closely with those existing (CARICOM) regional institutions that are working effectively and are capable of efficiently delivering to our needs such as the Caribbean Development Bank, the Caribbean Telecommunications Union, CXC etc. – there is no need to reinvent the wheel if we have regional bodies that are working effectively. Equally we are stridently vocal and honest with respect to those institutions that are not adding value and which are in dire need of organizational reform. Things are too fiscally tight for governments to be spending money on institutions that don’t add real value and provide meaningful benefits. BF: Diplomacy has been a strategic component of Governments and the OECS Commission. It is assumed that the best approach should be more regional and shared diplomatic missions especially to manage costs and spread the global presence. Why has this approach not been more entrenched or is it being abandoned in light of a recent new St Lucia mission to Taiwan and Grenada mission to Florida. The Revised Treaty of Basseterre speaks clearly on the question of convergence of foreign policy for the advancement of Member States and the OECS has had a history of shared missions. There has also been the reality that individual Member States will have national imperatives that will from time to time necessitate that they made separate arrangements for representation. What is important here is how do we determine what arrangements are best under what circumstances. In an effort to answer this question, the Commission has prepared a concept paper for consideration of the OECS Authority reviewing the diplomatic representation of all Member States, their costs and the attendant arrangements and makes recommendations on the principles that should be applied and how these would play out with respect to shared representation. I can’t speak to the specific because the Authority has not decided on it as yet but I can give the assurance that the issue of how we optimize our diplomatic presence globally and maximize the returns on that diplomatic investment is high on the priority list of OECS Heads of Government and their Foreign Ministers. ¤ See the following link for the OECS Stats Magazine: http://www.joomag. com/magazine/oecs-stats-infocus/0748115001421180772 OECSBusinessFocus Aug / Oct

THE CATALYST FOR INVESTMENT & DEVELOPMENT

THE OECS COMPETITIVE BUSINESS UNIT By Vincent Philbert

Your Strategic Partner for Business Development Across the OECS

uring the last three years the Competitive Business Unit (formerly the Export Development Unit) has focused on promoting business competitiveness and export capacity in more than 200 client companies across the OECS. The companies were primarily small and medium enterprises (SMEs) and came from various sectors including food & beverage, furniture, garments and light Industries. In the Services Sector the work programme is centred on the development of the Creative Industries with a focus on audio-visual (film and music), fashion and craft. The CBUâ&#x20AC;&#x2122;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. The programme provides support to the firms based on three (3) related pillars. In the first pillar, attention is given to assisting enterprises to strengthen their OECSBusinessFocus Aug / Oct

human resources, internal processes and systems to enhance management and promote efficiency in operations. The second pillar examines product and service attributes of enterprises and delivers support for aspects such as technological processes, plant design and layout, packaging, quality systems and other product development and service delivery capacity enhancement. The third pillar supports marketing activities of enterprises, promoting product and service visibility, in traditional and new markets. The Unit serves as the foremost regional arm for advocacy and programme development, targeting the private sector. In delivering on its various undertakings, the Unit has been strategic in mobilising funding support and forging strong collaborative arrangements with various development partners. This has allowed the CBU to maintain active engagement with the SMEs in the OECS to help improve their businesses. During the past 5-10 years, the major partner has been the European Union through its European Development Fund (EDF) programme which focusses on support

for private sector development. With this funding support, the Unit has been placing emphasis on initiatives to stimulate regional business capacity to take advantage of the markets that are being shaped under the new trading

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.oecs.org

agreements, including the CARICOM CSME and the Economic Partnership Agreement with the European Union. Work in the Services Sector, (specifically the Creative/Cultural Industries), is guided by a regional Fashion Development Study which was prepared in 2014 to inform the nature of the activities to be undertaken. Some of the work undertaken by CBU include training projects for OECS Screen Writers, Boot Camp for Song Writers and Producers and support for regional players participation in international music and film events to promote exposure, networking and learning. The CBU’s work programme recognizes the importance of providing continuous support for the promotion and development of Business Service Organisations (BSOs), particularly as strong organs in the regional business environment. Support for capacity building and networking activities remain priority areas of focus for BSOs in tourism and agriculture; particularly since these are the leading sectors in the region’s economy.

An exciting, new area of work of the CBU is the Innovative Marketing Systems (E-Commerce) support programme for SMEs which was recently introduced in 2013 with the aim of stimulating innovation and E-commerce models of business engagement to enhance enterprise competitiveness and accelerate market penetration in external markets. Some of the highlights of this programme include the conduct of a regional survey of enterprises E-Commerce readiness which is being followed up with support to address gaps that may be hindering firms’ ability to do business on E-platforms. Another is the ongoing work to review and reform the regional architecture for conducting E-business; inclusive of E-Payments systems. With the advent of the OECS Economic Union, the accession of Martinique as an Associate Member of the OECS and the mandates enumerated in the Protocol to the Revised Treaty of Basseterre, the CBU’s work programme is being re-shaped to embrace a fuller role to promote business initiatives that can stimulate the region’s economic development and forge closer networks with new partners. The Unit plays a central role in translating into business actions and economic

co-operation the new institutional networks and collaborative arrangements that are being formalized with OECS Governments and the Business Support Organisations in countries such as Mexico, Cuba, Martinique and Canada. As the Unit looks toward 2018, new areas of work will include co-ordination of support for a Regional Maritime Transportation Development Programme, a Regional Investment Promotion Strategy with Fiscal Incentives Harmonization and Business Climate Reforms at its centre, a sharper focus on ICT development and application to Business Success, building upon the work started under the Innovate Marketing Systems (IMS) E-Commerce program and a defined agenda for promoting Youth Entrepreneurship across all of the priority sectors in which the Unit is engaged. ¤ For further information contact: OECS EDU at: P.O. Box 769, 4th Floor Financial Center, Kennedy Avenue,, Roseau Commonwealth of Dominica T: 767-448-2240 F: 767-448-5554 E: cbuinfocenter@oecs.org

OECSBusinessFocus Aug / Oct

THE CATALYST FOR INVESTMENT & DEVELOPMENT

Highlights on the OECS Agriculture Desk

By George Alcee

he OECS priorities for Agriculture are informed by the Revised Agriculture Plan of Action, the Food and Nutrition Security Policies and Action Plans developed for OECS Member States and the mandates given by the OECS Ministers of Agriculture. For improved governance for the implementation of the OECS Agriculture Plan of Action and national food and nutrition security policies and action plans, the OECS Commission has put together a Regional Task Force to follow up on the agreed approaches to implementation. The Task Force which is chaired by the OECS Commission comprises FAO, CARDI, IICA, WINFRESH, CARICOM and two OECS Member States: the Commonwealth of Dominica and Saint Lucia.

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In keeping with the Key Priorities of the OECS Agriculture Plan of Action, the main thrust of the OECS Agriculture Desk includes: •

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Transformation of agriculture through the promotion of and support to viable private sector initiatives, targeting markets for non-traditional exports and in the process raise average wage levels; Alleviation of poverty and reduction of food insecurity through policy and incentive regimes that transition semi-commercial rural populations out of poverty and vulnerability to poverty; Development and promotion of agro-tourism services and the establishment of criteria to identify, appraise, evaluate and develop and improve competitiveness of agrotourism goods and services;

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Adoption of a strategic approach to establishing synergies with the wider CARICOM/CSMR process;

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Formulation and implementation of a resource mobilization, investment and financing strategy for the OECS Agriculture Plan and Programme;

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Developing programmes to secure long term access to water for irrigation and supply chain activities; and

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Development, promotion and support to climate change mitigation and adaptation strategies. ¤

George Alcee holds an MSC in Agricultural Economics and a First Degree in Agriculture Business Management. He also holds a graduate diploma in Agriculture Extension and Rural Development and a Diploma in General Agriculture. George is employed at the Commission as the Programme Officer, Agriculture in the Economic Development Policy Unit. www.oecs.org

OECSBusinessFocus Aug / Oct

THEBUSINESS CATALYSTTECH FOR INVESTMENT & DEVELOPMENT

OECS Prepares for UN Climate Change Conference in Paris By: Dr. Asha Singh

he 21st Conference of the Parties (COP) to the United Nations Framework Convention on Climate Change (UNFCCC) -dubbed COP 21- is scheduled to take place in Paris in December 2015. The COP is an annual meeting occurring since 1994, where all countries that are signatories to the UNFCCC discuss global plans to reduce emissions of greenhouse gases in the atmosphere - the main culprit of rising global temperatures. This year, the negotiations are about reaching an agreement that will demand action from all countries to curb this climate problem. It is decided that a global agreement must be delivered at the COP-21. For the OECS, there is hope that a favorable climate deal will be met which will bring relief to the mounting social, economic and environmental impacts faced as Small Island Developing States (SIDS). Recognizing that the stakes are high, the OECS has embarked on a number of initiatives and partnerships to advocate for a meaningful agreement and in parallel to sensitize its citizens to COP 21 by providing a platform for exchange of information. OECS Partnership to Engage Civil Society In recent years, the OECS Commission in partnership with various Development Partners has embarked on a programme of collaboration on climate change. In January, 2015, through the collaboration of OECS and Government of France, the OECSBusinessFocus Aug / Oct

Working Partners for ‘Paris Climate 2015” (WPPC 2015) was launched and serves to a) provide a platform for information exchange among civil society in the OECS on issues relating to climate change; b) support the process of engagement; and c) facilitate a programme of sensitization among civil society. To date, a number of activities have been undertaken and many are planned, including citizens’ engagement in all the OECS Member States in various forms; a regional civil society symposium; newspaper articles and weekly broadcast on the OECS newslink on issues related to COP 21 and climate change. Further, the OECS plans to have a presence at the COP 21 forum in the form of a designated journalist (among others) to provide timely information on the negotiation process with the aim of keeping the citizens informed. More information on WPPC, 2015 can be accessed at http://www.oecs.org/our-work/forum/ wppc2015

Summit convened by the Regional Council of Martinique in May 2015. Expectations and Optimism Fewer than 180 days to the Paris conference, yet deep differences persist on several issues, and the frantic pursuit of a compromise continues. However, COP 21 offers a renewed opportunity for the global community to show maturity to the cause and effect of climate change, which must be addressed with an appropriate sense of urgency. The OECS Commission will continue to partner with various Development Partners, to champion climate change on behalf of its citizenry and to ensure it remains at the forefront of the dialogue leading to COP 21 and beyond. ¤

OECS Diplomatic Initiative in COP 21 OECS, through the Office of the Director General, continues to advocate at the various diplomatic levels to ensure that the challenges, impacts, concerns and requirements of the OECS, Caribbean nations and SIDS in general are known and considered in the negotiations. Active engagement to shape the CARICOM negotiating position is being pursued and a Caribbean Declaration was presented at the recently concluded climate change

Asha Singh holds a Ph.D. in Marine Policy awarded for research done on ‘SIDS, sustainability and the Caribbean Sea’ and is employed as Head, Oceans Governance Unit. www.oecs.org

Cancer Center Eastern Caribbean

OECSBusinessFocus Aug / Oct

THE CATALYST FOR INVESTMENT & DEVELOPMENT

A Coordinated Approach to Tourism Development in the OECS

By Dr. Lorraine Nicholas

he OECS Tourism Desk is principally responsible for developing and executing a coordinated approach to tourism development in the OECS with a view to optimising the social, economic and environmental benefits of tourism to OECS Member States. To achieve this, the Tourism Desk plays a facilitatory role by providing technical advice and mobilising support for Member States. The work of the Desk is guided by the VISION for Tourism in the OECS: “The OECS region develops a tourism industry that is viable, internationally competitive, resilient and sustainable via collaboration and synergies whilst improving the quality of life of its citizens” In fulfilment of Article 21 of the Protocol on Economic Union of the Revised Treaty of Basseterre, the OECS Tourism Desk has developed a Common Tourism Policy which highlights priority areas where OECS Member States should work together to enhance the competitiveness of Tourism. These include: investment and product development; research; human resource development; tourism awareness; marketing; community participation and sectoral linkages; and cultural and environmental sustainability.

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The Tourism Desk has been actively working with Member States to implement this Common Policy through the following initiatives: 1. Facilitation of Ease of Travel in the OECS – the creation of a single shared space for Tourism whereby visitors coming into the OECS region will clear Customs and Immigration only at their first port of entry. Work is also progressing in the creation of a one- stop security check system to eliminate the need for in-transit passengers to undergo further checks. 2. Joint Promotion – the promotion of the OECS region as a single sailing destination given that the yachting sector is acclaimed a prime niche sector within the region. To date the OECS participated in two International Boat Shows; one in the United States in 2014 and the other in Canada in 2015. The OECS Commission also plans to execute a European Road Show in 2016. 3. Community-Based Tourism (CBT) Programme –the implementation of a CBT programme to foster increased involvement of local people in tourism and to increase the direct benefits from the sector; while diversifying the product offering in the region. Key elements of this programme includes: undertaking

national consultations; undertaking study tours to Jamaica and the French West Indies; providing direct support to communities to develop and improve their products; certification of products; and packaging compatible products. 4. Human Resource Development – the implementation of a project to enhance the human resources in the tourism/hospitality sector. The OECS Network of Excellence in Tourism and Hospitality Training and Education (NETHTE) is designed as a cohesive, self-sustaining, blended-learning, tertiary-level to meet the education and training needs of the dynamic tourism/hospitality sector in the OECS region. 5. Inter-Sectoral Linkages – the strengthening of linkages between tourism and other key sectors such as agriculture, the creative industries, heritage and sports. ¤

Dr Lorraine Nicholas holds a BSc. in Tourism Management and an MSc. in Tourism and Hospitality Management from the University of the West Indies. She is a Fulbright Scholar with a PhD. in Tourism Management from the University of Florida. She is Programme Officer (Tourism), in the Economic Development Policy Unit at the OECS Commission. www.oecs.org

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OECSBusinessFocus Aug / Oct

BUSINESS TECH

The OECS Youth Entrepreneurship Programme

“

Nutten nah gwan fuh we Mr. Minister.” “Is a wuk me uh look.” “Garcan mwen vle travay.” are the cries heard from our youth today. Youth in the OECS face several challenges like crime, violence; unemployment; and limited access to continuing education opportunities. OECS youth unemployment rates range from 19.9% in Antigua and Barbuda to 33.8% in Saint Vincent and the Grenadines where many young persons are forced to remain in temporary or low-productivity jobs. Despite this reality, a range of entrepreneurship opportunities can be made available to our young people that will relieve unemployment, especially if provisions are made to empower them to take the initiative and seize opportunities by embracing cottage industries; transferring theoretical skills to real life; approaching businesses to offer their insight; and collaborating with other youths to form stronger businesses. What is key, is that youth should be given maximum opportunities to help shape and develop relevant programs that will be supported by governments and organizations that encourage youth entrepreneurship. An OECS Youth Entrepreneurship Program largely designed by youth and for youth would not only provide a much-needed holistic approach towards youth employment but would also reinvigorate the Region’s economies. This holistic approach is being taken with the development of the OECS Youth Strategy, through the use of focus group discussions, allowing youth to drive and shape the Strategy in a direction that best suits their needs. This Strategy will focus on initiatives such as “Bank on Me”; OECS Youth Talk and an Adopt a Block/ School Programme. There is vast potential and a plethora of novel ideas among the youth, but what is needed is firm planning and financing with the youth themselves

OECSBusinessFocus Aug / Oct

By Kim Clarke

being integrally involved. Businesses such as fashion, music and audio visual should be firmly tapped into, to expose hidden and untapped potentials. Developing the entrepreneurial potential of our youth would create innovative alternatives to public sector employment, while at the same time teaching them the values of self-motivation and self-dependency. The program will be vibrant, meeting the needs of the youth where they are. It will be a collaborative and highly inclusive effort with the support of various parties including government agencies, the Chambers of Commerce, financial institutions, schools, NGOs and local businesses. Developing buyin from and forging partnerships with the local community are key factors to success, which will help to ground the initiative in the needs and demands of the community. Maintaining a broad network of stakeholders will create a useful and diverse network of support for program participants; thereby providing organizers with a natural advocacy network. In shaping an appropriate OECS Youth Entrepreneurship Programme, there will be need to take a good look at what presently exist in individual Members States with a view to seeing what works and converging those best practices to get a more targeted and integrated Regional programme. There will be a need to tap into un-touched markets, letting the creative juices flow in order to provide a product or service which has not already flooded the market as well as expand or upgrade what presently exists. Cottage industries can generate income and employment for young people while costing very little to start-up and can be operated right out of the home. If, for instance, there is an innovative and viable idea with limited start-up funds, then this initiative will be integrated into the regional Program.

There are some success stories within the region in cottage industries. Caribbean youth have branched out in the sector of health/wellness producing skin treatments, insect repellants, massage oils, perfumes and soaps using local natural products. Grenadian owned, Caribbean Naturals, is a cottage industry which blossomed into an online store offering a range of high quality natural products, promoting good health, wellbeing and personal enjoyment. Owner Debra Mason seized an opportunity and is now reaping the economic benefits. Even greater potential can be found in creating hair products for black women and their natural hair. Shampoos, conditioners, hair treatments, pomades and gels are on the increase in foreign markets for tightly coiled hair. Many of these products either do not meet consumer needs or those that work disappear quickly from local shelves. Investments can be made in this market in a sustainable way, using the natural ingredients from our backyard. Another potential area is the export of breadfruit and carambola and their byproducts. Breadfruits can be used whole or to make breadfruit chips; fudge; and flour. There is much revenue to be gained from exporting this starchy fruit which is plentiful in the Region. The growing use of hydroponics farming also needs to be explored where farmers can grow a variety of healthy fruits and vegetables, such as cucumber, strawberries, blueberries and other fruits normally grown on the international fields, selling to local restaurants and supermarkets while contributing to the reduction of the food import bill. Another emerging business opportunity is that of care of the elderly. There is a growing aging population and consideration should be given to services like running errands to the banks, food shops/restaurants for the elderly, security, taking them for health care when family are not available. The recipe for a successful Youth Entrepreneurship Program for the OECS region is one that is developed with the integral involvement of youth and will consider the unique qualities of the Region while promoting and fostering quality businesses, offering unique products and services that could be sold at higher prices, on the regional international markets. ¤ Kim Clarke holds an MSc. Degree in Economic Development Policy and is employed at the OECS Commission as a Research Officer in the Social Development Unit. www.oecs.org

OECSBusinessFocus Aug / Oct

THE CATALYST FOR INVESTMENT & DEVELOPMENT

ECTEL Celebrates 15th Anniversary

Prime Minister Dr. Kenny D Anthony Speaking at ECTEL 15 Anniversary Conference

“COMMITTED TO BROADBAND AND OPEN ACCESS IN A DIGITAL WORLD”

By: Theresa Daniel

he Eastern Caribbean Telecommunications Authority, ECTEL turned 15 on May 4th, 2015. It was exactly fifteen years ago that leaders of the Commonwealth of Dominica, Grenada, St. Kitts and Nevis, Saint Lucia and St. Vincent and The Grenadines signed on to the Treaty establishing the regulatory body. The historic Treaty was signed in St. George’s, Grenada. It provides for harmonised laws and functions, coordinated resources management and facilitates open entry, competition and development of a single space for investment in the five sovereign states. ECTEL is the regulating body for telecommunications in its Member States, and the world’s only multi-state telecommunications regulator. Its main objective is to encourage open entry, market liberalisation and competition in Member States. Saint Lucian Prime Minister, Dr. Kenny Anthony, was among other Prime Ministers who were at the helm of telecommunications reform and led the fight in an environment, which, at the OECSBusinessFocus Aug / Oct

time, was characterised by high prices for telephone calls, inefficient, unreliable and slow internet service and most importantly, the existence of a monopoly and the accompanying nonchalance and poor customer service. Speaking at the opening of ECTEL’s fifteenth anniversary conference in May, the Prime Minister reminisced about the challenges of liberalisation, and paid homage to ‘ECTEL pioneers’ and ‘warriors of liberalisation’, singling out his former Minister of Public Utilities and Chair of the ECTEL Council of Ministers - Calixte George. “Fifteen years ago when these five small island states solidified the liberalization of telecommunications through the ECTEL Treaty signed in Grenada, telecommunications was at a cusp and we needed to be riding on the wave and not remain on the backwash of technology,” Dr Anthony noted. “We knew that our populations were being shortchanged due to the absence of competition and effective market regulation. We knew too that we had backward and outdated technology,” he added.

Noting that the reality of pre-liberalisation was quite different then than what it is today, the Prime Minister of Saint Lucia urged participants at the conference to keep abreast of the ever changing technology since we are still somewhat behind in comparison with the rest of the world. He believes that in order for us to do so as a region, we should pool our resources more. “We ought to collaborate however we can, we cannot be left behind if we believe in the transformative power of information and communications technology to our entire socio-economic milieu,” Prime Minister Anthony said. The Prime Minister acknowledged that broadbrand has become central to nation building and while it will be driven largely by market competition and good regulation the State must play its part in securing the best deals for all citizens. “ECTEL has been a remarkable creation of regional states. It has served our sub region well. However, it must always remember that it was created to serve the people of the region,” the Prime Minister cautioned. www.oecs.org

Hon. Gregory Bowen, Chairman of the ECTEL Council of Ministers (2014 -2015) has identified the role of ECTEL beyond simple regulation of the sector. In his address at the opening of the fifteenth anniversary conference he stated, “Our Governments remain committed to ensuring a robust electronic communications sector that benefits each and every citizen in our respective jurisdictions. We are indeed “Committed to Broadband and Open Access in A Digital World.” Surely, while there has been increased telecommunications services within our space, with mobile voice being near universal, universal access to broadband services will occupy our attention going forward.”

mapped the growth in the patterns of consumption of services, and the growth in investment in the sector. The sector review has become a significant information source for policy makers and researchers. During the past five years there has been a deepening of the collaboration with regulatory and policy agencies in Antigua and Barbuda and Montserrat on a range of issues such as spectrum management, numbering and pricing of telecommunications services.

Delegates at ECTEL 15 Anniversary Conference

Since its inception ECTEL has achieved a significant amount of milestones and has granted hundreds of licences to private and public sector providers. One of its major achievements is the implementation of the Universal Service Fund (USF). Established in accordance with the Telecommunications Act, this initiative serves to ensure the widest possible access to telecommunications at an affordable rate. The fund is managed by the National Telecommunications Regulatory Commission – NTRC, and in each Member State. Projects ranging from provision of Internet service in rural communities including resource centers, schools and community centers, rehabilitation of Youth Skills Training Centers, provision of ICTs for persons with disabilities and installation of payphones to underserved areas, have all been successfully implemented in Member States. The ECTEL Directorate, which is based in Saint Lucia, publishes annually a review of the performance of the telecommunications and electronic communications sector in the ECTEL Member States. This document has

Managing Director Embert Charles is of the view that ECTEL’s achievement over the last fifteen years can best be assessed by looking at what would have happened had the entity not been in existence. “One of the key measurements we can look at is the significant drop in mobile rates from the time mobile was introduced into the region to now. I think we also need to look at the extent to which the ordinary person has access to communication facilities that can reach out to family across the islands as well as across the region, “ Charles asserts. He adds: “If you look at the figures as well there has been a significant investment in the telecoms sector. We have had new investors coming in and there is still an interest in investing in the sector because of the changes in technology.” He notes that there are a few areas that need to be worked on, but the fact remains that the region has been able to better come together as we can now communicate at a more rapid rate and at a more affordable price than we could, more than fifteen years ago.

According to Charles, who has been at the helm of the regulatory body since 2008: “The observance of fifteen years of operation has presented the opportunity for ECTEL to further enable the people of the OECS region to build on the gains of liberalisation. These include the continued expansion of affordable mobile services and increased choice in virtual entertainment.” Charles feels that a more efficient, informed and consumer-focused regulator will also enable the people of the region to benefit more from innovations in services brought about by the extended use on the internet and broadband. ECTEL Managing Director Embert Charles

“Committed to Broadband and Open Access in a Digital World” is the theme for the 15th Anniversary celebrations. Two major regional events will be the highlight of the observances for ECTEL’s 15th Anniversary. They are a conference, which was convened on May 11 – 12, 2015 at the Bay Gardens Hotel in Rodney Bay, Gros Islet, Saint Lucia in collaboration with the Ministry of Sustainable Development, Energy, Science and Technology of Saint Lucia; and a regulatory training course for ECTEL staff and NTRC’s which was held in Basseterre, St. Kitts, June 29 - July 3rd, 2015. ECTEL also plans to engage the public via a series of initiatives throughout Member States. ¤ Theresa L Daniel holds an MSc in Social and Public Communication from the London School of Economics and Political Science, a BA Honours Degree, as well as a Diploma in Mass Communication from the University of the West Indies, Mona, Jamaica. She has been employed with ECTEL in the Office of the Managing Director, as the Corporate Relations and Communications Officer since April, 2015. OECSBusinessFocus Aug / Oct

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FEATURE

St. Kitts Nevis &

EXPLORE ENJOY INVEST St Kitts and Nevis lie in the northern part of the Leeward Islands in the Eastern Caribbean and are separated by a strait two miles wide. The shared land mass is 104 sq miles with a combined population of 45,970.

History St Kitts and Nevis have one of the longest written histories in the Caribbean, both islands being among Spain’s and England’s first colonies in the archipelago. St Christopher (St Kitts) was sighted by Christopher Columbus on his second voyage in 1493. It was colonised by the English under Sir Thomas Warner in 1623 and during the following centuries sugar cultivation was the mainstay of the economy. St Kitts was ceded by the French to Britain by the Treaty of Versailles (1783) and Nevis was settled by the English in 1628. Its strategic location and valuable sugar trade led to an advanced and luxurious development over the years that was among the best in the Colonial Caribbean.

