More Support for MSMEs

The Government will continue its drive to support the improvement of access to finance for micro, small and medium-sized enterprises (MSMEs) in the upcoming fiscal year.

This, from a provision of $750 million contained in the 2023/24 Estimates of Expenditure, now before the House of representatives.

There are four components of the project, namely enhancing the Credit Enhancement Facility (CEF) for loan guarantees to MSMEs, supporting a Fund for risk capital financing to SMEs, improving the enabling environment for access to finance and business development service for MSMEs, and project management. The project is being implemented by the Development Bank of Jamaica (DBJ).

There have been several physical achievements up to December 2022. These included the completion of work with the selected SME Fund Manager to establish and manage the SME fund, the guarantee of loans through the Partial Credit Guarantee (DBJ’s

CEF-Loan Guarantee Fund) issued to 1,348 MSMEs; and approval of an additional 580 guarantees under the support of the CEF.

This is in addition to providing support for 248 MSMEs under the DBJ’s vouchers for technical assistance; the creation of reverse factoring electronic platform to establish long-term trading relationships between buyers, suppliers and financial institutions; and the development of a risk management system for the DBJ.

For the 2023 to 2024 period, anticipated physical targets are completion of the capital injection into the SME fund; the enablement of 15 SMEs’ access to risk capital through the SME fund; and the improvement of a voucher programme for business development services through the use of new interactive technological platform.

The programme began in March 2018 and is to end in January 2024. It is funded by the International Bank for Reconstruction and Development.