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State of the MSME Sector in CARICOM – Prospects for the Future

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5 years ago

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I want to begin my remarks this morning by thanking Senator Lynette Holder, CEO of the Barbados Small Business Association for inviting me to deliver the keynote address at this year’s State of the Sector Conference.

I also want to congratulate the SBA for its continuing advocacy of micro, small and medium-sized businesses across Barbados, and for organising this important event.

I encourage you to remain steadfast in your mission“to provide effective representation and exemplary development services to and on behalf of micro, small and medium enterprises, nationally” and to continue to play a leadership role in elevating MSME issues on the local policy agenda.

This Conference is a perfect opportunity for all stakeholders here today to exchange ideas and widen their collective understanding of effective ways to catalyse MSME development in Barbados.

By providing a platform for dialogue and exchange of information, fora like this one can deepen the partnership between the Government, the Small Business Association and MSMEs.

I feel especially privileged to have been asked to address this Forum on the topic “State of the MSME Sector in CARICOM – Prospects for the Future.”

This discussion is timely.  In 2015, all CARICOM countries became signatories to the United Nations 2030 Sustainable Development Agenda.  MSMEs are regarded as an important vehicle for achieving the Sustainable Development Goals (SDGs).   Through their significant job creation impact, MSMEs can play a pivotal role in reducing poverty and income inequality, especially amongst women and youth.

The Caribbean Development Bank shares the SBA’s ambition to nurture and unleash the transformation potential of MSMEs and to create a strong, enabling business ecosystem.

Importantly, we, at the CDB, are in the midst of preparing our strategic plan for the period 2020-2024; and the MSME sector is emerging as a critical area for strategic and focused attention in our Region’s ongoing efforts to achieve sustainable and inclusive economic growth, and eliminate abject poverty, and inequality. Based on  our almost 50 years of experience working in 19 borrowing member countries, including Barbados, we have come to realise that MSMEs across this Region share similar history, experiences, challenges and prospects.

Our intention, therefore, is to continue to craft programmes of support that are available and accessible to all of these countries.

I must also admit to my own personal and longstanding interest in MSMEs’ potential for contributing to economic growth and development, having myself grown up in a family whose livelihood was sustained by small business.

My colleagues at CDB can confirm that I consistently pore through the clippings of local, regional and international newspapers, and other publications in search of new information on MSMEs.  The main objective is to broaden my own understanding of what strategies can galvanise the growth of the MSME sector in our neck of the woods, so to speak!

Even as I thank you for offering me this platform, I also seek your forgiveness for taking the liberty of expanding the scope of my mandate to speak, this morning, on the state of MSMEs and their prospects, largely from a regional perspective.

Interestingly, as I prepared for this event, I was reminded of the relative paucity of in-depth studies of the MSME sector in our part of the world, and hence the need for CDB to commission the study entitled “Micro Small Medium Enterprise Development in the Caribbean: Towards a New Frontier.” That 2016 study examined MSMEs in 12 Caribbean countries.

I assure you, ladies and gentlemen, that there is considerable commonality in the structure, experience, and challenges facing MSMEs across our Region.  So too are the lessons which inform the appropriate policy responses for this group.

This morning I propose to draw four general conclusions.

II. MSMEs ARE ESSENTIAL FOR CARIBBEAN LONG-TERM GROWTH AND DEVELOPMENT

First, let me underscore the importance of MSMEs.

They are the backbone of the private sector and are key drivers of economic growth, and social inclusion in Barbados. Their importance for this island’s long-term growth and development is undeniable.

According to a survey commissioned by the Small Business Association in 2016, MSMEs in Barbados accounted for approximately 92% of formal enterprises and over 60% of private sector employment.  The bulk of these jobs was in small service companies, which were responsible for 34% of private sector employment. MSMEs also accounted for 39% of total exports.  In addition, 34% of enterprises had women as the largest owner, while 6% had equal male and female ownership.

Based on findings published in CARICOM’s 2016 Regional MSME policy and reconfirmed in the CDB-financed study, the situation in Barbados is very typical of the rest of the Region.  On average, MSMEs contribute 50% of GDP and create 45% of the jobs in our Region.

But their full potential remains unrealised.  MSMEs can do so much better.

What is the basis for my conclusion?

If MSMEs account for such a significant proportion of enterprises, and provide the bulk of employment, should we not also expect them to make a bigger contribution to Barbados’ exports?

Certainly if our MSMEs are operating efficiently, then it would be reasonable to assume that they are competitive and have the potential to export.

Therefore, we have to figure out how to unravel those issues that are preventing them from operating more efficiently, more productively and more competitively. If we understand the constraints, we can design workable solutions to unleash this potential and create a business environment in which MSMEs can grow and flourish in a well-functioning market economy.

Because of the size of its contribution to GDP, the performance of the MSME sector is generally a good barometer of the state of the wider economy.  Further, because these countries are small and open, there is a strong nexus between our ability to trade and economic growth performance.  Therefore, we must first come to grips with the issues affecting MSMEs, before our Region can expect to overcome the challenges of low growth, weak trade and investment, and persistently high poverty and inequality.

