Jamaica Boosts Free Zone Strategy
Jamaica's Ministry of Industry is advancing strategies for its special economic free zones after meetings with Colombian officials. The collaboration aims to strengthen the framework for these zones, which could create new opportunities for export-oriented service businesses.
A recent technical exchange in Bogotá, Colombia, spearheaded by Minister of Industry, Investment, and Commerce, Senator Aubyn Hill, is a key part of the strategy. The Jamaican delegation visited the Zona Franca de Bogotá, one of Latin America's foremost industrial and logistics zones, to study its design and operational best practices. This visit was facilitated by the Inter-American Development Bank to help strengthen Jamaica's own Special Economic Zone (SEZ) framework. The focus in Colombia was on systems that enhance speed, security, and certainty for investors. Zona Franca de Bogotá utilizes advanced technology to minimize human interaction in cargo management and has Colombia's customs authority, DIAN, located on-site for precise tracking of goods. The facility, which is 95% covered by 148 security cameras, recorded approximately US$10.392 million in Free on Board (FOB) value in 2025 and supports around 30,000 jobs. These learnings are intended to be applied directly to Jamaica's SEZ framework, particularly the Caymanas Special Economic Zone. The goal is to create a world-class, efficient, and competitive environment that helps Jamaican companies export faster and operate more efficiently on a global scale. Jamaica's SEZ regime, established under the 2016 Special Economic Zones Act, has been a significant driver of economic growth. Companies within these zones benefit from a reduced corporate income tax rate of 12.5%, which can be lowered to 7.75%, a significant decrease from the standard 25%. This incentive structure has been particularly successful in the global digital services sector, which has expanded from basic call centers to higher-skilled services, now employing over 60,000 people in Jamaica. Overall, employment in Jamaica's free zones grew from 43,000 to 54,000 following the pandemic. The Jamaica Special Economic Zone Authority (JSEZA) has overseen the growth to 143 SEZs since its establishment. There are currently 32 new projects in the pipeline, with an estimated value of around $3 billion. These new projects are targeting emerging sectors such as green energy, organic manufacturing, and sustainable development.
