Focus on high-growth industries, streamline business processes - Diaspora

With the biannual diaspora conference currently under way, members of the diaspora with an interest in investing in their homeland want the process to be streamlined and focus placed on businesses with the potential to boost gross domestic product (GDP) growth.

Dr Basil Wilson, former professor at the John Jay College of Criminal Justice in Manhattan, said that the country continues to focus on the wrongs things when it comes to growing the economy. He believes that the focus must be on the macroeconomy, attracting the types of business that will boost GDP.

Wilson also wants to see Jamaica form more strategic alliances to boost economic growth. He wants to see the island identifying goods and services that can be exported to the United States market.

Allan Cunningham, who is currently involved in a construction project in Trelawny, said that the turnaround time for setting up a company in Jamaica needs to be shorter.

“In the United States, you can register a company and have it up and running in three days. In Jamaica, you are looking at possibly three years. The information portals need to be updated to allow for accurate information. The Government must invest in the necessary technology to shorten the turnaround time for establishing a business in Jamaica,” he said.

Another area of concern for him is the financial climate in Jamaica. Cunningham said that it is very difficult to access money in Jamaica, especially via wire transfer.

“I am aware of the scamming, money laundering and corruption, but in a bank-to-bank transfer of funds, why does it have to take so long and such laborious paperwork that is required to access the funds?” he questioned.

He complained that this has adversely affected his business, particularly as it relates to paying workers and suppliers.

Cunningham also complained about “the diffcult and burdensome” process to open a bank account in Jamaica.

“In the US, you can open a commercial bank account in minutes, while, in Jamaica, it is very difficult and requires extreme paperwork,” he said.

He also took issue with paying a 25 per cent communication tax, describing it as unreasonable. It is his view that this hampers communication for doing business in Jamaica.

Cunningham also questioned why there is only one property tax rate across Jamaica. He believes that property tax should be based on the value of the property and not an across-the-board tax.

“Why should the homeowner in Portmore pay the same property tax as the person in Beverley Hills, where property value is higher?” he asked, while pointing to the general consumption tax as another area of concern.

Claudette Simpson, head of Intel Growers International, a company that seeks to bring landowners with interest in farming together, said that there are too many restrictions on setting up offices in Jamaica.

“If one does not have ties in Jamaica, it takes a very long time to get things done,” she said.

INVESTMENT IN JAMAICA

She also believes that tax concessions are needed to encourage investment in Jamaica. Simpson feels that the lack of such concessions scare off would-be investors.

“By giving such tax concessions, the Government is not losing anything, and it will bring more investors to the country,” she said.

She, like Cunningham, foresees incumberances to an easy setting up of operations in Jamaica, and pointed to port and transportation costs as other areas in need of major improvements.

Blain Stoddard, head of BFW Group, who is looking at investing in a candle-making business in Hanover, listed the level of customer service provided in Jamaica as an area of concern. Pointing out that there is significant potential for growth in Jamaica, Stoddart lamented that it is very difficult to do business in the country. He cited the lengthy time it takes to get a land title in Jamaica for starting up a business as another example.

He said that unless you know someone here, it is hard to get anything done in the normal course of doing business.

“Outside of tourism, customer service in Jamaica leaves much to be desired,” he said.

editorial@gleanerjm.com