The Tribune

By ANNELIA NIXON

anixon@tribunemedia.net

A Bahamian entrepreneur is aiming to spur economic growth in the southern Bahamas through the planned launch of a number of ventures targeting ties with Cuba.

Jason Rahming told Tribune Business he is looking to encourage sustainable development with initiatives such as the CuBAHa Rum Cake Factory and CuBAHa Beverages, as well as cruises. He is heading to Cuba on November 1 to meet with regulators and government personnel there to discuss setting up the rum cake business “in the special economic development zone of Mariel”.

Explaining that this will facilitate food and beverage manufacturing, plus the import and export trade and servicing wholesale and retail vendors, he added: “What we’re doing now is specifically for the rum cake production and the use of the CuBAHa shipping to facilitate our supply chain distribution and all of that.

“That project that we’re going to do in the southern Bahamas, the Government is directing my attention to the island of Acklins.” Mr Rahming said the southern Bahamas needs more development and more projects like the ones he is proposing.

“Everyone has to migrate to the northern Bahamas, to central, to Nassau and Grand Bahama, the Abacos even, for gainful employment and for cultural and economic stimulation,” he added. “Most of our activities happen in the north, and we need to have a more balanced, equitable field when it comes to the standard of living and experiences in The Bahamas.

“This is my initiative as an entrepreneur to fill that gap and address those needs that we have in the southern Bahamas.” Mr Rahming said part of the manufacturing will be in Acklins, and added: “We are starting wholesale and retail distributorship, and sales here in The Bahamas.

“By the end of the first quarter, we should have landed our first products.” Mr Rahming said while in Cuba he will discuss developing a rum cake bakery there and what he will have to give the government there in return for doing business in its country. 

“We’ve gotten the nod from them that they are interested in having it in the zone. Once you’re allowed in the [Mariel free port] zone, you have to also give to the Cuban government whatever it is that you’re manufacturing,” he explained.

“So we’re going right now to discuss those issues and, I guess, negotiate what it is the government will require us to give them every month and what concessions we can have for operating in the zone; what other obligations we would have for operating in the zone.

“Now, the CuBAHa beverages, as I mentioned, of course, we had to get a license and everything, get our liquor license and all that, so that we could sign the agreements in Cuba. We have signed an agreement in Cuba, but we have not executed the agreement yet to bring in any of the rums. So, that’s where we are with that. We will do that once we can get these funds figured right away and have our shipping.”

Mr Rahming added that he believed it would be easier to start selling rum cakes and use those revenues to kick-start some of his other initiatives. “Now, remember when I said we made the application into Mariel? Every year, you have thousands of companies from all over the world who apply to get into this special economic development zone of Mariel. And Cuba is very particular,” he said.

“The barrier to entry into the zone is very high, and they only choose about 20, 30, 40 companies a year that they will say, ‘okay, well, we are interested, let’s pursue it.’ And now that number, even fewer, actually get into the zone and start operating.

“So when we pitched to the chamber of commerce in Cuba about a Cuba rum cake factory using Cuban rum brands and our cake product, having their logos on our packaging, having our rum cakes distributed with their rum brands around the world, they were eager to do it,” Mr Rahming said.

“Now they set up meetings for us with their rum suppliers and producers, and we ran the concept by them, and they were also in agreement. And as we sat and looked, because they introduced themselves and their products, and as we sat with them, we said, ‘Hey, can we have exclusive distribution rights to your rum brands for the Bahamas?’ And they said, yes. So we turned our attention to starting off with the rum sales as we thought it would be a quicker time to market, and we can use the funds from that to start the other entities, the other parts.

“Cuba being a socialist economy, everything is controlled by the government, and they have established, through legislature, the steps that you need to proceed in order to have these various entities regularised and implemented,” he continued. “So I can’t give a timeline. I’m just moving as fast as I can given the steps that you have to go through in Cuba.

