3 English Booklet - Final Copy

Carriacou and Petite Martinique

Ready For Investment

Country Profile

For additional information, please feel free to make contact with some of our offices below to schedule an individual consultation:

Embassy of Grenada

Tayuan Diplomatic CompoundT-5-2-52 Xingdong LuChaoyang DistrictBeijing, 100600. ChinaTel : +86 (10) 6532-1208Fax: : +86 (10) 6532 10105Email: [email protected]

Consulate of Grenada in Hong Kong

21/F, ICBC Tower, Citibank Plaza3 Garden RoadHong Kong, ChinaTel: +852-3656-2838Fax: +852-3656-2700

Email: [email protected]

Embassy of Grenada

123 rue de Laeken1st FloorB-1000 Brussels BelgiumTel: (32)- 2-223-7303Fax: (32)- 2-223-7307

Email: [email protected]

Grenada High Commission

The Chapel, Archel RoadWest KensingtonLondon, W14 9QHENGLANDTel: 011-44-207-385-4415Fax: 011-44-207-381-4807E-mail: [email protected]

Embassy of Grenada

1701 New Hampshire Ave., N.W.Washington, D.C., 20009United States of AmericaTel: (202)-265-2561Fax: (202) 265-2468Email: [email protected]

Website: http://www.grenadaembassyusa.org

High Commission for the OECS

130 Albert StreetSuite700Ottawa, OntarioK1P 5G4CANADATel: (613)-236-8952Fax: (613)-236-3042E-mail: [email protected]

Grenada Board of Tourism

P.O.Box 293St. George’s, Grenada,Tel: +1 (473) 440- 2279/2001Fax: +1 (473) 440- 6637E-mail: [email protected]

Web site: www.grenadagrenadines.com

Grenada Ministry of Trade

Ministry of FinanceFinancial ComplexSt. George’s, Grenada,Tel: +1 (473) 440- 2731Fax: +1 (473) 440- 4115E-mail: [email protected] Web site: www.gov.gd/ministries/environment/html

Grenada Chamber of Industry and Commerce

P O Box 129, St. George's, GrenadaPhone: +1 (473) 440-2937 or +1 (473) 440-8858Fax: +1 (473).440.6621

E-mail: [email protected]

Grenada Industrial Development Corporation

Frequente Industrial ParkFrequente, St. George’s, GrenadaTel :+1 (473)444-1035/-1040Fax :+1 (473)444-4828E-mail: [email protected]: www.grenadaworld.com

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Country Profile And Investment Guide

GRENADAThe State of Grenada includes its sister islands of Carriacou and Petite Martinique. Grenada is a former British Colony and is part of the Commonwealth. The island is 21 miles long by 12 miles wide and encompasses an area of 133 square miles.

Grenada is situated in the Eastern Caribbean, between Trinidad & Tobago in the South and St. Vincent & the Grenadines to the north. The international airport is called the Maurice Bishop International Airport. Major airlines with direct service to the island include British Airways, Virgin Atlantic Airways, Monarch Airlines, Condor Airlines, Air Jamaica and American Airlines.

Known as the Spice Island of the Caribbean, Grenada has more spices per square mile than any other country in the world, and is the second largest producer of spices in the world. The scent of spices permeates the air. The island offers some of the best foods in the Caribbean, as chefs make good use of the various spices.

Grenada has a population of 102,000 people and has a reputation of being a safe and friendly destination. It is an ideal destination for those seeking a relaxing tropical holiday. Grenada is increasingly popular for weddings and honeymoons, and visitors to the island must be resident for three days before they can get married.

Grenada has 45 white sand beaches and 9 black sand beaches, and offers some of the best beaches in the Caribbean. The best-known beach is the Grand Anse Beach, which is three miles of white sand. Water sports are plentiful especially diving. Grenada has the largest shipwreck in the Caribbean, offers some of the best diving in the region and has the only underwater sculptor park in the Caribbean. The islands many bays and sheltered anchorages make it one of the main yachting centers in the Eastern Caribbean.

Grenada has a diverse accommodation sector offering luxury hotels and villas, as well as self-catering apartments and intimate guesthouses, with prices to suit everyone. Most hotels, are within a 10-15 minute commute from the airport.

Grenada offers a pleasant year round average climate of 30C or 80F. No vaccinations are required to visit the island and the water is safe to drink.

The new Melville Street Cruise Ship Facility was completed in January 2004. The length of the main jetty overall is 400 meters or 1,312 feet, while the width is 12.5 meters or 41 feet. The facility includes a Welcome Center, Duty Free Shops and passenger loading areas for the tour buses and the taxis.

