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News from October 1, 2025

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Investors facing numerous challenges, says US State Dept.
Technology

Investors facing numerous challenges, says US State Dept.

The Bahamas remains a top nation for US foreign direct investment (FDI), however, there are challenges for investors when attempting to conduct business, including approval delays and a lack of transparent investment procedures, according to the US Department of State’s recently released 2025 Bahamas Investment Climate Statement. The statement further explains that The Bahamas lags behind other countries when it comes to starting a business, registering property, acquiring construction permits, accessing credit, and resolving property disputes. “Significant delays in the approvals process have occurred, including cases where the government failed to respond to investment applications,” the statement says. It adds: “The National Economic Council (NEC) must grant special approval for foreign investment projects valued at $10 million or more, those with national security implications, or those that require environmental and economic impact assessments. The NEC is comprised of government ministers, including the prime minister in his dual role as the minister of finance; and the deputy prime minister as the minister responsible for investments. The approval process generally requires review by multiple government agencies and a BIA [Bahamas Investment Authority] recommendation prior to NEC consideration. Bureaucratic impediments are not limited to the NEC approvals process.” The US Department of State said while the government has promoted plans to launch Bahamas Invest as an “independent agency intended to fast-track FDI, streamline approvals, and increase transparency”, there has been “no visible progress on this initiative, and it remains unclear whether it remains a government priority”. “Currently, the BIA continues its oversight of all FDI-related activities,” the statement said. It explains that much of the FDI in The Bahamas comes in the form of tourism-focused development. “Investors meeting specific criteria can access investment incentives, including customs duty exemptions on construction material for projects such as timeshares and hotels; stamp duty [exemptions], and excise and property tax [exemptions],” the statement says. It adds that despite those incentives, high labor costs, red tape in the investment approval process, and inconsistent public contract tendering remain challenges. “To improve the investment environment, the government has introduced reforms, such as the Public Procurement Act and eProcurement platform,” the statement said. “However, a lack of transparent investment procedures and legislation continues to create challenges for investors.”

Chester Robards Senior Business Reporter
US Embassy: Problems obtaining clear title to property in The Bahamas
Technology

US Embassy: Problems obtaining clear title to property in The Bahamas

The US Embassy in Nassau has received complaints about problems obtaining clear title to property in The Bahamas, according to the US Department of State’s Bahamas Investment Climate Statement, which added that investors in The Bahamas have also complained about “lengthy and difficult” real estate processes. “US Embassy Nassau has received reports of problems obtaining clear title to property, often delaying real estate transaction closings,” the statement says. “This can be due to the seller having no legal right to convey, or because separate claims to ownership arose after a purchase was made.” The statement noted that governments have committed to allaying these difficulties through the development of a digital land registry. It explains that this new registry would “improve market transparency, facilitate the ease of doing business, and ensure households and businesses have secure titles”. It laments, though, that the government does not publish the number of cases where property is without a clear title. “Despite the high number of second-home owners in The Bahamas, local and international investors describe the process of registering property as lengthy and difficult,” the statement says. “Land ownership in The Bahamas is based on English law and can include Crown land, commonage land, and generational land. The investor’s secured interest in mobile and immobile property is recognized and enforced by law. Mortgages in real property and legal rights in personal property are recorded with the Registrar General of The Bahamas.” The US Department of State explains in its statement that unoccupied property cannot revert to other owners, like squatters, which it contends has led to a high incidence of unoccupied, derelict, and partially constructed residences. It also notes that the city of Nassau currently suffers from the existence of numerous abandoned buildings. “In 2023, the government issued demolition orders for nine derelict buildings in the downtown area, and as of April 2025, US Embassy Nassau is aware of six of nine being demolished,” the statement notes. “Legislation to support the redevelopment and management of Downtown Nassau is being drafted.”

Chester Robards Senior Business Reporter,Torrell Glinton
Small contractor outlines difficulties accessing funding to expand
Technology

