Grenada: Investment Profile

Grenada is a tri-island state which comprises Grenada, Carriacou and Petite Martinique and several other small islands.

A tropical island located in the Caribbean region; it is part of the Windward Islands at the southern end of the Lesser Antilles chain and the Caribbean Archipelago. The island is 12.07º North latitude and 61.40º West longitude. Grenada is ideally located in close proximity to international and regional markets – 1,623 miles (4-hour flight) between Miami; 4, 349 miles (8-hour flight) from London; 162 miles (50 minutes flight) from Barbados and 103 miles (45 minutes flight) from Trinidad.

The island has one of the most pristine physical environments in the Caribbean and offers a high quality of life, low crime rate and a relatively un-spoilt natural environment. It is dubbed “the spice island” with features such as spice plantations, lush verdant mountains and rain forest, cascading waterfalls, rivers, volcanic crater lakes and ponds, tropical flora and fauna and beautiful white and black sand beaches.

The country has good physical infrastructure which is inclusive of an international airport with a 9,000 ft. runway, contemporary port and cruise ship facilities and modern telecommunications network which makes the country well poised for investments.

The Government and GIDC recognize the contribution of private enterprises towards the growth of the economy. Economic policies and investment incentives have been created to foster a conducive enabling environment. Investors can benefit from a stable democratic style of government; an equally stable economy, developed infrastructure inclusive of telecommunication and electricity, reliable investment support services, an attractive citizenship by investment program, low crime rate and good quality of life.

Investment opportunities can be found across a wide range of sectors including tourism (boutique hotels, villas, condominiums, attractions, and other tourism auxiliary support services); agribusiness and agro–processing, information communications technology (incoming call centres, business process outsourcing), health services (assisted living facilities, hospitals, health clinics and medical facilities), education and training services, energy development and the creative arts.

We remain committed to our motto “Empowering the Spice Isle” and thus present you with this publication which can serve as a tool to guide your investment decisions. The magazine contains information on Grenada, the key growth sectors, investment opportunities, steps for conducting business and the factors that make Grenada an ideal investment location. We invite you to peruse the pages, take-in all that we have to offer, and make the choice to invest in Grenada.

Quick Facts

Grenada, Carriacou and Petite Martinique.
Area, including all three islands is: 344 km2
(133 sq. miles)
Capital: St. George’s
Population: 114,000
Size:133 sq. miles
Currency: $XCD (Eastern Caribbean Dollar)
English is the official language.
Legal system is based on English Law
Stable economy relying mainly on tourism and agriculture.

Country Profile

Territory

Grenada is a tri-island state which comprises Grenada, Carriacou and Petite Martinique and several other small islands.

Geographic Location

Grenada is an island located in the Caribbean region; it is part of the Windward Islands at the southern end of the Lesser Antilles chain and the Caribbean Archipelago. The island is 12.07º North latitude and 61.40º West longitude. Grenada is ideally located in close proximity to international and regional markets – 1,623 miles (4-hour flight) between Miami; 4, 349 miles (8-hour flight) from London; 162 miles (50 minutes flight) from Barbados and 103 miles (45 minutes flight) from Trinidad.

Population and Demographic

Category	Numbers
Population (2022)	114,000
Population Growth Rate (2022)	0.8%
Gender Composition (2022)	Male: 50.53% of the population Female: 49.47% of the population
Labour Force (2022)	71.5% of the population
Unemployment Rate (2022)	13.9%
Adult Literacy (2022)	98.60%

Land/Area

Collectively, the tri-island state of Grenada, Carriacou and Petite Martinique is a total area of approximately 342 square kilometers (133 square miles).

Climate

Grenada has a tropical climate; average temperatures range between 75°F and 85°F (24°C to 30°C). The lowest temperatures occur between November and January. The climate is generally warm throughout the year with some seasonal changes – the dry season is between January and May while the rainy/wet season is from June to December.

Environment

Language

English is the official language in Grenada. However, since the island has a diverse population, it is not uncommon to hear other languages such as Spanish and Patois.

Ethnic Groups

Grenada has a mix of ethnic groups. Approximately 82% of the population are of African descent with the remaining 18% comprising a mix of East Indian, Caucasian, Chinese, Syrian/Lebanese and Hispanic ancestry.

Religion

Religious practices in Grenada primarily comprise of Christians, Rastafarians, and Muslims. The main Christian denominations are: Roman Catholic, Anglican, Pentecostal, Seventh Day Adventist and Baptist.

Culture

Grenada has a dynamic culture that represents the mix of ethnicity on island. Grenadian culture is expressed through pageantry, music, poetry, dance, sport, recreation, cuisine and theatre.

Infrastructure

The country has good physical infrastructure which is inclusive of an international airport, contemporary port and cruise ship facilities and modern telecommunications network which makes the country well poised for investments.