The issues, which are constraining MSMEs from realising their full potential are generally well known.  A weak enabling environment; high energy and other production costs; limited and poor product/service quality and standards; and limited access to both loan and equity finance are the principal limiting factors.

III. GETTING THE ENABLING ENVIRONMENT RIGHT

This brings me to my second general conclusion this morning.  If we accept these limiting factors, then those of us charged with policy-making must be resolute in our advocacy for giving high priority to creating a business-friendly environment within which MSMEs can develop.

The World Bank’s Doing Business surveys benchmark all countries which participate in the yearly exercise against the regulations that affect business performance.   In the most recent survey of 190 countries Barbados ranked 129 and the average for the Caribbean was 126, suggesting that, relative to other countries, much work remains to be done to create an environment which is “good for business.”

In many Caribbean countries, there is ample evidence of inadequate legislative and regulatory frameworks; weak public sector institutions for providing legal protection; and inefficient business support and training services.  In some Caribbean countries, for example, property registration continues to be time consuming and expensive because property rights are not adequately defined or protected.  Bankruptcy laws are often excessively punitive; and severe penalties can confound the willingness to invest in new business ventures. Also, better enforcement of copyright, patents and trademarks is required to provide appropriate protection for businesses and to avoid litigation and copyright infringement.

Then, our Region suffers from prolonged delays in implementing agreements reached under the Revised Treaty of Chaguaramas.  Several issues require urgent attention.  For example, market access has not improved despite the removal of over 450 legal and administrative barriers to the free movement of goods, services, capital and labour in most CARICOM countries.  The establishment of a single jurisdiction to allow for the equal treatment of business entities across CARICOM is outstanding.  And a CARICOM business must still register in every jurisdiction in which it wishes to operate!  And alien landholding licensing requirements are still in place.

Then, most of the 12 participating CSME countries have failed to enact the requisite legislation that would allow the free movement, of even the ten categories of persons that now have the right to seek employment in other CARICOM member states without the need for a work permit.

These are restrictions which add to the cost and slow pace of doing business, and hamper the extent to which CARICOM businesses can penetrate regional markets.

In the past 15 months, there has been a renewed focus on the CSME.  I remain optimistic that accelerated interest in honouring Treaty obligations will follow shortly.

Our Governments must remain committed to improving the business environment and scale up their efforts to create a policy and institutional framework that responds appropriately to the characteristics and special needs of MSMEs.   Are the tax regimes and regulatory requirements making compliance costs too burdensome?  Or are they incentivising SMEs to remain in the informal sector?  Priority must be given to cutting red tape; increasing the transparency and the cost-efficiency of regulations; collecting data on a systematic basis; and adopting stronger evidence-based policies.

During the Budget presentation earlier this year, Prime Minister Mottley gave notice of  her Government’s intention to utilise technology to enhance the quality and speed of delivering services via online platforms for clearing imports, submitting planning and development applications, renewing driver’s licenses; obtaining Police Certificates of Character; and paying of taxes.  These measures are encouraging enhancements of the business eco-system.

IV. ACCESS TO FINANCE

My third comment this morning directs attention to the difficulty that MSMEs face in accessing appropriate financing.

Because they drive economic growth and job creation, MSMEs can be one of our most potent weapons in the fight against unemployment, poverty and social exclusion.  But to play this role effectively, the conditions must be also be “ripe” for them to grow and flourish.  We have to give highest priority to creating an eco-system in which MSMEs become more willing to embrace uncertainty and to take risks.

Key to creating this environment is access to finance and financial services.   Limited access to credit; the paucity of venture capital; and the generally underdeveloped nature of our Region’s capital markets are troublesome constraints facing MSMEs in Barbados and the rest of the Caribbean. The issue is not simply that funds are unavailable.  In fact, even in situations where the financial system is reporting high levels of liquidity, MSMEs struggle to access resources from the banking system at acceptable interest rates.

Diagnostic studies conducted by the Inter-American Development Bank reveal that only 3-5% of Caribbean micro-entrepreneurs have access to financing. Indeed, financial institutions are generally reluctant to lend to MSMEs, because they lack adequate collateral; they operate in unfavourable business environments; or they have limited access to affordable accounting, legal, auditing and other services.   According to the study also, MSMEs prefer informal modes of credit, which are relatively easy and cheap to secure.  As a result, the uptake of micro-credit has lagged behind expectations.

This suggests that the mainstream financial system, working collaboratively with Government and the business community, may need to consider redesigning their products and offering special mechanisms for enhanced MSME access. These mechanisms could include:

(a)  credit bureaux to facilitate the lending institution’s assessment of credit worthiness;

(b)  collateral registries to restrict the possibility of fraudulent re-use of collateral;

(c)  guarantee schemes, to reduce the risk spread in the pricing of MSME loans by sharing the risk with retail lenders; and

(d)  additional financing channels, such as equity funds, angel investor networks and junior stock exchanges.

Let me make special mention of junior stock exchanges as a financing modality to promote the use of equity financing by MSMEs.  Junior markets can be found in Barbados, Jamaica and Trinidad and Tobago.  Jamaica, with the incentive of a ten-year tax holiday for listing, has the most active exchange. Important lessons can be learned from the experiences of these three junior markets.

