Businessuite News24
Global Expectations: Predicting Economic Trends in an uncertain Global Environment – implications for Jamaican Companies.
Integration and globalization have made it impossible for countries to avoid the effects of changes in the international environment. An example of this is the recent and commonly referred to 2007-2008 financial crisis which affected majority and possibly all the world. The breakdown within the global environment within the two years has encouraged countries and particularly businesses to take key note of the economic trend within the uncertain global environment.
International markets fluctuate frequently and Jamaica, being a developing economy, is at risk of being greatly affected by any severe negative shock in the global environment. Careful monitoring of global activities can help the country alleviate the impact of negative externalities and reap the benefits from positive externalities.
There are a few concerns that is taking place on the international scene which has been of concern to developing nations such as ours. Over the past two years events such as Brexit, decisions made by the Trump Administration on international relations, Venezuela’s crisis and the never-ending conflicts in the middle east have increased concerns globally.
On 23 June 2016, The British government held a referendum on the issue of Brexit of which the majority voted to leave the European Union.
The UK’s sudden decision to leave the EU came as a shock to many. The United States as well as other countries were concerned about the possible shock waves that may stem from the exit. Due to the linkages of banks across the world, there were concerns about the expected instability it may have caused in the market. Some critics said that this loss could push Britain into a recession. The initial effect was a loss of about 9 percent in the value of the British pound one week following the vote. It is expected that Britain could experience more fallout as time progresses. The area of most concern is in trade and trade policies. The EU is UK’s biggest trade partner, however, with their decision to leave, it is expected that new policies will be drafted. Caribbean nations, such as Jamaica, are eagerly watching the international scene to see any further impact that Brexit will have as a nation and on us as a region.
When the United States elected the Donald Trump administration it initially resulted in uncertainty, which caused leaders worldwide to think about the possible global consequences of his policies based on his views expressed during his election campaign.
In the Caribbean, many have wondered how his decision on immigration and globalization would impact the countries. The US is the largest trading partner in the Caribbean and remittance contributes significantly to the foreign currencies in the region, hence any decision relating to trade policies and migration will have some amount of impact regionally. On January 25, Donald Trump signed an executive order that reinstates the Secure Communities Programme to target undocumented immigrants. The order also directs the State Department to withhold visas or take other measures to ensure that countries take back their undocumented immigrants. What this means is that illegal Caribbean migrants will be sent back to their homeland, which could possibly lead to a large amount of deportees, which many countries cannot at this time facilitate. The Trump administration has also proposed a repatriation plan that is expected to bring in approximately US$2.6 trillion. US corporation taxes are expected to be lowered, which may have a significant impact on US investments in other countries.
It goes without saying that oil is an essential element in an economy. Hence the price of oil will affect significantly utility, services and commodity prices. The recent Venezuelan crisis and the continuing war in the Middle East has raised concern about their impact on exports. Of the top ten world oil exporters two are middle eastern countries which are, Saudi Arabia at number one and Iraq at number three while Venezuela is at number nine.
Above is graph reflecting the movements of the US$ per barrel prices of Dated Brent and the West Texas Intermediate over the period January 2016 to June 2017. There was a noticeable increase moving from November 2016 to December 2016 and prices have generally have been relatively higher that the prices in the early months of 2016. An upward movement like this could cause oil prices to surge resulting. One recommendation is to continue with the oil hedge as oil prices can increase at any time. BM
Businessuite News24
JA$2 Billion in Support to Jamaican MSMES
“Small business owners have said to me that opening a bank account for their business is difficult. They feel there’s no difference between the requirements for them as MSMEs, as opposed to a very large institution,” she noted.
The Development Bank of Jamaica (DBJ) has been allocated $2 billion in the 2025/26 Estimates of Expenditure to support funding to the micro, small and medium-sized enterprise (MSME) sector.
Minister of Finance and the Public Service, Hon. Fayval Williams, made the disclosure while delivering the opening presentation in the 2025/26 Budget Debate in the House of Representatives on Tuesday (March 11).
“It (the DBJ) will continue to pursue innovative means of mobilising funding and leveraging private-sector investment and expertise through its venture capital programme, as well as public-private partnerships and privatisation transactions,” she informed.
Mrs. Williams noted the Government’s commitment to the MSME sector, which includes an estimated 422,000 registered small businesses, generating 80 per cent of the jobs in the economy.
Approximately 1,136,240 persons are employed by MSMEs.
The Minister acknowledged that there are several issues facing the sector, including lack of equitable access to financing, high interest rates and cumbersome requirements for opening bank accounts.
“Small business owners have said to me that opening a bank account for their business is difficult. They feel there’s no difference between the requirements for them as MSMEs, as opposed to a very large institution,” she noted.
She pledged to work with Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, to reduce the requirements for the entities to open bank accounts.
The Finance Minister noted, further, that Government will be increasing the General Consumption Tax (GCT) exemption for small businesses from $10 million to $15 million.
