The Caribbean is 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, 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 break down, however, shows that only 21 per cent of them are actually investing in 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 growing 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 what is available for them to invest in and the deals available. So how we are positioning as Dequity, going into the private equity space, is to really fill that gap while engaging the Diaspora more strategically, educating them about the opportunities available, and providing them with options that they can also invest in to help in building the Caribbean region.

“On the reverse, we also look at their businesses to see how we can inject capital to help them grow as well. We have formed a separate entity, Dequity Capital Management USA, and we have also structured a private fund of which are currently on the last leg of registering in Cayman. The focus of this company and fund will be solely on [developing] Diaspora opportunities,” she said.

Agreeing that the Diaspora stands ready to make greater investments, Alison Roach Wilson, consul general for Jamaica in New York, said that several members of her community continue to remain on the lookout for emerging opportunities in a number of areas locally, particularly real estate. Now finalising plans to launch a real estate investment forum in May, Roach Wilson said the main focus of the event will be geared towards educating diasporians in New York about the real estate market in Jamaica and to get them investing.

“The Jamaican Diaspora in the US, particularly those in the states I am responsible for, are flushed with cash. As consul general, I have also been making the rounds in connecting with several of them to get the investments going,” she stated.

She further pointed to an alumni association as another area rich in social capital that will be targeted for a long-term partnership with the local social stock exchange in the coming months.

Working with local bodies such as Jamaica Promotions Corporation and the JSE on a series of roadshows and sensitisation sessions, consul general in Florida, Oliver Mair, said that at the diplomatic level they continue to work with members to cater to the varied needs.

“Sometimes we have large investors who require a little more hand-holding, so there are times we will fly down with them. We love to see the investments and we are a part of sharing the good news of what’s taking place across islands so that the diasporians can see what is taking place and will want to invest,” Mair said.

— Kellaray Miles