2021 Investment Climate Statements: Grenada

Policies Towards Foreign Direct Investment

Grenada employs a liberal approach to foreign direct investment (FDI) and actively promotes foreign investment into the country.

The government of Grenada identified five priority sectors for investment:

• Tourism and hospitality services
• Education and health services
• Information and communication technology
• Agribusiness
• Energy development

The Grenada Investment Development Corporation (GIDC) is the country’s investment promotion agency. It was established in 1985 to stimulate, facilitate, and encourage the creation and development of industry.

The GIDC is a “one-stop shop” offering:

• Investment and trade information
• Investment incentives
• Investment facilitation and aftercare
• Entrepreneurial/business skills training
• Small business support services
• Industrial facilities
• Policy advice

To promote FDI, the GIDC adopts a targeted approach to promote investment opportunities, provides investor facilitation and entrepreneurial development services, and advocates for a supportive environment for investors to develop and grow businesses, trade, and industries.

Investment retention is a priority in Grenada and is maintained through ongoing dialogue with investors facilitated by the GIDC.

Limits on Foreign Control and Right to Private Ownership and Establishment

There are no economic and industrial strategies that discriminate against foreign investors. Non-Grenadian investors may be required to obtain an Alien Landholding License and pay a property transfer tax, which levies a 10 percent fee on the purchase of shares in a Grenadian registered company or real estate. In addition, the sale of such shares or real estate to non-nationals will attract a property transfer tax of 15 percent payable by the seller if the seller is a non-Grenadian. Foreign investors employed in Grenada are required to obtain a work permit, renewable annually. U.S. investors must pay a fee of USD $1,111 or XCD $3,000 for work permits. The renewal fee varies based on the investor’s country of citizenship.

There are no limits on foreign ownership or control, except for enterprises deemed prejudicial to national security, the environment, public health, or national culture, or which contravene the laws of Grenada. Grenada has accepted but not yet implemented regional anti-competition obligations. U.S investors are not disadvantaged or singled out by any of the ownership or control mechanisms, sector restrictions, or investment screening mechanisms in Grenada relative to other foreign investors.

Other Investment Policy Reviews

Grenada passed its most recent Investment Promotion Act in 2014. The legislation promotes, encourages, and protects investment in Grenada by providing investors with a stable framework of fundamental and enforceable rights. It seeks to guarantee and ensure security and fairness in strict accordance with the rule of law and best international standards and practices. The 2014 Act is also in compliance with WTO regulations, the Economic Partnership Agreement (EPA) between the EU and the Caribbean Community (CARICOM), and the Agreement between the Caribbean Forum (CARIFORUM) and the EU.

The incentives regime enacted in 2016 grants incentives to ensure that all new tax exemptions are codified, restricts discretionary exemptions, and requires that the beneficiaries of exemptions file appropriate tax returns and comply with tax requirements. It also sets streamlined, simple, and non-discretionary system/process for the granting of incentives. The Customs and Inland Revenue Departments (CIRD) administer exemptions through a clearly defined rule-based system in contrast with past incentive schemes that required each case to be approved at the cabinet level.

Under this regime, the CIRD grants incentives to projects within the priority sectors for investment. They are tourism, manufacturing, agriculture and agribusiness, information technology services, telecommunication providers and business process outsourcing operations, education and training, health and wellness, creative industries, energy, and research and development. Other sectors also include student accommodation, heavy equipment operators, investment projects above particular investment thresholds, and projects within specific geographical locations.

The incentive regime seeks to provide investment incentives on a performance basis (i.e., the more one invests, the more incentives one can receive). Therefore, based on the level of investment, CIRD grants different levels of incentives in a transparent, predictable, and non-discriminatory manner.

In the past three years, the government was not subject to third-party investment policy reviews through multilateral organizations such as the Organization for Economic Cooperation and Development (OECD), the WTO, and the UN Conference on Trade and Development.

Business Facilitation

An investor must register a business name and identify whether it is a partnership or limited liability company. A registered business can be wholly owned or a joint venture. The official website of the GIDC includes an investor’s guide that details the procedures for starting and operating a business in Grenada. The guide has a business procedure flow chart and gives step-by-step instructions for various tasks from registering a business and owning properties to obtaining permits and licenses. Detailed information on business registration and timelines can be found at: http://grenadaidc.com/investor-centre/investors-guide/starting-up-a-business/#.WKxXdfnQe70 

The GIDC provides business facilitation mechanisms and ensures the equitable treatment of women and underrepresented minorities in the economy.

