01
Accounting, Audit and Tax
There is recognizable accountancy activity to be found in Antigua and Barbuda: local member firms of the international accountancy network of two major global players are settled in Antigua’s capital city St. John’s – PWC and KPMG. The country has seen increasing efforts to enhance accounting and auditing standards.
In 2012 several workshops took place in Antigua aimed at developing accountants’ capacity to provide training in the use of the International Financial Reporting Standards (IFRS). The standards have been adopted by the Institute of Chartered Accountants of the Eastern Caribbean (ICAEC) as local GAAP (Generally Accepted Accounting Principles).
In 2006 the World Bank completed a report on Standards and Codes on the quality of accounting and auditing infrastructures and practices in the Organization of Eastern Caribbean States (OECS).
As a result of this the World Bank approved a grant of US$455,000 to help to address the issues identified, and the ICAEC was given a mandate to deliver three core aims before 2013.
In the World Banks’ Ease of Doing Business Index (2011) Antigua and Barbuda placed 81st in the world (out of 183 countries) for resolving insolvency, in comparison to St Lucia at 58th, Grenada at 119th and Trinidad and Tobago at 133rd.
02
Advertising, Marketing and PR
The advertising industry is in Antigua and Barbuda is mostly limited to local institutions or advertising for tourist purposes. Most of Antigua & Barbuda’s advertising agencies are based in the capital city St. John’s. The small nature of the industry means that many provide integrated advertising, marketing and public relations services. Prominent examples include E K Advertising Limited, Visage Advertising, B B & B Advertising Agency, International Communication, Ripple Marketing Communication and Sun Integrated Advertising and Public Relations.
Sales and marketing teams usually work for large manufacturers and operate in the field of goods importing and exporting, representing a specific brand. Local marketing agencies include Li-Vi Marketing. The PR sector of Antigua & Barbuda as a member of the Commonwealth of Nations plays a big role outside of the country: Tourist Offices around the world, for example in London, UK, are responsible for the development and implementation of marketing, advertising and public relations strategies.
The growing advertising industry is represented by the expansion of the Antigua Advertising Festival, the eighth session of which took place in July 2012, with representatives from Central America, South America and the Caribbean.
03
Agriculture
The main agricultural products are cotton, fruits, vegetables, bananas, coconuts, cucumbers, mangoes, sugarcane and livestock, and is mainly focused on the domestic market.
It is estimated that agriculture provides a source of livelihood, employment and home-based income for about 10,700 persons, including 3,500 crop and livestock farmers.
The current administration has expressed a strong desire to see agriculture regain its rightful place among the productive sectors with its percentage contribution to GDP increasing to between 10.0 and 15.0 percent.
The current administration has expressed a strong desire to see agriculture regain its rightful place among the productive sectors with its percentage contribution to GDP increasing to between 10.0 and 15.0 percent.
Many programs and policies designed to maximize production, reduce the cost of imports, ensure food security for our country and improve the lives of our people have been implemented by the Ministry of Agriculture.
Among these initiatives is a home-based production program which entails the distribution of seeds/ seedlings and fertilizers. The program has benefited approximately 1,500 households.
04
Banking and Financial Services
Antigua and Barbuda’s banking sector is the second largest in the Eastern Caribbean region, accounting for one fifth of the region’s deposits, assets, and loans. The sector is dominated by both domestic and international banks, which are principally headquartered in Canada and the Caribbean.
Historically the presence of strong foreign banks in the Eastern Caribbean Currency Union (ECCU), of which Antigua and Barbuda is a member, has been a powerful source of strength.
However, the industry has been progressively changing with the entry of more assertive Caribbean banks.
In total there are eight commercial banks operating competitively in Antigua and Barbuda: with the domestic examples being the Antigua and Barbuda Investment Bank, Antigua Commercial Bank, Caribbean Union Bank and Eastern Caribbean Amalgamated Bank. Financial institutions are relatively well-developed, and depositors and borrowers have access to a diversified range of financial services.
Between the banking sector and the cooperative credit unions a very high proportion of the population has access to formal financial services. Antigua and Barbuda has traditionally also had an active offshore financial services sector, although this has seen a decline in numbers of banks as a result of considerable pressure since around 2000.
05
Computing and Office Supplies
Per 1,000 Antiguan and Barbudan citizens there are 207 personal computers (2006), 74,2% of the population, however, use the internet (2009).
