January 13, 2021

Small and micro operators are set to receive advice and guidance on best practices to grow and strengthen their businesses this year through a virtual entrepreneurship expo to take place later this month. The ‘Virtual Entrepreneurship Expo 2021’, dubbed a ‘one-of-a-kind event’, aims to promote sustainable growth and development among local entrepreneurs. The free live streamed virtual event hosted by the Jamaica Social Investment Fund (JSIF), through the European Union (EU) funded Poverty Reduction Programme (PRP) IV and in partnership with the FLOW foundation, will take place from January 19-21. “As a long-standing strategic partner in Jamaica’s development, we are proud to be on board for this expo which is well aligned with our foundation’s focus of driving digital education and supporting micro, small and medium-sized enterprises (MSMEs). The expo is being staged at a critical time and is an excellent opportunity for our entrepreneurs as well as others interested in starting their own businesses to grasp fundamental and strategic concepts that will help them on their journey. We are happy to support the JSIF with this venture, and also to provide the technology that will take this transformational event to entrepreneurs in Jamaica and the wider region,” said Stephen Price, chairman of the Flow Foundation. Under the theme ‘Perseverance During these Challenging Times’, the expo will feature a combination of presentations and interactive panel discussions with some of the country’s foremost business leaders— who will share insights on the challenges of navigating business in the COVID-19 environment as well as make recommendations on how to pivot amid the difficulties. By way of a 3D Virtual Tour, viewers will also have an opportunity to explore the service offerings of social enterprises and community business organisations. Recognising the importance of community-based social intervention programmes as a key driver of youth development and overall well-being, this joint JSIF/EU programme seeks to provide an opportunity to highlight 30 targeted community-based enterprises and social enterprises on their various programmes and products. The expo will also provide training and digital engagement opportunities aimed at enhancing, expanding and improving these entities in their business efforts. “Jamaica’s innovative spirit is alive and full of potential among our youth. In order to see more positive outcomes for our country overall, more must be done to enhance the natural talents our young people already possess, especially those in underserved communities. Instilling an appreciation for responsible business practices is an important step,” said Celia Dillon, PRP project manager at JSIF. “As [the] challenges increase — the need to improve policies and programmes to create an enabling environment for Jamaica’s youth to prosper becomes more urgent. The JSIF has always been keen on building projects that empower and educate. We believe that the Virtual Entrepreneurship Expo is a necessary vehicle to set the focus of our country’s young minds as they take on 2021 and beyond,” she added. Source: http://www.jamaicaobserver.com/business-observer/small-businesses-to-benefit-from-virtual-entrepreneurship-expo_211938?profile=1056

Digicel Business has launched its new Digicel Business Hub product, an all-in-one solution that provides small and medium-sized enterprises (SMEs) with a package of digital services including Internet, productivity and network security apps, digital telephony and mobility, which also includes the use of smartphones and tablets that enable their employees to work remotely. According to the results of an extensive Digicel Business market research, now more than ever, SMEs are looking for ways to integrate more digital technology into their business as they continue to adjust to new ways of remaining competitive. The research, conducted in late 2020, known as the B2B COVID-19 Pulse Survey, involved 840 business owners and decision-makers across the Caribbean. It pointed to the need for more technology support that will enable these firms to improve their operational efficiency. The Digicel Business Hub base bundle comes fully loaded with business Internet, local area network (LAN) and Wi-Fi, mobile phone with business plan, smart office phones, Microsoft 365 and Teams app, anti-virus security software, device endpoint management, and professional and managed services. The suite of enterprise-quality services is available for one flat fee, with the option to include additional users or make custom add-ons, Digicel said. “Digicel is prepared to help support businesses in Jamaica as they make that transition to the new ways of working. This package of services addresses the uncertainties that SMEs had about their future in business. It empowers companies to perform at their best, with the knowledge that they have the right tools and support services behind them,” said Darragh Fitzgerald Selby, general manager for Digicel Business. “Twenty-twenty was a challenging year for everyone, but in many instances it also provided the catalyst for innovation, with many venturing into entrepreneurship as the traditional economy became more unpredictable. The value of a reliable IT system and support team also became even more apparent and we’re proud that we can position Digicel Business Hub to help small and medium businesses in this way,” he continued. Source: http://www.jamaicaobserver.com/business-observer/smes-to-get-fully-digital-with-new-all-in-one-digicel-business-hub-services_212043?profile=1056