One lesson for those countries without junior exchanges is that the legal reforms which encourage MSMEs to raise equity financing by listing their companies on local junior markets must be implemented to facilitate growth and expansion of small businesses.

I strongly recommend that MSMEs formalise their businesses by keeping proper accounting records and adopting sound business practices.  The greatest inhibitor to accessing finance, global competitiveness, or even growth is the failure to adopt good business practices.

MSMEs should also register to be members of business support organisations.  Across Europe, this is mandatory when registering a business.   These organisations, similar to the SBA, lobby on behalf of their members, bring sector issues to the table, and represent their interests in policy discussions. BSOs are also key in capacity building, PPP engagements and making links in new markets.

V. BUSINESS CULTURE/MINDSET

My fourth point is with respect to changing the business culture and mindset.  “The Biggest mistake that a small business can make is to think like a small business.”

I am not sure to whom I should give credit for this quote, but it describes succinctly the mindset needed for successful MSMEs and should be included, alongside effective business planning, good financial management, continuous marketing,  and excellent customer service.

MSMEs are simply the incubators for most large businesses. So you must be able to visualise the company having the DNA of an elephant, as the distinguished Barbadian management consultant and newspaper columnist, Dr. Basil Springer would characterise it. Such a company would be capable of operating outside the narrow geographical confines of Barbados.  With increased trade we can expect more jobs, higher economic growth and increased prosperity.

“Thinking big” will open up new opportunities for MSMEs to compete on the international market by becoming part of a regional value chain.   The theme for this Conference, “Small Size, Big Thinking – Changing the Mindset for Global Engagement” says it well!

The attractiveness of this strategy is substantiated by the achievements of several large, medium and small Caribbean enterprises, which have grown their businesses by moving cross-border to other regional and international markets.

Companies like these become large by embracing behaviours and practices that engender superior levels of production efficiency and cost effectiveness.  The regional market alone gives MSMEs immediate access to just over 18 million consumers under the CSME arrangement.  Firms which are incapable of competing in the local and/or regional markets and do not employ good international business practices will not graduate to the world stage.

With duty and quota free access for most of our goods and services under the CARIFORUM-EU Economic Partnership Agreement, the European Union still offers a relatively protected market for regional MSMEs to hone their competitiveness skills prior to venturing onto the wider unprotected world market.

VI. CARIBBEAN DEVELOPMENT BANK

I have said quite a bit, this morning, about what needs to be done in the eco-system to support MSMEs in our Region.  It would be remiss of me to discuss the development role and impact of MSMEs without mentioning my own institution.

So before I close, let me quickly recap CDB’s own contribution to supporting MSME development.

Our strategic posture is informed by three general principles:

(a)      CDB’s operations should increase the flow of capital into BMCs for the benefit of MSMEs;

(b)      We should use our interventions to enhance financial intermediation and develop regional and sub-regional capital markets; and

(c)      CDB should cooperate and build alliances with other financial institutions, including multilateral institutions, to increase the overall impact of assistance to MSMEs.

Within this operating framework, since 2015, we have committed US$30 million and disbursed US$20 million to over 900 firms for private sector development.  Going forward, our focus is on ramping up our engagement with the Barbadian and Caribbean-wide private sector whilst maintaining the high credit quality of CDB’s banking function.

There is scope and need for CDB to continue to intermediate funding to MSMEs through public and privately-owned financial institutions.  However, careful attention will have to be paid to the pricing of our funding through the privately-owned institutions, in particular, to ensure that their on-lending rates are competitive.

We are determined to increase our involvement with MSMEs and to play an even bigger role in unleashing their potential.  In this regard, we have embarked on some innovative approaches to attract additional financial flows for our MSME programme. In 2018, for example, we launched the multi-donor Cultural and Creative Industries Innovation Fund (CIIF) with start-up capital of U$2.6 million.  There is no shortage of demand for CIIF which provides grants and technical assistance to MSMEs in order to encourage innovation and job creation in the creative industries.

Our most recent proposal is to mobilise additional financing which can be used to derisk lending to MSMEs by providing partial credit guarantees to financial institutions. Additional technical assistance will be offered to assist MSMEs in bolstering their creditworthiness by developing suitable marketing and business plans and ensuring that proper accounting systems are in place.  This initiative is to be executed through the Caribbean Consultancy Technological Services, our main mechanism for delivering professional services to MSMEs.  It is a small programme of direct technical assistance, workshops, and training attachments; but it delivers big results with huge impact!

VII. CONCLUSION

In closing, I wish to point out that the current business environment, while still being difficult because of weak global growth, has presented us with a window of opportunity in the form of increased funding for MSMEs.

CDB remains committed to supporting the development of MSMEs in Barbados and the rest of our Region. We are giving high priority to financing and promoting initiatives that enhance their competitiveness.  And we are relying on   institutions like the Small Business Association to help us design programmes that are better targeted for MSMEs to drive economic growth and employment creation in Barbados and the wider Caribbean.

By
Dr. William Warren Smith, CD President Caribbean Development Bank

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Why Caribbean Business Leaders Should Be Concerned About Declining Birth Rates and Population Shifts

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5 days ago

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January 26, 2025

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Caribbean countries are experiencing a decline in birth rates, a trend posing significant challenges for the region’s future workforce, economic vitality, and market demand.

