Foreign Investment Best Remedy For Bahamian Economy

by Amanda Banks, Tax-News.com, London

26 March 2003

Stimulating the Bahamian economy by means of extra foreign investment is the best way to get the economy back on its feet in the wake of war, a leading financial expert recommended at the recent Imperial Life Financial conference.

Speaking to an audience of largely Canadian Investors, Larry Gibson of Colina Financial Advisors pointed out that there is very little that the Bahamian government can do by way of reducing taxes in order to reinvigorate the economy. He argued that the jurisdiction's main driving force was foreign investment, and that attracting more overseas money is "absolutely the right thing to do" to give the economy a "quick fix".

Gibson also urged the government not to impede prospective investors with excessive bureaucracy. "They don't want to be dragging on for six months, and then to be told no, when they could have pursued opportunities elsewhere," he warned.

According to reports, the Bahamian government has been looking to extend its economic ties with Canada, and Prime Minister, Perry Christie, is keen to see Canadians investing in second homes in the territory, as well as buying financial services and setting up light manufacturing operations.

Christie also told delegates at the conference that the government was "fine tuning" its draft Domestic Insurance Bill, which is expected to be in the fiscal programme this year. The Prime Minister expressed hope that the new legislation will support the government's drive towards a greater emphasis on e-commerce in the financial services sector, thus sharpening the jurisdiction's competitive edge.

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