As the country’s main economic force is tourism, the market for office supplies is relatively high. Most of the multimedia businesses are located in the country’s capital St. Johns.
The fact that the islands are a frequent tourist destination also guarantees a good internet and PC infrastructure throughout the land area. Distribution agents of major software and hardware brands serve the islands from Trinidad (Microsoft), Barbados (IBM) or other Caribbean states in the vicinity.
06
Economic Development Agencies
The Antigua & Barbuda Investment Authority (ABIA) was founded by the government to encourage foreign investors, as well as local ones, to choose the country as a business location and to promote its economic power in general. Special emphasis is placed on investment facilitation, as the ABIA provides aftercare services and monitoring activities for already established investors.
The World Bank’s Doing Business study states that Antigua and Barbuda is a suitable country for foreign investment, as it comes out 29th out of 183 in the category “Protecting Investors”. The economically important Bank of Antigua closed down in 2009, but a variety of financial institutions like the Antigua and Barbuda-based Global Bank of Commerce Ltd.(GBC) and the Antigua Commercial Bank (ACB) continue to assist the country’s economic development.
07
Electricity and power
Electricity generation in Antigua and Barbuda is entirely from fossil fuels. Petroleum is used extensively, mainly for electricity production and transportation.
The privately-run Antigua Power Company Limited (APCL) supplies around 80% of the power generated in Antigua and Barbuda; whilst the Antigua Public Utility Authority (APUA) is responsible for power generation, transmission, and distribution of electricity in Antigua and Barbuda and purchases most of the power from APCL through a power purchase agreement (PPA). The residential sector in the country contributes most to primary energy demand.
08
Forestry
Forestry, together with fisheries and agriculture contributes 3% to the country’s GDP (2008), and cover around 21% of the country (2005).
The economic value of the nation’s forests is confined to providing a resource for charcoal production, wattle harvesting for fish pots and eco-tourism.
The forestry division of the Ministry of Agriculture Lands, Housing & the Environment is the primary government ministry responsible for the sector.
09
Fisheries
Fisheries contribute about half of the GDP from all agricultural sectors, or about 2% of the national GDP (2008).
The fishing industry employs about 1200 fishers in the primary sector, and at least 50 individuals in the secondary sector. Antigua and Barbuda has fairly extensive fishing grounds, with a shelf area of 3568 km2 and a coastline of 260 km. Antigua and Barbuda is a net importer of fish and fishery products, although domestic export of high value species (such as the spiny lobster) is slowly narrowing the trade deficit.
Export is largely to the French overseas departments and regions of Guadeloupe, Martinique and St. Barthelemy. The European Union is also an important export market, especially for the export of live lobster.
Most of the traditional vessels have been replaced by modern pirogues equipped with the latest fishing equipment. The catch profile for marine fishermen is mainly tuna-like fish, queen conch, groupers, grunts, snappers, and sturgeon.
There is currently no commercial exploitation of inland fishery resources, although the traditional harvest of some freshwater and estuarine species on a recreational or subsistence basis does occur. The catch profile of the inland fisheries includes mullets, tarpons and tilapia.
Over several decades there have been a number of failed attempts to conduct aquaculture on Antigua. These have all been land-based operations (as opposed to marine) and most have failed due to high operational costs and limited freshwater supply.
10
Freight, Shipping and Logistics
As an island state, Antigua and Barbuda places emphasis on its shipping trade and possesses one of the most important freight hubs of the Caribbean: St John’s deep water harbor is located in the state’s capital in Antigua and is the main transit point for containerized cargo.
A high number of bulk carriers, cargo vessels, containers and other commercial vessels are located in the islands, with the CIA placing the country 9th in the world in terms of its merchant marine, although the majority of these are foreign-owned.
Two entities run operations at the port – the Antigua Port Authority provides shore-side labor with longshoremen and equipment operators, while local shipping agencies provide the stevedoring onboard the ships and husbandry services for vessels.
There is not an active Shipping Association, but shipping agents meet regularly to discuss port matters affecting them and issues relating to operation at the Port Authority.
The main liner services in operation are CMA CGM lines (represented by Bryson Shipping), Seaboard (represented by Carb Seas), Crowlet (represented by Caribbean Maritime Services)…
11
Health and Medical
The country is divided into six medical districts and a district medical officer is appointed to provide medical services in each district. The provision of primary health care is delivered through health centres that are located within a 3-km radius of every major settlement.
