Purpose: to provide a framework for business development and growth
- Attain sustained economic growth
- Improve the country’s investment climate
- Encourage increased levels of foreign and domestic investment
- Develop Small and Medium Enterprises
- Generate permanent employment opportunities
- Create an expanded diversified export oriented business sector capable of delivering increase export earnings and job opportunities
- Ensure economic development takes place in harmony with national environmental considerations
- Alleviate poverty and reduce vulnerability.
- Restore fiscal and debt sustainability
Small & Medium Enterprise Development
Government recognizes that Small & Medium Enterprises can play a significant role in the development of the country by presenting a range of self employment opportunities to enterprising, independent persons, encouraging the utilization of local resources, stimulating personal savings, improving rural well being and facilitating a more equitable distribution of income.
Government envisage a modern small business sector capable of adapting readily to changes in technology and markets and utilizing current managerial and production techniques, competing effectively not only on the domestic market but also on the international market.
In this regard it is the policy of the Government (GOG) to provide the required impetus and allocate financial and technical resources to foster the creation of an enlightened and dynamic small enterprise sector.
This will be done through the following policy measures:
- Investment incentives for qualifying small businesses
- Legislation designed to strengthen the development of cooperatives
- The design and implementation of entrepreneurship and skills development programme
- Technical assistance support to facilitate easier access to credit, capital, domestic and export market opportunities
- Institutional strengthening of business support organizations to improve service offerings
Investment Promotion and Facilitation
Government believes that active promotion is necessary to attract investment. In this regard, GOG has established, by an Act of Parliament, Act No. 2 of February 27, 1985, the Grenada Industrial Development Corporation (GIDC), as a virtual “One Stop” Investment Agency, charged with the responsibility for stimulating, facilitating and encouraging the development of industries
GIDC core responsibility is to promote investment opportunities, facilitate the establishment and development of investment projects, facilitate small business development and provide policy advice.
Historically Grenada’s trade policy has been based on import substitution behind high trade barriers: high import tariffs and non-tariff barriers to trade. The trade policy however has evolved over time as a result of Grenada’s participation in international, regional and bi-lateral trade agreements and also as a result of an evolution in the government basic economic policies toward a more free market, private enterprise system.
The change in trade policies reflects a shift from import substitution to a more liberalized trading system that is oriented toward the global economy. The ongoing process of liberalization and globalization, of the world’s economy has had a strong influence on Grenada’s trade policy.
Environmental and Biodiversity policies
Government believes that the environment plays a central role in development, since it provides the natural resources – the air, water, soil, landscapes, ecosystems, and species – that support economic, social and cultural development and because without a clean and healthy environment the mental and physical well-being of people and society as a whole cannot be maintained.
Government policy is to provide a coherent framework to ensure that all development are environmentally sustainable, while optimizing the contribution that environment makes to the development of the country specifically:
- Maintain the diversity of ecosystems, species, and genes;
- Maintain and enhance the natural productivity of ecosystems and ecological processes;
- Optimize the contribution of natural and environmental resources to the production and trade of economic goods and services;
- Optimize the contribution of natural and environmental resources to social and cultural development;
- Prevent and mitigate the negative impacts of environmental change and natural disasters, and build resilience relative to these in accordance with Principles 8 and 9 of the St. George’s Declaration and in fulfillment of Grenada’s First National Communication on Climate Change;
- Maintain and enhance the contribution of the environment to human health;
- Fulfill regional and international responsibilities and capitalize n opportunities that accrue from regional and international networking.
Grenada has already formulated and adopted a number of important statements on environmental matters on specific issues and sectors, such as a National Biodiversity Strategy and Action Plan and a National Forestry Policy. The GOG also subscribes to all the major international statements of environmental policy, including the Millennium Declaration, the Plan of Implementation of the 2003 World Summit on sustainable Development, the Barbados Programme of Action and the St. George’s Declaration. These policy statements will continue to guide action and GOG policy in other economic areas.
