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Bahamas Prime Minister banking on 50% Food Tax reduction, Affordable Housing and Clean Energy to drive down Cost of Living 

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Deandrea Hamilton

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The Bahamas, January 10, 2025 – Imported and store bought food will, by April 1, be less expensive in The Bahamas due to a hefty cut in Value Added Tax (VAT) announced by Philip Davis, Bahamas Prime Minister in a New Year’s national address on January 8.

“I am pleased to announce a 50% reduction in the VAT rate on all food sold in food stores.  Beginning April 1st, the rate will be cut in half from 10% to 5%.  This new 5% rate will apply to all food in the food stores, including fresh fruits and vegetables, baby food, lunch snacks and frozen foods.  However, it will not apply to prepared foods in the deli.

This rate reduction will also apply to the importation of all items previously mentioned.   The effective date is April 1st in order to give merchants and foodstores time to make the necessary adjustments.”

For many families, the cost of food has been nothing short of shocking and the issue became a game-changing factor in deciding the recent US elections.

Bahamians have hinted at the same concerns at home.

In November 2023, former Prime Minister, Hubert Minnis and Anglican Archbishop Laish Boyd were among those calling for a decrease in VAT on bread basket items.

“The cuts in certain food duties in the budget for this fiscal year are not enough.  We in the Opposition have also called numerous times for the government to remove its 10 percent VAT on bread basket items and medicines that it imposed unnecessarily,” said Minnis.

Davis says that and more is on the way.

“VAT is not the cause of the high price of food, but for those with the tightest disposable income, reducing VAT by 50% will make a difference.

This reduction will not impact our fiscal targets for this year.”

Last year, the US government estimated that U.S. food prices would increase 2.3 percent and by year end, the Food and Agriculture Organization, FAO explained that just about all food prices hit staggering levels, though some decreases were forecast.

Rice, Vegetable Oil, Meat and Dairy all increased in 2024, said the FAO, which also informed in a December 2024 report that its FFPI (FAO Food Price Index) spiked at the end of the year to 6.7% above 2023.

Additionally, the reports explained: “FAO All Rice Price Index: Rose 0.8% from the 2023 average, which is a 16-year high. FAO Vegetable Oil Price Index: Averaged 9.4% higher than 2023 due to tightening global supplies. FAO Meat Price Index: Was 2.7% above the 2023 average, with higher prices for bovine, ovine, and poultry meats. FAO Dairy Price Index: Averaged 4.7% higher than 2023, due mainly to surging butter prices.”

Bahamians felt it too and many rejected information from The Bahamas National Statistical Institute (BNSI) which conveyed the consumer price index (CPI) was down in the first quarter of last year, that The Bahamas saw an increase during summer months after which it held relatively steady, due to the slight bump, in September.

“This September 2024 remained constant with August, and followed a 0.1% increase between the months of July 2024 and August 2024.  On a month to month basis, the major increases, by Group, included Furnishing and Household Equipment and routine household maintenance 3.7%, Restaurant & Hotels 0.6% along with Miscellaneous Goods and Services 0.5%. Meanwhile, the major decreases by group consisted of Food and Non-alcoholic 1.6 %, Health 0.9%, along with Education 0.4%,” informed a report from BNSI published in September 2024.

The Prime Minister acknowledged the high cost of living, which goes well beyond how expensive groceries have become.  A housing crisis compounded by surging electricity bills become significant factors in the quality of life Bahamians were able to afford in 2024.

“The high cost of energy runs right throughout the economy.  Important parts of our outdated electricity grid date back to before Independence.  Some of them are so old that no one makes the parts to fix them anymore.  But we can’t build a successful economy – and Bahamians can’t build their own success stories — if we continue to be burdened by an old, outdated, system, dependent on heavy and diesel fuels.

An unreliable system, and above all, an expensive system. You simply can’t build a 21st Century economy with 20th century infrastructure. So, we’re reforming, upgrading, modernizing.  Solar panels are going to go up, and prices are going to come down. We are partnering with Bahamian companies across our Family Islands, to meet the unique needs of each. We are going to have New Providence’s first utility-scale solar field.

We’re integrating LNG.” he said.

A special initiative was launched by Bahamas Power and Light, BPL over the holiday season.  An attempt to get consumers to pay their overdue bills and see their electricity restored, when they made that effort.

Residents though are still forced to make tough choices as apartment units and real estate buys are priced too high and rent is chomping away at a large portion of salaries.

“The huge increase in costs of housing has also helped to drive up the cost of living.  We’re building affordable housing, and we are piloting a Rent-to-Own programme.  But while these are important, they aren’t reaching enough Bahamians yet.  So even as we work to expand those efforts, we’re exploring ways to incentivize the private sector to build more. Increasing the supply of housing is the best way to see reductions in the cost of housing. We have also expanded concessions to first-time homeowners, because it’s so hard to make that big leap,” said Prime Minister Davis.

