Christopher Lewis, President, InvesTT, on the array of investment opportunities beyond oil and gas in Trinidad and Tobago

On the array of investment opportunities beyond oil and gas in Trinidad and Tobago

Which sectors are driving current diversification efforts in the Trinbagonian economy?

CHRISTOPHER LEWIS: T&T has traditionally been a primarily hydrocarbons-based economy. InvestTT’s role is to look for investment potential outside oil and gas-related industries. In this regard, we have identified certain non-hydrocarbons sectors where the most growth and investment possibilities are currently present for international investors: ICT – or more specifically, information technology-enabled services – agricultural and food-processing industries, high value-added manufacturing, and yachting and maritime services, such as trans-shipment and cold stacking.

To what extent have the recent changes in taxation affected the country’s overall competitiveness? 

LEWIS: Taxation, specifically corporate taxation, is just one of the many variables that potential investors consider when selecting a foreign country to invest in. In spite of the recent increase in corporate taxation, with rates going up from 25% to 30%, the country is still very competitive when compared to other jurisdictions in the Americas or the Caribbean. More importantly, total costs in T&T make the country a very attractive investment destination, and overall business costs are undoubtedly more crucial when making a final investment decision. 

T&T is a relatively inexpensive destination, especially in terms of energy and electricity costs, which may be of interest to prospective manufacturing or IT services firms with markedly high energy needs in their everyday operations. Labour costs are competitive, whether regarding salaries, with a minimum wage set at approximately $2.20 per hour, or other social and workforce costs. Business registration procedures are equally inexpensive. Other utilities such as electricity, water and transportation are relatively inexpensive, with a simplified online business registration process. 

Furthermore, with affordable rental rates and a low cost of living, the total cost profile of T&T proves to be very attractive to foreign investors. 

What major incentives exist to attract international investors?

LEWIS: The most significant fiscal incentive the country has been offering for several years now is that of our free zones and the tailored fiscal legislation within them. Foreign manufacturing and service companies established in the free zones enjoy full exemption from taxes if they export at least 80% and 50% of their output, respectively. 

Additionally, T&T offers other fiscal incentives available through the Fiscal Incentives Act, the Customs Duty Act, the Income Tax Act and the Tourism Development Act. Non-fiscal incentives can also increase the ease of doing business, such as the possibility to complete most administrative procedures electronically on ttconnect and ttbizlink, rather than in person. The Ministry of Finance is working on specific legislation to increase the array of e-government digital services offered by the state, adding features such as electronic payments, in yet another significant step for the ease of doing business in the country. 

How has T&T placed itself at the forefront of the business process outsourcing (BPO) industry in the region?

LEWIS: BPO is an important ICT subsector in which we believe there is substantial investment potential. Several factors make T&T an ideal destination for these services, ranging from the country’s human capital and qualified labour pool to its geographical position and language. Trinidad offers a large, highly skilled pool of potential workers. Not only is this labour force exclusively comprised of native English speakers, but the high educational levels attained and the existence of additional learning institutions allow workers to upscale their skills locally to position themselves for higher value-added activities. 

Additionally – and in contrast to other Caribbean nations – Trinidad lays outside of the hurricane belt, which assures the normal functioning of operations and decreases the impact of natural disasters between June and December every year. Furthermore, T&T’s close proximity to the US, especially to the south-east – Miami and Houston are each just a four-hour flight away from Port of Spain – leads many potential investors to opt for T&T over more traditional yet much more distant BPO destinations, such as India or the Philippines.