Belize Trade and Investment Development Service : Spotlight

A pioneer in the realm of blue and green economy approaches, Belize’s conducive business climate continues to create investment opportunities.

SPOTLIGHT ON INVESTMENT IN BELIZE

Since 2023, a few key developments can be readily highlighted as directly contributing to a resilient, prosperous, and thriving Belize.  

These include the eagerly anticipated Belize Investment Summit II, under the theme ‘Belize: Endless Opportunities’, which took place in September 2023, highlighting progressive reforms already delivered and underway along with investment opportunities in the country’s blue, green, and orange economies, and more. 

Legislative amendments to the Government of Belize’s (GOB) incentive programs, namely the Fiscal Incentives Program and the Designated Processing Areas Program, have also been enacted.  

Both have been updated to expand the range of eligible sectors, accommodate and encourage uptake by micro, small, and medium-sized enterprises (MSMEs), and make them more forward-thinking and inclusive.   

For example, the global digital services sector is now able to benefit, with specific features enabling and encouraging investments in work-from-home arrangements and on-site daycare for single mothers. MSMEs are now better poised to benefit from simplified and user-friendly processes and features that encourage formalization.   

Another significant highlight is the ambitious consolidation of three Cabinet-endorsed national strategies and policies, namely the National Investment Policy and Strategy, the MSME Policy and Strategy, and the Export Competitiveness Roadmap, into one master action plan entitled the Belize Investment and Business Climate Action Plan (BIBCAP).   

This approach envisages bringing together all relevant public sector action owners to cohesively and comprehensively implement and report on real-time progress in implementing critical reforms for enabling and driving accelerated quality improvements in public service delivery.    

To complement these major initiatives, a National Industrial Strategy with green and blue economic policies is currently under development with technical support from the United Nations Industrial Development Organization (UNIDO). 

Interestingly, the segmentation of investment areas into the green, blue, and orange economies is a move to fine-tune the type of investment and industries Belize is aiming to promote.   

Q&A WITH THE BELIZE TRADE AND INVESTMENT DEVELOPMENT SERVICE

We revisit the Belize Trade and Investment Development Service and recap how the organization’s focus on skilled labor, employment creation, renewable energy, and trade imbalances has developed over the past year with Executive Director, Ishmael Quiroz.

Firstly, could you reintroduce us to the Belize Trade and Investment Development Service?

Ishmael Quiroz, Executive Director (IQ): The Belize Trade and Investment Development Service (BELTRAIDE) is a business support organization (BSO) that serves as the country’s national investment and export promotion agency.  

BELTRAIDE also has the mandate of providing developmental support for the growth of MSMEs and entrepreneurship in general via our BelizeINVEST, EXPORTBelize, and SBDCBelize units, respectively. 

Human capital development is supported through the private sector, demand-driven professional training, and capacity building via the Belize Training and Employment Center (BTEC).  

We have also been designated as an innovation champion for encouraging public and private sector investments in new ways of doing things and for supporting digital transformation, the uptake of technology, as well as business climate policy reform and modernization. I’m sure you will agree that this is quite a portfolio and, in fact, a unique one given the multifaceted areas of focus within one single agency.  

In the Belizean context, given our size of just around 400,000 people, it makes sense to leverage limited resources for these purposes. In fact, it represents one of the winning features of Belize’s relatively small size – utilizing our high degree of interconnectedness and involvement in a range of fronts to have a meaningful impact.  

Of course, what makes this all work are the strategic partnerships and collaborations with agencies spanning the public and private sectors, academia, and civil society.     

What is your updated take on the investment climate in Belize? Are investment opportunities still increasing in the country?

IQ: GOB is fully committed to establishing Belize as an important economic player in Latin America and the Caribbean. In this regard, we have embarked on several reforms intended to facilitate private domestic and foreign investment in several different domains with an overarching vision to position the country as a competitive, robust investment hub in Central America and the Caribbean region by 2030.  