Outward Investment

The government of Grenada does not promote or incentivize outward investment. The Revised Treaty of Chaguaramas, to which Grenada is a party, includes a chapter on service agreements under the European Partnership Agreement (EPA). Under certain circumstances, provisions in these agreements may offer incentives to the potential investor. Grenada does not restrict domestic investors from investing abroad.

A. Bilateral Investment Treaties: Bilateral Investment Treaties established between Grenada and several countries are designed to encourage and protect international investments and to ensure that investors receive fair, equitable, and nondiscriminatory treatment. Bilateral Investment Treaties exist between Grenada and the United States as well as Grenada and the UK.

Grenada is a member of the Caribbean Community (CARICOM), established by the Treaty of Chaguaramas in 1973 to promote economic integration and development among its 15 member states. The Revised Treaty of Chaguaramas later established the CARICOM Single Market and Economy (CSME) to provide for the free movement of goods, services, capital, and labor within member states.

Grenada is also a member of CARIFORUM and party to the EPA between the EU and CARICOM member states. This agreement aims to alleviate poverty, foster regional integration, promote economic cooperation, and propel CARIFORUM states’ entry into the world economy by creating an attractive investment climate and ensuring trade viability on the world market.

Grenada is also a member of the Caribbean-Canada Trade Agreement (CARIBCAN), an agreement between the Canadian government and the Commonwealth Caribbean nations to promote trade, investment, and industrial cooperation. Treaties with investment provisions also exist through the CARICOM-Costa Rica free trade agreement (FTA), CARICOM-Cuba Cooperation Agreement, CARICOM-Dominican Republic FTA, and CARICOM-Venezuela FTA.

The Caribbean Basin Initiative (CBI), an initiative created by the United States with the Caribbean and Central America, also provides trade and tariff benefits.

Grenada, under the umbrella of CARICOM, is reviewing trade agreements with Cuba and the Dominican Republic to negotiate new market access and opportunities.

In 2018, Grenada signed a bilateral Open Skies Agreement with the United States. It is intended to liberalize the aviation market, remove various restrictions, increase capacity and number of routes, and improve the ease of travel to and from Grenada.

B. Bilateral Taxation Treaties: Grenada passed legislation to implement the Foreign Account Tax Compliance Act Inter-Governmental Agreement (FATCA) with the United States. FATCA requires that information on U.S. citizens with accounts at local financial and credit institutions holding more than XCD $50,000, approximately USD $18,518 be shared with the U.S. Internal Revenue Service (IRS). The legislation provides for the competent authority to be the Comptroller of Inland Revenue, who communicates directly with the IRS. The Comptroller mandates his/her staff to gather information from financial institutions to be divulged to the IRS. According to the legislation, “failure to comply with such a request is a summary offence punishable by a fine not exceeding [XCD] $100,000.”

The legislation also provides for the protection of privacy, stating that the competent authority must protect confidential account information. Other than FATCA, the United States does not have a tax treaty with Grenada.

Transparency of the Regulatory System

Grenada recognizes that investors value transparent rules and regulations dealing with investment.

The Investment Act and the investment promotion regime promote transparency by authorizing investment incentives to key sectors through the GIDC. This helps to streamline processes, standardize treatment of investors, and better define investment rights. It also provides procedural guarantees and reduces the possibility for political influence in business negotiation.

Grenada also seeks to promote investment by consulting with interested parties, simplifying and codifying legislation, using plain language drafting, developing registers of existing and proposed regulation, expanding electronic dissemination of regulatory material, and publishing and reviewing administrative decisions.

Tax, labor, environment, health and safety, and other laws or policies do not distort or impede investment. In theory, bureaucratic procedures, including those for licenses and permits, are sufficiently streamlined and transparent. In practice, local authorities recognize that the implementation of procedures can sometimes be slow and inefficient.

Legal, regulatory, and accounting systems are generally transparent and consistent with international norms. Public finances and debt obligations, including explicit and contingent liabilities, are also transparent and in keeping with international requirements.

No new regulatory systems and enforcement reforms have been announced since the last ICS report.

