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Jamaica’s first resident diplomat to India is making the case for the strategic importance of increased trade and investment flows between the two countries on the eve of his departure to take up the post of envoy in the second most populous nation in the world, the second-largest democracy and the sixth-largest economy. Having got a feel for diplomacy as Jamaica’s ambassador to Mexico for the past two years, business development and marketing specialist Jason Hall is looking to logistics investment, the sustainable energy sector, high-end professional services outsourcing, the knowledge economy and agribusiness development as top areas for the pursuit of vastly increased trade in goods and services, as well as investments between Jamaica and India. In this focus, he is at one with his counterpart, Runsung Masakui, India’s high commissioner who took up office in Jamaica last November. WATCH: Jason Hall eyeing to boost Jamaica’s earnings from Indian market The current generally low level of trade in goods between the two countries and the gaping trade imbalance favouring the Asian nation, which now sells about US$61 million worth of goods to Jamaica each year, is a source of concern for both men charged with promoting the economic, social and political interests of their respective countries. Jamaica imports mainly pharmaceuticals, motor vehicles, iron, steel and fish products from India, and sells mainly electrical machinery and aluminium to the Asian nation. Turning the tide on Jamaica’s paltry earnings of less than US$280,000 from exports to India’s humongous market of 1.3 billion people is a motivating force for Hall; firing up the Jamaican as he prepares for his second foreign posting, he told the Financial Gleaner in an interview at the foreign ministry in New Kingston this week. “From a strategic perspective, India’s success, capacity and expertise in science and technology recommends it as a perfect partner for Jamaica to build capacity in those areas, with important application in agribusiness and agro-processing, and enhancing route to market for our farmers,” Hall said. He cited processed foods, coffee, spices, condiments, essences and black castor oil as products with great potential for increased exports to India, which recorded a gross domestic product of US$2.8 trillion in 2020. Jamaica’s new high commission to India, who takes up office later this month, is also looking forward to a take-off for his home country in global digital services from enhanced India-Jamaica relations, providing opportunities for the greater outsourcing of back-office operations of Indian companies to Jamaica in the areas of finance and legal services, among others. In this regard, Hall views Jamaica’s nearshore location to the large Indian target market of the United States and the island’s high-quality English language proficiency as a distinct asset for increased high-value knowledge processing outsourcing business. “Currently, there is business processing outsourcing, but we have a tremendous opportunity here for Jamaica to move up the value chain. Additionally, there is potential to increase our capacity in medicine, pharmaceuticals and healthcare delivery,” the diplomat said. In his view, there is also scope for significant knowledge transfer in the area of solar energy development with India’s proven track in the area and its hosting of the International Solar Alliance, of which Jamaica is a member. Increased cooperation in tertiary education delivery and scientific knowledge transfer from India to Jamaica, through educational collaboration, are also on the cards. The promotion of Jamaica’s special economic zone legislation and infrastructure will be on the agenda for Hall, who is also accredited to Singapore, Sri Lanka, Malaysia and Nepal. In this regard, he brings to the job several years’ experience in investment and trade promotions as the regional manager for the Caribbean and Latin America for Jamaica’s state investment and trade promotions agency, Jampro. He also marketed Jamaica as deputy director for cruise shipping, attractions and events at the Jamaica Tourist Board, JTB; and was Caribbean marketing and business development manager for food manufacturer and distributor Nestlé. Hall speaks five languages, including French, Portuguese, Spanish and siSwati, spoken by the Swazi people of southern Africa. Not to be overlooked, he said, is the export of Jamaica’s cultural content, and a collaborative framework involving Jampro, JTB, other state agencies and private-sector groups is said to already be in place to carry forward this and other trade and investment promotions activities. Hall pointed to an economic diplomacy programme out of Jampro and the Jamaica House cultural and manufactured products and services showcase already pioneered by the JTB, as areas in which he has worked and on which he will be drawing heavily as Jamaica’s high commissioner to India, and ambassador to other nations in the Indian subcontinent and other parts of southern Asia. In the ongoing effort to transition Jamaica from a solely goods-trading economy to being mainly a service-based economy, Hall said the opportunities presented by India in this regard are real and are being taken seriously.

