Economy - Channel 5 Belize

G.O.B. Launches Plan to Transform Belize’s Investment Climate

The Government of Belize is seeking to reform the way we do business and facilitate investments as a country. That is why, this morning G.O.B. launched its Belize Investment and Business Climate Action Plan. Three public institutions have been identified to lead the charge in this initiative. They are the Investment Policy and Compliance Unit, the Economic Development Council, and BELTRAIDE. The overall objective is to unlock greater business opportunities and secure a prosperous economic future for all Belizeans. News Five’s Paul Lopez reports.

Paul Lopez, Reporting

In its pursuit to promote an effective investment and business climate, the Government of Belize has undertaken an initiative to harmonize three of its key business and investment policies under one umbrella strategy. That is the Belize Investment and Business Climate Action Plan or BIBCAP. Doctor Leroy Almendarez, the Executive Director at BELTRAIDE, spoke about the statutory body’s role in the initiative at its launch this morning.

Dr. Leroy Almendarez, Executive Director, BELTRAIDE

“Today we are launching this initiative called the Belize Investment and Business Climate Action Plan. This looks at wholesomely the whole environment we are doing in Belize. Many times we might say we are open for business but are we making sure we are addressing any challenges for persons who potentially want to do business in the country. Are we addressing that? So this has to do or really it is an output from three different initiatives, one being the National Investment Policy and Strategy, the MSME Policy and Strategy and an Export Competitiveness Road Map. In essence, we look at are we ready for investment to come into this country and when we talk about investments it is not only foreign investments but also local investments? Are we meeting their needs, do we have the legislation? Yes, we have new legislation and the new legislation makes it much easier to do business.”

BIBCAP has been established on nine key policy pillars that seek to increase facilitation of domestic and foreign investments, foster MSME growth and development, promote innovation, and enhance Belize’s overall competitiveness across the region. Ishmael Quiroz, the Executive Director of the Economic Development Council, explained that technical groups have been created to take action on these objectives.

Ishmael Quiroz, Executive Director, Economic Development Council

“Today’s event is actually the activation of technical working groups that will be tasked with implementing the nine pillars of the now Belize investment and Business Climate Action Plan. So, what we have brought together are the action owners, the technical persons involved from the public and private sector and other organizations that have a role to play in actioning the items that are to be delivered. Today’s event is meant to bring everyone together so that everyone is on the same page in terms of the objectives, the tasks that need to be completed and their critical role in achieving success.”

In its totality, the nine pillars identified two hundred and sixty-six actions for which a total of sixty-seven deliverables have been identified. It is expected that by 2030, Belize’s business and investment climate will be one of the most advanced in Central America and the Caribbean. Lincoln Blake, the Director of the Investment Policy and Compliance Unit, is leading the charge in developing the policies to this end.

Lincoln Blake, Director, Investment Policy and Compliance Unit

“Our strength within that organization or structure is policy. We drive the policy changes and recommendations for there to be change and objective to be met. One of the main objectives of BIBCAP is that by 2030 we expect to be a significant investment hub within the Caribbean and Central America. So all of our initiatives, the two hundred and sixty-six actions are geared towards that objective and the deliverable of that objective. We have sixty-seven. The main deliverable is to produce employment, increase production and diversify the economy. Hence, having a better standard of living, that is the main drive behind it. We are already looking at ways to fast track investments. We are looking at amendments to the Designated Processing Areas Act, the Fiscal Incentives Act. We have created more tools for the enhancement and support of MSMEs because they are one of the key drives for the economy.”

Reporting for News Five, I am Paul Lopez.

A New Loan Opportunity at DFC for Fisher Folk

Today, licensed artisanal fisher folk were drawn into a pilot project with the Development Finance Corporation and key conservation NGOs. Before today, fisher folk could only access loans if they possessed land title collateral. But through this project, financing is being made much easier for these micro businesses that rely on marine resources to earn a living. News Five’s Marion Ali was at a meeting involving the relevant parties and filed this report.

Marion Ali, Reporting

The room full of NGO representatives, licensed fisher folk and the C.E.O. of the Development Finance Corporation discussed a new initiative designed especially for fisher folks. It falls under an upcoming Resilient Bold Belize project. This new loan program will support licensed small-scale fishers who wish to switch to more sustainable equipment, new boats, and other capital needs assistance with diversifying into non-traditional fisheries.

