The Tribune

By NATARIO McKENZIE

Tribune Business Reporter

nmckenzie@tribunemedia.net

THE level of investment incentives offered by the Bahamas is “not out of line” with regional norms, a Cabinet minister said yesterday, suggesting that unlike its Caribbean counterparts this nation has been more successful in attracting “upper crust” investors.

Khaalis Rolle, minister of state for investments, told Tribune Business that the accounting firm KPMG had completed its preliminary report to determine whether the Government was getting ‘value for money’ through its investment incentives regime.

Mr Rolle said: “What the report did say was that compared to our regional competitors, the Bahamas was not out of line with regards to the types of incentives being offered to attract foreign direct investment.

“It’s not something that’s abnormal throughout the Caribbean. Some countries are even a bit more aggressive than we are in terms of how we offer incentives to individuals with capital willing to invest.”

Mr Rolle added: “Investment incentives are a natural component to attracting foreign direct investment. Where ever you go there is an incentive to attract the limited capital that’s available throughout the world.

“One of things that the Bahamas has done better than most is that we have been able to attract many of the upper crust investors to our shores; those that have the ability to invest a tremendous amount of capital, and they are able to do it over a longer investment horizon.

“We are going to look at the report in detail. Coming out of this National Economic Development plan, that is going to be a component that is reviewed to determine whether or not we have to make adjustments to remain competitive.”

During his 2013-2014 Mid-Year Budget statement, Prime Minister Perry Christie said the Bahamas had essentially found itself in “bidding wars” with regional competitors to attract foreign direct investment.

Mr Christie said the “whole extent to which concessions and incentives in our country” are granted to foreign investors and the Bahamian private sector was an issue that his and future administrations will have to grapple with.

The International Monetary Fund (IMF) has estimated that the Bahamas grants total investor incentives worth around $285 million annually, and has suggested that these be cut and rationalised because this nation is not getting sufficient returns from them.