Region urged to harness Diaspora investment

THE Caribbean is being encouraged to harness the support of the Diaspora as it taps into the estimated US$4-billion net worth of this community to drive greater investments across territories.

Referencing the Caribbean Diaspora as a model group made up of highly educated and affluent members of society, Kerry Spencer Young, director of Dequity Capital Management Limited said that while there has been significant involvement from this group over the years, there is even more room for engaging them on a number of investment opportunities.

“It is estimated that about 80 per cent of the Diaspora has been giving back to the region, most of which comes through remittances. A further breakdown, however, shows that only 21 per cent of them are actually investing in the region, whether through the stock market or otherwise, so we still have a significant gap there,” she said while speaking in a panel discussion at the Jamaica Stock Exchange (JSE) conference this week.

“We have started some good groundwork with the consulate generals, ambassadors and so on, but where we want to position ourselves as Dequity is to fill that gap,” she added.

Dequity Capital Management is a private investment company that acquires minority positions in targeted companies and small businesses, with a view to grow- ing them to new levels. Some of its portfolio companies include Johnston Development, Dolla Financial and Royal Medical.

Spencer Young, in referring studies by local entities such as the Caribbean Policy Research Institute (CAPRI), noted statistics which show about 40 per cent of the overseas community becoming interested in investing in new businesses across the region.

“One of the things they have, however, indicated is that the missing pillar is still communication, in terms of