Most notably, in 2023, we launched BIBCAP, which was a consolidation of three other existing strategy and policy frameworks. The plan outlines nine key pillars that aim to improve the business and investment climate in Belize and significantly impact the facilitation of domestic and foreign investment, grow and develop MSMEs, enhance innovation, and improve and sustain competitiveness.  

The government has also passed the Credit Reporting Act, and we are working on the establishment of a credit bureau as well as a Secured Transactions and Collateral Registry to address access to finance constraints for MSMEs.  

As part of GOB’s e-governance agenda, several digitalization projects are underway, including the land and business registries, and the digitalization of government-to-citizen (G2C), government-to-business (G2B), and government-to-government (G2G) services.  

All these initiatives are geared toward the ease of doing business in Belize. Incidentally, the country now boasts one of the most comprehensive and modern suites of digital laws in the Caribbean for enabling rapid e-governance and e-commerce rollouts. 

Couple this with a consolidated and modern new Belize Companies Act and a fully digital Online Business Registry System (OBRS), and it becomes clear that GOB is serious about injecting innovation into the way we do business, specifically in attracting investments. 

On foreign direct investment (FDI) growth, our FDI report recorded total inflows of FDI at USD$207.25 million (a 38.4 percent annual increase) in 2022, concentrated primarily on real estate, construction, hotels, and restaurants.  

In BELTRAIDE’s database, we have recorded significant investments going toward the business process outsourcing (BPO) sector. 2023-24 data shows that seven different BPOs were approved for fiscal incentives and that two aquaculture companies applied for an incentive, so there is a diversification in terms of where investments are being made.  

Moreover, we are also seeking to improve our international connectivity with the expansion of Phillip Goldson International Airport. I believe that bridging this transportation gap with more destinations will make Belize a more accessible investment destination. 

Our last interview with BELTRAIDE discussed the need to focus on skilled labor. How has this focus developed over the past year?

IQ: The need to focus on skilled labor is still important. Over the last year, the most significant development was the establishment of STEAM Academy, an initiative by the Ministry of Education.  

STEAM Academy provides secondary school education focusing on science, technology, engineering, arts, and mathematics. Developed in partnership with the Massachusetts Institute of Technology (MIT) and the Inter-American Development Bank, the academy opened its doors to an initial cohort of 75 students in September 2023 and will grow to its full capacity of 300 students by 2026. 

The location is centralized and was built on the same campus as the Belize City Institute of Technical Vocational Education and Training (ITVET). Training offered at ITVET includes carpentry, electrical, welding, and much more.   

Another striking fact is that BTEC, a core unit of BELTRAIDE, also operates on the ITVET campus. That is to say that we have three crucial educational and skills academies on one campus, creating a dynamic support system for anyone who wants to get trained and employed in the workforce. BTEC provides tailored soft skills development within the tourism, hospitality, and BPO sectors as a complement to the foundational technical training offered by the ITVET.  

Of note is that the TVET system is undergoing overdue critical reform, curriculum upgrading, and institutional strengthening to be best able to deliver labor skill needs. A significant portion of the recently signed Millenium Challenge Compact (MCC) sponsored by the US government is earmarked for enhancing the TVET system in Belize. 

Can you also tell us more about the growth of employment creation that Belize has experienced since we last spoke?

IQ: In April 2024, our unemployment rate stood at three percent, a modest increase from 2.8 percent in April 2023.  

We are not too worried about this slight increase as it still represents one of the lowest unemployment rates ever recorded. Investments being made by BPOs in 2023-24 give us assurance that we will be able to maintain this low unemployment rate.  

To date, operating BPOs are employing approximately 15,000 people, particularly young professionals and graduates, providing them with stable careers and avenues for skill development. 

Additionally, BELTRAIDE’s BTEC unit also participates in ensuring that this sector continues to grow by offering coaching and courses. Candidates who excel in these trainings are then successfully recruited by the BPO sector.   

Equally, how has exporting developed in Belize since we last featured BELTRAIDE? We previously discussed the trade imbalance that exists between exports and imports into the country – has this been bridged at all?

