Grenada’s foreign investment surges in 2023

The Grenada Investment Development Corporation (GIDC) has reported a record-breaking year for foreign investment, with capital inflows reaching EC$488 million (US$180 million) in 2023 – a 55 percent increase from 2022. The Investment Promotion Agency (IPA), a key division of the GIDC, contributed significantly to this growth, facilitating 81 percent of the 2,573 jobs created through various projects during the year.

According to GIDC’s 2023 annual report, most jobs generated by the IPA were temporary, driven by ongoing construction and expansion activities. The report highlighted that investment leads primarily originated from sectors such as manufacturing, tourism, agribusiness, health and wellness, ICT, and services, with 26 percent of leads resulting in applications for investment incentives.

“In 2023, the IPA processed 68 applications for incentives, exceeding the annual target by 172 percent,” the report stated. “Sixty-one projects were approved, reflecting a 13 percent increase from 2022. These projects, which included tourism accommodation, agribusiness/manufacturing, and other service sectors, proposed a total investment of EC$35 million (US$13 miliion) and aimed to generate over 1,200 permanent jobs.”

Large-scale developments dominated the year, particularly in Grenada’s tourism sector. Key projects under construction included the Six Senses Resort by Range Development Grenada Ltd., the Joyau Des Caribes Beach House Project, the Port Louis Entertainment Hub, and the Grenada National Resort. Diversification efforts were also evident with the launch of Grenadian Health Systems Inc., a Canadian-based medical call center.

Foreign direct investment (FDI) was the primary driver of economic growth, accounting for 96.6 percent of total capital investment and totaling EC$488.3 million (US$180.18 million) – a 55 percent year-on-year increase.

In contrast, local startup activity grew by 16 percent, but total capital investment from these initiatives declined by 67 percent to EC$6.4 million (US$2.36 million), resulting in 119 jobs – a 6 percent decrease from 2022.

The GIDC’s performance underscores Grenada’s growing appeal as an investment destination and highlights its strategic focus on fostering economic development through FDI and sectoral diversification. -(CMC)