Belize is grappling with a severe energy crisis as soaring electricity costs from Mexico’s Comisión Federal de Electricidad (CFE) place immense strain on its citizens. Prime Minister John Briceño revealed this week that during peak hours, Belizeans are paying up to one U.S. dollar per kilowatt, a rate that is significantly higher than global standards. This alarming situation has prompted the government to explore alternative solutions, including a potential connection to the Central American power grid.
分类： business
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Low September Tourist Arrivals Signal Hard Times Ahead
Belize’s tourism industry, a cornerstone of its economy, is bracing for challenging times as recent data reveals a significant drop in overnight tourist arrivals. According to the Belize Tourism Board, September 2025 saw an 8.6% decline in overnight visitors compared to the same period last year, with numbers falling from over 22,000 to just under 21,000. This downturn is particularly concerning given that overnight tourism is the primary revenue generator for the sector. The extended U.S. federal government shutdown, coupled with global geopolitical tensions and economic uncertainties, is exacerbating the situation, causing American and international travelers to reconsider their travel plans. Tourism Minister Anthony Mahler acknowledged the strong start to the year but highlighted the adverse effects of global instability, including trade wars and conflicts, on travel behavior. BTB Director Evan Tillett emphasized the critical role of overnight tourism, describing it as the ‘lifeblood’ of the industry. The recent decline starkly contrasts with 2024, a record-breaking year that saw over 562,000 overnight visitors, marking a 21% increase from 2023. As the industry prepares for a potential slowdown, stakeholders are hopeful for a recovery before the peak tourist season begins.
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Bisonó promotes Dominican free trade zones to Spanish investors
The Dominican Republic’s free trade zone model has been hailed as one of the most robust and dynamic in the region, with exports projected to hit US$8.6 billion by the end of 2024, according to Víctor Bisonó, the Minister of Industry, Commerce, and MSMEs. The sector has already generated over 198,000 direct jobs and 450,000 indirect jobs, contributing 3.1% to the national GDP in the previous year. In the first eight months of 2025 alone, exports surpassed US$5.7 billion, underscoring the country’s growing economic momentum. Bisonó shared these insights during his presentation, ‘Advanced Manufacturing Ecosystem in the Dominican Republic,’ held at the Mapfre Foundation as part of Dominican Week in Spain. He emphasized the nation’s transformation into a regional hub for innovation, logistics, and skilled talent, attracting 49 new companies this year. These additions expand the network of 97 industrial parks across diverse sectors, including electronics, pharmaceuticals, premium tobacco, textiles, jewelry, and medical devices. The latter sector boasts world-class firms such as Baxter, Jabil, B. Braun, and Cardinal Health. Bisonó also spotlighted the National Semiconductor Strategy (Decree 324-24), which aims to integrate the Dominican Republic into global microelectronics value chains. Citing the Information Technology and Innovation Foundation (ITIF), he noted the country’s potential to produce printed circuit boards and test components, positioning it as a trusted partner for the United States in advanced manufacturing. Inviting Spanish investors to collaborate, Bisonó described the Dominican Republic as a nation that ‘produces, innovates with purpose, and exports with identity,’ supported by legal stability, robust logistics, and a highly skilled workforce.
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PM: “We Are In Trouble Right Now With Mexico”
Belize is grappling with escalating electricity prices and strained relations with Mexico, its primary energy supplier. Prime Minister John Briceño has openly acknowledged the challenges, stating, ‘We are in trouble right now with Mexico, as much as you might not want to accept it, we are in trouble.’ During peak demand periods, Mexico’s Comisión Federal de Electricidad (CFE) has reportedly increased electricity prices to US$1 per kilowatt, exacerbating the financial burden on Belizeans. Belize Electricity Limited (BEL) has expressed deep concern over these developments. To address this crisis, the Belizean government has signed a non-binding memorandum of understanding (MOU) with U.S.-based Energy Transfer. The agreement proposes generating 50 megawatts of power locally, aiming to reduce reliance on imported electricity and enhance long-term energy security. Prime Minister Briceño emphasized that this initiative would not only improve domestic energy reliability but also position Belize as a potential energy exporter to neighboring Central American countries. This project is part of a broader strategy to diversify Belize’s energy portfolio, which includes the recent acquisition of Fortis hydroelectric dams, currently supplying approximately one-third of the nation’s power. While still in its early stages, the initiative reflects Belize’s commitment to achieving energy independence and mitigating the impact of external market fluctuations.
