Signed and sealed – Freeport jobs boost

By NEIL HARTNELL

Tribune Business Editor

nhartnell@tribunemedia.net

The Government’s mission to establish a Grand Bahama “technology hub” yesterday received a major boost from an investor pledging an annual $50m economic impact by 2020.

GIBC Digital, a New York-headquartered technology firm, unveiled ambitions to triple its initial Freeport workforce to 150 staff within three years following the planned opening of its office this month.

The seven year-old company, in a press statement, said its initial $2.5m investment would result in 50 jobs at an office that will serve as both GIBC Digital’s global training headquarters and a data/artificial intelligence centre.

And its chief executive, Greg Wood, suggested The Bahamas could become “the Silicon Valley of the Caribbean” within ten years if it pursued its technology hub ambitions through to fruition.

Kwasi Thompson, pictured, minister of state for Grand Bahama, hailed the company’s promised investment as “a very significant step for our technology hub”, given that it could act as a magnet that draws like-minded companies to locate on the island.

He told Tribune Business that GIBC Digital’s interest proves the Government is “on the right track” with its “technology hub”, and that its arrival will motivate the Government to “double our efforts”.

Mr Thompson revealed that the Minnis administration aims to further promote Grand Bahama to the global technology industry via a June 2018 conference on block-chain and financial (Fintech) technology, following the recommendations of its “hub” steering committee.

Tribune Business understands that GIBC Digital’s investment will be formally unveiled at a press conference today, but the company touted its impending arrival in Freeport through a press release issued yesterday.

“GIBC Digital will establish the office with an initial $2.5m investment,” the company said. “The investment will enable the hiring of 50 people to do both local and regional work focused on automation, cyber security and data intelligence. In addition to this direct investment, the company will invest another $1m of its resources into training its new employees.”

It is unclear how many of these 50 jobs will go to Bahamians versus skilled expatriates that GIBC Digital will bring in. Mr Thompson, in remarks to be delivered at the press conference today, said the $1m investment would involve the “deployment of employees from the US, the UK, and other areas to The Bahamas to conduct training”.

The Minister added: “GIBC anticipates that for each skilled job created, another 2.5 jobs will result in our local service and tourism sectors, resulting in an estimated economic impact of over $10 million in the first year alone.

“Further, GIBC has expressed plans to expand its Bahamian operations to over 150 employees and build a state-of-the-art, sustainable data and artificial intelligence centre within three years, bringing an economic impact of $50 million by 2020.”

GIBC Digital’s investment is likely to be especially important for the Minnis administration given that it marries three key initiatives - establishing Grand Bahama as a ‘technology hub’; the Commercial Enterprises Act; and encouraging international companies to establish a physical presence/real operations in the Bahamas.

Mr Thompson confirmed that GIBC Digital was “among the first companies” to apply for, and be approved, under the Commercial Enterprises Act, which aims to smooth the path for investment in targeted industries by easing Immigration bureaucracy and ‘red tape’.

The Act allows approved companies to send key personnel to the Bahamas, and establish operations, without first being in possession of valid work permits. Such permits must be applied for within 30 days of these executives’ arrival in the Bahamas and, should no reply be received from the director of Immigration within 14 days, the permits are automatically deemed to have been granted.

The Act, together with the Grand Bahama ‘technology hub’ initiative, are major components in the Government’s plan to restructure and reposition the Bahamian economy by diversifying away from its reliance on tourism and financial services.

With liberalisation/deregulation, and full World Trade Organisation (WTO) membership, other important elements, the Minnis administration is focusing on attracting knowledge-based industries with the potential to be major foreign exchange earners and creators of high-paying jobs.

Mr Wood, GIBC Digital’s chief executive, said this was exactly what his company will bring to Grand Bahama. “We are hiring local people and providing them with the skills they need to be part of the digital workforce,” he said in a statement. “We aren’t just creating jobs; we are creating in-demand, high-paying careers. The positive economic impact for Bahamians will be incredible.”

He added: “We are excited to be a part of the Minnis administration’s vision to make Grand Bahama a tech hub. Ten years from now, it will be thought of as the Silicon Valley of the Caribbean. This is the perfect time to be part of the growth and reinvigoration that’s taking place here.”

Mr Wood’s statements are strikingly similar to Mr Thompson’s prepared press conference remarks, with the Government hoping GIBC Digital’s arrival will send a signal to the global technology industry that the Bahamas is open for business and merits consideration as a location for physical presence.

GIBC Digital was founded by Mr Wood in 2011 as an enterprise focused on the provision of operational and information technology (IT) strategy, with a focus on regulatory-driven change. As client demands changed, its business model has evolved into a focus on other sectors, including cyber security and fraud prevention, plus data intelligence.

