by Linda Straker
- Foreign Direct Investment projects accounted for 96.6% of total capital investment facilitated for 2023
- Key projects under construction included Six Senses Resort, Beach House Project, Port Louis Entertainment Hub, and Grenada National Resort
- 81% of jobs created through IPA–GIDC projects during 2023, were temporary due to ongoing construction and expansion activities
81% of the 2,573 jobs created through projects facilitated by the Investment Promotion Agency (IPA) of the Grenada Investment Development Corporation (GIDC) during 2023, were temporary, however, the foreign capital inflows were record high.
“Investment applications and project approvals have shown a steady increase over the years, with 2023 seeing record-high foreign capital inflows of EC$488 million — a 55% increase compared to 2022. The projects facilitated by the IPA created a total of 2,573 jobs, though the majority (81%) were temporary due to ongoing construction and expansion activities,” said the 2023 annual report which is set to be tabled in the 26 November 2024 sitting of the Lower House of Parliament.
The report said that the IPA played a crucial role in driving investment, generating 181 leads—a 20.67% increase from 2022. “These leads primarily came from the manufacturing, tourism, agribusiness, health and wellness, ICT, and services sectors. Of the leads generated, 26% submitted applications for incentives,” said the report which points out that in 2023 there was an increase in investment.
“Investment activity surged in 2023, with the IPA processing 68 applications for incentives, surpassing the annual target by 172%. Sixty-one projects received approval, marking a 13% increase from 2022,” said the annual report.
“These projects, spanning tourism accommodation, agri-business/manufacturing, tourism services, and other service sectors, proposed investments totalling EC$35 million and aimed to create over 1,200 permanent jobs.”
The report said, “Fifty projects commenced operations in 2023, resulting in the creation of 278 jobs of the 498 jobs created for the period, a 27% increase compared to the previous year. Investment applications and project approvals have shown a steady increase over the years, with 2023 seeing record-high foreign capital inflows of EC$488 million—a 55% increase compared to 2022.”
Although the number of local startups increased by 16%, the total capital investment from these projects decreased by 67% to EC$6.4 million, resulting in the creation of 119 jobs — a 6% reduction compared to 2022.
In 2023, Foreign Direct Investment (FDI) played a dominant role in Grenada’s economic landscape. Total FDI generated from projects in implementation amounted to EC$488,333,227.21, accounting for 96.6% of the total capital investment facilitated during the year.
The GIDC said this represents a substantial 55% increase in FDI inflows compared to 2022, reflecting heightened investor interest and confidence. Key projects under construction during that period included Range Development Grenada Ltd.’s Six Senses Resort, the Joyau Des Caribes Beach House Project, the Port Louis Entertainment Hub, and the Grenada National Resort.
“These large-scale developments underscore the focus on expanding Grenada’s tourism sector. In addition to these construction projects, Grenadian Health Systems Inc., a Canadian-based medical call centre, commenced operations, further diversifying the FDI portfolio,” said the report which concluded that Grenada’s investment landscape in 2023 demonstrated strong growth, particularly in the tourism and manufacturing sectors, driven by a combination of domestic and foreign investments.
