Author: OBG Admin

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Unlocking potential: The country is looking to public-private partnerships to address its infrastructure deficit

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While public-private partnerships (PPPs) have been used to finance projects in Trinidad and Tobago since the 1990s, the model formally gained institutional backing in 2011 with the creation of a specific policy unit, known as the PPP Unit, which operates within the Investments Division of the Ministry of Finance. Despite this, unlike other Caribbean countries such as Jamaica, T&T’s PPP framework is relatively underdeveloped and had been largely limited to utilities projects. Although the model is becoming more widespread across a range of sectors, it

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Deep impact: Pubic officials and stakeholders evaluate advantages and concerns regarding a large influx of refugees

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As the political, economic and migration crisis rolls on in Venezuela, a significant number of refugees continue to make their way to Trinidad and Tobago. This had led to concerns over the possible economic consequences of the recent influx. In June 2019 the UN estimated that 40,000 people had arrived to T&T. As migrants now make up 2.9% of T&T’s population – the highest rate in the region, above the 2.65% recorded in Colombia – there are particular concerns over the impact immigration could have

George Richani-CEO-Al Ahli Bank of Kuwait

Build the base: The new tax authority has proposed to streamline operations, boost taxpayer compliance and raise government revenue

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Following a deep recession and calls both domestically and internationally to boost financial transparency and broaden its tax base, Trinidad and Tobago has moved forward with the establishment of the T&T Revenue Authority (TTRA). While policymakers have long worked to streamline tax collection, the TTRA is the most important step taken by the government to date aimed at closing the gap between potential and real revenue. Existing System The current system has been characterised by weaknesses in laws, regulations and human resource management. The Caribbean

Éric N’guessan-Managing Partner-EY Côte d’Ivoire

Digital disruptors: Financial technology looks to upend the banking sector as major players roll out digital and cashless solutions

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The financial services industry in Trinidad and Tobago is one of the most developed in the Caribbean; however, the country still falls behind other emerging markets in its approach to online banking and digital payments. In 2020 customers continue to contact their banks by telephone to perform routine services, such as balance inquiries. As such, there is vast scope for digital reform and an opportunity for financial technology (fintech) companies to level the playing field by encouraging the development of digital financial services. New Deals

Sheikh Ahmad Duaij Jaber Al Sabah-Chairman-Commercial Bank of Kuwait

Balancing act: Commodities investment is important for portfolio diversification

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Despite being a commodity-based economy – indeed, 36.1% of Trinidad and Tobago’s GDP is from the energy sector – local capital market investors have traditionally shied away from commodities investing. The asset class worldwide has underperformed compared to traditional investment vehicles such as stocks and bonds. The Bloomberg Commodities Index had an average annualised return of -5.7% from 2014 to 2019, while the S&P 500 Index and Bloomberg-Barclays US Aggregate Bond Index had annualised returns of 11. (https://otbsd.com/) 4% and 3.1%, respectively, over the same period. Sound Investment Despite the relatively poor performance of commodities in recent years, many global asset managers still allocate a

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

For the long haul: Government bond issuance dominates the debt market

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While Trinidad and Tobago’s primary bond market has seen 59 issuances since 2013, fewer than 15% were private corporate issuances. The government, either directly or through state-owned enterprises, has maintained a dominating presence in the debt market, which it taps to borrow the funds needed for infrastructure development projects and recurrent expenditures such as salary payments. Diversification Dilemma The fact that most of the debt is issued by the government poses a dilemma for portfolio managers seeking to diversify pension plans and mutual funds. The Insurance Act requires local funds and pension plans to invest at least 80% of their assets under management in domestic

Nhon Luc Ly-CEO-AIA Myanmar; Son Nguyen-Country President-Chubb Life Insurance Myanmar; Daw Zarchi Tin-CEO

Generating returns: Demand for wealth management increases following the energy boom and capital market development

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Wealth management divisions have become an integral part of business models for the majority of commercial banks and non-bank financial institutions in Trinidad and Tobago. Initially created to cater to the needs of institutional investors – particularly those of employee benefit plans – wealth management services have now expanded to include high-networth individuals. T&T’s economy grew at an average rate of 7.5% over the 10-year period leading to 2008, an expansion bolstered by a flourishing energy sector. This growth resulted in significant wealth accumulation and

Daniel Asare-Kyei-CEO-Esoko; Curtis Vanderpuije-CEO-ExpressPay; and Daniel Marfo-General Manager-Zipline Ghana

Model market: Lessons to learn from successful neighbouring stock exchanges

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The Trinidad and Tobago Stock Exchange (TTSE) is the largest and among the most important stock markets in the Caribbean. However, it was out-performed by the Jamaica Stock Exchange (JSE), whose impressive headline growth since 2015 has led some in T&T to draw lessons from the smaller but more dynamic bourse. “We should look to the expansion in Jamaica’s capital markets as an example in the Caribbean,” Hadyn Gittens, CEO of the T&T Securities and Exchange Commission, told OBG, noting that the JSE has over 40 companies listed on the junior market alone. Jamaica’s Growth The JSE was founded in 1968, but it did not

Daniel Asare-Kyei-CEO-Esoko; Curtis Vanderpuije-CEO-ExpressPay; and Daniel Marfo-General Manager-Zipline Ghana

Joint effort: A regional body facilitates integration across a range of sectors

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In order to fulfil the aims of the CARICOM Single Market and Economy (CSME) and the wider CARICOM policy of further economic integration, officials in the Caribbean have identified a number of key sectors that form the backbone of regional convergence, from financial services to transport and education. In 2006 a revised Treaty of Chaguaramas came into force that turned CARICOM – formerly a common market – into a single market based on the free movement of goods, services, capital and labour. The organisation’s Council for Trade and Economic Development is taking the lead in implementing the single market. Financial Services Jamaica has been a

George Richani-CEO-Al Ahli Bank of Kuwait

Tapped for growth: Oil discoveries in neighbouring Guyana present regional countries with opportunities in value-added services

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The IMF estimates that Guyana will be the fastest-growing economy in the world in 2020, with projected growth of 84% for 2020 – up from 4.4% in 2019. The jump in growth is attributed to the fact it began oil production in December 2019. Guyana is looking to tap its natural resources, as it has the highest amount of oil reserves per capita – while Saudi Arabia has 1900 barrels per person, Guyana has 3900 barrels per person. Observers speculate that it could have more,