International Regulatory Considerations

Grenada has been a member of the WTO since 1996 and is a party to agreements established under the organization. In pursuit of WTO compliance, Grenada is in the process of negotiating trade and investment agreements that contain provisions better aligned with the provisions of the WTO. Grenada is a member of CARICOM and the CARICOM Single Market Economy (CSME), which adheres to the international norms and regulatory standards outlined by the WTO. Also, in keeping with WTO regulations the government notifies all draft technical regulations to the WTO Committee on Technical Barriers to Trade.

Legal System and Judicial Independence

The Prime Minister and the cabinet have the executive authority to negotiate and sign international agreements and conventions with other states and international organizations.

Grenada’s judicial system is based on English common law. The judiciary has four levels: The Magistrates Court, the High Court, the Eastern Caribbean Supreme Court, and the UK-based Privy Council.

The Magistrates Court primarily handles minor civil and criminal cases, while the High Court adjudicates cases under the purview of the Acts of Parliament. Appeals from the Magistrates Court are heard by the High Court, while appeals from the High Court are heard by the Eastern Caribbean Supreme Court. The Eastern Caribbean Supreme Court is comprised of the Chief Justice, who serves as the Head of the Judiciary; four Justices of Appeal; nineteen High Court Judges; and three Masters, who are primarily responsible for procedural and interlocutory matters. The Court of Appeal judges are based at the Court’s headquarters in Saint Lucia.

The Privy Council serves as Grenada’s final Court of Appeal. However, the Caribbean Court of Justice (CCJ) has compulsory and exclusive jurisdiction under Section 211 of the Revised Treaty of Chaguaramas, to which Grenada is a party. The Treaty delineates rights and responsibilities within CARICOM to hear and decide disputes concerning the interpretation and application of the Treaty.

The judicial system remains independent of the executive branch, and judicial processes are generally competent, fair, and reliable, however the process can be slow. Provisions are also made for appeals with the relevant court. Grenadian law also provides for the use of arbitration and mediation to resolve investment disputes.

Laws and Regulations on Foreign Direct Investment

The economy is supported by a strong legislative and regulatory framework that encourages FDI and promotes investment initiatives. Grenada augmented the investment climate with a revitalization of its Citizenship by Investment (CBI) program.

In 2016 parliament passed several legislative changes to enhance the investment climate in Grenada. Changes were made to the following Acts:

• Value Added Tax Amendment Act – Provides for VAT exemptions for qualifying investments in priority sectors.
• Excise Tax Amendment Act – Provides for tax incentives for investors engaged in manufacturing and investors entitled to conditional duties exemptions for motor vehicles.
• Property Transfer Tax Amendment Act – Establishes more favourable rates of property transfer tax for investors.
• Customs Service Charge Amendment Act – Removes the discretionary power of cabinet to prescribe varying rates of customs service charge (CSC) and to prescribe a new rate of CSC applicable to investors engaged in manufacturing.
• Investment Amendment Act – Provides for specified circumstances under which the Minister of Finance may make regulations under the Principal Act.
• Bankruptcy and Insolvency Amendment Act – Modernized the law relating to bankruptcy and insolvency of individuals and companies. The act is based on the Canadian Bankruptcy and Insolvency Act, which has been used as a model in several Caribbean countries.
• Income Tax Amendment Act – Provides for a waiver on withholding tax applicable on specified types of repatriated funds relating to investors engaged in tourism accommodation or health and wellness.

The GIDC and the Inland Revenue and Customs Department of Grenada work to ensure adherence to the rule of law and to facilitate the procedures outlined in the revised investment regime. The legal and regulatory framework governing foreign direct investment in Grenada is described here: http://grenadaidc.com/ 

Competition and Antitrust Laws

There are no competition laws in Grenada. A number of CARICOM and Organization of Eastern Caribbean States (OECS) proposals on competition are under consideration to strengthen market regimes under the CARICOM Single Market and Economy. CARICOM established a Competition Commission and plans are underway to establish a sub-regional Eastern Caribbean Competition Commission.

Expropriation and Compensation

According to the Constitution, Grenada shall not compulsorily acquire or take possession of any investment or any asset of an investor except for a purpose which is legal and non-discriminatory. If the government expropriates property for a legal purpose, it must promptly pay adequate and effective compensation. Owners of expropriated assets have the right to file claims in the High Court regarding the amount of compensation or ownership of the expropriated asset.

