Given that the Bahamian economy is far larger than the number of people who are actually in the country on an annual basis through tourism, Bahamians need to own a share of the projects that we know as foreign direct investment, in order to be part of that larger economic pie, Chief Executive Officer of Fidelity Bank Bahamas Gowon Bowe said yesterday.
Bowe, who was speaking at the Rotary Club of West Nassau’s annual general meeting, said Bahamians’ top priority needs to be to saving and investing to build wealth, not to simply work to earn money.
Bowe said Bahamians should be able to be 25 percent shareholders in projects like Baha Mar and Atlantis.
“We have to have a very clear understanding of how do we actually Bahamianize... not through what I’m going to say is eminent domain, and appropriation, meaning government taking over... so I’m not suggesting Venezuela, or Zimbabwe and the like,” said Bowe.
“What I’m saying is all the projects we have coming into the country, we need to have a very clear investment policy that says there is Bahamian, or opportunity for Bahamian participation.
“There is nothing that precludes say a Baha Mar and Atlantis, a Ginn, Four Seasons... all of these projects, that says Bahamians cannot be 25 percent shareholders. Not gifted, but with actual dollars coming out of the pockets of individuals who have money that they have accumulated in order to invest.
“Often when I speak, and I speak to individuals, I say, you know, we go to work to earn money, but our top priority should be to save. Our top priority in saving is to be able to invest. We invest to build wealth. The reason we build wealth is to pass on to future generations, but also to deliver dignity as we age.”
Bowe added that the government should have the same philosophy, by accumulating resources and being investors in those resources.
“How many persons would agree with me that the government is a major investor in nearly all of our hotel developments? They have granted concessions, land and other elements that were not described in the nature of shareholders equity, but without them the capital that those concessions, land contributions, etc. mean to the project, actually say we’re an equity stakeholder.
“And it isn’t that government needs to do that, because we can shift that from government doing that, into the private sector.”
Bowe said there needs to be a plan that outlines how citizens and the government can work together to create a more participatory economy for Bahamians, esepcially given the excess liquidity in the banking system.
“If I say to you, give me $100,000, but I don’t tell you why, are you likely to give it to me? But I can say to you give me $100,000, I believe there’s going to be a 10 percent return... And so we are going to be able, with the pooling of resources, to buy at $1 and sell at $1.30. Then, after we take out our expenses, it’s going to leave ten cents in profit, and that’s going to come back to you.
“And so your $100 in a year’s time will be $110,000. Are you more likely to be interested in investing at that point in time?”
