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Jamaica is pushing forward with its plans to become a global logistics hub and is anticipating many economic benefits from the endeavour. The push is being made by Industry, Investment and Commerce Minister Aubyn Hill, who says Jamaica stands to benefit significantly from the country’s bid to become a global logistics hub through the expected investments in special economic zones (SEZ) being developed across the island. SEZs are areas within a country that are created to facilitate rapid economic growth, by leveraging tax incentives as a way of attracting foreign investment and technological advancement. Logistics services are strongly associated with trade expansion and export diversification. Citing the example of countries such as Singapore, Israel and Qatar, with relatively comparable populations but significantly higher gross domestic product (GDP) per capita than Jamaica, Hill argued that Jamaica cannot attain economic wealth by limiting output and markets. He said the initial investment from local businesses to facilitate the recommended activities, paired with existing incentives offered through the Jamaica Special Economic Zone Authority (JSEZA), plays a part in making Jamaica attractive to international investors. From June 13 to 17, Jamaica will host international investors and freezone operators at the World Free Zones Organization’s Annual International Conference and Exhibition in Montego Bay, St James, with the aim of securing investments for the country. Ramping up logistics services The minister cited the need for ramping up services in logistics, noting “we (Jamaica) need to export a lot more, but it’s important that we export not just goods but also services. What local businesses must do, if we are going to change from three million people with a small per-capita GDP to three million people with a rich per-capita GDP, is that people who trade must now look to invest in our country to manufacture, build, package, repackage, assemble things and provide services that we sell to the world”. Gary Scott, acting chief executive officer of the JSEZA. For his part, Gary Scott, acting chief executive officer of the JSEZA, highlighted that linkages established through the Authority will ensure that the local economy benefits as a result of the incentives provided to the multi-national companies. He explained that when these multi-national corporations are operating from Jamaica, they are purchasing certain goods and services from the local economy. As such, the incentive scheme that the JSEZA established under the Special Economic Zone Authority removes things like general consumption tax (GCT). According to the JSEZA acting CEO, “it is not because [we want] to not have zone operators pay GCT; it is to encourage purchasing more of the goods and services from the domestic territory. So, what we are ensuring is the building out of linkage programmes that will allow for the companies in the zones to interact more freely with companies outside of the zone and purchase goods and services”. Post-pandemic opportunities In the meantime, Scott pointed to post-pandemic opportunities, saying Jamaica has been presented with the opportunity to maximise on pharmaceutical supply chain needs, which were heightened during the COVID-19 pandemic. “From what we have heard, there are a number of investors worldwide… that are looking for their next location to establish their ability to provide supplies and support to the largest consumer markets, which are the North American and South American markets,” Scott noted.

Guyanese and Jamaican private sector interests have pledged to increase trade and investment activities in both countries. Foreign Secretary Robert Persaud today met with the Minister of Industry, Investment and Commerce of Jamaica Aubyn Hill who is currently leading an Export and Investment mission in Guyana from 12th to 15th May 2024. Minister Hill is accompanied by representatives from the Jamaica Promotions Corporation (JAMPRO), Jamaica Special Economic Zone Authority (JSEZA) and Jamaica National Agency for Accreditation. During the meeting, the two sides underscored the importance of enhancing trade and investment opportunities between Guyana and Jamaica and stressed the need for greater collaboration and cooperation between the private sectors of both countries. The visit by Minister Hill and his delegation is therefore a positive step in this direction, in light of Guyana’s economic trajectory. Foreign Secretary Persaud assured that the Government of Guyana is open for investment and is keen on expanding its trade relations with countries in the CARICOM region, with the aim of strengthening regional trade and achieving food security. During his visit, Minister Hill will be meeting with government ministers, officials and members of the private sector to discuss areas of future collaboration in export, trade and investment. Source:https://dpi.gov.gy/guyana-jamaica-eyeing-stronger-economic-ties/