IDB Invest, a member of the IDB Group, through a recent agreement with JMMB Bank has provided the bank access to US$35 million with a five-year tenure to facilitate increased financing to small and medium-size enterprises (SMEs). The project will also increase the availability of long-term financing to JMMB Bank to support the growth of its SME lending service, while contributing to the maturity and structure of its debt profile. This will in turn provide a diversification of funding sources, thereby decreasing the dependence of shorter-term deposits, to the benefit of SMEs. Jerome Smalling, CEO and executive director of JMMB Bank, said the partnership underscored the bank’s commitment to assist SMEs to scale and grow their businesses through the provision of holistic solutions to support them throughout their business life cycles. “We recognise that access to affordable financial solutions plays a key role in business operation and growth. The bank believes that this sector has tremendous growth potential and, in leveraging further support to the sector, the company is seeking to play its part in helping SMEs to realise their full potential and contribute even more to the country’s development,” he stated in a company release last week. The partnership will also see IDB Invest lending support to the bank on the development and implementation of an environmental and social management system. In addition, IDB Invest will provide advisory services to bolster internal capacity and an action plan to ensure that JMMB Bank’s human capital strategy attracts and retains the best talent pool. CEO of IDB Invest, James Scriven said his organisation was pleased to have closed this transaction with JMMB Bank. “This operation will allow SMEs in Jamaica to have greater access to financing, which makes me proud as this is part of our commitment to strengthen and support the increase in credit financing for SMEs within the Caribbean region by generating more jobs and promoting their development,” he stated. According to IDB Invest, the forging of this agreement also stemmed from the bank’s strong creditworthiness and capacity, which it said were also supported by its solid and stable financial performance. JMMB, as a part of its larger group strategy, has sought to to add value to its SME clients through the provision of financial partnership, resources, innovative financial solutions and by building a network to support growth. Through the opening of its SME resource centres in Trinidad and Jamaica within the last year, small businesses are provided with the relevant coaching and advisory services including marketing, taxation, accounting, business plan writing and other general financial management and back office support. Through its partners and other oganisations, JMMB has designed these SME Resource Centres to help small operators to improve their operational efficiencies as well as to lend expertise and provide access to resources — all of which will ultimately help them to grow their businesses to the next stage.

In Jamaica, where a significant per cent of employment is provided by micro and small entrepreneurs, taking ‘small’ ideas seriously is paramount to moving the economy forward. For two decades, JN Small Business Loans (JNSBL) has facilitated the emergence and sustenance of thousands of micro and small businesses across Jamaica, which, before the pioneering move by what was then the Jamaica National Building Society, had few places they could turn to seek financing for their operations, because: – Their owners and their operations lacked the assets to secure financing; – They could not articulate or present how they would grow their ideas; – With no assets to secure financing and little paper work to demonstrate the businesses’ performance and future projections, they were deemed too risky. But with the need to borrow as little as $5,000; an opportunity to use furniture or appliances to collateralise loans and a relationship on which micro and small businesses could depend to assist them to grow, JNSBL has demonstrated that not only can micro and small business operators be loaned funds, but that they also repay effectively. Over its two decades, the company has approved nearly 500,000 loans valued in excess of $48 billion, which have helped to maintain livelihoods and create jobs for some 200,000 Jamaicans, who merely need someone to take them seriously. Through sustained partnerships with entities, such as the Development Bank of Jamaica, EXIM Bank, the National Insurance Fund, the Tourism Enhancement Fund and the Jamaica Business Development Corporation, JNSBL has been able to channel financing to micro entrepreneurs in key sectors and provide capacity-building to assist with their sustainable growth. And, through partnerships beyond Jamaica, JNSBL has been able to forge diplomatic ties and establish cooperation that has enabled the company to share its success and also expand the body of knowledge available on the role of the micro and small business sector to the economy. This includes its continued partnership with the United States Agency for International Development, from which has spawned opportunities for study tours for businesses in Latin America and the Caribbean, as well as technical assistance and exchange opportunities for local micro and small businesses. FINANCING IMPROVES OUTCOMES; TECHNOLOGY IMPROVES ACCESS There is no doubt that having an available resource to which micro entrepreneurs can tap into creates a boon for businesses, their owners and their families to flourish. In 2008, a study by the Tropical Medicine Research Institute at The University of the West Indies underscored that there is a positive relationship between loan access for micro entrepreneurs and their personal economic achievement. The study showed that beneficiaries of loans from JNSBL enjoyed a better standard of living. They were more likely to own a home and had more expendable income than those who did not benefit from a loan to grow their operations. Technology has also been an important tool leveraged by JNSBL to strengthen access to financing for micro and small businesses. For more than a decade, the company has used technology to make payments convenient for clients and to also make sound decisions that allow it to serve them even better. Through its uniquely designed kiosks and JN Bank Smart ATMs, clients can visit JN Bank branches and point-of-sale locations in post offices to make their loan payments conveniently and quickly. The Global