The Development Bank of Jamaica (DBJ) has increased its disbursement of funds to micro, small and medium-size enterprises under the Innovation Grant Fund (IGF) with eight medium-sized businesses becoming the latest beneficiaries.

At a signing ceremony held at DBJ’s offices on September 25, the bank awarded grants to the eight companies, representing the fourth cohort of beneficiaries under the IGF, amounting to J$160 million.

The eight companies that received grants were: Esirom Limited, Saddle Energy Limited, HDB Manufacturers & Distributors, Medical X-Ray Institute Limited, Sunshine Dialysis Centre Limited, Clubhouse Brewery, Adtelligent Limited, and BookFusion Limited.

The DBJ says that the businesses awarded the grants come from a broad range of industries, thus highlighting the diverse needs of Jamaica’s business landscape. With this round of funding, the business entities will be able to support the development and commercialisation of new products, services, processes and business models aimed at driving innovation and business growth in Jamaica.

During the handover ceremony, David Wan, acting managing director of the DBJ, restated the bank’s commitment to “ensuring that Jamaican MSMEs are equipped with the knowledge, tools, and expertise needed for exponential growth”, adding that the Innovation Grant Fund is just one of the tools in its kit to help businesses realise success.

The IGF is a significant component of the DBJ’s strategy to build a robust entrepreneurial ecosystem in Jamaica, with medium-sized businesses as the main focus. With these grants, the companies access the financial support needed to scale their operations and introduce innovative products and services to the market.

The IGF forms part of the DBJ’s flagship entrepreneurship development programme Boosting Innovation, Growth and Entrepreneurial Ecosystem (BIGEE), with its mission being to foster innovation and growth within Jamaica’s medium-sized enterprises.

BIGEE was launched in 2020 through a US$25-million loan agreement between the Government of Jamaica (GOJ) and the Inter-American Development Bank (IDB), and a non-reimbursable grant of US$8.2 million from the European Union.

Lorenzo Escondeur, chief of operations at IDB Jamaica, reaffirmed the IDB’s support for Jamaica’s economic growth, as a key partner of the BIGEE programme.

“The BIGEE programme is a powerful tool for driving innovation and job creation in Jamaica. By supporting businesses with the funding and resources they need, we are helping to create homegrown solutions that keep Jamaica competitive on the global stage,” he stated.

Speaking to the reach of the IGF in particular, Christopher Brown, programme manager of BIGEE, explained that “Since inception, the IGF has supported 31 companies – twenty three (23) businesses from Cohorts 1 – 3, plus this new Cohort of eight (8) businesses. This has been made possible through our partnership with the IDB and EU.”

He added: “Through continuous monitoring and measurement, we have seen indicators of growth by the 12 companies from Cohorts 1 and 2 with 31 per cent and 22 per cent annual growth in revenue and labour force respectively. We are expecting that these companies will continue to grow their revenues and increase the number of people hired for the next couple years.” 

In 2023, the Innovation Grant Fund introduced two focus areas, climate-focused projects and women-owned businesses, as part of its strategy to support sustainable development for Jamaica and its entrepreneurial ecosystem.

As of September 25, 2024, the DBJ’s total investments in innovation have reached $850 million with $550 million in grants and $300 million in private funding; 39 per cent of projects funded are women-owned businesses.

In terms of disbursement by sector 20 per cent of funds have been allocated to health care, 20 per cent to technology, 13 per cent to climate resilience, and 27 per cent to manufacturing/agriculture.

Commenting on the diversity of the current cohort of IGF beneficiaries, Wan noted that it “highlights the forward-thinking spirit necessary for Jamaica to thrive in an ever-evolving global market.”