Government The Federation of the twin island state of St Kitts and Nevis attained full political independence in September 1983 and enjoys a democratic type of Government. The Governor General is Her Majesty’s representative. At General Elections held in February 2015, Team Unity – a coalition of political parties from both islands won at the polls and formed the new Federal Government which is headed by Prime Minster Dr Timothy Harris and is based in Basseterre, St Kitts. Nevis enjoys internal self-Government and is managed by the Nevis Island OECSBusinessFocus Aug / Oct

Administration which is headed by Premier Vance Amory who is also a Minister of the Federal Government.

The Economy St. Kitt’s sugar cane production spanned over three hundred and fifty years. The industry was closed down in 2005, due to the removal of trade preferences and uncompetitive production costs.

the country and the citizens and this is the reason why they offer generous incentive packages in terms of Corporate Tax Incentives, Export Allowance, Exemption from Import Duties, Hotel Aids Act and Repatriation of Profits.

Tourism

The transition of St. Kitts and Nevis (SKN) to a modern service economy has been quite steady from 2005 with tourism being the main industry hosting around 100,000 stay-over visitors and 500,000 cruise ship passengers annually.

With tourism being the major industry, the government has promoted its expansion by offering several programmes to attract foreign interest and investment including offering lands available for development.

The other major economic drivers are international financial services, real estate, construction, manufacturing, wholesale and retail trading, and transport and communications.

Investors interested in the development of hotels, villas and condominiums take advantage of the available incentives under the Hotel Aids Act and the Government’s Citizenship Programme. The island is definitely geared for major development as the government has played a key role in attracting worldfamous hotel chains such as the Park Hyatt and Kol Resort.

Exports mainly include electronic component production for the US market. The island also boasts of four US-based universities which help in providing medical and veterinary training to around four thousand students. With their per capita income roughly at US$14,360, St. Kitts has recently graduated to the category of a highincome country as per the World Bank standards. The Government of St. Kitts have a positive outlook on all those investments on the island which favour the growth of

St. Kitts has become a luxury property market with the real estate development occurring at an incredible pace. The Citizenship by Investment programme, which was established in 1984, is one of the most distinguished economic citizenship programmes in existence and the government makes use of this initiative to bring in foreign investors with good character who will positively contribute to the island’s development. ¤ www.oecsbusinessfocus.com

St. Kitts Investment Promotion

OECSBusinessFocus Aug / Oct

OECS NEWS FEATURE

Ministers of Government of the Federation of St. Kitts and Nevis

The Hon Shawn Kenneth Richards Deputy Prime Minister and Minister of Education, Youth, Sport and Culture

Hon Dr. Timothy Sylvester Harris Prime Minister and Minister of Finance, Sustainable Development, National Security, People Empowerment and Constituency Empowerment OECSBusinessFocus Aug / Oct

Hon Lindsay Fitz - Patrick Grant Minister of Tourism, International Trade, Industry and Commerce www.oecsbusinessfocus.com

Hon Vance Winkworth Amory Senior Minister, Minister of Nevis Affairs, Labour, Social Security and Ecclesiastical Affairs

Hon Mark Anthony Graham Brantley Minister of Foreign Affairs and Aviation

Hon Eugene Alastair Hamilton Minister of Agriculture, Health, National Health Insurance, Human Settlement, Community Development, Gender Affairs, Social Services, Co-operatives and Lands

Hon Ian Patches Liburd Minister of Public Infrastructure, Post, Urban Development and Transport

Hon Senator Vincent Fitzgerald Byron Attorney General and Minister of Justice, Legal Affairs and Communications

Hon Wendy Colleen Phipps Minister of State within the Ministry of Health, Community Development, Gender Affairs and Social Services OECSBusinessFocus Aug / Oct

OECS NEWS FEATURE

A PROFILE

Dr Timothy Sylvester Harris Prime Minister – St Kitts and Nevis

imothy Sylvester Harris was born on January 14, 1964 in Tabernacle, Saint Kitts and is the current Prime Minister of Saint Kitts and Nevis. He previously served as the Foreign Minister from August 10, 2001 to January 25, 2013. Dr. Harris grew up in the rural village of Tabernacle and attended the Cayon High School and Basseterre High School before making his journey to six university campuses, two in the Caribbean and four in Canada to further his education. In 1988, Harris graduated from the Cave Hill Campus of the University of the West Indies with a B.Sc. degree with a First Class Honours in Accounting being the only graduate of the B.Sc. Accounting programme to obtain this distinction. He also received the Victor Crooke Prize for Best Accounting Student. He returned to St Kitts- Nevis and worked for two years at a managerial level with S. L. Horsford and Co Ltd. In 1990-92 he pursued his M.Sc. degree in Accounting at the St Augustine Campus of UWI in Trinidad and again excelled graduating at the top of the class with an M.Sc. degree with a Distinction in Accounting. In 2001 Harris successfully defended his Ph.D. dissertation at Concordia University in Montreal, Canada. The doctoral programme is a joint Ph.D. programme involving Concordia University, Mc Gill University and two French Universities H.E.C. OECSBusinessFocus Aug / Oct

and UQAM. Harris holds a Doctor of Philosophy degree in Administration majoring in Accounting. Harris participated in elective politics in 1993 and since then won his seat on a St. Kitts-Nevis Labour Party ticket, in each parliamentary elections held in 1995, 2000, 2004, and 2010. Dr Harris has served as: Minister of Agriculture, Lands and Housing, Minister of Education, Labour and Social Security, Minister of Foreign Affairs and Education and Minister of Foreign Affairs, International Trade, Industry and Commerce. He has published several works and received several awards. Including the St Kitts Youth Council Award for Excellence in Education, the FESTAB Community Award for outstanding contribution to FESTAB and a certificate for outstanding contribution to the Cayon High School. In 2013, Dr. Harris was relieved of his portfolio and terminated relations with the Labour Party. Dr. Harris then established the People’s Labour Party (PLP) later in the year. In the buildup to the 2015 general elections the PLP partnered with the People’s Action Movement and the Concerned Citizens’ Movement formed the Team Unity alliance. The alliance won the elections, and although the PLP won only one seat, Dr. Harris became the third Prime Minister of St Kitts and Nevis on 16 February 2015. He succeeded the incumbent Dr Denzil Douglas who served a historic 20 year tenure. ¤ www.oecsbusinessfocus.com

St Kitts Nevis Tourim Authority

OECSBusinessFocus Aug / Oct

OECS NEWS FEATURE

Good Reasons

to Invest

t. Kitts and Nevis is fast becoming a magnet for Foreign Direct Investment (FDI) in key sectors such as tourism related real estate, financial services and offshore education; primarily medical university institutions. The economic outlook for St. Kitts and Nevis is bright coming out of the global recession. The St. Kitts and Nevis economy is projected to have grown by 5.4 % in 2014 and growth is expected to continue into the medium term. Income from the Citizenship by Investment Program, construction sector, manufacturing and tourism

KOI Resort and Residences St. Kitts

technology, education services, renewable energy and limited light manufacturing. The government has a favorable attitude towards investment. As such, it has instituted a number of investment incentives for businesses considering the possibility of locating in St. Kitts or Nevis, encouraging both domestic and foreign private investment. Government policies provide liberal tax holidays, duty-free import of equipment and materials.

Resort Development Nevis

has helped the economy to reduce its indebtedness and economically recover after four years of stagnant economic growth. In fact, St. Kitts and Nevis has been the leading exporter of manufactured goods to the United States in the Eastern Caribbean for the past few years. The Government of St. Kitts and Nevis strongly encourages foreign direct investment. St. Kitts and Nevisâ&#x20AC;&#x2122; foreign direct investment policy is to attract FDI into the priority sectors as identified under the National Diversification Strategy. These include financial services, tourism, agriculture, information OECSBusinessFocus Aug / Oct

Tax incentives can be in the form of exemption from import duty on materials for approved projects, tax holidays of up to 15 years and export incentives. The Government has designated areas in St. Kitts where foreign investment in tourism is incentivized under the Hotel Aids Act. The Law allows for exemption from import duty on material, a tax holiday of 10 years for the refurbishment or construction of a hotel with 30 or more bedrooms and 5 years for hotels with 10 to 29 bedrooms. These areas include; The South East Peninsula, Frigate Bay and the Whitegate Development area. www.oecsbusinessfocus.com

East Caribbean Central Bank

OECSBusinessFocus Aug / Oct

OECS NEWS FEATURE

Ross University St. Kitts

Companies registered in St. Kitts and Nevis have the right to repatriate all capital, royalties, dividends and profits free of charges on foreign exchange transactions. There are no exchange controls in St. Kitts and Nevis and the invoicing of foreign trade transactions may be made in any currency. The Government treats foreign investors and local investors equally with respect to the establishment, acquisition, expansion, management, conduct, operation, and sale or other disposition of investments in its territory. Foreign investors may also hold up to 100% of an investment.

St. Kitts and Nevis has become a very attractive destination for medical education institutions with six accredited schools currently offering higher education in medical, veterinary medicine and nursing studies. The first of these schools; Ross University School of Veterinary Medicine (RUSVM) which boast of having over 2000 graduates was established in 1982 and has full accreditation status from The American Veterinary Medical Association (AVMA) for a period of seven years to offer the Doctor of Veterinary Medicine degree program.

Zenith Nevis Villas

Chris Nevis Wilkins Gallery OECSBusinessFocus Aug / Oct

Airport Solar Project St. Kitts www.oecsbusinessfocus.com

Port Zante St. Kitts

The reasons St. Kitts and Nevis is an idyllic investment haven for medical education institutions, are the local infrastructure and supporting services. In order to operate in St. Kitts and Nevis, a school must be certified by the St. Kitts and Nevis Accreditation Board which is guided by two Acts; The St. Christopher and Nevis Accreditation Act, 1999 and The St. Christopher and Nevis Accreditation of Institutions (Amendment) Act, 2001. St. Kitts and Nevis is currently witnessing a spike in tourism related real estate development. This growth is spurred by the country’s economic Citizenship by Investment Programme. These include the following:

St. Kitts’ Robert L. Bradshaw International Airport

Christophe Harbour Development : planned as a treasure of the new Caribbean, Christophe Harbour comprises luxury residences, a mega yacht marina, an 18-hole Tom Fazio golf course, hotels, restaurants and much more. The Park Hyatt Hotel, Koi Hotel and Resort, Pelican Bay Resort and Kittitian Hill Resort, Tamarind Cove Marina, and Fisherman’s Cabana to name a few. There are already a number of large scale projects in the investment pipeline, which could significantly enhance FDI growth prospects for 2015 and beyond. ¤

Four Seasons Hotel Nevis OECSBusinessFocus Aug / Oct

OECS NEWS FEATURE

Private Terminal St. Kitts

Kittitian Hill Resort

Christophe Harbour Development

For more information about “Investing in St. Kitts and Nevis” Please Contact: The St. Kitts Investment Promotion Agency 3rd Floor Cable Building Cayon Street, Basseterre, St. Kitts Tel. (869) 465-1153 Fax (869) 465-1154 Email: office@investmentpromotion@investstkitts.info Website : www.investstkitts.kn Nevis Investment Promotion Agency P.O. Box 1063 Suite 1 Horsfords Business Complex 2nd Floor Farms Estate Nevis, West Indies Tel: +1 869 469 0038 / +1 869 469-5521 ext 2172 Fax: +1 869 469 0039 Email: info@nevisipa.org Website: www.nevisipa.org

Master Site Plan-Port Zante St. Kitts

Farming St. Kitts

Koi Resort, St. Kitts OECSBusinessFocus Aug / Oct

www.oecsbusinessfocus.com

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OECS NEWS FEATURE

Citizenship by Investment: The case of St. Kitts and Nevis Introduction Citizenship by Investment (or Investor Immigration) Programmes have drawn considerable media attention in recent years, especially in the OECS where a number of countries have been operating Citizenship by Investment Programmes. This article, submitted at the request of the OECS Secretariat, is intended to provide greater insights into the programme in St. Kitts and Nevis, from the standpoint of a private entity offering citizenship by investment services internationally from its offices in St. Kitts and Nevis. Immigrant Investor Programmes Around the World Immigrant Investor Programmes have been in existence since the 1980’s starting with the St. Kitts and Nevis Citizenship by Investment Programme (CBIP), which was established in 1984 (just one year after St. Kitts and Nevis obtained Independence), with a view to accelerating growth and development in the fledgling nation. Since then numerous countries have followed suit in pursuit of various economic objectives. For instance, Canada launched its Immigrant Investor Programme in 1986 with the aim of “having experienced business people contribute to Canada’s growth and long-term prosperity by investing in Canada’s prosperity.” Similarly, according to the United States Citizenship and Immigration Services (USCIS) the Investor Immigrant Program in the United OECSBusinessFocus Aug / Oct

States, also known as EB-5, “was created by Congress in 1990 to stimulate the US Economy through job creation and capital investment by foreign investors.” Under the EB-5 programme of the United States the minimum qualifying investment is US$1 million but this amount would be cut in half, to US$500,000, if the investment is in a High Employment or Rural Area. Apart from St. Kitts and Nevis, Canada, and the USA, numerous countries have obtained significant economic benefits from Investor Immigrant Programmes that have taken a variety of shapes and forms in relation to structure, process, the financial and investment requirements, and the residency requirements. These include the United Kingdom, Australia, Malta, Cyprus, Singapore, Hong Kong, Belgium and a number of Caribbean Countries including Dominica, Antigua and Barbuda, and Grenada. The St Kitts and Nevis Citizenship by Investment Programme (CBIP) The St. Kitts and Nevis Citizenship by Investment Programme grew by leaps and bounds after it was restructured in 2006 through the termination of the Government Bond option for obtaining citizenship; the introduction of the Sugar Industry Diversification Foundation (SIDF) option; the increase in fees and in the minimum investment requirement in relation to the real estate option; and the introduction of a new marketing initiative aimed at bringing the programme to

By: Natalie John

the attention of potential investors all over the world. The Sugar Industry Diversification Foundation was deemed necessary because the closure of the sugar industry in 2005 created a need for new sources of revenues and foreign exchange earnings to keep the economy afloat and to provide resources for social safety net payments to over 10% of the workers of the Country, who were displaced and risked being pushed below the poverty line as a result of the demise of the sugar industry. Under the SIDF option, persons or families who contribute between US$250,000 and $400,000 (or more in the case of large families) are eligible to apply for citizenship by investment. Under the real estate option persons and families who invest US$400,000 in approved real estate projects (mainly hotel and condominium projects) and pay taxes and fees averaging over US$100,000 are eligible to apply for citizenship. The investment and fees do not guarantee citizenship because the applicants must be subject to due diligence investigations that are carried out by international due diligence providers, and they must also meet all of the other legislative, regulatory and administrative requirements of the programme. The Economic Impact of the St. Kitts and Nevis Citizenship by Investment Programme The CBIP, and the SIDF in particular, has certainly played a crucial role in helping www.oecsbusinessfocus.com

St. Kitts and Nevis transition from a sugar monoculture to a more modern servicebased economy. However, in my view, the biggest economic impact of the CBIP on the economy of St. Kitts and Nevis is in relation to debt reduction. The IMF recently reported that the public debt of St. Kitts and Nevis was cut in half from 160% of GDP (one of the highest in the world) to 80% of GDP in the four years between 2010 and 2014. This is a most remarkable achievement by any standard and it is due primarily to the operations of the CBIP which in 2014 contributed 14% of GDP to the revenues of the Government of St. Kitts and Nevis, and was the single most important contributor to the very healthy fiscal surplus of some 9.5% of GDP in that year. According to the IMF, the CBIP also fueled a construction boom and boosted SIDF and public sector spending to help increase the growth rate to an average of some 6% per annum over 2013 and 2014, which is by far the highest in the region to date. Moreover, the range of hotel and condominium projects under construction and the transformation of the infrastructure of St. Kitts and Nevis in recent years, through the resources provided by the CBIP, have set the stage for sustained growth and enhanced development in the foreseeable future. The Role of the Private Sector in the CBIP The economic benefits of the Citizenship by Investment Programme go well beyond the required minimum investment and the fees that applicants are required to pay. In the St. Kitts and Nevis programme, for instance, all applicants are high net worth individuals with the potential to undertake major investments in the country, outside of the requirements of the CBIP. However, the private sector must take the lead in introducing them to investment opportunities and services. At CGC, we invite all successful citizenship applicants to make a contribution to our Federation and we provide them with general information about St. Kitts and Nevis and about investment opportunities in the country. In addition, depending on their interests, we introduce them to the relevant Government Departments and Ministries so that they could get a more detailed insight into the policies and priorities of the Government and of the requirements for the specific sectors of interest to them. In advising clients on potential investments we also take cognizance of the Government’s Physical

Development Plan in relation to the specific areas in which the Government or relevant public corporations, such as the Whitegate Development Corporation, would wish to attract various types of projects, and we consult with the St. Kitts Investment Promotion Agency concerning fiscal and tax incentives and other relevant information that would assist investors. CGC also maintains a relationship with successful applicants and assist them, either directly or through our related concierge services enterprise, Elite St. Kitts, in procuring all local services that they may require from time to time. We also keep all existing and past clients up to date on an ongoing basis in relation to current developments and investment opportunities through our quarterly publication, Elite St. Kitts Newsletter. In addition, in our very extensive international marketing efforts, we place considerable emphasis on investment facilitation services, and promote citizenship services as complementary to the investment facilitation function. The efforts of CGC have been very successful in attracting significant inflows of investment to St. Kitts and Nevis. Specifically, we have attracted or facilitated investments in a number of the major projects in St. Kitts and Nevis including Koi Resort & Residences, Imperial Bay Beach & Golf Residences, Rendezvous Hill, Heldons Resort & Residences and Pelican Bay Embassy Suites hotel. We have encouraged one of our clients to establish an education foundation, Liamuiga Education Foundation, which provides grants for the benefit of St. Kitts & Nevis students interested in pursuing higher education. As a licensed corporate services provider that offers a wide range of financial, corporate governance, immigration, concierge, real estate, and destination wedding services either directly or through related entities, CGC is well placed to offer a comprehensive and integrated package of services to investors. The Key Ingredients of a Successful CBIP There is significant risk in any Immigrant Investor Programme. Even in advanced countries, the Investor Immigrant Programmes have encountered fraudulent activities of various types. For instance, in an Investor Alert, the US Securities and Exchange Commission (SEC) and

USCIS stated that they “are aware of investment scams targeting foreign nationals who seek to become lawful US residents through the Immigrant Investor Programme (EB-5)”. These risks, however, can be managed through proper care and attention. Mr. Wendell Lawrence, whom I succeeded as Chief Executive Officer of CGC, has consistently expressed the view that effective regulation and a robust policy framework are perhaps the most critical ingredients of a successful Immigrant Investor Programme. In his view, such regulation and policy framework must, inter alia, provide for meticulous and rigorous due diligence in respect of applicants; systematic collaboration with regional and foreign Governments to address security risks and to prevent regulatory competition among the various jurisdiction; high standards of transparency and accountability in relation to the collection and use of the resources generated by the programme; tight regulatory control over the agents and key actors in the programme especially in relation to the screening of applicants, marketing, and the dissemination of information; continuous environment scanning for threats and escalation in risks and the capacity to act promptly to mitigate such elevated risks; and public acceptance as well as bipartisan support for the programme. Conclusion Immigrant Investor Programmes (including Citizenship by Investment Programmes) have huge economic benefits the countries all over the world – developed and developing. Moreover, while there are significant risks associated with such programmes, such risks could be mitigated through effective regulation and responsive policy frameworks. In the OECS Economic Union, in particular, with so many countries introducing or planning to introduce such programmes, there is considerable scope for greater collaboration and the establishment of a uniform regulatory framework. This would enhance the credibility of the programmes and boost the confidence of the international community in our ability to manage such programmes. ¤ Natalie John is the Chief Executive Officer Caribbean Governance Consultants Inc. Address: P. O. Box 1913, Basseterre, St. Kitts Email: njohn@cgcinconline.com Web: www.cgcinconline.com Skype: natalie.john, Cell: 869 763 2540 OECSBusinessFocus Aug / Oct

OECS NEWS FEATURE

SALT Plage Christophe Harbour

Tourism

The Foundation for Success

he St Kitts Tourism sector is a major pillar in the country’s economic development. A primary goal, based on sound market assessment and an understanding of sustainable development, is to attract affluent and experienced travelers worldwide.

While we continue to enjoy a significant rise in cruise tourism, our long-term approach is to build and support airlift from major gateways and to invest in developing tourism infrastructure targeted towards the luxury market, specifically through our niche markets – golf, dive, yachting and MICE. Several spectacular developments and hotel renovations are underway. One recently completed major development is the new private terminal – the YU Lounge – at the Robert L. Bradshaw International Airport. This ultra-luxury terminal has significantly enhanced the arrival experience for the upscale and the discerning visitor.

Other ongoing high-end developments include: •

Christophe Harbour, the luxury resort project launched in 2012 on 2,500 acres on the southeastern peninsula of the island.

OECSBusinessFocus Aug / Oct

•

The Ocean’s Edge Resort which includes two-bedroom, poolside cottages with private plunge pools. The resort development overlooks a golf course, and features 381 beachfront and hillside properties and 37 detached villas.

•

Kittitian Hill, set on 40 hillside acres on the northern part of St. Kitts, will feature villas, apartments, a cottage hotel, a spa, a golf course and a village center for the arts.

•

Cockleshell Bay, set on 150 acres on the southeast peninsula, will include the Caribbean’s first Park Hyatt hotel, residential townhomes, condominiums and 86 estate villas as well as a marina, a casino and several restaurants.

•

The Silver Reef Resort in the Frigate Bay for which some 60 villas and apartments are planned. 24 of its 36 completed units have already been sold.

Travelers arriving by commercial air enjoy nonstop service from major gateways, including New York, Miami, Atlanta, Charlotte, Toronto and London Gatwick. These are exciting times for St. Kitts, which continues to receive accolades the world over identifying it as a premier tourism destination. In 2014 the island was ranked third (3rd) on the List of the Best Islands in the World and the Best Caribbean Vacations, seventh (7th) on the list of Best Beach Honeymoon www.oecsbusinessfocus.com

OECSBusinessFocus Aug / Oct

OECS NEWS FEATURE

Cockleshell Bay St. Kitts

Destinations in the World, eighth (8th) in the List of Best Caribbean Honeymoons and the Best Affordable Caribbean Destinations by U.S News and World Report, and number eight (8) on the list of the Top ten (10) Best Islands for a Holiday by ‘Places to See In Your Lifetime’. St. Kitts has also ranked number four (4) on the List of Destinations Leading the Caribbean in the Number of Hotel Rooms Under Construction as cited by the latest Caribbean/Mexico Hotel Development Report. The sights and sounds of St. Kitts are nothing short of life changing. However, only the surface of St. Kitts can be experienced through everyday senses. Proud, pure and painstakingly protected, St. Kitts seeps into your soul with every day that passes. In fact, with every encounter with its natural treasures and its gentle people you begin to experience the island on a deeper level. ¤

Oceans edge St. Kitts

For Further information contact: St. Kitts Tourism Authority P.O. Box 132 • Pelican Mall Basseterre, St. Kitts Tel: 869.465.4040 Fax: 869.465.8794 Web: www.stkittstourism.kn

Kittitian Hill St. Kitts

Port Zante St. Kitts OECSBusinessFocus Aug / Oct

www.oecsbusinessfocus.com

St. Kitts Masonry Products

National Caribbean Insurance

OECSBusinessFocus Aug / Oct

Improving the Caribbean Board’s Role in Strategy: Directors Speak Out

W Dr. Chris Bart, FCPA

ith the global crisis in corporate governance still only mildly abated, there have been renewed calls for Boards to become more active participants in their corporations’ affairs and in particular the “direction setting” or “strategy” function. After all, the purpose of governance is to enhance executive decision making and thus improve organizational performance. Since strategy is one of the most important activities that a CEO and his/her executive team can perform, it would seem only fitting that this is an area in which the Board should be quite involved. Accordingly, the notion of a Board’s responsibility for a corporation’s strategy appears to be no longer debatable. At the same time, however, a Board’s involvement in strategy must continue to honor the well-respected tradition that Directors, generally, are not elected to micro-manage the corporation, but rather for oversight, insight and foresight. So what do Directors now think about their expanded “strategic role” and what changes do they think need to be made in order for the Board to fulfill its fiduciary responsibilities with respect to good strategic governance? I recently surveyed and interviewed a large group of serving Directors from a variety of organizations (publicly listed, private, not-for-profit, pension funds governmental agencies etc.) and asked them the following question: What are the major issues facing Boards and Directors today as they attempt to constructively engage with their managements in setting the strategic direction of their organizations? Here are their top five areas of concern. The degree of formal Board input. Having more formal, structured involvement with management in the strategic planning process was the number one issue that Directors identified in terms of improving their engagement with management. This is OECSBusinessFocus Aug / Oct

particularly interesting since Directors have in some jurisdictions been given – through regulation – new powers to be more actively involved in the strategic planning process, including approval of the strategic plan. But while the role of Directors with respect to strategy has changed, how they actually are supposed to engage or participate with management in this area has not been either prescribed or readily apparent. The Directors comments suggested that there were a number of factors affecting the quality with which the Board and management interact when it comes to strategy. For instance, many Directors complained that senior managers (especially the CEO) appeared to resent the new powers of the Board into what was traditionally the latter’s exclusive domain. As a result, CEOs appeared to be trying to keep their Board’s involvement to minimalist levels. Other Directors griped about how senior managers often simply failed to appreciate the role that the Board could play in terms of bringing an unbiased and outside perspective to the organization’s strategy. “They like to say ‘trust me’ a lot or that we ‘don’t understand’ because we don’t fight in the trenches every day like they do” one Director said. And then there were those Directors who suggested that their fellow Board members were either entrenched in past practices or simply unsure of the correct level of involvement. Accordingly, they opted for taking a laissez faire, hands-off or “rubberstamp” approach with the CEO. Most Directors, however, argued strongly for greater inclusion in the planning process. They felt that by making their involvement more formal – say as part of the Board’s “charter” or terms of reference – it might help to reduce the tension, friction or confusion which some CEOs or Directors have regarding the Board’s proper engagement in this vital area. Many also commented on how it would be good to specify the exact nature of engagement in terms of “who does what, specifically” in order to remove some of the fears that CEOs have regarding a Board becoming too involved or micro managing – as well as to remind

