What is the role of the private sector and investment in Antigua and Barbuda’s development?

I take the view that the private sector should be the engine of growth for any economy. I also believe that it is the task of government to create an environment which will allow the private sector to expand and flourish. The private sector provides jobs and improves the quality of life of individuals, which is very important to economic growth, but that environment has to be enabled by government policies and legislation that encourage growth.

What would you change in order to respond to the needs within today’s market in Antigua and Barbuda?

From time to time you have collaboration in the form of consultation on issues that relate to private sector ventures that would benefit the country as a whole. It has been said that there is a need to engage the private sector at a more opportune moment in order to look for what might be a win-win situation for both private sector and government – I would certainly agree with that.
Many of the projects that are ongoing today are those in which a large amount of capital is needed, so you obviously need to attract that foreign investment.
True, but institutions such as the Investment Authority and the Antigua and Barbuda Development Bank also offer assistance for small business development to companies employing 25 or fewer. That sector is not neglected, but there are limitations as to what it can do in terms of overall economic development.

“The incentives that Antigua and Barbuda offers I think compare very well with other countries in the region. As a matter of fact, it’s probably the most generous across the board.”

With the new airport and the deep-sea water port being modernised, the country has the potential become an important commercial hub in the region. This will enhance the country’s appeal, wouldn’t you say?

Yes, we do recognise the importance of this, because incentives are not the only thing that investors look for. They are also concerned with the business climate. We recognise that there are some areas in which we need to progress in order to emulate the successes of the major countries of the world. The business climate is one such area, and much work is being done in a number of areas in terms of reform.

Would you say enough is being done here in terms of diversification?

We recognise the need for diversification. You can’t have all your eggs in one basket. It must also be recognised that services are always going to be our competitive advantage relative to other sectors, so what we need is diversification within the tourism sector. Several sub-sectors have been identified and marked for future development. Examples of these would be the spa and wellness industry, marina and yachting services, creative industries, as well as ICT-enabled services and financial services. These are areas in which there is scope for diversification and development. They all form part of the fabric of the tourism industry, which is the lynchpin of this economy.
Then there is a push to develop convention facilities, so that the MICE (Meetings, Incentives, Conferencing, Exhibitions) sector can expand.
And that too has tourism at its core, but we are diversifying from the traditional activities which tourism usually entails.

How is the country fostering local entrepreneurship in order to create competitiveness and a strong local industry?

We play a significant role in that. We have a Small Business Department here in the Investment Authority. Since its inception we have attempted to encourage the growth of small business through engagement with owners and their employees, particularly in the form of training courses. Through the twenty or so courses we have on offer we try to develop individual capacity and business as a whole.
Hundreds of participants have gone through these courses. Primarily they are individuals who work for small businesses or business owners themselves. It is done cost-effectively, because we receive support through partnership with larger, private companies and banks that provide some funding to offset the cost of running these courses. We play a tremendous role in the development of small businesses, putting them in the position to take advantage of the opportunities for collaboration with foreign direct investment. This not only allows their business to expand, but provides a link which is essential to the success of FDI and the services it provides.

What opportunities exist for strategic collaboration through PPPs and so on?

Certainly over the last few years we have seen quite a bit of that happening. PPP (Public-Private Partnership) ventures being put together by the government and private investors, whether local or foreign. I think it’s an important strategy to pursue, and the government is keen on engaging private enterprises to collaborate with them in developing these projects – entrepreneurial socialism, as the Prime Minister would call it.

What would you like to tell international investors who are looking for new markets to tap?

Antigua is certainly ripe for investment. There are a lot of competitive advantages here that make us an attractive investment location. We have natural beauty, a tropical climate, a strategic location, a skilled workforce, and political stability. Perhaps most importantly, however, are the generous concessions in place, making you better placed to get an early return on your investment.