The company’s website describes it as “having more than 35 people around the world”, indicating that the Freeport expansion may double the existing workforce. Clients are said to have included many of the world’s major financial institutions, including Citibank, J. P. Morgan, HSBC, UBS, Credit Suisse, Barclays, Deutsche Bank and AIG. Former high-ranking UBS and Citigroup staffers are said to be among its executives.

Apart from its New York headquarters, GIBC Digital also has offices in Boston, Stamford, Tampa, London, Hong Kong, and Singapore. Besides Freeport, it also plans to establish a presence this year in Dublin, Toronto, Johannesburg and Lagos this year, according to its website.

Tribune Business sought to contact and interview Mr Wood on the company’s Freeport plans yesterday. However, despite corresponding with GIBC Digital executives on the matter, no interview was arranged before press time.

Mr Thompson yesterday expressed hope that GIBC Digital’s investment signals Grand “is an ideal place for technology companies to set up an office, and investors have the confidence to do so”.

He added: “I think it sends a very positive message out to the rest of the world, for technology companies, when it comes to what Grand Bahama has to offer. They’ve [GIBC Digital] obviously seen there’s some strategic benefit from setting up an office, not just in the Bahamas but Grand Bahama.

“We hope this really signals to other, major technology companies; global technology companies, that Grand Bahama is a good space to be in and an ideal location to be in. We hope; we can’t obviously make any concrete predictions, but we’re very hopeful this goes to provide the necessary incentive for others to come in.”

The Government has invested significant resources in establishing Grand Bahamas as a so-called ‘technology hub’, and the ‘capture’ of GIBC Digital provides some early reward for its efforts and boosts the initiative’s credibility.

“We are at the beginning stage of this technology hub initiative,” Mr Thompson told Tribune Business. “It’s a positive sign to have a global company like this; it’s a really positive sign for the jurisdiction.

“We’re going to continue to work; continue to plan. It’s reinforcing and confirming we’re on the right track with this initiative. It motivates us to double our efforts because we’re making good progress. It’s a positive start.”

Mr Thompson confirmed that the Government is continuing to follow the recommendations of its ‘technology hub’ steering committee, which identified numerous reforms - ranging from ‘ease of business’ and regulatory improvements, to training, education and access to funding - as necessary to position Grand Bahama as a location for this industry.

He will say today: “In keeping with the recommendations made by our Technology Hub steering committee, the Government will host a blockchain and crypto-currency conference in June of this year.

“The purpose of this conference is to introduce the Bahamas, particularly Grand Bahama, as a jurisdiction which is favourable for investors, and to present Grand Bahama as an ideal location for technology companies and those focused on block-chain, cryptocurrency and fin-tech solutions.”

Mr Thompson yesterday told Tribune Business that the conference, which is currently “in the planning stages”, was intended to both promote Grand Bahamas as a location and bring together technology start-ups and entrepreneurs with potential financiers, such as venture capitalists and ‘angel investors’.

Mick Holding, the Grand Bahama Chamber of Commerce’s president, yesterday told Tribune Business he had met GIBC Digital’s executives at last week’s business-to-business expo, where they briefly spoke and informed him of their plans.

“It’s a start,” he said of the company’s investment. “Every initiative has to start somewhere. To have one of that size coming here within a relatively short time of it [the technology hub] being launched will hopefully encourage others to follow.

“They’ve obviously done their due diligence on coming here, and it opens the door for others. If companies like that think this is a great move, why wouldn’t it be good for someone else. It’s positive. It’s got to be.

“They’re a large company, as far as I’m aware. They seem very enthusiastic about coming to the Bahamas, and hopefully they’re going to be the first of many.”

However, some in the Bahamian technology industry reacted with caution to GIBC Digital’s potential investment. One source, speaking on condition of anonymity, argued that “Grand Bahama is not ready for it right now” because the island lacks the necessary supporting IT and other infrastructure to provide the proper supporting platform.

They warned that if the expectations of GIBC Digital and other ‘early movers’ were disappointed, it could undermine the whole ‘technology hub’ strategy. “Yes, it could work, but do you have the housing, the restaurants, are bank accounts going to be open in time?” the source said.

“Why would a company go to Grand Bahama when it is far more expensive? Living costs are expensive, and the ‘ease of doing business’ is non-existent.

Comments

HonestTruth says...

This is absolutely fantastic news, please keep up the good work and let’s get Freeport back to where it once was. I love this direction and vision

Posted 3 May 2018, 9:53 a.m. Suggest removal

proudloudandfnm says...

