Bahamas News
BAHAMAS: Kwasi Thompson, Minister of State for Finance New Crowdfunding Regulations
#TheBahamas, July 10, 2021 – Good afternoon. I am pleased to be here today to celebrate the ground-breaking transformation taking place with our financial landscape here in The Bahamas. From the start of our tenure, this administration has made it a priority to uplift Bahamian micro-, small, and medium-sized enterprises, also known as MSMEs. At every step of the way, we have focused on creating new opportunities for growth and support of this critical sector of our economy and society.
Since we launched the Access Accelerator Small Business Development Center in 2018, this Administration has since injected over $60 Million into small businesses across the country in the form of grants and loan-guarantees. By any reasonable metric, this administration has done more to support Bahamian Entrepreneurs and Small Businesses than any administration prior. It is a track record that we are immensely proud of.
Today, we make another revolutionary step in the development of entrepreneurial and small business opportunities in The Bahamas.
The Economic Recovery Committee, established by the Prime Minister, provided a number of recommendations to support more and more Bahamians getting into business so that we can have more dynamic and inclusive economic growth. One of those recommendations was that the government: “Implement legislation to facilitate and support crowd sourcing and junior stock markets to expand access to capital by Bahamian businesses.”
I am pleased to report that the government has heeded that recommendation. As such the Cabinet of The Bahamas recently approved new regulations from the Securities Commission that establishes a legal framework to allow MSMEs to participate in what is commonly referred to as “crowdfunding”. These regulations have been gazetted, released to the public and are now in effect.
Crowdfunding is a modern form of business financing that allows small businesses to raise money from many small investors, typically using online platforms. These reforms represent a gamechanger for business ownership and entrepreneurship in our country.
With these new and innovative crowdfunding regulations, we are furthering the potential of MSMEs to raise more investment money on the private capital market. We are breaking down the walls that were once only able to be traversed by big corporate players. A new wave of possibilities for Bahamian ownership and entrepreneurship is here.
Crowdfunding is a relatively inexpensive way to raise capital for a start-up when compared to traditional means such as bank loans or initial public offerings. Over the last decade or so, crowdfunding has gained popularity in the start-up world. Particularly after the 2008 financial crisis, the cost of borrowing funds from banks became exorbitantly expensive. Pair that with the complexities and costs of debuting a public offering, entrepreneurs were left with little options to source the capital they needed to make their ideas reality.
This is where crowdfunding has been incredibly useful. Entrepreneurs can avoid the expensive and often onerous processes involved with traditional fundraising and secure debt-free capital by selling a stake in their businesses, but yet while maintaining control of their companies. Through the advent of financial technology, or “Fintech”, crowdfunding has become even simpler. Online platforms can be developed to host businesses and investors alike and orchestrate crowdfunding with the click of button.
The new rules are now in effect and they represent a game changer. Eligible entrepreneurs can raise up to $5 million to put towards the development of their start-ups or existing small businesses. And better, the platforms allow them to raise this money from citizens and residents across the country who are interested in investing in promising businesses.
This administration is streamlining the bureaucracy. We are undertaking real structural reform. We are allowing Bahamian entrepreneurs and small businesses to have the same kind of opportunity to raise capital like the big businesses currently do.
For example, interested individuals will not be required to file the typical prospectus with the Commission as would be needed for a public offering. Instead, they would file a streamlined ‘Crowdfund Offering Document’ or “COD” prior to conducting a crowdfund distribution. This is a significantly less expensive process when compared to the minimum $20,000 prospectus. . This is just one way that we are breaking down the barriers for Bahamian entrepreneurs and small businesses to raise capital in The Bahamas.
The new crowdfund rules provide an appropriate balance between access to capital for entrepreneurs and, of course, provisions to ensure protection for potential investors. The rules also seek to minimize systemic and jurisdiction risks.
These innovative regulations have already created space for the establishment of the nation’s first licensed equity crowdfunding platform, which goes by the name Arawak X. I understand as well that The Bahamas International Stock Exchange (or BISX) has also been approved to establish its own similar platform to raise funding for Bahamian Small Businesses. We expect to see even more innovators come forth as a result of the new framework highlighted today.
I thank the Securities Commission, the Economic Recovery Committee, and everyone who worked tirelessly to outline and implement the new crowdfunding rules. I am so excited to see the creative ventures that will grow as a result of this work. Thank you.
