Belize investment

Investment overview

BELTRAIDE, the government's investment agency, comments on the attractions for investors in Belize.

Promoting itself as 60 seconds to NAFTA - the time it takes to cross the International Bridge of Friendship into the neighbouring NAFTA country of Mexico - Belize is poised for considerable investment opportunities. Belize's government and business leaders are forging innovative strategies aimed at accelerating its already impressive growth rate. Where traditional crops like sugar, citrus and bananas have long been the mainstay of the economy, this small Caribbean country in Central America is looking for new opportunities where its natural resources, work force and proximity to the world's largest trading block give it a natural competitive edge.

New free trade zone established

New legislation recently approved sets up Belize as a legal island of free trade and free flow of capital. Several Free Trade zones are now established and the newest development - the Santa Elena Free Trade Zone is located right on the border with Mexico, within easy trucking distance from the US southern border.

Belize has signed up to join NAFTA along with the rest of the Caribbean and Latin America as part of the US-sponsored Enterprise for the America's Initiative. But Belize has already taken the initiative and exploited its enviable geographical location by moving to establish in-bond manufacturing facilities in Belize in conjunction with Mexico. The proposed Belize-Mexico Industrialization Program would allow foreign companies to ship components and equipment into Belize for assembly and re-export.

High quality human and natural resources--an unbeatable combination

With a 90% literate work force, Belize is focusing in its human resources to develop new businesses like light manufacturing, telecommunications, tropical fruits and tourism. Tourism has recently become a big foreign exchange earner with increasing investments in eco-tourism resorts. To support this economic transformation, the government has placed new emphasis on education, with new training programs and degrees in everything from technical and computer operations to tourism management.

Pristine tropical and sub-tropical eco-systems assure Belize of a significant niche in eco-tourism. The number of tourists visiting the country has quadrupled since the 1980s reaching over 100,000 visitors in 1993. More than 60 hotels have been built since 1990, ranging from world-class luxury establishments like the Ramada Royal Reef to small and intimate family-run lodges and resorts. This trend is encouraged by generous government incentives for local and foreign investors interested in developing resorts and supporting infrastructure and services so long as they comply with the country's strict environmental regulations.

A diverse, peaceful, English-speaking democracy

Situated on the northeastern tip of Central America with more than 300 miles of Caribbean coastline, this former British colony is a trade crossroads between the Caribbean and Latin America. A former British colony, Belize gained independence in 1981 and offers US, UK and Canadian investors a familiar business environment where English is the official language, and the political, economic, legal and educational systems are based on familiar British models.

The country counts among its citizens Hispanics, Maya Indians, African-Belizeans, Middle Easterners, Chinese and Europeans. The country's ethnic diversity has nurtured a climate of social harmony and the frequent peaceful transitions of power between the two political parties.

With a population of a little over 200,000, doing business in Belize is a more personal experience than in many of the neighboring countries. Belize officials are proud of their reputation for friendly and personalised relationships with investors.

Since assuming office in mid 1993, Prime Minister Manual Esquivel and his United Democratic Party have stepped up the previous administration's economic diversification policies and moved to increase transparency and remove remaining investment obstacles.

Belizean goods can access US, Canadian, Caribbean and European markets through preferential duty arrangements. Belize also offers offshore shipping business services. Over 1,000 foreign companies have set up tax-exempt offshore companies in Belize under the new International Business Companies Act. New legislation has also been introduced for merchant ships registry and trust formation designed to work in concert with the IBC Act.

Opportunities in agriculture and food processing

Sugar, citrus and bananas continue to be Belize's chief source of hard currency earnings. Sugar dominates exports, bringing in over 40% of hard currency earnings. Orange and grapefruit are the country's second most important source of foreign exchange earnings especially in southern Belize. Growers produced more than three million boxes of fruit in 1994. The fruit is processed into frozen concentrate which currently enjoys duty-free access to the US market. Citrus growers are modernising orchards and expanding production, mostly for the high-quality Valencia orange.

The banana sector has been one of the country's fastest growing agricultural areas and growers now produce more than two million boxes a year - all shipped to guaranteed preferential markets in the UK.

More than a third of Belize's land, 2.2 million acres, is suitable for agriculture but only about 15% of this is under cultivation. The most dynamic opportunities in this sector are in papayas, ginger, commercial fruit crop production, and furniture and wood products. Shrimp farming is rapidly taking off and has already become the country's fourth largest hard currency earner.

Belize undoubtedly offers the serious investor a wealth of opportunities in a secure and stable climate with the best access to the world's most attractive markets in North America.