Nevis: Country and Foreign Investment
Investment Incentive Schemes
A landmark autonomous investment agency was launched on Nevis on 21st May, 2008.
The Nevis Investment Promotion Agency (NIPA), as it is known, evolved from the Marketing and Development Department in the Ministry of Finance in the Nevis Island Administration (NIA).
The agency, which was launched by Premier of Nevis and Minister of Finance in the NIA Joseph Parry, has responsibility for investment promotion, facilitation and aftercare services. It would also advocate policy changes to enhance the investment climate on Nevis.
During his feature address, Premier Parry underscored the importance of the new agency and said that the NIA had demonstrated its confidence in the private sector, through its support for the agency which was private sector driven.
"We have subsumed the Marketing Division of the Financial Services Division into this organisation. We believe it will strengthen its capacity to function and perform. This is a new venture for Nevis but new in the Caribbean. We look forward to positive results," he said.
Parry described NIPA as a one stop facilitator to promote the island, to give after care and support for future expansion and to lobby government to continually make Nevis more user friendly.
"We believe that this NIPA shall achieve these objectives. We believe that in the next few years the Federation and Nevis in particular will no longer be regarded as a difficult place to do business," he said.
The Premier said it was the intention of the Administration to equal or surpass any other jurisdiction in the world in due diligence regulations, supervision of regulations and the highest standards of conduct even as the island maintained its existing excellent record for good service. He added that the NIA anticipated cooperation from the United States.
Meanwhile, Junior Minister with responsibility for Trade and Industry, Consumer Affairs, Import and Export in the NIA Dwight Cozier, said the creation of NIPA by the Nevis Reformation-led NIA was in response to the interest shown by both local and foreign investors who were eager to place their confidence in a small but stable and growing economy.
"The broad purpose of NIPA therefore, is to create a healthy business climate in Nevis that will encourage increased investment even while the agency guarantees to protect investors by helping them to understand the relevant laws and policies designed to sustain their interests in investment on Nevis. Hence, the aim of the agency is to both maximise the economic development of Nevis while maintaining high performance standards in the business community," he explained.
The operations of the NIPA are governed by the Nevis Investment Promotion Agency Ordinance 2008.
Under the Caribbean Basin Initiative, besides participating in the financial contribution allocated by Washington to the member countries, the Federation also qualifies for duty-free entry into the United States of more than 95% of its products, not including sugar. Under the Generalized System of Preferences (GSP), manufactured and semi-manufactured goods are also eligible for duty-free access to United States markets. Virtually all locally-produced items and raw materials are eligible for GSP treatment under the list of some 2,800 products eligible for duty-free importation. However, to qualify, the product must have had 35% of its appraised value added in the beneficiary country. This enhances Nevis’s status as a site for conversion of merchandise because of its skillful and well-trained labor force.