Belize has a stable currency and growing infrastructure that attracts investment for tourism and business process outsourcing services, agriculture, telecommunications, and energy as potential sectors for foreign investments.
State Owned Enterprises in Belize primarily operate within the utility sector; Belize Water Services Limited serves as the sole provider of water services while Belize Telemedia Limited competes for telecom services market share. Belize qualifies for United States Foreign Development Finance Corporation assistance as well as CARICOM trade preferences.
An Overview of the Belize Thriving Industries
Belize’s economy consists of agriculture, tourism, and business process outsourcing (BPO), such as call centers. Together these sectors employ about half the country’s workforce. Other notable industries are manufacturing, construction, and food services. Belize benefits from low population density and geographical location as well as currency stability, developing infrastructure, and relatively high per capita income which provide investment opportunities; Belize hopes to attract FDI in order to alleviate fiscal pressures and encourage economic diversification.
Belize encourages foreign investment, although certain regulatory restrictions limit growth. Foreign ownership of companies is allowed; however, 51 percent must be owned by a Belizean national or corporation for ownership to count as legally allowed by government law. A recent law permits commercial free zones (CFZs) which offer various tax advantages.
Agriculture production is the core of Belize’s economy. Sugarcane cultivation occurs predominantly in Corozal and Orange Walk districts; part of it is used to make rum. Belize produces corn (maize), beans, citrus fruits and bananas as well as sugarcane for export to Canada duty-free. Sugarcane provides employment while being part of the Caribbean-Canada Trade Agreement enabling certain products from Belize to enter Canadian customs duty-free.
Labor laws in Belize are based on international standards, with mandatory arbitration for disputes between private parties in place to resolve conflicts between private parties. The Supreme Court of Belize can review arbitral decisions and order reinstatement for workers. Furthermore, Belize also maintains social security and health insurance programs and has signed 45 of the International Labour Organization conventions such as Convention 182 that protect children against child labor.
Numerous nongovernmental organizations (NGOs) monitor government activities and issues, especially those pertaining to environmental sustainability and workers’ rights. Citizens Organized for Liberty through Action (COLA) and the National Trade Union Congress of Belize (NTUCB) are two such civil society groups in Belize that play this role.
Belize does not abide by the International Labour Organization’s Minimum Wage Agreement yet offers wage incentives to certain industries. Labor law provisions do not waive to attract or retain investment; additionally, Belize boasts ten trade unions under one umbrella organization called NTUCB.
Key Sectors Driving the Belize Economy
Since the early 1980s, Belize’s service sector has comprised the highest proportion of GDP; surpassing traditional agriculture, forestry and fishing sectors in terms of percentage. Tourism is another key economic driver; millions visit each year due to Belize’s natural beauty, cultural resources, and historical sites attracting millions. Visitors flock here for its beautiful beaches, second longest barrier reef (in terms of length), 127 offshore cayes (islands), abundant wildlife, numerous Mayan ruins as well as other activities available here.
Agriculture, forestry and fishing remain crucial sources of income in Mexico. An estimated one fifth of its land area is dedicated to cultivating agricultural products such as sugarcane, citrus fruit and bananas for export; most operations consist of small family-run milpas with limited mechanization that utilize shifting cultivation practices to maximize yields on nutrient-poor soils.
Mineral production includes clays, limestone, marble and sand for construction use as well as some placer mining of gold. Unfortunately, Belize still relies heavily on imports for mineral fuels and fossil fuels as well as electricity despite having numerous natural resources available to them. The Government controls most SOEs within the utility sector including Belize Water Services Limited – the sole provider of water services; Belize Electricity Limited (sole distributor of electricity); and Belize Telemedia Limited – the largest telecom provider.
In 2021, following the relaxing of COVID-19 restrictions, the economy rebounded rapidly; services-related industries, such as wholesale and retail trade, experienced significant gains; stay-over tourist arrivals increased 59 percent during July and August compared to reduced visitor numbers from June through September.