Grenada is one of the most beautiful and scenic islands in the Caribbean and many guidebooks state that the capital St. George's is the prettiest town in the Caribbean. The town is filled with well-preserved examples of French and English colonial architecture and is set on a hillside, which slopes gently down to the main harbour. Historic military forts, Fort George and Fort Frederick, offer panoramic views of the town and harbour.

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Why Grenada?Quality of LifeGrenada has one of the most pr is t ine phys ica l environments in the Caribbean and offers investors, tourists, migrant workers and overseas students a high quality of life, low crime, and a relatively un-spoilt natural environment. Energy consumption per capita and carbon emissions is relatively low and life expectancy is approximately 68.2 years.

The physical beauty of the country is complemented by its rich history, and vibrant living cultural heritage. The island’s easy rhythms and friendly openness of its hospitable residents evoke an atmosphere that has long since vanished elsewhere.

Political & Economic StabilityGrenada is a democratic state which is one of the most politically stable countries in the region. It has a Prime Minister and a cabinet (executive branch), and a bicameral Parliament with an elected House of Representatives and an appointed Senate (legislative branch). The House of Representatives has 15 members, elected for a five year term. The Senate has 13 appointed members (10 appointed by the government and three by the leader of the opposition). It is a member of the Eastern Caribbean court system. The Judiciary is independent of the executive and the legislature. Jurisprudence is based on English common law. The Privy Council of the United Kingdom serves as the highest appellate court.

There are two significant political parties, the ruling National Democratic Congress and the New National Party. Constitutional safeguards include freedom of speech, press, worship, movement, and association. Citizens enjoy a wide range of civil and political rights which are guaranteed by the constitution.

Economic StabilityThe country has grown, over the past 30 years - at an average annual rate of 3.4 percent. GDP growth in the 1975 to 2005 period (3.4 percent p.a.) was higher than in the more recent 1990 to 2005 periods (2.5 percent p.a.).

Despite the global financial crisis the economy grew by 1.6% in 2008 and expected to grow by 2% in 2009.

Labour productivity is relatively high. Grenada achieved an annual average productivity performance of 4.62 percent over the period 1981-2000, one of the highest productivity growth rates in the region. With a relatively young English speaking workforce and high levels of adult literacy (96%), the workforce is highly trainable. Approximately half of the workers of Grenada have a high school diploma and another 13 per cent have benefited from tertiary education.

Grenada is cost competitive. Electricity prices compare favorably to the regional average. The cost of broadband services for businesses has been falling. Tax rates on labour are low by regional and world standards. Minimum wage is competitive with other countries in the region. The cost of credit is better than the regional average and the cost of a standardized consumer-shopping basket is the second lowest in the currency union.

Grenada also has relatively low inflation and a stable exchange rate. Since 2000, Grenada recorded one of the lowest rates of price increases in the region averaging 2% per annum. In 2008, the country experienced a sharp increase, at an average of 8.2% in inflation, reflecting rising world food and fuel prices and U.S. dollar depreciation. The main factors driving higher inflation are increases in food (14.0%) and petroleum (24.7%) products prices. In 2009, inflation is projected at 4.5 percent reflecting lower oil prices and recession in the US economy.

Grenada has also improved in both the Institutional Investor Country Credit Rating and the World Bank Institute's Control of Corruption Index over the last year. InfrastructureGrenada’s basic infrastructure to support investment –sea and land transportation, electricity generation, telecommunications, and water-is quite well developed and is regarded as good and supportive of competitiveness by investors.

ElectricityAccess to electricity is very high and prices compares favorably to the regional average. With maximum peak consumption at 30 mw of power, the company has excess installed capacity of 19 mw of power.

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TelecommunicationsThe quality of telecommunication service is relatively good with fewer than 10 faults reported per mainline per year. The country also has good infrastructure to support digital opportunities.

The completion of a new fibre optic submarine cable linking Grenada and the rest of the Caribbean to the Internet backbone has allowed for increased international connectivity of up to 30 Gbps per fibre pair. Retail rates for high speed internet access and international calling have dropped by up to 50%.

Investment in digital infrastructure has open up new opportunities and attracted data and telecommunications dependent businesses. Recent significant investments in the mobile sector have improved the quality of mobile services in the country which is now up to 100% penetration. Competition in the fixed line market are now resulting in further reduced costs and increased services to all customers.

WaterClean, safe, pipe borne water is provided from a series of catchments, rivers and deep wells.