The Government of Grenada and the GIDC have recognized the valued contribution towards economic growth by the private enterprises and as such have undertaken activities to foster a conducive enabling environment through the creation of economic policies and investment incentives.

We encourage Investors to engage in lawful economic activity and take full advantage of all investment benefits such as; minimum entry requirements, adequate physical and technological infrastructure, attractive fiscal incentives and efficient business support services among others. For the past 35 years, we have been of service to our investors through the provision of; investment facilitation, real estate infrastructure (manufacturing, warehousing, storage and office space), business support and guidance to small and medium size enterprises all of which contributes to the establishment of business operations.

Economic Profile

Key Economic Indicators

GDP = $1.12 B 2021
GDP per CAP = $9,016.90 2021
GDP Growth Rate = 4.7% 2021 ( 6% 2022)
Current A/C Balance = -293,775,902 2021
Consumer Price Index = $108.60 2021
Export of Goods, Services and Primary Income = 412,553,982 2021
Import of Goods, Services and Primary Income = 735,068,174 2021

Source World Bank

Exports

Grenada’s main export products are Coca, Nutmeg, Mace, Fish, Fresh Fruits and Vegetables, Wheat Bran, Flour, Animal Feed, Malt and Beverages, Clothing, Paints and Varnish and Paper Products.

Imports

The primary imports to the island are Fuel, Crude Material, Chemicals, Machinery, Food and Live Animals, Manufactured Goods, Equipment and Transport.

Trading Partners

Grenada exports and imports products between several countries throughout the OECS, CARIOCM, Caribbean, Americas and the European Community:

Trade and Investment Agreements

To facilitate trade and investment, a variety of trade agreements have been established between Grenada and several regional and international countries which allows business investors to access many lucrative markets. These include Trade Agreements, Economic Partnership Agreements, and Bilateral Agreements

TRADE AGREEMENTS

Caribbean Basin Initiative (CBI) (1993)

CARIBCAN (1986)
CARICOM (1973)
VENEZUELA-CARICOM AGREEMENT (1992)
COLOMBIA-CARICOM AGREEMENT (1994)
DOMINICAN REPUBLIC-CARICOM AGREEMENT (2001)
CANADA-CARICOM (1979)
CUBA-CARICOM Trade and Economic Co-Operation Agreement (2000)
Costa Rica-CARICOM Agreement (2004)

ECONOMIC PARTNERSHIP AGREEMENT

CARIFORUM-EC EPA

Bilateral Investment Agreements

The Bilateral Investment Agreements have been designed to encourage and protect international investments and to ensure that investors receive fair, equitable and non-discriminatory treatment. The agreement is established between Grenada and the following countries.

BILATERAL AGREEMENT

INVESTMENT PROTECTION AND PROMOTION AGREEMENT WITH THE UNITED KINGDOM
RECIPROCAL ENCOURAGEMENT AND PROTECTION OF INVESTMENT WITH THE USA

CSME

CARIBBEAN SINGLE MARKET AND ECONOMY (CSME)

Grenada’s Investment Promotion Agency

The GIDC

On March 01st 1985, the Grenada Industrial Development Corporation (GIDC) commenced operations as a statutory body, established by the Government of Grenada to stimulate, facilitate and encourage the establishment and development of industry.

The Corporation has evolved since its inception. Through an Act of parliament (Act No. 30 of 2016), the name was changed to Grenada Investment Development Corporation (GIDC) and restructured to be an Economic Development Corporation that adopts a targeted approach to promoting investment opportunities and entrepreneurial development services.

The core services of the corporation include:

Promoting and facilitating local, regional, and international investments into Grenada.

Fostering an enabling environment by advocating to the government for policies that will further enhance the investment climate.
Nurturing entrepreneurial culture and facilitating the start-up, growth and export readiness of new and existing enterprises through incorporation/registration of enterprises and business management training.
Providing commercial lease space for local, regional and foreign businesses through three (3) business parks as well as conference and meeting facilities.

Investment Promotion Agency

The Investment Promotion Agency (IPA) is the primary facilitator of investment services for existing and potential local and foreign investors in Grenada. The IPA’s vision is to be “ranked as the number one Investment Promotion Agency globally” while its mission is “striving to contribute to Grenada’s socio-economic development by generating and facilitating sustainable local and foreign investments”.

Core Responsibilities:

Promoting and facilitating investments in Grenada
Advocating for policy changes that will improve the investment climate

Core Services:

Promoting Grenada as an investment location including providing information on projects/sites available for development or investment
Processing of applications for investment incentives
Assisting clients to secure required licenses, permits (including completing work permit applications) and approval to operate and or expand their businesses
Providing advice and information on doing business in Grenada
Providing investment, trade and economic statistical data
Hosting investment missions and arranging meetings on behalf of clients with key agencies (government, attorneys, tourism authority etc.)

