Overseas business risk: Jamaica
Updated 4 August 2023
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Background
The Doing Business in Jamaica guide (PDF,1.75MB) is a good starting place when deciding to do business in Jamaica. It offers information on opportunities, challenges and practical advice to help you make the most of doing business in Jamaica.
Jamaica was the UK’s 111th largest trading partner in the four quarters to the end of Q4 2022 accounting for less than 0.1% of total UK trade. In 2021, the outward stock of foreign direct investment (FDI) from the UK in Jamaica was £28 million and in the same year, the inward stock of foreign direct investment (FDI) in the UK from Jamaica was £17 million.
Total trade in goods and services (exports plus imports) between the UK and Jamaica was £435 million in the four quarters to the end of Q4 2022, an increase of 52.1% or £149 million in current prices from the four quarters to the end of Q4 2021.
The Government of Jamaica and the wider business community welcome overseas investment and business. There are a number of Government incentives aimed at attracting international business, many of which are enshrined in legislation providing greater certainty to business. Read information from Do Business Jamaica on incentives and business support services.
Many UK companies have business links in Jamaica including British Airways, City & Guilds, De La Rue, Mott McDonald, Virgin Atlantic, Soleco Energy and GlaxoSmithKline. Many small and medium-sized UK companies are also doing business in Jamaica.
Jamaica is the largest English–speaking country in the Caribbean, with natural advantages such as 9 active seaports and 2 major international airports (in Kingston and Montego Bay). Jamaica has good air links to North America and to the UK. There is a total population of 2.9 million and a labour force of 1.3 million. Read this overview of the business climate in Jamaica.
Recently Jamaica launched its trade information portal which is a one-stop point for all import and export information in Jamaica. The Jamaica Trade Information Portal (JTIP) is hosted by the Trade Board and traders will be able to get all the information about the regulatory requirements they need to complete their transactions.
Trade relations between Jamaica and the UK are now governed by the CARIFORUM-UK Economic Partnership Agreement (EPA), which entered into effect on 31 December 2020 following the UK’s exit from the EU’s single market. The EPA ensures preferential access for UK companies over competitors from countries which don’t have a trade agreement with Jamaica, as well as numerous protections for UK businesses in the Jamaican market.
Political and economic
In the most recent IMF report published February 2023, Jamaica has built a strong track record of investing in institutions and prioritizing macroeconomic stability. This aided the country to adapt to the difficult global environment of the past few years, and to recover faster than many of its peers from the COVID 19 pandemic. For the fiscal year 2022 to 2023, real GDP is estimated to have increased by 4.3% which reflects a return to pre-COVID levels one year ahead of schedule. Economic growth for fiscal year 2023/24 is expected to be between 1.0% and 3.0%. Pushed by global factors, in particular, the impact of the war in Ukraine on commodity prices inflation has risen above the central bank’s target band but is expected to decline during the course of 2023.
Public debt fell to 94.2% of GDP in 2021/22 and projected to decrease to 84.1% of GDP in 2022 to 2023. Fiscal consolidation, which the authorities are committed to sustain going forward, should bring public debt to 60 percent of GDP by the financial year 2027 to 2028. The rate of unemployment also fell to a historic low of 6.6% in 2022, almost half the rate at the start of the country’s recent IMF reform programme, which has now been successfully completed. GDP in recent years has been supported heavily by tourism and remittances the top two sources of foreign exchange.
Jamaica’s main exports include minerals (notably bauxite) and chemicals, rum, coffee, yams, and prepared food. Principal imports include oil, machinery and industrial parts, cars, food and other consumer goods, and construction materials. The sectors showing the strongest growth in recent years have been manufacturing and, in particular, services, including finance and insurance as well as hospitality services.
Jamaica is also beginning to see growth in a number of areas including information communications technology (ICT), business process and professional services outsourcing, renewable energy and ecotourism. Jamaica continues to make economic growth and public sector efficiency its aim, including through the implementation of a single Business Registration Super-form, the establishment of an electronic interface linking relevant public agencies and creation of the Jamaica single window for trade platform.
More information on political risk, including political demonstrations, is available in the FCDO travel advice. More information on political risk, including political demonstrations, is available in the FCDO travel advice.
Human rights and business
Jamaica recognises the UN guiding principles on Business and Human Rights. The country has been a member state of the ILO since 1962 and has ratified all the core conventions on labour rights. The country also has set legislation which governs industrial and human relations, wage standards and social benefits.
Trade Unions factor strongly in Jamaica’s political history and have been in existence from as early as 1938. In modern Jamaica, there are several active trade unions, each with large membership, significant clout and recognition in worker representation and bargaining rights. Despite the passing of the Child Care and Protection Act in 2004, which explicitly prohibits child labour, there have been a few reported incidents of children engaging in informal economic activity. The government has however responded quickly to this problem by working closely with the ILO to institute national programmes to prevent and eliminate child labour.
National laws protect against some forms of discrimination in the labour market. Women have made significant progress in all areas of work in Jamaica and have done far better than men in areas of education. This trend is not reflected in the labour market, where males continue to have lower unemployment rates and earn higher wages. Under the 2014 Disabilities Act, which came into effect in 2022, no employer should deny an otherwise qualified person with disabilities employment because of his or her disability. Employers should also ensure that such persons under their employ are afforded opportunities for training, transfer or any other benefits extended to other employees. Jamaica has historically had high levels of homophobia. LGBT+ Jamaicans, especially those who are poor, are particularly vulnerable to violence. While wider society is gradually adopting a more liberal outlook, there is no expectation of changes to discriminatory laws.
