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Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
Flow of investment capital from intra-regional sources / by ...
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Flow of investment capital from intra-regional sources / by ...

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  • 1. Flow of Investment Capital from Intra- Regional Sources Enid E Bissember Economic Intelligence and Policy Unit CARICOM Secretariat [email_address]
  • 2. Outline <ul><li>Introduction </li></ul><ul><li>Nature of Intra-Regional Investment </li></ul><ul><li>Sectoral Trends in Intra-Regional Investment Flows </li></ul><ul><li>Implications </li></ul><ul><li>Policy Recommendations </li></ul>
  • 3. Nature of Intra-Regional Investment <ul><li>Erratic </li></ul><ul><li>Discriminating </li></ul><ul><li>Scarce </li></ul><ul><li>Mobile </li></ul><ul><li>Highly sought after </li></ul><ul><li>Multi-directional </li></ul><ul><li>Responds to market opportunity </li></ul>
  • 4. Erratic Flows
  • 5. Intra-Regional Investment in the OECS
  • 6. Types of Intra-Regional Investment <ul><li>Portfolio investment </li></ul><ul><li>Direct investment </li></ul><ul><ul><li>Joint venture </li></ul></ul><ul><ul><li>Greenfield </li></ul></ul><ul><ul><li>Mergers and acquisitions </li></ul></ul>
  • 7. Scarce <ul><li>Largely from few Member States </li></ul><ul><ul><li>Trinidad and Tobago </li></ul></ul><ul><ul><li>Barbados </li></ul></ul><ul><ul><li>Jamaica </li></ul></ul><ul><ul><li>St Vincent and the Grenadines </li></ul></ul><ul><li>Behaviour similar to global TNCs </li></ul>
  • 8. Intra-Regional Investment Arena <ul><li>Major recipients are Jamaica and Barbados </li></ul><ul><li>Guyana, Suriname , the LDCs and the Bahamas not as attractive </li></ul>
  • 9. Discriminating flows
  • 10. Trinidad and Tobago intra regional investment 99-03 US$mn 9.65 Suriname 8.4 Saint Lucia 94.7 Jamaica 5.0 Guyana 0.45 Grenada 171.42 Barbados
  • 11. Attracting Intra regional Investments <ul><li>Large variations across countries </li></ul><ul><li>Variations across Sectors </li></ul>
  • 12. Sectoral Trends <ul><li>Banking and financial services sector </li></ul><ul><li>Distribution and trading </li></ul><ul><li>Food services </li></ul><ul><li>Tourism </li></ul>
  • 13. Sectoral Distribution of Intra Regional Investment <ul><li>Sunset industries -Primary sector lost in importance </li></ul><ul><li>New emerging areas of services dominant </li></ul><ul><li>Countries with low growth seems to be left behind </li></ul>
  • 14. Intra regional investors <ul><li>Intra regional investment undertaken by a few firms </li></ul><ul><li>Banking led by RBTT and Republic Bank Limited </li></ul><ul><li>Conglomerates led by ANSA McAL, Neal & Massy, Goddards , C L Financial </li></ul>
  • 15. Sample Areas of Operation of one TCC <ul><li>Automotive </li></ul><ul><li>Brewing </li></ul><ul><li>Chemicals </li></ul><ul><li>Insurance and financial services (including Merchant banking </li></ul><ul><li>Marketing and distribution </li></ul><ul><li>Manufacturing </li></ul><ul><li>Media Packaging </li></ul><ul><li>Real Estate Development </li></ul><ul><li>Shipping </li></ul><ul><li>Trading </li></ul>
  • 16. Concentration <ul><li>Tourism 4 firms </li></ul><ul><li>Banking and finance 4 firms </li></ul><ul><li>Food and beverages 4 </li></ul><ul><li>Conglomerates 6 </li></ul><ul><li>Manufacturing 1 </li></ul><ul><li>Transportation 1 </li></ul>
  • 17. Recipient countries of Intra regional investment in banking and finance <ul><li>Antigua and Barbuda </li></ul><ul><li>Barbados </li></ul><ul><li>Belize </li></ul><ul><li>Grenada </li></ul><ul><li>Guyana </li></ul><ul><li>Jamaica </li></ul><ul><li>St Kitts and Nevis </li></ul><ul><li>Saint Lucia </li></ul><ul><li>St Vincent and the Grenadines </li></ul><ul><li>Suriname </li></ul><ul><li>The Bahamas </li></ul><ul><li>Trinidad and Tobago </li></ul>
  • 18. Multi-Directional Flows <ul><li>MDC MDC -- JMMB into Trinidad and Tobago and Barbados </li></ul><ul><li>MDC LDC -- RBTT in Grenada </li></ul><ul><li>LDC LDC --Antigua Barbuda Investment Bank into Belize </li></ul><ul><li>LDC MDC -- OECS commercial banks into Barbados </li></ul>
  • 19. The Reality <ul><li>Not all countries have the same locational attractiveness </li></ul><ul><li>Benefits uneven </li></ul><ul><li>Operations are not integrated </li></ul>
  • 20. The TCCs <ul><li>Moving into branding e.g. RBTT </li></ul><ul><li>Ansa McAl </li></ul><ul><li>Republic Bank Limited </li></ul>
  • 21. Sample Direct Investment <ul><li>T.C.L. investments in Arawak Cement Barbados and Carib Cement Jamaica </li></ul><ul><li>Sandals investments in hotel properties in Saint Lucia </li></ul><ul><li>ANSA McAL acquisition of Bryden’s in Barbados </li></ul><ul><li>A.I.C. venture capital operation in Barbados </li></ul>
  • 22. Portfolio investment <ul><li>Trinidad and Tobago Unit Trust Corp. investment in equities of regional companies including National Commercial Bank of Jamaica and Grace Kennedy of Jamaica, B.S.&T and Sagicor of Barbados </li></ul>
  • 23. Joint venture <ul><li>RBTT and Guardian Holdings of Trinidad and Tobago together with Sagicor of Barbados investment in RGM </li></ul>
  • 24. Policy Recommendations <ul><li>Integrate the production process cross border </li></ul><ul><li>Increase competitiveness </li></ul><ul><li>Use trading arrangements more fully </li></ul><ul><li>Consolidate into larger units </li></ul><ul><li>Take advantage of the larger market created by the CSME </li></ul>
  • 25. <ul><li>Thank You </li></ul>

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