Download Country Profile Grenada

Country Profile
Grenada
Information Provided by the
Grenadian Industrial Development Corporation (GIDC)
2012
Country Profile
Grenada
Contents
 Quick Facts
 Other Facts about Grenada
o Economy
o Culture
o Education
o Labour Standards
o Media
o Targeted Sectors for Investment
o Targeted Sectors for Export
o Bilateral Investment Treaties
o Double Taxation Treaties
o Other Regional Agreements signed
o Incentives summary
 Major Internationally Renowned Brands within Grenada
 Cost of Doing Business in Grenada
 Success Stories
 Official/relevant government links for investors
For more information, please contact:
Grenada Industrial Development Corporation
Frequente Industrial Park, St. George’s
Tel: 1 473 444 1035 or 1 473 444 4828
Email: [email protected]
Website: www.grenadaidc.com
Quick Facts – Grenada
Capital of country:
St. George
Population:
106,000 (2008)
Official Language:
English. Many persons are fluent in French and Spanish.
GDP growth (%):
-7.65%
GDP per capita:
4,604.01 (2010)
Inflation:
5.8 (2011p)
Unemployment:
28% (2010)
Major Exports: Nutmeg, Cocoa, Mace, Fresh Fruits and Vegetables, Fish, Flour, Wheat Bran, Clothing,
Paints and Varnish, Paper Products, Malt, Animal Feed, Beverages.
Major Imports: Food and Live Animals, Beverages and Tobacco, Crude Material, Fuel and Lubricants,
Animal and Vegetable, Oils, Chemicals, Machinery, Transport, Equipment and Manufactured Material.
Key Productive sectors: TOURISM & HOSPITALITY SERVICES, MEDICAL SERVICES, EDUCATION
SERVICES, INFORMATION COMMUNICATION TECHNOLOGY (ICT), AGRI-BUSINESS, ENERGY
DEVELOPMENT, MANUFACTURING, FINANCIAL SERVICES
Major trading partners:
Government (type): West Minister Style Parliamentary form of Government
Governor-General: Carlyle Glean
Prime Minister – Hon Tillman Thomas
Opposition leader -Dr Keith Mitchell
Other Facts about Grenada
Economy:
Grenada has a largely tourism-based, small, open economy. Over the past two decades, the economy has
shifted from one of agriculture-dominant into that of services-dominant, with tourism serving as the
leading foreign currency earning sector. The country's principal export crops are the spices nutmeg and
mace (Grenada is the world’s second largest producer of nutmeg after Indonesia). Manufacturing
industries in Grenada operate mostly on a small scale, including production of beverages and other
foodstuff, textiles, and the assembly of electronic components for export.
Culture
Grenadian culture is a mixture of British, African, West Indian and French influences which has left an
indomitable influence in the folklore, dialect, music and general way of life. French influence on
Grenadian culture can still be found in surnames, names of villages and the local dialect or Patois.
Historical sites also portray remnants of French and British colonial architecture that have been well
preserved.
Education
Adult literacy rate in Grenada is 95%. The education system is modelled largely on the British system.
Education is free and compulsory from ages 5 to 16. There are: 118 pre-primary schools
(including private and public), 82 primary schools, 22 secondary schools, three (3) schools for
children with special education needs and three (3) institutions that specialize in technical and
Vocational training.
Labour Standards
Labour cost in Grenada is relatively low in comparison to countries with similar economic status. Labour
productivity is relatively high. With a relatively young English speaking workforce and high levels of adult
literacy (96%) the workforce is highly trainable. Approximately half of the workers of Grenada have a
high school diploma and another 13% have benefited from tertiary education. A narrow tax wedge
increases the incentives to work. While the workforce is highly unionized (80%), labour relations are
relatively good.
Media
(Only a few companies have websites)
Name
Television Stations
Grenada Broadcasting Network
Columbus Communications
Meaningful Television
Radio
Klassic AM 540
WEE FM radio
Voice of Grenada
Website info
www.flowgrenada.com
www.klassicgrenada.com
[email protected]
www.spiceislander.com/vog
City Sound Radio
Boss FM
Kayak 106 FM
Newspaper
The New Today
The Grenadian Voice
Grenada Informer
The Barnacle
www.barnaclegrenada.com
Targeted Sectors for Investment: Medical Tourism and Medical Wellness Tourism, Health Education
and Wellness Services, Agribusiness, ICT, Energy Development
Targeted sectors for Export: Yachting, diving and cruise tourism
Bilateral Investment Agreements /International Investment Agreements signed

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Investment Protection and Promotion Agreement with the United Kingdom
Reciprocal Encouragement and Protection of Investment with the USA
Other regional agreements signed (list)

Caribbean Basin Initiative (CBI) (1993)
Products made in Grenada and exported to the U.S.A. can enjoy duty free entry under
the provisions of the Caribbean Basin Initiative (CBI). At least 35% of the appraised value
of manufactured articles must be derived in Grenada. This can be reduced to 20% as U.S.
made components may account for up 15% of the value added.