Port FacilitesGrenada has excellent port facilites. Its principal port in St. George's has berth capacity for three vessels or two mega ships, warehouse and bond storage facilities, and a container park. All commercial ports are currently owned by the Government of Grenada and managed by the Grenada Port Authority. There are eight smaller ports, including one in Carriacou.

The country has regular shipping links with major ports in the United States, Canada, Europe, and Asia, and is served by six international shipping lines. Notwithstanding broader transport services that build on basic infrastructure are critical.

AirportsGrenada is served with a 9,000 ft international airport. A small airport is located in Carriacou; both are owned by the Government. Carriers operating flights in and out of Grenada are predominantly from the region, but also from the United States, United Kingdom, and Canada. Air access from Europe is particularly strong.

Inland TransportationPublic transportation is available from 6:00 am to 8:00 pm. Taxi services and vehicle rental agencies are also available. The country has a 1,040-kilometre road web. Approximately 60 per cent are paved.

Human ResourceGrenada’s knowledge infrastructure is also relatively good. Public expenditure on education as a percentage of total government expenditure is higher than a number of other countries in the Caribbean region.

Trade & Investment OpportunitiesGrenada is one of the most open economies in the world. The regulatory environment that governs trade and investment is relatively free. The country’s economic

structure is highly diversified, based on the contribution of agriculture, manufacturing, tourism, construction, communications, transportation and government.

The manufacturing sector is small but remains important to the economy, manufactured goods accounting for around 47.6% of total exports. Exports are dominated by flour, paper, animal feed, roofing sheets and paint and varnishes. The main export destination for goods from Grenada is the United States, followed by OECS countries and the Netherlands.

The tourism sector, measured as a percentage of GDP (35.2 percent), is of greater importance to Grenada. Grenada currently has 1.7 percent of the cruise passenger ship markets and 1.9 percent of the stay-over market. Due to a lack of tourism product and new attractions, visitor expenditure is lower than many other destinations in the Caribbean. Grenada welcomes investments in these areas.

Grenada has become increasingly active in the area of international services. Overseas education, offshore financial services and ICT related business services offer great potential for development and growth. The government also welcomes proposals that could further develop hydro and geothermal energy resources that could reduce dependence on imported fuel.

Public and private sector investment in the economy is relatively high. Sustained public sector investments over the years have enhanced the physical infrastructure (e.g., airport, roads, educational facilities, etc.) and provide a good base for productive capacity to expand in the coming years. Some of this investment has been required to recover from recent natural disasters, but it has left Grenada with a very modern economic and social infrastructure.

FDI stock relative to the size of the economy is relatively high (195 percent of GDP). Foreign direct investment accounted for 60 percent of gross fixed capital formation in Grenada in 2007. FDI inflow increased from EC$262.9 million in 2007 to EC$340.9 million in 2008. Overseas investment has been predominately in the tourism sector (e.g. hotels) and the provision of infrastructure (e.g. mobile telecommunications). At present, there are several hotel developments planned or in the early stages of construction, though delays are being experienced due to the international recession.

The country has made significant progress in re-orientating its economy from agriculture towards a broad services based economy. While agriculture and manufacturing still plays a key role in the economy, services sector activities as a percentage of GDP and exports have grown rapidly in the past decade. Service activities now accounts for some 70% of GDP in Grenada

The country’s relative underdevelopment offers a wide range of opportunities that are not available in competitor countries. A vast range of interests is available for the development of hotels, tourist facilities, manufacturing, food and fish processing, and various service based businesses.


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Supportive Government PoliciesWithout prejudice to Grenada’s obligations under international treaties the Government grants most favourable nation treatment to all foreign investors and seeks to facilitate persons, either natural persons or legal entities, to invest in Grenada on the basis of mutual benefit and observance of the Laws of Grenada and the relevant International Treaties.

Investors are encouraged to freely invest and operate business enterprises in all fields of lawful economic activity. Few restrictions are placed on foreign investors. Investors may purchase or lease privately owned land and dispose of or transfer their assets in the land, open bank account, access foreign currency, import skilled workers, freely distribute their profits or dividends, benefit from fiscal incentives and the GIDC facilitation services to establish their operation. Doing business in Grenada is relatively easy. Grenada is ranked 84th in the world on the ease of doing business. Grenada score is enhanced in areas such as the ease of dealing with construction permits (16th), protecting investors (24th), starting a business (40th), employing workers (51st), trading across borders (63rd), getting credit (68th) and paying taxes (74th).