Does not appear to be for locals. I have no idea what they do. Seems to be more for highly trained IT professionals. Not exactly good for the locals. But we will see. It definitely is along the lines to help to slow brain drain so this may be a very good thing in the long term.

But it does not end our troubles right now it will not bring Freeport back to life. We need our hotels re-opened and we need that 1% processing fee waived for maritime and we need that incredibly ignorant 25% C-10 fee eliminated.

I'm also not buying that line about each job creating 2.5 jobs in service and tourism. But as long as this does not Oban out it can be good for the country in the long term.

Still have no faith in Minnis or Kwasi so I wait and see....

Posted 3 May 2018, 10:54 a.m. Suggest removal

realfreethinker says...

You need to get a life. You are so negative.

Posted 3 May 2018, 3:57 p.m. Suggest removal

ThisIsOurs says...

First, great news for Freeport.

Now I'm gonna disagree with you then agree a little.

I take the exception to "*does not appear to be for locals..seems to be for 'highly trained IT professionals'*"

This is the koolaid that Pindling to Minnis is selling the Bahamian people. We're too dumb, to unsophisticated, too behind the times for Bahamians living right here in the Bahamas to do anything significant in the tech industry. It's a lie from the pits of hell. That's what they want you to think so when they bring in the foreigner you can say, oh well Bahamians can't do that anyway..."CEB Bill". I recall when they first started talking about the bill this insidious line that MP after MP repeated "*well we don't have ANY programmers..so..*", then when they started getting challenged on that, the line turned to "*oh well we don't have that many, don't have them in critical mass*". To that next deception I say how many programmers started Microsoft or Apple?

**The next lie they will tell you is we don't have Bahamians who can do it NOW. Another deception. Do you know how quickly innovation happens? Tim Cook Apple CEO says in the near future we will need to learn a new technology every three months. So the focus isn't on what you know TODAY, but can you learn, can you be trained**. Think of it. It's therefore a given that people in the industry need to have the ability to learn. What we may not have had is the opportunity or the exposure to the "latest", but don't think for a minute that you don't have a thousand Bahamians IN THE BAHAMAS quite capable of dong this work.

the next lie they will tell you is all the "smart" Bahamians away working for some international firm and they have to come back to "help" us. It would be great IF they did. But they may never return even though they love the country. We have everything we need right here in Bahamians at home. The ability to read and the ability to think.

Now time to agree with you. I don't think it's not locals either. But not because they can't do the work. Will see if it has anything to go with the elimination of the requirement for Indians to have visas. The company will be staffed by foreign workers and they will continue to tell you that Bahamians can't do the work for the next 30 years or until such time as they've earned enough and leave.

Posted 3 May 2018, 4:17 p.m. Suggest removal

BahamasForBahamians says...

Until we reduce the cost of energy in The Bahamas - articles like this will come and go without any real activity.

We cannot compete with countries who charge less than a fraction than we do for most expensive fixed cost in the tech sector, electricity. Additionally, we have archaic laws that deal with intellectual property and other tech related factors. When we see changes in that regard, then these Silicon Valley pipe dreams can actually come to fruition.

Posted 3 May 2018, 10:55 a.m. Suggest removal

concernedcitizen says...

that is why there has been a deal signed w Shell North America to build a new LNG plant at Clifton and to reduce electricity rates

Posted 3 May 2018, 5:39 p.m. Suggest removal

realitycheck242 says...

Great news for tech savy young Bahamians..This would never have happened under the plp ...This is only the beginning. After one year there are signs of this ship of state beginning to turn.

Posted 3 May 2018, 10:59 a.m. Suggest removal

TheMadHatter says...

I praise the government for this effort which is so much better than the zero effort of the previous circus performers.

Posted 3 May 2018, 11:26 a.m. Suggest removal

BahamaPundit says...

Well done FNM!!!

Posted 3 May 2018, 11:39 a.m. Suggest removal

birdiestrachan says...

It is my hope that it means something for Grand Bahama and not just a great deal about
nothing. Pie in the sky, Time will tell.

Posted 3 May 2018, 1:45 p.m. Suggest removal

birdiestrachan says...

Note a seven year old company. It is my hope it is not another OBAN.

Posted 3 May 2018, 1:48 p.m. Suggest removal

Dawes says...

So you would say no to facebook coming as they are only just over 10 years old. That is the nature of the tech industry, a lot of them are young startups. Which is also why they can move very quickly as they do not have historical roots to deal with.

Posted 3 May 2018, 1:52 p.m. Suggest removal

DWW says...

7 i old in tech firm years.

