News Report: "‘Serious regression’ in ease of doing business over the past decade"

Published by Natario Mckenzie, Eyewitness News, October 7th, 2024

NASSAU, BAHAMAS – There has been a “serious regression” in the ease of doing business in the country over the last decade, according to the Chairman of the Bahamas Chamber of Commerce and Employers Confederation (BCCEC), who noted, “It’s demoralizing for the business community.”

Tim Ingraham, who was speaking as a panelist on the “Keys to strengthening our economy” panel at the BCCEC’s annual national conclave of chambers of commerce on Friday, noted that this assertion was backed by a chamber survey which showed that contact between the business community and government entities has gotten worse, except for the National Insurance Board (NIB).

“I think anyone who has done business in this country for the last 10 years or so can attest that there has been a serious regression in the ease of doing business. A survey prior to this conclave shows that in virtually every aspect of contact that the business community has with entities that can improve the ease of doing business, it has gotten worse. The only exception was NIB, which has improved. We continue to drop down the ladder on the ease of doing business. It’s demoralizing for the business community.”

Ingraham went on to note that while Inland Revenue officials have expressed alarm at the number of $5 million-plus turnover companies that are being audited or preparing financials for the first time to meet the new Business Licence mandate, this was no surprise to the BCCEC, which had urged the government to give the business community at least another year to get prepared.

Ingraham said: “We sat in their office prior to the budget and said the exact same thing. We said give them at least one more year to the business community to get ready, but the audit was implemented in the middle of the financial year and what happened is a number of businesses have had to ask for extensions. It serves no one and doesn’t look good to do it the way it’s been done. Let’s simplify systems.”

Brickell Pinder, Director of Trade and Industry, Ministry of Economic Affairs, noted that the government has made significant efforts toward the digitization of services. “It’s clear that while that progress has been necessary, it has not been sufficient,” said Pinder.

She noted that the World Bank released their Better Business Report, which included Barbados as the only regional country in the top tier in terms of operational efficiency and in the second tier in terms of public services and regulatory framework.

Shirley Gayle – IDB country representative for The Bahamas noted that in terms of investment opportunities, solar is an emerging sector as well as the blue and green economy. She noted that tourism is also “ripe” for diversification and what kinds of products The Bahamas can offer.

Regarding the ease of doing business, she noted: “I don’t think we can underestimate what the ease of doing business really means. It’s simplifying business processes. Any interaction that a business has to do with government, all those things are critical. This is something that affects small, medium, and large businesses, local businesses as well as foreign investors. Foreign investors look at the environment, the climate, the support around starting a business.”

Gayle noted that in partnership with the government of The Bahamas, the IDB provided a $25 million loan in 2019 and is being administered through the SBDC, which provides guarantees for loans issued to MSMEs. “The program we think has been very successful. To date, we have issued guarantees for just under 100 SMEs. They have had their loans secured by this facility. The sectors are varied—tourism, fishing, green energy, fashion, food, and beverage to name a few—and it’s across multiple islands. This is the kind of example of initiatives that can support business in the landscape.”

She also noted that the bank provided a $600,000 grant for the support of training of 28 businesses who are now certified as small business consultants to provide support for other fledgling enterprises. “We think a lot is going to depend on the government providing the enabling environment. It is critical for the government and private sector to work together.”

Erika Lewis – Political/Economic Unit Chief at the US Embassy, noted that many US companies are interested in the Bahamas renewable energy sector. “We see a lot of U.S. companies coming to the Bahamas; they’re interested in this renewable energy sector. We also see niche tourism that has growing interest from U.S. companies.” She noted that U.S. companies rely on the Embassy for advice on operating in a local context.

David Slatter, Royal Fidelity VP & Group Head of Investments, RF Bank & Trust, noted that the government must move out of the way to allow the private sector to do what it needs to do to succeed.

“The government should ensure infrastructure is in place so the private sector can do its job and ensure that the labor force is skilled. We all know that the labor force is anything but skilled. There are things that the private sector can’t do and needs the public sector to step in,” said Slatter.

Read the entire article here >>> https://ewnews.com/bccec-chairman-serious-regression-in-ease-of-doing-business-over-the-past-decade/