Over the weekend, it was announced in St Kitts-Nevis by its Prime Minister Dr Terrance Drew that Demerara Distillers Limited (DDL) would be making a substantial investment on the island.
DDL later made a disclosure here which placed the value of the investment at US$10m ($2b). DDL said that the modernisation project is designed to substantially increase its operational footprint in the region.
The new multi-purpose complex, it said, will feature expanded bottling, packaging, and state-of-the-art warehousing capacity, positioning the facility as a pivotal hub to serve St Kitts & Nevis, as well as surrounding island markets across the Eastern Caribbean.
“Beyond enhancing core manufacturing and logistics, the development will feature dedicated retail and commercial spaces, along with an interactive Heritage Centre modelled after DDL’s renowned Heritage Centre at its corporate headquarters in Diamond, Guyana. The St. Kitts Heritage Centre will curate and celebrate the rich history and cultural legacy of rum in the Federation, offering curated tours and immersive experiences for local visitors and international tourists alike”, DDL said.
DDL Executive Chairman Komal Samaroo said that the expansion reflects the company’s commitment to deepening its investments in the region and driving sustainable economic integration within CARICOM.
“Demerara Distillers has been an integral part of the business landscape in St. Kitts and Nevis for 31 years. This … expansion is not merely an investment in infrastructure; it is an investment in our people, our heritage, and the future of regional trade. By expanding our bottling, packaging, and distribution capabilities, we are better positioned to supply regional markets while celebrating the shared historical craftsmanship of Caribbean rum through our new Heritage Centre”.
In a statement on his Facebook page, Dr Drew said: “For three decades, DDL has been part of our economic landscape, and this continued investment represents confidence in our country, confidence in our people, and confidence in the opportunities that lie ahead.
“As a Government, we want investment that does more than expand businesses. We want investment that creates jobs, builds skills, supports local entrepreneurs and suppliers, strengthens manufacturing, expands exports and ensures that the benefits of growth reach households and communities across our Federation.
“This is also Caribbean integration in action, a Guyanese company investing and expanding in St. Kitts and Nevis, creating opportunities that strengthen our shared regional future”.
DDL should be congratulated on this investment and as Dr Drew pointed out it accords with the hopes and aspirations of the founding fathers of regional integration for cross-border investment, deepening of economic ties and expansion of intra-regional trade. It must also not be forgotten that for many years St Kitts provided jobs for Guyanese cane harvesters until the decline of its own industry.
While a significant portion of the investment may be specific to DDL’s historic operations in the twin-island state, it still has to be pondered in Georgetown whether this country lost an opportunity for more investment dollars particularly in the area of growing tourism and job creation.
With the economy deeply entrenched in oil-linked growth as disclosed in the recent IMF Article Four consultation, the dire need to expand the non-oil economy is evident and an important backstop to the threat of the Resource Curse and the Dutch Disease.
While DDL’s Heritage Museum here was a worthy investment there is surely much more that could have been done to transform, for example, one of the moribund sugar estates like Skeldon into a full-scale experience of life as it was on the plantation and which could become an integral part of the tourism offering. For as much as St Kitts can offer in terms of its rum heritage there is even greater potential here.
St Kitts’s securing of this substantial injection may also be a reflection of its investment climate, its tourism readiness and the steady influx of tourists. These are matters that should be pondered here. We should all be proud that DDL has invested in the St Kitts economy but the powers that be here should consider whether they need to work harder to attract more inward investment of this type to help steer the economy away from oil.
Discussion