Ainsley Brown | Positioning Jamaica as SEZ and nearshore hub

The global map of production is being redrawn. Supply chains, once optimised for cost and scale, are now being recalibrated for resilience, proximity and predictability. In this new order, special economic zones (SEZs) have re-emerged as critical instruments of industrial policy. 

Worldwide, between 5,000 and 7,000 zones operate across roughly 140 economies, supporting up to 100 million direct jobs and accounting for as much as a fifth of global exports. The Caribbean, with an estimated 300-plus zones across 16 jurisdictions, is firmly part of this ecosystem. Yet it remains underleveraged.

Nowhere is this tension between participation and potential more evident than in Jamaica. The island has the essential ingredients—proximity to North America, established logistics infrastructure and a functioning SEZ regime—but has yet to translate these into scale in manufacturing exports. The question is how Jamaica chooses to position itself within an increasingly regionalised global economy.

The nearshoring opportunity is instructive. According to the Inter-American Development Bank, Latin America and the Caribbean could capture an additional US$78bn in exports annually from the reconfiguration of global supply chains. Within this, Jamaica’s share of additional goods exports is estimated at $138.5m. If even 20 to 30 per cent of this were channelled through SEZs, the country could generate between $27.7m and $41.5m in new exports.

At first glance, these figures appear modest. Yet placed in context, they are anything but. Jamaica’s yam exports—one of its most recognisable agricultural products—stood at $42.7m in 2023, while sauces accounted for $35.9m. In other words, nearshoring-driven SEZ activity could rival or exceed entire legacy export categories. For an economy where manufacturing contributes less than 8 per cent of GDP and services dominate at roughly 70 per cent, this represents a meaningful avenue for diversification.

The Caribbean context reinforces the point. Six regional economies with active SEZ regimes—The Bahamas, Belize, the Dominican Republic, Haiti, Jamaica and Trinidad and Tobago—could collectively generate an additional $2.67bn in goods exports through nearshoring. Even conservative capture rates suggest between $534m and $801m could flow through SEZs. The implication is clear: zones are not peripheral to this opportunity; they are the primary delivery mechanism.

The benchmark for success is close to home. The Dominican Republic has built one of the most dynamic SEZ ecosystems in the hemisphere, with 92 zones, 850 companies and more than USD$8bn in exports. These zones account for approximately 60 per cent of the country’s manufacturing base and support nearly 200,000 jobs. The lesson is that alignment between policy, infrastructure and investor needs matters.

For Jamaica, the strategic question is what to produce. Expanding existing exports offers incremental gains, but the larger prize lies in diversification into higher-value manufacturing. Here, analysis from UN Trade and Development points to a range of feasible products.

Three illustrative categories stand out. First, consumer appliances such as electric coffee or tea makers. Companies including De'Longhi, SharkNinja and Breville operate in this space, with established global distribution networks. Second, medical technologies, including artificial joints, where firms such as Smith & Nephew, B. Braun and XCMedico are active. Third, industrial and control systems such as radio remote-control apparatus, with players including Savant Systems, HBC-radiomatic and Autec.

These examples illustrate the type of sectors where Jamaica could insert itself into global value chains. Crucially, the objective is not to replicate existing manufacturing hubs, but to identify niches where the country can compete on a combination of cost, speed and reliability.

This requires a shift in how SEZs are conceptualised. Too often, zones are marketed through generic fiscal incentives—reduced corporate tax rates, duty-free imports, streamlined customs. While these remain important, they are insufficient on their own. Investors are increasingly making decisions based on ecosystem considerations: infrastructure readiness, regulatory transparency, workforce skills and supply chain integration.

For Jamaica, this means reframing its SEZ value proposition. It is not about the incentives offered in isolation, but about how they enable a company to achieve its strategic objectives. Can a zone reduce time-to-market? Can it provide access to regional inputs? Can it mitigate geopolitical risk? These are the questions that matter.

It is also important to recognise the limits of current analysis. The identification of potential investors is illustrative and does not imply interest or engagement. Any serious investment promotion effort would require detailed due diligence, including analysis of corporate strategies, expansion plans and supply chain configurations.

Nevertheless, the broader direction is clear. Nearshoring is not leading to a wholesale relocation of manufacturing to the United States, but to a regionalisation of production across the Americas. Mexico has been a primary beneficiary, but opportunities exist for complementary hubs. The Caribbean, and Jamaica in particular, can position itself as a specialised node within this network.

To do so, it must address structural constraints. Infrastructure must be upgraded, energy costs managed, and regulatory processes streamlined. Institutional credibility—often overlooked—will be critical in attracting long-term investment. These are not abstract policy goals; they are practical requirements for competing in a crowded investment landscape.

Jamaica’s SEZ regime, while still evolving, provides a foundation. The challenge now is execution—translating policy into projects, interest into investment, and opportunity into exports. In a region that has already demonstrated its ability to adopt and operationalise SEZ frameworks, the next phase is clear: scaling impact.

For Jamaica, the nearshoring moment is not a distant prospect. It is an immediate opportunity—one that will reward those prepared to act with precision and intent.

Ainsley Brown is knowledge advisor at World Free Zones Organisation. Send feedback to brown.ainsleyc@gmail.com.