Jamaica: Investing

FDI in Figures

According to UNCTAD's World Investment Report 2023, FDI flows to Jamaica accounted for USD 360 million in 2022, up from USD 320 million one year earlier (+12.2%), but were still below the three-year average recorded in 2018-20 (USD 568 million). At the end of the same period, the stock reached USD 18.1 billion (around 113.3% of GDP), making Jamaica the largest recipient of FDI among small island developing states. Jamaica's economy is primarily service-based: FDI is mostly directed towards tourism (27.6%), mining (24.8%), information tech/communication (15.3%), agricultural/manufacturing/distribution (8.3%), minerals & chemicals (2.7%), insurance (0.2% - data Bank of Jamaica). Over 60 outsourcing firms operate in Jamaica, generating USD 900 million in revenue and employing roughly 55,000 persons in 2022, according to data from the Jamaican Government’s marketing agency, Jampro. As per the latest figures from the Bank of Jamaica, in the first half of 2023, FDI inflows reached USD 260 million, marking an increase of 35.7% 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 payment 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 allows both domestic and foreign private entities to establish and own business enterprises and engage in all forms of remunerative activities. There are no restrictions on foreign ownership or control, and local laws do not differentiate between local and foreign investors. Market access is not impeded by sector-specific limitations, although labor, registration, and environmental requirements must be met. 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. Overall, Jamaica ranks 69th among the 180 economies on the 2023 Corruption Perception Index and 34th out of 184 countries on the latest Index of Economic Freedom.

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Latest Update: May 2024