Growth & Jobs | The Caribbean – a melting pot for investors

IN ALMOST all cases, a politically stable environment can be found throughout the Caribbean. Half of the islands that make up the region, for instance, are overseas territories of either the United Kingdom, the United States, the Netherlands, or France, while the other half are sovereign nations.

Although every island in the Caribbean has its own distinct economic features, there are a number of common characteristics shared among the different economies of the region. Much like the culture of Caribbean islands, each nation's economy is different.

Some islands are much more diverse than others, while others rely on foreign aid to keep them afloat. Nevertheless, many Caribbean nations share similar economic characteristics and challenges.

According to David Mullings, chief executive officer and chairman of Blue Mahoe Capital Inc, investors are always searching for yield and diversification.

“The Caribbean is overlooked and happens to be where I have work experience, so I invest where I understand. It is a plus that the four economies we are focused on – Bahamas, Barbados, Guyana and Jamaica – have excellent economic prospects. Investors in these countries also need to diversify and invest outside the region; so Blue Mahoe Capital, as a US-based company with investments and relationships in that country, can also facilitate this,” Mullings said.

Located in the centre of the Americas, the Caribbean provides the advantage of easy access to markets in North, South and Central America and serves as a bridge to European markets. Many countries in the Caribbean have preferential access to some of the largest markets in the world.

Most Caribbean countries have international airports that provide daily direct flights to the United States, Canada, the United Kingdom, and several other countries in Europe, as well as South America. Accessibility by sea via the world-renowned regional ports is also an advantage, allowing for easy access to raw materials and equipment.

“All developing countries have the same opportunities, including infrastructure, commercial, real estate, housing, ICT, energy, financial services, agriculture and outsourced services. The Caribbean is not unique, and it is a matter of investors investing in industries they understand,” Mullings said.

Investing, he said, is long-term and anything else is speculation, or margin-gathering. Investing requires patience, he said, like planting seeds and growing a crop that will bear fruit repeatedly for decades.

“All the opportunities are open to anyone, whether local, the diaspora or international investors. The key is being willing to pool the capital into appropriate investment vehicles and get the exposure in your portfolio,” Mullings said.

The Caribbean is known for its stable democracies and economic development. This provides the assurance of a secure location to do business and raise families. The Caribbean is known for its highly skilled labour supply, with an agreement that allows for the free movement of skilled labour within CARICOM. The peoples of the region also speak the key languages of English, Spanish, French and Dutch.

“No investment is ever guaranteed, even buying a government bond, as many Jamaicans know since the two debt exchanges. Risk cannot be removed; merely reduced. You reduce risk by understanding what you are investing in and doing research on the management team. In our case, we try to work with groups that have a track record of successful investments and then we co-invest with them,” Mullings said.

Blue Mahoe Capital, Inc has an SEC-qualified offering for persons in the United States, at US$10 per share, with a low minimum of US$500 to invest. The objectives is to list on the NASDAQ which would then allow anyone in any country to buy shares and get exposure to their portfolio as they grow their business.

Mullings, who announced at the recent 10th Biennial Jamaica Diaspora Conference plans to offer the first bond targeting the diaspora in the USA, UK and Canada in August 2024, also has plans to bring businesses to the Jamaica Stock Exchange.

“We are also planning to bring a minimum of two entities to the Jamaica Stock Exchange by the end of 2024, targeted to the local market to provide diversification to portfolios,” Mullings said.

His overall advice for investors is to only invest in what you understand; invest for the long-term, for 10 years or more; and make sure that the management team feels more pain than you if things go south, because that ensures alignment.

“Too many people are trying to get rich quickly and spend very little time understanding how investing works, depending on the type of instrument they buy. Knowledge is power, so seek knowledge and study the most successful investors,” Mullings said.

Mullings will share the stage with Michael Lee-Chin at the Realign Business Conference on July 23. To learn more, visit www.entreppartners.com .