Private Sector in Dominica

The private sector in Dominica encompasses a broad spectrum of economic activities, from small-scale farming and local retail to high-end tourism and digital services. It is a crucial engine of employment, innovation, and investment, contributing approximately 60–70% of the country’s GDP through commerce, agriculture, services, and tourism. Historically shaped by colonial trade, hurricanes, and global economic shifts, the private sector has adapted through resilience, diversification, and public-private partnerships.

Historical Development of the Private Sector

Dominica’s private enterprise system originates in colonial-era plantations and merchant trading. Following emancipation, small-scale peasant farming took root and laid the foundation for a local business class. During the early 20th century, foreign trading companies such as Geest Industries dominated banana exports. The local private sector was relatively small and informal until the rise of post-independence economic nationalism in the 1970s.

The Dominica Association of Industry and Commerce (DAIC) was established on February 22, 1973, uniting previously fragmented voices into one national representative body. This coincided with a growing movement toward greater self-reliance, local ownership of enterprises, and regulatory modernisation. By the 1980s and 1990s, Dominica pursued market liberalisation, and many foreign-owned firms left, creating space for Dominican-owned businesses in retail, finance, and services.

The turn of the century saw new challenges. WTO trade reforms slashed banana preferences, and Dominica was hit by successive storms, including Hurricane David (1979) and later Tropical Storm Erika (2015) and Hurricane Maria (2017). The business community suffered extensive losses, but recovery efforts led to modernisation, the adoption of business continuity planning, and increased collaboration with government agencies such as the recently formed Climate Resilience Execution Agency for Dominica (CREAD).

Sectoral Landscape

The modern private sector spans nearly every aspect of the economy. While informal businesses make up the majority by number, the contribution from formal companies in construction, tourism, financial services, and wholesale/retail trade is substantial.

Agriculture and Agro-Processing

Dominica’s fertile volcanic soils and abundant rainfall have long supported an agriculturally driven economy. Despite the sector’s decline as a share of GDP, dropping from 15.3% in 2007 to under 10% by 2021, it still employs roughly 22% of the workforce. The private sector is central to commercial farming, fresh produce trade, and agro-processing.

Dominican enterprises such as Parry W Bellot & Co. Ltd., Dominica Herbal Business Association, and Te’Lavi NaTural process coconut oil, fruit juices, sauces, spices, and herbal teas. These products are increasingly geared toward export and local tourism markets. Support from the OECS Competitive Business Unit, DEXIA, and Dominica’s National Export Strategy has helped firms achieve value-added production and international certification.

Post-Maria, donor-funded interventions like the Emergency Agricultural Livelihoods and Climate Resilience Project (EALCRP), backed by the World Bank, assisted over 4,500 farmers with tools, seedlings, and irrigation systems, aiding private agri-enterprise recovery.

Tourism and Hospitality

Tourism is one of Dominica’s fastest-growing private industries. Prior to the COVID-19 pandemic, the sector accounted for over 27% of GDP and employed nearly 3,000 people directly. Dominica brands itself as the “Nature Island of the Caribbean“, favoring eco-tourism and boutique experiences over mass-market cruise tourism.

Major players include Secret Bay, Jungle Bay Resort, Rosalie Bay Eco Resort, and Fort Young Hotel, many of which were rebuilt or upgraded with funds from the Citizenship by Investment (CBI) Programme. Boutique guesthouses, scuba diving outfits, tour operators like ShyGuy’s Dominica Tours, and local crafts vendors form the foundation of a diverse supply chain.

Despite a 54% drop in output during the COVID-19 pandemic, the Ministry of Tourism has emphasised digital marketing, community tourism, and infrastructure upgrades (e.g., Waitukubuli National Trail revitalisation, port enhancements) to rebound.

