More than 100 informal operators in the micro, small and medium-sized enterprise (MSME) sector will benefit from support to transition to formal status.
Minister of Industry, Investment and Commerce, Hon. Audley Shaw, said that the International Labour Organization (ILO) has provided a US$70,000 grant to undertake the formalising project.
He said that the initiative will be implemented through the Jamaica Business Development Corporation (JBDC).
The Minister, who was making his 2021/22 Sectoral Debate presentation in the House of Representatives on Tuesday (May 11), said it is estimated that approximately 43 per cent of the Jamaican economy operates informally.
He noted that informality limits the ability of businesses to access loans, expand their operations and export products and services.
Meanwhile, the Minister announced that more than 400 loans valued at approximately $4.5 billion were disbursed to over 100 MSMEs during the last financial year.
He noted that the loans were granted through the National Export-Import Bank of Jamaica (EXIM Bank).
“Furthermore, over 60 of EXIM’s clients were provided with the opportunity to save businesses through loan restructurings and payment holidays to the tune of $973 million,” he said.
The EXIM bank provides a wide range of financing instruments for the country’s productive sector and aims to assist in growth that contributes to the development of the wider national economy.