This conference will be held on October 8 – 9, 2024, at the Pegasus Suites and Corporate Centre, Seawall Road, Kingston – Georgetown, Guyana.

Guyana’s Conference will be centred on the theme, “Guyana’s Capital Markets: Wealth Creation and Retention”. The President of the Co-operative Republic of Guyana and Commander-in-Chief of the Armed Forces, His Excellency Dr Mohamed Irfaan Ali is expected to open the Conference. He will be joined by visiting government dignitaries from Jamaica, other Caribbean Regions, and the rest of the Diaspora.

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Private-sector stakeholders are being encouraged to seize growth opportunities in Jamaica.

Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, made the call while addressing the Private Sector Organisation of Jamaica (PSOJ) Partners’ Circle Meeting at the entity’s head office in Kingston on Friday (August 23).

He emphasised the potential for economic growth through strategic partnerships and innovative initiatives within Jamaica’s business landscape.

Senator Hill further highlighted the importance of leveraging local resources to stimulate economic development.

“Making houses is one of the things that we can do. You have the land or you can get the land from [the National Housing Trust] NHT, and if you build to the [specifications] and price point of the NHT, they will buy the houses off you,” he stated.

Senator Hill said the focus should be on scalable housing projects that can create employment opportunities and empower individuals to become homeowners.

In response to the Minister’s call for innovation in the housing sector, Managing Director, Caribbean Cement Company, Jorge Martinez Mora, shared insights into the entity’s US$50-million investment to expand production capacity by 25 to 30 per cent.

“Right now, the market is one million, and with this increased capacity, we’ll be able to cover [demand],” he said.

Mr. Mora further emphasised the need to train Jamaicans in cutting-edge building techniques, to meet the industry’s evolving demands, signalling a commitment to skills development within the workforce.

Meanwhile, Senator Hill underscored the untapped potential of crops that could yield significant economic rewards for Jamaica if they were treated as orchard crops.

He referred to food items such as breadfruit, avocado, ackee and mango, urging business owners to view these crops as viable commodities for economic growth.

Highlighting the need for enhanced security measures in agricultural operations, Minister Hill drew parallels between securing perishable goods, like mangoes, and protecting valuable assets in the business world.

In a notable example of government support for local businesses, he recalled a scenario where Lydford Mining Company bought equipment for US$2.4 million and got back US$500,000 in customs duties and fees waived, as a result of the Productive Input Relief (PIR).

As such, the Minister extended an invitation for manufacturers to explore similar cost-saving opportunities through customs duty waivers, emphasising the importance of maximising incentives to drive industry growth.

Senator Hill encouraged the PSOJ Partners’ Circle to explore collaborative ventures in Special Economic Zones (SEZs), particularly highlighting the Caymanas location in St. Catherine as a prime investment destination.

With significant tax benefits and government support for private-sector ventures in SEZs, he underscored the potential for creating a robust consortium of Jamaican businesses to capitalise on emerging opportunities.

PSOJ President, Metry Seaga, echoed Minister Hill’s sentiments, advocating for members to consider SEZ investments as a strategic pathway for expanding their businesses.

Mr. Seaga emphasised the Caymanas Economic Zone’s strategic advantage as an ideal SEZ location, due to its accessibility and infrastructure support.

By: Andrew Laidley JIS

Agostini’s Limited is pleased to announce the appointment of Mr. Dino Besomi as the Group Chief Strategy Officer, effective 1st September 2024. Mr. Besomi brings a wealth of experience in strategic consulting and advisory roles, most recently working with healthcare and finntech startups in his native Chile. He also spent several years at McKinsey & Co. in London and Florida, focusing on clients in the retail, pharmaceutical, and financial services sectors. Mr. Besomi holds an MBA from IMD in Switzerland, as well as an MSc and a first degree in Engineering from Pontificia Universidad Católica de Chile.

The Bank of Jamaica (BOJ) has signalled to commercial banks and other deposit-taking institutions (DTIs) that interest rates are on a downward path.

For the first time since October 2022, the BOJ’s Monetary Policy Committee (MPC) has decided to cautiously ease its monetary policy stance.

Effective Wednesday (August 21), the Central Bank’s indicative policy interest rate was reduced by 25 basis points to 6.75 per cent per annum.

This reduction means that commercial banks and other DTIs could commence lowering the rates at which they offer loans and other lines of credit to consumers.

Speaking during the BOJ’s Quarterly Monetary Policy Report press conference at the Montego Bay Convention Centre on Wednesday (August 21), Governor, Richard Byles, noted that consumers started to benefit from its previous decision to increase market liquidity, adding that the policy rate reduction will continue that trend.

“Rates have started to come down already from June, and the policy rate reduction of 25 basis points is really a signal. In and of itself, it is not really such a material thing. A bank that has a deposit with us earning seven per cent yesterday is not likely to move that out in a rush because it went to 6.75 per cent. But it says to the banks and to the business community that [reducing interest rates] is the trend… so get ready,” he said.

Based on assessments coming out of meetings on August 16 and 19, the MPC determined that the current economic environment supports a cautious easing of the monetary policy stance.

The Committee also disclosed that there was a unanimous agreement to implement several key decisions aimed at promoting stability and growth in the Jamaican economy.

Other decisions which were made include plans to continue gradually reducing BOJ’s absorption of liquidity from DTIs through open-market operations.

The BOJ said the MPC’s previous decision in June 2024 to reduce liquidity absorption has already injected $20.5 billion into the system.

Rates have started to come down already from June, and the policy rate reduction of 25 basis points is really a signal

Additionally, efforts will be made to maintain relative stability in the foreign exchange market.

Following the last consumer price index report from the Statistical Institute of Jamaica (STATIN), inflation was found to be more anchored within the Bank’s four to six per cent target range, with annual headline inflation reported at 5.1 per cent in July 2024.