This population shift is driven by several factors: lower birth rates, single-parent households, aging populations, migration, and evolving family structures. For Caribbean business leaders, these trends indicate a shrinking pool of young workers, potential reductions in market size, and shifts in consumer demand—each with implications for long-term strategic planning.

One concern for leaders is workforce sustainability.

With an aging population and declining youth demographics, the region faces a shortage of skilled labour. For instance, in St. Vincent and the Grenadines, the working-age population (25-64) is expected to decrease relative to retirees, signaling potential labour shortages that may hinder economic productivity and increase costs related to recruitment and retention. This demographic shift will also stress social security and pension systems, as fewer working individuals will be available to support a growing number of retirees.

Another key impact is the changing consumer landscape.

As birth rates decline, spending on youth-oriented goods, like children’s apparel and educational services, may decrease. On the other hand, an older demographic increases demand for healthcare, elder services, and financial planning products.

Companies in retail, healthcare, and financial services should consider how to pivot their offerings to cater to an aging population. This shift in demand highlights a growing need for business leaders to proactively adapt their services and marketing strategies to reflect demographic realities which also exacerbates population challenges in the Caribbean.

Skilled professionals often seek better opportunities abroad, creating a “brain drain” that impacts local innovation, healthcare, and education. This emigration trend not only reduces the talent pool but also places added pressure on businesses to offer competitive salaries and benefits to retain top talent.

While remittances from abroad do support local economies, these inflows are not sufficient to offset the lost human capital and may contribute to a reliance on external sources of economic stability.

Mitigation Strategies

To mitigate the impacts of a declining population and labour pool, Caribbean business leaders can take several steps:

Invest in Workforce Automation: Adopting technology and AI can help offset labour shortages and enhance efficiency.

Attract and Retain Talent: Offering competitive wages, flexible work arrangements, and pathways for career growth can help retain existing talent and attract skilled professionals who might otherwise seek opportunities abroad.

Develop Age-Responsive Products: As consumer needs shift with an aging population, tailoring products and services toward elder demographics—such as health, wellness, and retirement services—can help maintain demand.

Expand Markets: Companies can look beyond the Caribbean to more populous markets with younger demographics, like parts of Latin America, to diversify revenue.

Engage in Policy Advocacy: Collaborating with governments to support youth employment initiatives, incentivize family growth, and create skilled migration programs can address demographic challenges systemically.

Enhance Skills Training: Invest in upskilling programs to enhance productivity and adapt the existing workforce to high-demand roles, filling gaps left by emigration.

By anticipating these demographic shifts, leaders can future-proof their businesses, ensuring resilience in a changing Caribbean economy.

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Businessuite 2024 #1 Caribbean Company – Profit after Tax Republic Financial Holdings Limited

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5 days ago

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January 26, 2025

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Republic Financial Holdings Limited (RFHL) is the registered owner of all of the Banks in the Republic Group – Republic Bank Limited, Republic Bank (Guyana) Limited, Republic Bank (Barbados) Limited, Republic Bank (Grenada) Limited, Republic Bank (St Maarten) N.V., Republic Bank (EC) Limited, Republic Bank ( Anguilla) Limited, Republic Bank (Suriname) N.V, Republic Bank (Cayman) Limited, Republic Bank (Ghana) Plc., Republic Bank (BVI), Cayman National Corporation as well as Republic Wealth Management Limited and other subsidiaries.

In keeping with international best practice, this holding company was formed with the aim of offering increased operational efficiencies and optimum management of the Group; ultimately leading to greater value for our shareholders and clients while enabling greater strategic focus and diversification.

Leadership

Vincent A. Pereira, Chairman
Vincent A. Pereira is an accomplished petroleum engineer with more than 35 years in the energy sector, bringing extensive leadership and technical expertise to his role as Chairman of RFHL. His career includes significant achievements in both Trinidad and Tobago and the United States, with a strong background in operational excellence and strategic development.

Mr. Pereira is a former President of BHP Trinidad and Tobago, where he was instrumental in achieving value-based growth, overseeing major offshore developments, and spearheading exploration efforts in deepwater frontier basins. His influence extends to industry governance, having served as a Director of the Energy Chamber of Trinidad and Tobago and as a Governor on the Board of the National Energy Skills Centre.

Education and Credentials
Bachelor of Science in Chemistry, University of Guelph
Master of Business Administration (MBA), Houston Baptist University
Diploma in Petroleum Engineering, University of the West Indies

 

Nigel M. Baptiste, Group President and Chief Executive Officer
Nigel M. Baptiste has dedicated over 30 years to the banking sector, contributing to Republic Bank Limited’s growth and innovation. Appointed in 2016, Mr. Baptiste’s tenure as Group President and CEO is marked by his commitment to strengthening Republic’s leadership position in the Caribbean financial market. His extensive experience encompasses key roles, including Managing Director of Republic Bank Limited and Republic Bank (Guyana) Limited and serving as General Manager of Human Resources.

