THA post-covid19 recovery committee wants agency to promote foreign investment

The Tobago House of Assembly-appointed post-covid19 economic recovery committee has recommended an investment promotion agency should be set up to attract much-needed direct foreign investment to the island.

The recommendation was contained in the committee’s 170-page report, which details a suite of proposals, across various sectors, to help rebuild Tobago’s tourism-based economy after covid19.

Chief Secretary Ancil Dennis appointed the 17-man committee, chaired by Dr Stephen Sheppard, in May 2020, three months after the national lockdown owing to the covid19 pandemic.

The team was given six months to complete its report. Dennis received the report in November, a month ahead of schedule.

It has since been circulated to chief administrator Bernadette Solomon-Koroma, THA secretaries and administrators.

Last September, in the throes of the pandemic, former Tobago Hotel and Tourism Association president Nicholas Hardwicke urged Government to create initiatives to attract foreign investment.

“What I am hoping is that the Government finds a way to expand the business space going forward and bring some initiatives that create a proper environment for further investment and to attract foreign direct investment. That seems to be the way to go,” he said.

Other entrepreneurs shared similar sentiments.

In its report, the committee said an investment promotion agency would target suitable foreign investors and be the link between them and the Tobago economy in the short and medium term.

It also called for greater collaboration with central government to amend the Foreign Investment Act to make direct foreign-investment flow into Tobago more inviting.

The committee recommended the creation of an investment policy that would identify key sectors and activities to be targeted for foreign direct investment.

It said there also needs to be research and improvement of the fiscal incentives currently offered to major investors, as well as streamlining the processes and procedures for foreign investors entering the Tobago market.

“The processes and procedures should also be easily accessible and available to both locals and foreigners.”

The committee also recommended a baseline assessment of the ease of doing business in Tobago to identify areas for improvement.

“The study must be conducted continuously to allow for further improvements.”

In the medium to long term, the committee recommended an aggressive investment marketing campaign to encourage first-time foreign direct investors and foreign direct investors from the large diaspora to invest in Tobago.

It said there can also be negotiations with the central government to use TT embassies, high commissions and consulates abroad to facilitate investment.

The committee noted the Tobago economy has numerous developmental needs but has failed to attract any significant level of foreign direct investment to address them.

It added the current business environment inhibits foreign direct investment.