Two debt securities valued at $7 billion will list later this month on the JSE Private Bond platform that was launched on Monday by the Jamaica Stock Exchange. “NCB Capital has in fact received a listing for two existing corporate bonds. The total amount has an outstanding value of $7 billion,” said Stacy-Ann Tait, vice-president of investments at NCB Capital Markets Limited, in her address at the online launch of the platform. “That’s a nice way to kick-start the market.” Tait did not identify the issuer of the bonds, but described the entity as a strong blue-chip company. It’s expected that Guardian Holdings Limited – a Trinidadian company, which like NCB Capital is owned by Jamaican financial conglomerate NCB Financial Group – will be the first to list on the private bond market, but NCB Capital declined to confirm or deny the information. The JSE Private Bond Market is the latest initiative to widen and modernise Jamaica’s capital markets. The JSE portal will facilitate the trading of these assets, also known as private placements, by brokers and accredited rich investors. For more than a decade, brokers have been able to arrange placements on behalf of corporate clients, for working capital and other purposes. Such placements done under exempt distribution guidelines developed by the regulator, Financial Services Commission, are only open to subscription by rich or sophisticated investors and institutions, and as such, issuers are not required to produce prospectuses. The placement market is currently valued at around $480 billion, or about a quarter of the $1.7 trillion of equities that trade on the JSE’s various markets. JSE Group Managing Director Marlene Street Forrest said the new platform opens up opportunities for new listings and more securities for qualified investors to trade, it will need enhancements over time. “As we launch the private market today, we realise that it is not a perfect market. We know that as with the other markets, we may be required to lobby for the introduction of companion laws or changes to regulation to enhance its efficiency,” said Street Forrest. “Today, however, we begin the journey and understand that the conversation continues for future facilitation, whether from our brokers, issuers, government or the JSE Group.” The private bond platform builds on separate market initiatives, including a new trading and surveillance platform, the development of the Jamaica Social Stock Exchange platform, the implementation of a new fund management system, the pilot on the trading of digital currency, a new mobile app for apple devices, the online trading phase three, and the upgraded JSE eCampus website. “We understand that to build a vibrant private market is an ongoing process, and we welcome you to join with us in this journey as we resolve at the JSE to make a positive and lasting difference within the capital market. The possibilities are endless,” Street Forrest said. Going forward, the exchange plans to pursue short selling, trading of Government of Jamaica bonds, online trading on mobile devices, and the addition of new member dealers. Source: http://jamaica-gleaner.com/article/business/20210113/7b-listings-kick-start-private-bond-trading-platform

Derrimon Trading Company is pumping US$9 million ($1.3 billion) into the acquisition of Brooklyn-based grocery store businesses, FoodSaver New York and Good Food for Less, which sees the distribution company founded by Derrick Cotterell expanding beyond its home border for the first time. The deal is expected to close within this quarter, part-financed by proceeds from the $3.5-billion additional public offering of shares, or APO, that Derrimon currently has on the market. Derrimon has incorporated a New York subsidiary, called Marnock LLC, as the vehicle for the acquisition of the Brooklyn-based operations. The cash-and-shares transaction will see Oralcrys LLC, an entity beneficially controlled by the former owner-operator of those businesses, taking a 20 per cent stake in Marnock. The new assets are also expected to immediately add 25 per cent to the group’s top-line income. To ensure customer retention, Derrimon will work closely with the previous owners while it gets familiar with the New York market and its preferences. “It’s a transitional role,” said Cotterell, the chairman and CEO of Derrimon. “The owner has a good relationship with the customers, so that helps us. We’ll leverage his relationship, and with our management skills, we expect business to be good,” he told the Financial Gleaner. FoodSaver and Good Food join the Sampars and Select supermarket brands operated in Jamaica by the two-decade-old distribution company. Derrimon also owns flavour maker Caribbean Flavours & Fragrances Limited and pallet maker Woodcats International Limited. Marnock joins the family as the fifth directly held subsidiary. The acquisition of the two businesses, both located at 83rd Street, gives the company the foothold it needed to attain the goal of entering the New York tri-state area, where its past contact has been confined to an online sales initiative through which persons in the US could buy goods for their families online and have them delivered to homes in Jamaica. “We need more income out of the US. It is a big growth area for us, and we want to service Caribbean and African people living in the US out of those locations in New York,” Cotterell said, in an indication that while Derrimon is going after business in the tri-state, it eventually plans to widen its reach in the US market. “The stores will also be used as fulfilment centres for anyone ordering goods through Sampars online,” he added. FoodSaver, which sells groceries, fresh produce, fresh fish and frozen seafood, generates US$25 million in annual sales primarily from supplying restaurants. Good Food NY is a speciality supermarket with products tailored to the needs of the African and Caribbean diaspora located in the New York tri-state area. The business currently generates US$1.16 million in sales. As part of its growth strategy for the new acquisitions, Derrimon plans to stock more Jamaican made products and fresh produce in the short term, but is also looking to build out an online shopping platform to drive up sales. “We have thoughts about how we can grow the business, but right now its consolidation, transition, get the systems working, and then we look to grow,” Cotterell said. Derrimon’s APO is structured to raise US$3.5 billion. The offer is fully underwritten by lead arranger and broker Barita Investments Limited. Around a third of the APO proceeds, $1.2 billion, will repay debt, while $1.1 billion will fund the purchase of FoodSaver and Good Food for Less, while another $500 million will fund the expansion of retail operations in the parish of Clarendon, and $200 million will be poured into the Delect food brand and product line. The rest is for working capital and covering the cost of the APO transaction. Derrimon is a near $13-billion company by revenue whose growth over recent years has been fuelled by M&A. Up to September 2020, group revenue was close to flat over the nine-month period at $9.6 billion, from which Derrimon earned a profit of $258 million attributable to owners, or more than 9 cents per share, reflecting a gain of 28 per cent at the bottom line. Source: http://jamaica-gleaner.com/article/business/20210113/derrimon-makes-first-foreign-acquisition-buys-two-supermarkets-new-york