Bribery and corruption
Bribery is illegal. It is an offence for British nationals or someone who is ordinarily resident in the UK, a body incorporated in the UK or as Scottish partnership to bribe anywhere in the world. In addition, a commercial organisation carrying on a business in the UK can be liable for the conduct of a person who is neither a UK national or resident in the UK or a body incorporated or formed in the UK. In this case, it does not matter whether the acts or omissions which form part of the offence take place in the UK or elsewhere.
Jamaica has gradually improved its ranking in Transparency International’s corruption perception index (CPI), moving to 69th out of 180 countries in 2022, up one place from 70th in the 2021 and from 83rd in 2016. This has been supported by government and civil society measures that seek to prevent corruption and improve the transparency of doing business in Jamaica. For example, an Integrity Commission was established in 2017, and the Major Organised Crime and Anti-Corruption Agency (MOCA) was formed in August 2014 bringing together the Anti-Corruption Branch (ACB) and the Major Organised Crime and Anti-Corruption Task Force (MOCA TF). It is now an elite agency focusing on tackling corruption in the public sector and bringing high-value criminal targets to justice.
Visit the anti-corruption resources page on the website of the Integrity Commission providing advice and guidance some basic effective procedures you can establish to protect your company from them.
Read the information provided on our bribery and corruption page, including details of the Government’s Anti-Corruption Strategy 2017-2022
Terrorism threat
See the terrorism section of the FCDO Travel Advice on Jamaica.
Protective security advice
See the current FCDO travel advice on Jamaica.
Intellectual property
Jamaica is a member of the World Intellectual Property Organization and has a central Intellectual Property Rights office that deals with the administration of both Industrial Property and Copyright and Related Rights. The office was set up to fulfil the country’s bilateral and multilateral obligations in the field of Intellectual Property.
Jamaica has one of the stronger intellectual property protection regimes in Latin America and the Caribbean, according to the (US Chamber of Commerce-affiliated) International Property Rights Index. The passing of patent and industrial design legislation, the Patents and Designs Act, in 2020 is a significant shift in Jamaica’s Intellectual Property landscape, bringing Jamaica more in line with international standards – it is compliant with the WTO Agreement on Trade-Related Aspects of Intellectual Property Rights (TRIPS). There have been incidences of copyright infringements in Jamaica, but the government is moving aggressively against these illegal practices under the country’s Copyright Act.
Jamaica’s copyrights are across borders, with the exception of USA where a body of work must be lodged with the Library of Congress to prove ownership. However, all other intellectual property areas, such as trademarks, industrial designs, patents and are territorial where protection is only given in the countries where they are registered. We highly recommend that you seek protection in Jamaica. For information on registering your trademark in Jamaica, you should contact The Jamaica Intellectual Property Service (JIPO). Read the information provided on our intellectual property page.
Climate change
Jamaica is strongly committed to building a climate resilient society. The climate change policy framework for Jamaica was promulgated in 2015 and updated in 2021, with the goal of creating a sustainable mechanism for integrating climate change considerations in governance systems (institution arrangement, polices, plans, etc.). The country submitted its Nationally Determined Contribution (NDC) in November 2016 and ratified the Paris Agreement in April 2017, further signalling its commitment to enhance climate action. In addition, they plan to develop a strategy for Low Carbon Emissions and Climate Resilient Development (LTS) that will design options for mitigation and adaptation in an integrated framework to 2050.
The initial NDC which was enshrined in the National Energy Policy (2009- 2030) highlighted the importance of national adaptation planning. In June 2020, Jamaica submitted an updated and more ambitious NDC. In August 2021, Jamaica launched its NDC Implementation Plan. With efforts now shifting to adaptation, Jamaica published its Adaptation Communication in August 2022 and is preparing a National Adaptation Plan.
Going forward, increasing renewable sources of energy is a critical pillar toward reducing emissions. In 2019, the government adopted the Integrated Resource Plan (IRP) which is a comprehensive decision support tool and a road map for achieving Jamaica’s objectives to transition to renewable energy over a 20-year period. The road map is important for attracting private investment to support the transition to renewables and increase efficiency in the energy sector.
Organised crime
Jamaica has its share of lottery scams and Ponzi schemes against which regulatory bodies have had some success in taking action. There is also wider criminal activity linked to drugs and firearms that the UK and the Government of Jamaica work closely together on. Business groups have consistently raised concerns around the challenge of extortion by local organised criminal gangs. The government has implemented several initiatives to reduce the level of criminality; however more time and effort will be required given the complexity of the challenges, before significant reductions will be seen. The tabling of Data Protection Act 2020 and ongoing work to develop a National Cybercrime policy reflects the government’s focus on creating a robust framework for cyber security. Read the information provided on our organised crime page.
Contact us
Contact the Department for Business and Trade (DBT) team in Jamaica for further information.
Useful links
For further information, please see:
Ministry of Foreign Affairs & Foreign Trade
Ministry of Industry, Investment and Commerce