Construction and Real Estate

The construction sector is among the most dynamic arms of Dominica’s private economy. Growth has been driven by housing development, hotel construction, and climate-resilient infrastructure upgrades post-Maria. Private firms like Regional Contractors Inc., Offshore Civil & Marine Inc., and ADS Construction Inc. are involved in public contracts, residential developments, and commercial spaces.

A key collaboration area has been the Housing Revolution Programme, which combines state funding with private sector contracting to deliver thousands of homes across the island. Construction-related employment remains consistently high, with over 3,200 jobs recorded in the sector as of 2022.

Private developers have also contributed to real estate diversification through commercial plazas, high-end villas, and urban renewal in Roseau and Portsmouth. New legislation such as the Building Regulations 2022 and revisions to the Aliens Landholding Regulation Act (1995) are aimed at increasing accountability and investment confidence.

Retail and Wholesale Trade

Retail remains the most visible expression of the private sector, employing over 4,800 Dominicans, according to the Central Statistical Office. Dominated by local brands such as J. Astaphans & Co. Ltd., Fine Foods Inc., H.H.V Whitchurch & Co. Ltd., and S-Mart, the sector also includes a growing number of micro-vendors, supermarkets, and international franchises.

Recent trends show expansion into online commerce, with businesses adapting through platforms like ShopBox, eZone, Aeropost and social media storefronts. The sector has benefited from improved container port facilities, duty concessions on select goods, and financing via commercial banks and the National Cooperative Credit Union (NCCU).

Associations such as the DAIC and the Dominica Manufacturer’s Association, which advocate for local procurement and competitive business environments, support retail resilience.

Manufacturing and Industry

Although smaller in output, Dominica’s manufacturing sector is strategic. Key areas include beverage bottling, soap making, herbal products, woodwork, and construction materials. Notable manufacturers include Dominica Coconut Products (DCP) and P.H. Williams & Company Ltd.

Government incentives, such as tax holidays, VAT exemptions, and export grants, encourage local production. A renewed push to align with CARICOM Single Market and Economy (CSME) standards is driving packaging, labelling, and phytosanitary compliance among producers.

In 2023, total output from manufacturing was estimated at EC$95 million, or 4.7% of GDP. While the number of factories remains small, natural health and wellness growth has led to new entrants focusing on cocoa, castor oil, and seamoss farming.

Financial Services and Banking

The financial sector is central to the health of private enterprise. With three commercial banks, a dozen credit unions, and multiple insurance companies, the system mobilises savings, provides working capital, and underwrites risk.

Banks like the National Bank of Dominica Ltd. and Republic Bank, offer SME loan products, mortgages, and overdrafts. Meanwhile, the AID Bank supports targeted investments in agriculture, education, and tourism, often at concessionary rates.

Private sector access to finance is improving, though gaps remain. A 2020 ECCB survey noted that only 29% of MSMEs accessed bank loans, with many citing high collateral requirements and lack of business planning. Initiatives such as the National MSME Policy, digital wallet adoption, and credit bureau reforms aim to expand access and reduce risk.

Institutional Support and Strategic Enablers

Dominica’s private sector’s development and sustainability rely on a strong network of institutions. These organizations offer financial services, policy advocacy, technical assistance, and training to help businesses navigate local and global markets.

Dominica Association of Industry and Commerce (DAIC)

Established in 1973, the DAIC represents the interests of the business community. Over five decades, it has led efforts to improve the investment climate, strengthen public-private dialogue, and promote business continuity planning.

DAIC’s current strategic areas include:

• Enhancing private sector resilience post-COVID-19
• Supporting green entrepreneurship and digital transformation
• Leading dialogue on fiscal policy, customs reform, and trade protocols
• Partnering with regional bodies like CARICHAM and OECS Business Council

It organises regular training sessions, town halls, and roundtables with ministries on budget allocations, wage policy, and regulatory frameworks.

