Senator Aubyn Hill | PPPs drive expansion and debt reduction

Senator Aubyn Hill, the Minister of  Industry, Investment and Commerce, speaking at the Jamaica Stock Exchange’s 21st Regional Investment and Capital Markets Conference, which took place at the Pegasus Hotel in Kingston last month, made a clarion call for more companies to join hands with the public sector to build a more resilient economy post-Hurricane Melissa.

He called on companies to invest in building a better Jamaica and gave reasoned arguments why this should be the way forward. He encouraged companies to list on the JSE in order to obtain capital to grow and expand their operations.

Below is the full text of his presentation:

I am pleased to be here as the Minister of Industry, Investment and Commerce, Jamaica’s Business Ministry, at the Jamaica Stock Exchange’s 21st Regional Investment and Capital Markets Conference.

We are here today to celebrate, arguably the single most important invention of western capitalism – Limited Liability Company. And right next to the limited liability company is a well-ordered and regulated stock market.

Bloomberg ranked the Jamaica Stock Exchange as the world’s best- performing stock market twice in the past decade, in 2015 and 2018, out of 94 national benchmarks. The Junior Market has become a powerful instrument for inclusion, innovation, and entrepreneurship. In Jamaica, the Junior Stock Exchange identifies and supplies capital to Jamaican entrepreneurs with innovative ideas and good management skills, but who were without inherited wealth or security to attract investors and lenders.

Over the past five years, the Junior Market has provided capital to growing Jamaican companies:

• J$4.47 billion in 2021
• J$1.89 billion in 2022
• J$834 million in 2023
• J$900 million in 2024
• J$500 million in 2025.

 In the same period, 12 new companies listed, and the market grew from J$119.7 billion to J$135.55 billion.

Both the Junior and Regular Stock Exchange in Jamaica have been a real source of investor capital for entrepreneurs who needed it but could not get it elsewhere.

International support package

As you are aware, Jamaica has secured a US$6.7 billion package from multilateral partners for post-Hurricane Melissa recovery. US$2.4 billion is specifically earmarked for private sector investment, mobilised through the International Finance Corporation (IFC) and Inter-American Development Bank – IDB Invest.

Government spending is approximately US$3-4 Billion. It will be used to:

1. Build roads that are properly located and constructed with proper drainage and utility connectivity to future-proof and support growth of the economy and society.
2. Build better hospitals to fit current needs and future-proof for our health infrastructure with Real Resilience into the future.
3. Reconstruct our Government and buildings following the required and upgraded building codes to ensure resilience into the future. The new parliament and parliamentary oval at Heroes Circle could be a good start.
4. The same kind of resilience must be built into our telecommunications and connectivity systems.
5. To ensure that our investment spend – the vast majority of that future spend will be for investment (not just for consumerism as governments before this Andrew Holness Administration have done in the past). We will spend according to a clearly defined investment strategy. National Reconstruction and Resilience Authority (NaRRA) is established by the Prime Minister for this reason.

Public – Private Partnership

To turn investment into real development, the Andrew Holness Administration is working with the private sector to build and operate key infrastructure.

The Kingston Container Terminal concession modernised the port, increased efficiency and throughput, and moved risk from the Government to the private operator.

 Another example is Wigton Windfarm that brought private investment into renewable energy without adding to public debt.

• The Norman Manley International Airport public‑private partnership. The Government entered a long‑term concession with a private operator to finance, modernise, and operate the airport.
• Ms. Denise Arana, General Manager of PPPs and Privatisation at the DBJ. has been pivotal in this framework’s advancement.

Focus on services

Jamaica does not have a population of 100 million people like Mexico. 

With only 3 million people and a clear intention to become a wealthy country, we must use service, technology, innovation, and disciplined efficiency to achieve that wealthy objective. High-paying financial services and fintech represent Jamaica’s next major export opportunity.

 These areas allow Jamaica to convert strong institutions and regulations into exportable value. The framework, led by the Jamaica International Financial Services Authority (JIFSA), includes the Segregated Accounts Companies Act, including Incorporated Segregated Accounts Companies.

Role of Banks

Financial institutions must actively encourage their clients to take on bigger responsibilities, to build the engineers, technology, and management capacity necessary to execute large projects here in Jamaica. Identify middle-order companies such as supermarkets, construction and trucking companies, pharmacies, to encourage them to put themselves on the stock market where they can get additional capital.

Our class one contractors must form stronger consortia of say 3 or four companies capable of handling internationally recognised Engineering, Procurement, and Construction (EPC) contracts right here in Jamaica, with the aim to take on similar contracts in the Caribbean and Latin America.

The Bank of Jamaica must ensure our financial institutions are strengthened and positioned to expand locally and regionally – and continue to operate on a level playing field.

Conclusion

The capital is available. The frameworks are in place. The opportunities are right here in Jamaica. I invite all partners, investors, and businesspeople here today to join inthis noble national effort to cement our political independence withrobust and sustained economic independence.

Our friends have helped, but will not be able to do it for us; it is we Jamaicans who must secure our economic independence! That is my idea of Sustainable Development!

Distinguished ladies and gentlemen, our really true friends. Join us on this noble journey.

Source: Our Today