Minister of Industry, Investment and Commerce, Senator the Hon. Aubyn Hill, says he wants to see more micro, small and medium-sized enterprises (MSMEs) listed on the Junior Market of the Jamaica Stock Exchange this year.

He also urged MSMEs to take advantage of the recent amendment of the Income Tax Act, which allows companies to raise up to $750 million during an initial public offering, an increase of $250 million.

Senator Hill, who was addressing Wednesday’s (January 15) post-Cabinet press briefing at Jamaica House, reasoned that the aim is to build companies that can compete not just in Jamaica but regionally and internationally.

“Two of our biggest companies have big companies in the United States – Grace and Jamaica Broilers Group. More than 50 per cent of Jamaica Broilers Group’s income comes not from Jamaica but from the United States, where they own a lot of companies,” he said.

Senator Hill shared that trade data show that between 1960 and 2021, negative trade balances were recorded in 60 of the 61 years.

A positive trade balance was only recorded in 1966.

“Unless we go and find new markets for our products and services and new markets for investments to come into Jamaica, we’re not going to be the rich country that we have to be,” he said.

“I want the private sector in Jamaica to realise that there are tremendous opportunities, as Jamaica is not the same country it was 10 years ago. Lots of people are making money the right way.

We want more and more Jamaicans to invest and we have 20 agencies in my ministry alone to work with you,” Senator Hill appealed.

For her part, Minister of Finance and the Public Service, Hon. Fayval Williams, said the Government is committed to facilitating further growth of the MSME sector.

“We believe that this will positively impact the MSME sector, as it will broaden the scope for more MSMEs to benefit from the suite of incentives afforded. Further, the increase will provide room for these companies to raise capital and improve productivity. This policy is in recognition of the pivotal role that MSMEs play in driving economic growth while promoting and encouraging local entrepreneurship,” Mrs. Williams said.

The 48 companies currently listed on the Junior Market benefit from a range of tax incentives that include conditional relief from income tax payments, exemption from transfer tax and stamp duty on transfer of shares.

The Junior Market had a market capitalisation of $148.5 billion as at the end of December 2024, having started with $785 million in 2009.

By: Judana Murphy,JIS

In light of evolving global trade dynamics and recent trade tensions involving the United States (US), Jamaican businesses are being strongly encouraged to proactively diversify their markets, exploring both regional and international opportunities.

Senior Director, Regulations, Policy, Monitoring and Enforcement at the Jamaica Special Economic Zone Authority (JSEZA), Ainsley Brown, has highlighted the United Arab Emirates (UAE) as a particularly promising market for Jamaican exports.

Mr. Brown was delivering a presentation at the Business Acceleration Centre (BAC) Accelerator Series, at the Terra Nova All-Suite Hotel in Kingston, on Thursday (February 6).

He emphasised the importance of thinking outside the box and embracing new possibilities, stating, “We live in extraordinary times, so you may need to be doing extraordinary things”.

Mr. Brown pointed to the remarkable growth in exports from Jamaica to the UAE, which surged by more than 5,000 per cent between 2021 and 2022.

Furthermore, Jamaica has narrowed its trade deficit with the UAE by 54.18 per cent, demonstrating significant progress in bilateral trade relations.

While acknowledging that the UAE currently exports more to Jamaica than vice versa, Mr. Brown underscored the potential for further growth.

He noted the success of Jamaican products in the UAE market, particularly coffee and hot pepper sauce.

“We went there; we have tested the market… . We were giving away samples of our products… . We had to restrict how much hot pepper sauce we gave out,” Mr. Brown said.

“It wasn’t just Jamaicans coming in and buying; it was people from all types of ethnic groups… people that never tried the Jamaican hot sauce, tried it, and came back the next day to buy more,” he added.

Mr. Brown also highlighted the demand for other Jamaican products, such as seasonings and canned ackee, while noting that Jamaica is exporting waste oil to the UAE for use in other processes.

He said that many exports to the UK and EU ultimately find their way to the UAE through informal channels.

As a result, he urges businesses to “cut out the middleman” and directly target the UAE market to maximise profits and fully capitalise on the growing demand for Jamaican products.

This call to action comes at a crucial time as businesses seek to mitigate risks associated with trade uncertainties in traditional markets.

