Minister Dunn commends NPIC work in developing the MSME Sector

Minister of State in the Ministry of Industry, Investment and Commerce (MIIC), Hon. Norman Dunn, speaking at the virtual Quarterly Meeting of the MSME National Policy Implementation Committee (NPIC), at the Ministry’s New Kingston offices on Thursday, January 14, 2021. Others from left are Analyst/Researcher (Acting), Micro Small and Medium-sized Enterprise (MSME) Division, Regina Reynolds; Small Business Financing Specialist, MSME Division, Karen Hylton; Principal Director, MSME Division, Oral Shaw; Chief Financial Officer, Micro Investment Development Agency (MIDA), Beris Pitter; Promotions and Outreach Manager, MSME Division, Angela Hamilton; and Administrative Assistant (Actg), MSME Division, Shannika Gayle, of the MIIC. The meeting highlighted presentations showcasing loan opportunities for MSMEs, the vision of the new President of the Small Business Association of Jamaica, Government’s assistance in realizing the vision, updates on the activities of the NPIC Sub-Working Groups, and on the new developments within the MSME sector.

State Minister in the Ministry of Industry, Investment and Commerce (MIIC), Dr. the Honourable Norman Dunn has commended the work done so far by the National Planning Implementation Committee (NPIC) in realizing 23 per cent of its target in its first year of a 5-year programme to implement the MSME and Entrepreneurship Policy 2018.

The NPIC was established by the MIIC to assist the government in developing the micro, small and medium enterprise (MSME) sector in Jamaica. In its first year of operation in 2019/2020, the NPIC implemented 23 per cent or 44 of the 193 policy activities that are slated for implementation over the 5-year life of the programme. 

Addressing members of the committee during its first Quarterly (virtual) meeting for 2021 on January 14, Minister Dunn said, “I wish to commend the work that has been accomplished so far by this committee in achieving more than 1/5th of its deliverables within the first year”.

He highlighted the importance of MSMEs in helping to develop the Jamaican economy, adding that, as at the end of 2019, there were approximately 424,059 MSMEs in Jamaica employing 31 per cent of the nation’s labour force.  “The MSME sector is at the forefront of the government of Jamaica’s strategy to achieving economic growth and increasing GDP”, Dr. Dunn said.

The Minister pointed out however, that despite the obvious value of the sector to the economy, MSMEs continue to be confronted with many challenges, including difficulty in accessing funds from financial institutions and the high level of informality among operators.  He also referenced the devastating impact of the COVID-19 pandemic and the recent heavy rains as additional challenges to the sector and noted that MSMEs are important in driving the nation’s recovery.

Minister Dunn therefore urged the NPIC to “think big” and to come up with innovative ideas in addressing the needs of the sector.  “I am bullish about the prospects for the year 2021”, he said. “I believe that 2021 will be the year for growth, irrespective of what is happening, and I believe that this committee sits at a pivotal point in leading the charge for the growth that we can achieve in this country”.

Among the matters deliberated by the committee was the vexed issue of access to financing for MSMEs. As such, presentations from Sagicor Bank and MO Technologies highlighted products and services that are designed to assist MSMEs in this regard. Sagicor Bank’s SME representatives, Michael Sutherland and Terry-Ann Wood, spoke to the bank’s SME hub which is a service geared towards helping small businesses to be bankable. They highlighted other financial products of that institution to include a point-of-sale unsecured loan programme, a low interest rate credit card offer with a six-week moratorium and Sagicor Advance for medical businesses to access funding.

Mr. Philip Armstrong of MO Technologies spoke to his company’s unsecured loan product to farmers using non-traditional credit variables to determine the credit risk of proposed borrowers. Mr. Armstrong pointed out that this model has allowed MO Technologies to pre-approve significantly more borrowers than traditional banking institutions. 

Newly-installed president of the Small Business Association, Mr. Michael Leckie also made a presentation to the meeting. He revealed his plans for members of the organization, which include, the creation of an MSME listing, a crop insurance scheme for farmers and a programme to formalize farmers.

The NPIC, which is managed by the MSME Division within MIIC is comprised of a diverse representation of persons in the public and private sectors, NGOs and academia. The committee’s efforts are managed through four working groups, namely: Business Enabling Environment, Agriculture and Finance, Social Enterprise and Business Development and Capacity Building.

Commenting on the diversity of its membership, Dr Dunn expressed high expectation for what the committee can achieve. “Notwithstanding your accomplishments so far, my expectation is that we would complete the task at hand early, and then set ourselves some additional tasks to reach for”.  In giving his charge to the group to take their efforts even higher, Dr. Dunn asserted that, “The government of which I am a part is very anxious for us to achieve the dreams and prosperity of every Jamaican”.

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