A long-awaited boost for one of the country’s key economic sectors

Following an ambitious seven-pillar strategy, the Dominican Republic is investing in a more technological, cost-efficient, sustainable and export-oriented agricultural sector.

“Our main goal with this administration is to produce more with less”, states Minister of Agriculture Mr. Limber Cruz. While the Dominican Republic is recognized for its world-class agricultural products, a special focus on the agricultural sector was long overdue. The Ministry’s strategy is based on seven lines of action: financing, water, local roads, training and technical assistance, research, safety and commercialization.

Securing government financing, the Ministry received over USD $80 million at a zero-tax rate, in addition to normal rate credits, benefiting thousands of small and medium-sized producers. They started implementing short-term water projects like water wells, reservoirs, and drip irrigation systems; they are working on the restoration and completion of over 1000 km of roads to transport rural products; and they are offering thousands of virtual and on-site courses supported by a digital platform connecting technical experts and producers with the Ministry.

Implementing a double commercialization approach, for the internal trade they work with platforms like the Price Stabilization Institute (INESPRE) and Merca Santo Domingo to guarantee fair prices for both producers and consumers; and for the external markets, they aim to increase agroexports by offering a great price-quality ratio thanks to the country’s free trade zones and agreements, and their internationally certified organic products. Consequently, agroexports have grown, trade to the United States increased by 37%, and new markets are opening with the exportation of cigars, coffee and fruits to the Middle East.

With all these initiatives, the government’s plan to relaunch agriculture as one of the main pillars for economic growth looks highly promising. Right now, as Minister Cruz states, “the biggest challenge for the agricultural sector is to penetrate large markets without forgetting about local supply. We want agriculture to be more efficient, and since we are here, we have accomplished a lot.”

Actively supporting Dominican productive sectors

The Ministry of Industry and Commerce’s determined support has directly contributed to the outstanding dynamism and growth of the country’s industry.

With a Central Bank-anticipated growth of 8 to 9% and 5.5% GDP by the IMF, international reserves at an historical record of US $12,611.6 million, FDI increase of 49.4% and a 14.3% manufacturing and industrial sector growth, the Dominican Republic has one of the most dynamic and fastest growing economies in the region. Behind those numbers, the policies and programs of the Ministry of Industry and Commerce have been crucial.

In 2021, the Ministry enacted several laws to boost productivity and foreign investment like the Customs Law; the Regulatory Improvement and Simplification of Procedures; or the Special Zone for Comprehensive Border Development. They also launched the 2030 Digital Agenda to promote the country’s digital transformation; the project “Dispatch in 24 hours”, to reduce container merchandise delivery times; and approved 71 free zone companies and 5 industrial parks with investments of US $146.27 million and US $42.67 million respectively.

Moreover, the Ministry plans to relaunch the free zone sector to improve special regime permissions, promote productive chains and investment, strengthen infrastructure and access to financing. The Dominican Republic is one of the world’s pioneers in implementing the free trade zone model, and in the last 10 months these zones registered record export numbers, representing 61% of the total exported, about 173,000 direct jobs, and a 30% growth, with 77 free zone parks and more than 700 companies.

Currently 70% of their exports go to Italy, England, Belgium, and the Netherlands; and 30% to the United States, a traditionally low-price market where the high-quality organic niche is prospering. Furthermore, once the new plant starts producing, they expect to add the Chinese, Arab and Japanese markets. No wonder they are excited. Like Mr. De la Rosa states, “this organization is my greatest satisfaction: seeing how far it’s gone, how this sector had never been this organized, and the fact that it became a global leader, it all makes us very proud.”