In 2016, parliament repealed the 1994 Electricity Supply Act and opened the market to potential investors who will commit to transition to alternative sources of power generation, decreasing costs, reducing dependence on imported fossil fuels, and improving energy efficiency. This repealed the exclusive license that was granted to the country’s sole electricity provider Grenada Electricity Services (GRENLEC) and its majority shareholder, U.S.-owned WRB Enterprises. This regulatory change triggered a clause in the Share Purchase Agreement requiring Grenada to repurchase the GRENLEC shares from WRB. WRB filed a request for arbitration with ICSID, and the Grenada government was ordered to pay $74 million to the U.S. investors following a March 2020 ruling. A negotiated sum of $63 million was paid to WRB Enterprises in December 2020.

In the past, Grenadian citizens had their lands expropriated to permit foreign investments but were compensated for such actions typically at the market value. There are no sectors at greater risk of expropriation, and there are no laws requiring local ownership. All expropriations have been subject to due process.

Dispute Settlement

ICSID Convention and New York Convention

Grenada is a signatory and contracting member of the International Center for Settlement of Investment Disputes and has engaged this platform to resolve past disputes. While Grenadian laws have adapted the provisions outlined in the New York Convention, the country is not a contracting state and has not ratified the convention.

Investor-State Dispute Settlement

There was an investment dispute between the government of Grenada and U.S.-owned WRB Enterprises, which was the majority shareholder in Grenada Electricity Services Ltd. In 2016, parliament repealed the 1994 Electricity Supply Act and opened the market to potential investors, which put an end to WRB’s 80-year exclusive license. This triggered a clause in the share purchase agreement requiring Grenada to repurchase the shares. The case was brought to arbitration before ICSID. On March 19, 2020, ICSID ruled in favor of WRB Enterprises. Grenada was ordered to pay $74 million for the shares, and a negotiated $63 million was paid in December 2020. There is no history of extrajudicial action against foreign investors.

International Commercial Arbitration and Foreign Courts

In the event of an investment dispute between two foreign parties, between a foreign investor(s) and Grenadian parties, between Grenadian partners, or between investors and the government of Grenada, Grenadian law mandates that the parties shall first seek to settle their differences through consultation or mediation. If the parties fail to resolve the matter, they may then submit their dispute to arbitration, file a lawsuit in Grenadian courts, invoke the jurisdiction of the Caribbean Court of Justice, or adopt such other procedures as provided for in the Articles of Association of the investment enterprise.

There is no government interference in the court system. Grenada participates in a court-connected mediation mechanism that can be accessed through the Mediation Centre. This Centre extends court-connected mediation to all member states of the OECS and allows for civil actions filed in court to be referred to mediation. Through this system, parties can utilize alternative dispute resolution mechanisms, including mediation, if the court deems them to be appropriate mechanisms for resolving the case.

Court-connected mediation, however, cannot be used in family proceedings, insolvency, non-contentious probate proceedings, proceedings when the High Court is acting as a prize court, and any other proceeding in the Supreme Court.

Bankruptcy Regulations

Grenada ranked 168 out of 190 for ease of resolving insolvency in the World Bank’s Doing Business Report for 2020, the same ranking it received in 2019.

The Bankruptcy Act makes provisions for all aspects of bankruptcy and sets out procedures for creditors to apply to the High Court for a bankruptcy order against a debtor and the appointment of a trustee in bankruptcy. There are provisions for the court to appoint an interim receiver pending the outcome of the application for a bankruptcy order. It also includes provisions for a process whereby an insolvent person, with leave of the court, may make an assignment of the insolvent person’s property for the general benefit of creditors of the insolvent person.

The High Court exercises exclusive jurisdiction in matters related to bankruptcy.

Investment Incentives

Grenada provides a legal package of benefits and concessions for specific investment activities. Incentives include tax waivers, import duty exemptions, repatriation of profits, and withholding tax exemptions.

Trade-related incentives are notified under Article 25 and Article 27 of the Agreement on Subsidies and Countervailing Measures. Concessions are available under the Income Tax Act, the Common External Tariff (SRO 42/09), the Property Transfer Act, the Petrol Tax Act, and the Customer Service Charge Act.

