SPOTLIGHT ON INVESTMENT IN BELIZE Part

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Located on the northeast coast of Central America, Belize is a country that is fully alert to the potential of investment as a crucial tool for sustainable economic development, income growth, and employment –both for local and foreign direct investment (FDI).

The exploration of non-traditional agricultural products and manufacturing activities has been a consistent focus of the Belizean government since the end of the 20th century to open the national economy, following a decrease in the commercial logging and timber export activities that had previously been a mainstay of its investment landscape.

Tourism is a key industry for economic activity and an invaluable source of foreign exchange for Belize. This runs parallel to the extensive export of seafood, particularly to the US, with a continued foray into different avenues of aquaculture such as shrimp farming.

Whether domestic or FDI, a healthy enabling environment for business is the cornerstone on which successful investment rests. In Belize, this entails a sound macroeconomic environment, a robust domestic financial system, effective rules of law, good governance, and a suitably skilled workforce to meet capacity demands. In addition, the country fully leverages a host of incentive schemes devised through the government and designed to function as a catalyst for investment.

Complementing these internal initiatives, which specifically target the growth and development of the country’s micro-, small- and medium-sized enterprises (MSMEs), is Belize’s active involvement in various agreements that maintain an openness to international trade. The country’s myriad investment opportunities are supported by the National Investment Policy and Strategy (NIPS), which enables greater cohesiveness in the investment value chain and a new Fiscal Incentive Act, which provides broad-based incentives to MSMEs as engines for macroeconomic growth; a legislative tool that is geared towards improving the local business climate and streamlining the facilitation of short-, medium-, and long-term opportunities. Through NIPS, Belize confronts investment challenges with an eye to mitigate the existing trade imbalances, the result of a weak manufacturing sector and an export specialization that traditionally relies on products that are vulnerable to the risks posed by climate change, including sugar cane, citrus, and bananas.

As the country pioneers its economic recovery from the impacts of the COVID-19 pandemic, Belize stands by its stringent environmental commitments, including a target of reaching net zero, and navigates the exploitation of investment opportunities that do not compromise or threaten the protection of its pristine habitats.

Making business happen in Belize, we speak with Dr Leroy Almendarez, Executive Director of BELTRAIDE, as the national statutory body pursues diversification and increased domestic capacity

Could you talk us through BELTRAIDE’s inception and your cur- rent mission?

Dr Leroy Almendarez, Executive Director (LA): BELTRAIDE originally began in 1998 as a trade and investment promotion agency, looking specifically at that landscape as a vehicle to try and enhance those areas. Shortly after, in 2000, it transitioned into what is now formally known as BELTRAIDE, which branched into functional areas such as training and employment, small business development, and exports. We remain focused on investment as the country’s interface, but there is a whole ecosystem that exists under BELTRAIDE. Now that we are focused on economic recovery, our role has become even more significant. MSMEs are seen as an engine for growth, especially with the current mandates from govern - ment, so that has given us greater relevance.

What would you identify as the key industries that are currently transforming the economy in Belize?

LA: There are increasing investment opportunities within offshore and outsourcing, agriculture, fishing, manufacturing, and tourism, and these remain our priority areas. Due to the impact of the COVID-19 pandemic, there was a very quick decline in gross domestic product (GDP). But now, it’s rebounding, and agriculture has acted as a substitute in terms of economic activity and income generation for the country.

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