Foreign Direct Investment In Belize
Presented by: Karima A. Morris
• Belize is located in
Central America, to the
south of Mexico and to the
north and west of
• Belize is the only Latin
American country where
English is the official
• Belize has a bilateral
relationship (both Central
American and Caribbean)
because of its strategic
Belize’s Major Socio Economic
2003 2004 2005
Rate (%) 12.9 11.6 11
Inflation Rate(%) 2.6 3.1 3.7
Rate (%) 9.2 4.6 3.1
1,104.2 1,028.2 1.185.8
($BZ millions) 381.4 410.1 413.3
Population 273.7 282.6 291.8
• Statistics collected from
Standard of Living
• Differences in quality of life reflects and shaped patterns
of social inequality in Belize.
• Access to food, housing, health care, and other necessary
or desired goods and services varied most markedly
between rural and urban areas, as well as by
• In 1984 the average salary of an employee was Bz$6,000.
• By 2002, the population below the poverty line was 33.5%.
• Almost two-thirds of the working population earned
between Bz$3,000 and Bz$9,000, while 20 percent
earned less than Bz$3,000(www.country-studies.com).
Belize: A Multiethnic and
• International Financial Services
• Furniture Manufacturing
FDI by Sector 2004
• Graph collected from Beltraide, belizeinvest.org.bz
• Belize tourism industry is
the primary industry that
has demonstrated the
most success, mainly
because of its diverse and
high quality attractions.
• Belize’s success in
tourism is due in part to
special branches of
tourism: eco, adventure,
cultural, and archeological
• The agricultural industry which
consists of citrus, citrus
production, bananas, sugar, and
beans, provides 71% of the
country’s foreign exchange
• Maries Sharp’s – Belize's
recognized exporter of hot
• Green and Black’s is a foreign
investment company based in
Belize, and is a top notch
specialty food manufacturer
Aqua cultural Industry
• The majority of
investments in Belize
aquaculture is in shrimp
• Bluecadia is a U.S. aqua
cultural company that
specializes in shrimp
• Offshore banking was introduced in the Caribbean by the British. It offers
millionaires and international business investors to set up business accounts
away from their parent countries so that they can conduct business transactions
globally. For American investors, this offers them a safe zone where their money
is not taxed by the Federal government.
• In Belize, the largest offshore banking company is called Providential Trust Bank.
• Offshore banking offers IBC - International Business Company, which is an
account where the money is managed by offshore banks in Belize and the
Cayman Islands . Billions of dollars are transacted on a daily basis through these
banks. This is the main service provided by offshore banking.
• Money Transfer is a form of banking that brings into Belize a large amount of
foreign exchange. Western Union, a huge banking conglomerate, provided
money transfer services to Belizeans abroad, and started operations in Belize in
• There are about 100 thousand Belizeans in the US, almost half the population of
Belize. Belizean - Americans send home about $60million in remittances each
year, which is a chief sou0 ce of foreign exchange.
• In order to attract more foreign investors such
as Chinese and Taiwanese entrepreneurs ,
Belize has an economic citizenship program
where foreign investors are given instant
Belizean Citizenship through the purchase of
a Belizean passports costing (U.S.)40,000
• Belize attracts many foreign investors from Malaysia,
the U.S., and Britain, who invest in the country’s
forestry industry. Investors come to Belize to benefit
from country’s large forest reserves, to cut wood
through huge logging concessions offered by the
• Pharmaceutical companies also come to extract
medicine from plants in the rainforest of Belize.
• Belize has one of the few remaining rainforests in
the world, and there are limitations on how much
resources companies can take from the rainforest.
• In 2005, Belize found oil was found in the Western
District of Cayo, in Belize.
• A company from Ireland was the first to drill and find
oil in Belize. The company exports about 1000
barrels a day.
• This new investment sector has lead to more
revenue for the Belizean government.
• The government gets 60% of all oil revenues with
additional taxes it levied on the oil reserves.
• Belize has privatized its water,
electricity, and telecommunication
• The Canadians own 80% of the shares of the
only electricity company. The British
multinational Michael Ashcroft owns about
75% of the shares in the country’s only
• A south African investment group controls
60% of Belize’s only water service company.
Effects of Foreign Investment
• Foreign Investment has both good and bad impacts on Belize.
• Foreign investment has created jobs for local Belizeans
• Foreign investment has also helped developed the country.
• One negative effect that foreign investment has had on Belize is
capital flight - where most of the money made by foreign
investors leaves the Belize economy to foreign banks abroad.
Very little is invested back into the country and its people.
• Parasitic Wages - where the people of Belize are not paid
• www.belizeinvest.org.bz. Beltraide.
• www.country-studies.com. Belize
• www.cso.gov.bz. Central Statistical
Office-Belize. Belize Central Statistical