The latest Mayberry Investor Forum on January 15, provided an insightful analysis of Jamaica’s economic resilience and recent fiscal reforms, featuring a keynote presentation by Minister of Finance and the Public Service, Fayval Williams.

 The Minister outlined key policy changes aimed at bolstering economic growth, fostering resilience, and improving investment opportunities in Jamaica.

Addressing amendments to the Income Tax Act, Minister Williams highlighted significant changes to corporate income tax regulations regulations which she just presented to Cabinet for consideration and approval. 

Companies producing 75% or more of their energy from renewable sources such as wind and solar stand to benefit from a reduced corporate tax rate of 25%, incentivizing renewable energy production.

 Similarly, companies offering trust and corporate services, regulated by the Financial Services Commission, also stand to benefit from a reduced corporate tax rate of 25%. These regulated entities currently incur a corporate tax rate of 33 1/3%. These measures are part of the government’s broader strategy to attract new industries and enhance Jamaica’s competitiveness in the global market.

The forum also celebrated advancements in the Junior Stock Market, with Minister Williams announcing a proposal to Cabinet to increase the listing cap from $500 million to $750 million.

 “The Junior Market has been transformative for small businesses,” said the Minister, noting its compounded annual growth rate of 22% since its inception in 2009. This expansion further solidifies the Junior Market’s role as a catalyst for small business growth, job creation, and investment in Jamaica.

Mr. Christopher Berry, Executive Chairman of Mayberry Group Limited, reinforced the importance of the Junior Market, describing it as “the best program ever devised by any Jamaican government for small businesses.” A key highlight was Mayberry’s pivotal role in supporting the creation of the Junior market, listing more than 50% of its companies and enabling businesses to collectively raise billions of dollars in capital. Notable examples include Caribbean Producers Jamaica (CPJ) and the Lascelles Group of Companies, which have all graduated to the main market, reflecting their growth and financial success.

The forum also showcased the Bank of Jamaica’s (BOJ) impressive performance in managing inflation and monetary policy. For 17 consecutive months, core inflation has remained within the 4-6% benchmark range, demonstrating the effectiveness of the BOJ’s inflation-targeting framework. The Minister commended the BOJ’s independence, emphasizing its role in fostering confidence among businesses and consumers alike.

Significant strides have been made in lowering interest rates, with the BOJ’s 30-day fixed-rate certificates of deposit (CDs) recently rolled over at a reduced rate of 6.2%. Similarly, 26-month fixed-rate CDs are now averaging 6.4%, a clear indication of improved investor confidence. The recent $30 billion auction of BOJ CDs was oversubscribed by $24 billion, underscoring robust market interest. As these rates continue to decline, the Jamaican economy is poised to experience further growth and we expect to see increased activity in the equity markets to include more IPOs, and a bullish stock market, projected to grow by 20% this year according to Mayberry expert Dan Theoc.

Minister Williams also highlighted the agricultural sector’s promising outlook. Despite weather-related setbacks such as Hurricane Beryl, the sector is expected to rebound strongly, supported by innovative investments and a focus on food security and exports. These advancements aim to modernize agriculture and secure its role as a critical driver of economic growth.

Additionally, the technology sector was identified as a growth engine capable of propelling Jamaica’s economy to sustained higher growth rates. The government’s ongoing investments in cyber security and digital infrastructure, combined with initiatives such as the Prime Minister’s road improvement projects and affordable housing developments, are expected to drive inclusive development across the country. “Affordable housing solutions for young people and middle-income families remain a priority,” Minister Williams noted, emphasizing the need for accessible and modern living spaces beyond urban centres.

The discussion also focused on Jamaica’s economic resilience in the wake of Hurricane Beryl, which significantly impacted key sectors such as agriculture and tourism. Minister Williams emphasized the importance of the government’s disaster recovery framework, which includes a $5 billion disaster fund, parametric insurance, and catastrophe bonds to ensure quick recovery. “The hallmark of this government is our ability to recover quickly from disasters,” she noted, highlighting the rapid reopening of 110 schools damaged during the hurricane within eight weeks.

Looking forward, the government remains committed to achieving a 60% debt-to-GDP ratio by 2027/28, while maintaining fiscal prudence and supporting economic recovery. This discipline provides businesses with the confidence to invest, fostering growth and stability.

The forum underscored Jamaica’s strong fiscal management, with Minister Williams reaffirming the government’s focus on balanced budgets, inflation targeting, and collaboration with key agencies to maintain financial stability.