By ANDREW COAKLEY
Bahamas Information Services
FREEPORT, Grand Bahama, The Bahamas — Minister for Grand Bahama, the Hon. Ginger Moxey says Grand Bahama is finally on the move, “the environment is shifting, investor confidence continues to grow; buildings are going up and, in some instances,
coming down; events are happening; properties are selling, apartments are rented, and homes being purchased, and Grand Bahamians are returning home!”
Minister Moxey was the guest speaker at the 2024 Freeport Business Expo, which was held at Grand Lucayan Resort on Thursday, May 2, 2024.
The event attracted several local small and medium sized businesses with booths to present their products and services. The event was held in conjunction with the Ministry of Tourism, the Ministry for Grand Bahama, the Grand Bahama Port Authority, and other partners.
The Grand Bahama Minister noted that her government is focused on all opportunities for the growth and development of Grand Bahama. “My ministry continues to partner with the Ministry of Tourism, Investments and Aviation to promote Grand Bahama Island
to the world for tourism and other developments,” said Minister Moxey. “We are in constant dialogue with the cruise lines, the airlines, the tour operators, and other investors and developers, to ensure that the $2B currently in progress, is expedited.
“Tourism is on the move; Grand Bahama is on the move. It is happening, and we want our people to be prepared for it, so much that the Government of The Bahamas — a collaboration between the Ministry for Grand Bahama and the Ministry of Tourism, Investments, and Aviation – has already held two Entrepreneurial Expos for the year. One in West Grand Bahama and the other in Freeport.”
Minister Moxey is convinced that this is the “turn-around” season for the Second City, pointing out that one could feel the change in the air. As such, she said the atmosphere is conducive for collaboration between innovative thinkers, who recognize the potential of Grand Bahama.
In addition to the previous business expos held across the island, last year, the Ministry for Grand Bahama launched the “Empower Grand Bahama Micro-Business Grant Programme” to encourage new and existing entrepreneurs to create immersive experiences, services, and authentic products, all uniquely Bahamian and attractive to visitors.
During that time 149 micro-grants were awarded to Tour & Experience Providers, Creatives/Artisans, and Authentic Food & Beverage Providers. Relief grants were also extended to Straw and Farmer’s Market Vendors, and to Junkanoo groups to help them rebuild after Hurricane Dorian. “And my ministry continues to work closely with the Ministry of Tourism, Investments, and Aviation to promote Grand Bahama as a tourism and investment destination to overseas markets,” said Minister Moxey.
“On the ground, we have cleaned and restored the Bahama Arts & Craft Center and the surrounding property, heritage and cultural sites from east to west through the ‘Beautiful Grand Bahama’ Program, and supported cultural festivals like Pelican Point Coconut Festival, McLean’s Town Conch Cracking, Goombay Summer, and others so that visitors and residents can enjoy events celebrating our Bahamian heritage.”
Minister Moxey revealed the staging of a future expo, called the Grand Expo, set to take place on July 5th, leading up to the country’s Independence. The Expo will be hosted by the Collab Unit of the Ministry of Grand Bahama, under the theme “Well coming home!” It
will feature government agencies, like the Tourism Development Corporation, Bahamas Development Bank, Bahamas Mortgage Corporation, Small Business Development Center, as well as GBPA, DEVCO, Invest Grand Bahama, organizations involved in major developments on the island, real estate companies, land developers, and other organizations to allow individuals to see the vast opportunities.
The initiative is designed to become a catalyst to cause Grand Bahamians to return home. Minister Moxey noted that with a population decline to 47,000 and a capacity to easily service over 250,000 people, it’s time for residents to return home to Grand Bahama.
“There has never been a better time,” she added. “So, this is a clarion call… if it’s been over 20 years, or five years, after Dorian, or even one year… to you the Grand Bahama Diaspora, it’s time to come home!”
PHOTO CAPTIONS
Header: Minister for Grand Bahama, the Hon. Ginger Moxey, who was the guest speaker at the Freeport Business Expo 2024, said that Grand Bahama is on the move and that investor confidence continues to grow. The Business Expo was held at the Grand Lucayan Resort on Thursday, May 2, 2024.