Investors generally find the investment climate in Belize favorable, although there is not a broad awareness of responsible business conduct in the country. Some companies do participate in corporate social responsibility initiatives including sponsoring educational scholarships and sporting events while the government agency BELTRAIDE promotes civic responsibility through public outreach programs.
A Closer Look at the Dominant Industries
Belize is known for its subtropical climate, idyllic cayes (islands), breathtaking barrier reef, an abundance of jungle flora and fauna, Mayan ruins and friendly people – which all combine to form a robust tourism and ecotourism industry. Tourism related expenditures account for about 18% of Belize’s economy.
Belize’s natural beauty and cultural diversity draw visitors from across North America, Europe, South America and the rest of the Caribbean region. Belize recognizes tourism’s significance to its economy and is taking steps to expand it through strategic investments in infrastructure and amenities.
The manufacturing sector makes up roughly one-eighth of Belize’s Gross National Product. When logging became less lucrative during the 20th century, a new industrial development strategy focused on export-oriented industrial growth. Fertilizer and animal feed plants opened for business as did sawmills with wire and nail factories serving construction and furniture manufacturing. Furthermore, several beer, rum, and soft-drink production facilities as well as textile and footwear factories exist throughout Belize.
Foreign investors are welcome in Belize with no visa, residency or work permit requirements for investing. Local regulations do require companies to pay property taxes, register for trade licenses, and open bank accounts; additionally, local agencies like BELTRAIDE offer continuous training courses on soft skills necessary for operating effectively in Belize’s labor market.
Belize’s economy is highly vulnerable to fluctuating commodity prices and preferential trading agreements with major partners, especially the US (cane sugar) and UK (bananas). At present, Belize maintains an independent judiciary, stable currency, long-established democratic tradition, and bilingual workforce.
Belize’s legal system is founded on English common law and supplemented by local legislation and an ethical code of ethics. Foreign ownership is unrestricted, contracts are legally enforceable, and an active civil society monitors government activities within their fields of expertise.
Diverse Industries Fueling Development
Belize’s economy relies heavily on tourism and agricultural exports, but many other industries are growing and creating job opportunities. Some of the more dynamic ones include renewable energy, business processing outsourcing (BPO), agriculture, telecommunications, and manufacturing. Belize offers investors competitive per capita GDP rates as well as currency stability that offer excellent investment prospects within tourism services outsourcing (such as call centers) or agriculture industries.
Belize’s economy was traditionally dependent on forestry until late in the 20th century when European demand for logwood decreased due to man-made dyes. Logging was then replaced by the production of agricultural products like bananas and citrus fruits – although their yield is subject to fluctuations due to foreign market demands as well as climate changes that impact productivity on such a small land mass.
Due to Belize’s limited domestic market, its government actively encourages foreign investment as a way of relieving fiscal pressure and stimulating economic growth in specific industrial areas. They have even established BELTRAIDE as a one-stop center to facilitate investments and trade activities; foreign investors can take advantage of its high per capita GDP, stable currency environment and developing infrastructure when considering investment opportunities there.
Belize is host to various multinational companies operating internationally, such as BHP Billiton and Chevron – two major employers – while several private sector businesses specialize in oil refining, petrochemical production and agricultural production.
Belize City serves as the major port for seaborne trade between Central America and the US, while Commerce Bight for sugar imports and Big Creek for citrus exports provide alternative ports in the country. Furthermore, an international airport provides scheduled service between Belize City and other Caribbean nations like Mexico or Guatemala.
The government of Belize has privatized various public assets, such as the port authority, airport and some telecom and electricity facilities. While this has helped promote market competition more efficiently, it also transfers control of these vital public resources to private investors with differing objectives from those of the state. Nongovernmental organizations (NGOs) are permitted to operate within its borders while two groups monitor government activity: Citizens Organized for Liberty through Action and National Trade Union Congress of Belize.
