JAMPRO says Jamaica to rebound as UNCTAD reports global decrease in investments - country earns USD856 million in Foreign Direct Investment in 2016

 

UNCTAD has reported in its World Investment Report released today, June 7, 2017, that in the face of a 2% global decline in Foreign Direct investment (FDI) during 2016, Jamaica has received a preliminary estimated figure of US$856 million in FDI; a slight downturn in comparison to the country’s 2015 achievement of US$925 million. The World Investment Report 2017 indicates that the downturn in global FDI was the result of weak growth in economies globally, and the less than impressive performances in world trade.  

Jamaica was, however, the leading host economy in the English-speaking Caribbean and Small Island Developing States (SIDS), capturing most of the FDI inflows directed to these countries. UNCTAD lauded Jamaica’s performance, noting that the country was not losing momentum, as the level of 2016 FDI flows was 47 per cent higher than in 2014.

The report also said, “Among the seven SIDS with registered projects, Jamaica was the most successful in attracting diversified FDI. Jamaica’s leading position is also confirmed by the sectoral distribution of its FDI stock and the cumulative value of announced greenfield projects.”  In addition, UNCTAD noted that between 2011-2015, Jamaica attracted the most diversified projects and Public Private Partnership (PPP) investments in energy and transport among SIDS counterparts.

Of a total nine projects landed across the region with a value of US$1.2 billion, Jamaica received five. This success has made the country standout among its SIDS counterpart in the execution of PPPs. The Inter-American Development Bank’s (IDB) Infrascope Report of 2017, has also officially recognized the country’s success by improving Jamaica’s ranking in PPP competitiveness from eighth to fourth - when benchmarked against other Latin American and Caribbean countries.

The performance reflects significant investments in mining with Jiquan Iron & Steel (Group) Company Limited’s (JISCO) acquisition of the Alpart Bauxite Mining Company for US$299 million, and large tourism projects from Royalton and Grupo Excellence over the period. UNCTAD expects global FDI flows for 2017 to improve over 2016’s performance. 

JAMPRO Vice President of Investment Promotion, Claude Duncan said, while the country’s performance was affected by the global decrease in FDI, JAMPRO continued to see positive indicators that points to the country’s increase in investments from a diverse group of sectors.

He said, “While we have experienced a decline, Jamaica has still performed well, despite the downturn in investments globally.  The country has managed to attract major investments in infrastructure, tourism, mining and other sectors through the aggressive marketing of the destination, enhanced project facilitation efforts and making continuous efforts to improve our business environment.”

Explaining JAMPRO’s strategy to increase investments, Duncan added that, “JAMPRO is in the process of rolling out its new three-year strategy, which focuses on innovatively enhancing our channels of marketing the destination for business and a focus on the wholesome development of key sectors. This incorporates the adoption of relevant international best practices to achieve investment and export targets aligned with the Economic Growth Council’s agenda for economic development.”

 

With the country on a path to achieving higher and sustained growth, Duncan is confident that the country will see an improvement in the next year. He said, “We are definitely on board to play our part in meeting the critical national growth targets, and we are of the view that with JAMPRO’s targeted strategies, we will experience higher inflows this year.”  

 

JAMPRO is an Agency of the Ministry of Economic Growth and Job Creation. JAMPRO’s mission is to drive Jamaica's economic development through growth in investment and export

 

 

Source: 
JAMPRO
Published Date: 
Wednesday, June 7, 2017
Show on Homepage: 
No