Increased Financing for MSMEs

The Planning Institute of Jamaica (PIOJ) is reporting a growth in financing support to the micro, small and medium-sized enterprise (MSME) sector.

Data from the Bank of Jamaica (BOJ) indicate that loans to local business firms increased by 18.5 per cent in 2023 relative to 2022.

Government initiatives such as the provision of funds to organisations for on-lending, tax incentives and business development programmes, alongside private-sector initiatives, played a crucial role in fostering this growth.

Addressing the opening ceremony of the Ministry of Industry, Investment and Commerce’s MSME Business Roadshow at the JUICI Empowerment Centre in Clarendon on Thursday (February 20), Director General of the PIOJ, Dr. Wayne Henry, said that growing confidence in and recognition of the impact of the sector on the country’s economic performance is driving increased financing of these industries.

“Financing to the sector remains a priority and was evidenced by increasing the value disbursements and the development of new financing products from the Government of Jamaica and private financing,” he said.

Dr. Henry noted the sector’s development continues to be guided by the Vision 2030 National Development Plan and the Associated Medium-Term Social Economic Policy Framework 2021-2024.

From a sector performance standpoint, as shown in the Economic and Social Survey of Jamaica 2023, there was growth in the number of MSMEs and an increase in total sales by businesses relative to 2022.

Sales from MSMEs rose by 1.2 per cent, totalling $207.4 billion, driven by the performance of micro and medium-sized firms across various industries, including electricity and water supply, mining and quarrying, and manufacturing.