Economic Profile

GDP in Current Prices (2008) U.S $518.71 Mil

GDP in Constant Prices U.S $312.67 Mil

GDP Per capita U.S $4,837.44 Mil

GDP Growth 0.26%

Current Account Balance (2008) U.S $148.53Mil (-2.8 %)

Consumer Price Index (2001 = 100) (Avg rate) 1.6%

Exports (FOB) (US $'000): U.S $27,326.87 Mil

Imports (CIF) (US $'000): U.S $381.022 Mil

Balance of Trade (US $’000): U.S $-358.85 Mil

Principal Exports

Nutmeg, Cocoa, Mace, Fresh Fruits & Vegetables, Fish, Flour, Wheat Bran, Clothing, Paints & Varnish, Paper Products, Malt, Animal Feed, Beverages.

Principal Imports

Food & Live Animals, Beverages & Tobacco, Crude Material, Fuel & Lubricants, Animal & Vegetable, Oils, Chemicals, Machinery, Transport, Equipment and Manufactured Material.

Major Trading Partners

Imports:OECS-St. Vincent, Dominica, St. LuciaOther CARICOM-Jamaica, Guyana, Barbados, Bahamas, TrinidadOther Caribbean-Dominican Republic, CuraçaoEEC-UK, Germany, Denmark, France, Ireland, Netherlands, ItalyThe Americas-United States of America, Canada

Exports:EEC-United Kingdom, Germany, France, Netherlands, ItalyThe Americas-United States of America, ArgentinaCaribbean-Trinidad & Tobago, St. Lucia

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Political Profile Grenada gained independence from Britain in 1974 and is now an independent nation within the Commonwealth. Her Majesty, Queen Elizabeth II is the Head of State and is represented locally by the Governor General, who is appointed on the advice of the Prime Minister. Grenada has a Westminster Style Parliamentary form of government. The Parliament which exercises legislative power consists of the House of Representatives and the Senate. Executive power lies with the Prime Minister and his Cabinet. General elections are held every five (5) years.

Industrial Profile

Industrial Policies Purpose: to p rov ide a f ramework fo r bus iness development and growth Policy objectives:

• Attain sustained economic growth • Improve the country’s investment climate • Encourage increased levels of foreign and domestic investment • Develop Small and Medium Enterprises • Generate permanent employment opportunities • Create an expanded diversified export oriented business sector capable of delivering increase export earnings and job opportunities • Ensure economic development takes place in harmony with national environmental considerations • Alleviate poverty and reduce vulnerability. • Restore fiscal and debt sustainability

Small & Medium Enterprise DevelopmentGovernment recognizes that Small & Medium Enterprises can play a significant role in the development of the country by presenting a range of self employment opportunities to enterprising, independent persons, encouraging the utilization of local resources, stimulating personal savings, improving rural well being and facilitating a more equitable distribution of income.

Government envisage a modern small business sector capable of adapting readily to changes in technology and markets and utilizing current managerial and production techniques, competing effectively not only on the domestic market but also on the international market.

In this regard it is the policy of the Government (GOG) to provide the required impetus and allocate financial and technical resources to foster the creation of an enlightened and dynamic small enterprise sector.

This will be done through the following policy measures:• Investment incentives for qualifying small businesses • Legislation designed to strengthen the development of cooperatives • The design and implementation of entrepreneurship and skills development programme

• Technical assistance support to facilitate easier access to credit, capital, domestic and export market opportunities • Institutional strengthening of business support organizations to improve service offerings

Investment Promotion and Facilitation Government believes that active promotion is necessary to attract investment. In this regard, GOG has established, by an Act of Parliament, Act No. 2 of February 27, 1985, the Grenada Industrial Development Corporation (GIDC), as a virtual “One Stop” Investment Agency, charged with the responsibility for stimulating, facilitating and encouraging the development of industries

GIDC's core responsibility is to promote investment opportunities, facilitate the establishment and development of investment projects, faci l i tate smal l business development and provide policy advice.

Trade PolicyHistorically Grenada’s trade policy has been based on import substitution behind high trade barriers: high import tariffs and non-tariff barriers to trade. The trade policy however has evolved over time as a result of Grenada’s participation in international, regional and bi-lateral trade agreements and also as a result of an evolution in the government basic economic policies toward a more free market, private enterprise system.

The change in trade policies reflects a shift from import substitution to a more liberalized trading system that is oriented toward the global economy. The ongoing process of liberalization and globalization, of the world’s economy has had a strong influence on Grenada’s trade policy.