Mr. Brown noted that the UAE offers a lucrative and receptive market for Jamaican goods, pointing out that proactive engagement can lead to significant economic benefits for Jamaican businesses.

By: Andrew Laidley, JIS

Jamaican businesses are being encouraged to take advantage of the island’s existing trade agreements to boost competitiveness and expand into new markets.

Vice President, Exports, Jamaica Promotions Corporation (JAMPRO), Sonja Linton, highlighted the significant opportunities available through these agreements, many of which, she said, are currently underutilised.

She was speaking at the Business Acceleration Centre (BAC) Accelerator Series at the Terra Nova All-Suite Hotel in Kingston on Thursday (February 6).

Jamaica has about 20 trade agreements relating to contract manufacturing, offering reduced rates for goods entering the United Kingdom (UK) and European Union (EU).

These arrangements enable businesses to price their products more attractively in international markets.

However, many Jamaican companies are not fully utilising these agreements due to a lack of awareness or understanding.

Ms. Linton emphasised the potential for growth through contract manufacturing and white labelling, stating, “this is an opportunity for companies in Jamaica to make products under other labels… . You have a contract to manufacture 100 soaps for the Marriott group, you send it off to them, and that’s it”.

This model allows businesses to focus on production, reduce distribution costs, and utilise excess capacity.

The Trade Board and Customs Agency websites offer comprehensive information on trade agreements, including the CARIFORUM-EU agreement, which covers the United Kingdon (UK) and Europe.

Ms. Linton urged businesses to explore these resources.

“I invite you to visit the Trade Board website and learn some more about the trade agreements…; trade agreements can be quite beneficial, and if you’re operating in the Special Economic Zones (SEZs) and you are making use of these trade agreements, you can see the opportunity [to be] competitive wherever you go,” she said.

She stressed that by leveraging these trade agreements, Jamaican businesses can enhance their competitiveness, access new markets, and drive economic growth.

JIS

Effective April 1, 2025, the Jamaica Special Economic Zone Authority (JSEZA) will revise the Special Economic Zone (SEZ) framework to make provisions for the elimination of annual renewals of SEZ Operating Certificates for Developers and Occupants.

Under the revised framework, Operating Certificates for Developers will now extend for the duration of the licence agreement, while Occupants’ certificates will match the length of their subconcession terms.

By removing the annual renewal process, JSEZA is committed to reducing administrative burdens, promoting investment stability, and fostering increased productivity within the SEZ ecosystem.

The Authority’s Chief Executive Officer (CEO), Kelli-Dawn Hamilton, informed JIS News that “our goal is to create a conducive business environment where SEZ operators can focus on growth and long-term success, and by streamlining the licensing process, we are empowering businesses to thrive without the interruption of yearly renewals”.

Mrs. Hamilton added that this amendment is part of an overarching review of the SEZ regime, aimed at making it more adaptable and responsive to private-sector needs.

“Our focus is on innovation, productivity, and ensuring that the SEZ ecosystem remains robust and well-equipped to meet the evolving needs of stakeholders,” she explained.

The CEO pointed out that the SEZ regime has experienced remarkable growth, with 114 entities, including Developers, Single Entities, and Occupants, currently operating across 145 locations.

“Of these, 37 companies achieved SEZ designation within the past two years, contributing to a vibrant ecosystem of industries, such as Global Digital Services, Agro-Processing, Manufacturing, and Logistics,” she informed.

Collectively, these entities employ over 43,000 individuals and drive significant economic activity in Jamaica.

With this significant increase, JSEZA remains dedicated to improving operational efficiency and creating opportunities that extend beyond the Authority and business community to benefit the wider Jamaican economy.

“The future will be one of innovation and productivity as we strive to enhance SEZ contributions to Jamaica’s economy and the global community,” said Mrs. Hamilton.

By aligning Operating Certificates with the terms of existing agreements, the JSEZA is taking a key step towards operational efficiency, reducing bureaucratic hurdles, and reinforcing its commitment to fostering economic growth.

The new framework is also expected to enhance Jamaica’s position as a competitive destination for global investment and innovation.

For further details on the revised renewal framework and other initiatives, persons can visit the JSEZA website at https://www.jseza.com/.