Mr. Baptiste’s strategic vision has positioned RFHL for sustainable growth and market responsiveness. He also champions operational excellence across multiple subsidiaries, aligning the group’s strategic initiatives with economic development goals across the Caribbean.

Education and Credentials
Bachelor of Science (Honours) in Economics, University of the West Indies
Master of Science in Economics, University of the West Indies
Advanced Management Program, Harvard Business School
Diploma with Distinction, ABA Stonier Graduate School of Banking
Associate of the Chartered Institute of Bankers

 

 

 

 

 

 

 

Republic Financial Holdings Is A Driving Force And Agency For Change

“The Republic Group has been competitive in the pursuit of service excellence and nation-building for more than 186 years.”

Working closely with many to help build successful people and sustainable societies, the Group strives to go beyond the boundary as the one true indigenous team that has stood the test of time in efficiently delivering service to our clients, stakeholders, and communities in the Caribbean, South America and Ghana.

In every field, every time we bat, we stride forward confidently with eyes fixed on hitting our goals. As we focus on unlocking the truest potential of our People, Planet, Progress and Communities, we are determined, compassionate and strategic in our approach in seizing
opportunities and facing challenges head on.

Unified in this purpose, the Republic Group continues to be a driving force and agency for change in the markets we serve, working together as one to bring our stakeholders and our people, leading-edge solutions to fulfil their needs and achieve their goals.

As a team, we will continue to cheer for, and empower, many in bringing out their best. As a Group, we will endeavour to create sustainability, promote equity, and nurture the talents of our people and communities wherever we channel our resources.

Republic Financial Holdings Limited (RFHL) recorded a profit attributable to equity holders of the parent of $1.75 billion for the year ended September 30, 2023, an increase of $224.0 million or 14.7 percent over the profit of $1.53 billion reported in the prior year.

These results are a combination of the returns from the Group’s advances and investment portfolios, and reduced credit loss expenses.

Based on these results, the Board of Directors declared a final dividend of $4.10 per share for the year ended September 30, 2023. When combined with the interim dividend of $1.10 per share, this brings the total dividend for the year to $5.20 per share, an increase of $0.70 or 15.6 percent over the amount declared for 2022. At a share price of $121.02 as at September 30, 2023, this results in a dividend yield of 4.3 percent on an RFHL share.

The Group earned net interest income of $4.7 billion for year ended September 30, 2023, an increase of $526 million or 12.7 percent above the prior year.

Average total assets increased by $1.9 billion or 1.7 percent in the fiscal, with the net interest margin increasing from 3.76 percent in 2022 to 4.17 percent in 2023.

• In Trinidad and Tobago (T&T), net interest income grew by $142 million, being the net impact of increases in interest income and interest expense of $210 million and $68 million respectively. The increase in interest income was generated primarily from the growth in the advances portfolio, coupled with higher interest rates on United States dollars (USD) denominated investments. The $68 million increase in interest expense stemmed from growth in the deposit portfolio and higher interest rates on the US$150 million floating rate debt.

* In Barbados, net interest income grew by $5 million, the net result of a $3 million increase in interest income and a $2 million decline in interest expense. The $5 million growth in interest income was the result of increased portfolios for advances and investment securities, while the decreased interest expense was due to a decline in the deposit portfolio of Republic Bank (Barbados) Limited.

• The Cayman Islands recorded increased net interest income of $247 million, the net effect of increases in interest income of $352 million and $105 million in interest expense. The increases were the result of increased yields on USD investment securities and customer deposits in the Cayman Islands market.

• The Eastern Caribbean (EC) recorded growth in net interest income by $74 million due to increases in interest income and interest expense by $83 million and $9 million respectively. This resulted from increased portfolio balances for advances and customer deposits in the EC islands, while interest rates remained fairly constant.

• In Suriname, the increase of $40 million was the net effect of an increase in interest income of $37 million and a $3 million decline in interest expense. The increase in interest income was due to growth in the advances and investment portfolios, while the decreased interest expense was a result of a reduction in deposit rates.

• In Ghana, the $40 million decrease in net interest income resulted from a decline in interest income of $5 million and increased interest expense of $35 million. This decline was mainly due to a reduction in average interest rates for advances and the depreciation in the Cedi exchange rate during the year. The increased interest expense resulted from increased interest rates in addition to an increased customer deposit portfolio.

• In the British Virgin Islands (BVI), the increase of $9 million in net interest income was due to increases in interest income and interest expense by $20 million and $11 million respectively. Increased yields on advances, investments and customer deposits accounted for the increased income and expense.

The increase in profitability in 2023 is reflected in the rise in most key ratios in 2023, with the Return on Average Assets (ROA) ratio increasing from 1.53 percent in 2022 to 1.73 percent in 2023, and the Return on Average Equity (ROE) ratio increasing from 12.73 percent in 2022 to 13.87 percent in 2023.

Earnings Per Share (EPS) also increased from $9.37 in 2022 to $10.69 in 2023, an increase of $1.32 per share. RFHL’s share price closed at $121.02 as at September 30, 2023, a decline of $18.99 over the past year, while the Price/Earnings (P/E) ratio decreased from 14.9 times in 2022 to 11.3 times in 2023.

