The Regional Agri-Business Investment Forum in June is more than just another trade expo and will bring to the table Governments, investors, bankers and insurance companies to the table with a view to making deals on agriculture.
This is according to President Bharrat Jagdeo who spoke at the launching of the investment forum yesterday at the Caricom Headquarters, Turkeyen. The Investment Forum will be held on June 6 and 7, 2008 in Georgetown.
Jagdeo said that the hard work of the Caricom Secretariat has brought the region to the stage it is now, with the Investment Forum being launched.
The idea of the investment forum emerged from the discussions among Caricom Heads of Government on promoting growth in the sector and builds on the Jagdeo Initiative, a regional food policy which seeks to push for an agricultural drive in the region.
The Investment Forum is aimed at providing potential investors and financial institutions with information on changes in global and regional markets and in agro industry systems which could mean business opportunities for the Caribbean.
Participation is expected from investors and fund managers seeking solid investment projects, banking executives, other financiers, agro-business entrepreneurs wishing to network with potential partners, regional and international agency officials involved in developing and financing agricultural projects and others.
Jagdeo said that the issue of agricultural production has been with us for a while, noting that several initiatives have been provided for by the framers of the Treaty of Chaguaramas, whose signing in 1973 brought Caricom into being, to put emphasis on agriculture. In reference to this, he mentioned the Caribbean Food Plan of the 1970s and the regional transformation programmes of the 1990s.
“Why is it that today our food bill is soaring? Why is it that our agriculture sector isn’t a competitive export industry?” the President asked. He noted that if the region could cut its food import bill by half, or US$1.5 billion this would auger well for Caricom States.
He said that a proper development strategy will see the sector given attention and said that this is one area the CSME could be put to work. “This attempt is to raise awareness among the political leaders and we were very successful at this,” said the President.
He noted the importance of the involvement of the private sector in the drive to grow more. He said that although the Government will play a part in removing the constraints, it is the private sector which must make the investment.
Jagdeo said that objective of the forum is two-fold. First it aims at regional food security with a view to reducing food imports and then it aims to transform the region’s agriculture sector into a competitive export industry.
“I am pleased with the work done. This investment forum is the most important part of our effort,” he said, stating that the drive for food production started a long time ago and not just in response to the upsurge in food prices over the past months.
“We want to be able to say to investors, ‘this is our land, these are our fiscal incentives, these are our water resources, these are our transport links’…it is time that regional and extra regional companies take advantage. I want you (the media and diplomatic community) to take this message back…that we are ready to do business,” Jagdeo said.
Jagdeo pointed out that because of the high food prices, Guyana is at risk of not achieving some of the Millennium Development Goals (MDGs).
Asked on the progress being made with Trinidad in terms of the mega farm project in Guyana, Jagdeo said that nothing has been taken beyond a declarative statement.
But he said that he heard Prime Minister of Trinidad Patrick Manning repeating his position that Guyana would be critical in the food growth drive and that they wanted to go ahead.
Asked if the flooding on the coast wouldn’t discourage agro investors, Jagdeo said that no such project comes with a guarantee that there wouldn’t be weather-related occurrences. He said that investors will have to factor this into their decision making or seek some measure of insurance. He said that the Government is concentrating on fixing drainage and irrigation structures so as to help in flood control.
Speaking at the event, Chairman of the Task Force on Regional Agriculture Investment Forum James Moss-Solomon said that efforts must be based on what he called the three Ps: Predictability, Preparation and Pro-activity.
On the concept predictability, he said that such shortages of food have occurred before, during the two world wars, and at that time nations in the Caribbean adapted through a renewed focus on agriculture.
He said too that the region should be prepared for the situation by coming up with strategies. “We need to be proactive in implementing our plan to ensure our survival. This is broader than sugar, bananas and rice,” he said.
Secretary General of Caricom Edwin Carrington said that over the years talk on agriculture wasn’t matched with action: “We have been talking about it, but we have not done it. No more time for talking…” he said that all instruments that various countries have signed for the investment and business sector must be put into action now. “We can no longer prevaricate with a food import bill of US$3 billion [yearly],” he said. He added that the region must endeavour to reassess its consumption habits.
Some of the measures taken by Caricom to facilitate investment in the region are the removal of restrictions in foreign exchange controls, the establishment of the Caricom Development Fund, the Regional Stock Ex-change, and the Caricom Double Taxation Agreement.