Fiscal incentives include:

• 100 percent investment allowances up to 15 years
• 50-100 percent property transfer tax waivers
• 50-100 percent withholding tax waivers
• Tax credits of 150 percent for training, research, and development
• Waiver of VAT on importation of capital goods
• Tax exemptions and waiver of duties on building materials

Non-fiscal incentives include:

• Equal treatment of all investors regardless of nationality or residence
• Conversion into freely convertible currency
• No discrimination among foreign investors
• Repatriation of profits allowed

Other incentives include accelerated depreciation (10 percent on physical plant and machinery; 2 percent on industrial buildings); investment allowance (100 percent write-off on total investment); carry forward of losses for three years; reductions in the property transfer tax; and 100 percent relief from customs duties on physical plant, equipment, and raw materials. Certain incentives may be linked to the site of investment, the number of persons employed, or other factors.

There was no instance where Grenada needed to review an approved investor for non-compliance with incentive requirements. Grenada does not have a practice of issuing guarantees or jointly financing foreign direct investment projects.

Foreign Trade Zones/Free Ports/Trade Facilitation

There are no foreign trade zones or free ports in Grenada.

Performance and Data Localization Requirements

CARICOM investors are accorded Rights of Establishment, while other foreign investors are required to obtain work permits and alien landholding licenses to invest in property.

The application fee for a work permit is USD $37/XCD $100 payable to the Work Permit Division of the Ministry of Labor. Along with the completed application form, applicants must also submit four passport-sized photos, a police certificate of character from their country, certificates of qualification, and a letter of intention. In addition, investors will need a character reference from a reputable person/former employer, a copy of the passport page indicating the last date of arrival in Grenada, a business registration certificate, company stamp, National Insurance Scheme compliance certificate, and recent tax compliance and VAT receipts.

The approval process takes two to three weeks, longer if there are questions, and is valid for one year. U.S. investors and workers are required to pay USD $1,111 or XCD $3,000 per year for renewal. The local government does not mandate local employment but encourages it.

There is no policy of “forced localization” of data storage and Grenada does not pressure international information and communications technology providers to provide source code or encryption keys. The OECS and other stakeholders have begun to develop draft model laws on electronic regimes. Laws specific to data storage and protection have not yet made it onto the national legislative agenda.

There are no measures to prevent or impede companies from transmitting customer or business-related data outside the country. There are no performance requirements. Investment incentives are applied uniformly to domestic and foreign investors on a case-by-case basis.

There is no requirement for foreign IT providers to turn over source code and/or provide access to encryption. There are no measures or draft measures that restrict companies from freely transmitting customer or other business-related data outside the economy/country’s territory.

Real Property

The Aliens Landholding Regulation Act No. 29 of 1968 (last amended in 2009) is the primary legislative instrument governing the right to private ownership by non-citizens. Investors may purchase or lease privately owned land and dispose of, or transfer, interests in the land under the Act. Investors may hold state lands by grant or lease from the state.

Property rights and interests are enforced under the Aliens Landholding Regulation Act. The only specific regulation regarding land lease or acquisition by a foreign or non-resident investor is the requirement to acquire an Alien Landholding License. The application process is described on the following website: http://grenadaidc.com/investor-centre/investors-guide/starting-up-a-business/#.WLBEUvnQe70 

Before a deed is issued, there is a title search on the previous owner, followed by conveyance, and the registering of the property to a new owner. A clear title must first be identified before the process moves forward. Once the landholder possesses a deed, the property remains legally theirs, occupied or not, until the deed is signed over to someone else.

Grenada ranked 147 out of 190 for the ease of registering property on the World Bank’s 2020 Doing Business Report.

Intellectual Property Rights

The Patents Act (Cap. 227 of the Consolidated Laws of Grenada) or the Trademarks Act (Cap. 284 of the Consolidated Laws of Grenada), or the Copyright Act Cap. 32 of 1988 (Cap. 67 of the Consolidated Laws of Grenada) guarantees the intellectual property rights of investors and investment enterprises e.g., patents, trademarks, brand names, and copyrighted materials in printed, recorded, or electronic formats. Grenada is a member of the World Intellectual Property Organization (WIPO), the Paris Convention, the Berne Convention, and the Patent Cooperation Treaty.

Domestic legislation regarding intellectual property protection has not been fully amended to bring it in line with the Trade-Related Aspects of Intellectual Property Rights (TRIPs) Agreement. However, updates to existing legislation are currently being drafted and reviewed.

Trademarks

The Trademarks Act of 2012 regulates trademarks.

Patents

The Registration of United Kingdom Patents Act Cap 283 of the Continuous Revised Laws of Grenada is still in force, although outdated. In accordance with the act, any person being the grantee of a patent in the United Kingdom or any person deriving right from such grantee may apply within three years from the date of issue of the patent in in the UK to have it registered in Grenada.

