The Tribune

By Fay Simmons

Tribune Business Reporter

jsimmons@tribunemedia.net

The Deputy Prime Minister yesterday revealed that The Bahamas has secured a $10m loan from Saudi Arabia to finance the development of so-called "incubation centres" for tourism start-ups and small businesses.

Chester Cooper, also minister of tourism, investments and aviation, said: "The $10m loan has been secured from The Saudi Fund for Development on extremely favourable terms including a five-year delay on principal repayments. The money will be deposited into the Tourism Development Fund and will be used to develop incubation centres in Nassau, Grand Bahama and Exuma.

"The Bahamas Incubation Centre Project seeks to accelerate local economic development and increase entrepreneurial opportunities in the tourism sector by providing young, fledgling businesses with the necessary support and resources to assist them in developing sustainable, profitable businesses. Our research has shown that this initiative can have a vital impact on the economy by creating new entrepreneurs in our main industry.

"Incubation centres also hope to capitalise on entertainment and cultural tourism, and will highlight Bahamian culture through visual arts, music and dance, theatre and Junkanoo, supporting the orange economy," Mr Cooper added.

"A portion of the loan will also be used to fund grants and small loans from the Tourism Development Corporation (TDC) to entrepreneurs on every island across The Bahamas, including Eleuthera, North Andros and the Berry Islands, and Abaco, too. We must encourage cottage industry and micro business. We must aspire for micro to become mid-sized and large businesses to become regional and international business. The TDC will do its part.

Mr Cooper also pledged that the Government will finally deliver on promises to convert the Bahamas Investment Authority (BIA) into a proactive investment promotion agency known as Bahamas Invest. "Consecutive administrations have talked a lot about Bahamas Invest, a proactive department of investments to promote, manage and attract foreign direct investment FDI). The new construct will formalise promotions unit, a compliance unit and a facilitations unit.

"Further, as I indicated before, it is often said that domestic investors, although entitled to the same and more concessions, are not treated with the same level of seriousness as foreign investors. As we committed in Our Blueprint for Change, we will refocus the Bahamas Investment Authority as a nimble promotional arm. Bahamas Invest will focus on attracting investment and industry across all sectors as we are committed to do in our Blueprint for Change."

Mr Cooper said Bahamas Invest's compliance arm will ensure all investors fulfill their obligations and commitments in their Heads of Agreement with the Government. "We will expand the role of Bahamas Invest to include a Domestic Investment Board to support Bahamian businesses in participating more fully in the tourism value chain," Mr Cooper added.

"The director of investments, Phylicia Hanna-Woods, has already started work in regard to this transition, working along with McKinsey consultants to deploy global best practices. We intend to create the conditions necessary to achieve the equivalent of being ranked top 50 in the world in competitiveness.... We have pledged this in at least the last three speeches from the throne. And we intend to stand up Bahamas Invest during this fiscal year."