The following policy statements and regulations are being developed:
- National Land Use Policy
- National energy Policy
- National Policy Framework for Climate Change
- Statutory zoning plans will be developed and implemented
- Environmental impact Assessments under the Physical Planning and Development Control Act and the land use regulations will be developed and enforced;
- National Waste Management Policy and Strategy;
- Medical waste and other bio-hazardous wastes management policies
- Agrochemical (pesticide) hazardous wastes management plan;
- Environmental Management Systems (EMS);
- Environmental audits.
- Eco-labels and certification to link business promotion to good environmental practice and corporate responsibility.
Government recognizes that the quality and the cost of physical infrastructure is a major determinant of investment flows and reinvestment, that good infrastructure attracts investment by connecting firms to their customers and suppliers, in effect enlarging the size of the market, and enables businesses to specialize and take advantage of modern production techniques and organizational structures.
Hence over the longer term, government policy is that the physical infrastructure such as transportation, utilities, and telecommunication facilities must be created for active private sector involvement in the economy.
GOG believes that private investors can ease the call on public funds to finance the country’s infrastructure maintenance and development needs. GOG has therefore largely deregulated and privatized the provision of infrastructure services, the exceptions being water supply and the post office. GOG has also chosen to delegate the management of some types of infrastructure projects to private investors.
By the Airport Authority Act the Airport Authority established pursuant to that Act has exclusive right to manage, control and supervise the international airport at Grenada and the airport at Carriacou.
By the Port Authority Act the Grenada Ports Authority established pursuant to that Act has exclusive powers to provide, manage and maintain all port services and facilities throughout Grenada, Carriacou and Petit Martinique.
By the Electricity Supply Act 1994 the Grenada Electricity Services Limited was granted exclusive right to perform all functions in relation to the supply of electricity throughout the Tri- Island State until December 31 2073.
The National Water & Sewerage Authority Act charges the National Water and Sewerage Authority which is established pursuant to that Act with the responsibility of providing the “public with a satisfactory supply of potable water for domestic purposes and a potable or otherwise satisfactory supply of water for agriculture, industrial and commercial purposes.”
Government recognizes that modern telecommunications are vital to the investment environment. They enable firms to communicate rapidly and cheaply with distant suppliers and customers, improving productivity. In particular, they underpin many service sectors, such as the financial, insurance and transportation markets. As the relative importance of the service sectors is rising, access to competitive, high quality telecommunication services has become, and will continue to be an important element of the investment environment.
Government also recognizes that transport infrastructure creates opportunities for firms to buy and sell in different markets and is a driver of globalization. With barriers to international trade falling and cross border commerce growing, the importance of an efficient transport infrastructure to attract investors is increasing. Lower international transport costs would also spur trade, providing an additional stimulus to investment in other sectors.
Government policy is to reduce transport costs by paying attention to all transport modes and the linkages among the modes. Ports and airports, for example, are more valuable when served by good roads. Transport costs are also affected by indirect factors, such as whether telecommunications systems allow companies to track their goods in transit and how quickly goods are cleared through customs. In addition to developing new transportation links and services, maintenance and repair of existing facilities in Grenada is needed to ensure they continue to function properly.
Human resource development
It has been recognizes that the education system has not performed well in terms of CXC pass rates compared to other OECS countries in either math or English, that the student teacher ratios are significantly above the OECS averages in both primary and secondary education; and that the level of teacher education and training is significantly below the OECS average.
Moreover it has been concluded that the education system is too oriented toward classical academics and does not prepare its graduates with the skills needed in the private business sector job market.
Government recognizes that human resource development is vital to the development of Grenada’s economy, society, and culture. It has also been recognized that human resource development has multiple dimensions, covering educational attainment, workforce skills, population health and employment policies that connect people to business enterprises with appropriate skills and the ability to adapt quickly to new challenges. Recognizing that each of these areas is a key driver in creating a favorable environment for investment and cannot be framed in isolation, the HRD policy takes full account of these policy linkages and Grenada’s implementation capacity. Special emphasis has been attached to the flexibility of the policy framework to respond to new skill needs created by changing technologies and economic structures and in this regard government has fostered close cooperation between policy makers and the main stakeholders: investors and labor.
