IM Yearbook 2020/21

● Codrington
Although initially it was not unanimously supported, the
CIP is today widely seen as beneficial to the country. After the
financial crisis, it helped to restore stability during the economic
slowdown, says Gaston Browne, Antigua and Barbuda’s Prime
Minister who promoted the CIP’s introduction. He adds that
it was also of great importance when Hurricane Irma hit the
country in 2017. The impact on Barbuda was particularly severe.
More than 80% of Barbuda’s buildings were destroyed or
severely damaged, and the island was deemed uninhabitable.
CIP funds were used to re-build critical infrastructure.
Funding in Times of Crisis
BARBUDA
Capital: St. John on Antigua
Official Language: English
Size: 170miles 2 (440km 2 )
Population (2017 estimate): 94,731
Currency: East Caribbean Dollar
Head of State: HM Queen Elizabeth II
Governor-General: Sir Rodney Williams
Head of Government:
Prime Minister Gaston Browne (2014)
Form of Government:
Constitutional Monarchy
National Elections:
last March 2018, next 2022
Literacy rate: 99%
● Saint John’s
ANTIGUA
Since 2013, the Citizenship by Investment Unit (CIU) has
received more than 2,200 applications from more than 80
countries; five percent of applications have been rejected.
It accounts for around 15% of government revenue and
remains a vital source of funding in times of crisis. When tourism
came to a standstill as a result of Covid-19, the CIP “helped us
significantly to fulfil our socio-economic obligations, otherwise
we may have defaulted,” admits Prime Minister Browne.
Besides tourism, construction plays a major role in
Barbuda’s economic mix, accounting for 15% of GDP. Thus
far, the sector is ploughing ahead and has not been affected
particularly by the pandemic. Large infrastructure projects
– the construction of a cargo port facility and a new cruise
terminal – helped to keep people in employment and somewhat
cushion the Covid-19 impact. Nonetheless, the island’s GDP
is expected to contract by around 10% in 2020, and there is
widespread agreement that the CIP is today more important
than ever for the economic development of the country.
Pandemic Management
Antigua and Barbuda has won praise for its effective response to
the coronavirus pandemic. Until the end of August, Antigua and
Barbuda confirmed a total of 94 cases and three deaths. When
it comes to global pandemic management, it certainly helps
being an island nation in the middle of an ocean. But Antigua
and Barbuda’s success in fighting the virus is so much more than
good geographic fortune. “Our health infrastructure has been so
robust that we have been able to control domestic spread,” says
the Prime Minister, although the country was one of the first in the
Caribbean to re-open its borders, accepting flights from the United
States, Europe and Canada. This was a conscious decision, says
the Prime Minister pointing out that social distancing, contract
tracing, as well as the requirement for all arriving travellers to
produce a negative Covid-19 test were just some of the measures
that the country introduced to prevent a public health crisis.
Equal emphasis has been placed on expanding healthcare
infrastructure. The number of hospital beds per 1,000
population has been increased from two to three during
the pandemic by establishing mini-hospitals in addition to
the main hospital in St. John. An Infectious Disease Centre
has also been established. “We now have in the region of
50 ventilators, which we believe is enough to treat people
who become critically ill from Covid-19,” says Browne.
Prior to Covid-19, healthcare was already one of
government’s top priorities. A bespoke kidney transplant
facility and a new cardiac unit are currently being built, while
the country also has a hospital offering stem cell therapy,
as well as a cancer centre. Given this recent investment,
Browne thinks “Antigua and Barbuda today has one of the
most modern healthcare facilities in the Caribbean”.
Rise in Interest
The island’s effective response
to the pandemic has been
recognised by high-net-worth
individuals from around the
world. Charmaine Donovan,
CEO of the Citizenship by
Investment Unit, says that her
unit has seen a surge in the
number of inquiries from persons
seeking safer, less densely
populated options, and countries
which have demonstrated a
greater ability to manage the
pandemic. “Applications from Charmaine Donovan
the traditional jurisdictions
have been consistent, however, particularly for 2020, we
have noticed an increase in applications from Southwest
Asia, Africa and the Middle East,” says Donovan.
In the second quarter of 2020, the CIU experienced a
slight dip in applications as a result of the pandemic. Potential
applicants found it difficult to access agencies and authorities
which generate original documents that are critical to the due
diligence process. However, according to Donovan, interest and
inquiries have seen a sharp increase since the global lockdown.
Investment Migration Yearbook 2O2O/2O21 37