“laid-back Directors” about the need for their engagement. Setting standards for Board understanding of strategy. The term “strategy” is an abstract concept with no universal or common definition. As a result, most Directors have different interpretations of the word (and what constitutes a “strategic decision”) based upon either their previous MBA training or corporate strategic planning experiences. This does not make for good communication or facilitate understanding between the Board and management – or even among the Directors themselves. It was probably for these reasons that the Directors I spoke with cited “setting standards for Board education and the understanding of strategy and strategic decisions” as their number 2 issue. “We need to make sure that we are all focusing on the truly strategic stuff” was a comment oft repeated among the Directors I interviewed. Directors expressed unhappiness about how often they felt that they were “getting dragged

Dr. Chris Bart, FCPA is a recognized governance authority, the Founder of The Directors College of Canada and CoFounder of the Caribbean Governance Training Institute, both of which currently offer the Chartered Director Program that leads to the internationally recognized “C. Dir.” designation. For more information, please visit CGTI’s website: http://www. caribbeangovernancetraininginstitute. com/ or phone Lisa at 758 451 2500 www.oecsbusinessfocus.com

into tactical issues” by either management or their fellow Directors. They cited the reason for this as there being no common understanding of what they, as Directors, were supposed to be concentrating upon. Or, as one Director put it: “We need to figure out which issues are strategic decisions and which ones are not.” Many also commented that without some clarification and mutual agreement on this, a lot of Board time was being wasted on matters that properly belonged to management. Every Board therefore needs to agree on and clearly articulate, at least for their particular organization, the “framework” they are using for communicating, describing, understanding and analyzing their firm’s strategy versus the “tactical operational stuff”. The benefits of all Boards doing this are immeasurable. It would facilitate a strategy’s understanding by all members of the Board. It would keep Directors out of the weeds. And it would make clear for Directors serving on multiple Boards the unique way in which each of their organizations was approaching strategy. It would also make a lot easier the comparison of strategies between different organizations by outside analysts. Improvements in Board operation. As the third ranked strategic issue, Directors appeared to emphasize three aspects of Board operations in particular. The first was the number of meetings devoted to discussion of the strategy. These were meetings over and above the one or two sessions (often a special retreat) in which the strategic plan was formally presented, considered and approved. Those commenting on this issue felt that not enough regular Board time was being given to this important Board responsibility and most argued that some discussion of the strategy, including both its progress and obstacles, should form part of the agenda of every Board meeting. A second major consideration regarding the Board’s operations focused on the use of committees. Apparently, a number of Directors were part of Boards in which responsibility for reviewing the strategic plan with management - and recommending its approval to the Board - was being delegated to either an executive or strategic planning committee. The Directors felt that since strategy was such a significant Board responsibility, it should not be delegated to a committee the way other responsibilities are. In contrast to the audit committee, for example, where the authority to review financial statements is typically assigned to those Board members who are financially literate or expert, it was argued that all Directors must be able to make some sort of contribution to the strategy. And as one Director also pointed out: “If the Board is

supposed to help set strategic direction, it’s critical that every Board member participate in its development and understand the implications of the choices being made. The last thing you want to hear some Director say six months after the strategy has been approved is: ‘I never would have done that’!” Accordingly, Boards should see their role in strategy as something which is not delegateable. The third item surrounding Board operations and strategy involved the recruitment and selection of Directors. Quite a few Directors stated that for some of their fellow Board members, they could not understand why the persons were still serving as Directors; that the ones in question appeared to have outlived their usefulness. They claimed that since all Directors are responsible for strategy, the primary consideration in their selection naturally should be each Director’s ability to make a contribution to it in some way. The tool for facilitating this, of course, is a Directors’ skill matrix. The matrix sets out the competencies and experiences which are required in the Board in order to help management deal with the organization’s changing/future strategy. Individual Directors’ abilities are then plotted against the items listed in the matrix. A major benefit from using this approach is that, as the strategy changes, it serves as a useful point of ‘non-humiliating departure’ for those Directors whose skills were once highly valued (for the previous strategy) but no longer of relevance to the future one. Better interaction with senior management. It was fascinating to discover how, for some Directors, the manner and tone with which their Boards interacted with management was a significant concern. This current issue, however, was not about the amount or type of Board involvement with management but instead the method and style that Directors used to actually speak to management. “I hate it when the Board gets into debates with the CEO” one Director exclaimed. “It quickly becomes a win/lose situation and each side feels the need either to defend a stated position or back up a member of the team depending upon which side you are on.” Clearly when this happens, the endgame strategy for both sides is to determine who is right rather that what is right and, most important, to declare a winner. And, of course, a big concern was the sometimes lack of civility with which Directors treated management. In order to deal with these various situations, most Directors claimed that the role of the chair becomes critical. He or she must take precautions to ensure that debates and

rudeness do not occur and that the focus remains on management’s recommendations (and the explanations for making them) rather than know-it-all Board members. Interestingly, good chairs accomplish this by making sure that the principal method with which Directors engage management is through probing and questioning as opposed to pre-emptive declarative statements (the latter of which is often difficult for a forceful Director to retreat from). Use of a facilitator at strategic retreats. Bringing management and the Board together for one or more strategic retreats was seen as an integral part of a good strategic planning process. However, as a number of Directors pointed out, not all retreats go smoothly or exactly as planned. Managers will overwhelm Board members with information and presentations. Egocentric Directors sometimes shanghai the meeting. And the agenda is either not strictly followed or simply not completed. Accordingly, the hiring of a highly skilled and independent strategic facilitator was offered by many Directors as one important way of holding the meeting and its participants accountable for its completion. ********** After the selection of the CEO, the Board’s engagement with management in helping to set the strategic direction of the organization remains its primary and most important function. Indeed, Directors’ responsibility for strategy is even mandated by regulators in some jurisdictions. However, enshrining a Board’s activity in strategic planning is no guarantee that high quality engagement with management will occur. Directors therefore should see the current list of issues as potential areas of risk, be vigilant in identifying them in their own organizations and work diligently to try and deal with them. But here’s the big, uncomfortable question for Caribbean directors: to what extent does your board have the competence it needs to astutely assess and give effective oversight to your organization’s strategy as well as the wherewithal to constructively engage with and advise the CEO if – and how- the strategy needs changing? 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 available in the region – like the exclusive three day “Chartered Director Program” that has been offered by The Caribbean Governance Training Institute since January 2014. After all, it’s not education which is expensive, but rather ignorance. ¤

OECSBusinessFocus Aug / Oct

ECONOMY & TRADE

Caribbean Banks Challenged by Tough Global Regulations

By David Jessop ome eight weeks ago, the London Financial Times carried an interesting commentary on the growing problem that financial institutions in smaller nations such as those in the Caribbean are having in establishing or maintaining a relationship with correspondent banks in North America, Europe or other parts of the developed world. The opinion piece was written jointly by Mark Carney in his capacity as the Chairman of the Financial Stability Board, and by the Managing Director and Chief Financial Officer of the World Bank Group, Bertrand BadrĂŠ. Mr. Carney is also the Governor of the Bank of England, and the Financial Stability Board is an influential international body that monitors and makes recommendations about the global financial system. In outline, what the article said was that correspondent banking â&#x20AC;&#x201C; the arrangement that allows a local bank to have access to the services of a distant financial institution, for example for the transfer of commercial payments, money transfer, or currency exchange â&#x20AC;&#x201C; is in danger of collapse. The issue, which is increasingly being observed by smaller Caribbean banks, is becoming troubling as such arrangements provide an indispensable link for small nations to be able to use the international banking system in order to facilitate the needs of their customers. OECSBusinessFocus Aug / Oct

In the past, as the article pointed out, the system has relied on both the local bank and the overseas bank being able to devise systems that would prevent either bank from doing business with criminals or from transferring illicit funds. Unfortunately, these systems sometimes fail and as is now well known, some international banks, deliberately and through internal failures, have provided accounts and services to money launderers who were facilitating the activities of drug gangs or terrorists. Recently under pressure from central regulatory authorities the correspondent banks, often large global institutions, have been faced with huge fines and a choice between continuing to provide correspondent business and finding ways to mitigate the risk of further infractions, or as has been the case in the Caribbean, they withdraw, and cease to provide services altogether. Speak to bankers and financial institutions in the Caribbean and it is clear that more and more are finding that their correspondent banks are choosing to do the latter, with for example many embassies around the world also finding that the bank in the nation where they are located has unilaterally withdrawn their banking facility. At its worst has been the situation relating to Cuba whereby in parts of Europe all major banks have refused to transact any business related to the island. Although

they will not necessarily say why this is, the reality is that the banks, fearing huge fines or actions against them or their US operations, have chosen to reject all correspondent banking or even provide domestic services to longstanding clients if they are in some way related to Cuba. Moreover, the same banks seemingly remain reluctant to return to providing banking services even after the US has formally lifted its designation of Cuba as a state sponsor of terrorism. The problem is, as the article pointed out, communities and businesses in the affected economy then find themselves unable to send or receive money from abroad.

David Jessop is the Director of the Caribbean Council and can be contacted at david.jessop@caribbean-council.org. Previous columns can be found at www.caribbean-council.org. www.oecsbusinessfocus.com

In their article, the authors make clear that not only might this response eventually contribute to illegal activity, defeating the narrow purpose of making the financial system more secure, but whole countries could be abandoned by the big banks.

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Their solution is to propose that the World Bank Group and others obtain evidence on the extent and consequences of the retreat of correspondent banks and to recommend, ‘clear and consistent interpretation and enforcement of international standards’ and technical measures, such as the standardization of customer identifier systems. ‘The financial abandonment of whole groups of customers – or even countries – is not something that can be ignored by the members of the G20,’ Mr. Carney and Mr. Badré noted. Coincidentally, the article appeared just days after the US had named six Caribbean banks as having completed wire transfers of large sums of money for many senior FIFA soccer officials and others accused by the US authorities for alleged racketeering, money laundering and wire fraud. The regional banks listed in the indictment were First Caribbean International Bank (Bahamas); Barclays Bank (Cayman Islands); Fidelity Bank (Cayman Islands); First Citizens Bank (Trinidad and Tobago); Intercommercial Bank (Trinidad and Tobago); and Republic Bank (Trinidad and Tobago). None has been charged with any crime, or regulatory violation, but in a statement reflecting the apparent concern as to what this might mean for already tough international requirements on banking compliance and the possible problems that may arise for correspondent banking arrangements, the Bankers’ Association of Trinidad and Tobago said that it remained committed to working with local and foreign regulators and law enforcement agencies as the investigation progresses.

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At the same time three British banks have launched internal reviews of transactions linked to allegedly corrupt payments by FIFA officials outlined in the US indictment. The banks – Standard Chartered, Barclays and HSBC – are understood to be looking into the details of payments. Again the three are not accused of any wrongdoing but are said, in part, to be concerned to ensure that they have complied with anti-money laundering rules. The news of course followed the unsealing of an indictment in New York on May 27 naming Jack Warner, a former FIFA VicePresident and Trinidadian politician, and Jeffrey Webb, the former President of CONCACAF, the Central American, Caribbean and North American football confederation headquartered in the United States. Both deny any wrongdoing. C

While the growing tsunami of allegations resulting from the still emerging FIFA corruption scandal seems likely to continue to sweep across the Caribbean in the coming weeks, the impact on the region’s banking system could be slower and more devastating.

CMY

It is also not impossible that the decision by the US authorities to act in such a public way was beyond the immediate accusations, intended to make clear that a line has been reached as far as the US is concerned about corruption in the Americas. Although the focus is presently on Mr. Warner and Mr. Webb, the bigger danger is that in days to come, compliance officers and the boards of major US and European banks may begin to look more closely at their correspondent relationship with Caribbean banks. ¤

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OECSBusinessFocus Aug / Oct

ECONOMY & TRADE

Projects Slight Economic Growth for Caribbean Countries in 2015

T partners.

Dr Warren Smith CDB President

he Caribbean Development Bank (CDB) says preliminary forecasts indicate that the economies of regional countries will expand by nearly two per cent in 2014, mirroring an anticipated moderate acceleration in the economies of its major trading

The CBD in its annual review of the region’s economic fortunes, noted that further improvement is “currently being projected for all 19 borrowing member countries (BMCs) with most set, once again, to grow by between one and three per cent”. The CDB said that Trinidad and Tobago is expected to be in that range, “albeit at the lower end, as unscheduled maintenance activities that have been disrupting petroleum production over the past few years are expected to come to an end”. The region’s premier financial institution said notwithstanding current projections of continued decline in key commodity prices, “growth in export commodities should be supported by large-scale investments in gold in Guyana and Suriname that should come on stream during the year. “Marketing arrangements already established by regional producers of bauxite, alumina and key agricultural products are also expected to positively impact the economies of those countries. However, a more rapid hike in rates of between 3.5 per cent and 4.5 per cent is being projected for Guyana, Haiti and Suriname.” The CDB said that similarly high rates of growth are also expected in Antigua and Barbuda and St Kitts and Nevis “as the recovery in regional tourism is expected to strengthen”. “By the same token, there are positive projections for Barbados, the British Virgin Islands, St Lucia and St Vincent and the Grenadines”. The CDB said that the Caribbean Tourism Organization’s (CTO) expectations of continued recovery are mainly being influenced by forecasts for rising source market incomes and lower fuel costs. It said stay-over arrivals should also be supported by negotiated airlift increases to several regional destinations, along with OECSBusinessFocus Aug / Oct

additional room stock and enhanced marketing associated with current investments by major hotel brands. “Given the higher value-added of the stay-over segment of the industry, this would more than compensate for the impact of the planned return of cruise ships to Mediterranean destinations in 2015. Additional, recovery in tourism should have further spinoff benefits for construction and other real sector activity,” the CDB said. But the bank warned of “key downside” risks to the region’s prospects, even as it noted that there are some opportunities as well. It said in tourism, destinations that are highly dependent on the United Kingdom market may see some fallout from expected fiscal tightening and that a similar risk exists in relation to the possibility of further Euro area weakening. The CDB notes that European visitors account for approximately 14 per cent of stay-over visitors. For regional commodity exports, the CDB is forecasting that a major concern is still the prospects of a further decline in prices “beyond the level anticipated by the market, as this would curtail mining and quarrying output, as in 2014. “At the same time, further reductions in oil prices could threaten the sustainability of the PetroCaribe arrangement, under which many BMCs finance petroleum imports on extremely concessional terms. This represents a tail-end risk to fiscal and debt stability,” the CDB added. It said that in addition, growth and fiscal perspectives, the regional outlook is subject to the perennial risk of natural disasters and other weather-related challenges which, over the years, have randomly and devastatingly reversed the economic fortunes of the BMCs. But the bank said, conversely, some of these risks also hold potential opportunities, noting for example, a reduction in commodity prices would contribute to lower fuel and energy costs, further tamping down inflationary pressures. “It would also allow regional governments to reduce expenditure on fuel subsidies, where applicable,” the CDB said. ¤ www.oecsbusinessfocus.com

World Bank Report Proposes New Directions to Boost Trade in the Region

Jorge Familiar World Bank Vice President for Latin America and the Caribbean

new World Bank report released in June at the Third Regional Caribbean Growth Forum, suggests that the rapidly changing environment for Caribbean exports presents both new opportunities and challenges for economies highly dependent on external markets. Despite high openness to trade of Caribbean economies, the Caribbean share in global trade fell from three percent in the 1970s to nearly a quarter percent in 2012. The report, “Trade matters: New opportunities for the Caribbean,” highlights that trade plays an important role in job creation – with exporting firms accounting for 34 percent of formal employment and being the largest employer for the poorest. However, exporting also makes employment more vulnerable to external shocks. “Entrepreneurs are already seeing improvements in the business climate. Continued efforts to improve trade facilitation and step up investments in research and innovation, as well as quality education, will help improve skills and generate well-paid jobs in the Caribbean,” said Jorge Familiar, World Bank Vice President for Latin America and the Caribbean. The report also highlights that the region’s trade performance is limited by lack of diversity and limited innovation. The number of patent applications in the Caribbean has been lower than in other region of the world. Looking at emerging trade opportunities, the report shows that the CARICOM agreements have driven a rapid increase in intra-regional trade and that a common market would lead to a substantial rise in exports in the region. Meanwhile, with the exception of the Bahamas, St. Kitts and Nevis, Saint Lucia, Belize and Haiti, exports from Caribbean countries to growing emerging markets remain small.

The report suggests three main opportunities to boost trade and generate a positive cycle of shared prosperity in the region: 1. Deepening trade integration with North America would boost trade and accelerate growth in the region. The gains for the Caribbean of entry to the North American Free Trade Agreement (NAFTA) would be six times the size of the gains for implementing a Caribbean common market. The negotiations toward a Canada-CARICOM free trade agreement launched in 2007 should also be pursued. 2. Improving trade facilitation environment through modernized custom systems and better connectivity would have a major impact on trade. Efforts across the region to modernize customs administrations and border management should be accelerated. With the expansion of the Panama Canal and the expected increase in transshipment, recent initiatives to modernize ports infrastructures and regulation are being carried out in Jamaica, the Dominican Republic, Bahamas and Haiti. 3. Improving the business environment and investment climate would be essential to enhance productivity and competitiveness. While Caribbean economies recently adopted a record number of reforms improving local business regulatory climate, exporting firms remain affected by the limited access to electricity, telecommunication and transport services, and the need for policies to further promote technology capability and innovation. More efforts are needed to improve skills and access to infrastructure and finance. The report concludes that there is considerable potential for boosting trade and accelerating growth in the region. Some of the proposed policy recommendations are being further discussed in view of identifying new strategies and tools to stimulate competitiveness, productivity and entrepreneurship. ¤ OECSBusinessFocus Aug / Oct

Regulatory Challenges in the Region

Kem Warner Managing Director KAW Management Services Ltd

here are many in the region who believe that the aim of the United States, its allies and other associated organizations is to cripple our offshore markets and to a larger extent our economies using various forces and scare tactics to curtail our independence. The US and its allies, on the other hand, believe that the Caribbean is a major hub for drug and human trafficking and smuggling and known for encouraging other predicate offences such as tax evasion and corruption, to name a few. Post September 11th, 2001, Money Laundering and Terrorism have taken a twist in the way financial institutions and nondesignated businesses and professions are regulated and supervised. This not only has an impact on business operations but also the way in which consumers conduct their businesses. One cannot dispute that Money Laundering and Terrorism can have various significant economic and social consequences if not curtailed. Over the past decade, we have seen how international laws especially from the US challenge the sovereignty of Caribbean states. We have been pretty much forced to comply with recommendations from international organizations, along with, the signing of many bilateral agreements. It is a notable fact that we tend to be passive when it comes to implementation. With all fairness though, in some instances it is not the lack of trying, but the absence of available resources especially with the recent economic downturn in some countries. The issue of understanding regulation verses supervision is also a major concern in the region. We tend to put regulations in place only when it is required especially when faced with sanctions or placed on “Name and Shame Lists” for many OECSBusinessFocus Aug / Oct

reasons such as failure to supervise the financial systems, failure to pass or amend new laws and regulations, failure to comply with international recommendations, to name a few. Other factors such as harboring alleged criminals, corruption to include bribery, pyramid and ponzi schemes, all contributed to us being in the spotlight. In 2012, FAFT’s amended Recommendations called for significant changes with emphasis on Risk Assessment, not only for regulated entities but also at the national level. These recommendations have resulted in an almost total overhaul in the way regulated institutions assess customers/clients based on factors such as products and services, nationality, risk, jurisdiction and occupation, to name a few. Pressures have been placed on Governments to amend the laws and strengthen the regulatory and supervisory bodies. The Caribbean through initiatives such as CARICOM should take a macro initiative as opposed to individual Caribbean states tackling this uphill battle on their own due to the limitations in human and financial resources. The following are some recommendations which would assist in making this achievable: 1)

The Need for Consolidated Supervision

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Supervisors and Regulators of the financial system within the respective regional jurisdictions ought to be engaged in consolidated supervision.

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Jurisdictions should ensure all entities within a financial group are subjected to some form of oversight given the potential for regulatory and supervisory arbitrage.

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The Need for MOUs and Information Sharing Agreements

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Every effort should be placed on understanding the risk inherent in cross border operations and the need to foster information sharing throughout the region.

The Need for Stress Testing

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As regulated institutions undertake more risks in their quest for profits, it is critically important for there to be ongoing stress testing to determine whether the underlying framework can support robust growth.

Macro Prudential Indicators Needed

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Supervisors and Regulators within the region can no longer isolate themselves but must rather have a holistic view on the sector they supervise and regulate.

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They must also be engaged in broad financial sector surveillance given the various inter-linkages between various financial sectors. They should also become conversant with the various qualitative and quantitative techniques if they are to be effective in their jobs.

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Reforming the Supervisory Framework

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There ought to be an ongoing thrust within the region for institutions to be regulated and supervised from a risk based perspective.

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Institutions should not be regulated using a prescriptive approach but rather a risk based one. Such an approach must be driven directly by the nuances within the respective jurisdictions.

The key to effective regulation and supervision is by collaborating as partners and enlisting the support of all stakeholders. In doing so regulated entities will be able to comply with regulatory obligations effectively and lessen the risk of potential reputational risk to stakeholders. Tardiness on the part of law makers and their reactive approach only when there is economic shock or sanctions should be a thing of the past. We must remain vigilant as the goal posts constantly shift on us but must not be “Willfully Blind” that we are also quite vulnerable to simple economic shocks. The interconnection and dependence on global financial systems is something we should always be cognizant of. As a result, there ought to be a stronger culture of compliance collectively within the region in an effort to protect our reputation and economies. ¤ Kem Warner, CAMS, CAMS-Audit, CFE, FICB Kem Warner is the Owner and Managing Director of KAW Management Services Ltd. in Antigua and KAW Management Services (Caribbean) Ltd. in St. Kitts and Nevis. Both companies specialize in Anti Money Laundering, Anti- Fraud, Risk Management, Compliance Services, Operations Management Consultancy and Training. He can be reached at kaw@kawmanagement.com.

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ECONOMY & TRADE

L-R: Nigel Holness, Managing Director, Jamaica; Rik Parkhill, Chief Executive Officer; Irene Markus, Managing Director, Wholesale Banking; Berisford Grey, Executive Director, Corporate Investment Banking

CIBC FirstCaribbean CEO Points to PPP as Catalyst for Economic Recovery in the Region

nfrastructure development and renewal in the Caribbean will be a catalyst for economic recovery and sustainable growth in the region Rik Parkhill, CEO, CIBC FirstCaribbean International Bank has said. In this regard, he said, tourism and energy are “ripe for unlocking and provide ready opportunities for some of those partnerships to take place”. Speaking at the Bank’s 3rd annual Infrastructure Conference, at the Hyatt Ziva Resort in Montego Bay, Jamaica, Mr. Parkhill said that “the tourism infrastructure in many territories – such as hotel plants, airports and cruise terminals – are in desperate need of renewal or rebuilding.” He said, too, that deteriorated road networks need to be repaired or replaced. Noting that the governments of many regional countries with their relatively fragile economies and stretched budgets cannot undertake major capital works projects alone, Mr. Parkhill emphasized the value of Public Private Partnerships. He said that the governments of the region “have seen the value of and are more and more placing greater emphasis on PPPs to finance national infrastructure development.” Mr. Parkhill said that “in the 16 tourism-dependent economies in the Caribbean, stay over arrivals increased 7 percent, ranging from a small 1 percent decline in St. Vincent and the Grenadines to a whopping 50 percent surge in the Turks and Caicos Islands.” He also said that “the economic potential of renewable energy – solar, wind, hydro and geothermal sources – remains largely untapped.” Of the 17 markets in which CIBC FirstCaribbean operates, the economies of only two – St. Lucia and St. Vincent and the Grenadines – contracted during 2014 and Mr. Parkhill said that

OECSBusinessFocus Aug / Oct

the Bank will continue to take the lead through events like the conference “to play an active role in bringing all the stakeholders together to promote PPP arrangements that will spur economic growth in the region”. He said that “with most of the economies of this region heading out of recession and showing signs of growth, this is an opportune time for PPPs to take deeper root in the financial landscape of the region”. Nigel Holness, Managing Director of CIBC FirstCaribbean International Bank, Jamaica, said that the Bank has “seen where cooperation between the public sector and the private sector and the financial services community has been integral to charting a course towards economic recovery across the region”. The Bank, he added, is taking a lead role in bringing the parties together. CIBC FirstCaribbean International Bank, he said, “with a regional footprint in 17 Caribbean countries, has a pivotal role to play in the efforts at shoring up our island economies.” He said that the conference presentations and panel discussions were “carefully crafted to offer clarity on how and where to commit capital, explore the intersection of the many business drivers and how they are shaping the future of infrastructure delivery and investment returns.” “Together with you, we will seek to address the concerns and find solutions to ensure the continued development of the Caribbean infrastructure and by extension regional economies”, Mr. Holness told conference attendees. ¤ www.oecsbusinessfocus.com

ECLAC Forum Tackles Caribbean Development Financing per capita to statesâ&#x20AC;&#x2122; ability to mobilise finances, debt ratios, vulnerability to shocks and social challenges in determining eligibility for concessional funding. Prado, in closing the session, pointed to ongoing initiatives by ECLAC in the sub region, including pursuit of advocacy for a broader set of criteria to take account of the vulnerability of SIDS; design of a strategy to pursue debt reduction and improve fiscal management in Caribbean states; and expansion of its capacity development efforts towards enhancing resilience building and risk reduction among member states to improve the response to losses from external events and advocate for more secure access to international finance to address this challenge.

Deputy Executive Secretary (ECLAC), Antonio Prado

he Deputy Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC), Antonio Prado, moderated a panel discussion at the Forum on the Future of the Caribbean, where he outlined important areas of focus for countries of the region, like the need to address debt relief in a sustainable manner and the possibility of mobilizing resources through diaspora bond issues and increased remittances.

