Transcript BIDC_Emerging_Sectors4 - The Barbados Network Consultation 2016

BARBADOS NETWORK
CONSULTATION: PATHWAY TO
TRADE AND INVESTMENT
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Emerging Industries in Barbados
INTRODUCTION
The presentation will:
 Outline the major emerging sectors in
Barbados that are ready for investment;
 Map
supply and demand for these
emerging sectors in Barbados;
 Forecast market trends and growth;
 Outline some available Incentives
 Initiatives to grow the sale of Barbadian
goods overseas.
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THE BARBADOS INVESTMENT AND
DEVELOPMENT CORPORATION (BIDC)
 The
BIDC is the development agency of
the Barbados Government, with special
responsibility for export development and
promotion
and
facilitating
the
establishment and expansion of business
enterprises in Barbados. (Manufacturing
and Services sectors).
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THE BARBADOS INVESTMENT AND
DEVELOPMENT CORPORATION (BIDC)
 The
BIDC also administers Government's
incentive programme for industry and
provides a variety of free advisory services
for companies looking to become
established or to expand. Its main thrust
is to contribute to the diversification and
growth of the economy through new
investment,
increased
exports
and
employment
creation
through
its
interventions in the manufacturing and
services companies and the small business
sector in general.
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EMERGING SECTORS IN BARBADOS
There are a number of emerging industries
worth the investment of potential business
owners, these include:
 Health & Wellness;
 Animation & Film;
 Cultural Industries; and
 Alternative Energy and Technology.
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SUPPLY SIDE AND DEMAND TRENDS IN
BARBADOS
Health & Wellness (Supply):
 Public health services include: maternal and
child health; adolescent health; men’s health;
community mental health; dental health;
nutrition; general practice clinics; and
environmental health services such as food
hygiene, mosquito and rodent control;
 Fertility Centre.
Demand
 Beauty and anti-aging; especially cosmetic
surgery
 Alternative Medicine;
 Dental Tourism.
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SUPPLY SIDE AND DEMAND TRENDS IN
BARBADOS
Cultural Industries (Supply):
There is a strong supply of creative
industries in Barbados. The industry
comprises:
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SUPPLY SIDE AND DEMAND TRENDS IN
BARBADOS
Cultural Industries (Demand):
-More cultural films;
-More exports of the industry through the
utilisation of trade agreements such as the
EU-CARIFORUM EPA.
Animation & Film (Supply):
 In Barbados, animation and film is a new
and ever growing industry . The supply of
film, whether it be short-film or standard
films is satisfactory .
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SUPPLY SIDE AND DEMAND TRENDS IN
BARBADOS
Demand:
 According to director of the film Pay day
Mr. Selwyn Browne “We delivered an
unapologetic Bajan comedy and we got a
tremendous response from not only the
Barbadian public but also audience
in Trinidad and Toronto, Canada.”
 The demand for the industry has resulted
in the formulation of many incubator
programmes, such as Caribbean Tales
Incubator Program
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SUPPLY SIDE AND DEMAND TRENDS IN
BARBADOS
Alternative Energy and Technologies
Supply
 Solar energy
Demand
 Supply to help curb Barbados reliance on
imported fossil fuels.
 Investment in clean technology
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FORECASTED MARKET TRENDS AND
GROWTH
Health & Wellness
 Euro
Monitor International predicted
steady real term growth of 7.2% (current
prices), with global health and wellness
sales on the way to hit a record high of
US$1 trillion by 2017.
Cultural Industries
 Cultural industries sector is one of the
fastest growing sectors of the world
economy.
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FORECASTS MARKET TRENDS AND GROWTH
Animation & Film
 The global animation industry was estimated
at a value of US$222.8 billion in 2012.
 To quantify the potential for earnings in
Barbados, a .01 percentage share of the
animation market, using 2012 figures
represents earnings of over $22 million.
