CARICOM Unity is Key to Business Success

“When we discuss the Caribbean and we look at it, not many of our Caribbean states are older than 50 years. With their size, scale, and the inability to govern themselves in unison, the tribalism of the region is an impediment.” – Anthony Sabga III, Group Chief Executive Officer of the Ansa McAl Group of Companies.

It is this division Sabga believes hinders business development and growth in the region. Instead, he argues, working as one, towards a common goal will allow the region to benefit. For instance, having one regulatory framework, that is important rules, policies, and laws, would allow for easier trade within the region. Another example is the movement of skilled workers.

The current level of fragmentation within the various markets doesn’t lend itself towards a Caribbean that can collaborate in a far more meaningful manner towards the betterment and development of itself, he said.

According to Sabga and other regional business leaders, creating that cohesion and ease of business is the onus of Government. Adam Stewart, Group Executive Chairman of Sandals Resorts International, believes Government’s ultimate charge is to create the frameworks to make sure businesses can thrive, feel safe, and have a clear pathway for success. Without this, transacting business is too onerous. Obstacles to the free movement of trade and labour, often intended to protect markets at the local level, also hinder development, they say.

While the pandemic created greater collaboration and movement towards a common goal, making the Caribbean one of the most progressive regions, this has generally not been the case in Stewart’s opinion. And he believes that ultimately, attracting investments will come down to ease of business. He argues that taking protectionist stances may have unintended negative consequences: “Individual states tend to do what they think is right for them on a localised level, [but] the fact of the matter is…capital is going to go where capital feels safe and where it feels it can evolve and get a return.”

Creating the right environment is also critical to maintaining foreign direct investments (FDI) inflows as the Caribbean looks towards greater economic repair, growth, jobs creation and opportunities. Removing barriers or creating new frameworks such as free movement of trade signals to international investors and business owners that the Caribbean is a lucrative market. If the frameworks and thus the incentives are in place then the opportunities for investment would deepen, concluded Stewart.