The Full Story Following fruitful discussions with Senior Executives of Emirates Airline, Minister of Tourism, Hon Edmund Bartlett says plans are underway to leverage the airline’s routes and networks into the Caribbean and Latin America. Emirates Airline, based in Dubai, is one of the world’s largest airlines that connects its customers to a network of over 150 destinations. Based on the airline’s current flights to Miami and new flights slated for Bogota, Columbia are critical to better integrating Jamaica and the Caribbean into their network. There is also a medium-term vision of the Minister to secure firmer arrangements with the Caribbean and the airline in the form of a hub creation. “This is a further step increasing the connectivity between Emirates and the Caribbean as the airline looks to deepening its presence in the region. In the medium term, through a hub and spoke arrangement, there can be a fruitful partnership that would see more visitors from the middle east visiting Jamaica and the Caribbean and vice versa,” said Minister of Tourism, Hon Edmund Bartlett. Through strong code sharing partnerships with other airlines like Avianca, Copa and Caribbean airlines, Emirates would have several options of increasing its footprints in the region. “The time is right for us to tap into the regional partnerships being created through Emirates and Jamaica is ready to be inserted within the future logistics of the airline to get more from the middle eastern market. This would be a game changer for the destination,” said the Minister. Jamaica welcomed over twelve hundred visitors from the middle east last year as the island continued its post pandemic recovery and growth. The Emirates partnership will play a critical role in enabling mass visitors from the middle east to come to the island. Discussions on this possible partnership were held during Arabian Travel Market, held May 6-9 in Dubai, the leading global event for the inbound and outbound travel industry in the Middle East. Source JIS: https://jis.gov.jm/jamaica-further-engages-emirates-airline-to-tap-into-their-network-in-the-caribbean-from-the-middle-east/

The Full Story The role of Special Economic Zones (SEZs) in sustaining Jamaica’s low unemployment rate, which fell to a record 4.2 per cent in late 2023, is being underscored by the State entity promoting and facilitating investments in SEZs. These zones have emerged as vibrant hubs of commercial activity, driving employment opportunities and facilitating knowledge transfer across multiple sectors. This comes against the background of ongoing efforts to foster innovation, embrace technology, and prioritise the growth of Jamaica’s workforce through strategic partnerships and forward-thinking initiatives. Speaking recently during the Jamaica Information Service (JIS) ‘Get the Facts’ television programme, Chief Executive Officer, Jamaica Special Economic Zone Authority (JSEZA), Kelli-Dawn Hamilton, informed that as the agency ventures into new frontiers of business and embraces technological advancements, “our priority remains steadfast”. “The objective for us is really to work with the different entities of government and our private-sector partners to ensure that, as we get into these new areas of business [and] identify more innovation and use technology in how we grow our businesses, that we’re also creating a space for Jamaican employees… for the Jamaican workforce,” she stated. Mrs. Hamilton added that through collaborations with institutions like the Caribbean Maritime University (CMU) and HEART/NSTA Trust, “we are strategically planning for the future, [by] identifying key industries poised for growth within our SEZs”. One such is the Global Digital Services Sector (GDSS). Recognising the integral role of the GDSS, Jamaica has transitioned towards higher-skilled operations within this domain, positioning itself as a leading player on the global stage. Mrs. Hamilton pointed out that by leveraging its strategic location, skilled workforce and business-friendly policies, Jamaica has become an attractive destination for companies seeking to establish a presence within SEZs. Souce JIS:https://jis.gov.jm/sezs-role-in-generating-jobs-and-sustaining-low-unemployment-underscored/

The Full Story The Caymanas Special Economic Zone (SEZ) in St. Catherine will be transformed into a mini municipality once fully developed, says Jamaica Special Economic Zone Authority (JSEZA) Chief Executive Officer (CEO), Kelli-Dawn Hamilton. She disclosed this during a recent Jamaica Information Service (JIS) ‘Get the Facts’ television programme. The transformative project, being led by the Port Authority of Jamaica (PAJ), is poised to become a dynamic 650-acre development, strategically designed to accommodate industrial, manufacturing, warehousing, and cold storage operations. With a vision to establish a vibrant mini municipality, the SEZ will seamlessly integrate commercial and residential spaces, ensuring round-the-clock activity to support a thriving ecosystem. Mrs. Hamilton told JIS News that the main aim is to create a space where “there is activity happening right throughout the day and night to support that whole ecosystem, and to really maximise the 650 acres where we intend to drive transformation in Jamaica”. Regarding warehousing solutions that the space will provide, she said there is increasing demand for this provision locally and internationally from “companies that want to take advantage of the opportunity for nearshoring in Jamaica”. The CEO elaborated on the diverse opportunities offered by SEZs in general, including plans for specialised zones dedicated to the creative and sporting industries. “We want to do a Creative Industries Special Economic Zone where companies can come and film and have their film productions from start to finish done right here in Jamaica. We [also] want to build a Sports SEZ, alongside the Ministry of Culture, Gender, Entertainment and Sport, where you have teams that have to train in cold climates come to Jamaica and train,” she explained. Mrs. Hamilton pointed out that these business opportunities are in alignment with Jamaica’s strengths in film production and sports training, further enhancing the country’s global reputation in this regard. As the island continues to foster business growth through collaborative public and private-sector efforts, Mrs. Hamilton is declaring that “Jamaica is open for business and ready to facilitate!”. Consequently, she invites local and global stakeholders to come on board and “help us to achieve the vision that we have of making Jamaica the Logistics Hub, rivalling global ports across the world”. Source JIS:https://jis.gov.jm/caymanas-sez-to-be-transformed-into-a-mini-municipality/