The Patent Act Cap 227 of the Continuous Revised Laws of Grenada is not TRIPS compliant. Implementation of the Patent Act No. 16 of 2011 has been slow due to the lack of implementing regulations, but the government has indicated that this a priority.

Copyright

The Copyright Act No. 21 of 2011 is in force.  In accordance with Berne Convention, there is no existing formal system of registration of copyrighted works. There are current discussions with WIPO, in conjunction with the intellectual property offices in the region, to consider a voluntary system of registration for copyrighted works.

Geographic Indication Bill

The geographic indication bills have been drafted but not yet enacted. The 2012 Trademarks Act provides for registration of collective marks in the absence of a geographic indication act.

Industrial Designs Bill

The Industrial Design Bill is a work in progress. According to the Office of Corporate Affairs, its enactment is a priority in 2021.

Administration of intellectual property laws in Grenada is the responsibility of the Ministry of Legal Affairs. The Corporate Affairs and Intellectual Property Office (CAIPO) is currently responsible for the registration of trademarks, re-registration of UK patents, and all other IP matters.

Post is unaware of any current or past prosecutions of IPR violations. Grenada is not listed in the U.S. Trade Representative’s Special 301 Report or in the 2020 Review of Notorious Markets for Counterfeiting and Piracy,

For additional information about national laws and points of contact at local IP offices, please see WIPO’s country profiles at http://www.wipo.int/directory/en/ 

Capital Markets and Portfolio Investment

Grenada possesses a robust legislative and policy framework that facilitates free flow of financial resources. Its currency, the Eastern Caribbean dollar, has a fixed exchange rate established by the regional Eastern Caribbean Central Bank (ECCB). Foreign employees of investment enterprises and their families may repatriate their earnings after paying personal income tax and all other taxes due. The government of Grenada encourages foreign investors to seek investment capital from financial institutions chartered outside Grenada due to the short domestic supply of capital. Foreign investors are more likely to tap local financial markets for working capital. The government, local banks, and the ECCB respect IMF Article VIII by refraining from restrictions on payments and transfers for current international transactions.

The private sector has access to the limited number of credit instruments. Grenadian stocks are traded on the Eastern Caribbean Securities Exchange, whose limited liquidity may pose difficulties in conducting transactions.

Money and Banking System

The financial industry in Grenada is regulated by two entities: The ECCB and the Grenada Authority for Regulation of the Financial Industry (GARFIN). The ECCB regulates the banking system. GARFIN oversees non-banking financial institutions through a regulatory system that encourages and facilitates portfolio investment. The estimated total assets of the largest banks are USD $1.03 billion. Information on the percentage of non-performing assets is not available. Grenada has not experienced cross-shareholding or hostile takeovers. As of November 30, 2020, commercial banks in Grenada deferred debt service on 4,069 commercial bank loans due to job losses and a reduction in salaries caused by the COVID-19 pandemic. This was the second highest number of deferrals in the Eastern Caribbean Currency Union (ECCU).

Foreign banks or branches can establish operations in Grenada subject to prudential measures and regulations governed by the ECCB. For the requirements and procedures, foreign banks can refer to the following website: https://www.eccb-centralbank.org/p/grenada-1 

There is correspondent banking available with all licensed commercial banks. No correspondent banking relationships have been lost in the past three years. There are no restrictions on a foreigner’s ability to establish a bank account.

In addition to the banking sector, there are alternative financial services provided through credit unions. GARFIN regulates credit unions.

Foreign Exchange and Remittances

Foreign Exchange

Grenada’s currency is the Eastern Caribbean dollar issued by the ECCB located in Saint Kitts and Nevis. The exchange rate is also determined by the ECCB. The Eastern Caribbean dollar is pegged to the U.S. dollar at 2.7, adding to the stability of trade and investment in Grenada. The national currency rate does not fluctuate.

There are no restrictions or limitations placed on foreign investors in converting, transferring, or repatriating funds associated with investments. Funds associated with any form of investment can be freely converted. Banks reserve the right to delay transactions if deemed suspicious or outside the typical level of activity on the account.

Remittance Policies

There are no difficulties or delays regarding remittances and no proposed policy changes that would either tighten or relax access to foreign exchange for investment remittances.