By: Donique Weston JIS
Businessuite News24
Jamaica Open For High-Value Agricultural Investments – Minister Green
“Now is the time for high-value agricultural investment, right here in Jamaica. Things that we produce in Jamaica are sought after all over the world. As such, we do believe there are significant opportunities now in agro processing,” Mr. Green said.
Businessuite News24
Powering the Future: How Tech and Policy Are Driving Explosive Growth in Energy Storage, Renewables, and EVs
Businessuite Women
Corporate Movements: Margaret Campbell Appointed CEO of GKMS Group; Lee-Anne Bruce Named COO
GraceKennedy Limited (GK) is pleased to announce leadership changes at GraceKennedy Money Services (GKMS) as part of its ongoing succession plan and strategic talent development and deployment.
Effective April 1, 2025, Margaret Campbell will assume the role of Chief Executive Officer (CEO) of the GKMS Group. Campbell, who has worked with GKMS for over 25 years, has served as its Chief Operating Officer (COO) since 2020. She joined GKMS in 1996 and has held several leadership roles during her tenure including, Financial Controller, Chief Financial Officer (CFO), and Country Manager for GKMS Jamaica. A Fellow Certified Chartered Accountant, Campbell also holds an MBA in Finance from the University of Manchester and serves on several GK subsidiary boards. She is also the current President of the Jamaica Money Remitters Association.
Frank James, Group CEO of GraceKennedy, expressed confidence in Campbell’s leadership, stating, “Margaret has demonstrated strong leadership and an unwavering commitment to providing exceptional value and convenience to our customers across Jamaica and the wider Caribbean, in keeping with our vision of being the number one Caribbean brand in the world. I have no doubt she will continue to drive GKMS forward.”
Grace Burnett, CEO of GKFG, added, “Margaret’s industry expertise and strategic approach make her the ideal person to lead GKMS into the future. Her experience and passion for operational excellence will be instrumental as GKFG continues to grow and evolve.” The announcement of Campbell’s appointment comes as Burnett, who has led GKMS since 2019, prepares to retire from GraceKennedy later this year.
Lee-Anne Bruce
Additionally, GraceKennedy has named Lee-Anne Bruce as the new COO of the GKMS Group, also effective April 1, 2025. Bruce holds a bachelor’s degree from the Frank G. Zarb School of Business at Hofstra University and is a Certified Anti-Money Laundering Specialist. With over a decade in senior leadership roles at GK, she has served as Group Chief Compliance Officer, Chief Risk Officer, and most recently, Chief Audit Executive. She began her career at GK in 2003, when she played a key role in GKMS’ expansion into the Eastern Caribbean.
Margaret Campbell, incoming GKMS CEO, welcomed Bruce’s appointment, stating, “Lee-Anne is no stranger to GKMS and her extensive experience and understanding of our business will undoubtedly be invaluable in her new role.”
In light of the leadership changes at GKMS, Judith Chung, Group Chief Compliance Officer & Senior Legal Counsel, will act as Chief Audit Executive of GraceKennedy Limited, while Jason Bailey, Head of Risk, will temporarily assume responsibility for the Compliance portfolio.
Scotiabank Group Jamaica Continues To Perform Well
The LAB’s Strategic Shift: Embracing Content Creation Amidst Evolving Financial Landscape
Jamaica Broilers Group Faces Major Financial Setback as US Operations Struggle; Stephen Levy Resigns
Businessuite 2023 Top 100 Caribbean Companies – US$ Revenue
Jeffrey Hall Is Set To Be One Of The Most Powerful Men In Corporate Jamaica And The Caribbean. So, Who Is He?
Which Company Has The More Sustainable Business Model….Edufocal or ICREATE and Why?
JMMB Group Limited Investor Briefing – November 16, 2023
Jeffrey Hall Is Set To Be One Of The Most Powerful Men In Corporate Jamaica And The Caribbean. So, Who Is He?
A conversation with Marcel Anderson Group Chief Executive Officer and CTO at KYO Group on the disruption they are bringing to International Fast Cargo Transportation from the United States to Jamaica.
-
Businessuite News244 weeks agoPowering the Future: How Tech and Policy Are Driving Explosive Growth in Energy Storage, Renewables, and EVs
-
Businessuite Markets2 weeks agoR.A. Williams Distributors Experienced 8% Decline In GP Margin Due To Lower Margins On Government Sales
-
Businessuite Markets1 week agoListing GraceKennedy Financial Group on the JSE
-
Businessuite Markets4 days ago
Scotiabank Group Jamaica Continues To Perform Well
-
Businessuite Markets4 days ago
Jamaica Broilers Group Faces Major Financial Setback as US Operations Struggle; Stephen Levy Resigns
-
Businessuite Markets4 weeks agoSagicor Group Jamaica Identifying Strategic Growth Opportunities.
-
Businessuite Markets4 weeks agoTropical Battery Company First Quarter FY2025 Profitability Challenged
-
Businessuite Women4 weeks agoCorporate Movements: Margaret Campbell Appointed CEO of GKMS Group; Lee-Anne Bruce Named COO