The Full Story The Jamaica Special Economic Zone Authority (JSEZA) continues to make positive strides in the development of Jamaica’s resilient Logistics Hub Initiative. This strategic endeavour is poised to revolutionise the region’s economic landscape by leveraging Jamaica’s geographic location and fostering collaboration among Caribbean nations. “We are right at the centre of the world and if you know anything about us being ‘likkle but tallawah’, we punch above our weight in so many different areas and so what we want to do is to capitalise on that,” said the agency’s Chief Executive Officer (CEO), Kelli-Dawn Hamilton. On a recent Jamaica Information Service (JIS) ‘Get the Facts’ television programme, Mrs. Hamilton pointed out that coupled with our resilient spirit, Jamaica’s location as a pivotal point in global shipping routes positions it as a formidable force on the world stage. She said that the Initiative is a testament to Jamaica’s commitment to harnessing innovative technologies and collaborative practices to thrive in a post-pandemic world. Mrs. Hamilton said by embracing concepts such as ‘friendshoring’ and coopetition, Jamaica is fostering synergistic relationships within the Caribbean Community (CARICOM), “because we’ve recognised as countries that we can’t go it alone. We must work together to leverage our competitive advantages”. The CEO also acknowledged that while efforts are being made to further strengthen the Logistics Hub infrastructure, several factors must be taken into consideration for sustainable economic growth that benefits all Jamaicans to be achieved. Mrs. Hamilton said that how goods and services move and are paid for, as well as what infrastructure is in place to facilitate trade (airports, seaports, and road networks) and e-commerce activities (online payments and internet access) must be taken into account. Integral to the success of the Logistics Hub, the Initiative has also extended its benefits beyond established businesses to empower local entrepreneurs and suppliers, catalysing a ripple effect of economic opportunities throughout the island. “In order to be a logistics hub… we are not just talking about the activities that usually drive the hub, such as trade, but the supporting activities that must be in place in order to allow that to happen,” Mrs. Hamilton highlighted. “We’re talking about the man on the street who could benefit from this increased economic activity [and] suppliers who can now supply to businesses that didn’t exist before,” she added. Moreover, a part of building out the hub includes the people who will be on the ground to take advantage of the job opportunities that will come into play. As Jamaica asserts its position as the logistical nexus of the Caribbean, the Logistics Hub Initiative stands as a true testament to the nation’s resilience, innovation and commitment to inclusive economic development.

MONTEGO BAY, St James — With more than 2,000 acres of land needed to develop four special economic zones (SEZs) within the next 24 months, CEO of the Special Economic Zone Authority (SEZA) Kelli-Dawn Hamilton on Thursday urged realtors to help her and her team identify suitable locations across the country. “We need the realtors to help us to connect the properties. We have the business opportunities, we have the potential projects. We have access, through entities like Jampro, to investors; we just need the land to do it. We all need to work together to realise the opportunity that the special economic zone creates,” she said. She was speaking with the Jamaica Observer after a session on ‘Exploring Opportunities in Commercial Real Estate’ during the first day of International Real Estate Conference (IREC) 2024 being held at the Montego Bay Convention Centre in St James. It was a message she had delivered to realtors earlier as a panellist during the discussion. According to Hamilton, the SEZA is working to break ground for four new projects within the next 18 months to two years, saying that the feasibility studies are now being developed. “They’re all new. We want to create a pharmaceutical special economic zone. The other one is a Silicon Valley-type zone where we’re looking at creating a global digital services large-scale municipality. Then we’re looking at capitalising on our success and experience in film. So we want to do a media city where we’re building out film production facilities, training centres, where we’re doing merchandising, so manufacturing could be encompassed there as well,” she explained. “And then, of course, sport. We want to create a zone where persons can come in, train when they have cold weather in their country of origin…We want to develop a stadium as well, merchandising, manufacturing facilities, research and all the things that go into developing a sporting ecosystem,” Hamilton added. They need 1,082 acres of land for the pharma SEZ, between 300 and 400 acres for the one dedicated to global digital services and sports, and another 412 acres for the media city. She stressed that there were also opportunities for smaller sized lots. “When you look at the landscape of Jamaica now it is changing. Literally, the skyline has changed. You’re seeing a lot of commercial properties going up, residential as well. So what we’re saying to persons who are doing commercial, check the authority, check what incentives are available to you as you create these opportunities for businesses. We want to work with you as well,” the SEZA CEO urged. “So we’re really here today selling the opportunity for our concept projects, but also for people who may not have 300 or 400 acres of land,” she added. In her pitch to realtors, she reminded them of the benefits their clients could access by being part of an SEZ. “For the developer who’s building out, their corporate income tax rate on their rental income is zero per cent. For the occupant who is operating within the special economic zone, their corporate income tax rate is 12.5 per cent and that goes down to 7.75 per cent. They pay zero per cent, GCT, and they pay zero per cent on their duty,” said Hamilton. According to her numbers, 145 companies in 195 locations are now operating under Jamaica’s SEZ regime. “There is no one place that companies have to be located to be in an SEZ, they can be anywhere; and we’re here to facilitate business,” said Hamilton. IREC 2024 continues on Friday with sessions that will look at real estate as a catalyst for growth, real estate success stories and the future of real estate in Jamaica. A free-to-enter Home Expo component begins on Friday as well and continues into Saturday. In its second staging, the conference is being hosted by the Realtors Association of Jamaica after a five-year hiatus after it debuted in 2019. The event has brought together major players from the sector and will also include closed door sessions, for realtors only, which will explore topics including training and certification.