Henry Anderson, C.E.O., Development Finance Corporation

“What we did was to look at different levels, different collateral requirements, and at some levels it doesn’t require collateral, it requires a promissory note. At other levels, you take a bill of sale, it’s over the engine, and then you could get a guarantor. And then for the much bigger loans, then you get into, you must provide collateral. So that’s to make it more inclusive. The interest rates are between eight and a half to 12 percent. The lower end is for women.

We’re trying to get more women into the fishing industry.”

One of the organizers of the initiative is the World Wildlife Fund, represented today by Juliet Neal. She said that part of the loan program would be based on character, hence fishers who break the law will be monitored.

Juliet Neal, Conservation, Finance and Policy Officer, W.W.F.

“Demonstrating good character is a person who does not break the law, who does not have a history of doing so. And as you will hear from a lot of the fishers in the area, they want fishers to be fishing in grounds that are following the law. So I believe that even fishers would be pointing to, encouraging the fisheries department to ensure that those who are getting licenses are compliant with the law.”

Norman Castillo is the President of the Hopkins Fishermen’s Association and the President of the Glover’s Reef Marine Reserve. His association also includes women. Castillo expressed frustration over the fact that prior to now, fisher folk have been left on their own to fend for their livelihood.

Norman Castillo, President, Hopkins Fishermen’s Association

“There are nothing given to the fisher folks in this country with the exception of meeting, meeting, meeting, consultation, consultation, but nothing back to the fisher folks. There are several people in this country that get grants, but fishermen do not get anything. The protection is that is our livelihood. We have to protect that for us to survive. We have to protect our area. The loan itself now is a great initiative and I hope you go to, in terms of saying, as I have just said, for minimal percentage of rate, but fishermen are eager and honestly wanted to get that loan going forward and we need that loan because this will be the first time again in history of fishing that we get something, if we do get it. Cooperatives are no help to fisher folks in this country. Cooperatives only buy and sell.”

D.F.C’s Chief Executive Officer, Henry Anderson explained that this project is a part of a much bigger initiative which involves the development of a Project Finance for Permanence, or PFP, a financing mechanism aimed at attracting resources to take care of protected areas.

Henry Anderson

“The PFPs that you find you have, I think Costa Rica has, you have for Brazil, like in the Amazon, there is none in the blue space. So what Belize is doing right now, this is a first in the world, that PFP will come alive perhaps at the end of this year – early next year. But the testing of this pilot is to give the loan, give training, work with the conservation of the area to ensure that the fishers are adhering and providing data in terms of the sustainable fisheries management of that area. And you’re getting training in how to manage your loan, how to make your business more profitable, how to understand their numbers and everything like that. So, it’s a holistic approach aimed at improving firstly the livelihood of the fisher folk, because it’s about people, and then obviously to get them to protect the area where they live from.”

The loans will extend for periods of twelve months to seven years with interest rates up to twelve percent, with lower rates for women fishers. Marion Ali for News Five.

DFC to Offer More Climate-Related Assistance

On January thirty-first, the Development Finance Corporation applied to the Green Climate Fund for green climate accreditation. The move positions the D.F.C. to access up to fifty-million U.S dollars in Green Climate Funds, which will empower it to spearhead transformative initiatives along the path of sustainable development and environmental protection. Today, following the launch of the fisherfolk loans project, D.F.C.’s Chief Executive Officer, Henry Anderson told News Five that this move is all part of D.F.C.’s transition to fill the role that it was designed to carry out.

Henry Anderson, C.E.O., Development Finance Corporation

“We have on board an environmental and social management system. We do have a stakeholder engagement and communication policy, and we have a grievance mechanism. When this partner – the discussion around this partnership started because of our new policies. When we introduce a new product, we have to do stakeholder engagement. So with this product, there were a lot of meetings held with the fishers out at Glover’s Reef, in Hopkins, in Dangriga, and that led to several iterations of it, listening to what they need and then making a product that meets their needs. And that’s why it’s four different products we’re offering to meet their needs. So it allowed us to innovate and improve the product we had. And so now we’re testing it. And again, the testing is not only on the product, but it’s also the holistic, improving their lives while at the same time, improving the management of the area.”

Social Security Board Demands Respect

This morning at eight a.m., the Christian workers Union and Social Security Board convened outside the Social Security Headquarters in Belmopan where they staged a peaceful protest. About thirty S.S.B. employees gathered in the hopes of meeting with their management in order to voice their displeasure on what they claim, is a recurring issue of unfair treatment of the union members and special allowances to nonmembers. This is what Leonora Flowers, President of the Christian Workers Union, had to say on the issue.