Environmental and Biodiversity policiesGovernment believes that the environment plays a central role in development, since it provides the natural resources – the air, water, soil, landscapes, ecosystems, and species – that support economic, social and cultural development and because without a clean and healthy environment the mental and physical well-being of people and society as a whole cannot be maintained.

Government policy is to provide a coherent framework to ensure that all development is environmentally sustainable, while optimizing the contribution that environment makes to the development of the country specifically:

• Maintain the diversity of ecosystems, species, and genes; • Maintain and enhance the natural productivity of ecosystems and ecological processes; • Optimize the contribution of natural and environmental resources to the production and trade of economic goods and services; • Optimize the contribution of natural and environmental resources to social and cultural development; • Prevent and mitigate the negative impacts of environmental change and natural disasters, and build resilience relative to these in accordance with Principles 8 and 9 of the St. George’s Declaration and in fulfilment of Grenada’s First


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National Communication on Climate Change; • Maintain and enhance the contribution of the environment to human health; • Fulfil regional and international responsibilities and capitalize on opportunities that accrue from regional and international networking.

Grenada has already formulated and adopted a number of important statements on environmental matters on specific issues and sectors, such as a National Biodiversity Strategy and Action Plan and a National Forestry Policy. The GOG also subscribes to all the major international statements of environmental policy, including the Millennium Declaration, the Plan of Implementation of the 2003 World Summit on sustainable Development, the Barbados Programme of Action and the St. George’s Declaration. These policy statements will continue to guide action and GOG policy in other economic areas.

Infrastructure development Government recognizes that the qual i ty and the cost of physical infrastructure is a major determinant of investment f lows and reinvestment, that good infrastructure attracts investment by connecting firms to their customers and suppliers, in effect enlarging the size of the market, and enables businesses to specialize and take advantage of modern production techniques and organizational structures.

Hence over the longer term, government policy is that the physical infrastructure such as transportation, utilities, and telecommunication facilities must be created for active private sector involvement in the economy.

GOG believes that private investors can ease the call on public funds to finance the country’s infrastructure maintenance and development needs. GOG has therefore largely deregulated and privatized the provision of infrastructure services, the exceptions being water supply and the post office. GOG has also chosen to delegate the management of some types of infrastructure projects to private investors.The Grenada Airport Authority was established and has exclusive right to manage, control and supervise the international airport at Grenada and the airport at Carriacou.

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The Grenada Ports Authority was established and has exclusive powers to provide, manage and maintain all port services and facilities throughout Grenada, Carriacou and Petit Martinique.

Grenada Electricity Services Limited was granted exclusive right to perform all functions in relation to the supply of electricity throughout the Tri- Island State until December 31 2073.

The National Water and Sewerage Authority is established and has the responsibility of providing the “public with a satisfactory supply of potable water for domestic purposes and a potable or otherwise satisfactory supply of water for agriculture, industrial and commercial purposes.”

Government recognizes that modern telecommunications are vital to the investment environment. They enable firms to communicate rapidly and cheaply with distant suppliers and customers, improving productivity. In particular, they underpin many service sectors, such as the financial, insurance and transportation markets. As the relative importance of the service sectors is rising, access to competitive, high quality telecommunication services has become, and will continue to be an important element of the investment environment.

Government also recognizes that transport infrastructure creates opportunities for firms to buy and sell in different markets and is a driver of globalization. With barriers to international trade falling and cross border commerce growing, the importance of an eff icient transport infrastructure to attract investors is increasing. Lower international transport costs would also spur trade, providing an additional stimulus to investment in other sectors.

Government policy is to reduce transport costs by paying attention to all transport modes and the linkages among the modes. Ports and airports, for example, are more valuable when served by good roads. Transport costs are also affected by indirect factors, such as whether telecommunications systems al low companies to track their goods in transit and how quickly goods are cleared through customs. In addition to developing new transportation links and services, maintenance and repair of existing facilities in Grenada is needed to ensure they

continue to function properly.

Human resource developmentIt has been recognizes that the education system has not performed well in terms of CXC pass rates compared to other OECS countries in either math or English, that the student teacher ratios are significantly above the OECS averages in both primary and secondary education; and that the level of teacher education and training is significantly below the OECS average.

Moreover it has been concluded that the education system is too oriented toward classical academics and does not prepare its graduates with the skills needed in the private business sector job market.

