Business Barbados agency ‘still a work in progress’

The new Business Barbados agency, set up to modernise business processes and replace outdated systems, is “not yet perfect” and will take time to achieve its goals, Minister of Business Senator Lisa Cummins told the business community on Tuesday. She urged patience but also insisted that shortcomings in the system should be openly flagged.

In the main speech at the launch of Global Business Week, the minister said although the agency was created to improve the ease of doing business, it was unrealistic to expect immediate results given the decades-old systems it is replacing.

Business Barbados, which took effect in February, replaced the Corporate Affairs and Intellectual Property Office (CAIPO), assuming the task of modernising local business registration and regulatory processes.

“Business Barbados has been created for you. It is not yet perfect,” she told the business community.

“Thirty years of doing business in a certain way, without all of the systems being put in place, without the structures having been reformed, without all of the training and the retraining and the upskilling and the capacity building, will not change overnight.”

But the minister noted that imperfections should not be met with silence.

“That does not mean that BIBA [the Association for Global Business] and the members of the global business sector need to continue to accept poor service. Not at all. It means that you do need to continue advocating [and] pointing out things where they are not going well,” Cummins added.

The business minister also called for a national shift away from depending solely on tax incentives to attract investment, urging a new focus on substance, skilled labour, regulatory trust, and digital government.

She said: “Our strategy for Barbados must be clear. Compete on substance, first and foremost. Let’s focus on skilled talent, digital and efficient government, and trusted regulation.”

She further revealed that an Economic Substance Act, a key pillar of the international business framework, is being reviewed and will be brought forward for consultation shortly.

“The Economic Substance Bill is going to be coming up for consultation on some changes that are going to come down the pipe,” Cummins said, further noting that the proposed amendments would support the island’s transition from a nominal tax jurisdiction to a preferential tax jurisdiction—one that meets international standards while remaining attractive to investors.

“That will have significant implications in a positive way for the global business sector.”

Addressing concerns about skills gaps in high-value sectors, the minister said efforts were underway to recruit the right people to key roles in Business Barbados, noting that the “advertisements have already gone out”.

At the same time, she made a plea for understanding from the business community, describing the reform effort as a long-term behavioural shift.

“I am certain that many of you who are parents, aunties, grandparents, godparents, know that in rearing a child, you don’t change behaviour overnight,” Senator Cummins said.

She encouraged continued partnership with global standard-setting bodies and regional institutions, saying the government was working closely with the Organisation for Economic Co-operation and Development (OECD), the Global Forum, and the Caribbean Development Bank (CDB) on issues such as compliance, sustainability and access to financing.

Noting the increasingly volatile global economy, the minister said Barbados must adjust its strategy in the face of shrinking trade, geopolitical tensions, and rising insurance and logistics costs.

“The global environment is changing and it’s challenging,” she acknowledged..

“We are seeing a slower, more fragmented world economy. It’s reducing trade, closing borders and dampening investment. For Barbados, what this means is that there is fiercer competition for mandates.”

Among the recent wins, she announced the completion of double taxation agreement negotiations with both Hong Kong and Curaçao and expressed hope that these will be merged into bilateral investment treaties that generate new business.

Senator Cummins urged members of the global business community not only to grow their operations from Barbados but also to support domestic financing mechanisms such as the new Junior Stock Exchange, officially titled the Innovation Growth Market, which is set to launch on November 4.

“We’re hoping to onboard 200 companies in that first incarnation,” she said. “We want to make sure that in this particular audience, in this gathering, you are not necessarily looking for investment, but you are the investors.”

At both the small and global business levels, she said, the goal was to create a more resilient, opportunity-rich economy.

“At Small Business Week, I spoke about digital trade and AI empowering entrepreneurs,” the minister for business said. “At Global Business Week, we’re talking about scaling, we’re talking about growth, we’re talking about national development and economic activity.

“Let us … confront the headwinds … not with hesitation, but with vision, with clarity, with purpose, and with efficient and deliberate intervention.” (SM)