For most of its history, Grenada’s economy has been dominated by the rare spice industry. To this day, the so-called ‘Spice Isle’ produces around 20% of the world’s nutmeg, and contributes a considerable portion of the world’s cinnamon, mace, and cocoa supply.
In more recent years, the small island nation has worked to diversify its economy with a concerted focus on tourism and hospitality, agricultural diversification, and investment in green energy. These initiatives have brought about considerable economic growth. If you’re looking for your next investment opportunity, look no further than Grenada.
Investment Opportunities in Grenada’s Tourism Industry
Grenada has always offered the quintessential sun, sea, and sand tourist experience, but more recently the largely Government-sponsored industry has diversified and developed attractions in heritage tourism, ecotourism, and edu-tourism too.
Investment opportunities in Grenada’s tourism sector consist of real estate, including hotels, villas, and resorts. Real estate developments like these make fantastic investment opportunities for investors looking for high returns. Tourism and hospitality industries across the island regularly report a double-digit increase in income each year, which equates to a typical 5% return on investment.
And with the growth of the tourism industry, there is considerable and rising demand for all forms of travel and tourism infrastructure. In recent years, substantial investments have been made in the construction of the island’s first cruise-ship terminal, and in upgrading yachting and marina facilities to enable more private investors to take advantage of the industry.
Investment Opportunities in Grenadian Agriculture
In as much as the Grenadian tourist economy is burgeoning, the Spice Isle is also looking to shore up food security for its local population.
Now, an agricultural revolution is underway in Grenada. Smallhold farmers on the island paradise are leading an initiative to refocus Grenada’s economic profile with a pilot project that seeks to help farmers better protect themselves from a hostile climate and economic shocks, and to better coordinate their production. It follows two destructive hurricanes in 2004 and 2005, as well as a drought in 2010, which required considerable rebuilding of the industry.
Climate-smart agriculture now seeks to increase productivity and make the sector more competitive. Examples of projects include the construction of new processing plants, as well as training in crop, land, and farm management to incentivise the professionalisation of agriculture in Grenada. Elsewhere, the Government is looking to support more sustainable practices in the use of marine resources.
Investment opportunities in Grenadian agriculture and the manufacturing of agricultural goods include donating to Grenada’s Blue Innovation hub, which supports the long-term capacity of ocean and coastal ecosystems to support agriculture and manufacturing while remaining healthy and resilient.
Across the Caribbean, a considerable effort is being made in terms of green energy. After many years of reliance on fossil fuels, such as oil, for the production of energy and electricity, Government- and privately-sponsored initiatives are helping the island of Grenada become more environmentally sustainable. Potential energy sources in Grenada include the likes of solar, wind, and geothermal renewable energy production.
Since renewed efforts began in 2013, it is solar energy that has received the most investment – with the goal of generating a fifth of all energy on the island by this method by 2020. Greenlec, the sole provider of energy to the state of Grenada, recently signed a EC$6.4 million agreement to increase solar electricity generation. Progress includes the installation of utility-scale ground solar installations, as well as other programmes.
To further liberalise the electricity sector from its dependency on nonrenewable resources, the Government of Grenada is working towards using wind energy to power 60% of Grenada’s largest dependency: the island of Carriacou. Public Utilities Minister Gregory Bowen announced in 2013 that EC$1.4 million from the World Bank would be used to facilitate the transition to wind power production.
Private individuals can directly contribute to this industry by taking part in Grenada’s Citizenship by Investment Programme. This invites candidates to make a worthwhile contribution to the island’s sustainable future by investing in the National Transformation Fund, which in turn utilises the funds for projects such as the diversification of the nation’s energy industry with green energy initiatives.
These many opportunities for investment in Grenada all provide the option to become a player in vital and fast-growing sectors of the nation’s economy. As that economy continues to thrive, the returns on those investments will only grow too. If you’re looking for your next investment opportunity, invest in Grenada.