The Tribune

The Government faces a massive task to make Grand Bahama a technology hub, a confidential report has revealed, despite hopes of attracting “hundreds of companies in months”.

A January 29, 2018, report by the Government-appointed Technology Hub Steering Committee, which has been obtained by Tribune Business, reveals that reforms touching almost every commercial-related public sector agency are required to create the necessary platform for the industry.

The ‘laundry list’ of legal, regulatory and policy changes recommended by the Committee touch entities ranging from the Immigration Department to the Bahamas International Securities Exchange (BISX), plus the Grand Bahama Port Authority (GBPA), indicating the extent of the task required to achieve a key government objective.

The ‘preliminary recommendations’ nevertheless identify three ‘quick wins’, while calling for the Government to create a ‘Bahamas Technology Industry Promotion Industry’ - armed with a $7-$10 million annual budget - to market this nation to a global industry identified as one of three potential diversification opportunities in a recent Inter-American Development Bank (IDB) report.

Leading the “immediate opportunities” is the Committee’s proposal to target US companies who are heavily reliant on the H1B visa workers impacted by Donald Trump’s recent Immigration crackdown, which has affected this category. “There are several immediate opportunities that should be explored by the Government and the Grand Bahama Port Authority in order to support the establishment of a technology industry sector in the Bahamas,” said the report, authored by Committee chairman, Dr Donovan Moxey, of MobileAssist.

It specifically identified the “recruitment of US companies who want to re-locate workers with soon to-expire or recently expired H1B Visas to the Bahamas. This would represent an immediate positive impact to the Grand Bahama economy, and would primarily benefit the local economy with respect to opportunities for temporary and permanent housing, transportation, entertainment, restaurants, retail, and education, as well as initially provide opportunities for non-technical jobs. There are hundreds of US companies and thousands of highly skilled workers that can be recruited and re-located in a matter of months.”

The idea was floated at this year’s Grand Bahama Business Outlook by GBPA president, Ian Rolle, a member of the Committee and who appears to have taken the idea from the report that was co-authored by its vice-chair, Kristie Powell, a Bahamian employed by Google.

The Trump administration has been making it difficult for persons to apply for, or renew, H1B visas, which facilitate the hiring of specialist foreign workers by US companies, and entry of persons with advanced degrees.

Such workers are in high demand among technology companies, and the Committee’s thinking appears to be that the Bahamas offers a convenient offshore base in close proximity to the US should such firms have to relocate H1B personnel or themselves.

“The current cap of H1B visas in the US represents an opportunity for the Bahamas to attract skilled workers and the companies that want to hire them. This could be a great opportunity to re-locate company teams/divisions to the Bahamas who have H1B visas that are set to expire soon,” the Committee’s report enthused.

However, it immediately noted that Immigration and work permit reforms would be required to facilitate such an effort. The Committee suggested that H1B permit holders

“be fast-tracked and receive comparable Bahamas work permits”, provided such applications are sponsored by a company domiciled in this nation.

“The Government may want to consider creating a new type of work permit to specifically serve as a fast-track replacement for holders of a current or recently expired (within 12 months, or longer as per Immigration guidelines) of US H1B Visas,” the report suggested.

“The Government will also need to create corresponding spousal/partner and dependents residency permits for holders of H1B Visas. Spouses/partners should not get work permit status unless they are also employed by the company in a technical area.”

In a nod to ensuring Bahamian participation, the Committee’s report said work permits for technology-related companies should be limited to two three-year terms, while ‘non-technical posts’ should be “reserved for Bahamians as a first priority where possible”.

“Full transparency in the work permit process, with set timelines for the processing of all applications” was identified by the Committee as essential to establishing Grand Bahama as a technology hub, with training and education key to ultimately creating “a pipeline of qualified Bahamians” to staff these companies.

The Committee also called for the staging of a Venture Capital Conference, focused on attracting Blockchain, FinTech (financial technology) and cryptocurrency start-ups who are seeking financing for their initiatives.

“We can host a venture capital conference in Grand Bahama focused on attracting Blockchain technology solutions companies, FinTech and cryptocurrency start-ups started by local and international entrepreneurs seeking venture capital funding,” the report said.

“The Bahamas can position itself as a region that is taking a lead in supporting the global venture investment environment for these next generation technologies. This conference should be hosted in Spring 2018 to accommodate the normal investment and deal flow cycles of venture capitalists.

“This type of event will bring attention to the Bahamas as a major player in these new technology areas.”

Nothing has been heard to-date about whether this proposal will be executed, with the Committee calling for the targeting of ‘offshore financial services companies’ IT functions as its third and final ‘quick win’.

“The Bahamas can position itself as an ideal location where the IT divisions of numerous offshore financial services providers can set up their offices,” the Committee argued. “These offices can be located in a low tax jurisdiction that accommodates their IP protection and resource needs, while still maintaining their global reach.”

The report, marked confidential, was presented to Kwasi Thompson, minister of state in the Prime Minister’s Office in late January. The Committee’s members also included Gershan Major, now chief executive of the Bahamas Gaming Operators Association; Damian Blackburn, Aliv’s top executive; Bahamas Local’s Jason McDowall; Paul Winder of Deltec Bank & Trust; and Dr Ian Strachan at the University of the Bahamas (UoB).