The global business sector continued to perform well during 2023, as reported by the Central Bank of Barbados, and the Barbados economy is projected to grow by approximately 4% during 2024. The economic outlook for Barbados is reported to be "cautiously optimistic", predicated on a continued robust tourism sector, increased airlift and sustainable public and private investment. This therefore calls for a whole-of-government and private sector approach – a true collaborative effort of all stakeholders focused on the continued delivery of excellence in all spheres.
New things are happening in the sector!
Revised Corporate Tax Rate
This year commenced with the introduction of Barbados' revised general corporate tax rate of 9%, but with provision for exceptions for approved small businesses that earn under US$1million in revenue, as well as insurance companies. The Honourable Mia Amor Mottley, S.C., M.P., Prime Minister of Barbados, announced changes to Barbados' corporate tax regime, ensuring that the jurisdiction remained proactive, progressive and transparent relative to global standards, while maintaining its competitive edge. As our nation stays ahead of the curve, the full impact of the global minimum tax is yet to be seen. However, Barbados prides itself on offering a unique value proposition that embraces sustainability and encompasses wide and varied elements. This serves as a strong pull factor, while remaining attractive to the discerning investor and adds to the jurisdiction's appeal as a choice location for investment.
African Export-Import Bank and Barbados Pharmaceutical Inc Open
In 2023, Barbados achieved a major milestone in its focus on Africa, with the official opening of a Caribbean branch office of the African Export-Import Bank. The Bank's role is to provide access to funding for global trade, investment and development between the two regions, making access to this type of financing easier with regard to interregional trade within the Caribbean, as well as between Africa and the Caribbean. Given the strengthened South-South relationship between Barbados and by extension the wider Caribbean region and Africa, we expect trade and investment between the two regions in the coming years, to flourish.
The island is also making strides in the life sciences, bio science and pharmaceutical sectors, with the recent establishment of the state-owned Barbados Pharmaceutical Inc., the authority that will collaborate with the government of Rwanda to build out the legislative framework and infrastructure required to attract pharmaceutical manufacturing entities to the island.
Enhancing the Barbados Business Climate
Achieving maximum and sustainable results generally requires an enabling environment that aligns with our investment promotion efforts. Consequently, in addition to the revisions to Barbados' corporate tax structure, innovative initiatives have been implemented or are soon to become fully on-stream that are designed primarily to enhance Barbados' business climate. One of these initiatives includes the establishment of the new Business Barbados entity that will further improve service delivery of the Corporate Affairs and Intellectual Property Office. In addition, Business Barbados will redress the time taken to set up businesses and complete land transactions, resulting in significant improvements in the business climate.
It is anticipated that both international and local businesses alike, will welcome these enhancements that are focused on improving the ease of doing business in Barbados, further cementing in the minds of investors why the jurisdiction continues to be a prime choice for global investment. Similarly, Barbados has ramped up its efforts in digitalisation across the island to increase efficiency within the overall service sector. Technology is rapidly evolving and Barbados aims to remain on the cutting edge regarding service standards and quality. To this end, it is fundamental that digital training remains par for the course.
Online safety and security are paramount to the government especially as the country progresses through the process of digital transformation. The Cyber Nations training programme was rolled out, with a mission to train 1,500 Barbadian students in cybersecurity. The initiative, facilitated through the Ministry of Education, has since produced two cohorts of graduates.
Barbados, through its investment promotion agency (IPA), has embarked in joint participation in a Regional Technical Cooperation initiative with the Inter-American Development Bank, along with Jamaica's and Trinidad and Tobago's IPAs, to harmonise the jurisdiction's legislative framework for the digital economy within the region in alignment with international best practices; and to strengthen the institutional capacity of the IPAs in the promotion of foreign direct investment to digital sectors.
Invest Barbados Ready to Deliver
Invest Barbados will embark on several initiatives and promotional activities, scheduled to be held locally, regionally and in our key source markets of Canada, the UK, USA and to a lesser extent, further afield in Africa, Asia (specifically Japan), Europe and the UAE. The Corporation's promotional efforts will also be focused on sectors poised for investment in the financial services, insurance, ICT, niche manufacturing, renewable energy, education and knowledge delivery, research and development, fintech, medicinal cannabis and medical tourism sectors, in addition to promoting the Barbados Welcome Stamp and the attraction of high-net-worth individuals.
There is renewed focus on developing the Barbados film industry, which comprises several qualified local film producers who have been flying the Barbados flag in various local and international film productions, as well as a range of individuals and entities that provide meaningful support in ancillary services. The sector is poised for growth and the possibilities for investment in the sector are limitless! As such, the Barbados government is committed to enacting new and specific legislation to further enhance the film sector through the provision of various tax incentives and exemptions that will benefit both local and overseas production companies.
Invest Barbados remains keen on playing its part to promote Barbados as a desirable investment location, attract and land sustainable investment in alignment with Barbados' strategic industry priorities. We will therefore continue to engage our key source markets while continuing to focus on the sectors in which we have a strong value proposition.
Barbados is open for business and Invest Barbados is ready to assist you in establishing your global operations here. We invite you to explore the many opportunities!
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