Posted 4 May 2018, 7:50 a.m. Suggest removal

joeblow says...

Certain kinds of investors like the islands because they can run circles around the locals and there is less regulation and oversight. Lets see what happens !

Posted 3 May 2018, 1:49 p.m. Suggest removal

Dawes says...

Its a start, and hopefully more will follow. Whilst it may initially not help ,many unemployed Grand Bahamians it will help in the long run, as another industry is now set up over here that Bahamians can work in without having to leave. It has taken over 15 years for Freeport to get to where it is today (and some would say 30 years), so it will not get out of the quagmire it finds itself in over night. But if they can get this one and another 5-10 it will be a start, and also get that hotel re-opened then things would be looking up.

Posted 3 May 2018, 1:55 p.m. Suggest removal

proudloudandfnm says...

I think this can be good in the long term. But today very little of GB's is tech saavy so it is incredibly doubtful this will benefit GB in the short term. Probably onky end up with more foreigners working on island sending their pay home to pay bills.

And still Freeport lingers in limbo. Still can't go back home to get a job.

PLEASE DO SOMETHING TO GET OUR HOTELS OPENED AND OUR MARITIME INDUSTRY BACK! NOW! WE CANNOT WAIT ANY LONGER. WE WANT TO GO HOME!!!

Posted 3 May 2018, 2:02 p.m. Suggest removal

concernedcitizen says...

actually medium and small hotels are losing favour..Arbnb and home away is whats up .Who wants crappy service w an automatic 18%gratuity .Both Abaco and Exuma are being propelled by vacation home rentals to high end guest .On Exuma we are doing good as Bahamians renting them cars ,captain boats , having resturants ,fish fry etc ,,building the homes etc .managing them ,,and yes owning home and cottages to rent .Another question how come Abaco does well w high end second home owners and rich yacthees etc w out gov help and Grand Bahama sucks and cries for the government to do something .

Posted 3 May 2018, 5:51 p.m. Suggest removal

DWW says...

LOL too true though. and freeport dont pay no tax but they wan' benefit

Posted 4 May 2018, 7:53 a.m. Suggest removal

proudloudandfnm says...

Oh. We have the housing. A couple of restaraunts too. Would be best you bring your own entertainment. Freeport is one beach that aint got no sand....

And doesn't look like we'll have any sand any time soon. Many of us have had to leave the island. So yall go, wish we could. But alas. Still no jobs or business opportunities on GB for people FROM GB.... wierd hey? You moving there and we moving away from there. So take ya own sand....

Posted 3 May 2018, 2:38 p.m. Suggest removal

realitycheck242 says...

The Fact that This company with a $2.5 million can come in and start up with hiring 50 people speaks volumes for its potential and others like it in the tech sector. This is certainly not an Oban type agreement and by expanding to 150 people in three years they would be well on the way to proving the vision behind the Commercial Enterprise Bill. Imagine the spin off jobs that would be created if Freeport can become the silicone Valley of the Carribean

Posted 3 May 2018, 2:44 p.m. Suggest removal

ThisIsOurs says...

I think it's great news for Freeoort if they open, "some" people who are not earning an income may have an opportunity to, also they're not destroying the environment. But I've seen to much sexy terms used by this administration. I had so much hope on May 11 2017, then as the months rolled on I started wondering, then it became apparent to me what was happening.... They were running an election campaign. It was ALL about PR, all a marketing scheme, catchy terms, hype up the crowd but no real substance. I believe we can be silicone valley too, but we ain't gonna be it with a 90% foreign tech workforce. That's the definition of a mobile unit that can pick up and leave when they feel like it.

Posted 3 May 2018, 4:38 p.m. Suggest removal

TalRussell says...

Unlike Oban which was doomed from fake signature get go, the tech upstart comrades at GIBC Digital should be given a chance uncover where the real value exists for Grand Bahamalanders... as long they don't be promising build 200 company town houses and public purse's monies are not to fund them. Welcome!

Posted 3 May 2018, 4:55 p.m. Suggest removal

sheeprunner12 says...

The Silicon Valley of The Caribbean .......... sounds sexy!!!!!!!!

Posted 3 May 2018, 6:04 p.m. Suggest removal

TalRussell says...

Ma Comrade, I thinks Oban put da pepper in Vaseline they used on Minnis and KP. For sure we knows both them can takes lots pepper pain up ass.

Posted 3 May 2018, 6:15 p.m. Suggest removal

ThisIsOurs says...

Yeah, let's not turn ourselves into a "Boom Bust" town Where everything hinges on the big factory in town, when they decide there's green pastures elsewhere everything goes bust..or BOOM...whichever seems applicable. That goes for the web industry buying up every piece of grass in the country too.

