Jamaica’s Investment Strategy

The recent announcement that a Canadian company is to open a cement manufacturing plant in Jamaica has left me wondering whether the government has an investment strategy for this country.  An investment strategy must look at things from a long term perspective and there should be a clear vision for the types of investment that one wants.  The projects need to make a contribution towards the country’s development and should not prove harmful to the natural environment.

I remember all of the problems surrounding the construction of the Spanish hotels especially the Gran Bahia Principe related to breaches of Jamaica’s environmental laws. The hotel has been completed and employs many Jamaicans but it is one of the ugliest buildings that I have seen and does not fit in with the beauty of the surrounding areas.  The first question to be asked of this proposed project is can the economy support another cement company.

Currently, construction is at one of its lowest levels for many years and there is no sign of any major improvement.  The new company proposes that it is mainly to produce cement for export yet states that it can produce cement at a lower price than Caribbean Cement Company.  This suggests that it also wishes to compete in the local market.  I have serious doubts as to the validity of this claim as I do not see how a new company using the same electricity and labour resources as the existing one can produce cement at a lower price.  If it can, then put the other company into bankruptcy causing it to shut and laying off workers.  Competition is good and we must never run from it but overall will the country benefit from this investment.

The second point is to raise the impact that this company will have on the environment.  It comes with the promise of utilising the red mud that comes from the bauxite process and thus implies a sense of environmental awareness.  However, if one speaks to the people that live near to the cement plant they can tell you of their struggles to deal with the dust that is given off by the factory.  In addition, one only has to visit the pier nearby to see the effects of the coal that is imported to be used in the manufacturing process.

Perhaps most importantly is the effect on the natural resources whereby once again hills are carved into, people are displaced and mined out land will need to be restored.  We have experienced all these problems with the bauxite companies and the existing factory.

Now I am not against the idea of investment but a country that is currently heavily weighted towards tourism for its survival must take extra care to ensure that any new investment will not damage it natural beauty and thus endanger the very industry on which it depends.

Tags: Carl Wilson