Government recognizes that human resource development is vital to the development of Grenada’s economy, society, and culture. It has also been recognized that human resource development has multiple dimensions, covering educational attainment, workforce skills, population health and employment policies that connect people to business enterprises with appropriate skills and the ability to adapt quickly to new challenges. Recognizing that each of these areas is a key driver in creating a favorable environment for investment and cannot be framed in isolation, the HRD policy takes full account of these policy linkages and Grenada’s implementation capacity. Special emphasis has been attached to the flexibility of the policy framework to respond to new skill needs created by changing technologies and economic structures and in this regard government has fostered close cooperation between policy makers and the main stakeholders: investors and labor.


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Labour

Labour & Policy LegislationGrenada has signed and ratified all International Labour Organizations undertakings and has enshrined these rights in its labor laws namely; the Labor Relations Act No1 of 1999 and the Employment Act No. 1 of 1999.

Grenadian law upholds the right of a worker to be represented by a trade union of their choice. There are no restrictions on the activities of trade unions as long as they operate within the parameters set out by the local labour law. The majority of the workforce is unionized and there is very stable labour relations atmosphere on the island.

Institutional Framework of Labour PolicyThe Government views the private sector as a composition of a number of stakeholders, private enterprise owners, labour, government, consumers, lenders and suppliers. Among these stakeholders; workers have inalienable rights based on their contribution to enterprise development, profitability and growth over the years. This viewpoint implies that Government policy is to ensure that workers are fairly treated in terms of wages and benefits, work hours, overtime pay, tenure of appointment, pensions, health and safety etc.

To institutionalize this policy the Government has formed a tripartite Labor Advisory Board composed of Government, Employers and Labour (as represented by the Trade Union Council) to advise the Government on matters such as the appropriate minimum wage by industry/sector, terms and conditions of employment, work holidays, dismissal, union certification etc.

Labour Policy in a Globalized EconomyIn light of the increased pace of global change and competition, the Government of Grenada has a policy of gradually merging some of the small and less effective trade unions as well as gradually trying to move the labor-employer interface from confrontation and at best negotiation towards a more cooperative basis.

Policy Towards Employing Foreign WorkersThe Government recognizes that foreign investors as well as Grenadian investors must seek expatriate workers to supplement the skills of Grenadian workers; if their enterprises are to be competitive. It is also recognized that in general; to import foreign workers and managers is more expensive than that of hiring Grenadians, hence all else being equal, investors have every incentive to hire Grenadians when possible.

T he Government of Grenada also recognizes special needs of foreign investors to employ expatriate workers from its parent company and its home country in positions such as general managers, accounting managers, chief financial officers and other key administrative positions. Hence, there is a policy in place for the granting of work visas and work permits to foreign workers.

Labour Force AnalysisThe labour force in Grenada is estimated at approximately 42,358 (2004) with a distribution by sector as follows: agriculture 13.8%, industry 14%, services 62% (1999).

Total 15+ Population by Education and Unemployment

Education Total Population

Total Labour Force Employed Unemployed Out of Labour

ForceUnemployment

Rate (%)Total 63064 41015 34786 6232 22049 15.2

None 1307 487 426 61 820 12.5

Primary<3 std. 782 322 303 19 460 5.9

Primary 3-4 std. 4780 2419 2260 159 2361 6.6

Primary 5+ std . 32573 21386 18016 3370 11187 15.8

Secondary comp. 11979 9214 7601 1613 2765 17.5

Secondary incomp. 6291 2970 2271 699 3321 23.5

Tertiary 3453 2803 2567 236 650 8.4

University 1154 932 913 19 223 13.1

Other 403 282 245 37 121 13.1

Not Stated 366 203 184 19 163 9.4


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Total 15+ Population by Age, Employment Status and Unemployment

Age Group Total Population

Total Labour Force Employed Unemployed Out of Labour

ForceUnemployment

Rate (%)Total 63064 41015 34787 6228 22049 15.215-19 8761 3482 2031 1451 5279 41.720-24 7265 6209 4610 1599 1056 25.825-29 6401 5694 4746 948 707 16.630-34 6630 5832 5025 807 798 13.835-39 6165 5197 4691 506 968 9.740-44 4515 3864 3556 308 651 8.045-49 4005 3277 3198 79 728 2.450-54 3609 2579 2383 296 930 11.555-59 2342 1395 1281 117 944 8.460-64 3288 1535 1460 75 1753 4.965+ 9828 1689 1647 42 8139 2.5