CARIBCAN (1986)
Products made in Grenada can be exported to Canada free of customs duties under the
CARIBCAN agreement. The products must either be wholly produced or manufactured in
Grenada with a minimum of 60% of the ex-factory price of the product originating in the
Commonwealth Caribbean or Canada.

CARICOM (1973)
Grenada-based manufacturers have preferential access to the regional market of over
5 million people in the Caribbean Common Market (CARICOM). Locally produced or
manufactured goods may be imported duty free into any of the fifteen (15) CARICOM
member states, subject to certain value added criteria as specified under the CARICOM
Rules of Origin.

Venezuela - CARICOM Agreement (1992)
Grenadian-made products can be exported to Venezuela under this recent agreement,
without attracting any customs duties. Goods should be wholly produced or at least 50%
of the export value of the products should be local value added, or should have undergone
a process of substantial transformation, i.e. the final product should be classified under a
different tariff heading from that of the material used to manufacture the said product.

Colombia - CARICOM Agreement (1994)
Grenadian-made products can be exported to Colombia under a recent ColombianCARICOM agreement without attracting any customs duties. Goods should be wholly
produced or at least 60% of the export value of the product should be local value added,
or should have undergone a process of substantial transformation, i.e. the final product is
classified under a different tariff heading from that of the material used to manufacture
the said product.
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Dominican Republic - CARICOM Agreement (2001)
This agreement allows the creation of a Free Trade Area, which includes trade in goods and
services, investment and economic co-operation, with the objective of strengthening the
commercial and economic relations between the two (2) parties.

Canada - CARICOM Agreement
This agreement currently in negotiation stage, seeks to enhanced trade arrangement with
Canada to: (i) preserve, build on and broaden the scope of the current instruments of
trade and economic co-operation; (ii) deepen disciplines to improve market access for
CARICOM exports of goods and services; (iii) broaden the country coverage to include all
CARICOM states (iv) stimulate increased flows of Canadian investment into the region and
(v) to provide a comprehensive framework for the development of co-operation initiatives.

Cuba - CARICOM Trade and Economic Co-operation Agreement (2000)
This agreement was inspired by the purposes of the Association of Caribbean States
to promote an expanded economic space for regional trade and investment and to
gradually and progressively foster economic integration including the liberalization of
trade, investment, transportation and other related areas. The agreement allows for the
promotion and expansion of trade in goods and services originating in the territories of the
Parties by means of inter alia, free access to the markets of the Parties, elimination of nontariff
barriers to trade, the establishment of a system of rules of origin, and harmonization
of technical, sanitary and phyto-sanitary measures.

Costa Rica - CARICOM Agreement (2004)
Under this agreement, Costa Rica will grant free access to goods originating from LDC
members of CARICOM which includes Grenada. It provides for the free trade or preferential
access for a wide range of products without requiring reciprocal arrangements.

Economic Partnership Agreement (EPA) (2008)
The CARIFORUM-EC removes all tariffs and quotas on Caribbean exports to the EU. The
only exception is sugar and rice, which will be liberalized over short periods.

Bilateral Agreements
Grenada has bilateral Investment Agreements with the United Kingdom and the United
States of America. Tax Information Exchange Agreements (TIEA’s) with the USA, France,
Germany, Australia, United Kingdom, Northern Ireland, The Kingdom of the Netherlands,
The Netherlands Antilles and Aruba. Grenada has also completed negotiations with
Sweden, Norway, Finland, Denmark, Iceland, TheFaroes and Greenland.

Investment protection and promotion agreement with the UK
The agreement encourages British Investors confidence by setting high standards of
investor protection applicable in international law. Key elements include provisions for
equal and non-discriminatory treatment of investors and their investments, compensation
for expropriation, transfer of capital and returns and access to independent settlement of
disputes.

Reciprocal Encouragement And Protection of Investment With The USA
The agreement protects U.S. investor’s against performance requirements, restrictions on
transfers, arbitrary expropriation and sets forth procedures for settlement of disputes. By
providing a more open and secure environment for investment, it also promotes private
sector development.