Dividends
The Board of Directors declared a final dividend of $4.10 (2022: $3.45) per share, which brings the total dividend to $5.20 (2022: $4.50) per share for the fiscal year, an increase of 15.6 percent or $0.70 in total dividend payment over 2022. At a closing share price of $121.02, this dividend represents a dividend yield of 4.30 percent (2022: 3.21 percent).

The Group’s capital adequacy ratios across all countries and at the consolidated level remains quite robust. The final dividend was paid on December 1, 2023, to all shareholders of record on November 16, 2023.

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GraceKennedy Announces Leadership Changes – Don Wehby Retires; New CEO Announced

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January 14, 2025

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GraceKennedy Limited has announced key leadership changes, effective February 14, 2025, coinciding with the company’s 103rd anniversary.

After a distinguished tenure, the Honourable Don Wehby, CD, OJ will retire as Group CEO on February 14, 2025, and step down from the Board of Directors. Mr. Wehby joined GraceKennedy in 1995 and was appointed Group CEO in 2011. During his tenure, the company more than doubled in size with revenue moving from J$58 billion in 2011, to J$155 billion in 2023.

Expansion through mergers and acquisitions has been a hallmark of Wehby’s leadership, enabling the company to grow regionally and globally. Under his guidance, it has become one of the largest and most dynamic entities in the Caribbean, with operations spanning the Caribbean, North and Central America, the United Kingdom, and Europe. “I am proud of the progress we have made during my tenure, and I am confident that the new leadership team will take GraceKennedy to even greater heights,” said Wehby. “I want to thank the Board, my colleagues, and our customers for their support over the years,” he added.

Frank James, current CEO of the company’s Domestic Foods Division and former Group CFO, will assume the position of Group CEO on February 14th, 2025, and be appointed to the Board on the same date. Mr. James joined GraceKennedy in 2005 as Vice President of Strategic Planning and Corporate Development. James quickly moved through the ranks, occupying senior roles in both the Food and Financial Services Divisions, before he was appointed Group CFO in 2012. He was also appointed to the Board of Directors that same year. In April 2019, James was appointed Chief Executive Officer, GK Foods Domestic, the largest division in the group of companies, where he has championed growth and efficiency. Under his leadership, revenues for GK Foods Domestic grew by more than sixty percent up to 2023 and continues on that growth path, with even greater growth in profitability over the period.

“I am honoured to take on the role of Group CEO and lead the GraceKennedy team,” said Mr James. “We will continue to focus on delivering value to our customers, shareholders, and the communities we serve,” he added.

Professor Gordon Shirley, Chairman of GraceKennedy Limited, commented, “Don Wehby is an exceptional leader who sees opportunities in challenges and leads by example. We are grateful for his innovative spirit, impeccable work ethic and dedication to ensuring that the company continues to make a difference in the communities we serve. Don’s leadership and vision has been instrumental in shaping the company into what it is today.”

He added, “We welcome Frank to his new role as Group CEO and I have every confidence that his strong leadership will ensure continued growth and innovation across the business. The best is yet to come for GraceKennedy.”

Professor Shirley also expressed his gratitude to Andrew Messado, GraceKennedy Group CFO, for his exemplary leadership during the transition period, following Don Wehby’s temporary leave of absence as Group CEO, in late 2024. The GraceKennedy Chairman noted, “Mr. Messado’s steady hand ensured the company’s continued momentum, and his contributions during this period are gratefully acknowledged.”

These leadership changes are in keeping with the company’s succession plan and are designed to ensure continuity and drive future growth, in line with its 2030 Vision of becoming the Caribbean’s #1 brand with Jamaican roots and a global reach.

GraceKennedy Limited has named Frank James as its new Chief Executive Officer (CEO) as it announced the retirement of Don Wehby from the post.

In October last year, Wehby announced he was taking temporary leave from his role to focus on his health.

In a media release on Tuesday, GraceKennedy said Wehby will retire as Group CEO on February 14 and step down from the board of directors.

Wehby joined GraceKennedy in 1995 and was appointed Group CEO in 2011. During his tenure, the company more than doubled in size with revenue moving from $58 billion in 2011 to $155 billion in 2023.

Professor Gordon Shirley, Chairman of GraceKennedy Limited, commented, “Don Wehby is an exceptional leader who sees opportunities in challenges and leads by example. We are grateful for his innovative spirit, impeccable work ethic and dedication to ensuring that the company continues to make a difference in the communities we serve. Don’s leadership and vision has been instrumental in shaping the company into what it is today.”

James, who is the current CEO of the company’s Domestic Foods Division and former Group Chief Financial Officer, will assume the position of Group CEO on February 14 and be appointed to the board on the same date.

James joined GraceKennedy in 2005 as Vice President of Strategic Planning and Corporate Development. He quickly moved through the ranks, occupying senior roles in both the Food and Financial Services Divisions, before he was appointed Group CFO in 2012. He was also appointed to the board of directors that same year.

In April 2019, James was appointed Chief Executive Officer, GK Foods Domestic, the largest division in the group of companies, where he has championed growth and efficiency. Under his leadership, revenues for GK Foods Domestic grew by more than 60 per cent up to 2023.

