Reimagining The Bahamas’ economic future

Imagine a future where our hotels source 60 percent of their produce from local farms. What if Bahamian seafood exports flooded Asian markets, and our SMEs partnered with Caribbean neighbors to build a regional trade powerhouse? Picture a digital economy where Bahamian artisans sell their crafts globally, unhindered by physical borders. How would our economy thrive if we invested in innovation hubs, empowering the next generation to lead with creativity and boldness? Are we fully tapping into the vast opportunities that Brazil, Nigeria, and China offer as thriving markets for both imports and exports, for example, or are we limiting our potential?

In a well-known psychological study, scientists placed five monkeys in a cage with a ladder leading to a bunch of bananas. Each time a monkey climbed the ladder, the group was sprayed with cold water. Eventually, the monkeys learned to avoid the ladder. What’s more striking is that even after the water was turned off, the fear persisted. When new monkeys were introduced — ones who had never experienced the water spray — they were still attacked by their peers if they approached the ladder. Over time, none of the original monkeys remained, yet the group continued to enforce the unspoken rule: don’t climb the ladder, though no one knew why.

This metaphor reflects a deeper economic reality for The Bahamas. For decades, we have leaned heavily on the United States as our primary trading partner. This relationship has brought stability and opportunity, yet it has also bred a form of economic dependence — an unspoken rule that our success hinges solely on US policies. The reintroduction of tariffs on imported goods — from agricultural produce to manufactured items — presents not just a financial strain, but a stark reminder: the global economic climate is shifting, and we must not remain caged by old habits.

According to data from the Bahamas National Statistical Institute (BNSI), over 85 percent of our imports come from the United States, underscoring the extent of our economic reliance. President Donald Trump’s recent revival of tariffs has once again amplified costs for Bahamian businesses, tightening profit margins for small and medium enterprises (SMEs) and challenging larger corporations alike. As global trade patterns evolve, the greatest risk lies not in the tariffs themselves but in our hesitation to seek new solutions.

Now is the time to rethink our economic ladder — to diversify our trade partners, strengthen local industries, and build a future that is both resilient and self-sufficient. The Caribbean is more than a collection of islands — it is a dynamic economic bloc. The Bahamas must deepen its engagement with CARICOM, forging stronger trade partnerships with nations such as Jamaica, Trinidad and Tobago, and Barbados. Research shows that intra-CARICOM trade has grown steadily, with a 19 percent increase from 2020 to 2023, signaling untapped potential for regional collaboration. By expanding agricultural exchanges, fostering joint tourism initiatives, and embracing technology-driven partnerships, we can circulate wealth within our region. This approach not only buffers us against US tariff shocks, but also creates an ecosystem where SMEs can access new markets and share resources, turning competition into collaboration.

Beyond the Caribbean, The Bahamas has an opportunity to cultivate relationships with Latin America, Africa, and Asia. Countries like Brazil, Nigeria, and China offer growing markets for both imports and exports. The global seafood industry, for example, is projected to reach $190 billion by 2027, with increasing demand from Asian markets. Our seafood exports — conch, spiny lobster, and snapper — hold tremendous potential for expansion. The government must actively pursue bilateral trade agreements that reduce dependency on U.S. imports, while big businesses can spearhead trade missions to build commercial bridges. This forward-thinking strategy ensures that The Bahamas’ economic reach extends well beyond familiar shores.

The surest safeguard against foreign tariffs is local production. A robust domestic economy means less reliance on external forces. Empowering Bahamian businesses to invest in manufacturing, agriculture, and technology will drive sustainable growth. Imagine a future where our hotels source 60 percent of their produce from local farms — a realistic target with strategic investment. According to the Ministry of Agriculture, less than 10 percent of food consumed in The Bahamas is locally produced. Bridging this gap requires funding for SMEs, streamlined business registration processes, and partnerships between corporations and educational institutions to create innovation hubs.

The digital economy knows no borders. For Bahamian entrepreneurs, e-commerce offers a gateway to global markets without the burden of physical exports. Platforms like Etsy, Amazon, and direct-to-consumer websites allow local artisans, fashion designers, and craft-makers to showcase their work internationally. To harness this potential, we must invest in digital infrastructure, modernize online payment systems, and offer targeted training for SMEs. A 2023 study by the Inter-American Development Bank (IDB) found that digital businesses in the Caribbean grew revenues by 35 percent during the pandemic — a clear sign that the future of trade is digital.

Breaking free from economic dependency starts with education. Preparing the next generation means embedding employability skills — creativity, digital literacy, and critical thinking — into our academic system. Big businesses must invest in workforce training programs, ensuring employees can adapt to global trade shifts. Mentorship programs for SMEs, can equip entrepreneurs with the knowledge to build scalable, resilient businesses.

The Bahamas’ future cannot rest on waiting for the US to dictate our economic fate. While our relationship with the United States remains crucial, we must break the invisible chains of dependency by embracing a bold, diversified strategy. The tariffs are not just an economic burden — they are a wake-up call. This moment challenges us to reimagine our trade relationships, invest in local innovation, and empower Bahamian entrepreneurs to chart new paths forward. Our SMEs, corporate leaders, and young visionaries all have a role to play in crafting a Bahamas that is self-reliant, forward-thinking, and unafraid to climb new ladders.

Let this be the moment we climb — not because the risks have disappeared, but because our resolve has grown stronger.

Are we ready to step up?

• Eliot Kelly is a celebrated serial entrepreneur, business consultant, and mentor, renowned for his transformative impact on aspiring leaders and global changemakers. His expertise has been showcased on platforms like CNN and BBC Three’s Be Your Own Boss, alongside features in numerous esteemed publications. A bestselling author, Eliot’s five books have been translated into seven languages and sold in 29 countries, earning accolades such as being shortlisted for Best Self-Help and Best Advice Books by The Author Academy. Recently, he was honored as an MBCC Award Nominee for Most Inspirational Person of the Year and Mentor of the Year 2023. Explore more at www.eliotkelly.co.uk or connect on Instagram @eliotkellyofficial.