The Government of Jamaica has announced an increase in the General Consumption Tax (GCT) exemption threshold from $10 million to $15 million for micro, small and medium-sized enterprises (MSMEs).

Minister of Finance and the Public Service, Hon. Fayval Williams, in opening the 2025/26 Budget Debate in the House of Representatives on March 11, said the change is aimed at supporting the growth and development of small businesses.

Mrs. Williams said the latest figures from the Small Business Association of Jamaica (SBAJ) show that there are an estimated 422,000 registered small businesses in Jamaica, generating 80 per cent of the jobs in the Jamaican economy.

“This means 1,136,240 persons in our workforce are employed by MSMEs,” the Finance Minister noted.

In addition, the Minister said the Government has allocated $2 billion to support MSMEs.

“[The sum of] $2 billion is in the Budget for the Development Bank of Jamaica (DBJ) to allow them to continue to facilitate sustainable growth of start-ups and MSMEs, and to continue to support women-led initiatives, entrepreneurship training, including digital skills bootcamp,” she outlined.

The DBJ is a public body in the Ministry of Economic Growth and Job Creation that channels financing to MSMEs, as well as large projects, to facilitate economic growth and development.

“It 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,” Mrs. Williams said.

Jamaica is being touted as a prime destination for high-value agricultural investments.

Minister of Agriculture, Fisheries and Mining, Hon. Floyd Green, highlighted that the country is at a pivotal stage in its transformation, pointing out that the Ministry’s key objectives are to drive investment, expand trade, and strengthen food security.

“To achieve this objective, the nation must collaborate with its international partners,” he told members of the Diplomatic Corps on Wednesday (March 12).

Minister Green said Jamaica, having seen a declining debt-to-GDP ratio and myriad other positive economic outcomes in recent years, is well positioned to take advantage of global opportunities.

He was speaking during a Ministerial Briefing at the Ministry of Foreign Affairs and Foreign Trade in downtown Kingston, which formed part of activities marking Diplomatic Week 2025.

Mr. Green said while Jamaica currently benefits from several trade arrangements with its regional partners, the Government wants to expand the global footprint in trade and investment.

“What we want to see from my Ministry’s perspective [is] how we can leverage these arrangements to do much more. As such, we want to work with you (the diplomatic corps) to drive trade expansion, to reduce market barriers and to facilitate direct connections with importers and distributors so that we can expand our exports,” the Minister outlined.

He added that there are significant investment opportunities and win-win proposals for Jamaica and its partners.

“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.

The Minister emphasised that one area now ripe for investments is orchard crop farming.

“We do have land available for investment in orchard crops. In fact, we’ve developed our first ever mango orchard, or mango agro park, where we invite private-sector investors to come in and establish 50-acre blocks of mango farms. That is going well. In fact, we’ve already established about 200 acres. We want to establish another 300 acres in this financial year,” the Minister outlined.

Mr. Green also touted opportunities in livestock farming and the dairy industry, noting that Jamaica is looking to leverage partnerships in this area.

“We want to facilitate greater bilateral discussions between you and your home countries with Jamaica’s agricultural sector around investment… around connecting investors with local projects that can accelerate economic growth,” he told the diplomats.

Mr. Green pointed out that Jamaica’s collaboration with its international partners has been instrumental in advancing the nation’s economic agenda.

By: Donique Weston, JIS

Photo: Yhomo Hutchinson

The energy storage, renewable energy, and electric vehicle (EV) industries are experiencing significant growth, driven by technological advancements and policy support.

Energy Storage Sector

The global energy storage market is projected to expand from USD 416.02 billion in 2025 to USD 841.19 billion by 2033, reflecting a compound annual growth rate (CAGR) of 9.2% (Straits Research, 2024). This growth is primarily attributed to the increasing integration of renewable energy sources and the need for grid stability. In the United States, battery energy storage capacity is expected to nearly double by 2024, reaching over 30 gigawatts (U.S. Energy Information Administration, 2023).Mission-Critical Energy Storage Battery Pack Sector.

Mission-Critical Energy Storage Battery Pack Sector

The demand for mission-critical energy storage solutions is intensifying, particularly in sectors requiring an uninterrupted power supply, such as data centres and healthcare facilities. The U.S. battery energy storage system market is anticipated to witness a CAGR of 30.5% from 2024 to 2030, reaching USD 4.4 billion by 2030 (Grand View Research, 2023). This surge is driven by the need for reliable backup power and the integration of renewable energy sources into critical infrastructure.

Renewable Energy Industry

The renewable energy sector is undergoing rapid expansion. In 2024, the United States added 48.2 gigawatts of solar, wind, and battery storage capacity, a 47% increase from the previous year (The Guardian, 2025). Declining costs and supportive policies like the Inflation Reduction Act 2022 propel this growth. Globally, China has made significant strides, adding clean energy generation in the first half of 2024, equivalent to the entire electricity output of the United Kingdom for the previous year (The Guardian, 2024).

Electric Vehicle Industry

The EV market is expanding swiftly. In 2023, electric cars accounted for approximately 18% of all vehicles sold globally, up from 14% in 2022 (International Energy Agency, 2024). Projections indicate that by 2024, 25% of all new passenger car registrations will be electric, surpassing 17 million units in sales worldwide (GreenMatch, 2024). This trend is supported by technological advancements, increased consumer acceptance, and policy incentives to reduce carbon emissions. These industries are experiencing robust growth, driven by technological innovation, policy support, and a global shift towards sustainable energy solutions.

Extracted from Alexander Melville Chief Executive Officer Tropical Battery Company Limited (TROPICAL) – Interim Financial Statements For The First Quarter Ended December 31, 2024

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.