Small contractor outlines difficulties accessing funding to expand

A local plumbing contractor said he wants to expand to a storefront operation, but said banks are not willing to lend him the money to take his growing business to the next level. Hatchelah Robinson Jr., owner of Lil H Plumbing, told Guardian Business that being a small contractor has its challenges, and access to funding is one of them. The second challenge is ensuring that larger contractors don’t skip out on paying him for his services. Shady contractors are a “contagious virus”, Robinson exclaimed, as his entire operation can be disrupted when he is depending on a check, and it doesn’t come through on time. “With greater access to funding you get to absorb not getting paid on time, it would be a lot easier to manage. But after you complete a job, and you’re waiting on the funding from that job, sometimes it’s a long runaround.” Robinson, who has grown Lil H Plumbing from a one-man operation in 2014 to now hiring four people full-time, said that working from his home is not sustainable any longer, especially when in his line of work as a subcontractor for larger companies, getting paid on time is a challenge. “It’s a struggle. The biggest thing is actually getting the money on time. I have three vans now, a team of about three or four people with me, and it’s about trying to make sure they’re paid... When they’re paid, I’m happy.” Robinson continued: “I want to look into expanding and getting into selling plumbing materials as well. So, I want to set up a storefront, that’s the next step.” Robinson said despite being a customer of his bank for nearly 15 years, obtaining a loan as a budding entrepreneur has been difficult. “I’ve been banking with my bank from the inception of my business, they’ve seen all of my records, and they see the money going into the account and growing, and they are telling me I need to come up with more money to get money.” He continued: “As a young person, they tend to give the older people the opportunity before you. So it’s a step-by-step process, just trying to meet new clients and then hoping that the word of mouth keeps spreading. I’ve been doing it on the side since I was working at Atlantis, so basically, I’ve been in the business part-time, for over 10 years. And it took about five just to get that friction to where I was able to take it further and make the jump into entrepreneurship.

Youri Kemp Senior Business Reporter
Central Bank: Number of non-performing loans up in August
Technology

Central Bank: Number of non-performing loans up in August

The Central Bank of The Bahamas said in its Monthly Economic and Financial Developments (MEFD) report for August 2025 that the number of non-performing loans has increased. The MEFD report said: “Commercial banks’ credit quality indicators, although showing annual improvements, deteriorated slightly in the month of August, owing primarily to a rise in non-performing loans. Specifically, total private sector arrears grew by $2.2 million (0.5 percent) to $459.5 million, while the attendant ratio stabilized at 7.7 percent. “A disaggregation by the average age of delinquency revealed that nonperforming loans (NPLs) — arrears in excess of 90 days and on which banks have stopped accruing interest — increased by $3.0 million (1.0 percent) to $317.7 million, as the relevant ratio held steady at 5.3 percent. “Further, the NPL ratio for commercial loans rose by 43 basis points to 3.5 percent. However, the ratios for mortgages and consumer loans fell by 10 basis points to 7.5 percent, and by five basis points to 3.9 percent, respectively. Conversely, short-term arrears (31-90 days) declined by $0.7 million (0.5 percent) to $141.8 million, resulting in the attendant ratio narrowing by three basis points to 2.4 percent. “An analysis by loan type indicated that mortgage delinquencies grew by $3.8 million (1.4 percent) to $284.4 million, underpinned by a $6.2 million (7.0 percent) growth in short-term arrears, which overshadowed the $2.4 million (1.2 percent) decrease in non-accrual loans. Similarly, consumer loan arrears increased by $0.6 million (0.5 percent) to $128.2 million, attributed to a $1.1 million (2.7 percent) uptick in the short-term segment, which negated the $0.6 million (0.7 percent) reduction in the long-term component. “In contrast, commercial delinquencies contracted by $2.2 million (4.4 percent) to $46.9 million, as the $8.1 million (72.3 percent) decline in short-term arrears outstripped the $5.9 million (15.6 percent) increase in the non-performing category. “Meanwhile, banks increased their total provisions for credit losses by $0.8 million (0.3 percent) to $272.4 million in August. However, the ratio of total provisions to total arrears declined by 11 basis points to 59.3 percent, while the ratio of total provisions to non-performing loans fell by 55 basis points to 85.7 percent. During the review month, banks wrote off an estimated $5.2 million in overdue loans, and recovered approximately $4.2 million.” The MEFD report also said: “In interest rate developments, the weighted average loan rate fell by 31 basis points to 11.37 percent. Conversely, the weighted average deposit rate rose by 25 basis points to 0.68 percent. The highest deposit rate offered was 3.75 percent, on fixed balances over 12 months. “Total Bahamian dollar deposits rose by $14.7 million in August, a turnaround from a $27.4 million contraction in the same period of the previous year. Leading this outturn, demand deposits advanced by $31.7 million, a switch from a reduction of a similar magnitude a year earlier. However, savings deposits growth tapered to $4.5 million from $15.3 million; and the decline in fixed deposits extended to $21.5 million, from $11.4 million in the year prior. Meanwhile, residents’ foreign currency deposits increased by $27.0 million, a shift from a $26.9 million contraction in 2024.”

Youri Kemp Senior Business Reporter
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