Acting PS Budhan Calls for Increased MSME Financing

Acting Permanent Secretary in the Ministry of Industry, Agriculture and Fisheries, Reginald Budhan is calling for an explosion of small business and smallholder activities across the region.
He was speaking on September 26 at the opening session of a two-day Regional Agri-Value Chain Forum organized by the Inter-American Institute for Cooperation (IICA) and held at Courtleigh Hotel, Kingston.
“If we are really serious about facilitating access to credit, then the time has surely come for us to put our money where our hearts are. In plain language, as they say ladies and gentlemen – talk is not good enough.”
The Acting Permanent Secretary noted that the perceptions of serious lending risks and high costs of service delivery, among other limitations, are well-known barriers to the financing of smallholders. These barriers, he said, make it difficult and sometimes impossible for farmers to get a loan, thereby denying them a chance to grow their businesses and incomes.
Mr. Budhan noted that under the Agricultural Policy Programme (APP) funded by the European Development Fund (EDF) both lenders and borrowers can benefit in areas such as:
 Electronic tools to capture and manage agricultural development initiatives and business-related information in CARIFORUM

 Contract farming for onions and Irish potatoes

 Strengthening the capacities of small producers so that they can utilize appropriate sustainable production systems and technological (R & D) packages for certain commodities

 Promoting linkages between primary and value-added technologies and complementing on-going value-added MSME initiatives, which also involves training in value-added processes and product development

 Strengthening the capacity of MSMEs to increase the volume, quality, standards and differentiation of local value-added products, with particular focus on utilizing local or regional root crops and ruminants

 Expanding the product base of value-added products among member countries, and of course, cassava bread and cassava value added products

 Strengthening and facilitating regional dialogue
Mr. Budhan said he hoped the Forum would help to forge practical solutions in developing financing mechanisms that will not only increase access to credit for our MSMEs in general, but will also facilitate small agricultural producers, build value-added industries, and create new businesses eventually leading to more exports from the region.
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