The Forum, under the heading Disruptive Thinking. Bold Action. Practical Outcomes, provided the opportunity for regional and international leaders to tackle challenges to Caribbean development, and identify strategies for securing a sustainable future. It was co-hosted by The University of the West Indies (UWI), St Augustine, and the Ministry of Foreign Affairs in collaboration with United Nations system, regional intergovernmental partners, and the Commonwealth Secretariat. Â¤

The session on Advocating Innovative Financing Solutions, which examined opportunities for domestic and international development financing for Caribbean Small Island Developing States (SIDS), was considered especially timely given the upcoming United Nations Conference on Financing for Development being held in Addis Ababa in July. The panel included Gail Hurley, Policy Specialist on Development Finance at the United Nations Development Programme (UNDP) in New York, Jwala Rambarran, Governor of the Central Bank and two discussants, Ransford Smith, former Deputy Secretary General of the Commonwealth Secretariat and career diplomat in the foreign service of Jamaica, and Professor Compton Bourne, former President of the Caribbean Development Bank. Hurley highlighted the biggest challenge for the region as being financing development. Rambarran underscored the opportunity presented by increased remittance flows to the region, noting that they had become a very important source of external financing. He estimated that remittances now represent about 6 per cent of gross domestic product (GDP) for the region and as much as 21 per cent of GDP in Haiti. The session addressed the dilemma of the Caribbeanâ&#x20AC;&#x2122;s middle income status and its impact on access to concessional financing. The panellists reiterated the need to look beyond income OECSBusinessFocus Aug / Oct

ECONOMY & TRADE

Youth Unemployment and Selling Citizenship

By Sir Ron Sanders

By: Sir Ronald Sanders

he economies of Caribbean Community (CARICOM) countries are not doing well. Belize, Guyana and Suriname are the only three economies showing appreciable growth. The major effect of little or no growth has been increasing unemployment and underemployment of young people who constitute three of every five persons across the region. The problem of youth unemployment and underemployment was emphasised at a Commonwealth Caribbean Ministerial Youth Conference in Antigua from 28 to 30 April. Without the prospect of jobs, young people are becoming increasingly dissatisfied and disenchanted. Their discontent manifests itself, in some instances, in gangs, crime and violence. In other cases, where young people have graduated from higher education and cannot find jobs, they have either migrated depriving their countries of qualified persons, or they accept any job they can get, but brood over their circumstances. In any event, the situation of youth unemployment and underemployment is a boiling cauldron in the Caribbean. The solution to the problem rests in the creation of jobs that are sustainable. Such job creation requires investment and particularly foreign investment â&#x20AC;&#x201C; new businesses have to be formed and economies have to be diversified from traditional areas of production that have OECSBusinessFocus Aug / Oct

depended on preferential markets and subsidies. The region could be a much more attractive area for investment in goods and services if it were a truly single market with a customs union. Foreign investors would be more greatly attracted to a larger regional market than to the individual small markets of most CARICOM countries. It would be one effective way of creating a larger economic space for the employment of young people. The pace of perfecting a single market and a customs union has been painfully slow, dragged out since it was first proposed in 1989. In the elapsed time, a generation was born and grew-up. For the most part, that generation constitutes the largest number of the unemployed and underemployed in CARICOM countries. In the meantime, governments have been inventive about ways in which investment could be attracted to national economies, but, by and large, the environment for doing business in the region is uncompetitive. Jamaica is the only country in recent years that is recognised in the international community as striving to streamline and improve its procedures. Bureaucratic red tape, customs bottlenecks, lengthy processes for issuing permits and high costs for transportation and communication all contribute to a disabling environment. Smaller countries without the natural resources of Belize, Guyana, Jamaica, Suriname and Trinidad and Tobago have

had to become even more creative in their efforts to earn revenues and investment. One such scheme is the Citizenship by Investment Programme (CIP) that was started by St Kitts-Nevis. It is a scheme that Dominica and also introduced some years ago and is now operational by Antigua and Barbuda as well. In these three countries, governments would admit that the CIP is not a mechanism of choice. But their policy options are limited. Preferential markets in Europe for bananas and sugar have disappeared despite promises by the European Union and misplaced faith in

Sir Ronald Sanders is Antigua and Barbudaâ&#x20AC;&#x2122;s High Commissioner to London and a Senior Fellow at the Institute of Commonwealth Studies, London University. www.oecsbusinessfocus.com

the Economic Partnership Agreement. Tourism has been badly affected by the effects of the global financial crisis. Additionally, the governments of developed countries, whose imposed rules erode the financial services sector of these small states, make the least contribution to their economic improvement. Antigua and Barbuda and St Kitts-Nevis have turned to selling citizenship because it is one of the few assets they have left from which they can earn significant incomes. Unfortunately, instead of being sympathetic to these small states and providing guidance to allow their CIPs to flourish with legitimacy, governments of developed countries have taken a hard line against them. In the case of Antigua and Barbuda, it took that government’s initiative for certain foreign governments to engage in the country’s CIP process. Unfortunately, Antigua and Barbuda’s sensible approach appears not to have happened in St KittsNevis, according to Prime Minister Timothy Harris who won the government at general elections in February. Even as the region’s Youth Ministers were meeting in Antigua, focused on issues including unemployment, Prime Minister Harris told the people of his country at a 2-hour media conference that damage had been done to the reputation of its CIP “due to its less than appropriate management by the former administration”. He was, nonetheless, determined to continue with it as an essential tool for foreign investment. He revealed that his government would implement 20 recommendations from the US firm IPSA International to bolster aspects of its security. He laid great emphasis on it as a spur for investment and employment. The same firm has also conducted a review of the newer Antigua and Barbuda CIP which required minor fine tuning but no major overhaul. The Antigua and Barbuda government is also implementing the recommendations of the IPSA, including investing in modern computerisation techniques that would enhance the management of the programme and the high level of investigation required for its integrity. The point of all this is to create incomes for small countries that require investment to develop their physical infrastructure, improve the knowledge base and managerial know-how of their people, and create new industries that would allow them to provide jobs for their people and participate competitively in the international community. Both the present governments of Antigua and Barbuda and St Kitts-Nevis have committed themselves fully to ensuring that the interests of countries such as Britain, Canada and the United States are not compromised by the CIPs. Given such a commitment, the urgent need to address youth unemployment, and as long term partners with many links to these three more powerful countries, Caribbean small states deserve co-operation. ¤ Responses and previous commentaries: www.sirronaldsanders.com

Caribbean Urban Forum Assesses Regional Urban Development

Senator Hon. Stanley Felix

fforts to advance land and urban management in the Caribbean region is underway, as the Caribbean Urban Forum (CUF) seeks to address specific policy issues with the Caribbean urban sector.

At the fifth CUF held recently, Saint Lucia’s Minister for Physical Development, Housing and Urban Renewal, Senator Hon. Stanley Felix said urban development must be examined within the context of the island system. “This examination must take into consideration factors such as our resource based population growth and distribution, social needs, housing status and employment demands,” he said. “Our urban centers must be responsive to the demands of the population as well as the desires of visitors and commercial opportunities. The success of our urban centers will therefore be measured by the number of persons who voluntarily choose the city as the best option to live work play and visit. This then brings us to the much focused area of land use planning.” Permanent Secretary in the Ministry of Physical Development, Joanna Raynold-Arthurton highlighted the benefits of CUF5 to the Saint Lucian public. “As the Ministry of Physical Development embarks on the launch of major initiatives such as the National Sight and Services Program, the revision of the 2007 National Land Policy, the development of the National Land Use Plan and the revision of the Draft Building Code, this forum creates an opportunity for professional development for Saint Lucian planning professionals and students that will enhance their capacity to make more meaningful contributions. The forum will also set the stage for increased awareness and education of the public on the importance of land management and other land use planning issues.” The theme for the CUF5 is “Island System Planning.” The theme takes into account the unique pattern of urbanization in the Caribbean, and the tailored solutions that are needed to address them. ¤ OECSBusinessFocus Aug / Oct

ECONOMY & TRADE

international markets to secure longer term financing for the final stage of reorganisation of its capital structure. TCL Group also announced the appointment of Jose Lius Seijo as its new CEO. He was previously Cemex’s Regional Head of Strategic and Financial Planning for Spain and the Mediterranean. He was educated at the University of Bath in the United Kingdom, with a background in Mechanical Engineering and Finance.

Group Restructures, Settles Debt

Cemex is the largest Shareholder of TCL group with 39.5 per cent holdings, through subsidiary Sierra Trading, a near doubling of its stake since March of this year. The TCL Group is the largest manufacturer and supplier of Cement in the Caribbean with factories in Trinidad, Barbados and Jamaica and a network of Distributors across the island chain. ¤

India and the Caribbean Get Closer The Indian Delegation to the CARICOM Meeting

From left, TCL Chairman Wilfred Espinet, Director Nigel Edwards and CEO Jose Luis Seijo Photo: Shirley Bahadur

rinidad Cement Ltd (TCL) has used a US$245 million loan to turn around its fortunes, including paying off its debt, Chairman Wilfred Espinet announced recently.

“We got funds from two banks, Credit Suisse and Citibank. The future, in terms of financing is in place, and now we are confident that going forward we will be able to get the longer term financing,” he said at a media briefing in Trinidad. Espinet said restructuring of the cement company is almost completed. “We have sorted out the employees, the shareholders have put their money into this and the debt has been restructured in a way that we are only now able to extend the terms of debt by putting in longer term debt,” he explained, adding that this has transformed TCL’s position in the market. “All this is intended to do two things - make it a stronger company which will give it the ability to fight off competition and to spend money in its capital expenditure to create the efficiency level it needs to be cost effective in the market,” he said. “We are constantly reminded that we cannot live in yesterday’s position and we have to be constantly moving forward to create better efficiency. We have good reason to be optimistic because all that we have set out to do has been achieved in a record space of time and exactly how we had hoped it would have worked out.” A release from TCL stated: “The company at a February meeting with shareholders to update them on some of its restructuring plans had advised that the board agreed to restructuring terms with lenders, which had two preconditions which were the removal of the 20 per cent restriction on the shareholding and the injection of new equity of at least US $50 million.” The company said over the coming weeks along with Credit Suisse and Citibank, TCL would be approaching the local and OECSBusinessFocus Aug / Oct

ARICOM and India held their first-ever joint commission recently in Guyana at the CARICOM Headquarters. The landmark meeting was led by Vice Minister and Special Secretary of the Ministry of External Affairs of India R. Swaminathan and CARICOM Secretary General Ambassador Irwin LaRocque. The CARICOM SG said India was an “important partner” to the region, with embassies and high commissions already set up in four CARICOM states: Guyana, Jamaica, Suriname and Trinidad and Tobago, along with an accredited CARICOM Ambassador. India has “Well-established its presence in the region,” LaRocque said. The joint commission is the latest between CARICOM and a large global partner, including recent commissions with the US, Chile, Turkey and China, among others. India and CARICOM first established their joint commission in 2003, although it took 12 years for the first official meeting. ¤ www.oecsbusinessfocus.com

OECSBusinessFocus Aug / Oct

MONEY MATTERS

EU High Representative Federica Mogherini & Caricom Secretary General Irwin LaRocque Sign Agreement.

EU Announces EURO 346M New Funding for the Caribbean

eads of State and Governments of the Caribbean Forum (CARIFORUM) along with the President of the European Council and the High Representative of the Union for Foreign and Security Policy have agreed to a Euro $346M development programme for the Caribbean and Latin America. The announcement follows a Summit in the margins of the Second European Union-CELAC Summit held in Brussels on June 11, where an opportunity was provided to welcome and exchange views on the implementation of the Joint CaribbeanEuropean Union Partnership Strategy, adopted in November 2012, which offers a facilitating framework for the further strengthening of the bi-regional partnership. According to a press statement from the local EU Office, the Leaders reaffirmed their unwavering commitment to the principles of the United Nations Charter, respect for and compliance with human rights obligations; democracy and rule of law, at the national, international level; good governance; inclusive social, environmental and economic development; and sustainable growth. They committed themselves to include these and other relevant issues in the upcoming reviews of the Partnership Strategy, OECSBusinessFocus Aug / Oct

including at the next Political Dialogue which should take place as soon as possible during the current year. “The European Union and CARIFORUM signed an important regional cooperation programme of EURO 346 Million, a significant contribution to Caribbean development efforts, focusing on regional integration, climate change, sustainable energy and environment, and crime and security, and including allocations to the Caribbean Investment Facility, aimed at stimulating further investment in the region, and multi-country initiatives,” the release stated. It was noted that the overall amount of Euro 1 Billion allocated to the region for the 2014-2020 period illustrates the continued high level of EU commitment to the region. The European Union and CARIFORUM also discussed challenges and opportunities for further integration and more inclusive development in the region; reconstruction and development in Haiti; the fight against poverty; environment protection, disaster risk reduction and the fight against climate change, including the enhanced use of clean energies; improving governance in both regions; crime and security; and cooperation in bi-regional and multilateral fora and on global issues. ¤ www.oecsbusinessfocus.com

US$120m World Bank Help for Struggling Caribbean Countries

By Curtis Rampersad

he World Bank Group launched a multi-million-dollar lending programme to generate sustainable growth in struggling Caribbean nations. The Washington-based World Bank Group’s board of executive directors endorsed the new Regional Partnership Strategy (RPS) for the Organisation of Eastern Caribbean States (OECS) for the period 2015-2019 and focused on creating the conditions for sustainable and inclusive growth in Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines. The announcement was made at a press conference to start the second day of the third regional Caribbean Growth Forum hosted by the World Bank at the Sandals Resort in Saint Lucia. The new strategy proposes a lending programme of about US$120 million for the period and, in addition, includes an allocation of about US$92 million for Dominica, Grenada, St Lucia and St Vincent and the Grenadines from the International Development Association (IDA). The IDA is the arm of the World Bank Group that provides interest-free credits and grants to the world’s poorest countries as well as many small island developing states. Over the last decade, the small Eastern Caribbean states have been trapped in a spiral of low growth, high debt and limited fiscal space. In the aftermath of the global financial crisis, unemployment has risen in most OECS countries, with youth unemployment becoming a source of particular concern, ranging from 34 per cent in St Lucia to 42 per cent in Grenada, the World Bank said in a statement issued at the press conference. “This World Bank Group Regional Partnership Strategy, in its effort to promote growth, quite rightly focuses on regional integration and on the importance of coordination within the region and with the international financial institutions,” said Dwight Venner, Governor of the Eastern Caribbean Central Bank (ECCB). Three new regional operations are proposed under the strategy, focusing on competitiveness, renewable energy, and human development. “A number of countries have already embarked on strategies that foster investment in competitive niche sectors to unleash innovation and creativity, including tourism, agribusiness, health services and creative industries,” said Sophie Sirtaine, World Bank country director for the Caribbean. “Continued reforms to restore fiscal sustainability and boost private sector growth are needed. This strategy aims to tackle these challenges head on, with flexibility to respond to external shocks and build social and climate resilience of these small economies.” ¤

50 Million Fund for Caribbean Business

he private sector in the Eastern Caribbean is in line for a $50 million boost as Scotiabank recently announced the launch of its Economic Growth Fund. The special loan facility is specifically for small and medium sized businesses which will be able to benefit from specially discounted financing, waived fees and lower equity requirements. The fund will be available for the next six months to businesses in the OECS Countries of Anguilla, Antigua and Barbuda, Dominica, Grenada, St. Kitts and Nevis, St. Lucia and St. Vincent and the Grenadines. “We all have a role to play in getting our economies moving again,” declared David Noel, Managing Director of Scotiabank Caribbean East. He noted that Scotiabank is the only private sector institution in the Eastern Caribbean to offer such a program. The loan fund will finance companies that are seeking to expand, purchase new equipment or modernize their technology and tools for the purposes of heightening operational efficiencies and competitiveness. Scotiabank Country Manager for Anguilla, Pamela HerbertDaniel said the Bank saw a need to put an intensive effort into supporting businesses that can boost the country’s economic output, bring in foreign exchange and create jobs. “Scotiabank has been in Anguilla for over 25 years so we’re not just a financial institution but a partner and a part of the community. Restoring and stimulating economic growth benefits the whole society and this fund is aimed at helping that to happen.” She emphasized that the fund would be heavily focused on efforts that could boost productivity or improve the efficiency and competitive edge of local businesses. “So for instance if a company is looking to install energy efficient solutions or purchase a piece of equipment that will expand the range of what they can do, those are the kinds of projects that we will be very interested in supporting through the Fund,” explained Herbert-Daniel. Companies in manufacturing, distribution, professional services, transportation, export and green energy sectors are eligible for funding. Noel noted: “Economic diversification is important for the long-term success of our countries and we feel that these sectors need a greater level of assistance, particularly since they are often capital-intensive. With this loan fund, we’re aiming to help build a strong business sector that can bring more jobs and more foreign exchange into the economy.” Herbert-Daniel said the fund showed Scotiabank’s commitment to the economy and their belief in the ability of local businesses to capitalise on the opportunity given. “We know that Anguilla’s businesses can rebuild the economy, once given the support they need to develop and improve their companies. With the Economic Growth Fund, Scotiabank is offering that support and we look forward to seeing them seize this opportunity.” ¤ OECSBusinessFocus Aug / Oct

MONEY MATTERS

ECCU Approves New Measures to Tighten Banking Sector in OECS

Dr Ralph Gonsalves

he Monetary Council of the Eastern Caribbean Currency Union (ECCU) has sought to assure depositors that it has adopted several measures aimed at strengthening the banking system in the sub region. Prime Minister Ralph Gonsalves, who is also the chair of the Council said the strategy “will result in a stronger banking sector, which along with other financial institutions, plays an essential role in facilitating economic growth and development in our region.”

loans) is declining. Last year, despite the fact that the banks had excess liquidity, credit declined by 4.5%. Declining credit to the private sector makes economic recovery slower. This situation has to change.”

“The Monetary Council is resolved to do whatever it takes to improve the economic fortunes of our Currency Union and has agreed to take deliberate and concrete steps to stimulate economic activity and strengthen our banks to help secure a better and brighter future for all our citizens and residents,” Gonsalves said as he praised several regional and international governments and financial organizations for their “significant technical and financial resources required to implement these decision successfully”.

“High non-performing loans make our banks less willing to lend and weaken our economies. This situation must change. In the face of declining profitability or losses, banks have sought to lower operating expenses. This cost reduction effort has led to the closure of several branches in the ECCU and beyond.”

Gonsalves told the populations across the OECS that the Monetary Council at its last meeting has adopted “several vital decisions” that “touch upon our lives and living, our socioeconomic well-being”. He said since it was created in 1983, the ECCU has had to deal with changes in the global environment and as time changes “all of us must be ready to adapt.” “Thirty-two years later, since the founding of the Central Bank, our region is slowly recovering from the effects of the Great Recession, that period from 2009-2012 particularly, which are still with us. “In that period of the Great Recession and the period immediately thereafter, many of our economies contracted following the global economic and financial meltdown of 2008,” Gonsalves said, noting in 2014, economic growth in the sub-region was 2.4%. “This is good news. Our regional economy is starting to improve. Not withstanding this improvement, our economies continue to face challenges to sustainable growth, fiscal and debt sustainability and financial stability. The Monetary Council desires to see faster economic recovery and stronger job creation.” Gonsalves said as a result the Monetary Council has agreed to lower the minimum deposit rate from three to two percent in order to spur economic development. He said the last occasion the rate was reduced was in 2002 defending the new rate policy. “Our banking system has a lot of money – excess liquidity, yet credit to the private sector (new OECSBusinessFocus Aug / Oct

PM Gonsalves said at the same time, non-performing loans in the banking system are very high and average 18.8% across the ECCU, largely because of the difficult economic situation in many of our countries.

“Combined with the economic recovery taking place in our economies, we expect to see banks start lending more to the private sector. There are too many potentially good businesses struggling to secure working capital and struggling to survive. Some of these businesses are paying very high interest rates on loans from our commercial banks. “As a consequence of the lower deposit rate, we anticipate a lowering of interest rate spreads. More importantly, we expect to see businesses pay lower interest rates on loans provided by our commercial banks. “We are especially keen to see lower interest rates for all export-oriented firms. We would also like to see interest rates on mortgages continue to fall so that more of our people can afford to own a home,” he said. Gonsalves also said there was the need to strengthen the regulatory and supervisory framework for banks, noting that since 2009,”our banks have recorded declines in profitability and performance” and the global crisis has led to significant contraction in domestic economies and increases in nonperforming loans. He said these experiences led to the Monetary Council’s decision to pursue a comprehensive bank resolution strategy aimed at strengthening the resilience of the financial system in the ECCU. “Ultimately, our strategy will result in a stronger banking sector resulting in greater financial stability and faster economic progress. The measures that we have taken are to ensure that your deposits are safe,” Gonsalves said, adding that a decision had also been taken to extend the timetable to reduce the debt to gross domestic product (GDP) ratio to 60% from 2020 to 2030. ¤ www.oecsbusinessfocus.com

Anu & Barbuda Tourism Authority

OECSBusinessFocus Aug / Oct

MONEY MATTERS

Business Development Strategies for OECS Small Businesses

By: Michelle Stephens

itizens of the Organisation of the Eastern Caribbean States (OECS) Economic Union are free to work, establish businesses, provide services and reside for indefinite periods in any OECS state. This enviable opportunity became a reality on 21 January 2011 when the Revised Treaty of Basseterre came into effect. For the entrepreneur and small business owner, it means an expanded market with potential for increased revenue; and for the consumer it means greater choice. But as entrepreneurs and small businesses decide on the method for delivering goods and services to their sister island (market entry strategy); to grow their business, the right business development strategy must be adopted. The business development strategy will act as a guide to navigating the growing yet uncertain first years in the new market. It will focus resources on key operations, including technology, marketing, partnerships and employee development. So what are the likely business development strategies that should be considered?

Focus on marketing:

Get a deeper understanding of the islandâ&#x20AC;&#x2122;s economy, its regulations on quality and environmental standards, and customs, income tax and labour laws. Despite historical and cultural similarities, OECS islands face unique economic and social development challenges; and in the absence of the OECS customs union and the harmonization of standards and taxation policies, national laws will influence the price of inputs to production as well as your businessâ&#x20AC;&#x2122; overall pricing strategy. Use the information resources from the local export development and investment promotion agencies.

Create interest in your business by investing significantly in marketing and public relations during the early years in the new market. Build and maintain a social media presence; join and be active in the local business associations; engage the surrounding community; sponsor a charitable cause; appear on the local radio and television channels; place advertisements in the local newspapers and magazines; offer enticing promotions to stimulate first time buyers; award scholarships to young persons interested in your industry and finally be consistent in delivering value to customers.

Collaborate with key partners: The OECS Economic Union provides Seek out strategic partnerships with existing businesses, suppliers, civil society and even competitors. These will enhance your ability to respond to market changes and strengthen your competitive advantage by leveraging market knowledge and sharing of resources. It can also introduce you to potential investors, customers and business mentors.

tremendous opportunities for the entrepreneur and small business owner, just be strategic and go after those opportunities.

Get close to the customer:

Have a clear goal: Know why you want to enter one or all of the ten member states of the OECS - Martinique being the most recent member. Who do you want to target? How does entering the new market or markets align with your strategic growth objectives? Do you want to achieve a specific revenue target in the first two to three years? Or are you aiming for market leadership in your product or service category? OECSBusinessFocus Aug / Oct

Understand the market:

Actively solicit customer and employee feedback via social media, customer and employee surveys and informal conversations. This will spark new product ideas, refine your understanding of customer preferences and allow you to adjust product or service features, promotions and advertising messaging.

Michelle Stephens is a business strategy consultant with over 15 yearsâ&#x20AC;&#x2122; experience in the field of strategic planning, marketing and business development, having advised several regional public and private sector businesses on strategic and marketing strategies. This article is for general information purposes only and does not constitute legal advice. Follow on Twitter: MichelleStephens@Michst22 www.oecsbusinessfocus.com

Rebrands Insurance Company The CEO added that the company is now looking to expand its micro insurance range of products; Bill Protect, GK AMed, Smart Protect and the Livelihood and Protection Policy and will be introducing an online insurance portal dubbed GKG-Online over the next few months, as part of the rebranding process. “We will be using technology to drive this business. I’m sure when you’re watching Cable TV you see Progressive and Geico and it shows what technology can do in terms of reducing the cost to the customer through use of the Internet,” he said. The platform will allow customers the convenience of creating their own policies from home. The company’s six locations in Jamaica now bear the GKGI logo. Grace Kennedy’s Don Wehby at GKGI

New Company GKGI Confirms Expansion Plans to 8 Caribbean Markets

Karena Bennett is a Business Reporter with the Jamaica Observer

By Karena Bennett

he recently rebranded GraceKennedy General Insurance Company Limited (GKGI) is looking to expand its footprint into Caribbean markets.