(Source: BIDC, 2014)
 PwC’s global outlook 2011-2015 predicts an
annual growth rate of 5.7% for the period
under review.
 Barbados is well positioned to increase its
share of that global production spend.
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FORECASTS MARKET TRENDS AND GROWTH
Alternative Energy & Technology
 Barbados has pledged to increase the
share of renewable energy across the
island to 29 percent of all electricity
consumption by 2029.
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INCENTIVES
Health & Wellness
 The International Business Companies Act,
has made it beneficial for foreign investors to
setup and operate medical transcription and
eyewear
manufacturing
facilities
in
Barbados.
 Tourism Development Act allows any health
and wellness tourism service company which
qualifies, to waivers of capital expenditure
and 150% of interest, exemption from import
duty, value added tax and environmental
levy in respect of furniture, fixtures and
equipment as well as building materials,
supplies and equity financing.
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INCENTIVES
Cultural Industries/Animation & Film
The Barbados Cultural Industries Bill 2013
provides for:
 the
establishment of a regulatory
framework to facilitate and encourage
 the sustainable growth and development
of cultural industries;
 funding for cultural projects; and
 duty free concessions and income tax
benefits in respect of cultural projects,
and for related matters.
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INCENTIVES
Alternative Energy
 Companies
manufacturing
“green
products”, are allowed to claim an annual
allowance of 150% of the capital
expenditure for the assets used in the
business;
 Section 12E.10 of the Income Tax Act,
companies
seeking
internationally
recognised environmental certification as a
testimony of their eco-friendly actions, can
claim a deduction of 150% of the
expenditure incurred in an income year for
the purpose of acquiring the certification.
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BUSINESS DEVELOPMENT ASSISTANCE
The BIDC in its commitment to supporting the
development of these sectors can provide :
 market intelligence
 technical assistance
 assistance in presenting products and services in
international markets,
 market development assistance,
 design assistance
 standard certification
 packaging and labelling assistance
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SALE OF BARBADIAN GOODS OVERSEAS
Products which have been able to
successfully compete overseas
 Food and Beverages; especially Rum,
Condiments (agro-processed products),
 Renewable energy,
 Chemicals,
 building materials (e.g. cement, solar
water heaters)
 printing and publishing
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SALE OF BARBADIAN GOODS OVERSEAS
 CARICOM
is the Major target market for
all of these products.
 North America and the UK are especially
important for the food and Beverages
sector where there is a large Barbadian
diaspora.
 Travel/Tourism - a great influence on
Barbadian exports
 Also targeted is the Latin American
market.
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SALE OF BARBADIAN GOODS OVERSEAS
 Major
challenges include Research and
Development to:
 improve
the goods and services within
the sectors,
 access the markets targeted,
 update the processes engaged in the
production of products and services.
 Companies are also constrained by the
need for working capital.
 Need to develop the capacity of their firms
in an effort to reach international
standards.
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INITIATIVES TO GROW THE SALE OF
BARBADIAN GOODS OVERSEAS
The way Forward.
 Need for investment in existing sectors
 Change in the way Barbadian goods and
services are traditionally exported.
 Greater involvement of Barbadian
overseas in the distribution of products of
Barbadian origin.
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INITIATIVES TO GROW THE SALE OF
BARBADIAN GOODS OVERSEAS
 For





example the condiments sector:
Need a state of the art production facility
Product development – new varieties of
Hot and spicy products
Private labelling for overseas markets.
Products shipped in bulk from Barbados
and repacked in overseas market.
Arrangements where owners of Barbadian
products can agree to have their ‘Labels’
produced in international markets.
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INITIATIVES TO GROW THE SALE OF
BARBADIAN GOODS OVERSEAS
 Active
involvement of Barbadians abroad
in the sale and distribution of Barbadian
products and services.
 Barbadian exporters need persons to
‘service’ the market on their behalf.
 Presence of Trade Officers in major cities.
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THANK YOU
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