CARICOM Single Market and Economy (CSME)
The CARICOM Single Market and Economy is an arrangement which allows CARICOM goods,
services, people and capital to move throughout the community without restrictions to achieve a
single large economic space and provide for one economic and trade policy. This arrangement
was implemented by the More Developed Countries and Belize on 1st of January 2006 and by
O.E.C.S countries on the 1st of July 2006. The CSME was envisioned to embody the notion of a
Single Caribbean Economy based upon the pursuit of unified and harmonized economic fiscal and
monetary policies.
Incentives Summary
Incentives are across the board for the sectors and include:
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Relief from customs duties and taxes on plant, equipment, raw materials
Tax credits for training, research and development
Income tax relief
Cost of Doing Business
Corporate Income tax rate
The Income Tax Act No. 36 of 1994 regulates the
payment of corporate taxes by companies earning
an annual net profit in excess of US$22,222.00 per
annum. The applied rate of this tax isthirty percent
(30%).
Personal income tax rate
The Income Tax Act No. 36 of 1994 regulates the
payment of Personal taxes by sole proprietors,
professionals and employees earning in excess of
US $22,222.00 per annum. The applied rate of this
tax is thirty percent (30%) of net profits in excess
of US $22,222.00 and is due and payable within 90
days at the end of each _financial year. However,
in the case of an employee it is deducted monthly
by the employer. All returns are due within ninety
days after the end of the accounting period (_fiscal
year basis) and an interest of 1.5% per month or
part thereof is charged on the unpaid balance.
(iii) Average wage earnings for high level
occupation groupings
Average hours per week
Average cost of Transportation Fuel
40 hours
16.21 EC$ per gallon (gasoline price as of June 10,
2011)
$1.84 (USD)
Average cost per sq.ft, for office space in the
central business district
Average cost per sq.ft, for industrial space in the
central business district
Average cost per sq.ft for land (zoned for
commercial use) in/nearby
central business district
$.68 (USD)
$37.00 (USD)
Average cost of electricity (per kWh for businesses)
Charge
Domestic Customer
Commercial Customer
Industrial Customer
Applies to
Electricity supplied to a
residential property for
non-commercial activities
Electricity supplied for nonresidential or business
activities
Electricity supplied for industry or
where electric motors have an
aggregate maximum power
output rating of 5 or more horse
power and are not normally used
between 6.00 p.m. and 10.00
p.m.
Government Charges
(VAT)
15% of non-fuel charge
after the first 99 units
consumed.
Less than 99 units - $0
99 – 149 units - $1.84
150 units & above - $3.68
15% of non-fuel charge
Calculated monthly
Calculated monthly
Environmental Levy
Fuel Charge
NA
15% of non-fuel charge
NA
Calculated monthly
Non-fuel Charge
$0.1526 (cents per unit)
Minimum - $1.4723
$0.1646 cents (per unit)
$0.1206 cents (per unit)
Floor Area Charge (per
50 sq. feet of floor
area)
Horsepower Charge
NA
.07 cents (per month)
NA
NA
NA
$0.7361 (per horsepower)
Minimum - $3.68
Source: Grenada Electricity Services Ltd. (GRENLEC)
* All rates are quoted in USD currency.
Average cost of water for businesses
ructure (gal./mth.)
Variable Rate
(US$/1,000
gal.)
Fixed Monthly Charge (US$)
Domestic
Less than 2, 800
2,800 - 5,500
Greater than 5,500
3.98
2.98
4.97
7.45
Non-Domestic
Ships
Below 2,800 gals/mth. - 5.52
2,801 - 20,000 gals/mth. - 12.42
20,001 - 100,000 gals/mth.-51.53
Over 100,000 gals/mth. - 202.44
12.42
N/A
Source: National Water and Sewage Authority (NAWASA)
* All rates are quoted in USD currency.
Major Internationally Renowned Brands within your country
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Scotia Bank
Western Union
Money Gram
UPS
FEDEX
LIME
Dicgicel
Camper & Nicholson Marina
Rex Resorts
Crowne Plaza
DHL
Superfund
PKF Accountants
CIBC
Royal Bank of Canada
Success Stories
“From project initiation and inviting the company to invest in Grenada to the successful establishment of
a fully functional business entity, the GIDC’s proactive mentality, their passion for getting the issues at
hand resolved to the benefit of all involved is only some of the many reasons for Baron Foods Limited
having achieved commercial success. Their team of dedicated officers possesses the genuine acumen and
skills required towards making investing an easy, non-tedious and hassle free transaction. The working of
the GIDC’s mechanism as a true one stop shop is definitely vital and has played a significant part in
reducing investment costs whilst increasing productivity and efficiency during the start-up phase of the
company”.
…Chris Persaud, Managing Director, Baron Foods Grenada
“Through GIDC I was able to obtain all the relevant information and advice on establishing my business
in Grenada. Assistance was also received in preparing my business plan and concessionary support was
received to import my machines and materials for production. An officer visited me on several occasions
during implementation to ensure that I was on the right track. This has allowed me to avoid or overcome
certain hurdles one can experience whilst starting a business in Grenada”.
… Mrs Lydia Smith, Owner & Fashion Designer of Sabriece
Other official/relevant government links for investors
Link
Inland Revenue Department
National Insurance Scheme
Office of Corporate and Intellectual Affairs
Ministry of Labour
Physical Planning Unit
Ministry of Finance
Ministry of Health
Prime Minister’s Office
Approval
Tax registration
Employee benefit
Business Registration
Work Permit
Physical Planning approval
Trade License
Health and Safety Inspection
Alien Landholding License