GK’s Group CEO Don Wehby told the Jamaica Observer during the rebranding of the GK-owned Jamaica International Insurance Company (JIIC) to GKGI, that the process is now active and will see the company mulling a presence in eight Caribbean countries with immediate focus on Trinidad and Tobago, Barbados and Guyana. The CEO stated that a strategic objective for GK’s insurance division is to expand regionally following an 80 per cent acquisition of the St Lucia-based EC Global Insurance Company last year. “We did a lot of market research both inside and outside of Jamaica as to what is the best brand that we should use for our insurance business and GK General Insurance came out by far as the brand that we should use,” Wehby said in response to the insurance company’s closer alignment with the GK Group. “In addition to that, we thought it important to really embed the brand GK with all our strength in terms of honesty, integrity and trust into our insurance business,” he added. Wehby stated that the expansion could occur by way of greenfield operation, an acquisition or a partnership with an existing company and will be ongoing over the next 24 months. Currently, GK has insurance operations in Dominica and has also recently rebranded its Turks and Caicos operations to GK Insurance Brokers. OECSBusinessFocus Aug / Oct

TECHNOLOGY

Barbados Hosts Region’s First Peering Forum With Akamai Tech, Google and Other IT Stakeholders in Attendance

he first-ever Caribbean Peering and Internet Connection Forum (CarPIF) hosted in Barbados successfully concluded with commitments from Internet giants Akamai Technologies and Google to pay closer attention to the needs of Caribbean Internet Service Providers and consumers. More than 40 regional and international technology experts met in Barbados on May 27 and 28 to discuss strategies for improving the economics and technical efficiency of Internet content delivery in the Caribbean. The meeting, organised by the Caribbean Network Operators Group (CaribNOG), explored the state of Caribbean Internet infrastructure, the impact of local Internet exchange point (IXP) deployment in the region, and practical steps for improving the quality and cost-effectiveness of Internet service across the region. The gathering was supported by two non-profit Internet organisations, Packet Clearing House (PCH) and the Internet Society (ISOC), along with the Caribbean Telecommunications Union. It attracted Internet Service Providers, including Cable and Wireless and Columbus Networks, as well as telecommunications regulators and IXP operators from across the Caribbean. International participants included the American Registry for Internet Numbers (ARIN) and the Internet Registry for Latin America and the Caribbean (LACNIC), search-engine giant Google, and Akamai, the world’s largest content delivery network provider. “The success of the region’s first Peering Forum is testament to the increasing maturity of the Caribbean Internet community, and the increasing regard for that community by international players in the Internet space,” said Bevil Wooding, Internet Strategist with PCH and a main organiser of the event. He OECSBusinessFocus Aug / Oct

said that while the region recently made “positive strides” in establishing critical Internet infrastructure, there was still “considerable room for improving the reliability and efficient delivery of content to Caribbean consumers.” Wooding, one of the co-founders of CaribNOG, is responsible for establishing the Peering Forum, together with Shernon Osepa, Regional Outreach Manager for ISOC, an organisation that encourages and supports Peering Forums in other parts of the world. “ISOC was pleased to be able to work together with the CaribNOG community and Packet Clearing House to stage this first Peering Forum in the Caribbean,” Osepa said. Arturo Servin, who works on content delivery and peering for Latin America, the Caribbean and the Iberian Peninsula at Google, shared on the mega corporation’s experience in bringing its content closer to Caribbean customers. Google Inc is the company behind popular Internet services such as YouTube and Gmail. “Google wants to bring its content as close as possible to Caribbean audiences,” Servin said. “We are currently exploring options that will allow us to better service Internet Service Providers and IXPs in small markets like those in the region.” Google committed at the meeting to support IXPs in the Caribbean, and used the opportunity to meet face to face with IX operators and regulators from across the region. “This was a great opportunity to meet our customers in the Caribbean and establish new connections,” said Martin Hannigan, Director, Networks and Data Centre Architecture at Akamai Technologies. Organisers announced plans for the second CarPIF event to be staged in Curaçao in July 2016. ¤ www.oecsbusinessfocus.com

“transforms CWC, and is one that will accelerate the delivery of our strategy across the Caribbean and Latin America.”

Group Revenue Higher at US$1.8b

He added: “Columbus is an outstanding business, backed by a state-of-the-art terrestrial and submarine fibre network. Our complementary fixed line and mobile networks and our focus on providing the best customer service, bringing together the skills and capabilities of over 7,500 team members, will position us better to serve our customers and improve the ICT infrastructure of the communities in which we operate.” Bentley said CWC is becoming a better company, a genuine quad play operator, with strong market shares in the Caribbean and Latin American markets and good long-term growth prospects across consumer, business solutions, and networks businesses. “Overall we are pleased with the results following the first year of our new strategy, but there remains much to do to realise the full potential of the business,” he said. ¤

Phil Bentley Chief Executive of CWC

to Launch Windows 10 on July 29

ust months after completing its acquisition of Columbus International, Cable and Wireless Communications Plc (CWC) has announced that its group revenue is up four per cent to US$1.8 billion for the year ended March 31, 2015.

The company said this strong performance reflects strategic progress over the year, including a 7 per cent increase in earnings before interest, taxes, depreciation and amortization (EBITDA) of US$585 million and a successfully completed US$100 million cost reduction plan. With the Columbus acquisition completed on March 31, CWC said integration was underway. Commenting on the results, Phil Bentley, Chief Executive of CWC, described 2014 as “a year of transformation and growth.” “We created a new senior executive team operating out of our new Miami hub. We developed a new vision and strategy for the group, backed by our US$1 billion Project Marlin investment programme. We began to execute a performance improvement plan and deliver our strategy to grow. “The team’s hard work has started to deliver results as we saw top-line growth for the first time since demerger and EBITDA margins improve.” he said. Bentley said the Columbus acquisition

icrosoft recently announced that the latest version of its Windows Operating System will be available July 29 for computer and tablet users.

The new Windows 10 software will come as a free upgrade to people who already use Windows 7 or Windows 8.1 and will be available in 190 countries. Windows 10 will come pre-installed on Microsoft compatible computers and tablets from July 29 and will be available for purchase later in the year. The move marks a major launch for Microsoft, after the relative failure of Windows 8, which was rolled out in 2013. Microsoft has high hopes for Windows 10, which it wants to see installed in a billion devices around the world by 2018. The idea is to win over app developers. Windows 10 is expected to feature a common base with which developers will be able to build apps that work on smartphones, tablets, PCs and desktops, and even Xbox. ¤ OECSBusinessFocus Aug / Oct

TECHNOLOGY Rodrigo de la Parra, Vice President for Latin America and the Caribbean, Internet Corporation for Assigned Names and Numbers at LACNIC 23, Westin Hotel, Lima, Peru. PHOTO: GERARD BEST

Caribbean Significant to Global Internet Governance

top executive of the non-profit that oversees all the Internet addresses has described the Caribbean as “significant” to the governance of the global Internet. Rodrigo de la Parra, Vice President for Latin America and the Caribbean at the Internet Corporation for Assigned Names and Numbers (ICANN), said the sub-region’s geopolitics gives it strategic importance and the potential to punch above its weight on the global stage. “If you look at the Caribbean in terms of population, it’s not that representative, but if you look in terms of the nations, it’s huge.

and enhancing advanced technical capacity in rural or remote areas.

It’s perhaps even larger in number than the rest of the Latin American region,” said de la Parra. The demographic diversity of the small-island states’ relatively small populations makes them unique and more representative than their larger, more homogeneous Central and South American neighbours, he said. De la Parra was speaking in an interview during an annual gathering of the Internet community organised by the Internet Address Registry for Latin America and the Caribbean (LACNIC) in Lima, Peru.

The two Caribbean RIRs collaborate on a range of initiatives to improve the regional Internet. In July, they are to host a meeting of Caribbean Ministers with responsibility for Internet and Telecommunications in Miami, as part of an annual industry conference held by the Caribbean Association of National Telecommunication Organisations (CANTO), a regional association of service providers. The main goal of the meeting is to encourage high-level decision-makers to deploy the latest version of Internet Protocol, called IPv6.

The weeklong event was “an opportunity for stakeholders from the Caribbean served by LACNIC to update themselves with regard to current issues” affecting the region, said ICANN Stakeholder Engagement Manager for the Caribbean, Albert Daniels. Hundreds of delegates gathered for talks on Internet governance and other issues affecting the evolution of the regional Internet. Not only is the Caribbean quite significant, de la Parra said, but its significance is growing.

Caribbean Internet service providers have been relatively slow to adopt the new technology. Studies on Internet traffic show a global average IPv6 adoption rate of around five per cent, while the region lags at less than one per cent. The current Internet Protocol, called IPv4, does not have the amount of address space necessary to deal with the rapidly increasing number of connected devices that send and receive information online.

The region’s resident expertise and capacity have been increasing substantially, in large part through the efforts of active agencies on the ground, such as the Caribbean Telecommunications Union (CTU). “In terms of Internet governance, the Caribbean is an example to the world,” de la Parra said, adding that the work of the CTU has set the region apart. “The Caribbean Telecommunications Union has been the leader in the world in the discussion of Internet governance. Even at the global level, there have been fewer Internet governance forums than in the Caribbean, and the CTU is leading these efforts.” In addition to its Caribbean Internet Governance Forum, the CTU pioneered the Caribbean ICT Roadshow, which has become a global model for building basic digital awareness OECSBusinessFocus Aug / Oct

To ensure the continued expansion and security of the Internet in the region, de la Parra said, bodies like ICANN must continue to work alongside the CTU, the Caribbean Network Operators Group (CaribNOG), the Internet Society (ISOC) and other key regional Internet organisations, such as the two regional Internet registries with responsibility for the Caribbean - LACNIC and the American Registry for Internet Numbers (ARIN).

ARIN’s stock of available IPv4 addresses is expected to run out soon. “We’re sponsoring a ministerial breakfast to do outreach on IPv6 targeted at the top-level - the Ministers, the CEOs about why it’s important to transition to IPv6,” said Leslie Nobile, Senior Director of Global Registry Knowledge at ARIN. The two RIRs work together in the region on an informal basis, driven by a recognition that the communities that they serve benefit from their collaboration, Oscar Robles, LACNIC Executive Director said “We met in some of the regional forums, and we realised that we were doing similar things, so we said, ‘Let’s coordinate,’ We said, ‘Let’s work together, rather than compete,’” Robles said. ¤ Courtesy: Trinidad Guardian www.oecsbusinessfocus.com

Budget Marine

OECSBusinessFocus Aug / Oct

TECHNOLOGY

CARCIP Assisting ECTEL Countries with Development of Legal and Regulatory Framework

ECTEL CEO Embert Charles

ECTEL Holds Consultations in Member States

he Eastern Caribbean Telecommunications Authority, ECTEL, has commenced consultations that are expected to lead to the revision of Quality of Service (QoS) Standards, to be adhered to by Telecommunications Providers in Member States.

QoS Standards ensure that consumers have access to high quality telecommunications service by setting basic minimum quality levels, for all public telecommunications services. These standards define the lower and or upper bounds of acceptability of technical issues such as transmission rates, error rates, call consumer rates and commercial issues such as access to customer help lines, billing integrity and other characteristics that can be measured and improved. The ECTEL Board of Directors mandated the consultations at its 67th meeting. The new draft Quality of Service Regulations is now available in Member States for comment until Wednesday, July 24th, 2015. Persons wishing to make a contribution to the consultation may do so by contacting the National Telecommunications Regulatory Commission NTRC in their territory and following the instructions outlined in the consultative document. The consultation document on Quality of Service standards is available on the websites of ECTEL and the NTRCs in the five ECTEL Member States. Meetings with target interest groups and communities are also being planned to facilitate the consultation process. ¤ OECSBusinessFocus Aug / Oct

hree Eastern Caribbean Telecommunications Authority-ECTEL Member States, are moving closer to the development of legal and regulatory framework for Subsea Fibre, Retail Access and IXPs.

It’s all part of the Caribbean Communications Infrastructure Project (CARCIP) that is being implemented in three ECTEL Member States-Grenada, Saint Lucia and St. Vincent and the Grenadines. Joint Venture-The Great Village International Consultants (GVIC), Bird and Bird and JIDCOM have been contracted to provide consultancy services for the development of this component of the project. The objectives of the consultancy are to improve the legal enabling environment to maximize the benefits of the infrastructure supported under CARCIP; strengthen the competitiveness of the telecommunications market in the medium term and provide support for capacity-building initiatives of ECTEL and the NTRSs to draft, implement and enforce revised legislation. To this end, the consultancy will undertake an assessment of regulatory needs, recommend changes to the legal and regulatory framework and assist ECTEL with the consultation process. The national components of CARCIP are being coordinated through specialized units, which have been established in departments responsible for ICT in the three countries. To date, the national activities which have been undertaken, include launching of Internet Exchange Points (IXPs), specialized training in the principles of regulating broadband and the design of national broadband networks. The consultancy began in Saint Lucia on June 22 and the consultants are expected to meet with representatives of ECTEL, the NTRCs, Telecom Providers and the Ministries of ICT and or Telecommunications in the CARCIP member states. The CARCIP programme is an initiative funded by the World Bank that aims to leverage Information and Communications Technology (ICT) throughout the region. The Caribbean Telecommunications Union (CTU) is collaborating on the project, which will also benefit other ECTEL Member States, St. Kitts and Nevis and Dominica. ¤ www.oecsbusinessfocus.com

CWC to Introduce Post Hurricane Drones Awarded

s the Atlantic hurricane season is fast approaching, Cable & Wireless Communications (CWC) has started to test drone technology to help speed up network and connectivity restoration in the aftermath of hurricanes and other natural disasters.

The drones would undertake aerial surveillance of communications infrastructure, effectively eliminating the need for workers to conduct dangerous or risky tower climbs in the aftermath of a storm. The company explained that while treacherous conditions after a natural disaster make it difficult to assess physical damage to infrastructure and can endanger field technicians sent to fix the issues, drones would enable quick, safe, and wide-area evaluation of the impact on communications infrastructure and allow personnel to move quickly to fix the problem. “Hurricanes and tropical storms have been known to cause severe damage to telecoms infrastructure in the Caribbean, including our mobile and fibre masts,” said Group Chief Technology and Information Officer, Carlo Alloni in a statement. “Along with power and water, it is critical that we re-establish communications swiftly in the event that adverse weather conditions cause wide-spread service disruption. With communications as a linchpin for such relief efforts, we take our role in the recovery process very seriously.” The news follows the announcement by C&W of Flow as its residential consumer brand in markets where it has received the necessary approval to merge. John Reid, President of the consumer group of C&W that currently operates both the Flow and LIME brands said: “Our customers are relying on us to keep them connected, and at the very least to reconnect them swiftly with family, friends and the wider community should a natural disaster, such as a hurricane, impact our services.” He said it was the company’s duty to maintain those connections, ensure minimal disruption in the wake of natural disasters, and find other ways to be innovative and deploy technology as a problem solver. ¤

Regional Partner of the Year

Caption: Cable & Wireless Communications was recognized as Avaya’s Central America and Caribbean Mid-Market Partner of the Year during the recent Avaya Partner Engage Week

able & Wireless Communications (CWC) recently announced it has been recognized as Avaya Central America and the Caribbean Mid-Market Partner of the Year for 2014. In addition to this win, Cable and Wireless received nominations for Project of the Year, Salesperson of the Year and Pre-Sales Engineer of the year. The company received the award during Avaya’s recent Partner Engage Week Event in Miami, FL. “We are honored to receive this award from Avaya that serves as a testament to our team’s hard work and dedication in serving our customers with excellence. The Small and Medium Enterprise segment is one of the largest growing in the Caribbean and Latin America and thus a vital piece of our business plans. We look forward to continue working with key partners, such as Avaya, in helping small and medium companies grow in the region, while providing them with the best ICT products and solutions”, said John Maduri, President Cable & Wireless Business. CWC has been Avaya’s Platinum Partner for the past five years, the highest partner status level in Avaya’s Channel Relationship hierarchy. With this award, Avaya recognizes CWC’s commitment to the region shown through increased synergy and collaboration as well as the launching of new initiatives such as myOFFICE, a business solution that helps small and medium companies achieve faster and more efficient communications, improve productivity, and cut costs. “With the integration of Columbus, Cable & Wireless Communications is positioned to excel as one of the region’s top ICT providers. As Avaya’s first and longest running Platinum Partner in the Caribbean and Central America, we are glad to be one of Cable & Wireless’ partners of choice and continue working together to deliver innovative solutions to companies and governments in the region” said Galib Karim, Managing Director, Avaya LATAM. OECSBusinessFocus Aug / Oct

TECHNOLOGY

Relaunches App

igicel unveiled its new look My Digicel App that boasts dozens of cool new features like managing your Digicel account, access to social media newsfeeds and a customer feedback portal – making it the go-to place for all things Digicel.

In addition, the app is free to use meaning customers are not using a single MB of their data to access the information and content available on the app. The newly-designed app introduces a user-friendly interface that comes with a whole host of new features such as allowing customers to send top up to any Digicel phone, locally or internationally, view account information, opt in and out of plans and see the latest promotions and offers – all of which is available 24-hours a day, free of charge to customers. The app also includes social media feeds so that customers can connect with Digicel through Twitter and Facebook and take advantage of exclusive offers that are only available through the app. Digicel Group Chief Commercial Officer, Claudio Hidalgo, said; “We are excited to be introducing our newly-designed My Digicel App that makes it easier for customers to access all of our services free of cost at any time using their smartphones. The new app boasts all the great features that customers have come to know and love, as well as a host of new ones such as sending credit to friends and family at home and abroad and accessing Digicel’s social media newsfeeds for the latest updates.” “We wanted to create one place where our customers could access all things – from sending and receiving top up, to activating plans, accessing special offers and getting the latest news - the new My Digicel App does just that. The app also includes a feedback feature where customers can share their views on the app and its functionalities so that we can work to improve it on an ongoing basis,” concluded Hidalgo. ¤ OECSBusinessFocus Aug / Oct

Digicel Bermuda CEO Robin Seale

Digicel Acquires Bermuda Telephone Company

igicel has completed its acquisition of Bermuda Telephone Company (BTC). But the telecommunications company is keeping the details of the deal, including how much it paid for BTC, close to its chest.

In a statement issued by Digicel Bermuda CEO Robin Seale said the buyout would put the company in a better position to serve its customers. “With the acquisition now complete, we are even further committed to delivering the best value, service and network on the island while expanding our suite of products and services to offer a larger portfolio to our customers,” he said. “Digicel is already heavily investing in increasing the capacity of our service and the acquisition of BTC will provide the framework to broaden that even further; growing our business, creating more jobs and investing in the future of Bermuda’s communications industry.” Digicel had announced its intention to acquire the local telephone company back in January, only six months after Canadian-led Barrie Holdings bought BTC from KeyTech for US$30 million. ¤ www.oecsbusinessfocus.com

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UWI Open Campus Anguilla The Valley Phone: 264-497-8156 Fax: 264-497-2355 e-mail: anguilla@open.uwi.edu www.open.uwi.edu/anguilla/

Antigua and Barbuda

UWI Open Campus Antigua & Barbuda P.O. Box 142 St. John’s Phone: 268-462-1355 Fax: 268-462-2968 e-mail: antigua@open.uwi.edu www.open.uwi.edu/ antigua_barbuda/

Barbados

UWI Open Campus Barbados The Pine, St. Michael Phone: (246) 430-1120 or 1133 email: barbados@open.uwi.edu www.open.uwi.edu/barbados/

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British Virgin Islands

UWI Open Campus BVI HLSCC Campus, Paraquita Bay, P.O. Box 4324, Rd Town, Tortola Phone: 284-494-6957 Fax: 284-494-4263 e-mail: bvi@open.uwi.edu www.open.uwi.edu/ british_virgin_islands/

Dominica

UWI Open Campus Dominica Elmshall Road, P.O. Box 82, Roseau Phone: 767-448-3182 Fax: 767-448-8706 e-mail: dominica@open.uwi.edu www.open.uwi.edu/dominica/

Grenada

UWI Open Campus Grenada Marryshow House P.O. Box 439, St. Georges Phone: 473-440-2451 Fax: 473-440-4985 e-mail: grenada@open.uwi.edu www.open.uwi.edu/grenada/

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UWI Open Campus Montserrat P.O. Box 256, Salem Phone: 664 491 3924 / 2344 Fax: 664 491 8924 e-mail: montserrat@open.uwi.edu www.open.uwi.edu/montserrat/ UWI Open Campus St. Kitts & Nevis P.O. Box 326, Basseterre Phone: 869-465-2190 (St. Kitts) Fax: 869-465-6583 (St. Kitts) Phone: 869-469-0387 (Nevis) e-mail: st.kitts@open.uwi.edu www.open.uwi.edu/ st_kitts_nevis/

UWI Open Campus St. Lucia P.O. Box 306, Castries Phone: 758-452-3866 Fax: 758-452-4080 e-mail: st.lucia@open.uwi.edu http://www.open.uwi.edu/st_lucia/ UWI Open Campus St. Vincent & The Grenadines P.O. Box 610, Murray Road Kingstown Phone: 784-456-1183 Fax: 784-456-1251 e-mail: st.vincent@open.uwi.edu www.open.uwi.edu/ st_vincent_grenadines/

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OECSBusinessFocus Aug / Oct

TOURISM

Caribbean Countries Record Growth in Tourist Arrivals

he Caribbean recorded a six per cent increase in tourist arrivals in the first quarter of 2015 compared to the same period last year, Chairman of the Caribbean Tourism Organization (CTO) Richard Sealy has said.

Sealy, who is also the Barbados Minister of Tourism, is attending the CTO sponsored Caribbean Tourism Week in New York, said that the Caribbean continues its rapid growth rate from 2014 when arrivals grew by 5.3 per cent to 26.3 million visitors “We’ve bolted out of the gates with a six per cent rise in arrivals over the first quarter of 2014. Arrivals to the Caribbean estimated to be 7.9 million in the first three months. This is the fifth consecutive year in which arrivals grew during the first quarter and the 17th quarter of continuous growth,” he said. Sealy said that the United States market “continues to be our most productive,” with arrivals from that market showing an increase of 5.6 per cent. The Canadian market grew an equally impressive 5.4 per cent with Cuba and Dominican Republic among the destinations recording higher levels of arrivals. In the accommodation sector, all leading hotel performance indicators were positive. There was a modest increase of 1.3 per cent in the number of rooms available in the first quarter, the largest increase for this quarter in the last seven years. Historical first quarters highs were also recorded for Room Occupancy (77.8%), Average Daily Rate (US$239.84) and Revenue per Available Room (US188.25). In cruise, passenger arrivals slowed in the first quarter with the Caribbean registering a 3.4 per cent rise, compared to a 4.3 per cent growth in 2014 over 2013. An estimated 8.6 million cruise passengers visited the region in the first quarter with the best performing destinations being the French island of Martinique (34.2%), Puerto Rico (26.2%), Antigua & Barbuda (18.6%) and Jamaica (15.9%). Sealy said that the outlook for the remainder of the year is positive with growth expected to be moderate and uneven among member countries. “However, overall tourist arrivals are now anticipated to rise at least six per cent over 2014, In the cruise sector, the momentum OECSBusinessFocus Aug / Oct

Richard Sealy: Chairman Caribbean Tourism Organization

gained in the first quarter could be reduced as cruise ships are repositioned away from the region,” he said. Meanwhile, Sealy said that the region is not overly concerned about Cuba as a competitor, now that the United States is improving ties with the Communist island. Seal said more tourists visiting Cuba will be a good thing for the Caribbean on a whole. “Cuba is not a problem for the CTO or the Caribbean. We are not afraid of what is happening in Cuba. As a matter of fact Cuba is a member of the Caribbean Tourism Organisation and has been for some time,” Sealy told reporters. With only the US restricting travel, three million foreigners arrived in Cuba last year, according to the government, making it the second-most visited island in the Caribbean after the Dominican Republic, which attracted more than five million visitors. Cuba’s largest source market - Canada, is also a major source market for other countries in the Caribbean. “Canadians love Cuba and we are already trying to get business from Canada alongside of Cuba so the competition from Cuba is not new,” Sealy said. “Where I’m from, in Barbados, the United Kingdom is our largest source market and so I have to compete against Cuba to get Brits because they are going to Cuba and that is the simple reality – 56,000 rooms and three million tourists a year, Cuba is already a player in tourism. And for us in the CTO and for those of us involved in tourism in the Caribbean Cuba is not new. “More people coming to Cuba mean more people coming to the Caribbean and therefore the natural thinking of us at the Caribbean Tourism Organisation is that it can only auger well for us. Those persons who were not previously coming to the region that are now coming to the region via Cuba can only redound to our benefit and we look forward therefore to seeing Cuba’s full integration into this whole system of offering tourism services,” the CTO Chairman added. ¤ Courtesy: Jamaica Observer www.oecsbusinessfocus.com

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Joan Devaux

ocated on the south west coast of Saint Lucia, just outside the historic town of Soufrière, you will discover two of the island's great treasures.

The first is the Diamond Falls Botanical Gardens and Mineral Baths, managed in concert with Soufrière Estate. The latter was established in 1713 and granted to three Devaux brothers for services to King Louis XIV of France. The former has been around since 1983. And it is here that the second treasure comes in. Joan Devaux (nee du Boulay) took over Soufrière Estate from her father, André du Boulay, in 1983. It was her vision, the year after he died aged 84, to plant the gardens now enjoyed by thousands of visitors and locals alike. "I reluctantly agreed to take over the management of the estate for a short period of time," she says, "but after nineteen and a half years I still manage the estate. As copra and cocoa could not provide sufficient funds to improve and restore the estate I had the idea of turning the valley and the waterfall into a beautiful botanical garden." Soufrière was the original capital of Saint Lucia, and many today call it the island's tourism capital. Mrs Devaux's shrewd management has made the Botanical Gardens one of the town's beloved natural attractions, alongside the Sulphur Springs and the twin peaks of the Pitons. "The timing was right," she explains. "Cruise ship travel was then beginning and Pointe Seraphine, a docking facility and shopping

OECSBusinessFocus Aug / Oct

area, was being completed. The creation of the Gardens, Baths and Waterfall I dedicated to the memory of my parents." The combination of history and natural beauty is special to Mrs Devaux, the eldest of her parents' six children. Her brother, Desmond, and sister, Camille, were both involved in World War II, and Desmond perished alongside two fellow Saint Lucian pilots in the Great War. For her part, Joan du Boulay was educated at St Joseph's Convent in Saint Lucia, and Ursuline Convent in Barbados, before going to to Sherborne Dorset in England. She would holiday in Belgium, where she learned to speak French. Of her father, Mrs Devaux recalls that "He designed new machinery for crushing limes, which was also adopted by other factories and when a root disease destroyed his lime crops in one year, he provided an alternative crop by importing the dwarf coconut from Malaysia." Mr du Boulay played a vital role in the development of the copra industry and the Coconut Growers Association, among others. In the 1930's, he restored the mineral baths that had been an important feature of the estate in centuries gone by. Surely Mr du Boulay would be proud of what his daughter has done with the trust he reposed in her. Not only has she kept the memory of her parents alive, but she has built on a great legacy to take pride of place as one of the innovators of Saint Lucia’s tourism industry. ¤ www.oecsbusinessfocus.com

Taste A Piece Of Paradise At Soufriere Estate

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OECSBusinessFocus Aug / Oct

TOURISM

Barbados Breaks a 25 Year Record for Tourist Arrivals

arbados achieved a record 171,471 long stay visitor arrivals during the first quarter of this year, breaking a longstanding 25 year figure, Chairman of the Barbados Tourism Marketing, Inc (BTMI), Alvin Jemmott, has said.