Reaction to the reduction in VAT from 10% to 5% in The Bahamas is healthy and that break will be important this year.  It is forecast by the USDA’s Economic Research Service that despite a Donald Trump presidency, food prices in the United States are still expected to jump by nearly 2% in 2025.

Africa

Bahamas’ Ghana Teacher Plan Draws Fire as Both Nations Face Shortages

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By Deandrea Hamilton | Editor

NASSAU, Bahamas (July 14, 2026) — The Bahamas Government says it needs the 300 teachers being sourced from Ghana to help close a critical staffing gap, even as criticism mounts over unresolved employment matters reportedly affecting approximately 2,000 Bahamas Union of Teachers members and as Ghana itself struggles with a massive shortage in the profession.

Deputy Prime Minister and Minister of Education, Science and Technology Chester Cooper said the shortage has been worsened by retirements, expiring contracts and the expansion of specialized subjects, including special education, technology, financial literacy, digital literacy and entrepreneurship.

Cooper said the Government has established a multi-agency task force and is attempting to attract recently retired teachers, new graduates and educators who previously left the profession.

“In keeping with government policy, Bahamians will be given first priority to fill all vacancies,” Cooper said.

However, the optics surrounding the decision are sketchy at best, with the BUT pressing the Government to settle long-standing matters affecting its members while Ghana grapples with a teacher shortage estimated at no fewer than 50,000 educators.

Ghana’s Minister of Education, Haruna Iddrisu, recently disclosed that the country needs between 50,000 and 90,000 additional teachers to adequately staff its schools.

UNICEF’s 2026 Teachers for All: Ghana report confirms that Ghana is not only experiencing an overall teacher shortage but also serious inequalities in how available teachers are distributed. It found that rural and underserved schools are particularly affected, while Ghana’s primary teacher workforce fell by more than 25 percent—from 131,094 in 2019–2020 to 93,818 in 2022–2023—as student enrolment increased.

The report stated:

“Not only is there a teacher shortage in Ghana, but inefficiencies also exist in the current distribution of available teachers.”

That finding raises questions about why a country with such a significant domestic deficit is prepared to facilitate the overseas recruitment of hundreds of educators.

Meanwhile, BUT President Belinda Wilson has argued that the Bahamian Government has substantial unfinished business with the teachers already serving in the public system.

According to Wilson, approximately 2,000 educators are awaiting the conclusion of salary negotiations, while hundreds reportedly have unresolved matters involving confirmations, salary reassessments, promotions, rental allowances, examination marking fees, disturbance allowances, hardship payments and coaching allowances.

The union has also complained that it was not properly consulted before the proposed recruitment became public and has demanded details about the qualifications, subjects, deployment locations and employment conditions being considered for the Ghanaian teachers.

The debate is also unfolding as the University of The Bahamas has produced approximately 219 education graduates over the past three years—76 in 2024, more than 60 in 2025 and 73 in 2026.

Cooper maintains that overseas recruitment is intended only to fill positions that cannot immediately be occupied by qualified Bahamians.

“For decades, we have benefitted from strategic international recruitment of educators from partner nations,” he said. “We emphasize that such recruitment is intended only to address vacancies that cannot be immediately filled by qualified Bahamians.”

Still, the questions remain: why are outstanding matters affecting thousands of Bahamian teachers unresolved, and why is The Bahamas sourcing educators from a country that acknowledges it is tens of thousands of teachers short itself?

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Prime Minister Commissions Completed Rooftop Solar Installations at UB

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Prime Minister Commissions Completed Rooftop Solar Installations at UB, July 3, 2026

By Lindsay Thompson

Bahamas Information Services


NASSAU, The Bahamas – Prime Minister the Hon. Philip Davis participated in ceremonies commissioning Completed Rooftop Solar Installations at the University of The Bahamas, a move towards energy sustainability.

Prime Minister Philip Davis

“Today, we turn a new page on how we power our lives, how we protect our environment, and how we define Bahamian leadership in the 21st century.

Energy is foundational to national development,” the prime minister said.

The ceremony commissioning installation completion, under the Reconstruction with Resilience in the Energy Sector in The Bahamas (RRESB) programme, was held on Friday, July 3, 2026 at Courtyard Choices, University of The Bahamas.

“With this commissioning, the University of The Bahamas takes its place at the vanguard of our energy transition. You are setting an example and proving your commitment to stewardship – leaving our islands better than we found them,” the prime minister said.

He said it was good to mark the commissioning: “The country has turned a new page on how we power our lives, how we protect our environment, and how we define Bahamian leadership in the 21st century,” he said.

The prime minister regarded energy as fundamental to national development, and added, “It determines how effectively we educate our children, how reliably we deliver healthcare, and how competitive our businesses can be.”  So, today is about solar panels, yes.  But it is also about how we power this country and what that means for the future we are building together. This is why programmes like RRESB matter.”