In commenting on his new role, James. said, “We will continue to focus on delivering value to our customers, shareholders, and the communities we serve.”

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Corporate Movements – January 2025

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2 weeks ago

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January 14, 2025

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Scotia Group Jamaica Limited has announced the resignation of Perrin Gayle, Executive Vice President of Retail and Small Business Banking and Acting Head of Retail (Caribbean and Central America) effective January 24, 2025. Perrin joined the organization in 2012 and held progressively senior roles in both Trinidad & Tobago and Jamaica. During his tenure, Perrin made a very strong contribution to our team, and we wish him well. Upon Perrin’s departure, Yvett Anderson, the current Director of Customer Experience & Advocacy, will support the business as Acting Head of Retail and Small Business for Caribbean North and Central.

The Jamaica Stock Exchange (“JSE”) announces that the Managing Director, Dr. Marlene Street Forrest, will continue to serve in her current capacity until the Board of Directors has successfully completed the recruitment process for her successor.The JSE Board and Dr. Marlene Street Forrest are committed to ensuring a smooth transition to maintain the integrity, stability and continued growth of the organization. The recruitment process is well underway, and the Board remains focused on selecting a candidate who will uphold the JSE’s legacy of innovation and excellence in capital market development.

VM Investments Limited (VMIL) advises that Mrs. Nicole Adamson, who held the post of  Manager, Research, Business Planning and Investor Relations at VMIL and VM Wealth Management Limited (VMWM), resigned from the company effective December 31, 2024.

The Board of Directors of Pan Jamaica Group Limited (‘PJG’) has confirmed that Stephen Facey and Jeffrey Hall will remain as Chairman, and Vice Chairman & Chief Executive Officer (‘CEO’) of PJG, respectively. PJG previously indicated its intention to name a successor to Mr. Hall as CEO and simultaneously to appoint Mr. Hall as Executive Chairman of PJG with effect from January 2025. The PJG Board has confirmed that both the company and the persons involved are completely satisfied with the current governance and executive leadership arrangements, and accordingly, the Board has elected to defer the planned succession.

Pan Jamaica Group Limited (‘PJG’) announces that Mr. Eric Scott, Deputy Chief Financial Officer will be leaving PJG to pursue other opportunities, effective March 31, 2025.

The Board of Directors of Derrimon Trading Company Limited (DTL) is pleased to announce the appointment of Ian C. Kelly, CD, as Chief Executive Officer effective January 1, 2025. Mr. Kelly, who joined Derrimon in 2011, most recently served as Group Chief Financial Officer, Executive Director, and Divisional Director at Sampars, Corporate Planner and Finance Director. Derrick Cotterell, the outgoing CEO and Chairman, will assume the role of Executive Chairman after 26 years of visionary leadership at the helm of the company. This leadership transition aligns with Derrimon’s robust corporate governance and strategic succession planning, ensuring the separation of the roles of CEO and Chairman. Mr. Kelly’s extensive accomplishments at Derrimon include spearheading the execution of many key mergers and acquisitions, the initial IPO in 2013 and negotiating and securing funding for Derrimon’s transformative projects, including the J$4.076 billion Additional Public Offering in 2021. His commitment to innovation and operational excellence positions him as a transformative leader for Derrimon’s next chapter.

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Artificial Intelligence

CARIBIZTECH 2025 “Harnessing Generative AI: Revolutionizing Logistics, Fulfillment, Ecommerce and Transportation Across the Caribbean’s Digital Future”

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January 14, 2025

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A Silicon Mountain Project – Artificial Intelligence Summit 2025, Silicon Mountain Mandeville Manchester Jamaica. October 1-3 2025.

2025 Event Theme: “Harnessing Generative AI: Revolutionizing Logistics, Fulfillment, Ecommerce and Transportation Across the Caribbean’s Digital Future.”

Event Structure: • Duration: 2 days   • Format: In-person   • Sessions: 4 thematic segments, each featuring a keynote presentation followed by two panel discussions

Key Features of CARIBIZTECH:

Expert Keynotes & Panels: Industry leaders from across the Caribbean and beyond will share insights on AI and its impact on, Logistics, Fulfillment, and Transportation, Fintech Innovations and Mobile Payments, E-commerce, Voice Commerce, and Social Commerce cybersecurity, cloud computing, and other emerging technologies.

Startup Ecosystem & Pitch Competitions: CARIBIZTECH will feature a showcase for startups to pitch their ideas, enabling entrepreneurs to connect with venture capitalists and investors.

Workshops & Training: Participants will engage in hands-on sessions aimed at upskilling in areas like blockchain, data science, and AI.

Networking & Collaboration Hubs: CARIBIZTECH will create spaces for participants to build partnerships, echoing the community-building focus of the event.

Celebration of Regional Talent: A special emphasis will be placed on spotlighting Caribbean-born innovators and fostering collaboration between local and international stakeholders.

Impact Goals:

  1. Foster a thriving tech ecosystem in Mandeville Central Jamaica.
  2. Attract global attention and investment to Silicon Mountain.
  3. Cultivate a culture of innovation and collaboration across the region.

