Jamaica | Feb 25, 2023

Government pledges continued support for MSMEs

/ Our Today

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Dr Nigel Clarke, minister of finance and the public service (Photo: JIS)

The government has pledged its continued support to increase access to financing for micro-, small- and medium-sized enterprises (MSMEs) in the upcoming fiscal year.

This support includes a provision of $750 million contained in the 2023/24 Estimates of Expenditure that was tabled in the House of Representatives by Finance Minister Nigel Clarke.

The project which is being implemented by the Development Bank of Jamaica (DBJ), consists of four main components. This includes the Credit Enhancement Facility (CEF) for guarantees to MSMEs, supporting a fund for risk capital financing to SMEs, improving access to finance and business development services for MSMEs and project management.

There have been several physical achievements up to December 2022. These include 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 the completion of 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.

Jamaica Information Service


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