“2014/15 was a very strong winter season. The Caribbean Tourism Organization (CTO) has predicted a five per cent increase in long stay arrivals for the region for the entire year and we believe our performance in this first quarter bodes well for us to comfortably exceed that target.” Jemmott said there were record arrivals in each of the first three months of 2015 and attributed this milestone performance to a number of factors including increased airlift capacity negotiated by the BTMI, healthy economic conditions in key markets, a commitment to developing new source markets, Barbados’ strong reputation among its global partners and the agency’s solid promotional strategies for reaching the travel trade, media and consumers in each market. BTMI Chief Executive Officer, William Griffith, said that a comprehensive review effort has begun to ensure that the BTMI’s policies support their new mandate as a private entity. According to the figures released by the BTMI, arrivals from the United Kingdom, the United States, Canada, the Caribbean and Latin America grew by 12.9 per cent, 27.7 per cent, 28.4 per cent and 10.6 per cent, respectively. The BTMI said that these strong performances, including a 23.6 per cent increase in arrivals from Germany and a 17.7 per cent rise from “other Caricom” overshadowed the 2.4 per cent decline in the Trinidad and Tobago market and the dip in arrivals from “other Europe” by 27.3 per cent. While the cruise sector declined by 6.1 per cent to 217,139 passengers, there was a welcome increase in home porting, resulting in ships purchasing goods and services from local dairy, retail and other suppliers. There is also a trend being observed with smaller ships being replaced by larger vessels, some with the capacity to carry over 4,000 passengers. ¤

OECSBusinessFocus Aug / Oct

JetBlue Airways, Seaborne Airlines Sign Codeshare Agreement

etBlue Airways and Seaborne Airlines have finalized terms to launch a codeshare relationship, the two companies announced. This is a follow up to an existing interline agreement signed in 2013.

“The codeshare will help facilitate improved connectivity between two of the top airlines in the Caribbean,” Seaborne said. “We are excited to expand our partnership with JetBlue. Providing improved connectivity in our common hub of San Juan will add tremendous value to Caribbean residents, visitors, and businesses,” said Seaborne President and CEO Gary Foss. “We are honored that JetBlue, known for outstanding customer service, would recognize the same that Seaborne employees are providing throughout the Caribbean.” The agreement means Seaborne will expand the JetBlue network to destinations like Martinique, St Kitts, Nevis and Tortola, among others. “Our codeshare agreement with Seaborne makes traveling to the Caribbean easier than ever, and that’s the way a beach vacation or family visit should feel,” said Scott Laurence, senior vice president for airline planning at JetBlue. “Between JetBlue’s leading position as San Juan’s largest and most customer friendly airline, and Seaborne’s extended local reach, this is a win-win partnership for customers and tourism.” Seaborne is also a codeshare partner of American Airlines and Spain’s Air Europa. The company and its partners offer service to 32 destinations in the Americas and Europe from San Juan. “The Puerto Rico Tourism Company welcomes this new partnership that supports and strengthens our efforts to increase air access to the Island. This new codeshare marketing relationship between Jet Blue and Seaborne facilitates the entrance of more visitors and positively impacts the economic development in the Island,” said Ingrid Rivera Rocafort, executive director of the Puerto Rico Tourism Company, in a statement. ¤ www.oecsbusinessfocus.com

Dominica and Tortola, BVI with both commercial and domestic flights. This will be every Mondays and Fridays in the initial stages as explained by Ms Patricia M. Romney, Director of Operations at Platinum Port Services (BVI). “There has been a history of traffic between Dominica and Tortola with a significant number of persons from Dominica living in the BVI, so, this service will provide an excellent connection for persons who would want to traverse between their homeland or to visit as tourists as well as to take cargo, which is one of the main features of Hummingbird Air.” Ms Romney said that this inaugural flight materialised after some six months of intense negotiation and was very complimentary of Director of the BVI Tourist Board Ms Sharon Flax. “It was actually a mutual friend between ourselves and the owner of the aircraft, he is school friends with the Director of the Tourist Board Ms Sharon Flax so she provided us with some information on the airline for which we were grateful, that’s how we made that connection.”

Enters VI Air Travel Industry

ith the owners Mr Samuel Raphael and Mrs Glenda C. Raphael on board, Hummingbird Air made its inaugural flight into the Virgin Islands on Friday, June 5, 2015 landing at the Terrance B. Lettsome International Airport, Beef Island, thanks to the persistence of Platinum Port Services (BVI). This newest boost to the Virgin Islands tourism industry will for the first time in the BVI’s history see the linking of Canefield,

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OECSBusinessFocus Aug / Oct

ENVIRONMENT

Bill Clinton Is Making a New Green Push in the Caribbean Region

Former US President Bill Clinton he Clinton Foundation’s Clinton Climate Initiative and the Rocky Mountain Institute have announced an official partnership aimed at promoting green energy in the Caribbean region.

The partnership will combine the work of several initiatives: Resilient Communities Program of the Clinton Climate Initiative and the joint Ten Island Challenge of Rocky Mountain Institute and Carbon War Room. According to a statement from the Carbon War Room, the partnership will work in select Caribbean islands to develop green energy projects; identify project-financing and investment opportunities to attract capital and develop best practices for collaboration between countries. “The world has a moral imperative to save island nations from disappearing or suffering irreversible damage, and an economic imperative to reduce their reliance on costly imported fossil fuels and build climate resilience to avoid catastrophic disasters,” former US President Bill Clinton said in a statement. “Working in partnership with Rocky Mountain Institute and Carbon War Room, the Clinton Climate Initiative is bringing governments, businesses, and financial backers together to help design, OECSBusinessFocus Aug / Oct

implement, and scale up clean energy projects across the Caribbean and around the world.” The Rocky Mountain Institute and Carbon War Room have been working on the Ten Island Challenge, which includes Aruba, the Bahamas, Colombia (Providence and San Andrés islands), Grenada, Saint Lucia, and the Turks & Caicos Islands with four more slated to join this year. “The Government of Saint Lucia welcomes the partnership of Clinton Climate Initiative and Rocky Mountain InstituteCarbon War Room,” said Dr James Fletcher, St Lucia’s Minister of Public Service, Sustainable Development, Energy, Science and Technology. “Both organizations have provided meaningful contributions to our country’s energy transition. We are confident their partnership will further accelerate our efforts and the efforts of other island governments towards a prosperous energy future.” Clinton has been a major proponent of green energy efforts in the Caribbean, a plan most notably articulated in a major speech in San Juan, Puerto Rico in 2013. ¤ Courtesy: Caribbean Journal www.oecsbusinessfocus.com

Caribbean Looks to France as Key Partner in Climate Financing

y the time leaders of the international community sit down in Paris to discuss climate change, at least two Caribbean leaders are hoping that France can demonstrate its commitment to assisting their adaptation efforts by re-joining the Barbados-based Caribbean Development Bank (CDB). The CDB is the premier regional financial institution, established in 1969. It contributes significantly to the harmonious economic growth and development of the Caribbean, promoting economic cooperation and integration among regional countries. Of the 19 regional member countries that are allowed to borrow funds from the CDB and also have voting rights, 15 are members of the Caribbean Community (CARICOM). In addition, Canada, China, Germany, Italy and the United Kingdom all enjoy voting rights but like Colombia, Mexico and Venezuela, they are not entitled to borrow funds from the bank. France was once a non-regional member, but withdrew its membership about a decade ago, supposedly because of domestic politics. Now, two Caribbean prime ministers say with the region being among the countries worst affected by climate change and struggling to find the resources to fund adaptation and mitigation efforts, it is time for France to rejoin the CDB. The lobby began on May 9th in Martinique when French President Francois Hollande visited the French overseas territory to chair a one-day Caribbean climate change summit ahead of the world climate change talks in Paris during November and December of this year. During the plenary, St. Vincent and the Grenadines PM Dr. Ralph Gonsalves raised with Hollande the issue of France’s CDB membership. Prime Minister of St Kitts and Nevis Dr Timothy Harris, who is chair of the CDB’s Board of Governors, the bank’s highest policy making body, told the two-day 45th meeting of the board, how Gonsalves raised the issue with his French counterpart. “Caught by Gonsalves flighted googly, the president played just as Gonsalves had predicted and committed to have France returned as a member of the CDB,” Harris said, using an analogy from the Caribbean’s rich cricketing culture. Harris further said that building resilience to climate change and natural disasters remains among the issues that “need critical attention in the context of reshaping a credible agenda for Caribbean development.” He told IPS afterwards it would be “a significant win-win for us all” if Hollande follows through on his commitment to rejoin the CDB. “I think it will enhance France’s own involvement in the region but beyond the region as a major country interested in bringing justice to small island developing states, many of which are found in the Caribbean region,” he said.

When France left the financial institution it raised issues such as the reputation of the bank, because France had been an important member and also has good credit ratings. “Therefore, it coming back again will signal that it has renewed its confidence in the bank. Given France’s own standing as a member of the G20, that will be a positive in terms of the reputation for the CDB. And, therefore, when the bank wins, the people of the Caribbean, whom it serves, they also win and also all of us in the region,” Harris told IPS. An economist, Harris said the Paris talks will “only bear fruits for us if in fact it makes special provisions for the vulnerabilities of small island developing states. “If a member of the G20 group such as France provide leadership in Europe and beyond, certainly it would be a good signal of that commitment for him to re-enter into the CDB as a member,” he said, noting that climate change will continue to be high on the agenda of the CDB during his chairmanship. “It has already been identified by the president of the bank as one of the areas in which the bank wants to have a forward thrust.” he told IPS. CDB president Dr. William Warren-Smith said that the Caribbean has already begun to experience “the damaging effects and associated economic losses of rising sea levels and an increase in the number of and severity of natural hazards”. He said that to participate effectively in climate change adaptation and mitigation, including exploiting the region’s vast renewable energy resources, the CDB must be able to access climate finance from the various windows emerging worldwide. Smith, addressing the board of governors meeting, said that institutions from which climate financing can be accessed “understandably, have set the access bar extremely high”. However, he stressed that the CDB has undergone reforms that will position the institution to gain wider access to climate resources. “I am pleased to say that by the end of this year, we expect to be accredited to both the Adaptation Fund and the Green Climate Fund,” he said, adding that at a recent meeting of Caribbean foreign ministers in Berlin, he proposed the immediate establishment of a “Project Preparation Facility” for Caribbean countries. This facility, to be managed by CDB, would enable the bank’s borrowing member countries to develop a pipeline of “bankable” projects that would be eligible for climate financing. “The government of France has been taking a lead in relation to this matter and Hollande has put his own personal prestige behind it and France has had a good history in this matter and has been playing a leading role in the European Union and also at the United Nations on this matter. So, I am very happy that they are engaged with us in the manner in which they are engaged,” he said. ¤ He is also confident that France will rejoin the CDB. OECSBusinessFocus Aug / Oct

IN THE KNOW

EU Signs Visa Waiver Agreement With Four OECS Countries and Trinidad & Tobago

OECS Eyes

Development of Biometric Swipe Card

he Organization of Eastern States (OECS) Commission has announced new measures to make the free movement of people even easier. Director-General of the OECS Commission, Dr. Didacus Jules, said the regional integration movement is progressing admirably. “We have a long way to go, but we’ve come a long way as well,” he said. “I think we need to take a balanced perspective, and the truth is, within the overall project of Caribbean regional unity, the OECS is far ahead.” In the OECS, there is no need to obtain a skills certificate to move and live in any member state; and a driver’s license allows citizens to drive anywhere in the sub-region. Dr. Jules said the Commission is taking integration one step further with a biometric swipe card that will make travel between member states hassle free. “We have already designed a single biometric ID card that contains all the information that is required so that in the near future, with the issuance of these cards, people from the OECS will not even have to fill out immigration cards to move – you just swipe and you move.” The OECS recently celebrated the 34th anniversary of the signing of the Treaty of Basseterre. ¤

Guyana Swears In A New President

he European Union today has signed short stay visa waiver agreements with Dominica, Grenada, St. Lucia, St. Vincent and the Grenadines as well as Trinidad and Tobago. This allows citizens of these countries to visit all EU Member States, except the United Kingdom and Ireland for up to 90 days within a six-month period without requiring a visa, as long as the purpose of the visit is not to carry out a paid activity. Dominicans, Grenadians, St. Lucians and Vincentians already enjoy visa free travel to the UK and Ireland. Visa requirements will also be waived for four other countries that are not EU Member States, but are members of the Schengen Area – namely Iceland, Liechtenstein, Norway and Switzerland. The agreements were signed during the EU-African Caribbean and Pacific Ministerial Meeting taking place in Brussels and will be applied from the date of signature. The new signatories are additions to the four other Caribbean Countries – The Bahamas, Barbados, Antigua and Barbuda, along with St. Kitts and Nevis – which were granted visa waiver status in 2009 by the EU. ¤ OECSBusinessFocus Aug / Oct

New Guyana President: H.E. David Granger

uyana has officially sworn in its newest President. The country’s new leader, David Granger, a Retired Brigadier of the Guyana Defence Force, was sworn in following his historic victory in the May 11, 2015 general elections.

Granger led a coalition of the APNU (A Partnership for National Unity) and AFC (Alliance for Change) that ousted the ruling PPP/C government after 23 years in power. “We the Guyanese people have seized the opportunity to vote for human safety, national unity and inclusionary democracy,” Granger said in his inaugural address. Granger will lead a government that will include new Prime Minister Moses Nagamootoo. He has also named a 25 member Cabinet of Ministers to include 3 Vice Presidents and 8 Junior Ministers. He is Guyana’s eighth Executive President. ¤ www.oecsbusinessfocus.com

5. To negotiate inter alia joint ventures, partnerships to increase exports between Dominica and Saint Lucia. Five participating Saint Lucian Exporters representing a range of sectors including: Health and Wellness, Construction, Architecture, light manufacturing and Professional Services/ Business Solutions.

Saint Lucia’s TEPA Completes OECS Business Mission

he Saint Lucia Trade Export Promotion Agency (TEPA) embarked on a Business Trade Mission to OECS member states during June. The first leg of the mission targeted the islands of Antigua and Dominica during this week June 08 – 12.

The purpose of the mission was to raise the awareness of Saint Lucia as a source of world class products, services and technologies. The mission endeavoured to capitalize on and strengthen trade opportunities between member states as outlined in Treaty of Basseterre. To this end objectives of the mission were: 1. To obtain a comprehensive understanding of trade and export/import procedures in the respective OECS member states. 2. To obtain first-hand information and meet potential business partners and alliances as well as relevant trade officials in Member States. 3. To engage and explore business opportunities with potential importers, distributors. 4. To create an avenue to increase/improve trade export of products and services between.

TEPA Marketing and Promotion Officer – Gasper George said: “This mission will encourage deeper trade partnerships between the islands which can contribute to improved business. The companies represented by our delegation further demonstrate the range and quality of product /service offerings and our confidence in them meeting the needs and expectations of the end users.” As a core function, TEPA works with companies to grow export sales. Central to TEPA’s 2015/16 strategy are targeted trade missions and international events which are invaluable in opening doors and making high-level introductions for exporters thereby enabling them to exploit opportunities that exist in global markets. ¤

OAS Appoints New Secretary General

Former Belize Ambassador to be the Deputy

Above: Luis Almagro Lemes – New OAS Secretary General at Centre (OAS Photo)

he Organization of American States has appointed a new Secretary General and Deputy Secretary General.

The incoming Secretary General is Luis Almagro Lemes who assumed office officially in a ceremony on May 26 at the Hall of the Americas in Washington, DC. Almagro is the former Foreign Minister of Uruguay. He was elected by the Hemispheric body in March 2015. Outgoing SG Jose Miguel Insulza has served as OAS Secretary General since 2005. The OAS also appointed Ambassador Nestor Mendez of Belize as the new Deputy Secretary General. He will be replacing Ambassador Albert Ramdin of Suriname whose term of office also comes to an end. Ambassador Mendez will assume office on July 12, 2015. ¤ OECSBusinessFocus Aug / Oct

IN THE KNOW

Chairman Gets UWI Honorary Doctorate

Ranked Among World’s Best

A Norman Sabga

roup Chairman and CEO of the ANSA McAL Group of Companies A Norman Sabga is to be conferred with an Honorary Doctor of Law (LLD) degree by the University of the West Indies, St Augustine Campus, at its 2015 graduation ceremony.

In 1998, Dr Anthony N Sabga, founder of the ANSA McAL Group, who holds the title of Chairman Emeritus, was also the recipient of a Doctor of Laws Degree, Honoris Causa, from the UWI. A release from the UWI said he is among eight individuals from the St Augustine Campus and 21 all together from the other campuses to receive Honorary Doctorates in recognition of their stellar contributions to Caribbean development. At The UWI’s Annual Business Meeting in April, the University Council accepted the recommendation to award honorary degrees to the 21 individuals for their outstanding achievements and service to the region in their respective fields. Four are from the Cave Hill Campus, seven from the Mona Campus, two at the Open Campus, and eight from the St Augustine Campus. UWI Chancellor Sir George Alleyne will confer the degrees at UWI graduation exercises in October and November. One of the honorary graduands will address the audience at each of the ceremonies. The Open Campus will be the first of the four campuses to host its graduation ceremony on October 10. At the Cave Hill Campus, the ceremony is scheduled to take place on October 17, followed by the St Augustine Campus ceremonies from October 22 to 24, and the Mona Campus graduation ceremonies from October 30-31. ¤ OECSBusinessFocus Aug / Oct

nvesTT has been ranked among the best investment promotion agencies in the world and was one of the winners of Site Selection Magazine’s Best to Invest Top Agencies Award for 2015.

The Best Investment Attraction Agency Latin America and Caribbean National Award recognised the agency as a top national IPA for the region among other awardees such as Invest in Bogota, Panama Pacifico and Costa Rican Investment Promotion Agency (CINDE). “This is a significant achievement for Trinidad and Tobago and for us,” said InvesTT President Racquel Moses. “It acknowledges the agency’s dedication to providing an excellent and world class standard of service. We strive to be the best in all that we do therefore it’s an honour when the hard work of the team has been recognised.” The agency sources foreign and local investors for T&T and provides all of the location and industry specific information to site selectors, as well as investors to allow them to make a positive decision. The Best to Invest Top Agencies Award is the third demonstration of international recognition for InvesTT in fiscal 2014/2015 and follows eight months after receipt of the prestigious Unctad Investment Promotion Award for Excellence in Promoting FDI for Sustainable Development. InvesTT was also ranked within the top 20 per cent of best IPAs in the world by the GIPB/World Bank Report in 2014. Site Selection Magazine is an award-winning publication by Conway Data and is the official publication of the Industrial Asset Management Council (IAMC) and The FDI Association. The magazine dates back to 1883 and has an audited circulation of 49,000 corporate decision-makers. ¤ www.oecsbusinessfocus.com

is P&G’s Regional Distributor of the Year

At the P&G Awards Ceremony in Port-of-Spain, Trinidad. The Massy Distribution Team with P & G Executives.

assy Distribution, a subsidiary of the Massy Group and the largest distribution company in Trinidad & Tobago and branches in several Caribbean islands, was recently named Distributor of the Year for the Latin America & the Caribbean Development Markets by international manufacturing giant Procter & Gamble Company (P&G). The prestigious award was given to Massy Distribution at the annual Distributors Owners Leadership Forum (DOLF), which P&G hosted for the first time in Port of Spain, Trinidad, at the Hyatt Regency over a two-day period. Regional executives and experts attended the conference in Port-of-Spain where Massy Distribution was recognised, after competing against 19 other distributors from 17 countries within the Latin American and Caribbean region for the coveted award. “Massy Distribution is very pleased to have been recognised by P&G as its 2015 Regional Distributor. “The company is committed to our customers and our goal has always been to provide them with a wide range of quality products and services,” said Jean-Marc Mouttet, Commercial Director, Massy Distribution. Massy Distribution is one of the local distributors for the P&G range of products, distributing a wide range of long-standing and notable brands inclusive of Gillette, Old Spice, Olay, Secret, Duracell, Bounty, Pampers, Charmin, Puffs, Ivory and Safeguard. ¤ OECSBusinessFocus Aug / Oct

ANGUILLA

Anguilla Elects New Government

Hon. Victor Banks

nguilla now has a new government, following a landslide election win by the Opposition Anguilla United Front.

The AUF won in six of seven constituencies with Independent candidate Palmavon J Webster being declared the winner in Island Harbour, according to official election results released by the Anguilla Elections Office. Hon. Victor Banks as Leader of the AUF was declared the island’s next Chief Minister. Banks won the single most votes of any candidate contesting the election, with a total of 1,057 votes in the Valley South constituency. In a statement the AUF thanked followers for their “love and support on this journey. We are so proud to represent you the people of Anguilla,” it said. “We have a lot of work to do to bring Anguilla back, but we are committed to leading with love and keeping Anguillians here and abroad #1 in our hearts.” ¤

OECSBusinessFocus Aug / Oct

Provides Additional Airlift for Anguilla

hether it is for shopping, business, medical services, or other scheduled travel opportunities, Seaborne Airlines is now providing additional airlift – between Anguilla and Puerto Rico – using a 34-seat aircraft, and it is viewed as a welcome service. The scheduled flights are Thursdays, Saturdays and Sundays and the first passenger flight into the Clayton Lloyd International Airport was on Saturday, May 2.

Agreement was reached several months ago for the airline to add Anguilla to its scheduled flights to a number of Caribbean destinations from the San Juan hub. Despite the fact that other smaller airlines have been travelling the Puerto Rico/Anguilla route, for some time now, the addition of Seaborne Airlines is seen as providing the first major scheduled service to Anguilla since the withdrawal of American Eagle from the region. American Eagle provided daily flights to Anguilla, and although Seaborne’s service is only three days a week, it is regarded to be of much assistance – not just to the regular travelling public, but also to tourists from mainland America with hotel bookings on the island. Anguilla’s Director of Tourism, Mrs. Candis Niles, has welcomed the service being provided by Seaborne Airlines. According to her, the flights to Anguilla will continue until the middle of August when there will be a brief hiatus pending the start of the new tourism season, when the service will be resumed. With the addition of Anguilla, Seaborne is serving sixteen destinations throughout the Caribbean. ¤

Anguilla Community College Signs Contract With Canada’s Marine Institute

Signing of agreement by Mr. Kevin Clarke and Mrs. Chanelle Petty Barrett

he Anguilla Community College (ACC) in fulfilling its desire to make the college relevant to the Anguillian community and is partnering with the Fishing

and Marine Institute of the Memorial University of Newfoundland, Canada. An agreement to that effect was signed on Wednesday 3 May 2015 in Anguilla. The Marine Institute will provide consultancy services with regard to institutional strengthening, the main thrust of which will be the development of an ‘Operational Master Plan’. The Marine Institute provides more than 20 industry driven programmes ranging from technical certificates to Master degrees. It was felt that the Marine Institute was Canada’s most comprehensive centre for education, training, applied research, industry and support for the ocean. Mrs Chanelle Petty Barrett, Permanent Secretary in the Ministry of Education and Leader of the Project Steering Committee, signed on behalf of the Community College. She commented that the Master Plan would provide the sort of institutional framework that was necessary to advance the work of the college. The agreement was also signed by Mr Kevin Clarke on behalf of the Marine Institute. ¤

www.oecsbusinessfocus.com

OECSBusinessFocus Aug / Oct

ANTIGUA

Sunwing Travel Group to Develop $400 Million Royalton Luxury Resort in Antigua

More Caribbean Governments Should Invest in Liat

he government of Antigua and Barbuda has announced another multi-million dollar partnership with the Sunwing Travel Group.