The HRD policy has three components:
- Increased access to secondary schools, particularly for young, male persons;
- Higher quality of teaching; and
- Greater relevance and a tighter fit between the skills taught in school and the demands for skills from the job market.
Government will continue to place emphasis on Human Resource Development especially in view of CSME. Emphasis will be place on the following:
- Enhance the skills training programme at TAMCC and the Business Development Unit
- Increase scholarship available through the St George’s University, UAS, Cuba, China and Commonwealth countries
- Undertake an audit of locally available skills and identification of the skills requirement of the business sector to inform the development and design of additional training program
- Increase the collaboration between the government, trade unions and the private sector in respect of the provision of training for industry
- Provide tax credit to encourage private sector investment in skills training
Principle Industrial & Business Sectors
- Tourism and Hospitality
- Tourist accommodation
- Tourism related services including travel agencies, tour operators, tour guides, destination management companies, diving, water sports, charter boats/cruises, ground service operators, land and marine transportation services, theme parks, cultural centers, convention centers and attractions
- Arts and cultural activities
- Music and entertainment
- Taxi and bus service
- Marine cargo transportation
- Building construction services
- Road repair services
- Professional Services
- Medical, nursing and health services
- Personal care services such as hair dressing and beauty care
- Household services, cleaning
- Sanitation, sewage and refuse disposal services
- Repair of personal and household goods and vehicles
- Sporting and recreation services
- Financial services
- Education and training services
- Laundry and dry cleaning services
- Machine shop services
- Engineering services
- ICT services
- Business equipment services
- Other Services
- Television and radio broadcasting services
- Retail and distribution
- Metal works
- Building material
- Creole food operations
- Film, film strips, video and sound recording
- Publishing and printing
- Agro – processing
- Clothing and accessories
- Light manufacturing
- Other manufacturing
- Small-Scale Primary Agriculture
- Fishing and mariculture (including the operation of fish hatcheries and fish farms)
- Spice and herb farming
- Organic farming
- Apiculture, horticulture, aquaculture, hydroponics
- Animal husbandry
- Mining & Quarrying
- Grenada Hotel and Tourism Association
- Grenada Association of Beekeepers
- Grenada Airport Taxi Association
- Grenada Hotel Taxi Association
- Bus Drivers Association (one for each district)
- Grenada Co-operative Nutmeg Association
- Grenada Cocoa Association
- Marine and Yachting Association
- Association of Grenada Insurance Companies
- Grenada Crafters Guild
- Small Agro-processors Business Association
- Association of Poultry Producers
- Agricultural Business Association
- Southern Fisherman’s Co-operative/Association
- Grenada Bankers Association
- Grenada Engineering Association
- Grenada Building and Loan Association
- Grenada Bar Association
- Grenada Medical Association
- St. Andrew Fishermen Association
- Inter-Agency Group of Professional Organisations
Grenada has two Industrial Parks.
- Frequenté Industrial Park, Grenada’s main industrial park, sits on 25 acres of land and is located two (2) miles from the Maurice Bishop International Airport and five (5) miles from the container port and deep water harbour in St. George’s. The park houses the headquarters of the Grenada Industrial Development Corporation and provides 164,240 ft. of industrial & warehousing space, ranging from 200 sq. ft. to 27,000 sq. ft.
- Seamoon Industrial Park located eighteen (18) miles from St. George’s, in the north-eastern parish of St. Andrew, occupies twelve and a half (12.5) acres of land (3 acres developed and 9.5 undeveloped) and provides 40,000 sq ft of industrial space.
Other industrial facilities are the St. Patrick's Business Centre, located in the northern parish of St Patrick’s (twenty four (24) miles from of St. George’s containing 4,800 sq ft of commercial space, 1,350 sq ft of vendors booth space on 19,236 sq feet of land and the Grenada Craft Centre located on Lagoon Road in St. George’s containing 7,070 sq. ft. of rental commercial space on 25,580 sq. ft. of land.
Email Us: Industrial Facilities Department - GIDC