IQ: To be frank, we are still working on bridging the gap between exports and imports. Data shows that in 2023, our imports were significantly higher at USD$1.3 billion versus our exports valued at USD$204.3 million.  

One of the main issues we face is the lack of manufacturing capacity. Historically, manufacturing has been dubbed the “engine of growth” because of its contribution to productivity, trade, jobs, and innovation. We have a few companies that do light manufacturing and agroprocessing, but even so, most packaging materials, equipment, and machinery are imported.  

In addition, there is a need for skilled labor that can support the maintenance and repair of machinery. The unavailability of these inputs and technical support makes manufacturing and agroprocessing an intimidating industry to enter and invest in.  

The important thing is that the government is doing its best to build an industrialization pathway, with efforts such as providing fiscal incentives for manufacturing and ongoing trade negotiations with El Salvador for a partial scope agreement, which includes a chapter where information and technical support in manufacturing is highlighted as one of the key areas they can support us in.  

Specifically, the Ministry of Agriculture notes that opportunities exist in agriculture-related, value-added investments and supports farmers in offering courses on advanced packaging preservation methods, improved production, innovative processes, product marketing and branding, and storage.  

BELTRAIDE also collaborates in offering export readiness assessments and other courses to assist with the promotion of exports.   

In our previous interview, we also learned about your focus on renewable energy sources and hopes for Belize to become a net exporter of renewable energy. How has this progressed?

IQ: The need for investment in renewable energy continues to be an urgent matter. Belize remains a net importer of electricity from Mexico, which makes energy imports expensive and unpredictable.  

Significant portions of Belize are not connected to the national grid, including tourist hotspots such as the offshore cayes and ecotourism lodges in the rainforest. These companies rely heavily on alternative energy sources such as hydro and solar to supplement imported fuel.  

Currently, Belize’s leading energy subsectors are looking to expand biomass and small-scale solar, as well as create new opportunities in electric vehicles (EVs), large-scale solar, liquefied natural gas (LNG), and waste-to-energy. The government is also pursuing an initiative to convert sargassum seaweed to electricity and is seeking to promote additional projects.  

One of our biggest accomplishments in 2023 was the launch of the Belize National Energy Policy (BNEP), the mission of which is to steer the energy landscape towards sustainability, resilience, and prosperity.  

BNEP serves as a testament to the government’s commitment to diversifying energy sources, mitigating and adapting to climate change, and bolstering energy security while embracing sustainable practices for a brighter future for all Belizeans.  

Additionally, the University of Belize (UB) and Fortis Belize Limited (FBL) forged a strategic partnership to enhance technical education and sustainable energy development. A memorandum of agreement (MoA) was signed, marking the beginning of a strategic partnership aimed at advancing technical education and sustainable energy development in Belize.  

A key area of collaboration is solar energy management and maintenance. UB and FBL will jointly develop training programs that provide technical knowledge in solar energy, including design, maintenance, and troubleshooting. FBL will adopt UB’s solar park as a learning and training venue, further supporting the university’s energy center through technical advice and climate-related research initiatives. 

In terms of being a net exporter of renewable energy, I think we have a long way to go before that materializes. The important thing is that policies, strategies, and collaborations are being formed to ensure that it becomes a reality. 

Finally, how has the investment landscape developed since we last spoke? Do you still forecast exponential growth going forward?

IQ: While World Bank data forecasts a slight dip in GDP growth for 2025 and 2026, it will be up to all public and private sector stakeholders to huddle, proactively strategize, and collaborate on a solid performance. 

As mentioned, ample innovative and forward-thinking policies, legislative tools, and sector developments are currently at our disposal. Belize is poised to continue to be a pioneer in many regards, specifically in the realm of blue, green, and orange economy approaches.  

Add to that a newfound respect for the economic potential of the creative and cultural industries (inclusive of the global digital services sector) under the orange economy, and what we have is a nation on full throttle (increasingly on renewal energy), aiming for speed and enthusiasm toward sustained growth for the benefit of all our people. 

BELIZE TRADE AND INVESTMENT DEVELOPMENT SERVICE PARTNERS