Posted 3 May 2018, 6:16 p.m. Suggest removal

TorontoGal says...

I think this could be a boost for the Bahamas. It may give young people the opportunity to be properly educated and hired on with this new company...give young people something to strive for instead of having unwanted babies and shooting each other.

Posted 3 May 2018, 6:27 p.m. Suggest removal

BahamaPundit says...

I may be harsh on Doc, but it's because I believe in him and the FNM's potential to bring this country back from the brink. Davis is another matter. I would rather move to the moon than see the PLP reclaim the government. I mean, after the BAMSI arson fiasco and lack of insurance, how can Davis even open his mouth? He lost this country millions by failing to ensure the contractor and project was properly insured. You'd think he'd still be sitting small. Every word Davis speaks in opposition makes me think this guy has an unbelievable nerve!!! Even Jesus would be "drop jaw" speechless at his hypocrisy! He has the Pharisees beat by a mile!!!

Posted 3 May 2018, 6:31 p.m. Suggest removal

sheeprunner12 says...

Agreed ......... That is what make Davis so dangerous ........ he is a brazen, lying, shameless, visionless, POS who runs a political party with the potential to rule the country ........ Les we forget.

Posted 3 May 2018, 6:45 p.m. Suggest removal

TalRussell says...

The tech comrades better not be depending on Freeport's power supply reliability as sold to them by Minnis and KP..... it's at odds with the power reality what they will meet to fully power up their digital telecommunications and high quality, high-speed Internet. The bullshi# stops when workers laptops have run on standby batteries.... and unlike in Nassau, if you don't pay your light bill promptly in advance - they cut off your power. There's no such thing as a list special man's - not cut off they businesses lights.

Posted 3 May 2018, 6:43 p.m. Suggest removal

proudloudandfnm says...

I bet anyone had the PLP won last election.our hotels would be open by now... no doubt...

Freeport needs 2000 jobs by summer. This doesn't even get us close.

It is that bad in Freeport.

Time for government to do something NOW!

Posted 4 May 2018, 9:11 a.m. Suggest removal

CuriousAbaconian says...

As a Bahamian, I feel for you. However, I must ask: What is it you want/expect the government to do that you cannot do better yourselves? I know in Abaco we don't depend on the government to provide us with prosperity. If anything, we are prosperous IN SPITE of the government. I suggest it might be high time for Grand Bahamians to attempt to do the same.

Posted 4 May 2018, 11:55 a.m. Suggest removal

sheeprunner12 says...

At last, someone else agrees with me about crybaby Freeporters

Posted 5 May 2018, 3:44 p.m. Suggest removal

bogart says...

EXCELLENT NEWS...plus staff at shipyard training for new remote controlled cranes etcetc....

Posted 4 May 2018, 9:16 a.m. Suggest removal

proudloudandfnm says...

Freeport you better wake up and start marching. Protest the apathetic approach to our problems. See how happy Nassau is about 50 jobs next year? They have no idea how bad it is on GB. Wake up and start protesting! Make noise or we'll never get the help we need! RISE UP AND DEMAND ACTION NOW!

Posted 4 May 2018, 9:43 a.m. Suggest removal

Dawes says...

Or they could do what other islands are doing, like Abaco and Exuma with the 2nd home owners which seems to be working. Or does Freeport want the government to do it for them? Of course that would be hard as you also don't want the Government to be involved up there. Why don't 1-2,000 people (or however many needed) get together and buy the hotel and open it up?

Posted 4 May 2018, 10:14 a.m. Suggest removal

proudloudandfnm says...

Why don't you stop asking stupid questions?

Posted 4 May 2018, 11:21 a.m. Suggest removal

ThisIsOurs says...

Here is my suggestion to you. Create a nice survivor island experience. You will even get locals to come in for it. It has to be nice though not some thrown together stuff. You have more than enough land to do it. I have no idea how much investment something like that would cost..it would require some landscaping, a tent village or small huts but it would certainly be less than a hotel or an oil refinery and people would love the "experience". Your contractors would know what to do.at the end have a nice concert or native show or a sports festival

Posted 4 May 2018, 5:50 p.m. Suggest removal

sheeprunner12 says...

Now that Freeporters will have new tech jobs ........ what will they bellyache over next????

Posted 5 May 2018, 3:43 p.m. Suggest removal

ashley14 says...

Great News! I have many wonderful memories of time in Freeport with my mom. Wonderful people, they deserve a break.

Posted 6 May 2018, 2:27 p.m. Suggest removal

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