In keeping with its mission to support economic and social development, the IPA has been facilitating investments and advocating for an enabling environment in which business, trade, and industry can prosper. The GIDC Investment Promotion Agency provides a “One Stop Investment Facilitation” service for all investors. The services offered by the Corporation include business and investment advice on doing business in Grenada; the processing of applications for fiscal incentives; assisting investors to secure all required approvals, certificates, work permits, land for projects’ realisation, and such other support and assistance that investors may require to establish and to operate their projects; business support services including technical assistance for business diagnostics and the preparation of business plans and access to affordable factory space.

Investment Sectors

Grenada offers a range of diverse investment opportunities within five (5) key growth sectors namely Tourism & Hospitality Services, Health & Wellness, Information Communication Technology, Energy and Agri-business & Manufacturing. A favourable investment climate is present on island and is inclusive of competitive cost levels for labour force and utilities, well educated workforce, time zone advantages, good quality of life and adequate infrastructure/facilities to house business operations.

Tourism and Hospitality

The tourism and hospitality sector remains poised as the fastest-growing sector within the Grenadian economy. Grenada’s tourism industry continues to attract substantial Foreign Direct Investment for new luxury and boutique hotels which complement the natural white sand beaches, lush verdant mountains, and cascading waterfalls. As the sector continues to expand, various opportunities in niche areas are available for further development of this vibrant industry.

Unique investment opportunities are available in:

Marina & Yachting
Boutique Hotels and Villas
Dive and Scuba Centres
Auxiliary Tourism Services (restaurants, adventure tours, eco-tourism attractions etc.)

Health and Wellness

The healthcare sector in Grenada presents many opportunities for unique development. The sector welcomed significant investments in diagnostic centres, laboratories, and wellness facilities, however, there is increasing demand for specialised treatment centres and other health-related services.

Additional Investment opportunities in the sector include:

Assisted Living Facilities
Physiotherapy Facilities
Substance Abuse Rehabilitation Centres
Day Spas
Fitness Centres
Retirement Homes

Education and Training

Grenada is home to the prestigious medical school, St. George’s University (SGU), which has become the #1 provider of doctors into first-year US residencies for the last 8 years. The increased demand for skilled, qualified service providers, and the island’s young trainable workforce means that Grenada is an ideal location for educational development and investment.

Investment Opportunities in this sector include:

Technical and Vocational Skills Training Centres
Colleges and Universities
Publishing of Books (textbooks, maps, brochures, magazines etc.)

Agribusiness and Manufacturing

Agriculture is a critical sector for Grenada’s developing economy. The island is known to be a world-class and large-scale producer of Nutmeg and Cocoa. Given the abundance of fertile soil, access to key international markets and the increasing demand for fresh fruits and vegetables, Grenada has enormous investment potential within the Agribusiness sector.

Investment Opportunities include:

Poultry and small Ruminant Farming
Hydroponics and Aquaponics
Agro-Processing
Beekeeping
Fisheries and Aquaculture
Furniture, Art and Craft Making
Organic Farming
Production of Natural Health &Beauty Products
Water & Beverage Bottling

Energy Development

The effects of climate change, its impact on food security and high energy costs necessitate the need for a clean and green energy transition. As a tropical island with an average of ninety per cent (90%) sunshine yearly and ideal wind speeds, Grenada is perfect for alternative energy harnessing.

Attractive investment incentives are available for projects in:

Solar Panel & Water Heater Assembly Plants
Alternative Energy Harvesting (solar, wind, geothermal)
Natural Gas/Oil Refinery

Information Communication Technology

Advanced Technology has changed the way that businesses function and communicate. The Information and Communication sector in Grenada continues to be powered by high levels of innovation which accounts for its enormous growth potential.

The prominent BPO sub-sector of the ICT sector has also heightened in growth and continues to be poised for significant expansion. The main attributes that drive Grenada’s growth and provide a significant advantage are the island’s proximity to the US mainland, time zone affinity, strong telecommunication networks and a well-educated English-speaking population.

Investment Opportunities in this sector include:

Customer Service Contact Centres
Business Processing Outsourcing Centres
Software Development
Development of Mobile Device Applications
Provision of Telecommunication Services

The Creative Economy

Creative Industries are fast becoming a new engine of growth and development in several Caribbean nations. This dynamic sector, which ranges from traditional arts to multimedia, has been an important driver of innovation and productivity growth.

As Grenada continues to leverage the abundant talents and skills of its population, this sector is poised to be rapidly transformative as it relates to income generation, job creation and export.