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Caribbean Development Bank collabs w/Inter-American Development Bank for regional resilience debt solutions
In a landmark initiative to address the pressing issue of sovereign debt in the Caribbean, the Caribbean Development Bank (CDB) and the Inter-American Development Bank (IDB) convened a high-level gathering of regional and international financial experts. The event, held in Barbados from October 28 to 30, coincided with the annual meeting of the Latin America and Caribbean (LAC) Debt Group. Attendees included representatives from Debt Management Offices (DMOs), finance ministries, central banks, Multilateral Development Banks (MDBs), and private sector stakeholders. The primary objective was to explore innovative financing mechanisms and strategies to enhance debt management, foster resilience, and promote sustainable development across the region.
Dr. Isaac Solomon, Vice President (Operations) at CDB, underscored the critical role of effective debt management in ensuring long-term economic stability during his opening remarks. ‘The Caribbean has made commendable strides in fiscal discipline, modernizing debt frameworks, and restoring macroeconomic stability,’ he noted. ‘However, elevated debt levels and unfavorable debt dynamics persist, posing significant challenges to achieving the Sustainable Development Goals (SDGs) and adapting to emerging demands.’
Mr. Anton Edmunds, General Manager of the IDB’s Regional Country Department Caribbean, emphasized the need for enhanced coordination among MDBs. He highlighted the IDB’s commitment to fostering partnerships and developing innovative, solution-oriented debt transactions tailored to the unique needs of Small Island Developing States (SIDS).
Barbados’ Minister of Finance, Economic Affairs, and Investment, Hon. Ryan Straughn, called for greater collaboration among MDBs to better support Caribbean governments. He stressed that such cooperation is essential, particularly given the resource constraints faced by SIDS, which must balance development goals with debt management and fiscal stability. Minister Straughn reaffirmed the region’s unity and collective commitment to addressing critical issues like debt, which are vital to long-term development.
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Gov’t removes VAT on 8 items
In a significant move to alleviate financial pressures on consumers, the government has announced the removal of Value Added Tax (VAT) on eight essential food items. Prime Minister Ralph Gonsalves made the declaration during his Independence Address on Monday, confirming that the changes will take effect from November 3. The exempted items include chicken parts, processed cheddar cheese, canned tuna, canned sardines, chicken sausages, cereals, lentils, and health drinks like Ensure and Suppligen. These products will now join other food items already exempt from VAT, such as chicken and turkey wings, back, and neck. The Prime Minister emphasized that this targeted approach aims to provide tangible relief to consumers while ensuring the government can monitor the impact effectively. He projected that the exemption would cost the Treasury approximately EC$8 million annually but assured that the country’s expected economic growth would offset this loss. Gonsalves criticized calls for a blanket VAT reduction, arguing that such measures would cost the government EC$60 million annually and necessitate cuts to essential services or increased taxes elsewhere. He also addressed calls to reduce VAT on domestic electricity, noting that nearly 90% of households already fall below the consumption threshold for VAT. The Prime Minister reiterated his commitment to responsible governance, emphasizing that the government’s approach prioritizes the people’s welfare while maintaining fiscal stability.
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GOB Plans to Keep Majority Share in BEL
The Government of Belize (GOB) has announced plans to retain a majority stake in Belize Electricity Limited (BEL) while preparing to divest 33.5% of its shares to the public. Prime Minister John Briceño emphasized that the state’s majority ownership is constitutionally mandated and non-negotiable. However, the divestment process is currently on hold due to BEL’s precarious financial situation. Briceño explained that selling shares under current conditions would result in significant undervaluation, prioritizing financial stabilization before any public offering. The initiative aims to provide Belizeans with an opportunity to invest directly in the nation’s primary power provider, with hopes of widespread participation. The sale will be structured in two phases, with shares valued at approximately 160 million Belize dollars. Briceño also highlighted the importance of securing strong returns for the Social Security Board, with local financial institutions already expressing interest in the offering. The move comes amid a backdrop of excess liquidity in the financial system, estimated at 700 to 800 million Belize dollars.