The 500-room all-inclusive resort under the award winning Royalton Luxury Resorts brand will occupy the famed white sands of Deep Bay, Antigua. Construction will commence this summer on the resort and spa, as well as a residential complex with over 200 condominium units. Slated to open in 2017, this $400 million development is expected to represent 2,000 new jobs for Antigua and a massive injection to the economy in the form of incremental tourist dollars. “We are very pleased with this new partnership and what it means for the people of Antigua,” said Gaston Browne, Prime Minister of Antigua and Barbuda, adding that “Tourism is vital to our economy and this partnership secures significant growth in revenue and jobs for the years to come.” Sunwing Travel Group, North America’s largest vertically integrated travel company, will also be using its subsidiary Sunwing Airlines to add new flights from key source markets, which are expected to represent 30,000 incremental visitors to the island in the first year of operation.    Nexus Tours, the group’s full service destination management company, will also support this tourism revitalization through the promotion and sale of local excursions and attractions. Sales for the Island’s newest tourism product will greatly benefit from the strength of the Sunwing Travel Group’s distribution arm, which includes reputable brands such as Sunwing Vacations, Signature Vacations, Vacation Express, SellOffVacations.com, and Luxe Destination Weddings.  “The island of Antigua has an incredible amount to offer and is an ideal location for a Royalton Luxury Resort. Prime Minister Gaston Browne and his administration understand the needs of the modern traveller and have shown great vision and initiative to create the right conditions for investment,” said Stephen Hunter, President and CEO of the Sunwing Travel Group.    Both parties signed off on the project at an official event hosted by Special Economic Envoy to Antigua and Barbuda, Robert De Niro. The event, which was held at the prestigious 21 Club in Manhattan, New York, was attended by Browne, Asot Michael, Minister of Tourism, Economic Development, Investment and Energy and over 150 travel agents, media and special invited guests. ¤

OECSBusinessFocus Aug / Oct

incentian Prime Minister Ralph Gonsalves and Antigua and Barbuda’s Prime Minister Gaston Brown have urged Caribbean governments that are not major shareholders of regional airline LIAT to change that status by giving meaningful financial support to the airline. Both made that appeal at the recent CDB sponsored seminar on making air transport work better for the Caribbean. Gonsalves spoke in his capacity as Chairman of the group of shareholder governments of LIAT. Browne said, while LIAT must seek to improve its operations, the airline needs to be subsidized, arguing that LIAT is making a significant contribution to the integration process and should be supported by the governments of the region. It’s not clear what the position of the new Team Unity administration in St Kitts and Nevis on LIAT will be. Former Prime Minister Denzil Douglas said his government had in its last six months in office been taking a critical look at the LIAT problem. Douglas said under consideration was the use of the Sugar Industry Diversification Fund (SIDF) funds to help Basseterre become a major shareholder of LIAT. A CDB commissioned study on the regional airline industry proposes the setting up a Caribbean Community (CARICOM) airlines association to identify opportunities to reduce cost, create greater synergies and earn more revenue. ¤ www.oecsbusinessfocus.com

CIP Could Make up 25 Percent of Government’s Revenue - says Prime Minister

Robert De Niro Helps Pitch Antigua and Barbuda as a Major Investment Location

Prime Minister Gaston Browne

he Citizenship by Investment Programme (CIP) could represent as much of 25 per cent of the country’s earnings this year, according to Antigua & Barbuda Prime Minister Gaston Browne. Browne made the remarks at an economic citizenship conference hosted by the regulatory risk mitigation company IPSA International, in St Kitts & Nevis. “By the end of this year, in Antigua & Barbuda, the CIP programme will contribute in the region of 25 per cent in total revenues, revenues that will go towards funding the various sectors of our country’s economies, revenues that will be used for health care, for education, for infrastructure development, to market tourism,” Browne said. “When I spoke about CIP being an export, the issue is what are we exporting, are we exporting passports? Of course not, we are exporting a service, a way of life,” he said. Meanwhile, St Kitts & Nevis Prime Minister Dr Timothy Harris promised to reform that country’s CIP programme. IPSA International completed a programme review of the St Kitts and Nevis Citizenship by Investment Programme in the fourth quarter of 2014. The organisation made 20 recommendations for improved governance, risk mitigation and compliance, all of which were accepted. These included the rollout of a case management tool to streamline the application management process within the Citizenship by Investment Unit (CIU); changes to the CIU’s organisational structure to enhance processing capabilities and mitigate risk; an improved risk assessment process; and a review of previously approved applicants.

R-L: Dr. Walton Alfonso Webson, PM Gaston Browne, Robert De Niro

obert De Niro is behind one of the region’s most anticipated new hotel projects on the island of Barbuda. In June at the annual Caribbean Week in New York, Robert De Niro continued his work as Antigua & Barbuda’s special economic envoy by organising a major dinner with potential investors at the 21 Club. The event brought together more than 75 investors, bankers and real estate firms, along with a large media delegation. The event included a focus on the country’s Citizenship by Investment Unit, which offers a path to citizenship following the meeting of a series of investment requirements. De Niro is behind a planned $250 million project in Barbuda at the former K Club project site. Last year, Antigua & Barbuda Prime Minister Gaston Browne announced that the resort would debut under the “Paradise Found” brand name. While De Niro is best known for his Oscarwinning film work, he has built a small hospitality empire in partnership with Chef Nobu Matsuhisa.

“Trust can be a scarce commodity, we may build and consolidate it with years of hard work only to lose it in an instance. When trust is squandered, regaining it can be difficult and lengthy. But the trust that attends this business has many components. As governments, it is incumbent on us to put in place the best regulatory frameworks to protect the system against abuse,” Dr Harris said.

“With such a positive turnout of influentials and executives, who left with an infectious feeling of excitement and positivity about Antigua & Barbuda, and everything we are doing to achieve our vision of becoming the economic powerhouse of the Easter Caribbean, we fully expect this energy to proliferate across all networks – from tourism to business to investments,” Tourism Minister Asot Michael said.

“In St Kitts and Nevis, the CIP programme is essential to his country’s future and represents roughly 30-plus per cent of our annual revenue. Essentially it is a pillar in the foundation of this country’s unique future and prosperity, however these programmes may rise and fall on a simple ideal called trust as we all well know,” Dr Harris said. The forum, hosted at the Ocean Terrace Inn, also attracted Dominica’s Ambassador-at-large Emmanuel Nanthan and other government and industry officials. ¤

De Niro is one of several Hollywood stars to get into the Caribbean tourism industry in recent years. Most recently, it was announced that Oscar-winner Leonardo Di Caprio would be launching a private island resort off the coast of Belize. ¤ Courtesy: Caribbean Journal

OECSBusinessFocus Aug / Oct

ANTIGUA

Antigua Government to End Rex Halcyon Lease

Property Being Sold to Sandals for Construction of a New 250 Room Hotel. overnment has announced plans to terminate the lease held by Rex Resorts for the Halcyon Cove Hotel, to make way for a new project within the next two months.

Minister of Tourism Asot Michael confirmed that, within 60 days, government will end the lease held by the Rex Resorts and will sell the Dickenson Bay property to Sandals Chairman Gordon “Butch” Stewart. “Negotiations have reached an advanced stage with Mr Stewart and we hope to close an agreement within the next 60 days or so,” he said.

Antigua Proceeds with Telecoms Bill and Liberalisation of Sector

Melford Nicholas

elecoms giant Digicel is calling on the Antigua & Barbuda Government to have a sixmonth implementation window for the new Telecommunications Bill.

In a statement, the company said it welcomed the Bill, but this would allow enough time for the Regulatory Committee to be established to oversee its compliance. “As the customer champion in Antigua & Barbuda, we are in full support of the new Bill which we believe is a great step towards further liberalisation, ensuring that the framework is in place for a well-regulated market – which will ultimately benefit customers across Antigua & Barbuda,” said Digicel Antigua & Barbuda CEO, Rob Mayo-Smith.

Minister Michael also acknowledged that government will have to compensate Rex Resorts for the time lost on the lease. The present resort, he added will most likely be demolished under the new deal with the Sandals and Beaches mogul.

The company said the legislation, being introduced by Telecommunications and Broadcasting Minister Melford Nicholas, will ensure that there is a level playing field for all service providers and increased competition. Digicel said this will result in more choice, better service and better value for customers.

“Butch Stewart is very interested in knocking down the entire hotel,” Michael said. “He’s proposing to build a 250-room Sandals hotel there with additional spas and amenities and restaurants similar to the Sandals Grande Resort down at Dickenson Bay.”

“The Minister is continuing the great work that was initiated by APUA, ensuring that Antigua’s legislation is kept current and on par with other Caribbean markets while at the same, tailored to the country’s best interests,” said Mayo-Smith.

The tourism minister said that resort will be built in addition to the Beaches Resort which Stewart plans to construct at Long Bay, starting in 2016. “He wants to do this immediately and then he wants to start the Beaches project, which will be 400 rooms.” ¤ OECSBusinessFocus Aug / Oct

“While we believe that customers across Antigua & Barbuda stand to gain significantly from the promise of full liberalisation and a well-regulated telecommunications sector, we’re also calling on the government to put in place a six-month implementation window and a Regulatory Committee to oversee compliance and ensure that customers are getting the full benefit of competition,” he added. ¤ www.oecsbusinessfocus.com

BRITISH VIRGIN ISLANDS

Ruling Party Convincingly BVI Featured At Prominent Overseas Trust Summits Re-elected in BVI

VI Finance partnered with and was showcased at two prominent events for the captive and trust sectors in Miami and Toronto. The Finance Centre participated in the 11th Annual Canadian Captives and Corporate Insurance Strategies Summit held in Toronto and the Society of Trust and Estate Practitioners (STEP) Miami Summit held in Miami.

Dr. D. Orlando Smith

he ruling National Democratic Party (NDP) was returned to office in the British Virgin Islands after winning the June 8, 2015 General Elections by a landslide, taking 11 of the 13 seats.

The NDP, headed by Premier Dr Orlando Smith, won seven of the nine district constituencies with the main opposition Virgin Islands Party (VIP) winning the remaining two seats. The VIP had come into the elections with four seats in the last Parliament. The NDP also took the four ‘at large’ seats, with Myron Vernel Walwyn (5,777 votes); Smith (5,753 votes); Ronnie Skelton (5,342 votes) and Archibald Christian (4,659 votes). A total of 42 candidates contested the elections for the 13 member House of Assembly.. VIP leader Julian Fraser, in his first election as party leader after taking over from 81-year-old former premier Ralph T O’Neal, who has now retired from active politics, won his district by a narrow margin of 596 to 561 over the NDP’s Kevin Smith. The other successful VIP candidate was Andrew Fahie. The new Cabinet will comprise Premier and Minister of Finance Dr The Honourable D. Orlando Smith, Minister for Health and Social Development Hon Ronnie W. Skelton, Minister for Communications and Works Hon Mark H. Vanterpool, Minister for Education Hon Myron V. Walwyn and Minister for Natural Resources and Labour Dr The Hon Kedrick D. Pickering. ¤

According to the Premier’s Office, the Canadian summit held in Toronto on May 26 and 27 captured an attendance of quality risk managers, brokers and corporate entities. It was designed to source practical strategies on risk mitigation and captive management in addition to identifying innovative ways to cut costs, transfer risks and manage premiums. The Summit provided sources for best practices and know-how through case studies, panels and interactive discussions. The aim was to get captives started or expand operations, show ways to tailor insurance product offerings, enhance captive procedures and learn from the pitfalls and successes of mature Alternative Risk Transfer (ART) structures. The objective was also to leverage the industry’s collective expertise to help attendees re-imagine their corporate insurance strategies for 2015 and the years to come. The British Virgin Islands shared a platform with Bermuda and Barbados to discuss domicile selection for the Canadian market, and highlighted similarities and differences between the top domiciles of choice for captives. The STEP Miami Summit held in Miami, Florida reviewed the latest issues concerning international private client planning, presented by the leading professionals in the area. Representatives also shared best practices among industry practitioners. Jonathan Bailey of Nerine and Lawrie Kearns of Ogier represented the BVI and delivered a presentation on VISTA trusts. O’Neal Webster representative and Chair of STEP BVI, Vanessa King also delivered remarks on behalf of the jurisdiction. As a sponsor of both Summits, BVI Finance displayed a branded booth furnished with reading materials, trinkets and giveaways and speaking opportunities at each event. BVI Finance (formerly the BVI International Finance Centre) is solely responsible for marketing and promoting the BVI financial services industry, which is carried out by a professional pool of individuals both locally and internationally. ¤ OECSBusinessFocus Aug / Oct

DOMINICA

PM Skeritt Announces Plans to Build Four Hotels

Dominica Predicts 2.4% Economic Growth in 2015

he Dominican Government has approved plans for the construction of four tourism-related projects to be financed by the sale of Dominican passports, Prime Minister Roosevelt Skerrit announced at a press conference in May 2015.

“We have about five projects before us for consideration; these are new projects outside of those that have been submitted to us by people who have existing projects and want to see how they can participate and benefit from the Citizenship by Investment Programmes,” Prime Minister Skerrit said. He said that four of the five projects have received some level of approval from the Government. These include the previously announced Range Development to be constructed in the Cabrits area by the Kempinski Group, internationallyrecognized promoters of luxury hotels. He added that instead of constructing a 131 room hotel the group may increase the number of rooms to 200. In addition, the Prime Minister revealed that another 200room hotel will be constructed in the Portsmouth area. The Silver Beach Hotel will also be financed by the Citizenship by Investment Programme. “The third one is a development on the West Coast of Dominica in the Salisbury area. That development is being done by a Dominica resident overseas who is involved in tourism development in other jurisdictions and who is bringing on board many years of success in the tourism industry,” he said. “The fourth one is a project in the heights of Soufriere; we will be dealing with the construction of villas, it is a project that we are particularly pleased about because that will certainly help in diversifying the economy of the Soufriere, Scott’s Head, Gallion area,” said Skerrit. “ We have had discussions with the developer and indicated to him that the project was too large and he has since done some alterations to his submission.” He mentioned that the project is now being reviewed by a technical committee that examines these projects before government gives its final approval. “Our view is that if we can get these projects going, we are talking about several additional hotel rooms in Dominica and one can appreciate the jobs by way of construction,” said Skerrit. ¤ OECSBusinessFocus Aug / Oct

ominica says it is anticipating a 2.4 per cent economic growth this year after the island recorded a 1.1 per cent increase last year.

Miriam Blanchard, the island’s alternate Governor to the Barbados-based Caribbean Development Bank (CDB), said, regarding the fiscal accounts, that the Roosevelt Skerrit Administration is committed to pursuing a primary surplus of at least 2.4 per cent of Gross Domestic Product (GDP) annually over the medium term. Blanchard was at the time addressing the 45th annual CDB Board of Governors Conference. She told the meeting that the Dominica Government remains committed to achieving high levels of economic growth. “We are satisfied that this is the means by which poverty and unemployment can best be addressed. Our growth objective is based on sound fiscal policies and administrative reform that will improve the environment for doing business and in so doing create an environment which will encourage domestic and foreign private investment. “ She said the Government’s target is to achieve growth rates of between five and seven per cent over the medium term. “The growth effort in the short to medium term will focus on four sectors, although not excluding investments in other supporting sectors. The four sectors are agriculture, tourism, energy and construction. The efforts at improving tourism infrastructure will contribute both to construction and tourism,” she added. Blanchard told the meeting that the Government is now engaged in negotiations for the construction of at least four new hotels, in addition to investments aimed at improving the tourism product, including site development and air access improvement. “We believe that these investments will improve the competitiveness of our destination,” she added. www.oecsbusinessfocus.com

In her report, the alternate Governor said that the development of geothermal energy is at the centre of the island’s efforts to have more of its electricity generated from renewable energy sources and reduce the cost of electricity overall. “We have made substantial progress and expect that in the near future we will have completed the negotiations for the construction of a small domestic geothermal plant. The small plant will provide energy domestically, and is a precursor to the construction of the export plant for shipment to Guadeloupe and Martinique.” She said growth in the construction sector is being facilitated through Government’s plans to enhance its capacity for the implementation of its capital programme, while at the same time establishing low-interest special mortgage facilities and special lines of credit at the Caribbean Development Bank. ¤

Dominica Planning Broadband Upgrade

ominica is planning a major broadband upgrade, according to Telecom Minister Kelvar Darroux. The plan is to make “reliable telephone acccess available throughout the islands,” Darroux said in a government release. “The issue of broadband access has always been a concern for us,” he said. “In Dominica, we still have our challenges. You will travel from Roseau to Portsmouth and if you’re using your phone, you’ realize that at several points, the call will drop. Why is that happening? Why is there no service?” There are different challenges in different areas of the island; Mero, for example, is below sea level, which makes receiving calls and using mobile data an issue because of broadband issues. But the plan is to change that, according to Darroux, who recently attended a meeting of regional Telecom Ministers in St Lucia. “This is so the consumers can have readily-available broadband service from which they can benefit,” he said. Darroux said the government had also asked ECTEL, the regulatory body for Dominica, Grenada, St Kitts and Nevis, Saint Lucia, St Vincent and the Grenadines, to discuss an amicable resolution as to how best to establish a level playing field for costs across the board — whether roaming charges or intercarrier rates.” “We have given ECTEL a mandate to meet with the service providers to further develop their infrastructure as it relates to broadband,” he said. ¤ Courtesy: Caribbean Journal OECSBusinessFocus Aug / Oct

GRENADA

EC$1.7M Grenada Airport Resurfacing Begins

Foreign Minister Clarice Modeste-Curwen explaining the project in China

Chinese Group to Develop New US2 Billion Grenada Resort Project

renada has confirmed a partnership with a Chinese Group for the construction of a new mega-project coming to the island.

The $2 billion USD project is called the Grenada Resort Complex Project, and it was officially launched in Shanghai, China recently with Chinese officials from the developers, the United Demi Group and the visiting Grenadian Foreign Minister Clarice Modeste-Curwen. The project plans to develop the Mt Hartman peninsula and Hog Island in Grenada. It will include high-end resorts, a wellness centre and other recreational and entertainment features, according to a statement from the Grenadian government. It is being developed by a Chinese company called United Demi Group, spearheaded by Grenada’s commercial attache at its Beijing embassy, Charles Liu. “Thank you for choosing Grenada. You have chosen to come to an island gem in the Caribbean with the most scenic spots and attractions, and with a people that exudes confidence, optimism and national pride accompanied by warmth and hospitality that you will never experience anywhere else,” Foreign Minister Clarice Modeste-Curwen told attendees at the launch ceremony. “I invite all of you here today to make an investment in what will be a partnership that will undoubtedly bring resounding benefits to you -the investor- as well as the citizens of Grenada, Carriacou and Petite Martinique,” she said. The project would be the latest major Chinese tourism project in the Caribbean, following Nassau’s Baha Mar and a recently-launched project in Antigua and Barbuda. During her visit to China, Minister Clarice Modeste-Curwen also met with Chinese officials to discuss the advancement of relations between the two countries. In Beijing, Minister Modeste-Curwen met with Assistant Foreign Minister Qian Hongshang to address matters of mutual interest, including the United Nations Security Council Reform, as well as the upgrade of Grenada’s Maurice Bishop International Airport. An improvement in travel conditions between the countries is of particular significance to China in light of the launch of its recent $2 billion (USD) Caribbean development venture, the recently-announced Grenada Resort Complex Project. In Shanghai – the local government also expressed interest in working with Grenada directly. ¤

OECSBusinessFocus Aug / Oct

fter 20 years the island’s lone airport is on the verge of a major resurfacing to its runway, at the estimated cost of EC $ 1.7 million.

Managing Director of Grenada Pavement Construction Company Limited Handell Budhlall, says the work involves the complete resurfacing of the 2400 x 53 feet runway and apron with cold mix asphalt. The work, which began on June 1st, should be completed in two (2) months. “It’s badly ravelled and has deteriorated as it’s almost 20 years since work was last done on the runway” said the experienced Engineer. There have been cases where tires of aircrafts blew while landing on the rugged airstrip. Several passengers have repeatedly complained about the dangerous state of the facility. Daily work will begin late in the evening following the departure of the day’s final flight. ¤ www.oecsbusinessfocus.com

Grenada Consulate Opens in Miami

Adrian Joseph (L) and Dr Angus Friday (R)

he Grenada Government has confirmed the recent opening of a Consular office in Miami Beach, Florida, where approximately 5,000 Grenadian expatriates reside.

At the official opening, Grenada’s Ambassador to the United States in Washington, DC, Dr Angus Friday, remarked that the opening of the new consulate “gives Grenada a warm feeling” with John Munroe, a Grenadian resident in Orlando, Florida indicating that the new consulate in Miami Beach was timely and long in coming. “We now have a place we can go and get our consular needs met,” he said.

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The newly appointed Grenadian Consul in South Florida, South African-born Warren Newfield, stated, “There is a very large expatriate Grenadian community in Florida and the government of Grenada wanted to ensure that their consular needs are catered for.”   This new Consulate in Miami Beach, Florida has generated a negative reaction from New York-based Grenadians, who have already been voicing frustration and dismay over the closure of the island’s consulate in New York.

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The New York group pointed out in response that the Grenadian community in New York consists of more than 100,000 Grenadians, more than 20 times larger than that in South Florida. They noted that Grenadian nationals in New York and the nearby states deserve to be able to access consular services in a similar manner to those in Florida. Their hope is that within the coming months, the government will agree to reopen the consulate in New York with a fully-fledged Consul General.   Grenada’s Ambassador to the United States in Washington, DC, Dr Angus Friday, was expected to address the issue at a town hall meeting in New York and it was likely that he will be pressed vigorously on the matter.  ¤

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OECSBusinessFocus Aug / Oct

MARTINIQUE

Martinique Wins Big At 2015 CTO Travel Media Awards

By Dana Niland

Cruise Growth

M By Dana Niland

artinique’s cruise passenger arrivals have increased 631 percent since 2010, and its efforts to strengthen the cruise sector continue to grow.

The Martinique Tourism Authority hosted a delegation of FloridaCaribbean Cruise Association (FCCA) officials at the end of May as the FCCA is working on a new study of cruise passenger behaviour and spending in Martinique.

rian Major, Travel Pulse and Muriel Wiltord, Director Americas Martinique Promotion Bureau (source: sflcn). Martinique was the big winner at this year’s Caribbean Tourism Organization (CTO) Travel Media Awards with journalists producing articles promoting travel to The Isle of Flowers earning five of the 10 top honours. Honoured journalists and their Martinique stories are as follows: Best Feature Article In A Consumer Magazine: Jad Davenport – Islands – Proof of Paradise (Martinique) Best Feature In A Consumer Newspaper: Baz Dreisinger – New York Times – On a Caribbean Rum Trail (Barbados/Jamaica/Martinique) Best Feature Article In A Trade Publication: Brian Major – Travel Pulse – History Lessons Live at Martinique’s La Savane des Esclaves (Martinique) Best Feature by a US or Caribbean Journalist that appeared in Foreign Media: Samantha Diaz – El Nueva Dia – Una Francia en el Caribe (Martinique) Best of the Best: Baz Dreisinger – New York Times – On a Caribbean Rum Trail (Barbados/Jamaica/Martinique) “These awards are a wonderful validation of the growing attractiveness of our tourism product within the U.S. and Caribbean markets, as well as the tremendous effort being put forth by our communications team who works so closely with the U.S. media to achieve such great results,” said Muriel Wiltord, Director Americas for the Martinique Promotion Bureau. “Our heartfelt congratulations go out to all of our journalist friends receiving awards, they indeed with brio, captured the essence of Martinique’s DNA. The 2015 CTO Travel Media Awards were presented at an exclusive awards luncheon co-sponsored by The New York Times and the Jamaica Tourist Board held June 4, 2015 at the Wyndham New Yorker Hotel in New York City during the 2015 Caribbean Week. Awards were presented in 10 categories recognizing outstanding coverage of the Caribbean region. Winners were selected from among 125 entries by a panel of media and public relations experts led by chief judge, Yuriy Boykiv, CEO of Findr Group, a leading group of advertising and communications agencies. ¤

OECSBusinessFocus Aug / Oct

Martinique’s Continued

So far, findings have indicated that the average cruise passenger spends about $70 per port call, a significant figure considering ships with over 4,000 passengers frequent Martinique. “While the cruising industry in the Caribbean is facing increasing competition, Martinique is registering the fastest and most important increase in the world as a cruise destination,” said FCCA President Michele Paige. Martinique’s cruise sector is showing no sign of slowing down in the upcoming year and the Martinique Tourism Authority projects a 31 percent increase in passenger arrivals over the previous year. “Cruising has certainly been on the rise in Martinique in recent years, but we’re not resting on our laurels,” said Muriel Wiltord, Director of Americas for the Martinique Promotion Bureau. Wiltord also pointed to continued improvements and new features for Fort-de-France and the Pointe Simon port area, including a new 94-room hotel and new retail shops. ¤

Martinique Set for Major Boost in US Airlift

artinique is about to get a major boost in airlift from the United States.

After decades without direct flights from the continental US, the French Caribbean island will soon see a significant jump in service thanks to American Airlines. As of June 4, American Airlines began operating four weekly flights from Miami to Martinique. The nonstop flights will operate Fridays, Saturdays, Sundays and Mondays. Effective July 2, American Airlines will increase that number to six weekly flights between Miami and Fort de France. The island already receives service from Puerto Rico via Seaborne Airlines thrice weekly. The new service could be a boon for a Caribbean destination that has until recent years been largely off the radar for US travellers. In January, Caribbean Journal named Martinique the region’s number one must-visit destination for 2015. ¤ www.oecsbusinessfocus.com

MONTSERRAT

Travellers looking forward to the Reduction of Sea Departure Tax

ravellers on island are still awaiting the promised 50 percent reduction in Sea Departure tax between Antigua/Barbuda and Montserrat.