“Things have to get approved at the highest levels in Cuba when it comes to foreign investors. I put it to you like this. We applied to Mariel. Our formal application to Mariel went in in July, and they got back to us within the, I think, 90 day requirements.

“And this is now the next step that we have to go to. But they’re saying they’re interested and they need to sit with us to have us give a feasibility study that they can use. Our business plan wasn’t insufficient, so we need to flesh it out and into a feasibility study so they can pass it around to the various councils.”

During the discussions on a partnership between Cuban rum brands and CuBAHa, Mr Rahming said there was a need for direct shipping route between The Bahamas and Cuba. He noted that shipments normally have to go through a through a third country first, adding that it can take four to six weeks to receive goods.

“So in terms of cost and efficiency it meant that, for our undertakings to be cost efficient, more productive we would need a shipping route, a shipping lane from Cuba to The Bahamas,” Mr Rahming said. “And I know, as a layman, it sounds quite simple, like, ‘oh, you just go there,’ but all these ports are controlled by the Cuban government.

“You need a licence to dock it and pair it with The Bahamas as such. So about came the CuBAHa shipping, and they immediately saw an opportunity and sat us down with a bunch of their agricultural workers, the farmers there.”

Mr Rahming said he met with a large number of farmers who are interested in having their products exported “and having investment with their poultry farms and meat farms, and everything else to bring in feed and other materials that can assist in expanding their production capacity.”

“We want to partner our Bahamian farmers with some Cuban farmers so that we can help them to expand their production,” Mr Rahming said. “We can also get from them a lot of organic fruits and vegetables that will be inexpensive, I should say less expensive, than the North American alternative.

“And as Cuba does not do the genetic modification of their vegetables, I feel that that is also a healthier option in receiving agricultural products from Cuba. Also, there’s the issue of variety when it comes to bringing in agricultural products. With The Bahamas, when I talk with the minister of agriculture here and his team, they are definitely making agriculture a priority under this administration and are pushing for the expansion of our agricultural products.

“But the Bahamas is not in the position to give a wide variety of agricultural products. And it’s because of our soil and because of our region. We are kind of limited to what we can produce. But Cuba has a huge farmable area. I think 70 or 80 percent of Cuba is arable land, and they have a wide array of agricultural products. And so we can partner with them. We can diversify our offerings in terms of our agricultural products.

“We’re going to be manufacturing beverages as well. So all of those companies, all of those entities will be in the southern Bahamas. They’re going to be in New Providence, in Acklins and in Cuba and, of course, Haiti as well,” he continued.

“We already met with the Haitian ambassador here, and they have all of the documents and they are excited to talk some more next year when their circumstances settle down. But absolutely, we will have a manufacturing facility in the southern Bahamas. Everything is in motion. We’re moving.”

Other initiatives Mr Rahming has in the works are CuBAHa Cruises, which will sail between The Bahamas, Cuba, Haiti and other Caribbean islands. Bahama Islands Growth Institute is a non-profit initiative which Mr Rahming said “will focus on marine environmental sciences education, working in partnership with regional institutions.” Other initiatives include CuBAHa Medical Logistics, CuBAHa Medical Centre, CuBAHa Tours Ltd and CuBAHa Airways.

“They wanted me to hold off on submitting any more paperwork to them until we have this talk because there are certain numbers and proposals that only they have, and they want to put to me before I do any other kind of submissions to them. So I will have a lot more to say when I return on November 15,” Mr Rahming said.

“I say once we get the capital, that gives us a lot more options in terms of speed, what we can implement in The Bahamas versus what we can implement in Cuba. When it comes to Cuba, we definitely have to go by their pace and, of course, we also have to put in for government grants for the CuBAHa farm on Acklins.

“So the Bahamian government will also have some say in terms of how quickly we are able to get certain projects out of the market. But I would say for the CuBAHa beverages, we look to start by the end of first quarter 2025.  Here in New Providence.” Mr Rahming said after his meeting in Cuba, he should have a timeline for CuBAHa Rum Cake Factory.