Bahamas News
Bahamas Prime Minister banking on 50% Food Tax reduction, Affordable Housing and Clean Energy to drive down Cost of Living
Deandrea Hamilton
Editor
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.
Bahamas News
Next U.S. Ambassador? Walker Pledges Business-Driven Approach as U.S. Looks to Counter China in The Bahamas
Deandrea Hamilton | Editor
The Bahamas, September 16, 2025 – For the first time since 2011, the United States is on the cusp of sending an ambassador to The Bahamas — and the nominee, former football star turned entrepreneur Herschel Walker, is promising to bring his business instincts to the diplomatic table.
Speaking before the Senate Foreign Relations Committee last week, Walker underscored that his background in food-service companies and small business leadership has prepared him to think practically about investment. “I know how to run a business, how to create jobs, how to make payroll. Those lessons translate into building relationships and building trust,” Walker said.
Walker, who was nominated by President Trump in December 2024, faced the Senate Foreign Relations Committee on September 11. As of now, he has not yet been confirmed; his nomination remains under review, pending a committee vote before it can move to the full Senate. If approved, he would become the first U.S. ambassador to The Bahamas since 2011.
For years, U.S. officials have stressed security and counternarcotics cooperation with The Bahamas, including through “Operation Bahamas, Turks and Caicos.” But in areas like infrastructure, medical care, and long-term investment, Washington has often been absent.
Hospitals and clinics remain under-resourced, and hurricane recovery has been slow in many islands. Chinese state-backed firms, by contrast, have shown up with financing packages and construction deals — a presence that has raised alarms on Capitol Hill.
“Only 50 miles off our shore, The Bahamas is too important for us to ignore,” warned Senate Foreign Relations Committee leaders during Walker’s hearing. They called China’s inroads “strategic, not charitable,” suggesting Beijing’s long game is about ports, proximity, and political leverage.
Walker positioned himself as a nontraditional but pragmatic envoy. He argued that his business career, rooted in private sector success, equips him to champion American investment in The Bahamas.
He pledged to:
- Promote U.S. companies interested in medical and infrastructure projects.
- Support an environment that encourages American investors to see The Bahamas as more than just a beach destination.
- Highlight opportunities for partnerships that improve public services, healthcare, and resilience against hurricanes.
“I’ve built businesses. I know what it takes to attract investors and create opportunity. That is exactly what I intend to bring to our relationship with The Bahamas,” Walker said.
The Bahamas is not just a tourist paradise. It’s a frontline state in migration, drug interdiction, and hurricane response. More than six
million U.S. visitors travel there annually, making stability and safety a U.S. domestic concern as much as a foreign policy one.
And yet, with the ambassador post vacant for 14 years, the U.S. has often looked detached — opening space for China’s ambitious Belt and Road agenda. The fear is that infrastructure deals signed today could give Beijing leverage in the region tomorrow. Walker’s confirmation would symbolize a course correction, signaling Washington’s intent to re-engage not only in security but in the economic future of The Bahamas. Not everyone is convinced Herschel Walker is the right man for the job. His nomination revived controversies from his 2022 Senate run, including past allegations, public gaffes, and doubts about whether he has the diplomatic polish the post demands. Some senators and analysts questioned whether celebrity and business experience were enough for a role requiring nuance in foreign policy and geopolitics.
Critics argued that The Bahamas, sitting just 50 miles from Florida and facing intense Chinese interest, deserves a seasoned diplomat rather than a political ally.
Walker confronted those doubts head-on. “People have underestimated me all my life — in academics, athletics, and business,” he told the Senate Foreign Relations Committee. “And I have always proven them wrong, through discipline, determination, and by outworking everyone.”
He admitted he had never served as an ambassador but countered that his career prepared him in other ways: building businesses, managing payrolls, and connecting with people from all walks of life. He framed his business background as a strength, promising to use it to encourage U.S. investment in healthcare, infrastructure, and hurricane resilience projects in The Bahamas.
Rather than sparring with critics, Walker leaned on confidence and persistence: “I know how to build trust and find common ground. That’s what this relationship needs.”
If confirmed, Walker would have to balance his role as diplomat with expectations of being a commercial cheerleader for U.S. firms. His emphasis on entrepreneurship suggests a willingness to push U.S. businesses toward opportunities in healthcare, ports, and post-storm reconstruction — areas where Bahamians say they need the most support.
For Bahamian officials, the question will be whether Washington is prepared to back words with financing. U.S. private sector dollars, paired with aid and development partnerships, could help shift the tide against Chinese influence.
For Walker, the test will be whether his business acumen can translate into diplomatic wins — giving Bahamians alternatives to Beijing, while deepening the U.S. role in the Caribbean.
Analysis: If Walker delivers, this appointment could mark a turning point: a U.S. strategy that recognizes that in the Caribbean, investment is diplomacy.
The Bahamas, September 10, 2025 – Rescue swimmers from the United States Coast Guard (USCG) Aviation Training Center in
Mobile, Alabama visited Nassau to train Royal Bahamas Defense Force (RBDF) and Royal Bahamas Police Force (RBPF) members in water survival skills as part of Operation Bahamas Turks and Caicos (OPBAT) earlier this week.
“Training alongside our USCG partners ensures our personnel are best prepared for the unique challenges of joint operations” said Superintendent Wendy Pearson, Commander Drug Enforcement Unit.
The multi-day exercise, centered on the USCG’s Shallow Water Egress Training (SWET), enhanced the safety and preparedness of Bahamian partners who routinely operate aboard USCG helicopters during OPBAT missions. The exercise provided hands-on instruction for 31 participants and strengthened interoperability between U.S. and Bahamian agencies engaged in counter-drug, search and rescue, and maritime security operations throughout the region.
“We were excited and proud to have the opportunity to share our expertise with our Bahamian partners. Not only did RBDF and RBPF
perform exceptionally well, they exceeded the standards we set for the event,” said Petty Officer Second Class Cole Johnson, USCG.
OPBAT is a cooperative multi-agency international operation supporting The Bahamas and Turks & Caicos Islands to stop illicit drug smuggling through the region. U.S. Embassy Nassau Chargé d’affaires Kimberly Furnish stated, “Since 1982, OPBAT has worked to stop the flow of illicit narcotics through the Caribbean, destined for the United States or other jurisdictions. This is international cooperation at its best.”
