FDI into Jamaica increases by 15 .7% to over US$500 million in 2013

Talking FDI trends for 2014 are (L-R): JAMPRO Chairman Milton Samuda, JAMPRO President Diane Edwards, Professor Anthony Clayton, Head, Sustainable Development Institute, UWI and Minister of Industry, Investment and Commerce Anthony Hylton.

Minister of Industry, Investment and Commerce, G. Anthony Hylton, has described Jamaica’s performance in the latest World Investment Report as constructing a solid infrastructure for investments that will benefit current and future generations of Jamaicans.

Speaking at the launch of the World Investment Report 2014 at the Knutsford Court Hotel in New Kingston on June 24, Minister Hylton declared his confidence that the country is heading in the right direction in achieving solid macro-economic stability which will provide the foundation for sustainable development.

A key factor in this sustainable development, according to the Minister, is the recovery experienced by Jamaica in foreign direct investments (FDI) which has increased global confidence in Jamaica as a business and investment destination. He said, “In February this year, the Fitch Ratings Agency upgraded Jamaica to ‘B- from a CCC rating’. This was due in strong measure to the country’s strong corrective policy and compliance during the course of much of 2013 with the IMF programme.”

This positive movement in Jamaica’s credit rating means the country’s risk profile has been reduced, therefore opening up the economy to attract more foreign direct investments and to stimulate economic growth.  Minister Hylton noted that the global investment community is “sitting up and taking notice of our commitment to fiscal discipline and macro-economic stability.”

The World Investment Report 2014 was published by the United Nations Conference on Trade and Development (UNCTAD) under the theme ‘Investing in Sustainable Development Goals (SDGs)’. This year’s World Investment Report offers a global action plan for galvanizing the role of businesses in achieving future sustainable development goals, and enhancing the private sector’s positive economic, social and environmental impacts.

Increased FDI

The report indicated that Jamaica’s FDI performance increased by 15.7% in 2013. According to JAMPRO President Diane Edwards, FDI facilitated by the agency resulted in the creation of almost 6,181 jobs in 2013 across a number of sectors, primarily in Business Process Outsourcing (BPO).

JAMPRO facilitated over J$18 billion in direct investments including the significant construction in the tourism sector with the Royalton, Karisma (Sensatori), Hyatt Ziva & Zilara, Riu and the Marriot Hotel resulting in the creation of 1,285 jobs and J $13.4 billion in capital expenditure.

Chairman of JAMPRO, Milton Samuda, noted that importantly these investments are sustainable to the Jamaican economy. He said, “The ultimate impact of our work is for strong developmental outcomes. Yes, we want high levels of capital expenditures (CAPEX), and we want high numbers of jobs; but we are acutely aware that we will be judged by the quality of the investments that we bring to Jamaica.”

 

Going forward Edwards noted that deliberate strategies are required for increasing financing and investments in SDG-related sectors, including identifying new sources of financing, promoting Public–private partnerships (PPPs) and creating a sound policy climate.

Source: 
JAMPRO
Published Date: 
Tuesday, June 24, 2014
Show on Homepage: 
No