Invest Dominica Authority (IDA)

As the government’s main investment facilitation agency, the IDA provides a single-window approach for foreign and local investors. It helps with:

• Business registration and licensing
• Investment incentives under the Fiscal Incentives Act
• Access to industrial land and facilities
• Sector targeting in agro-processing, tourism, ICT, and renewable energy

IDA also hosts investor roadshows and collaborates with the Ministry of Trade and Commerce to align its activities with national development goals.

Dominican Youth Business Trust (DYBT)

The DYBT, under the Ministry of Youth Development, provides training, mentorship, and start-up financing to young entrepreneurs aged 18–35. Since its founding in 2004, it has served over 1,000 youth entrepreneurs.

DYBT programs include:

• Entrepreneurial Development Program (EDP)
• Business Plan Competitions
• Start-Up Seed Capital Access
• Networking events with past beneficiaries and diaspora investors

Notable alumni of DYBT now operate restaurants, cleaning services, design studios, and agribusiness ventures across the island.

National Development Foundation of Dominica (NDFD)

Founded in 1981, the NDFD provides critical financial services to micro and small enterprises, especially in underserved communities. It issues over EC$4 million annually in loans to agriculture, retail, manufacturing, and services businesses.

Key offerings include:

• Working capital and inventory loans
• Financial literacy training
• Recordkeeping and bookkeeping assistance
• Business diagnostics and planning support

Public-Private Partnerships and Business-Friendly Reforms

Since 2018, a series of strategic partnerships has strengthened collaboration between the state and private firms. These partnerships support climate-resilient rebuilding, digital modernisation, and export readiness.

Some examples of active public-private cooperation include:

• Tourism Infrastructure: Eco-resorts like Secret Bay and Jungle Bay were redeveloped using Citizenship by Investment (CBI) financing alongside private construction firms.
• Climate Resilience: The CREAD framework incorporates business continuity planning into private sector risk strategies.
• Digital Economy: Through the Caribbean Digital Transformation Project (CARDTP), SMEs receive assistance with digital tools, POS systems, and e-commerce training.
• Agri-Processing: Facilities for seamoss drying, cocoa fermentation, and coconut oil processing have been funded by the Ministry of Agriculture, EU-BAM, and producer cooperatives.

To improve the business environment, the government has introduced a range of policy reforms:

• Streamlining business registration to 2 days via the Companies and Intellectual Property Office (CIPO)
• Tax filing portals that support e-payment and filing for VAT and PAYE
• National Credit Bureau establishment under ECCB guidance
• New MSME Act to regulate, support, and classify small businesses

Sector Outlook and Strategic Opportunities

Despite the burden of disaster recovery and global shocks, the private sector is positioned for growth, provided it capitalises on innovation, partnerships, and resilience funding.

Challenges that remain:

• High cost of utilities and shipping
• Limited venture capital and angel investment
• Skills mismatch between graduates and job market
• Reliance on imported inputs for manufacturing
• Slow uptake of digital technologies in traditional sectors

Opportunities on the horizon:

• Expansion of agro-processing exports under the National Export Strategy
• Uptake of mobile money and e-wallet systems like MLajan
• Growth of social enterprises, especially those led by youth and women
• New logistics and transhipment possibilities through the International Airport Project
• Rise in global demand for eco-certifications and traceable organic products

Private companies that adapt to evolving consumer preferences, regional trade regulations, and digital channels are expected to lead the next growth phase.

Future Prospects for Private Sector Leadership

The private sector in Dominica is no longer just a collection of small enterprises and traditional industries; it is a dynamic and evolving ecosystem that reflects the nation’s resilience, adaptability, and ambition. From the quiet growth of rural agri-processors to the strategic investments in tourism, ICT, and green innovation, it is clear that local entrepreneurs are not only responding to modern challenges but actively shaping the island’s economic future. With ongoing support from institutional frameworks, targeted reforms, and increased collaboration with government and regional agencies, the foundations are in place for even broader expansion. What remains critical is a consistent investment in skills, infrastructure, and financing tools that match the creativity and persistence already present across the business community.