AS this country commemorates Emanci-pation Day tomorrow, one activist believes business people of African descent in Trinidad and Tobago are not benefiting from economic opportunities as much as other ethnic groups.
Founder and director of the Black Agenda Project Organisation, Dr David Muhammad has expressed concern over Trinidad and Tobago’s decision not to sign on to the African Export Import Bank (Afreximbank), the Caribbean arm.
Prime Minister Dr Keith Rowley has stated that should the bank be established in T&T, the requirement for employees to be paid tax-free salaries would be a tough condition for the country.
Muhammed told Express Business that T&T does not need to set up a physical bank to sign the agreement.
But more than that, he believes a local conglomerate linked to the Afreximbank has influenced the Government’s position.
Last August, Afreximbank’s Caricom office was launched in Barbados. A media release from the bank stated: “The Afreximbank Caricom Office will support the implementation of the Partnership Agreement between Afreximbank and Caricom member states aimed at expanding Africa-Caribbean trade and investment relations. This move cements Afrexim-bank’s efforts to promote and develop trade between Africa and the Caribbean, in line with its Diaspora Strategy and the African Union’s designation of the African Diaspora as Africa’s sixth region.”
Muhammad said signing on to Afreximbank would enable local business people of African descent to thrive.
“There is an African Export Import Bank that has been set up in every part of the Caribbean, every English-speaking member of Caricom is a part of it with the exception of Trinidad and Tobago and Jamaica. This bank has a pool of US$1.5 billion dollars for investments for African businessmen. It’s a PAN AFRICAN philosophical financial institution, meaning its more interested in the development of African Business as opposed to nationality and this in particular is looking at African businesses in the Caribbean,” he explained.
He lamented that the cosmetic aspects of Emancipation—beating of drums, colourful apparel—are insufficient when people of African descent are being blocked from opportunities.
PM: Tax-free salariesa sticking point
At a post-Cabinet news conference in June, Prime Minister Dr Keith Rowley sought to explain why Trinidad and Tobago has not signed the agreement.
Rowley stated that the relationship between Africa and Caricom is very close.
“The Afreximbank is reaching out to the Caribbean. It is very involved with Caricom…you all may have noticed in the last three years or so, I would say the last four years, Caricom has made a lot of effort in reaching out, growing our relationship with Africa or the middle East and elsewhere in the world, there has been a very big push by Caricom to get involved or have involved in our region the people who are our friends outside the regions,” Rowley said.
Rowley pointed out that there is a bit of difficulty if T&T engages in this initiative.
“That difficulty is experienced so far with Afreximbank and its documentation and operation in our country…and that is the bank is asking for its staff to earn tax-free salaries in Trinidad and Tobago. What that means is the local people working for the bank (do not have to pay tax), I don’t know why the bank is taking that position but that’s the bank’s position…. Now that has far-reaching consequences because it’s against the existing arrangements of privileges and immunities and policies,” he said.
He stressed that the Government is not at this time prepared to agree to the bank’s requirements.
Rowley noted that in smaller territories where they do not have this problem, “it is easier to say yes to the bank on that, it is not so easy for us to say yes”.
However, Muhammad indicated that he has received reliable information from an official that the tax issue will not arise because T&T does not need to set up a physical bank but simply sign on.
He acknowledged the prime minister’s concerns about the tax issues, but in the absence of having a local bank, T&T should not have any reservations about embracing the initiative. He opined that if the Government maintains its stance, it ultimately denies businessmen from seizing economic prospects and empowering afro-Trinbagonian business people.
Muhammed: Time to fully establish CSME
According to Muhammad, the Afreximbank has US$1.5 billion dollars dedicated to the Caribbean.
“The smallest loan they are offering, believe it or not is US$5 million. Now the average African businessman, let’s be straight, let’s be real, may not have the capacity to borrow US$5 million, so what’s the next step? We have to form conglomerates; we have to form economic partnership. So, US$1.5 billion divided by US$5 million…imagine 300 brand new African businessmen in eight small Caribbean islands, multimillionaires. And the Afreximbank has stated that they would double the deposits to US$3 billion dollars if Trinidad and Jamaica just sign on.”
Asked how signing benefits locals in the absence of a physical bank, Muhammad replied, “because through various Caricom Single Market and Economy (CSME) initiatives, since 2006 we have had the CSM still trying to establish the E. The CSM is the Caricom Single Market. So, what has been happening recently, is by Trinidad and Tobago signing on, it will remove the obstacle of Trinidad businessmen having to set up companies in other Caribbean islands or enter into partnership and form new companies with persons from other Caricom states.”
Muhammad is not convinced by the Government’s response, saying that such a reply was designed to sanitise the negative decision and justify it, giving it some credibility. “But you see if that happens, if they do sign it makes null and void the position of (name called) to be and overseer financial opportunities on several African businessmen in this country …our poverty is linked to the riches of others. So, the problem with poverty in this country is not that we cannot feed the poor, is because we cannot satisfy, the greed of the rich.” He added, “we are the only country in the world that has experienced a 500% increase in our murder rate since the millennium began.”
He mentioned a decline in some Afro-Trinidadian businesses in the country.
“People who have been at the top of their game two, three decades, trying to buy borrow $12,000, (they) used to be a millionaire, now looking for $12,000 to borrow. That’s what it comes to, then again, we have the nice ribbon cutting ceremony for Emancipation Day…to many people, those cosmetics are sufficient,” he lamented.
Muhammad underscored that Afro-businessmen are facing a war in accessing opportunities locally. He pointed out that smaller businesses are losing projects as a result of bigger entities grabbing up all aspects of projects.
He said currently “African businessmen are trying to form companies in Barbados, and this is a good thing in a way because we should have, the same way all other ethnic groups forged unity across the Caribbean regardless of their distance, we are now thinking about it because our backs are against a wall in this regard.”