Day 1:

Session 1: Revolutionizing Logistics, Fulfillment, and Transportation with Generative AI

• Keynote Presentation: “AI-Driven Logistics: Navigating the Future of Caribbean Transportation” Overview: Examine how Generative AI is optimizing supply chains, enhancing delivery systems, and transforming transportation networks in the Caribbean.

• Panel Discussion 1: “Smart Ports and AI: Enhancing Maritime Logistics” Overview: Explore the integration of AI in port operations to improve efficiency and security.

• Panel Discussion 2: “AI in Urban Mobility: Redefining Public Transportation” Overview: Discuss AI applications in public transit systems to enhance commuter experiences.

Session 2: The Evolution of Commerce: E-commerce, Voice Commerce, and Social Commerce in the Age of AI

• Keynote Presentation: “Voice-Activated Shopping: The Next Frontier in Caribbean Retail” Overview: Delve into how AI-powered voice commerce is reshaping consumer interactions and purchasing behaviours.

• Panel Discussion 1: “Social Commerce Strategies: Leveraging AI for Business Growth” Overview: Discuss how businesses can utilize AI to enhance social media-driven sales.

• Panel Discussion 2: “AI Personalization in E-commerce: Enhancing Customer Experience” Overview: Examine AI’s role in creating personalized shopping experiences to boost customer satisfaction and loyalty.

Day 2:

Session 3: Fintech Innovations: Redefining Mobile Payments with Generative AI

• Keynote Presentation: “AI-Powered Fintech: Revolutionizing Mobile Payments in the Caribbean” Overview: Explore how Generative AI is enhancing security, efficiency, and accessibility in mobile payment solutions.

• Panel Discussion 1: “Blockchain and AI: Securing the Future of Digital Transactions” Overview: Discuss the convergence of AI and blockchain technologies in creating secure payment ecosystems.

• Panel Discussion 2: “Financial Inclusion through AI: Expanding Access to Banking Services” Overview: Examine how AI-driven mobile payment solutions are promoting financial inclusion in underserved communities.

Session 4: Generative AI: Shaping the Future of Technology and Business

• Keynote Presentation: “The Creative Machine: Unleashing the Potential of Generative AI” Overview: Provide an in-depth understanding of Generative AI and its broad applications across various industries.

• Panel Discussion 1: “Ethical Considerations in AI: Balancing Innovation and Responsibility” Overview: Discuss the ethical implications of AI development and deployment, emphasizing responsible innovation.

• Panel Discussion 2: “AI and the Future Workforce: Preparing for Emerging Opportunities” Overview: Explore how AI is transforming job markets and the skills required for future employment.

Day 3: Additional Features to Enhance Appeal (Optional)

Caribiztech 2025 aims to provide a comprehensive and engaging experience that addresses the latest trends and opportunities in Generative AI, tailored to the Caribbean context.

Startup Showcase: An Exhibition area where emerging tech startups can present their AI-driven solutions, fostering networking and investment opportunities.   Workshops and Masterclasses: Interactive sessions providing hands-on experience with AI tools and technologies, tailored for different expertise levels.  Networking Events: Organized meetups, including a welcome reception and closing gala, to facilitate connections among attendees.

Diversity and Inclusion Panels: Discussions focused on promoting inclusivity within the tech industry, ensuring diverse perspectives in AI development.

Knights$Angels Investor Pitch Sessions:

Opportunities for entrepreneurs to pitch their AI-based business ideas to potential investors, encouraging funding and collaboration.   “Knights$Angels” is an exciting, high-stakes 60-minute made-for-TV program that brings the world of investment to life by providing exclusive insight into the real-world decision-making processes of investors and how entrepreneurs pitch their ideas.   The show aims to transform how investment is perceived in the Caribbean, focusing on providing a clear understanding of how deals are made and what it truly takes to secure investment.   The programme will specifically focus on Technology and Generative Artificial Intelligence (AI), covering emerging areas like Voice Commerce, Transportation and Logistics, and related tech trends that are shaping the future. Entrepreneurs with innovative ideas in these fields will have the unique opportunity to pitch to investors who are ready to commit capital to fuel the growth of these high-potential ventures.

01 Presentation Opportunities :

For more information on presentation opportunies please email thesiliconmountainproject@gmail.com with the reference “Presentations”  or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

02 Sponsorship Opportunities

For more information on Sponsorship Opportunies please email thesiliconmountainproject@gmail.com with the reference “Sponsorship”  or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

03 Exhibition Opportunities

For more information on Exhibition Opportunies please email thesiliconmountainproject@gmail.com with the reference “Exhibitions” or call  (876) 630 2216 (O) (876) 542 3719 (M) siliconmountainproject.com

 

 Official Event Organisers : 360 Signature Events is an AMK Communications Limited Company. Operating from “Silicon Mountain – The Business Technology and Innovation Hub of the Caribbean” Mandeville Manchester Jamaica. 360 Signature Events, specializes in organizing Exhibitions, Conventions, Conferences, Seminars, Sporting and Hospitality Events, Road Shows, Brand Promotions, Product Launches, Incentive Programs, and other Special Events. Let us help you make your next event extraordinary. To learn more, check the following link: www.amkcom.com, 360signatureevents@gmail.com

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