1st insert: Minister for Grand Bahama Ginger Moxey gets the feel of a new model ATV which was on display at the 2024 Freeport Business Expo on Thursday, May 2, 2024 at the Grand Lucayan Resort. President of the Grand Bahama Port Authority, Ian Rolle and other GBPA Executives look on.
2nd insert: President of the Grand Bahama Port Authority, Ian Rolle explains the concept of a new business recently launched in Freeport, during the 2024 Freeport Business Expo at the Grand Lucayan Resort on Thursday, May 2, 2024.
3rd insert: Minister for Grand Bahama Ginger Moxey is fascinated by the concept of one of the new proposed business ventures set to be implemented and opened in Freeport in the near future, during a tour of the businesses presented at the 2024 Freeport Business Expo at the Grand Lucayan Resort on Thursday, May 2, 2024.
4th insert: Glendia Sweeting, Manager of Quality Assurance and Special Projects of the Grand Bahama Port Authority (right) welcomes Minister for Grand Bahama, Ginger Moxey (left) through the display expo in the ballroom of Grand Lucayan Resort following the official opening of the 2024 Freeport Business Expo on Thursday, May 2, 2024.
(BIS photos by Lisa Davis)
Bahamas News
National Mangrove Project Flourishes as Grand Bahama Students Plant at Dover Sound and East Grand Bahama
Freeport, Grand Bahama – May 9, 2023 – Showcasing their commitment and dedication, students from Sir Jack Hayward Senior High, Bishop Michael Eldon, and Lucaya International schools in Grand Bahama have planted hundreds of mangroves as part of the National Mangrove Project. Two plantings were held recently at Dover Sound and East Grand Bahama, two areas where mangrove
forests were devastated during the passage of Hurricane Dorian in 2019.
The National Mangrove Project, a collaborative effort between Waterkeepers Bahamas (WKB), the Forestry Unit, and the 50th Independence Secretariat, continues to underscore the pivotal role of Bahamian students in conservation efforts. Students have embraced their roles as stewards of coastal ecosystems, actively participating in mangrove propagation and outplanting. Their involvement is a source of pride for the nation and a beacon of hope for the future of our coastal ecosystems.
Since its inception in October 2023, the project has been instrumental in empowering schools across The Bahamas to establish mangrove nurseries. Students diligently care for the red mangrove propagules until they are ready for outplanting, amplifying the project’s impact on coastal restoration and environmental education. In April 2024, six months after receiving their kits, Grand Bahama students significantly contributed, furthering the project’s mission.
Andurah Daxon, Waterkeepers Bahamas Programs Coordinator, praised the students’ unwavering dedication: “These students have
shown remarkable commitment and dedication. Their efforts are a testament to the power of youth engagement in environmental conservation. Through hands-on activities like mangrove propagation and planting, they actively contribute to coastal restoration and develop a profound connection to their natural surroundings, paving the way for a more sustainable future.”
The outplanting events in Grand Bahama followed a successful initiative in March when four New Providence schools participated in planting mangroves at Adelaide Pond. Seven schools have completed the process, and eight schools on Andros, The Berry Islands, Bimini, Eleuthera and Exuma are currently growing their propagules for future outplanting.
Ni’kolaus Cartwright, Bishop Michael Eldon’s Student Nursery Manager, said: “Witnessing the growth and development of our mangrove propagules has been truly inspiring. Primary, junior, and senior high school students have poured their hearts and efforts
into caring for these precious seedlings. It’s all a part of our commitment to being an eco-school and maintaining a sense of pride and responsibility for our environment.”
Follow Waterkeepers Bahamas on Facebook to stay updated on the progress of school nurseries and upcoming outplanting events. Join us in celebrating the National Mangrove Project’s success and the dedication of Bahamian students to safeguarding our precious coastal ecosystems. Your support and engagement are crucial to our mission.
Photo Captions:
Header: Students receive instructions from Waterkeepers Bahamas Mangrove Nursery Coordinator Javan Hunt at Dover Sound.
1st insert: Year 10 students from Lucaya International School share a laugh in the mud as they plant mangroves at Dover Sound.
2nd insert: Jack Hayward Senior High students prepare to plant in East Grand Bahama with Waterkeepers Bahamas Program Coordinator Andurah Daxon.
3rd insert: Bishop Michael Eldon Warriors feeling proud after planting mangroves at Dover Sound.
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