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Sincecoming intooffice in1998,Said
Musa’s government has taken stock of
the country’s potential and created
nichemarkets for industriesand services
where Belize can compete effectively.
Opportunities inagribusiness,ICT,tourism
and finance keep investors coming.
In spiteof the fact that its location in
Central America and the Caribbean
allows it to take advantage of many
regional trade acts, Belize’s main
partner remains the United States.The
US is also the foremost investor, bringing in a whopping 80% of FDI.
What is it that keeps investors coming? Advantages in Belize include
fiscal incentives,minimal red tape, strong natural assets, Export Processing
Zones (EPZ) and Commercial Free Zones (CFZ) and dynamic financial
services. “One of our major challenges is trade with the onset of
globalization,” says Prime Minister Musa. “We are losing the preferential
markets we enjoyed in the past, such as the European Union for our
agricultural exports, andwemust becomemore competitive.”
Musa recentlyannounceda4%growth forBelize throughacombination
of debt restructuring and tight fiscal policies. Key to the success of the
government’s vision was the strong performance of exporters. 716,000
barrels of oil were exported by an Irish-US oil consortium in what may
become an important industry for Belize after recent findings in Spanish
Lookout.Agriculture, long themainstay of Belize’s economy,performedwell
in spiteof someunfavorableweather.
BELTRAIDE’s Executive Chairman Lourdes Smith oversees the
promotion, enterprise development and investment incentives in the
country, and she sees examples of new opportunities even in traditional
sectors. “Belize has a high potential for
agro-processing,” Smith points out. “But
there is no industry to can any of our
goods locally. We also encourage
investment in the by-products of our
commodities like fruit, or shrimp: their
remains can be processed into animal
feed.Then there is light manufacturing: a
company can come fromas far asAsiaor
Australiaandestablish itself inanEPZand
distribute todifferent nearbymarkets.”
Other niche sectors that Smith
would like todevelop include environmental goods and services such as
wooden furniture and handicrafts, ornamental flowers and organic and
eco-labeled foodstuff that are supportedby thenatural characteristics of
Belize.The InformationCommunicationTechnology (ICT) industry is also
growing rapidlywith softwaredevelopment,online gaming,offshoredata
processing and call centers profiting from the bilingual population.
Increasing awareness of “Made in Belize”premium products has driven
up demand for anything from local papayas to orange juice and eco-
tourism.Investors suchasMarieSharp,whocreatedabrandof international
pepper sauces in her kitchen and US fruit company Brooks are success
stories of Belize’s niche-orientedquality approach to competition.
Firms may be fully-owned by foreign investors and the repatriation of
profits anddividends is allowed. BELTRAIDEhelps potential investors find
their niches, establish themselves and minimize red tape; it is also
responsible for the management of the Fiscal Incentives Program, which
essentially grants import duty exemptions to companies operating in
Belize. Any investor in Belize also profits from its international trade
agreements: the country presides over SICA (the Central American
Integration System) until June, it is a member of CARICOM and of the
Caribbean Basin Initiative (CBI) program, which forms part of the U.S.-
CaribbeanBasinTradePartnershipAct signedby formerPresidentClinton.
Though a relative newcomer to financial services, the small nation has
alreadymanaged tocarve itself aniche in the sector:its InternationalBusiness
Companies legislation is viewedasoneof themostmodernworldwideand
itsTrust Law is also considered among the best.“Our financial legislation is
very updated, open and liberal, and seeks to protect confidentiality,” says
Prime Minister Musa, whose government has given fresh impetus to the
sector.“At the same timewehave stronganti-money launderingprovisions.”
“The advantages of Belize as a jurisdiction include our laws,” agrees
KarenAcosta,ManagingDirector of BayTrust Corporate Services Limited
(BTCSL).“We’re very competitive and the service is excellent. I think that
greater things canhappen for Belize in theoffshore industry. I thinkwe can
gomuch further and I thinkwewill.”
BTCSL was established five years ago by GlenWilson, who owns
another company in Switzerland.Though he travels often to Belize and is
themutual fundsexpert atBTCSL, it isAcostawhooverseesoperationson
a daily basis, concentrating mainly on the incorporation,management and
administration of companies and trusts: with more than 25,000 offshore
businesses and trusts registered in Belize since 1990, there is work to go
round. “There is a lot out there for everybody,” saysAcosta.“But we are
moreof a ‘boutique’company.We’re focusedonour clients and their needs
andwe’re happywith that.”
Al l Eyes on Bel ize
Ancient mayan Civilization, Altun Ha