In today’s dynamic business landscape, companies continually seek effective revenue models to ensure sustainability and profitability. Two prevalent models are the subscription-based model, employed by giants like Netflix and Amazon Prime, and the pay-per-use (or transactional) model. This article delves into the background, benefits, and disadvantages of each model, identifies the types of businesses best suited for them, and explores how Jamaican and Caribbean companies can leverage these models to enhance revenue and profitability.

Background of Revenue Models

Subscription-Based Model: This model involves customers paying a recurring fee—monthly, annually, or at other regular intervals—to access a product or service. Historically, this approach was common in industries like publishing (magazines and newspapers) and has now expanded to digital services, software, and entertainment platforms.

Pay-Per-Use Model: In this model, customers pay based on their actual usage of a product or service. This approach is prevalent in utilities, telecommunications, and emerging digital services where usage can vary significantly among customers.

Benefits and Disadvantages

Subscription-Based Model:

Benefits:

Predictable Revenue: Businesses enjoy a steady and predictable income stream, facilitating better financial planning and resource allocation.

Customer Retention: Regular interactions foster stronger customer relationships and loyalty.

Scalability: Easier to introduce new features or services to existing subscribers, enhancing value over time.

Disadvantages:

Churn Risk: Customers may cancel subscriptions if they perceive insufficient value, leading to revenue loss.

Continuous Value Delivery: Requires ongoing investment in content or service improvements to maintain customer interest.

Pay-Per-Use Model:

Benefits:

Flexibility: Attracts cost-conscious customers who prefer paying only for what they use.

Lower Entry Barrier: Customers can access services without committing to recurring payments, which can be appealing for infrequent users.

Disadvantages:

Revenue Variability: Income can fluctuate based on customer usage patterns, making financial forecasting challenging.

Complex Billing Systems: Requires robust systems to track usage accurately and bill customers accordingly.

Business Suitability

Subscription-Based Model: Ideal for businesses offering services or products with ongoing value propositions. Examples include streaming services (e.g., Netflix), software-as-a-service (SaaS) platforms, and membership-based organizations.

Pay-Per-Use Model: Suited for services where usage varies among customers, such as utilities, cloud computing services, and on-demand content platforms.

Maximizing Revenue in Jamaican and Caribbean Companies

For businesses in Jamaica and the broader Caribbean, adopting these models can open new revenue streams and enhance profitability:

Digital and Streaming Services: With the global rise of digital consumption, local content creators and media houses can adopt subscription models to offer exclusive Caribbean-focused content, catering to both regional and international audiences.

Tourism and Hospitality: Hotels and resorts can introduce subscription packages for frequent travelers, offering benefits like discounted rates, priority bookings, and exclusive experiences.

Utilities and Telecommunications: Implementing pay-per-use models for services like electricity, water, and mobile data can provide customers with flexibility, potentially increasing usage and revenue.

Agriculture and Produce Delivery: Farmers can offer subscription boxes delivering fresh produce to customers regularly, ensuring steady income and promoting healthy eating habits.

Fitness and Wellness: Gyms and wellness centers can provide subscription-based access to virtual classes, personalized training sessions, and wellness resources, expanding their reach beyond physical locations.

Implementation Considerations

Market Research: Understand the target audience’s preferences and willingness to adopt new payment models.

Infrastructure Investment: Develop reliable billing systems and digital platforms to manage subscriptions or track usage effectively.

Regulatory Compliance: Ensure adherence to local laws and regulations, especially concerning digital transactions and data protection.

Customer Education: Inform customers about the benefits and functionalities of the chosen model to encourage adoption.

Market Saturation – A Key Challenge Of The Subscription Revenue Model

This perspective highlights a key challenge of the subscription revenue model—that of market saturation. Since subscription-based businesses rely on a recurring customer base, their revenue growth is often tied to acquiring new subscribers or increasing prices for existing ones. When the market becomes saturated (i.e., most of the potential customers who would subscribe have already done so), companies are forced to find alternative ways to boost revenue, such as:

Raising Subscription Prices – As seen with Netflix and Amazon Prime, companies periodically increase fees to maintain revenue growth, but this risks customer churn if price hikes outpace perceived value.

Introducing Tiered Pricing – Companies may create premium subscription tiers with additional benefits to encourage higher spending.

Expanding Services or Content – Adding new features, services, or exclusive content can justify price increases and retain subscribers.

On the other hand, the pay-as-you-go (PAYG) model offers more scalability and revenue flexibility because revenue is directly tied to usage volume rather than a fixed subscriber base. Businesses can grow revenue in several ways:

Encouraging More Frequent Use – Companies can create incentives for customers to use the service more often, such as dynamic pricing or special promotions.

Expanding Offerings – Businesses can introduce new features or services that increase usage without necessarily increasing prices.

Tapping into New Customer Segments – Since PAYG has lower entry barriers, it can attract a wider audience, including occasional users who wouldn’t commit to a subscription.

Impact on Business Strategy

Subscription models benefit from stable, predictable revenue but face growth limitations once they hit market saturation. Companies must innovate to retain users or find new markets.

PAYG models provide more room for expansion and revenue diversification but require continuous customer engagement strategies to drive repeat purchases.

For Jamaican and Caribbean businesses, a hybrid approach—offering both subscription and PAYG options—could provide the best of both worlds, allowing companies to maximize revenue potential while maintaining customer flexibility.

By thoughtfully selecting and implementing the appropriate revenue model, Jamaican and Caribbean businesses can enhance their competitiveness, cater to evolving customer needs, and achieve sustainable growth in the modern economy.