Not Stated 255 159 159 0 96 0.0

By OccupationLegal & Managerial 6.1%

Professional 2.1%Technical / Sub. Prof 9.6%

Clerical 9.4%Service / Sales Worker 15.5%Agriculture & Related 11.0%

Manufacturing & Related 20.0%Plant & Machine Operators 5.8%

Elementary 15.4%Unclassified 4.9%

By SectorW/Sale, Retail 18.2%Construction 14.8%

Fin. Inst. / Real Estate 3.8%Hotel / Rest 5.7%

Other Service 21.1%Agriculture & Related 13.8%

Manufacturing 7.4%Transport / Comm. / Storage 5.9%

Public Admin 5.4%Unclassified 3.8%

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Labour CostsAverage Monthly Wage Rates

Manufacturing US$ Tourism US$ Construction US$ General US$Cleaner 185 Waiter 296 Engineer 1037 Secretary 463Cutter 370 Bartender 296 Electrician 667 Clerk 333Handyman 185 Maid 259 Mason 520 Custom 463Operator 222 Chef 593 Carpenter 555 Manager 1200Presser 196 Cook 370 Labourer 296 Accountant 1037Supervisor 333 Gardener 222 Security Guard 296Mechanic 463 Housekeeper 222

Sector Profiles AgricultureAgriculture, which traditionally produces bananas, cocoa, nutmegs, and mace for export, has to been the mainstay of the economy. The sector has a large subsistence agricultural sector producing fruits, vegetables and livestock for the domestic, regional and internal markets. Banana exports have made a valuable contribution to the economic and social development of the country having benefited from preferential trading arrangements with the UK. Cocoa and nutmeg have been traded on the open market and invariably have been subjected to the vagaries of the external market forces. Grenada is the largest producer of nutmegs in the hemisphere and as one of the two major nutmeg producers, the other being Indonesia, has benefited enormously in period of high demand and/or limited supply.

ManufacturingThe manufacturing sector in Grenada is small but has grown significantly in recent years largely due to Government encouragement in the form of attractive incentives comprising tax exemptions and other facilities. The sector comprises activities such as the manufacture of soft drinks, beer, malt, stout, rum, wheat flour, animal feed, garments, paper products, paints and varnishes. Major export markets for manufactured exports are mainly UK, USA and the Caribbean countries.

TourismIn recent times there has been substantial foreign direct investment in new hotel plants mainly in the southern tourism belt of the island.

There are substantial opportunities in the Grenada tourist industry given the country’s resource endowment; a new cruise ship terminal, an increase in the number of flights to the island and the promotion of Grenada as a safe and peaceful destination for visitors and investors alike. The best prospects for investment are in the area of eco-tourism, up-market hotel plants, health tourism, villa tourism and tourism related services such yachting & marina development, sports, cultural and recreational activities.

Information Processing (ICT)Telecommunication services are considered to be the

main engine of growth in the Grenada economy for the medium term. Given the country’s English speaking population, it proximity to the US mainland, time zone affinity and excellent telecommunication network, the best prospects for investment in this sector in the provision of export services utilizing computers exclusively to process information and create value, such as - Software development and associated services, data processing, claims processing, order fulfillment operations, telephone and direct mail sales, computer aided design geographic information services, electronic publishing, voice center operations, remote secretarial services, customer and technical support services, indexing and abstracting services, research and technical writing services.

Incentives for InvestmentEntitlementThe following categories of business enterprises are granted investment incentives:

• Business enterprises carrying out a priority investment project • Business enterprises operating within priority industries/sectors • Business enterprises located within a priority geographic areas of the country

Priority Investment projects are projects which are in excess of EC$500,000 or employing in excess of 20 Grenadians and contributes the following to the Grenadian economy:

• Increase foreign exchange, either through exports or import substitution • Technology transfer/acquisition • Reduce dependence on imported energy • Enhance skills development and skill-based employment • The sustainable use of domestic raw materials, supplies and services • Incremental economic diversification with significant value-added • Linkages between emerging & traditional economic sectors

Priority Industries/Sectors are industries or sectors which Government considers will make substantial contribution to the socio-economic development of Grenada. These are:

• Tourism • Manufacturing


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• Agriculture, & Agri-business • Information Communication Technology (ICT) • Financial Services • Education & Training • Health & Wellness • Creative • Energy • Research and Development

Priority Investment Areas are geographic areas of the country which the government deems necessary to encourage investment. Government is in process of defining these areas.