The country’s public health system has a National Drug Formulary that provides a total of 360 different drugs, guaranteeing availability of medication to all people suffering from chronic conditions. In 2010, the three most prominent known causes of death for children below the age of five were birth asphyxia (32%), premature births (16%) and injuries (12%). The Ministry of Health is responsible for the health of the nation and is financed mainly through allocations from the Ministry of Finance.
In 2008, non-communicable diseases (NCDs) accounted for an estimated 80% of all mortality, of which cardiovascular diseases were most prevalent, accounting for 36% of total deaths across all age groups.
A government paper on HIV/AIDS reported that there were 755 people living with HIV in the country in 2013. Antigua and Barbuda is a non-endemic country for malaria. Estimated incidences of tuberculosis (TB) increased dramatically in the period 1990–2013. Estimated mortality (when mortality data excludes cases comorbid with HIV) from TB fluctuated slightly in the period 1998–2013.
12
human Resources
Compared to other Eastern Caribbean States, Antigua & Barbuda has one of the highest literacy rates in the region, with 90% among men and 87% among women (2001). Even though a variety of dialects are spoken, English remains the first language on the island state.
79.7% employees work for 3.6% of employers and 8.3% of the country’s 30,000-person workforce of the country does not have a job (2001).
A work permit is mandatory for expatriates and foreign jobseekers. In particular, the tourism market offers a variety of job positions: The Antigua & Barbuda Tourism Strategic Plan (2005-2009) claims that 40% of the workforce (11,000 workers) are employed in the sector. 56% of the workforce are male, 44% female (2006).
13
Import and Export
Antigua and Barbuda, as islands, are dependent on shipping in vital supplies, and are therefore a net importer of goods and services. It net imports accounted for 11% of GDP (2005).
The average ad valorem tariff for imported goods is 9.7% (2008). The primary export goods include petroleum products, bedding, handicrafts, electronic components, transport equipment, food and live animals; whilst the primary import goods include food and live animals, machinery and transport equipment, manufactures, chemicals and oil.
Its main trading partners are the USA, the UK, Canada, China and other CARICOM countries.
14
Industry and Manufacturing
Antigua and Barbuda’s manufacturing sector is relatively small, contributing just 1.85% towards overall GDP. Light manufacturing sectors such as textiles, distilled liquors and pottery make up the majority of the manufacturing industry in the country.
Antigua and Barbuda has been classified 71 out of 185 countries by the World Bank for ease of doing business, a ranking based on how conducive the regulatory environment is to the opening and operation of a local firm.
One of the major reasons for Antigua and Barbuda’s relatively limited scope of industry is the high cost of labor in the country. It has one of the highest costs of labor in the region which means that many potential manufacturers and investors are attracted by the competitive labor costs of neighboring countries.
However, since the 1980s the government has introduced projects and legislation such as the Caribbean Basin Initiative, CARICOM and the Lome Convention which give local manufacturers access to markets in the Caribbean, Europe and the US.
15
Insurance and Reinsurance
There are around 150 licensed insurance companies (2004) operating on Antigua and Barbuda, eight of which cover life insurance business, while 45 of them are committed to general insurance matters.
The income of the annual insurance premium varies between 4 and 7% of the country’s GDP, depending on the respective jurisdiction. Due to the International Business Corporations Act (1982), offshore banking is allowed, so that foreign insurance corporations also work on the islands. There is a part-funded national insurance system established in Antigua and Barbuda and plans for a National Health Insurance Scheme were made in 2011.
The contribution rate to social security accounts for some 4% of the employee and 5% of the employer. The local Social Security Board is based in St. John’s, Antigua.
16
Legal
The legal system of Antigua and Barbuda is based on English Common Law. The judiciary, consisting of inferior and superior courts, holds the responsibility for decisions over cases. The Eastern Caribbean Supreme Court, with headquarters in St Lucia, is responsible for the administration of justice in its member states, which includes Antigua and Barbuda.
The High Court has 16 judges, two of whom are permanently resident in the country and sit in the court of summary jurisdiction. The magistrates’ court has control over less serious cases. The Court of Appeal is itinerant. The High Court’s jurisdiction includes fundamental rights and freedoms, and constitutional issues. In terms of the judiciary, the final appellate jurisdiction is currently the UK Privy Council; however, there are plans to enable the Caribbean Court of Justice to fulfil this role.
17
Major Corporations
As a country with a tourism-dominated economy, most of the economic power emerges from overseas companies which own numerous hotels on Antigua & Barbuda.