Transfers of currency are protected by Article VII of the International Monetary Fund Articles of Agreement. Grenada is also a member of the Caribbean Financial Action Task Force.

Sovereign Wealth Funds

Grenada does not have a sovereign wealth fund.

Grenadian state-owned enterprises (SOEs) are legislatively established by acts of Parliament. These enterprises all have boards of directors appointed by the government and answerable to the relevant ministries. Twenty-five of the 28 authorized SOEs are operational. They secure credit on commercial terms from commercial banks. SOEs submit annual reports to the Government Audit Department and are subject to audits shared with their parent ministries. SOEs manage transportation infrastructure (ports and airports), housing, education, hospitals, cement production, investment promotion, and small business development, among other functions. Generally, where they compete with the private sector, they do so on an equal basis.

Grenada, like its neighbors, acknowledges the OECD guidelines. Corporate governance of SOEs is established and regulated by founding statutes. Local courts show no favoritism toward SOEs in the adjudication of investment disputes.

For additional information on SOEs in Grenada see: http://www.oecd.org/countries/grenada/ 

Privatization Program

Grenada does not have a privatization program.

Corporate social responsibility (CSR), interchangeably used with responsible business conduct, is a concept that was introduced to Grenada relatively recently by multinational and regional corporations. Local businesses are slowly incorporating this principle into their operations.

Some social responsibility initiatives undertaken by the private sector and non-governmental organizations (NGOs) include education programs, fitness programs, sporting activities, and cultural endeavors. These are predominantly implemented by the telecommunication companies Digicel and LIME, along with financial institutions. There is also a recent push towards environmentally friendly business practices and development projects.

While firms that promote CSR are more favorably viewed by the community, there is little familiarity with international CSR standards. Activities are deemed to be responsible business conduct if they are lawful, not a threat to national security, and not detrimental to the environment, health, and culture of the Grenadian people. Other than this being a requirement for any company operating in Grenada, CSR is not built into the laws governing the operations of a company.

There has been no high profile, controversial instances of private sector impact on human rights or resolution of such cases in the recent past. Grenada generally enforces domestic laws in relation to human rights, labor rights, consumer protection, environmental protection, and other laws/regulations intended to protect individuals from adverse business impacts. Local labor unions play a role in promoting and monitoring responsible business conduct. Grenada uses private security companies but is not a signatory to The Montreux Document or the International Code of Conduct or Private Security Service Providers.

Additional Resources 

Department of State

• Country Reports on Human Rights Practices;
• Trafficking in Persons Report;
• Guidance on Implementing the “UN Guiding Principles” for Transactions Linked to Foreign Government End-Users for Products or Services with Surveillance Capabilities and;
• North Korea Sanctions & Enforcement Actions Advisory

Department of Labor

• Findings on the Worst Forms of Child Labor Report;
• List of Goods Produced by Child Labor or Forced Labor.
• Sweat & Toil: Child Labor, Forced Labor, and Human Trafficking Around the World and;
• Comply Chain.

Grenada is a party to the Inter-American Convention against Corruption. The Integrity in Public Life Act (Act No.24 of 2013) requires that all public servants report their income and assets to the independent Integrity Commission for review. The Integrity in Public Life Commission monitors and verifies disclosures, although disclosures are not made public except in court. Failure to file a disclosure should be noted in the Official Gazette. If the office holder in question fails to file in response to this notification, the commission can seek a court order to enforce compliance.

The Office of the Ombudsman received 59 complaints in 2019, compared to 64 in 2018. Of the 59 complaints, six were closed, 19 are ongoing, advice/referrals were given to 25, and nine were outside the jurisdiction of the Ombudsman. Private entities received the highest number of complaints totaling 18, followed by the Ministry of Labor with 14. Of the 18 complaints, advice/referrals were given to 12, and six were beyond the jurisdiction of the Ombudsman. Of the 14 complaints against the Ministry of Labor, one was closed, 10 are ongoing, and three received advice/referrals.

Bribery is illegal in Grenada. For the most part, the enforcement of anti-bribery laws and procedures is effective and non-discriminatory.

Grenada is not party to the OECD Convention on Combating Bribery of Foreign Public Officials in International Business Transactions. The country accepted and acknowledged the UN Convention against Corruption but has not yet signed or ratified it.

U.S. firms have not identified corruption as an obstacle to FDI in Grenada.

