CARICOM INVESTMENT PROMOTION STRATEGIES &  CHALLENGES
THE Caribbean has recorded some progress in the past two years in strengthening Investment Promotion Agencies (IPAs) amidst continuing challenges, including limited budgets to promote member countries as a preferred location for Foreign Direct Investment (FDI). But much more needs to be done and with some urgency.

The Barbados-based Caribbean Association of Investment Promotion Agencies (CAIPA), a six- year old regional organisation that operates under the aegis of the Caribbean Export Development Agency, has been growing from strength to strength providing much needed training and a range of support programmes to its members across the region.
With fierce global competition for investment flows, Caribbean countries need to be on top of their game in their drive to secure much needed investment dollars. As well, IPA’s in the region should expand their reach to non-traditional markets.
IPA’s should make maximum use of the excellent opportunities provided by CAIPA to strengthen investment promotion, facilitation and aftercare.
CAIPA’s Caribbean Investment Opportunities Catalogue, which lists investment opportunities in specific Member States, is a useful initiative.
Some of the projects that have been put on hold, likely due to lack of funds, but which are key to the efficient functioning of the IPA’s, include the production of a Due Diligence Manual and the development and implementation of a strategy for FDI Data Collection. Getting current information on the level of FDI is a frustrating experience in some countries. This kind of information should be public knowledge and reports on investment promotion usually mention projects that are visible, otherwise they lack credibility.
All CARICOM  IPA’s should produce timely annual reports that include details of who is investing, how much and details of the projects.
In addition to training in investment facilitation, there is need to expose staff to international marketing strategies, assessing business plans, communications strategies, presentation and negotiating skills. Too many of our overseas missions have limited or no experienced staff with trade and investment promotion training and lack the marketing budgets to engage in investment promotion activities.
The image of Investment Promotion Agencies in terms of the physical facilities is another neglected area in some Caribbean countries. Run down and cramped facilities are a turn off for both local and foreign entrepreneurs.
Jamaica has always been in the forefront of when it comes to effective international trade and investment promotion. JAMPRO, one of the most-established IPA’s in the region, has the structure, experienced and trained personnel, sector specialists, overseas trade commissioners,  employs aggressive marketing strategies and has excellent communication vehicles.  I benefitted immensely from my attachment to JAMPRO prior to setting GO-Invest.
Jamaica also deserves kudos for being elected earlier this year to the Steering Committee of the World Association of Investment Promotion Agencies (WAIPA) as Regional Director for Latin America and the Caribbean. CAIPA played a key role in lobbying for this position.

Both Jamaica and Guyana used to be on WAIPA’s Steering Committee in the late 1990’s but Guyana has since not held any key position.
One of the reasons why JAMPRO is dynamic and productive is its close partnership with the private sector and the choice of leading private sector figures to Chair the agency. Recent Chairmen included Sandals hotel mogul Butch Stewart and the current President, Milton Samuda, is a former Chamber of Commerce President.
Because the Jamaican private sector is front and centre in the drive to attract FDI, this brings credibility and assurance that potential investors are looking for. As well, JAMPRO is the sole agency for organising inbound and outbound investment missions. Individual Ministries, as happens in some CARICOM Countries, do not take on the investment promotion role, for which they are not trained.
According to the World Bank Group’s Investment Climate Advisory Services: “The world’s top-performing IPIs (Investment Promotion Institutions) distinguish themselves by fostering a private sector-minded culture, accumulating deep business knowledge, and implementing internal systems that ensure the agencies can provide foreign investors with the necessary information to influence their investment decisions.”
Included in the list of required practices for success, Governments were advised to hire staff with both public and private sector experience, offer salaries and bonuses closer to private sector standards; continually train and develop staff, especially in soft skills such as customer service, develop sector specialists and demonstrate professionalism and dynamism through updated Websites with frequent news updates of importance to investors.
The World Bank identified Invest in France, Invest Hong Kong and Pro Nicaragua among the top IPA’s globally. Chile and Ireland are also consistently highly rated for the effectiveness of their IPA’s. CAIPA would definitely benefit from collaboration with these agencies. Its recent links with Brazil is a welcome development.
Among CAIPA’s challenges is securing long term funding after current funds from the European Union expires in 2015. Both the United States Agency for International Development (USAID) and the Canadian Government, under the new CARICOM-Canada Trade Development Agreement currently being negotiated, should be approached for financial support.
CAIPA’S President Ronald Theodore, who is Vice President, Promotion and Marketing, at the Grenada Industrial Development Corporation (GIDC) told me his vision for CAIPA includes strengthening the region’s visibility as an attractive destination of FDI, leveraging opportunities for joint marketing and promotions and building capacity of IPAs through training and information sharing.
CAIPA’s Work Programme for 2013 includes investment facilitation training, an investment mission to Spain to promote Caribbean renewable energy and tourism projects and participating in the Caribbean Hotel and Resort Investment Summit (CHRIS) in Miami.
The presence of IPAs at the annual Caribbean Investment Forum in Trinidad and Tobago and the relatively new ‘Invest Caribbean Now’ event in New York, both in June, should be considered.
CAIPA’s recent inaugural awards provide an indication of which IPA’s are excelling. The Antigua and Barbuda Investment Authority won the award for Best Practice in the Creation of Jobs, Grenada’s GIDC copped the Regional Excellence in Investment Promotion Award and the Best Practice Website was awarded to invest T&T in Trinidad and Tobago.
(Sandra Ann Baptiste, a Business Consultant and Specialist in Caribbean Affairs, was the first Head of GO-Invest).