Economy of Dominica - Secondary Industries

Secondary Industries

Dominica's small manufacturing sector is almost entirely dependent on agriculture, and the island has built up a handful of successful industries specializing in soaps and other agricultural byproducts. The largest manufacturer is Dominica Coconut Products, controlled by Colgate-Palmolive, which produces soap from coconuts. The factory has an agreement to sell an estimated 3 million bars of soap each year to Royal Caribbean Cruise Lines. Dominican soap is also exported throughout the region, but has recently encountered intensified competition from other regional producers, especially in the important export markets of Jamaica and Trinidad and Tobago.

There are four plants to process limes and other citrus fruits; two bottling plants; two distilleries; four small apparel plants; and four small furniture factories. Dominica exports water to its Caribbean neighbors; shoes, cement blocks, furniture, and soap and toiletries are also exported. Home industries produce some leather work, ceramics, and straw products.

Since the 1990s, the small manufacturing sector has been expanding at a modest pace, including electronic assembly, rum, candles, and paints. The Trafalgar Hydro Electric Power Station is now operational, making the island virtually energy self-sufficient. Industry accounted for 23% of GDP in 2001.

Dominica has not yet been able to attract significant numbers of foreign manufacturers, partly because its wage rates are relatively high and partly because its infrastructure is not suited to high-volume manufacturing. Like other islands, it seeks to attract investors with tax concessions and other financial inducements, but several offshore manufacturing plants have closed after their duty-free concessions expired, normally a 10-year span.