While the Government waits for increased natural gas production and the revenues that may follow, its economic focus should be elsewhere. The Minister of Finance, the Minister of Planning and the Minister of Trade, Investment and Tourism should be concentrating on growing the non-energy sector and attracting diversified investment. That should have been the priority from day one. Had it been, Trinidad and Tobago could already be seeing stronger non-energy exports, more private-sector activity and a broader economic base.
The Government has secured an investor for the steel plant, but that project also increases demand for natural gas, further tying growth to a resource that remains constrained. If we are serious about diversification, we must pursue investments that reduce dependence on energy, not deepen it.
The proposed data centre industry is a case in point. I support data centres. The explosion of artificial intelligence (AI) will require massive computing and storage capacity, and Trinidad and Tobago should seek a place in that value chain. But the terms matter.
A data centre that depends on subsidised State electricity and competes with citizens and businesses for scarce water resources is not a good investment. Any major facility should generate its own power, preferably through renewable energy, and provide its own water and cooling systems. Otherwise, the country risks burdening already strained infrastructure while receiving limited benefits.
Done properly, data centres can position Trinidad and Tobago in a fast-growing global industry. Done poorly, they can become another drain on public resources.
The Government’s efforts to strengthen the yachting sector are far more encouraging. Trinidad and Tobago has the skills, geography and business base to build a thriving marine-services industry. Yachting supports boat repairs, fabrication, transportation, hospitality and tourism, creating opportunities for small and medium-sized enterprises across the economy.
The unresolved future of the refinery also remains important. As Nobel laureate Sir Arthur Lewis famously said, “Everything begins with the market.”
Two markets must be considered. The first is supply. Trinidad and Tobago sits in a region rich with crude oil resources, including Venezuela, Guyana, Suriname and potentially our own deepwater reserves. Securing feedstock will require pragmatic negotiations, commercial partnerships and a business model that works for all parties.
The second market is demand for refined products. This is the easier challenge. Despite the global energy transition, demand for transportation fuels and other refined petroleum products remains strong. A strategic investor with established markets could make the refinery commercially viable while ensuring reliable product sales.
Digital technology represents another major opportunity, but progress has been too slow. Trinidad and Tobago has signed memoranda with India on the India Stack framework, entered agreements with OpenAI for educational development, and created a Ministry of Artificial Intelligence. These are positive steps, but the country cannot afford to remain at the stage of announcements and intentions.
Five actions are now required.
First, move beyond memoranda and sign binding implementation agreements with India. Second, establish a comprehensive digital identity system for every citizen and legal resident. We have discussed digital ID for years; the time for debate has passed.
Third, accelerate the development of a modern digital payments system similar to India’s UPI platform. Fourth, create a secure data-exchange architecture that allows government agencies to share information efficiently while protecting citizens’ privacy. Fifth, invest heavily in training local people to operate, improve and build these systems.
Technology transfer is just as important as technology adoption. Trinidad and Tobago cannot become merely a consumer of imported digital products. We must develop the local expertise needed to manage and innovate within these systems. India has already offered support through South-South cooperation. We should seize the opportunity.
Ultimately, diversification must focus on sectors where Trinidad and Tobago has genuine potential for growth and competitiveness: food security and agro-processing, green energy, digital services, tourism, the creative industries, and export-oriented small and family businesses.
Economic diversification is no longer an option; it is a necessity. An investment-rich, export-driven non-energy sector will create jobs, generate foreign exchange and widen opportunities for citizens. Just as importantly, it will reduce the economic and political risks associated with fiscal reform and state-sector restructuring.
Natural gas may provide temporary relief. Diversification is what will secure the country’s future.
