Two of the leading investors in the Caribbean, hotel magnate Gordon ‘Butch’ Stewart and telecoms czar Denis O’Brien, have been recently championing investment opportunities in the Caribbean at forums held in the United States.

With the English- speaking Caribbean expected to record lack-lustre growth over the next few years, it is becoming increasingly imperative that the region attracts greater levels of investment which in turn will boost employment. All the more important then that the Caribbean diversify its economies away from the traditional dependency on the US, UK and Canada and look to emerging powerhouses like China, India and Brazil.

The World Bank has declared that weighted average growth for 2011 to 2015 will be about 4.8 per cent per year for the Caribbean in general, while it expects the English-speaking Caribbean to grow far less, on average by just 2.5 per cent. This is much lower than its average annual growth of 5.1 per cent in 2003 to 2007.

Meanwhile, the Caribbean Development Bank’s (CDB) Director of Economics, Dr Denny Lewis-Bynoe, believes that the region’s economic recovery is inextricably linked to the performance of its key trading partners in North America and Europe and at best the Caribbean is likely to post modest growth.

“The regional outlook for 2011 hinges mainly on external developments. In this regard, the fact is that downside risks to the global outlook are still elevated and the recovery is expected to remain somewhat asymmetric, with lingering weakness in advanced economies critical.

“Taken together with the fact that the business cycles of regional economies tend to be highly correlated with those of advanced economies, especially key North American and European export markets, these factors imply modest recoveries for most economies in the region,” said Lewis Bynoe earlier this year.

The CDB stressed that last year, economic conditions in the region were depressed despite the world economy showing signs of bouncing back from the global financial crisis of 2008. It said that of the 18 borrowing member countries, 12 recorded contractions (including Jamaica) while six showed growth last year.

However, both Sandals chairman Gordon ‘Butch’ Stewart and Chairman of mobile telephone service provider Digicel Denis O’Brien remain optimistic about the Caribbean and continue to make sizeable investments in the region.

Stewart is looking to expand his hotel chain in St Lucia, Jamaica and the Turks& Caicos, having already made forays into the media and motor vehicle dealerships.

Last month Stewart, who is also the chairman of the investment agency JAMPRO, speaking at a Carib News editorial board meeting in New York’sManhattan said: ” I think the projections for investment at this time are good, good under the economic period we are going through. I think they will get better two years from now and I think foreign direct investment will make a big difference.”

The Sandals boss is of the view that the Caribbean can attract a cornucopia of differing investments which can range from different industries. This could span hotels, other tourism ventures, movies, agriculture, transportation, infrastructure and telecommunications. However, he noted that the respective governments had to be amenable to prospective investors and should ensure that bureaucracy is not too prohibitive. He pointed to a number of investment projects across the region and said this augurs well for the future.

“There are so many areas. In Jamaica, the Chinese have just bought a number of the sugar factories. In The Bahamas, the Bahamas (tourism) project is massive – US$2 billion of development,” he added.

“Without getting into specifics, I think the Caribbean augurs well. Not only that – there are many unstable parts of the world and when you look at the Caribbean, the region would really have to come in as, if not the most stable part of the world, it’s right up there.

The Caribbean is a stable region

“If you go on a list of one to five, I think from a point of view of stability the Caribbean would come in within the five most stable – not necessarily the wealthiest, but the most stable. I don’t think any of us go to bed at night wondering if there is going to be a coup tomorrow. It’s not on the cards.

“From the point of view of investment, that stability is the single biggest thing we have to offer,” he declared, in light of the turbulence and civil insurrection taking place in North Africa and the Middle East.

“We have our proximity to the biggest market. The prospects are very good. The inquiries [about investment] are good.Everywhere, with few exceptions, maybe Brazil and one or two other South American countries have had major pressure after the meltdown.All things considered, most of the Caribbean countries have stood up very well with the economic problems they have had.”The social side

But Stewart did caution that an abundance of investment was not the sole panacea to the Caribbean’s woes. Efforts to fight crime, bolster health and education must also be heeded. He went on to say that here the Diaspora can play a vital role by coming to the aid of its brethren back home. As an example he said that they can help by providing vehicles for the police force in Jamaica. Also they can assist the Jamaican health care system by providing much needed equipment regardless of whether it is used but in working order.

“There are many young Caribbean people coming up who are well educated,” he said. “Extremely well educated, and I think it provides nothing but good for our future. A lot of the islands that I visit, I envy the education levels when I compare them to Jamaica, my own home. I envy how well they have been able to maintain their education system and how effective it has been for their communities and their nationals.Jamaica needs help in that regard and we need help on the medical side of things.”

One of the Caribbean’s leading business personalities, Stewart cautioned that the region’s entrepreneurs should not shy away from taking a chance: they should not adopt a stance of being too risk-averse. The way he sees it, the Caribbean cannot rely just on foreign direct investment – it must invest in itself.

“We must look at ourselves to determine what we can do. I think we can do a bit more for ourselves than we are doing at this point in time. We can take a few more chances than we are taking. I don’t think anything is ever built or developed without taking some chances.We should do more of that,” Stewart suggested. O’ Brien on investing in Jamaica

In a decade Digicel has established itself as the foremost mobile service provider in the Caribbean, having invested US$3.2 billion in the region during that time. Its founder and chairman Denis O’Brien acquired a licence to operate in Jamaica for US$47 million back in 2001. This year ground was broken on a US$75 million facility in downtown Kingston which will house Digicel’s world headquarters. Today O’Brien sees the region replete with investment opportunities.

“Speaking at the ‘Jamaica Rising’ investment campaign held at the Maryland residence of Ambassador Audrey Marks before representatives of the World Bank, IMF, executives from major international corporations and potential investors, O’Brien said: “If you are an investor contemplating coming to Jamaica, you have a very friendly government. Jamaica is an open economy, open to outside investment in an amazingly welcomed way. Digicel has been very, very fortunate to build a relationship that has seen it become a Jamaican company and we now see ourselves as a Jamaican multinational.”

The Digicel founder said this was the first time he was speaking so positively about a country and also declared his admiration for Jamaican workers and highlighted the calibre of Jamaican managers. He went on to laud the “first-class” opportunities and the ability to get things done, as well as the “open-door” policy in terms of talking with politicians and decision-makers in Jamaica.

Ambassador Marks told the group of potential investors that for the first time in 40 years, the macroeconomic environment in Jamaica is characterised by ” low inflation, low interest rates, stable exchange rates and high reserves – all at the same time.”

She said the Government of Jamaica has now started the process of moving from stability to growth by incentivising major investments, among them the recently opened Falmouth cruise ship terminal.

Ambassador Marks also pointed to the re-development of downtown Kingston, billion-dollar casino and hotel projects; expansion of the Port of Kingston transshipment terminal, creation of an aerotropolis concept for the Norman Manley International Airport; development of a modern multi-modal transport system; and projects in alternative energy and Liquefied Natural Gas (LNG) power plants.

“We are looking for partners and these projects offer exciting opportunities for private sector investment.”