Foreign Investors Sharpen their Focus on Jamaica...
...Caribbean Island Still Attracting Record FDI

Brand Jamaica is internationally associated with quality, excellence and success in many fields, and big business is no exception as smart and serious global investors are increasingly embracing Jamaica as a prime destination for investment.

In the 2008/2009 financial year, capital expenditure from investment projects facilitated by Jamaica Trade and Invest (JTI) - the national investment and trade promotion agency - totaled J$34.1 billion (US$383.4 million) across the tourism, agriculture, manufacturing, mining and energy, information and communication technology (ICT) and creative sectors. This figure represents a 40 per cent increase over the J$24.3 billion (US$273.5 million) recorded in 2007/2008. Over the five-year period from 2003 to 2007, total Foreign Direct Investment (FDI) inflows into the island averaged US$733 million, peaking at US$882 million in 2006.

There are several factors that contribute to Jamaica's ability to attract substantial foreign investment. The country boasts an open and diverse economy with encouraging prospects and a strong international profile. This is supported by a sturdy political commitment to free enterprise, distinct brand identity and the expansion of benefits with no restrictions on the movement of capital, profits, and dividends. Additionally, there are virtually no exchange controls and no approval is required for repatriation of profits and dividends.

Jamaica's position as an ideal investment destination is further strengthened by its warm climate, large and friendly English-speaking population, competitively priced and diverse labour force and strategic location for trading with the rest of the Western Hemisphere. The island’s other noted advantages are its proximity to both the United States and the Panama Canal, and its historic and emerging relationship with the Latin American bloc. Jamaica is also served by world class port facilities, two modern international airports, well-developed infrastructure and an abundance of natural resources.

According to the World Bank Doing Business 2009 report, Jamaica's scores are on the same level as the advanced member nations of the Organisation for Economic Co-operation and Development (OECD) in areas such as business start-ups, dealing with licences, registering property, flexibility of labour market, protecting investors and enforcing contracts.

In addition to the policies and attributes that help to shape Jamaica's enabling business environment, the implementation of more focused and targeted national investment attraction strategies has played a critical role in the attainment of increased investment flows during the current decade.

SECTOR OPPORTUNITIES

Tourism Tourism clearly dominates Jamaica's economy, with over three million visitors flocking to the country's shores every year. JTI facilitated J$13.4 billion (US$150.5 million) in capital expenditure in tourism investments in 2008/2009, which accounted for almost 40 per cent of the total capital expenditure facilitated by JTI over the period. Significant FDI has flowed into Jamaica through the accommodations sub-sector in the last five years. Some of the top investment opportunities in this sector include the development of attractions, boutique hotels and facilities for health and eco-tourism.

Information & Communication Technology
In today's world of fast and borderless communications, Jamaica is on the right side of the digital divide. A deliberate government ICT development strategy initiated in 2001 has ignited tremendous growth in the telecoms sector, which has benefitted from nearly US$1 billion in investment over the last ten years. The most dynamic and fastest growing area within telecoms has been mobile telephony.

Major providers of high-quality services have made significant strides in developing Jamaica’s fibre optic/broadband connectivity and the sector’s focus is now on telecommunications, software development and enabled/share services, which includes contact centres and Business Process Outsourcing (BPOs). Jamaica is presently ranked among the top international locations for offshore outsourcing.

Agriculture
Jamaica has sought to diversify its agricultural base and improve its efficiency through the use of modern technology. While Blue Mountain coffee continues to sell at a premium on the world market, other traditional exports (sugar, banana etc.) are undergoing significant diversification through the application of technology. The use of biotechnology and irrigation techniques has given rise to investment opportunities in non-traditional areas such as aquaculture, the cultivation of fruit trees, indigenous plants and herbal product.

Manufacturing
There is real diversity in Jamaica's manufacturing industry, which is a likely factor that contributes to the very strong year-on-year growth. In 2008/2009, JTI facilitated J$5 billion (US$56.6 million) in capital expenditure in the sector. Companies involved in manufacturing range from the small to the very large; those that produce canned foods to those that deal with the extraction and processing of natural resources and chemicals.

Mining and Energy
Bauxite has for a long time been the most mineral mined in Jamaica, but other profitable minerals exist, such as limestone, marble, gravel, sand, gypsum, marl, dolomite, clay, whiting, silica, sand and lime. On the renewable energy side, investment opportunities are available in ethanol, wind energy and hydropower.

Creative Industries
Jamaica's reputation as the cultural mecca of the Caribbean has positioned its creative industries as a key revenue generator for the local economy. The music and film sectors, two of the many areas in the creative industries with scope for increased investment in support services and infrastructure, generate US$250 million and US$1 billion respectively every year.

READY FOR BUSINESS

In spite of the turbulence caused by the current global economic storm, Jamaica has managed to weather the situation quite well and remain on the radar of discerning investors. To facilitate all aspects of new business ventures, Jamaica has tailored a wide range of incentives, which include newly tabled laws and agreements, as well as sector specific concessions and incentives.

Editor's Note: For information on investing in Jamaica, contact Jamaica Trade & Investment (JTI) in Kingston or London.

18 Trafalgar Road
Kingston 10
T: (876) 978-7755

Toll free: +1 877 INVEST JA (468-4352),
Email: info@jti.org.jm, www.jamaicatradeandinvest.org