KINGSTON, Jamaica – The Jamaica government says the EXIM Bank plans to on-lend approximately J$5.5 billion (One Jamaica dollar=US$0.008 cents) to the productive sector during the financial year.
Audley ShawIndustry, Investment and Commerce Minister, Audley Shaw, told Parliament that in addition, the Ministry has earmarked J$600 million to provide affordable financing for micro, small, and medium-sized enterprises (MSMEs), which will be channeled through the EXIM Bank.
Shaw told legislators on Tuesday that just over J$200 million of the provision will be immediately transferred as a result of the closure of the Micro Investment Development Agency (MIDA), with a further J$400 million to be made available later this year.
He said funding support was being extended to MSMEs in light of the fact that “with all its potential, regrettably, this sector has traditionally been affected by access to finance.
“It is worth reiterating that the MSME sector is indispensable to achieving broad-based and inclusive growth,” he said, noting these operations represent 90 per cent of the private sector and are involved in all productive areas of the economy.
Shaw said the government was also facilitating a five billion dollar allocation from the government’s J$60 billion Social and Economic Recovery and Vaccine (SERVE) Program to the business sector, which, he said, will be administered by the Development Bank of Jamaica (DBJ).
During his presentation under the theme “‘Overcoming Challenges: Recovering Stronger and Faster,” Shaw said that the business process outsourcing (BPO) industry is on the way to returning to its pre-coronavirus (COVID-19) peak.
He said there is indication that the sector will pick up on its previous trajectory of 16 to18 per cent growth per year and create numerous jobs for Jamaicans in the near future and beyond.
“Jamaica’s advantage as a prime BPO location is secure, and the performance of local talent continues to encourage business expansion from current players and attract new interest,” Shaw said, noting that there is the potential to add approximately 3,000 new BPO jobs in the near future.
Shaw said that at the start of the pandemic, the BPO industry experienced lay-offs and loss of contracts, moving from an industry peak of 43,000 individuals employed in December 2019 to just over 35,000 in June 2020.
He said the greatest challenge faced was the sector’s need for flexibility in order to maintain jobs, particularly within the context of adhering to the government’s curfew restrictions and COVID-19 workplace protocols.
“This was quickly facilitated by the Government approving the sector as an essential service and allowing temporary work-from-home (WFH) arrangements. This has proven to be a good policy in stabilizing employment for the sector,”
In addition, Shaw said subsequent approvals under the Customs Act allowed for employees to continue to work from home.
“This significant change represents a major triumph for the industry, enabling the sector to rebound, resulting in rehires and expansion of existing clients and an increase in the progression towards higher value-added outsourcing services through the Global Service Sector Project, which is being steered by Jamaica Promotions Corporation (JAMPRO),” Shaw added.
