Executive Chairman (BELTRAIDE)

Q-For our readers, tell us what BELTRAIDE does?

A-BELTRAIDE, is the Belize Trade and Investment Development Service. It’s a statutory body which falls under the Ministry of National Development, Investment & Culture, particularly under the portfolio of investment. What we do is investment promotion, business facilitation, export promotion and marketing we’re also responsible for the management of the Fiscal Incentive Programme that the government offers both domestic & foreign investors. We’re considered a one-stop shop. We work with small & medium enterprises through a system in their development & growth. Hand-holding them in some instances to grow from a small business,a micro business, getting them export ready of course, first satisfying domeswtic market and them going to the international market.

We’re basically a small office we work with 2 departments. Export Promotion & Marketing is one department. Investment Promotion and Business Facilitation is the second one.

Q-Is it private?

A-It’s a statutory body. It’s a special organization. Technically we’re public sector but we operate independent of the ministry in that we have our own budget and manage our own budget. The ministry works through the Central government’s financial mechanism so we have a little more leeway. We work through the BELTRAIDE Act that governs what we do and we have a board of directors. We’re also the liaison between the private and the public sector. We recommend policy in the area of investment and trade promotion, or in general to the government. Our board of directors is made up mainly of private sector members, from the Belize and American Chambers of Commerce, the Belize Business Bureau, the Small Business Association, Civil Society and other individual entrepreneur. Along with others that are on our board, the Ministry of Agriculture and myself Investment.,

Q- How did you get to BELTRAIDE?

A- I come from an entrepreneurial background we have started business number 5. I’m also the past president of the Belize Business Bureau, (BBB) I served two-terms (4 years) The BBB represents the productive sector , goods & services primarily from the Small & Medium Enterprise (SME) and so it was in line with what BELTRAIDE does as well As I’ve had a lot of exposure in that area. So I was asked to come in 2003 to be the Chairman of BELTRAIDE. I’ve been on the board since its inception, representing the BBB so I was very familiar with the workings of BELTRAIDE so I think that’s why I was asked. I’ve completed three years of my 4-year contract with BELTRAIDE so I have one more year left. I think BELTRAIDE has come a long way now. We’ve been doing over the last few years what I term as building the infrastructure; doing the necessary studies so we can have supporting information and justification for doing things a certain way. We’ve done a Priority Sector Study, we’re currently doing a National Export Strategy, we’re working on a Pan-Caribbean Project which is funded through the Commonwealth Secretariat and that involves development of a national policy for the development of SME. So there’s various things we’re working on. This year will be starting a Network Brokers Programme that will help SME’s to work with clusters and then network companies so that they can improve their competitiveness.

Q- If I’m an international investor and I wish to run my own company here what are the facilities, services that I will have?

A- At BELTRAIDE We have a Belize Investment Guide that we’ll provide you with and we have a web site that offers guidance on the statistics and the procedures . We’re also working on an investor’s manual which is a how-to, depending on the type of business you want to start, be it agro processing, tourism industry it will give you a step by step guide.
The first thing that you do, the second and all that’s entailed, exactly where to go etc.

And that’s what BELTRAIDE does. You come to us we will walk you through starting your own business. From registering your company, we can give you a list of attorneys that you can go to or professionals that can draw up the paperwork for incorporating your company here. We have a list of reputable people who can do the job as opposed to we saying, go to anyone, we don’t do that.

Q- Is it the same for national and international investors?

A-Access to them yes. The Fiscal Incentives Programme is open to both investors. There is an amendment to that legislation it was created for the SME , that is for low investment levels. To take part in that it has to be 51% Belizean owned because it’s for investment under U.S.$150,000, IT’S A SMALL INVESTMENT BUT IT’S TO ENCOURAGE DEVELOPMENT OF ENTREPRENEURSHIP IN BELIZE. It could also be 100% owned Belizean. Under this programme the concessions are granted for 2 years.

If the project is agriculture related the concession can be up to 10 years, it depends. The government concessions right now are mostly for duty-free importation; import duty, stamp and revenue replacement exemptions. One still has to pay the Sales Tax and the Environmental Tax at 2%.

Q- Where are the investment opportunities in Belize? (For a local and a foreigner)

A-We identify agriculture, tourism, agro processing, international financial services, manufacturing, light manufacturing, particularly furniture manufacturing as the priority area and information and communication technology, these are the top area. In the area of tourism we’re particularly looking for investments targeting 4 and 5 star hotels because we have a lot of other 40, 20-room hotels and we need to encourage investment that will be attracting the high end tourism. The expansion of the airport is also part of the strategy. We want to attract more tourism from Europe in order to accommodate flights coming in from across the Atlantic we need to have a longer runway and better facilities at the airport. We don’t want that you have to go through Miami to come to Belize we want to make it easier for you to travel to Belize. So it has to be hand in hand , the expansion of the runway to accommodate the trans Atlantic flights and we can then encourage airlines to put in a direct flight to Belize.