The MPC noted that inflation has consistently remained within the target range over the past five months.

Core inflation, excluding agricultural food products and fuel, was at 4.5 per cent in July 2024, indicating a gradual decrease in underlying inflation since the beginning of the year.

“Despite the impact of Hurricane Beryl, the MPC projects inflation to remain largely within the Bank’s target range over the next two years. Short-term forecasts indicate a temporary rise in inflation, primarily due to disruptions in agricultural supplies caused by the hurricane. However, the MPC expects inflation to return to the target range after this initial shock,” Governor Byles indicated.

Looking ahead, the BOJ said economic conditions appear favourable for maintaining low, stable and predictable inflation.

The MPC believes that domestic fiscal policy responses to the post-hurricane recovery efforts, along with the Bank’s monetary policy posture, will continue to support favourable economic conditions.

Domestic demand, wage pressures and inflation expectations are showing signs of moderation, aided by stable foreign exchange rates and international commodity prices.

The MPC emphasised that any future decisions regarding further interest rate reductions will be data-dependent.

The next policy decision announcement is scheduled for September 30.

By: Andrew Laidley JIS

On Thursday, July 30, 2024, the JSE launched the Jamaica Green, Social, Sustainability and Sustainability-Linked Bond Guide (GSS+ or Green Bond) which is a comprehensive resource designed to support issuers, investors and other stakeholders in navigating the evolving green financing landscape. It provides detailed insights into the principles, frameworks and best practices underpinning these financial instruments. The Green, Social, Sustainability and Sustainability-Linked Bond Guide was developed with the support of IDB Invest and other local and international partners.

Managing Director of the Jamaica Stock Exchange Dr. Marlene Street-Forrest said: “Today marks a significant milestone in our collective journey towards a more sustainable and environmentally responsible future for all Jamaicans and investors in Jamaica. We are reminded of the urgent need to address the global challenges posed by climate change, environmental degradation and social inequity, which significantly challenge and impact small island countries like ours because of geographic location and limited resources. The financial sector has a leading role to play in ensuring that we mitigate the risks by providing funding and governance for green initiatives and it is for this reason we introduce to the market what we believe is a powerful tool in assisting in moving the needle forward. “

“We are happy to report that there are prospective issuers, not only in Jamaica, but within the region, who are excited about the potential opportunities to issue green bonds. Given the global challenges posed by climate change and social inequality, Investors are showing a growing interest in supporting the global sustainability agenda and aiding the shift towards a low-carbon, equitable economy. Therefore, it is fair to assume that there is a market, and this market could prove active for investors within this space.” she concluded.

Minister of Finance and the Public Service Dr. The Honourable Nigel Clarke, the Guest Speaker at the event told the audience that there are hundreds of billions of dollars available in the global financial markets to finance green projects, and Jamaica must seek to capitalize on this to build climate resilience and advance its energy mix. He used Hurricane Beryl and the damage it caused to the country’s infrastructure and lives to urge financial entrepreneurs to enter the green bond space.

He credited the Jamaica Stock Exchange for leading the charge by setting the framework and guidelines for a green bond market to operate. He indicated that the substantive work has been done and it is going to be necessary for others to follow up. Dr. Clarke said “The things that are good for us, that are necessary for our own sustainability are too expensive for us to undertake. So, the innovation that exists for us to solve this problem is green financing.”

He stated that Jamaica’s Green Bond Guide allows us to compete as we can now produce guidelines that when we say to the world that we have a green issue, there is the institutional mechanism which underpins authenticity.

The finance minister expressed satisfaction that Jamaica is creating the infrastructure to enable green financing to take off; to enable Jamaican projects and institutions to tap into this growing and significant pool of funds. He expressed that Jamaica would need credible, dynamic, financial entrepreneurs and it will take a different type of thinking to exploit all the opportunities.

“I am saying to the world that Jamaica is ready and there is a house for your green dollars here. Even the government of Jamaica will need to access green financing for its projects. This is a brand-new area that entrepreneurial financial intermediaries are expected to take full advantage of so that we can engage in the kind of adaptation and mitigation measures so that we can be more resilient against the natural disasters to which we are vulnerable. We must take responsibility for our vulnerability and this green, social, sustainability and sustainability-linked platform is a perfect example of this.” he added.

Among the specially invited guests were members of the green energy sector, the financial sector and the regulatory sector.

Mr. Wayne Wray, Director of Innovative Energy Group, outlined his company’s vision to capitalize on investments in the green bond sector. He said: “Successful green bond listings will require large, diverse and reputable partners and we at IEG have begun that engagement with those stakeholders. As IEG organizes for the next round of acquisition we believe that Jamaican listed companies with the requisite corporate governance guidelines and the transparent reporting requirements of the JSE are better equipped for success.”

Remarks were also brought by Ms. Monique French, Chief Credit Officer CIBC Caribbean and Mr. Angus Young, Chief Executive Officer of NCB Capital Markets who both endorsed the initiative and pledged to continue to work with the green energy sector to build a robust pipeline to develop local and regional programmes.

Ms. Malini Samtani, Climate Change Officer, Advisory Services Division, IDB Invest gave a presentation on GSS+ bonds demonstrating how governments and the private sector can work together to maximize benefits in the green bond sector.

Mrs. Yvonne Vogt, Consultant of legal partners HPL, LLC whose firm worked with key stakeholders in developing the Guide and explained key aspects of the Guide and Mr. Dereck Rajak, Chief Executive Officer of CARICRIS (Caribbean Information and Credit Rating Services) who will be working with the Jamaica Stock Exchange, to rate Green Bond prior to and post issuance were the other presenters.

Source JSE