As Europe is getting ready to face the second wave of the pandemic, small island nations across the Caribbean are still struggling with the economic fallout of the first wave. Heavily reliant on tourism, and having some of the lowest teleworking rates in the world, these countries are taking damage equal or exceeding their GDP, and, when emergency IMF support is not enough to sustain the economy, it is up to independent investors to take action.
One of these investors is Soren Dawody, a veteran entrepreneur specializing in real estate and development projects. Having collaborated with many government agencies and NGOs throughout his career, Dawody decided to leverage his experience and start a new venture – the Grenada Sustainable Aquaculture Ltd (GSA). Endorsed as a Citizenship by Investment Project, the Citizenship by Investment Project aims at reviving Grenada’s struggling economy and building its resilience for future crises.
Plagued by unemployment and extreme weather events, Grenada needs sustainable solutions to thrive
Located in the Eastern Caribbean Sea, Grenada is also known as “the Spice Isle” due to its lucrative spice trading export sector (nutmeg and mace). Offering one of the most serene landscapes and pristine beaches in the region, Grenada is a veritable touristic gem that, until recently, welcomed thousands of visitors every year. Thanks to tourism, Grenada registered a 3.1% GDP increase in 2019 but, unfortunately, this progress was almost completely reversed by the pandemic, which took a heavy toll on the nation’s economic mainstay.
Grenada’s tourism sector accounts for nearly half of its GDP and, in the first half of 2020 alone COVID-related restrictions caused the GDP to shrink by 5.5%. The nation’s situation wasn’t helped by the fact that the business environment is severely underdeveloped and the labor market is unprepared. According to one study, the nation’s unemployment levels were at 25% before the pandemic and only a small percentage of the population has access to education. Most people in Grenada worked in tourism and associated fields – all of which involved close personal contact and had to be put on hold for safety reasons.
And it’s not the first time in recent history that Grenada underwent an economic shock. The island state is at heavy risk from natural disasters such as hurricanes and extreme weather. For example, in 2004. Hurricane Ivan caused economic damage double the GDP, and the same scenario could happen again. With tourism taking a heavy blow, it’s time for the nation’s second-best performing sector, agriculture, to be the backbone of the economy but, as it stands, it might not be enough. According to Grenada’s government, the country’s GDP could shrink by 10% by the end of the year, and the financial support from the International Monetary Fund was not enough to send the economy back on course. In fact, World Bank projections place Grenada at the top of the list of worst-hit nations in the Caribbean region.
It is therefore time to think of new solutions and explore sustainable avenues of development. Since most travel restrictions are expected to last in 2021 and possibly beyond, Grenada needs to adapt and putting all the pressure on agriculture and exports might not be a good long-term option because of the constant risk of natural disasters. Instead, Grenada needs to diversify, and this is where projects like Soren Dawody’s Grenada Sustainable Aquaculture initiative come in.
What is GSA (Grenada Sustainable Aquaculture)?
The Grenada Sustainable Aquaculture Initiative (GSA) is an environmentally-responsible venture designed to diversify Grenada’s economy, help it recover from the blow of the pandemic, and boost the country’s economic resilience in the face of future disruptive events. Initiated by entrepreneur Soren Dawody, GSA is a scalable project that could also help the job market and favor GDP growth. Mostly focused on commercial shrimp farming, an underexplored subarea of aquaculture, GSA aims to empower Grenada’s local communities with new job opportunities and help the economy bounce back in a way that respects the natural ecosystem. The sustainable potential of aquaculture is already being explored in Europe, where there are already 14,000 aquaculture enterprises across all member states.
According to initial estimates, the Grenada Sustainable Aquaculture initiative will be profitable for the nation, but it won’t come at an environmental cost, nor will it put a heavy strain on the local workforce. Albeit large-scale, GSA will not require local displacement or interfere with the nation’s plans of becoming a blue innovation hub. On the contrary, it will help it.
Having worked on similar impact investment projects before, Soren Dawody was fully aware of the stakes of this initiative, which is why he followed a charitable approach. In the long run, GSA aims not only to solve Grenada’s economic issues, but also eliminate the biggest pitfall of industrial shrimp farming: water pollution. Instead, Soren Dawody wanted to apply a more eco-aware approach, one that’s mindful of the needs of local communities and limits the exploitation of natural resources. The mission statement of the Grenada Sustainable Aquaculture project is to give food security to the locals and boost the nation’s export opportunities, in a way that doesn’t harm the environment.
At present, Grenada’s economy relies heavily on tourism and spice exports. However, Soren Dawody strongly believes that diversification through aquaculture could provide an extra source of income and establish Grenada as a sustainable food exporter. To this end, the GSA model will reduce reliance on manual labor and place skilled workforce in key roles in operations and technology, also offering them citizenship. As the world continues to struggle with the effects of the pandemic and even by the most optimistic estimates things will not return to normal earlier than 2024, projects such as the Grenada Sustainable Aquaculture initiative will play a key role in recovery by creating new jobs, reducing reliance on tourism, and strengthening the workforce. Last but not least, the GSA will create new strategic partnerships for Grenada, attracting investors from the private sector and preparing the nation for a new sustainable era.