PHOTO BY SHARON R.BENNETT
“Have a Second Look at Jamaica”- private sector leaders urge Diaspora To Invest In Jamaica
NEW YORK – Buoyed by the positive impact of initiatives to strengthen the economic framework, local private sector leaders are encouraging Jamaicans in the Diaspora to invest in Jamaica. They are also encouraging young Jamaicans, who have migrated, to return home to seek out opportunities.
Stating the case during the 12th series of the annual JN Outlook for the Future meetings in Toronto, Canada and New York in the United States of America on October 7 and 8, one of two main speakers, Private Sector Organisation of Jamaica (PSOJ) President, William Mahfood, underscored the positive changes to reposition the country for growth and development.
He noted that inflation and interest rates were down, with inflation at its lowest rate in history at 2.2 per cent and that commercial interest rates have reduced from between 18 per cent and 19 per cent to single digits.
“You can borrow money now for large projects at single digits of about eight and nine per cent,” he told the more than 100 Jamaicans at the New York Hilton Midtown Hotel, in Manhattan.
In addition, he noted that the country’s balance of payments had improved from a negative J$2 billion to a positive J$39.4million and that the Debt-to-GDP ratio was now 126 per cent, down from 146 per cent. The fiscal deficit, as a percentage of GDP, has also improved, he noted, moving from 3.5 per cent to 0.7 per cent.
Mr Mahfood, who is also Chairman of the distribution company, Wisynco, says the exchange rate adjustment has also impacted positively on the competitiveness of the local manufacturing sector through import substitution, although he cautioned that devaluation of the Jamaican currency was not a sustainable measure for growth.
The PSOJ boss stated that as a result of the strengthening of the economic pillars, the country’s competitiveness improved on the latest World Economic Forum’s Global Competitiveness index. Jamaica moved up eleven places on the 2015 index from 97 to 86 out of 140 countries.
Mr Mahfood also highlighted that the improved value of foreign direct investment including the recent purchase of Red Stripe by Heineken, as an indication that international business confidence is rising in Jamaica, although security and justice continue to be a problem affecting investor confidence.
“Remove the bureaucracy; put in proper tax measures; put in a just and fairer system of doing business and procedures and systems that you would be accustomed to in the USA and Canada, and investments will flow into Jamaica,” he advised government.
PHOTO BY SHARON R.BENNETT
Notwithstanding that, he reiterated that the economy was positioned for investment and that there were many opportunities for young Jamaicans abroad in expanding private sector companies, such as his own Wisynco, Cari-Med and others.
Similarly expressing confidence in the economy, Glenford “Glen” Christian, Chief Executive Officer and Chairman of the pharmaceutical and consumer products distribution companies Cari-Med and Kirk Distributors said “Jamaica is open for business”, pointing to specific areas of opportunities in business processing outsourcing, where he has made an investment; tourism and agro processing.
However, he says to maintain business in a challenging economy, such as Jamaica, astute management is critical. Investors must know the business they are getting into; control costs and invest in their human resources, he advised.
“You have to see the positive side and look out for the opportunities” he stated.
“You cannot be successful without people,” he said. “When we began to expand we invested in leadership training; and, today our attrition rate is 0.7 per cent,” he testified.
The presentations were positively received by the Canadian and American audiences; however, they expressed concern about linkages, crime, bureaucracy and the continued devaluation of the Jamaican dollar.
Irwine Clare, executive director, Caribbean Immigrant Services, said investment from the Diaspora could be better leveraged through improved links between local enterprises in Jamaica and investors in the Diaspora, which he contends has not been happening at the level it should.
“We have not seen Jamaican businesses make that kind of inroad where they partner with Jamaican businesses overseas. I think the Diaspora should be seen as more than a remittance source, as there are many businesses that need support to make inroads into the Jamaican market,” he said.
Agreeing with the approach, Mr Mahfood noted that his own company had developed linkages with Jamaica-owned businesses in the USA; such as Golden Krust Caribbean Bakery franchise owned by Jamaican-born US entrepreneur, Lowell Hawthorne.
“Identify people within the same space, whether it’s in distribution, consumer products etc.; and, if you can’t find a local business, find someone with the local knowledge of the systems,” he advised.
Closing the event, Chairman of the proceedings, Earl Jarrett, general manager, Jamaica National Building Society, reiterated the improvements in the economic climate and urged Jamaicans overseas to consider the opportunities.
“Yes there is a crime issue, but part of the solution is to create the environment for investments to get people working; and, I believe that as Jamaicans we should make a step forward.”
“Let’s have a second look at Jamaica,” he urged.
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