BenefitsFiscal incent ives granted to qual i fy ing business enterprises are follows:

• Under the Income Tax Act • Investment Allowance of 100% of the cost of building, plant and equipment to be written off against taxable income for a period of ten years. • Tax credit of 15% of qualifying training expenditure (all projects) • Tax credit of 15% of expenditure for research and development (all projects) • Carry forward of 100% of assessed losses for five years (all projects) • Exemption from withholding tax on interest payments on initial loan financing • Exemption from customs duties, consumption tax, exercise tax under the Customs Tariff

Non Fiscal Incentives are as follows:• No restrictions on foreign ownership • No restrictions on foreign currency transactions • No restrictions on the repatriation of profits, capital and dividends • Double Taxation Relief

Quantifying Investment "Qualifying Investments" are as follows: SERVICES

INFORMATION COMMUNICATION TECHNOLOGY (ICT)• Data processing • Software development • Telephone and direct mail sales

OFFSHORE FINANCIAL SERVICES• International Business Company • Offshore Banking and Trust Fund • International Insurance

HEALTH & Wellness• Retirement homes • Health & fitness centers • Laboratories & diagnostic centers

EDUCATION & TRAINING FACILITIES• Technical & Vocational training facilities • Schools, college, universities

TOURISM• Hotels

• Villas • Condominiums/time share property • Restaurants • Marina • Attractions • Recreational facilities • Land and marine transportation service

CREATIVE INDUSTRY• Production of Films and Film strips. • Videos and sound recordings. • Digital media productions. • Printing and Publishing • Photography • Musical recording productions. • Magazine publishing. • Television productions. • Art and handicraft. • Festivals and carnivals. • Mass performers and designers. • Performing arts- Theatrical productions

MANUFACTURING

LIGHT MANUFACTURING• Electronic components • Pharmaceuticals • Grain mill (Flour) • Bottled water • Animal feed • Beverages • Tobacco • Leather products • Furniture • Paint • Garments

AGRICULTURE• Traditional Crops - Cocoa, Nutmeg, Banana • Organic Farming • Spice & Herb Farming • Fish Farming • Horticulture • Aqua-culture • Mari-culture • Hydroponics • Animal Husbandry

AGRO-PROCESSING• Fruit & Vegetable juices • Jams, marmalades or jellies • Cocoa products • Honey and honey products • Rum, wines and liquor • Beer, malt, stout • Flour, animal feeds, rice, bakery, products, pasta • Chilled, frozen or processed fish/shrimps • Poultry products • Production of Essential oils

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Financial Services IBC's, Offshore banking and trust fund, International insurance

Education & Training Facilities Technical & vocational training facilities, Schools, Colleges, Universities

Tourism Hotels, Villas, Condominiums/time share Properties, Restaurants Marinas, Attractions, Recreational Facilities, Water Sport Facilities

Health & Wellness Spas, Massage clinics, Retirement homes, Rehabilitation centers Hospitals, Medical facilities, Indoor and Outdoor Sporting Facilities

Energy Alternative Energy: (Wind, Solar, Geothermal), Oil Refinery & Natural Gas

Maritime Transport Freight, Cargo shipping

Information Communication Technology (ICT) Software Development, Data and/or Claims Processing, Order Fulfillment, Telephone and Direct Mail Sale, Computer Aided Design Geographic Information, Electronic Publishing, Voice Center Operations, Remote Secretarial Services, Customer and Technical Support Services, Indexing and Abstracting Service, Research and Technical Writing Services

Manufacturing Light ManufacturingElectronic components, Pharmaceuticals, Grain mill (flour), Bottled water, Animal feed, Beverages, Tobacco, Leather products, Furniture, Paint, Garments, and Handicraft.

Agro processingFruits & vegetables juices, Jams, marmalades or jellies, Cocoa products, Honey and honey products, Rum, wines, liquor, Beer, malt, stout, Flour, animal feed rice bakery products, pasta, Chilled, frozen or processed fish/shrimp, Poultry products, Essential oils.

Agriculture, Fisheries & Agro-Business cocoa, Nutmeg, Banana, Organic farming, Spice & herbs farming Fish farming, (Horticulture, Aqua-culture, Mari-culture, Hydroponics), Animals husbandry, Apiary culture

Research & Development Natural sciences, Engineering, Social sciences and Humanities Interdisciplinary research and experimental development services

Creative Industry Film, video and sound production (Feature films, Commercials, Tele films, Music videos, TV specials)

EXCELLENT INVESTMENT OPPORTUNITIES

Grenada is relatively underdeveloped and offers a wide range of opportunities that are not available in competitor countries. Investment opportunities are readily available across wide sectors for development including agriculture and manufacturing. Grenada also provides one of the most diversified tourism offerings in the Caribbean.Investment sectors are as follows:


3 English Booklet - Final Copy

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