Then there’s the cruise tourism. Although they only have about 6 hours they want to go and see the Maya Ruins or tubing, snorkeling. The reefs are visited and the ruins are visited but there’s need for more diversity.

Q- Tell us about what’s going on in agriculture?

A-What we’re promoting is for niche markets. Investments in agriculture-traditional agriculture to value add to the traditional and non-traditional agriculture and processing because that will always generate more revenue for the country.

Q-How?

A-Because if you process a product you get more money than if you sell it as a raw material or a primary product. So we’re also encouraging investment in value added product. We need more investment in the traditional agriculture commodities that we sell such as sugar, citrus; simply because the sugar factory requires a higher output for it to be more efficient.

The same for the citrus company they’re not operating at maximum capacity so in order for the economies of scale and deficiency we need to have more product going in so we’re still asking that yields be increase and maybe to plant more. We’ve seen growth in the citrus industry and so we need to show the cane farmers up north. It’s a big challenge because people are very resistant to change, that’s normal.

In addition we’re trying to see where we can value add. For instance with sugar let’s start packaging the sugar instead of selling in bulk. In sugar we’re now selling to the Caribbean. We can value add here. In citrus we’re also exporting to El Salvador, that’s a new market. We currently sell to the UK, THE U.S.A.

Marie Sharp for example in agro processing has expanded her market. It didn’t happen overnight it took her 15 years to get there. She’s about to enter 7 more countries in the next two months after her certification.

In the livestock industry. Here’s an opportunity for investment. We have markets in neighbouring countries and internationally that we can satisfy because we don’t have any of the diseases that are preventing exportation of beef from other countries and we can take it up. The price of beef keeps going up so it’s even more lucrative to expand so we can export to more countries .People have been interested in goats recently.

Fish farming- We have two new investment in fish farming this year. Fish farming programmes can be incorporated in our Technical and Vocational Training Unit to offer training in this area so students can get jobs as apprentice until these farms open. Thy will have to hire foreign labour until these students get the necessary training. And because we’re a member of the CARICOM Single Market and Economy (CSME) our labour pool can also come from the Caribbean. For example professional services etc. For example if investors set up a manufacturing plant here there product would enter the CARICOM community duty free because the product would be made in Belize.

We also have easy access to Mexico, Guatemala and the rest of Central America through road system. That’s the Belize competitive advantage, well yes, it still hasn’t been approved but we’re working towards the finalization of the Partial Scope Agreement between Belize & Guatemala to improve trade in certain areas. We also developed a certifying label . So when you see a product carrying the “Belize Food Celebrating Quality” label on it it’s certifying that it is a good product.

Q- What are some improvements for Belize City?

A-Belize City needs face lifting in some areas. We need more activities, more areas that tourists can go to. We need more entertainment in the city, whether it’s cultural, night club. The night life is lacking. A COST IS INVOLVED. The same thing happens with the newspapers and the local productions on TV. We have a small population. No you have 80,000 in the city. That’s not small there are countries with smaller population but they have things for the people. Yes, but it will take time. There are several weekly newspapers-The Reporter, Amandala, The Belize Times and the Guardian. Most of them come out around Thursday and Friday. We also have a Tuesday Amandala.

Q- If you’re the prime minister what would be the first thing that you would change?

A-It would have to be something with the youth because the youth are very much involved in the crime situation. Not only in Belize but all over there’s a general lack of respect, especially for elders. In trying to improve the attitude it would bring about a whole new business ethic. If there’s no fear of punishment then there’s no incentive to change-CAPITAL PUNISHMENT. It hard but it’s needed.

Q-What is your biggest success at BELTRAIDE?

A- I have a committed staff that works like an excellent team. That will show by the work that will come out of this organization in the next year and we have done it with the help of The Republic of China on Taiwan. Former Ambassador Charles Tsai did a lot, the Commonwealth Secretariat, the IDB. Etc.

Q-What has been your biggest obstacles?

A-Identifying financing and dealing with budget cut backs

Q-What message do you have for future investors?

A- There best opportunity for investment lies in Belize. They should look at us we’ll work with them to ensure everything goes well for them and we welcome genuine sincere investment.