The Full Story Businesses looking to optimise their supply chain operations and expand their global reach are being urged to take advantage of benefits available through the Special Economic Zone (SEZ) regime. The Zones, which are governed by the Jamaica Special Economic Zone Authority (JSEZA), are designated areas across the country that offer special tax benefits and fiscal incentives, regulations and infrastructure to attract foreign and domestic business. The objective is to stimulate economic growth, boost employment, and encourage innovation by providing an environment conducive to business expansion. As of October 2023, there were 190 SEZ locations across the island, comprising 80 developers, 68 occupants and 42 Zone users. JSEZA is promoting the SEZs as the ideal choice for business and will be conducting a series of tours across several zones to highlight their achievements and capacity to provide investment facilitation services. Speaking with JIS News, Director of Investment Promotions and Communication, JSEZA, Kevon Farquharson, points out that the SEZs are a key part of Government’s mission to position Jamaica as a strategic hub for global trade and commerce. He notes that “While the JSEZA focuses on developing several other industries, special emphasis is being placed on logistics because it is one of the major activities that contribute significantly to the SEZ regime.” Director, Investment Promotions and Communication at the Jamaica Special Economic Zone Authority, Kevon Farquharson. Mr. Farquharson says that logistics are crucial for facilitating the efficient import and export of products and services, enabling firms to effectively engage in international commerce. One such logistics service provider is Kingston Freeport Terminal Limited (KFTL), which facilitates the movement of containerised cargo on and off the port for the transshipment and domestic markets. “We are predominantly a transshipment hub, which accounts for around 90 per cent of our business, but also the main gateway for full containerised cargo for the domestic market, which accounts for the remaining 10 per cent,” KFTL’s Chief Financial Officer (CFO), Brandon Lee, tells JIS News. Chief Financial Officer (CFO) at the Kingston Freeport Terminal Limited, Brandon Lee. Having joined the SEZ community in 2020, KFTL has come to benefit from several opportunities provided under the SEZ regime. “What the special economic zone provides for us is what I like to call financial benefits, allowing a company like KFTL to compete with these other regional or international companies. Fortunately for us, through the fruitful partnership between the entities, we have been able to capitalise on most, if not all, the benefits which the SEZ provides,” Mr. Lee shares. These include a reduced rate on Corporate Income Tax, exemption of Customs Duties on imported items and zero per cent General Consumption Tax (GCT) on goods and services purchased locally for use within the zones. The CFO says that “while KFTL is [situated] in a good geographic location, we do have competition in the region… and these benefits allow us to compete with other players”. Detailing the company’s experience since becoming an SEZ, Mr. Lee shares: “We have had a good working relationship with the JSEZA. The team has certainly taken a hands-on approach in getting the onboarding done efficiently and if there are any queries, they are always available to answer.” Furthermore, a robust regulatory framework within SEZs has been established to ensure a transparent and predictable business environment. This regulatory framework not only provides a sense of security for logistics companies, but a sense of satisfaction knowing that “we can reap the benefits outlined in the Act while having our queries addressed in a timely manner”, Mr. Lee told JIS News.