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Jamaica’s economic stability, in the face of global fluctuations, relies on fostering local investments. These investments fortify the nation’s economic resilience while cultivating technological advancements, knowledge transfer, skills development, and innovation within the local workforce.

The Government, through its Business Ministry, the Ministry of Industry, Investment and Commerce (MIIC), continues to improve the business environment through provisions such as the Special Economic Zones Regime (SEZs).

At the Jamaica Promotions Corporation (JAMPRO), the Manufacturing, Logistics and Special Economic Zones (MLSEZ) Department actively aids investors in seizing opportunities that align with capital expenditure (CAPEX) and job targets in the national economy.

Jamaica’s SEZs are regulated by the Jamaica Special Economic Zone Authority (JSEZA) and offer special tax benefits and fiscal incentives to companies operating in the Zones. This is expected to increase economic growth and employment and encourage growth in new sectors.

As of October 2023, there are 190 SEZ locations across the island, comprising 80 Developers, 68 Occupants and 42 Zone Users.

During a recently held Local Direct Investment (LDI) Seminar, jointly hosted by JAMPRO and JSEZA at the AC Marriott Hotel in Kingston, Berletta Lee, the MLSEZ Manager, emphasized JAMPRO’s ongoing efforts in promoting SEZ investment opportunities.

“It’s a substantial part of our promotional toolkit. We ensure investors are well-informed, answering their queries, and encouraging their investments. Our role involves identifying SEZ developers and occupants for existing and upcoming spaces,” she highlighted.

Establishing Additional SEZs

Kelli-Dawn Hamilton, CEO of JSEZA, revealed plans for the establishment of four SEZs along the northern side of the island. Projects like Pandora, Xandu, West 77 Technopolis and Olympus aim to cater to industrial, pharmaceutical, creative, and sports development, respectively.

“The objective is to start around the environs of the Trelawny multi-purpose stadium…that’s where we intend to establish Olympus, our SEZ focused on sport. You cannot think sport and not think Jamaica and so it is time for us to capitalize on the opportunity to grow sport as a business in Jamaica. Those parcels of land have already been identified [with] Olympus expected to be over 400 acres and Pandora, over 950 acres,” Mrs. Hamilton disclosed.

Advantages of SEZs Operations

Mrs. Hamilton highlighted the major benefits of operating within SEZs, notably the significantly reduced corporate income tax of 7.75% compared to the regular economy’s 25% to 33%.

“How you move to the 7.75% is with the application of employment and promotional tax credits. So that speaks to how many Jamaicans you’re employing, if you pay your deductibles on time, as well as if you’re engaging in research and development that can be offset against your taxes payable to reduce the rate,” she explained.

She further indicated that SEZ companies are also exempt from paying duty on items imported for use within the zone.

“Once it goes outside the zone, duties become payable,” Mrs. Hamilton cautioned.

SEZ companies also pay zero per cent general consumption tax on goods and services purchased for use within the zone. Only new companies that are appropriately registered can be approved to operate within the zone.

Meanwhile, Chief Technical Director in the Ministry, Latoya Richards Franklin underscored that it is local investors “who are enhancing the competitiveness of our local industries.”

She further endorsed the opportunities within the SEZ stating, “this regime offers one of the most competitive incentive packages provided by the Government of Jamaica. I’m also pleased to see the level of engagement in this event, coming from MSMEs, as this sector plays a crucial role in our economy.”

Jamaicans are urged to leverage the myriad investment opportunities and support services offered by JAMPRO and JSEZA to amplify their business prospects. By doing so, they contribute to strengthening the nation’s economic resilience.