A Bold New Caribbean

A Role for Investors

company seeking to expand operations struggles to access the needed capital. The region’s banking system has also been missing in action in the area of merchant payment systems. Innovative entre- preneurs have developed innovative non-banking solutions but reach a limited audience. Size also negatively impacts the ability to source imported equipment, materials, and technology at cost-effective rates. The average Caribbean con- sumer has reluctantly grown accustomed to the irregularity with which a favorite product appears on the shelves as processors run out of bottles and packaging. Agro processors need expensive, high-quality equipment to produce foods ready for consumption domestically and abroad. The ab- sence of or limited ability to lease the equipment or to rent kitchen space places a heavy burden on each company to procure its own. Concerning goods, digital trade uses the Internet and mobile technology to drive the sale of prod- ucts. The increased use of e-commerce, therefore, requires access to reliable Internet. Yet, Internet penetration across the region is still relatively low – the highest being Trinidad and Tobago, with 77.3% of its population having access at the start of 2022. As the region’s entrepreneurs struggle to compete in the digital age, access to the Internet is key, as is ac- cess to the technical help needed to build attractive and well-designed platforms, as well as training and support to bridge the digital divide. Finally, unreliable regional transportation routes make intra-regional trade unnecessarily complex and expensive. While it is easier logistically to export to North America or Europe, the regional market provides a less intimidating entrée into international trade. It is encouraging that CIF 2023 has highlight- ed the need for investors to take up this challenge.

Many of the challenges explored above can be addressed by providing solutions that enhance the operating environment for the overall sector within each country. There are opportunities for the dis- cerning investor to meet the diverse logistical and supply chain needs of the agro-processors. Growing the produce that provides the key inputs for agro-processors can also be improved by in- vestments to improve the sustainability practices, post-harvest handling methods, and phytosan- itary controls used by farmers. The reality of cli- mate change has also raised the need to apply new approaches to pest and soil treatment and to introduce climate-proof irrigation and drainage infrastructure. Innovators in the region are already developing solutions that could be ripe for entry into the market with the right support. There are also opportunities to sell telecommuni- cations equipment and for firms experienced in developing IT sectors to provide the needed infra- structure to support the growth of digital trade. Again, some of this expertise already resides in the region, awaiting the right investor or partner. Caribbean agro-processors are well-placed to capture a portion of the growing market for healthy yet exotic foods and beauty and wellness products. It will take the combined contributions of foreign and local capital, technology, and know- how to make this promise a reality.

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