Investment Opportunities are available for projects in:

Music Production
Film Production
Gaming
Fashion Design
Visual Arts

Why Grenada

Economic and Political Stability

Grenada has a stable economy that can be attributed to varying sectors – agriculture, manufacturing service industries – that contribute to GDP. The increase in exportation over the last ten (10) years also contributes to the stability of the economy. Furthermore, the country is a democratic state; the government remains committed to facilitating economic growth through development of policies that will foster a thriving enabling environment.

Legal and Regulatory Framework

There is minimum entry requirement, no restriction on foreign ownership or foreign currency transactions, easy movement of capital, profit and dividend, interest and other distribution or gains.

Excellent Quality of Life

With one of the most pristine physical environments in the Caribbean, Grenada offers high quality of life, low crime rate and a relatively unspoilt environment. The country’s physical beauty and tropical climate is complemented by its rich history and vibrant cultural heritage which makes it a great place to live and do business.

Ease of Doing Business

Grenada continues to reform its process to facilitate ease of doing business. The World Bank 2018/2019 report grouped Grenada as one of twenty-three (23) countries making it easier to start a business through the simplification of preregistration and registration formalities (publication, notarisation, and other requirements).

Modern Infrastructure

Grenada’s basic infrastructure to support investment – sea and land transportation, electricity generation, telecommunications, and water – is quite developed and is regarded as good and supportive of competitiveness by investors.

Investment Incentives

The Government of Grenada continues to encourage the establishment and development of new businesses and offers a wide range of incentives to potential and existing investors. All projects/business operating in the growth sectors are eligible for incentives. These incentives are designed to make investing in Grenada more profitable; they include:

100% investment incentives up to 15 years
Tax exemptions and waiver of duties on building materials, furnishing, fixtures, equipment, packaging material and raw materials
50-100% property transfer tax waivers
Tax credits of 150% for training, research and development
Waiver of duties on the importation of commercial vehicles
Waiver of VAT on importation of capital goods

Doing Business in Grenada

Investors are free to operate in all fields of lawful economic activity and should not engage in activities that are prejudicial to national security or detrimental to the natural environment, public health or the national culture.

CARICOM nationals/companies are accorded Rights of Establishment and can establish a business and import their managerial, supervisory, or technical staff. Applications for Rights of Establishment must be made through the Ministry of Foreign Affairs. Supporting documentation to accompany the application is the Business Name Certificate/Certificate of Incorporation and Statement of Particulars, proof of CARICOM nationality, police certification of good character from home country, proof of financial resources and signed lease agreement for the premises of occupation in Grenada.

If the CARICOM national intends to establish his/her business and move with managerial, supervisory or technical staff then, the business owner must: submit a letter to the Ministry of Foreign Affairs requesting free movement for the relevant members of staff, submit a copy of the employment contract for each staff that will be moving, a list with spouses and dependents, a valid passport, marriage certificate (where applicable) and police record for each staff member.

Registration of Businesses

Sole Proprietor or Partnership

Every person who intends to operate a business in Grenada is required to register a business name with the Supreme Court Registry. That person shall apply for registration of the business by submitting Statement of Particulars of the business to the Registrar which includes the following:

The contact details of the applicant
The proposed business name
The nature of the business
The address of the business
The ownership of the business
The date of commencement of the business

Notes:

The Business applicant must not be less than eighteen (18) years of age
The prescribed fee for registration is XCD$25.00

Company: profit/not for profit

One or more persons may incorporate a company by signing and sending the following documents to the Registrar of Companies:

Request for Name Search and Name Reservation
Articles of Incorporation
Notice of Directors
Notice of Address

The Attorney General must approve the Articles of Incorporation of a non-profit company prior to its registration.

Prescribed Fees
Request for name Search and Name Reservation	XCD $10.00
Submission of Articles of Incorporation for profit	XCD $600.00
Submission of Articles of Incorporation not for profit	XCD $100.00

Registering for Taxes

Every business operating in Grenada is required to register with the Inland Revenue Department within one (1) year of commencement of the business operations. The following is required:

Business Registration Certificate
Form of Identification (Driver’s License etc.)
Completed Tax Registration Form

Registering for Social Security

All businesses operating in Grenada are required to register with the National Insurance Scheme within seven (7) days of commencement of the business operation. Employers must register and pay contributions on behalf of their employees – registration for an employee must occur within four (4) days of commencing employment. An employer’s contribution is 6% of the gross earnings of an employee while the employee’s contribution is 5% thus totaling the 11% of social security contributions.

Permits and Licenses

Establishing and operating businesses in Grenada may require business owners to obtain permits and licenses. Permits and licenses most frequently needed include Land Development Permit, Alien Landholding License, Hotel/Guest House License, Refreshment House License, Building Contractor Permits and Trade Licenses among others. To obtain these permits or licenses, applications must be made to the relevant authorities – Physical Planning Unit, Prime Minister’s Office, and Ministry of Finance.