$5 Billion To Assist Businesses

A sum of $5 billion has been allocated by the Government towards the provision of financing for businesses.

This is being facilitated under the $60-billion Social and Economic Recovery and Vaccine (SERVE) Programme for Jamaica.

Speaking in the House of Representatives on March 9, Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, explained that the COVID-19 Economic Recovery Task Force recommended that the Government accelerate the digital transition of the economy.

“Our economic recovery becomes more robust and more resilient and our economy becomes more efficient when our micro, small and medium-sized businesses (MSMEs) adopt digital solutions,” Dr. Clarke said.

These solutions, he noted, can include the installation of e-commerce capabilities where MSMEs can sell their products and services online; cross-border e-commerce where MSMEs can sell overseas, earning foreign exchange; digital ordering for food service and retail businesses, so that physical presence is not required; and the facilitation of online payments.

The Minister informed that the Development Bank of Jamaica (DBJ) has an existing programme that provides a $200,000 grant to qualifying MSMEs for them to invest in this digital transition.

“Under the SERVE Jamaica programme, the Government will provide: $1 billion to the DBJ, so that MSMEs that qualify for the Go Digital grant will also be eligible for up to $800,000 with two per cent interest loans to be used to support the digital transition,” Dr. Clarke said.

The provision of the grant will facilitate and enable MSMEs to display and show their products digitally online, allowing the customer to interact with the product, make a decision about whether to purchase the product, and then have the product delivered through existing or digital channels.

In addition, $2 billion has been allocated to seed two equity funds exclusively focused on providing equity financing to MSMEs in Jamaica.

Equity is permanent capital and by increasing the availability of institutional forms of equity capital “we improve the ability of MSMEs to grow and flourish,” the Minister said.

“The DBJ will issue a call for proposals for fund managers who can raise additional investor funds, and the DBJ will invest alongside these other institutional investors,” Dr. Clarke said, adding that $2 billion has also been allocated for lending to MSMEs.

The Jamaica Programme also includes $1.7 billion for Production Incentives to farmers and continued rehabilitation of roads in rural farming communities to boost recovery in the agricultural sector; $1.8 billion to expand Wi-Fi and broadband in schools, communities, and town centres, particularly in rural areas through the Ministry of Science, Energy and Technology; and $8.1 billion in targeted social support above and beyond the $16.4 billion already announced.