By: Sherika Williams, JIS

The perception that only large, heavily capitalized companies can benefit from financial hubs and advanced business ecosystems is not entirely accurate. For small and medium-sized enterprises (SMEs), such developments can unlock a wealth of opportunities. As Jamaica positions itself as the Caribbean’s leading financial and economic hub, SMEs stand to gain significantly from the enhanced infrastructure, access to capital, and global networks that such a shift will bring. Here’s how entrepreneurs and SME operators can capitalize on these changes.

Benefits for SMEs in a Financial Hub Environment

1. Easier Access to Financing
   • Capital Markets: With a deeper financial market, SMEs can explore alternative funding sources beyond traditional loans. The Jamaica Stock Exchange (JSE) Junior Market already provides a platform for SMEs to raise capital through equity. As the financial hub grows, this market is expected to expand, offering more tailored solutions for smaller businesses.
   • Venture Capital and Private Equity: A financial hub attracts investors, including venture capitalists and private equity funds, seeking opportunities in high-growth, innovative SMEs.
   • Improved Credit Options: The presence of global banks and fintech solutions will likely lead to more competitive and flexible credit products for SMEs.
2. Business Development and Networking
   • Global Exposure: A financial hub connects SMEs with international markets, giving them access to a broader customer base and partnerships.
   • Mentorship and Support: Many financial ecosystems include incubators, accelerators, and advisory services to help SMEs refine their strategies, scale operations, and compete globally.
   • Public-Private Partnerships (PPPs): Collaborations with the government or larger companies can open up opportunities for SMEs in areas like infrastructure, technology, and service delivery.
3. Enhanced Digital and Financial Services
   • Fintech Solutions: A robust financial hub attracts innovative fintech companies, offering digital payment systems, AI-driven analytics, and tools for better financial management tailored to SMEs.
   • E-commerce Opportunities: With advanced digital payment infrastructure and global connectivity, SMEs can expand their e-commerce offerings, reaching regional and international customers.
4. Regulatory Support and Business-Friendly Policies
   • A government focused on developing a financial hub is likely to introduce policies that encourage SME growth, such as tax incentives, streamlined registration processes, and grants for innovation.

Opportunities for SMEs in Jamaica’s Financial Ecosystem

1. Export Expansion
   • SMEs can leverage the global connections of a financial hub to expand export activities. Jamaica’s logistics advantages and improved financial services make it easier to reach international markets.
2. Technology Adoption
   • The growth of the hub will likely coincide with advancements in technology infrastructure, enabling SMEs to adopt cutting-edge tools for productivity, customer engagement, and operational efficiency.
3. Green Economy Participation
   • With a growing emphasis on sustainability, SMEs can tap into green financing options to fund eco-friendly projects, energy-efficient operations, or sustainable product development.
4. Talent and Innovation
   • A financial hub attracts talent and innovation. SMEs can benefit from a more skilled workforce, access to cutting-edge research, and opportunities to collaborate on innovative solutions with other businesses.

Steps for SMEs to Prepare and Thrive

1. Develop a Strong Business Plan
   • SMEs should craft clear strategies to position themselves as attractive investment opportunities. This includes detailed growth plans, financial projections, and a robust marketing strategy.
2. Leverage the Junior Market
   • Explore the benefits of listing on the JSE Junior Market to raise capital, increase visibility, and enhance credibility.
3. Adopt Digital Transformation
   • Invest in digital tools and platforms to improve efficiency, streamline operations, and connect with global markets.
4. Enhance Financial Literacy
   • Understanding financial products, investment opportunities, and regulatory requirements will be crucial. SMEs should seek training and advisory services to improve financial decision-making.
5. Form Strategic Partnerships
   • Collaborate with other businesses, financial institutions, and government agencies to leverage resources, share knowledge, and access new opportunities.

 SMEs as Drivers of Growth

As Jamaica builds its reputation as a financial and economic hub, SMEs have the potential to be a driving force behind the country’s economic transformation. By embracing the opportunities that a dynamic financial ecosystem presents, SMEs can scale their businesses, access new markets, and contribute to Jamaica’s long-term growth.

Rather than being overshadowed by larger corporations, SMEs can seize the moment to thrive in a rapidly evolving business environment, proving that small can indeed be mighty.