2009-05-05
JTI Facilitated $32.1B Capital Investments in 2008/09
Upwards of $32.1 billion of capital investments in local industries were facilitated by the Government’s investment promotion arm, Jamaica Trade and Invest (JTI), during the 2008/09 fiscal year, Minister of Industry, Investment, and Commerce, the Hon. Karl Samuda, has disclosed.
Making his presentation in the 2009/10 Budget Debate at Gordon House on Wednesday, April 29, Mr. Samuda pointed out that while final figures are still being collated, up to February, the figure had surpassed the target set for the period by approximately $6B, and was more than $11.1B over the previous year’s budget.
The Minister informed the House that the sum recorded was generated from the addition of 26 new projects to the JTI’s portfolio. These comprised: 16 in Information and Communications Technology (ICT); three each in mining, tourism, and manufacturing; and one in major retail services.
“Combined, these new projects amounted to US$37 million in capital investments in the economy. When one looks at the overall picture, the lead sectors for investments in Jamaica are Tourism and ICT, which together generated $24.6B in capital expenditures. We are also experiencing stronger investment performance from the agricultural sector, which generated more than $4B in capital expenditures last year,” Minister Samuda outlined.
Major tourism investments during the year, he said, included the continued expansion of the Iberostar Project; the launch of the Seawind Keys/Secrets Resorts and Spa; and the expansion of attractions such as Mystic Mountain. “These and other investments in tourism have added 2,351 rooms to the current room stock,” the Investment Minister informed.
The ICT sector, Mr. Samuda continued, was another big performer, generating over $10B in investments last year. These investments, he explained, flowed primarily in the telecommunications sub-sector, and from the build-out of seats in the ICT/Business Outsourcing sub-sector.
Despite this impressive figure, Mr. Samuda contended that the sector is capable of doing much better. He, however, lamented the challenges facing the sector, in the face of exponential growth which it recorded, chief among which is the unavailability of office space, which, he advised, is being addressed.
“Jamaica Trade and Invest has been collaborating with the Office of the Prime Minister to address this issue. A project is now underway to create approximately 600,000 square feet of suitably outfitted office space in the next five years, under public private partnership agreements,” Minister Samuda informed the House.
He explained that under this agreement, the local business community will be invited to partner with the Government, to invest in the development and build-out of the office space. The JTI, he added, will undertake a significant portion of the legwork necessary to woo investors.
In the area of manufactured investment projects, the Minister informed Parliament that the number facilitated by JTI, increased from six to 13 last year, while recording capital expenditure totalling some $5.7B or 53.4 percent more than the previous year. A US$16M dehydrating facility, owned and operated by the Jamaica Broilers Group, was the highest value investment undertaken.
In the face of the current global financial crisis, Mr. Samuda assured Parliament that: “We are not retreating. We are looking for opportunities to seize the moment. In so doing, we intend to be nimble and lean in making the best bang from every promotional dollar spent in the overseas marketplace.”
Mr. Samuda also disclosed that JTI facilitated over $2.7B in non-traditional exports last year. These, he pointed out, were mainly generated in the processed foods sub-sector, which accounted for 70 percent of earnings; furniture – 16 percent; and baked products – nine percent.
He advised that exporters in these sectors were facilitated on trade missions to North America and Europe by JTI, who introduced them to new markets through a variety of trade shows and in-store promotions, among other activities.