Leonora Flowers, President, Christian Workers Union

“The inspectors have gathered out here today to voice and show their displeasure to management regarding an issue that we were informed about. They had made certain agreement with us when we queried an unfairness that was occurring and, unbeknownst to us, they changed on that plan. What was and is still so concerning is that this decision, the change occurred in a couple of days after we signed the agreement. So here we are chairing on SSB that we have signed our new CBA and then they’re changing the course on us. So we’re here gathered with our members to ensure that they know that this cannot continue. We need to be respected and the integrity that they demand from our inspectors, we also demand it from the management and of Social Security. The CEO was gracious, she allowed us to voice our opinion, everyone who wanted to have a say was able to do that. And we were able to impress upon her our sentiments, deep, grave, concerning, and the kind of agitation that we’re prepared to put forward to ensure that we’re heard and our members get the justice that they deserve. All we want is fairness. All we’ve ever wanted is fairness from SSV. And we continue to stand on that. It went as planned, but we have to give management their time to meet with their with the management to meet among themselves and to come back to us. And that’s what, that’s what the CEO offered, that they will get back to us. We tried to tie her to a time. But in all fairness, she said she was unable to give us a time. But we are hoping that the better judgment will rule out at the end of the day. The Act specifies certain things and we expect Social Security to live up to that”.

Christian Workers Union Puts Foot Down On Suspected Union Busting

The Christian Workers Union’s issue with the treatment of S.S.B. staff by management does not stop at feeling disrespected. The union claims that the special allowances granted towards nonmembers are a subtle form of union busting. As per regulation, Social Security inspectors are to undergo a mandatory three-year rotation. However, one inspector has been given a six-year extension, and as another extension was approved, the union has had enough. Leonora Flowers, President of the Union had this to say on the matter.

Leonora Flowers, President, Christian Workers Union

“It usually begins with a member getting their letter of transfer, sometimes three, four months before that transfer is to take effect. It happens normally in the summer months so that people are able to take their children and their family, move families across the country. That has been going on for 42 years, since SSV began. It has only gone on that sometimes, a member spends an additional year over or under in a certain location. This specific person has spent nine years in one location and that has been the contention that we’re Out 4:38 looking at toda. It was brought up to them October 2022 and we discussed it in August and in September 23 and the decision was made. The person was not going to be transferred in September because it was too short a window. We agreed. But they decided that it would happen in January. We agreed to that. And we understand that the transfer letter was sent out. Lo and behold, it was just rescinded a couple weeks ago. And you can, “the rest is history”. The person we’re talking about getting the special treatment is not a union member. So it goes without saying that our members will believe it’s union busting. If you can’t mete out the same kind of justice to everyone, then our members are at a loss. So it is union busting. Some may say no, but we believe that it is. The facts will show. We did not give an ultimatum. We’re leaving it for the management to decide and to use their better judgment, their best judgment in this situation. No need for ultimatum as yet. And we will not show our hands. We know what we have at our disposal. Our members are firm about this. They’ve given us a clear directive and we will continue to take a stand on their behalf”

Interim Injunction Granted to Belize Bank Against Central Bank

An interim injunction barring the Central Bank of Belize from enforcing what is known as Practice Direction Number Seven of 2023, has been ordered by High Court Justice Nadine Nabie. This morning, Senior Counsel Godfrey Smith and attorney Hector Guerra appeared on behalf of the Belize Bank Limited where a claim has been filed against the financial regulator. Practice Direction Number Seven seeks to restrict fees and charges in the domestic banking sector as issued by the Central Bank of Belize and any attendant penalties should the applicant’s fail to comply with its terms. The hearing for Belize Bank’s application for judicial review is set for February twelfth, 2024. The Central Bank of Belize is represented by attorney Yohhahnseh Cave.

Belize’s G.D.P. To Grow by 3.6%

The Preliminary Overview of the 2023 Economies in Latin America and the Caribbean indicates a persistently low growth trajectory in the region. This is according to a report compiled by the United Nations’ Economic Commission for Latin America and the Caribbean. According to the report, Belize’s gross domestic product (G.D.P.) is expected to grow by three point six percent, a decrease from four point eight percent in 2023. Jamaica will see the least growth with one point nine percent, while Guyana is expected to see the biggest increase with twenty-eight point nine percent. The report highlights multiple challenges hindering short-term growth, including a sluggish global economy in terms of G.D.P. growth and trade. The report also states that there is limited room for fiscal and monetary policy maneuvers in the region. Given this context, the commission stressed the importance of macroeconomic policies to stimulate increased investment, fostering resilience to climate change, and enhancing the region’s capacity for sustained growth.