An Antigua Cabinet decision has for weeks now indicated that a decision was taken on the reduction but it has not cascaded down for implementation to take place. On Montserrat, it’s been reported that the Hon. Premier Donaldson Romeo has been receiving complaints from travellers who are not benefiting from the promised reduced rate as per the Antigua/Barbuda Cabinet decision. At present, the Office of the Premier is seeking further clarification and information from the government of Antigua/ Barbuda on the scheduled implementation date for the Cabinet Decision. Presently, travellers who spend more than 24 hours in Antigua are required to pay $75 dollars departure tax when traveling by ferry to Montserrat. ¤

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ST KITTS - NEVIS

St Kitts & Nevis Leads the Region with FDI per Capita

hat’s the Caribbean’s foreign investment capital? To put it another way, which Caribbean country brings in the most foreign investment? We took a look at the most recent Foreign Direct Investment report from the United Nations Economic Commission for Latin America and the Caribbean (ECLAC). But the raw numbers don’t tell much of a story. So in order to better evaluate the ability of each country to bring in foreign investment, we looked at foreign direct investment inflows in relation to population and created a new metric FDI per Capita: that is — how much FDI does each Caribbean country bring in per capita? The answers led to a very different ranking, with St Kitts and Nevis at the top. The Caribbean’s smallest sovereign country brought in $120 million in FDI last year, or about $2,214 per citizen. That was followed by Antigua and Barbuda, which brought in $167 million last year and about $1,855 per citizen. The lowest FDI/capita countries were the Dominican Republic, at $212.40 per citizen, Haiti, with $9.59 per citizen and Suriname, $7.42 per citizen. See the full table below (population is based on 2013 estimates). ¤

Venezuelan Delegation Explores Use Of Renewable Energy In Nevis High Schools

n eight-member delegation led by resident Venezuelan Ambassador to St. Kitts and Nevis His Excellency Ròmulo Henriquez Gonzàlez visited Nevis to explore the possibility of installing solar panels and energy saving bulbs at the Charlestown and Gingerland Secondary Schools. The team also met and held discussions with Acting Premier of Nevis Hon. Mark Brantley and Minister responsible for Renewable Energy Hon. Alexis Jeffers at the Cabinet Room, Bath Hotel. Following the meeting, Mr. Jeffers thanked the Ambassador and his delegation for the initiative and said the Nevis Island Administration looked forward to any assistance that could advance and benefit the people of Nevis and St. Kitts and Nevis. General Manager POV St. Kitts Nevis Ltd. Maria Andreina Colmenores who was a part of the visiting delegation, told the Department of Information that the Federation of St. Kitts and Nevis, for the past 10 years, was one of 18 countries in Central America and the Caribbean, who are signatories to Venezuela’s Petro Caribe Agreement. She noted that the Agreement went beyond the provision of oil supplies and encompassed cultural and social programmes. Colmenores explained that they were in the process of transferring the technology and knowledge in the area of renewable energy. “In the case of Nevis we propose to use some schools as a pilot project to install some solar panels or windmills in order to reduce the cost of electricity and to start changing our energy matrix to renewable and clean energy. “We came with the president of the subsidiary POVSA. It’s an oil company. It is owned by Venezuela and they have a subsidiary that builds light bulbs and solar panels for renewable energy. The president of the company came here to do a presentation to both governments in St. Kitts and in Nevis to try to help the country to reduce costs by working together,” she said. Also present at the meeting was Acting General Manager of the Nevis Electricity Company Ltd. Jervan Swanston. The group was accompanied to the schools by Permanent Secretary in the Ministry of Education Mr. Wakely Daniel. ¤

OECSBusinessFocus Aug / Oct

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Phase One of Tradewinds 2015 Concludes in St. Kitts

Byron urged the security forces to remain one step ahead of those who would wish to commit crime in the region. “In light of our present security challenges, we need the support of our security agencies, overseas counterparts, the Southern Command of the US Armed Forces to be one step ahead of illicit traffickers. “It is therefore of utmost importance that law enforcement and other security agencies seek to stay ahead and on top of the security challenges and strive relentlessly to practice and perfect their operational skills.” The Ceremony also featured a parade, where Acting Governor-General His Excellency Tapley Seaton QC took the salute at the march past of the participating security forces. ¤

Human Trafficing

Nevis and the Nature Conservancy Discuss the Environment and Marine Resources

FTER 10 days of intense training, the curtains came down on the Maritime Phase of this year’s Exercise Tradewinds with all participating countries on show and receiving plaques for their participation. The Closing Ceremony took place at the Kim Collins Athletic Stadium and included a military parade. Speaking at the Closing Ceremony, Co-Director of Tradewinds 2015 Major Anthony Comrie gave an overview of what the programme entailed. “The Exercise, now in its 31st year, aims to assist Caribbean nations to better able to counter land and maritime security threats such as human smuggling, trafficking in illegal weapons and ammunition. “It also prepares nations of the region to effectively carry out human assistance and disaster relief activity if and when the situation arises.” He also indicated that there were more than 500 military personnel from 18 countries who graced the shores of St. Kitts and Nevis. “Apart from training, Tradewinds provided an excellent opportunity for security and disaster response officials to come together, share ideas, to adopt best practices, to build comradery between civilian and military.” Commander of United States Southern Command John F. Kelly highlighted the strides made by Tradewinds during this year’s activities. “This year’s Tradewinds is built as they all do on last year’s successes in dividing this year’s exercise into two distinct operational Phases. Phase One right here in beautiful St. Kitts and Phase Two which will commence in a week’s time in Belize. “Phase One provided a dedicated venue that focused on synchronising disaster response and countering organised criminal organisations.” In delivering the feature address, Attorney-General and Minister of Legal Affairs, Senator the Hon. Vincent Byron Jr. indicated that the Closing Ceremony was for reflecting on what was imparted during the exercise. “Today is a day of reflecting on what you have accomplished; a day on which you ponder on how you can build on your accomplishments so that collectively the region can face the future with confidence.”

team from The Nature Conservancy visited Nevis in June to discuss environmental issues affecting St Kitts and Nevis.

The delegation met with Nevis Premier Vance Amory and a cohort of Permanent Secretaries, with whom they chiefly addressed the topics of management of The Narrows and marine boundaries around the islands. “The impact of the discussions held could have far-reaching consequences and importance because of the steps being taken to manage resources,” Amory said. Amory also took the opportunity to urge the people to take a serious look at the issue of climate change and its consequences. Country Coordinator Janice Hodge has already begun an awareness campaign to educate fishers and others in the community about protecting the marine environment. Hodge said The Nature Conservancy was working to ensure that marine resources are used in a sustainable way and that all stakeholders would be able to enjoy the benefits for generations to come. Nature Conservancy Program Director for the Eastern Caribbean Ruth Blyther noted the importance of taking care of the marine environment, which, she said, “provides much to the people of St Kitts and Nevis in their daily lives through tourism, food, and its contribution to the island’s beauty. Therefore taking care of that resource is part of what the Conservancy wants to do in St Kitts and Nevis.” ¤ OECSBusinessFocus Aug / Oct

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SAINT LUCIA

Among the austerity measures implemented by the Mitchell-led Government in St. George’s is a doubling of the Property Tax, a wage freeze over a three-year period for civil servants, lowering of the income tax threshold to bring more people in the net, as well as huge increases in user fees charged by the State.

St. Lucia Government Rejects IMF Programme

t. Lucia Prime Minister, Dr. Kenny Anthony has defended his decision not to follow into the footsteps of some regional governments and not taking his island into a programme of austerity measures with the Washington-based International Monetary Fund (IMF).

A senior Government Minister in the St. Lucia Parliament stressed that it was a collective decision of the Cabinet of Ministers in agreeing with their Prime Minister not to take St Lucia into an IMF programme which would result in the people of St. Lucia having to experience severe pain and hardship. ¤

Bidding Begins for Saint Lucia’s Hewanorra Airport Redevelopment

He made the statement while wrapping up debate in the St. Lucian Parliament on the 2015-2016 Appropriation Bill in the face of criticisms from members of the Opposition who claimed that those countries that are under an IMF programme are seeing economic growth. During her presentation, Opposition Leader Dr. Gale Rigobert accused Dr. Anthony who is also the country’s Minister of Finance of being responsible for another period of economic contraction. The St. Lucia budget indicated that the Gross Domestic Product (GDP) contracted by an estimated 0.7% or negative growth of minus 2.7%. The Members of the Opposition told the House of Representatives that the ruling St. Lucia Labour Party (SLP) Government should introduce revenue measures to deal with the severe fiscal situation on the island. Mention was made of St. Vincent and the Grenadines, Dominica, St. Kitts/Nevis and Grenada experiencing a little growth in their economy while St. Lucia continues to register negative growth. In response, Dr. Anthony said the people of St. Lucia must be told the truth about Grenada which is now locked into an IMF Agreement. The St. Lucia Prime Minister found nothing pleasing about the IMF program that Grenada is currently grappling with under the Keith Mitchell-led Government. “It is the most draconian agreement the Grenada has ever implemented, and all the things we take for granted in St. Lucia, in Grenada they don’t exist because of that agreement,” he told St. Lucian legislators. “I am proud, I am happy that I did not take Saint Lucia to the IMF,” he said. According to Dr. Anthony, he was advised that the only way the economic problems of St. Lucia could be dealt with was to go to the IMF, but he opted not to go that route.

OECSBusinessFocus Aug / Oct

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he bidding process for St Lucia’s Hewanorra Airport redevelopment project was slated to begin in June 2015, according to the International Finance Corporation.

The project will be undertaken through a public-private partnership, according to the St Lucia Government. The project will include “infrastructural and operational improvements that will facilitate an expected increase in passenger arrivals and aircraft landings,” the Government said in a release. A 30-year plan has been developed for the airport, with help from the IFC. “The IFC has advised that the bidding process will commence in May and should conclude with the awarding of a contract by October 2015,” Prime Minister Dr Kenny Anthony said. “In line with the master plan, the St Lucia Air & Sea Ports Authority (SLASPA) will commence a program of initiatives as early as June 2015 that will signal the start of the redevelopment of the airport, but equally seeks to address capacity concerns and safety considerations.” Among the project’s features will be a realignment and extension of the airport’s runway turning bay, the construction of a new technical tower and an additional parking apron. ¤ Courtesy: Caribbean Journal www.oecsbusinessfocus.com

Energy Minister Confident Climate Change Partnership will Benefit Saint Lucia

“

Saint Lucia Opens Embassy in Taiwan

Dr. James Fletcher

The Government of Saint Lucia welcomes the partnership of Clinton Climate Initiative and Rocky Mountain Institute-Carbon War Room.” So said Dr. James Fletcher, the island’s Minister of Public Service, Sustainable Development, Energy, Science and Technology.

The Minister was quoted, on the heels of a special meeting announcing the new Clinton Foundation Climate Change Initiatives for Small Island States in the Caribbean and around the world. He said, “Both organizations have provided meaningful contributions to our country’s energy transition. We are confident their partnership will further accelerate our efforts and the efforts of other island-governments towards a prosperous energy future.” The Saint Lucia Minister had reason to offer thanks and praise. The Clinton Climate Initiative (CCI) -- an initiative of the Clinton Foundation -- recently announced its official partnership with the Rocky Mountain Institute (RMI) and the Carbon War Room (CWR) to promote a transition to renewable energy and energyefficiency solutions in the Caribbean region. The partnership combines the work of the non-profit organization’s complementary initiatives: the Resilient Communities Program of the Clinton Climate Initiative and the joint Ten-Island Challenge of the Rocky Mountain Institute and the Carbon War Room. Over the past two years, CCI has prepared over 20 renewable energy projects across nine countries (including Saint Lucia), facilitating the groundbreaking of the 24-megawatt Wigton Wind Farm in Jamaica and working with the UN Development Programme to establish a 1.3-megawatt solar rebate program in the Seychelles. Rocky Mountain Institute and Carbon War Room’s Ten Island Challenge currently includes: Aruba, the Bahamas, Colombia (Providencia and San Andrés islands), Grenada, Saint Lucia and the Turks & Caicos Islands, with four more countries expected to join the Ten Island Challenge later this year. Over the past year, Rocky Mountain Institute and Carbon War Room have developed a Caribbean-specific, comprehensive hospital-retrofit guide and corresponding web tool; launched a request for qualifications for a waste-to-energy plant in Saint Lucia; and launched a request for proposals to deploy solarpowered, off-grid, LED street lights in Providencia and San Andrés. ¤

Prime Minister Dr Kenny Anthony (left) and Taiwan’s Foreign Minister David Lin

wo new ambassadors from the R.O.C’s diplomatic allies in the Central America and Caribbean region will soon be posted to Taiwan, a Ministry of Foreign Affairs (MOFA) official said recently.

Yeh De-guey , a counselor from MOFA’s Department of Latin American and Caribbean Affairs, said that the new Guatemala and Saint Lucia ambassadors to the R.O.C. had both been appointed recently by the two ally governments, respectively. The Guatemala government has informed its Taiwanese counterpart of its choice for its new ambassador. MOFA has sent the applicant to the Presidential Office so that the President can confirm the appointment, he noted. The final announcement of who the new ambassador is and when the ambassador will arrive in Taiwan to assume official duties will have to be announced by the Guatemala government, Yeh added. Yeh noted that the Saint Lucian government has also decided who will be the ally’s ambassador to Taiwan. However, the appointment will have to undergo internal procedures within his or her own government including going through an upcoming cabinet meeting before finalization, Yeh said. The new Guatemala ambassador is to fill the vacancy of ex envoy Arturo Duarte, who left Taiwan recently to take up the top envoy post for his country to Mexico after finishing his three-year tenure in Taiwan. Meanwhile, the Saint Lucian ambassador will be the first ambassador the ally has sent to Taiwan since the country recently opened its embassy in the R.O.C. The Caribbean nation opened its embassy in Taiwan on June 4 in a concrete move to show strong bilateral ties, making the R.O.C. the first country in Asia in which Saint Lucia has established an embassy. Saint Lucia first established diplomatic ties with Taiwan in 1984, but switched recognition to China in 1997. In 2007, after 10 years of relations with Beijing, the then-ruling United Workers Party government renewed ties with Taipei after coming into office. ¤ OECSBusinessFocus Aug / Oct

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ST VINCENT & THE GRENADINES

Japan Gives US$2 Million to St Vincent

apan has given the ST. Vincent and the Grenadines (SVG) approximately US$2 million under Tokyo’s “Non-Project Grant Aid for Provision of SMEs Products”.

Japan’s State Minister for Foreign Affairs Yasuhide Nakayama and his Vincentian counterpart, Sen. Camillo Gonsalves, signed the agreement in St. Lucia recently. The grant will be used for procurement of unique, efficient and user-friendly technologies of Japan SMEs. The products available under the grant are intended to meet the developmental goals of SVG in several sectors such as the environment, health and agriculture to respond to economic and social needs and other critical issues that affect small island developing states. “The way the programme works, essentially, is that we sign an agreement, Japan is giving us two million dollars, the two million dollars is for the purchase of Japanese products that we will use in St Vincent and the Grenadine for various national development projects,” Gonsalves told the media. “So, if we wanted to, for example, build a computer lab, out of this project, we will use the money but we will buy Japanese computer, Japanese equipment, we purchase it in Japan, it will be shipped here to St. Vincent and the Grenadines and we would build the project in that way. “It is not that they are writing us a cheque. The deal is that we will use the money to purchase Japanese products from Japanese enterprises and use them in St. Vincent and the Grenadines,” he said. Gonsalves said the government is trying to programme the money for a number of small projects of about US$100, 000 each to maximize the scope and reach. Some schools have applied to improve their computer labs and library, some state enterprises have applied for technological upgrades, and there have been applications for recreational facilities,” he said. “And those various applications are being evaluated and we are very grateful to the government and people of Japan for this initial two million dollar grant and they have informed us this is a grant that can be renewed in years to come,” Gonsalves told the media. ¤ OECSBusinessFocus Aug / Oct

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ECLAC Coordinates Disaster Training in St Vincent

aint Vincent and the Grenadines (SVG) is the first of seven Caribbean countries to receive training on Post Disaster Needs Assessment from the Economic Commission for Latin America and the Caribbean (ECLAC) subregional headquarters for the Caribbean.

The training took place from 22nd to 25th June 2015, and brought together expertise of the Damage and Loss Assessment (DaLA) methodology of ECLAC Caribbean and the United Nations Development Programme (UNDP) of Trinidad and Tobago. Other countries to soon benefit from these training sessions are Antigua and Barbuda, Barbados, Dominica, Grenada, Saint Kitts and Nevis, and Saint Lucia. As a result of this training, officials from SVG’s infrastructure, energy, transport, and water and sanitation sectors will in future be better equipped to understand the macroeconomic impacts of natural disasters. Caribbean countries suffer repeated losses from natural hazards almost on an annual basis, in the form of flash floods, wind storms and landslides. In addition, Caribbean islands are also vulnerable to earthquakes and volcanic eruptions, which have severely impacted the region over the past two centuries and certainly in the past two decades. While countries have made substantial progress in strengthening their capacities in disaster management, for example in early warning, preparedness and response, there has been less progress in assessing the full costs of hazard impacts and the cost-benefit of disaster risk reduction strategies. The ECLAC/UNDP partnership will enable ECLAC to explain the scope and benefit of the DaLA methodology to more countries in the Caribbean, thus reaching a larger number of institutional representatives. ¤

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MAJOR MOVES Commission Gale Jean Baptiste – Head of Human Resource OECS Commission Gale Jean-Baptiste is a strategic, commercially driven, senior Human Resource (HR) leader. During her 20 year career in HR, she has held several leadership positions within global organisations such as Yahoo! and British Petroleum, as well as several small to medium size businesses. She has a reputation for developing and managing high performing HR teams across Europe, the Middle East and the Americas and has spearheaded major HR initiatives driving significant change within multi-faceted corporations. Passionate about HR, Gale believes the success of any Organisation is dependent on the ability, skill and passion of its Leaders. With that in mind, she focuses on executive coaching and leadership development to transition Leadership Teams from delivering good results to delivering exceptional results. Gale obtained a fellowship to the Chartered Institute of Personnel Development in 2005 and holds a Post Grad in Human Resources. ¤

Donald Austin appointed as new CEO of Sagicor Life ( Eastern Caribbean), Mr. Donald Austin was appointed Chief Executive Officer, Sagicor Life (Eastern Caribbean) effective March 1st, 2015. Prior to this, Donald held several senior management roles with regional

responsibility throughout his career. These have included Executive Vice President – Government, Legal & Regulatory Affairs and Corporate Communications at LIME and President of Cable and Wireless Barbados. He is a former Chairman of the Board of Directors of LIME Grenada and LIME Dominica and a current Board Member of LIME Barbados, Sagicor Funds Incorporated and Sagicor Asset Management Inc. Donald holds a Bachelor of Science (Honours) in Electronic Engineering from the University of Bristol and a Master of Business Administration from Manchester Business School. He is also a Fellow of the Association of Chartered Certified Accountants. ¤

Wayne Hull is the new St. Vincent and the Grenadines Country Manager of FLOW. Hull, a Certified Accountant (ACCA), was previously FLOW’s Finance Manager and Senior Financial Analyst Operations and Control in the Southern Cluster. His portfolio included managerial responsibility for all aspects of finance, financial planning and reporting, corporate governance, as well as serving as financial controller for all Southern Cluster markets. During his extensive tenure at FLOW, Hull also had the opportunity to act as Country Manager, St. Vincent and the Grenadines. Prior to joining FLOW, Wayne worked with KPMG, one of the world’s largest professional services companies. A release from FLOW expressed confidence that Hull will continue to play an important role, as the Company further cements its position as a leading telecommunications company across the Caribbean and Latin America. ¤

Murielle Lesales Cooperation Officer, Representing Martinique to the OECS & OECS Commissioner, Martinique She was appointed by President Serge Letchimy as the OECS Commissioner for Martinique, with a mission which entails various responsibilities including the facilitation and promotion of bilateral and multilateral productive relations between Martinique and other OECS Member States, the coherence of Martinique’s action and contribution within the various organs of the Organisation, the representation and protection of the interest of Martinique within the Organisation, the representation of OECS and advocacy of behalf of the Organisation in Martinique, and following up on the commitments made by Martinique in the various Organs and institutions of the Organisation. ¤

Marriott International, Inc. has named Tim Sheldon as President of its Caribbean & Latin America (CALA) region. Currently the company’s Global Chief Operations Officer, Sheldon began his new role in June. Sheldon will capitalize on the company’s rapid regional expansion to drive operational excellence in partnership with the company’s owners and franchisees. “We look forward to even more exciting growth in the Caribbean and Latin America,” said Arne Sorenson, Marriott International’s president and chief executive officer. “Tim’s brand expertise and proven track record of success in building strong operating organizations will help leverage our rapid expansion in the region into increasingly strong performance.” ¤ OECSBusinessFocus Aug / Oct

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OECS events 2015 Commission SEPTEMBER: Video Conference Meeting of the Council of Ministers Tourism Councils Of Ministers comprise Ministers from each Member state who hold the specific portfolios in the Member States. The Councils of Ministers meet at least once a year by a face-to-face meeting and may meet at other times via video facility. As per the Revised Treaty of Basseterre, the OECS Council of Ministers include: Education, Tourism, Human and Social Development, Environment, Agriculture, Trade, Health and Foreign Affairs. The mandate of these Councils is to develop and implement the regional mandate for supporting regional integration. 2nd Meeting of the Council of Ministers: Environment (Antigua)

OCTOBER: 3rd Sitting of the OECS Assembly (Antigua) The Assembly comprises members of Parliament from each Member State. Both Government and Opposition are represented in the same proportion as in their national Parliament in a count of five (5) if the Member State has a Parliament or three (3) if the Member State has a Legislative Council. The Head of Government and Leader of the Parliamentary Opposition are part of the delegation of (5) or (3) in the delegation of the Member State to the Assembly. There is a Speaker, Deputy Speaker and a Clerk assigned to the OECS Assembly. 20th Meeting of the OECS Commission (Saint Lucia) The Commission is made up of the Director General and a person of Ambassadorial rank representing the Commission from each Member State. The work of the Commission is to facilitate the decisions of the Authority in each member state. 2nd Meeting of the Council of Ministers: Education (TBD) 2nd Meeting of the Council of Ministers: Agriculture (Saint Lucia) Video Conference Meeting of the Council of Ministers: Trade 2nd Meeting of Heads of OECS Institutions (Saint Lucia) The Eastern Caribbean Central Bank (ECCB), the Eastern Caribbean Supreme Court (ECSC), the Eastern Caribbean Civil Aviation Authority (ECCAA) and the Eastern Caribbean Telecommunications Authority (ECTEL) are Institutions of the OECS.

NOVEMBER: 62nd Meeting of the OECS Authority: November 18-19, 2015 The Authority is made up of Heads of Government of each Member State, who are Prime Ministers, Premiers in the cases of Montserrat and the British Virgin Islands, Chief Ministers in the case of Anguilla or President as in the case of Martinique. The Authority meets regularly twice a year in a face-to-face meeting to give guidance and make decisions on matters pertaining to the establishment of a Single Economic and Financial space in which citizens of the OECS can move, work and trade in goods and services without unfair restrictions. 3rd Meeting of the Economic Affairs Council (TBD) The Economic Affairs Council is the made up of Senior Government Ministers named by their Head of Government to deal with matters of an economic nature within the OECS but more specifically to drive the establishment and implementation of the Economic Union among member states.

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events 2015

Caribbean Association Conference

Pharmacists

35th

Annual

09 – 16 August, 2015 at the Guyana Marriott Hotel, Georgetown, Guyana The Caribbean Association of Pharmacists is a network of care providers dedicated to improving the health and well being of people. The association achieves this by fostering a culture of continuous learning and improvement among the membership in pursuance of the advancement of the profession of Pharmacy. Members aspire to practice Pharmacy with a social conscience and commitment to the growth and development of the people of the Caribbean. The year’s theme is ‘The Pharmacist - A Vital Link in Providing Quality Health Care’. For further info: http://www.cap-pharmacists.com/

Caribbean Hospitality Industry Exchange Forum, CHIEF 2-4 October, 2015, El Conquistador Resort, Puerto Rico CHIEF 2015 is offering the platform to learn expenditure reduction and enhance revenues in a new way. It offers innovative educational sessions lead by multi-industry experts, an interactive trade show showcasing the Caribbean’s best vendors, and engaging industry roundtables with one-on-one discussions with our knowledgeable panelists. Their educational tracks (Operations, Sales And Marketing, and Go Green & Improve Profitability) will cover the entire gamut of how to run your business in a more efficient and effective way. The interactive trade show floor will include live demonstrations and exclusive discounts on products and services provided only to CHIEF attendees. For further info: http://www.caribbeanhotelandtourism.com/chief/

FCCA 22nd Annual Cruise Conference & Trade Show 05 –09 October, 2015 at Cozumel, Mexico The annual Florida-Caribbean Cruise Association (FCCA) Cruise Conference & Trade Show is the premier industry event of the year to meet with key industry players, analyze trends and discuss current issues. It is because of the unique forum provided by the Conference that nearly 1,000 cruise industry partners, including approximately 100 cruise executives, attend each year. For further info: http://www.f-cca.com/

Caribbean Renewable Energy Forum CREF 2015 19-21 October 2015 at the Barceló Bávaro Palace Deluxe & Convention Center, Punta Cana, Dominican Republic Regional policy is increasingly renewable-friendly, capital is available, the price of technology continues to fall – and the price of oil is trending upwards. As the largest and longest established renewables event in the Caribbean, CREF provides a compelling mixture of world-class content and superlative opportunities to meet all the key participants in this rapidly emerging renewables market. Whether you are a regional policy-maker or an international developer, a regional utility or a multilateral active in the Caribbean, CREF is a must-attend event, which will be co-hosted by the Government of the Dominican Republic. For further info: http://www.caribbeanenergyforum.com/

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ADVERTISERS INDEX COMPANY

Page

COMPANY

Page

ABM / SVG Air

Harper’s Office Depot Inc.

AMS

Hawkeye Security

American Univ of Antigua ( AUA )

Henderson (2004) Ltd, Antigua

Anguilla Aluminium

KAW Management Services Ltd.

Antigua & Barbuda Airports Auth. (ABAA)

Massy United Insurance

Antigua & Barbuda Ship & Yacht Registry (ADOMS)

Medical Surgical Associates

Antigua & Barbuda Tourism Authority

Nagico Insurances

Atwell Dalgliesh Co. (St. Lucia) Ltd

National Caribbean Insurance

Axcel Finance

NationaL Commercial Data Services

Baron Foods Ltd

OBIM International

Budget Marine

OnWatch Caribbean Ltd

Capita Financial

Pineapple Rentals, Antigua

Caribbean Credit Card Corp. Ltd

Quality Electrical Sales & Services Ltd.

Chiverton’s Construction, Nevis

Rubis

CIBC First Caribbean

Soufriere Estate

Cross Roads Centre Antigua

St Kitts Nevis Tourim Authority

East Caribbean Central Bank (ECCB)

St Kitts Urban Development Corp. Ltd - Port Zante

ECFH

Cover

95 Cover

67 Cover

St Lucia Tourist Board

Essential Hardware

St. Kitts Investment Promotion Agency (SKIPA)

Exel Engineering, Antigua

St. Kitts Masonry Products Ltd.

FDL Pest Control, St Lucia

Sunset Homes, Anguilla

G4S Security

Sutton Place Hotel, Dominica

Global Processing Centre, Ltd / SugaPay

The Cancer Centre Eastern Caribbean

Grant Thornton

UWI Open Campus

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