A variety of offshore International Business Companies (IBC) registered in the country also account for its commerce. However, there are local driving economic forces on the islands.
The largest include Cable and Wireless Antigua Ltd. and the 20%-locally-owned Antigua Brewery. The Antigua Public Utilities Authority (APUA) and the Central Marketing Authority are two important state-owned economic institutions.
18
Media and Broadcasting
The only newspapers on the island state are the Antigua Observer and the Daily Observer. The Worker’s Voice is published twice-weekly by the Antigua Labour Party and the Antigua Trades and Labour Union.
The local TV station is called ABS (run by Antigua & Barbuda Broadcasting Services). Cable television is widely available. Commercial radio broadcasters include Observer Radio and ZDK.
Some radio stations are owned by political or religious factions, such as Crusader Radio, which is owned by the United Progressive Party.
19
Mining and Minerals
There is no commercial mining in Antigua and Barbuda. Limestone, clay, barite, volcanic stone and a small amount of salt are quarried on the islands.
Limestone and volcanic stone mining occurs on Antigua and is mainly used for local construction. Only one mining and minerals organization currently exists in the country: GWP Consultants LLP.
20
printing and publishing
The publishing and printing industry of Antigua and Barbuda has had a long tradition and a strong focus on tourism: in 1992, the publishing house West Indies Publishing Ltd. was established specializing in magazines on sailing and tourist-related topics.
The Antiguan remains a popular magazine which is deemed one of the country’s main tourist magazines. Another noteworthy publishing company established in 2006 is Regional Publications Ltd., which produces the bi-monthly business periodical Business Focus Antigua, the local Yellow Pages and the annual tourist magazine Paradise Antigua & Barbuda. Light wave Publications Ltd. publishes the annual Antigua & Barbuda Marine Guide since 1994, targeted at Yacht owners on the islands.
The Antigua Daily Observer remains the only daily published newspaper on the islands in 2012, with the Antigua Sun and CANA Caribbean News no longer in distribution. Various Caribbean educational publishers, including Macmillan Publishers Ltd. and Carlong Publishers Ltd., operate in Antigua and Barbuda.
21
Oil and Gas
Antigua and Barbuda has no native sources of oil or natural gas. The country is largely dependent on imported oil to generate electricity. Oil imports are approximately 4,500 barrels per day.
Almost 100 percent of Antigua and Barbuda’s energy resources are imported in the form of oil products. Antigua and Barbuda spends about 12 percent of its GDP on energy, the highest share of all states in the Eastern Caribbean. The import of oil products consumes about one-third of the country’s foreign exchange.
To offset the rising cost of energy the government announced a pass-through pricing system in August 2009 to raise prices and end a period of subsidized fuel prices. Following this change in policy energy costs for gasoline, diesel and propane have increased significantly and are now more in line with prices in other East Caribbean states. (Government of Antigua & Barbuda, 2010; World Bank, 2010)
Apart from a small number of off-grid solar photovoltaic (PV) systems, electricity is provided by eight power plants using either high or low-speed diesel engines with a net capacity of 83 MW. This means that 1 MW is enough electricity to power an average of 240 to 400 homes. Three stations are operated by the Antigua Public Utilities Authority (APUA) with the other five operated by one Independent Power Producers (IPP), the Antigua Power Company Limited (APCL). (Claude Davis & Associates, 2010) In 2009, base load stood at 42 MW and peak load reached 50 MW.
APCL’s capacity alone reaches 44 MW and it is able to produce electricity significantly cheaper than APUA which helps to explain why the majority of electricity is produced by APCL and subsequently purchased by APUA. The relationship between APUA and APCL has been complicated by lack of payment as a result of which APCL temporarily suspended power generation in October 2012. (APUA, 2012) In 2013 APCL won a six-year legal battle against Antigua’s government and APUA concerning a failed multi-million dollar contract to supply the country with 50.9 MW of electricity.(Lord Neuberger, 2013) In 2009 total net generation was about 326,383 MWh.
The commercial sector consumed 101,818 MWh of electricity accounting for 48 percent of overall consumption, the domestic sector consumed 87,887 MWh representing 40 percent followed by the governmental sector with 6,290 MWh equaling 8 percent.
These figures do not include street lighting. Technical losses during generation, transmission and distribution stood at 24 percent. (Castalia Consulting, 2012; Government of Antigua & Barbuda, 2010)