Resources to Report Corruption

Tafawa Pierre
Superintendent of Police/Head of FIU
Financial Intelligence Unit (FIU)
The Carenage, St. George’s, Grenada
(473) 435-2373 / 2374
gdafiu@spiceisle.com 

Allison Miller
Acting Ombudsman
Office of the Ombudsman
Tanteen, St. George’s, Grenada
(473) 435-9315
ombudsmangd@spiceisle.com 

Contact at “watchdog” organization:

Lady Anande Trotman-Joseph
Chairperson
Office of the Integrity Commission
Archibald Avenue, St. George’s, Grenada
(473) 439-9212/ 534-5190
office@grenadaintegritycommission.org 

Grenada has a stable parliamentary representative democracy free from political violence.

Grenada signed and ratified all the International Labor Organization’s (ILO) undertakings and enshrined these rights into its labor laws, including the Labor Relations Act No.1 of 1999 and the Employment Act No. 1 of 1999. Grenadian law protects the right of workers to be represented by a trade union of their choice.

Employers are generally expected to recognize a union that represents most workers but are not obligated to recognize a minority union formed by some employees if most of the workforce does not belong to said union. In accordance with the Trade Union Recognition Act No 29 of 1979, investors shall grant union representation at any site of employment if most employees indicate the desire for union representation. Investment enterprises are also required to contribute to the social insurance and welfare programs for their workers in accordance with the National Insurance Act.

The Ministry of Labor may refer disputes regarding workers in essential services to compulsory arbitration. Essential services include employees of utility companies, public health, and protection sectors, including sanitation, airport, seaport, and dock services.

Grenada does not restrict the legal activities of trade unions. Most of the workforce is unionized, and labor relations are generally stable.

Article 32 of the Employment Act prohibits employment of children under the age of 16 except for temporary holiday employment. Part 7 of the Employment Act provides for the protection and regulation of wages, and article 52 mandates the minimum wage. Minimum wage schedules are set by occupation. In the second quarter of 2020, the unemployment rate was 28.4 percent compared to 15.1 percent during the fourth quarter of 2019. In 2020, more than 14,000 jobs were lost from a labor force of approximately 50,000 due to the global COVID-19 pandemic and its impact on the tourism sector.

There have been strikes in the past year, but none posed an investment risk, and negotiations toward a satisfactory resolution continue. There are no gaps in compliance in law or practice with international labor standards that may pose a reputational risk to investors. No potential gaps were identified in law or in practice with international standards by the ILO.

No new labor-related laws or regulations were enacted during the last year, and no bills are pending.

Grenada acceded to the U.S. Overseas Private Investment Corporation (OPIC) in 1968. The 2018 Better Utilization of Investments Leading to Development (BUILD) Act created the U.S. International Development Finance Corporation (DFC), consolidating the functions of OPIC and the former Development Credit Authority of the U.S. Agency for International Development (USAID). Through investment guarantees issued by the U.S. government and other programs, the DFC seeks to encourage private investments in projects that will contribute to the development of Grenada’s economic resources and productive capacities.

Grenada is eligible for assistance via the Clean Energy Finance Facility for the Caribbean and Central America, a financing mechanism supported by the DFC, USAID, the U.S. Trade and Development Agency, and the U.S. Department of State. For more on this program, see: https://www.dfc.gov/. 13. Foreign Direct Investment and Foreign Portfolio Investment Statistics

* Source for Host Country Data: Government of Grenada, Ministry of Finance Statistics Division – https://www.finance.gd/, and the Eastern Caribbean Central Bank – https://www.eccb-centralbank.org/statistics/gdp-datas/comparative-report/1

Karl E. Duckworth
Principal Officer, U.S. Embassy Grenada
Tel: (473) 444-1176
Email: duckworthke2@state.gov 

Rachér Croney
Political & Economic Specialist
Tel: (473) 444-1173
Email: croneyrr@state.gov 

Contacts for Investment-Related Inquiries:

Ronald Theodore
CEO, Grenada Investment Development Corporation
Tel: (473) 444-1035
Email: Invest@grenadaidc.com  rtheodore@grenadaidc.com 
rtheodore@grenadaidc.com 
Website: www.grenadaidc.com 

Cathyann Alexander-Pierre
Senior Specialist, Investment Promotion Agency
Grenada Investment Development Corporation
Tel: (473) 444-1033-35, Ext.-236
Email: calexander@grenadaidc.com