Invest SVG is in the process of adopting an investment policy which has informed work on the Investment Bill and Investment Promotion Agency Bill.
The announcement was made at a press briefing hosted by Invest SVG on Friday September 30, 2022 at the Frenches House in Kingstown. The Press briefing formed part of the final session where stakeholders met to help with finalizing the draft text for the two pieces of legislation.
“Among other things, both pieces of legislation are there to improve the investment climate in St. Vincent and the Grenadines,” said Annette Mark, Executive Director of Invest SVG. “They will send a clear message to our investors that St. Vincent and the Grenadines is open, ready for business and we are thinking about our investors [right], we are thinking about how to bring about further clarity, further transparency in the investment process.”
Mark said post covid, the climate within the Caribbean is going to be very competitive, and this is being seen with the number of investment agencies within the region and their efforts to strengthen their capacity.
According to Annette Mark the countries within the region are promoting a similar product, hence as St. Vincent and the Grenadines work towards improving its investment climate, Invest SVG is making every effort to distinguishing the country and towards malcing it more competitive.
Mark, while commenting on the importance of the legislations, said the ability to apply the rule of law will among other things prevent the institution from acting arbitrarily in carrying out its functions.
“It is a marketing tool for us as we go out, as we meet, as we speak to investors,” said Mark, referring to the investment legislations. “We have put in place a legal framework which will bring a level of comfort to our investors”.
Consultant on the project Mark Reicher, Economist and Attorney at Law, specializing in investment Law formed part of the team who worked on the draft bills.
Reicher said political and legal stability are the two basic conditions for investors when making the decision on where to invest, and an investment law provides the basic rules which guides the relationship between an investor and the home country.
According to Reicher an investnent law is the constitution for the investors when they go to a country. The drafted investment law for St. Vincent and the Grenadines at its core covers the investor rights and the investor protection; it ensures that when an investor comes to St. Vincent and the Grenadines and invest, they are aware of the market access rules, rights, how property and investment are protected, and Rights of the state.
“Everything is in a legal framework and is enforceable and the current draft provides this kind of stability,” said Reicher. “It is a starting point and very important to have”.
Reicher, while speaking about the Investment Promotion Agency (IPA) Law said it is an essential piece to having an effective and efficient Investment Promotion Agency, as it sets up the mandate of the institution to attract and retain investment. “This mandate also gives the Investment Promotion Agency a role within the architecture of the institutions of the country,” said Reicher.
He said that Invest SVG does not currently have a law and its legal basis is not as clear as it should be, to be fully efficient and effective, and this draft IPA Law will make a difference.