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$24-b payout
Jamaica is poised to receive a $150 million payout from its catastrophe bond, marking a historic activation of this financial safety net as the nation grapples with the extensive damage caused by Hurricane Melissa. Disaster modeller Chuck Watson of Enki Research estimates the storm’s damage between $5 billion and $16 billion, likening it to the catastrophic Hurricane Gilbert of 1988, which caused $7 billion in losses. Watson described Melissa as a worst-case scenario for the island, potentially doubling Gilbert’s impact.
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SBAJ anticipates shake-up of SME sector post-Hurricane Melissa
As Hurricane Melissa, the first major storm of the Atlantic hurricane season, approaches Jamaica, the Small Business Association of Jamaica (SBAJ) has voiced grave concerns about the potential devastation to the island’s small and medium-sized enterprises (SMEs). SBAJ President Garnet Reid warned that the hurricane could deliver a ‘double whammy’ to businesses already struggling to recover from the COVID-19 pandemic and ongoing economic challenges. Speaking to the Jamaica Observer, Reid emphasized that many SMEs may face permanent closures if the storm hits as projected, potentially ruining the upcoming holiday season for countless businesses. The hurricane, expected to cause billions in losses, has already disrupted operations with widespread flight cancellations and business closures. Reid highlighted limited access to finance as a critical barrier to SME recovery and called for urgent government intervention, including the establishment of a special emergency fund through entities like the Development Bank of Jamaica (DBJ). He also expressed strong opposition to a proposed increase in electricity rates by the Jamaica Public Service Company (JPS), arguing that such a move would exacerbate the economic hardships faced by small businesses. Reid urged the government to reject any rate hikes and focus on restoration and recovery efforts instead. Additionally, he advocated for greater competition in the energy sector, suggesting that a monopoly stifles fair pricing and consumer choice. The small business sector, often described as the engine of Jamaica’s economy, plays a vital role in employment and tax revenue, making its recovery crucial for the nation’s overall economic stability.
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Young: UNC making Trinidad and Tobago energy uncompetitive
Former Energy Minister Stuart Young has issued a stark warning about the potential economic fallout from the Trinidad and Tobago (TT) government’s current energy sector strategies. Speaking to the media outside the Red House in Port of Spain, Young criticized the government’s approach, which he claims involves “trying to extort” companies through unilateral rate increases. He argued that such measures could render TT uncompetitive in the global energy market, jeopardizing both revenue and jobs.
Young emphasized that TT is not the only country with natural gas reserves or the ability to attract global investment. He warned that other nations with larger reserves and more favorable terms could easily lure companies away from TT. The recent budget’s electricity rate hikes, coupled with increased estate-related costs, have already begun to deter investors, he said.
The former minister highlighted the broader economic implications, noting that reduced competitiveness could lead to significant revenue losses for the government, which relies heavily on taxation from energy exports. This, in turn, could strain public services, delay salaries, and cause shortages in hospitals. Additionally, job losses could ripple through the economy, affecting not only plant workers but also ancillary businesses, such as food suppliers.
Young pointed to the recent shutdown of Nutrien’s operations in Point Lisas as a case in point. The global petrochemical leader announced a phased shutdown on October 23, citing port access restrictions and unreliable natural gas supply. The closure has already impacted over 300 temporary workers and raised concerns about CO2 supply for the food and beverage industry.
In response, the National Gas Company of TT (NGC) collaborated with Proman to ensure an alternative CO2 supply. Proman successfully delivered the equivalent volume of CO2 at the same price as Nutrien, with necessary infrastructure completed by October 27. Proman’s Managing Director, Anand Ragbir, praised the swift efforts of his team, while Massy Gas Products Trinidad CEO Marlon Millet expressed gratitude for the collaborative solution.
Young’s warnings underscore the urgent need for TT to adopt more competitive policies to safeguard its energy sector and broader economy.