Jamaica: Investing

FDI in Figures

According to UNCTAD's 2021 World Investment Report, FDI flows to Jamaica accounted for USD 366 million in 2020, down from USD 665 million in 2019 (-45%), following the global economic crisis triggered by the Covid-19 pandemic. The FDI stock reached USD 17.5 billion in 2020, making Jamaica the largest recipient of FDI among small island developing states. The government sought to convince investors in business process outsourcing to keep their operations in the country. The sectors attracting the most FDI are the bauxite industry, telecommunications, tourism and construction. The United States, the United Kingdom and Canada are the main investing countries. Over 60 outsourcing firms operate in Jamaica, generating USD 700 million in revenue and employing roughly 40,000 persons, according to data from the Jamaican Government’s marketing agency, Jampro. As per the latest figures from the Bank of Jamaica, in the first three quarters of 2021 FDI inflows reached USD 233,6 million, marking a decrease of 14.7% compared to the same period one year earlier.

The country aims to become a logistical hub between North and South America, which requires the development of transport infrastructure (maritime, aviation, road and rail) and logistics. The Jamaican Government offers incentives such as easy payments methods, grace periods for tax payments and duty-free imports to foreign investors. The country has many assets, including its strategic geographical location, rich natural resources and a significant capacity to receive large numbers of tourists. Jamaica applies the principle of national treatment to foreign investors and does not impose limits or control on foreign ownership. However, under the Jamaican Companies Act, investors are required either to establish a local company or to register a branch office of a foreign-owned enterprise. No formal screening mechanisms exist for foreign investments. The government also established Special Economic Zones in which operators benefit from a 12.5% reduced corporate income tax rate; customs duty relief, General Consumption Tax relief; employment tax credit; promotional tax credit on research and development; capital allowance; and other incentives. Nevertheless, high criminality (e.g. security is required to protect the physical infrastructure of most properties and Jamaica's murder rate remains one of the highest in the hemisphere), a significant number of drug traffickers, corruption and the risk of natural catastrophes remain hindrances to FDI. Jamaica was ranked 71st out of 190 countries in the World Bank's latest Doing Business ranking, a four-spot rise from the previous edition.

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Latest Update: February 2023