He said that it reflects his administration’s commitment to strengthening the systems that underscore daily life in the country, while building a country that is more sustainable and more energy-secure.

“We live on the frontlines of a changing climate.

“We have felt the fury of the winds and the rising of the tides. We know, better than most, that the old ways of generating power – reliant on volatile oil and fragile, centralized grids are no longer enough to guarantee our safety.

“This is why this administration will continue to strengthen our critical infrastructure and improve the resilience of our energy sector.

“As Prime Minister, I see these investments as investments in our future. They will serve our country for many years to come – while reflecting a broader shift in how we think about development.

Minister of Energy, Utilities and Aviation JoBeth Coleby-Davis

The Prime Minister said: “Sustainability is no longer separate from growth – it is essential to it.”

He extended sincere appreciation to Mr. Ruiz, Head of Cooperation at the Delegation of the European Union to Jamaica, Belize, The Bahamas, The Turks and Caicos Islands and the Cayman Islands, and to Mr. Fache, Program Manager with the European Union Delegation, for their partnership.

And, he commended partners at the Inter-American Development Bank, the University of the Bahamas, the Project Execution Unit, AnO Technologies, the Hon. Jobeth Coleby-Davis and the Ministry of Energy, Utilities and Aviation for their dedication and expertise in implementing this program.

“Today’s achievement reflects what can be accomplished when we work together in pursuit of a stronger Bahamas.

“This is the work of nation-building. It is not accomplished in a single day or in a single project. It is steady work – consistent and purposeful.”

 

(BIS Photos/Kristaan Ingraham)

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Diamond Stubbs, 17 • Betrica Brown, 19 • Stania Webb, 19 • Fourth victim yet to be identified

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Deandrea Hamilton | Editor

Six road deaths in two days leave a nation searching for answers

NASSAU, The Bahamas – A nation that only days ago celebrated graduations, scholarships and bright futures is now united in grief as six lives were lost on Bahamian roads in just two days, including four young women whose deaths have shaken the country to its core.

The names Diamond Stubbs, 17; Betrica Brown, 19; and Stania Webb, 19 have become the heartbreaking symbol of one of the country’s deadliest road tragedies in recent memory. A fourth young woman, believed to be 18 years old, had not been publicly identified by authorities up to publication time, as families continued to mourn and await official confirmation.

The four were among eight occupants travelling in a gray Mazda when it crashed into a tree on Shirley Street shortly after 1 a.m. Sunday. Police said the 19-year-old driver reportedly struck a pothole, looked back toward his passengers and lost control before the vehicle slammed into the tree. Three young women died at the scene, while a fourth later succumbed to her injuries in hospital. Four others, including the driver, remain hospitalized as investigations continue.

The tragedy’s impact reached the House of Assembly on Monday, where Members observed a moment of silence – led by Prime Minister Philip Davis – in honour of the young women whose lives were cut tragically short.

What has resonated most across the country is not simply how they died, but who they were.

Diamond Stubbs had just graduated from Old Bight High School in Cat Island as valedictorian and head girl. She was preparing to attend Langston University in Oklahoma on scholarship and was remembered by her father as an exceptional student who earned virtually every academic award presented at graduation while inspiring other young people to pursue their dreams.

Betrica Brown, who called both Cat Island and Abaco her homes, had recently travelled to Nassau to secure her student visa. Youth and Sports Minister Mario Bowleg said she was preparing to begin college on a volleyball scholarship.

Stania Webb had already distinguished herself at Langston University, where she earned both President’s List and Honour Roll recognition after graduating from Old Bight High School at just 16 years old. Family members remembered her as a quiet, ambitious young woman deeply committed to her Christian faith and education.

Speaking in Parliament, Prime Minister Philip Davis described the loss as heartbreaking, extending condolences to the families, classmates and loved ones whose lives have been forever changed. He urged Bahamians to keep those still hospitalized and the grieving families in their prayers. Similar expressions of sympathy came from across the political divide, churches, schools and communities throughout the country.

Some residents were also chided for sharing gruesome and graphic photos and video in the hours following the shocking car crash.  Relatives said it made a difficult, heartbreaking time more unbearable.

Condolences poured in from government and Christian ministers; The Bahamas Union of Teachers; The Bahamas Christian council and other leaders from across the islands.

The national tragedy extended beyond New Providence. Also on Sunday, 26-year-old Nica Julien lost her life in a separate traffic collision in Grand Bahama. Then, on Monday, a road traffic accident claimed the life of a 30-year-old man on the highway of Abaco.

Together, the six deaths have transformed what should have been a season of celebration with graduations and independence festivities in play, into one of national mourning, leaving families, communities and an entire country searching for answers—and praying that no more names are added to the list.

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