Information System (GIS) technology allowed JNSBL to equip its client relations team to make sound determinations about the vulnerability of clients, to consider external and environmental threats, as they worked to support and tailor solutions to meet the needs of our clients. JNSBL continues to invest in technology to better support the industry and to drive down the costs associated with supporting the sector. EMPOWERING THE MICRO AND SMALL BUSINESS SECTOR The innovations go a far way to support the Jamaican economy— our micro and small business sector, who, in addition to being provided with access to financing, are given an opportunity to establish or tighten personal relationships with the formal financial sector through the ownership of a bank account, so that they can develop financial footprints that will redound to even broader windows to access capital. But this access must be protected and recognised by the State to deepen financial inclusion and the sector’s participation in the growth of the economy. Over the years, JNSBL has, therefore, been a keen participant and supporter in the development and passing of legislation, such as the Security Interests in Personal Property Act (2013) to broaden the forms of collateral that can used to secure financing; and now the Microcredit Act, recently passed in the Senate to protect, in law, our micro entrepreneurs whilst supporting the ongoing development of the sector. JNSBL welcomes this legislation, not only for the legal protection it will afford our clients, but the confidence it will spur in the importance of the sector and the people who drive it. To grow, we believe firmly that we must build the confidence by reassuring our people that we will provide greater access to financial services for all Jamaicans while supporting their ongoing development. Gillian Hyde is the general manager of JN Small Business Loans Ltd

A key stakeholder in the export-import process has welcomed the tabling of the Customs Act, 2020, declaring that the proposed law will position the Jamaica Customs Agency (JCA) as a major player in facilitating modern international trade. Clive Coke, president of the Customs Brokers and Freight Forwarders Association of Jamaica (CBFFAJ), said that under the current 1941 legislation, the JCA focused primarily on revenue collection and the imposition of fines and penalties on those who violate the law. “This new act will definitely speed up things and improve efficiency within Customs and for the importing and exporting public,” Coke said in a Gleaner interview. The CBFFAJ head said that the proposed new statute would place Jamaica in a better position to improve its ranking in the Logistics Performance Index (LPI). “With Jamaica having an interest in improving its ranking in the logistics index, many of these things are dependent on Jamaica Customs stepping up its game and embracing worldwide standards other than just seeing itself as an enforcer,” he said. Jamaica ranked 113 out of 160 countries in the 2018 LPI. Based on the World Bank’s collection of development indicators, the efficiency of Jamaica’s customs-clearance process was reported at 2.42 in 2018 on a scale of one to five, where one is low and five is high. The LPI overall score reflects perceptions of a country’s logistics based on efficiency of customs-clearance process, quality of trade and transport-related infrastructure, ease of arranging competitively priced shipments, quality of logistics services, ability to track and trace consignments, and frequency with which shipments reach the consignee within the scheduled time. Commenting on the role of customs brokers in the facilitation of trade, Coke said that for the first time, persons in Jamaica who ply their trade as brokers and freight forwarders have been recognised in the parent legislation. He said that while regulations acknowledged the role of customs brokers, the current archaic law of 1941 did not recognise them. On the vexed issue of individuals who pretend to be customs brokers in an effort to fleece unsuspecting members of the public, Coke said that the sector had been grappling with this problem for many years and had reported the matter to the authorities at the JCA. He said that many persons presented themselves at the wharf under the pretence that they were licensed customs brokers. Jamaica Customs has a gazetted list of authorised customs brokers. DECEIVED BY COUNTERFEIT Coke said that some members of the public had been deceived by persons who posed as customs brokers and lost significant sums of money. “It is one of those things that the Shipping Association of Jamaica and the Customs Brokers and Freight Forwarders Association have been looking to actually operate the entire wharf area as a logistics park, so that we can have more control of these unauthorised persons who find themselves in the space,” he told The Gleaner. The Customs Act, 2020, will repeal and replace the current 1941 law in order to modernise customs practices and procedures to effectively and efficiently facilitate trade. The memorandum of objects and reasons states that the modernisation of customs practices is expected to bring benefits for the trading community and the JCA by improving customs-clearance and revenue-collection processes, simplifying procedures for businesses, and providing more efficient service delivery to the public. Meanwhile, Coke said that customs brokers had experienced a fall-off in business of between 30 per cent and 40 per cent owing to the impact of COVID-19. He said many members of the CBFFAJ in Montego Bay, who depend on the tourism sector for business, have had to reduce staff in the wake of low occupancy levels at the hotels.

Minister of Education, Youth and Information Fayval Williams has welcomed the launch of the Dr Joseph Tait STEAM Infusion project at Jamaica College. Speaking at the launch and opening of the Science, Technology, Engineering, Arts and Mathematics (STEAM) Laboratory on Wednesday, Williams said the initiative, which is funded by Dr Tait, is in line with the thrust of the Ministry to enable students to have greater access to the technology and the resources needed to thrive as 21st century learners. “At the Ministry, we are committed to the task of ensuring that none of our students is left behind as we seek to eliminate the digital divide that exists in our society. This divide has been made even more evident with the COVID-19 pandemic and the need for our classrooms to be moved to the virtual space,” she said. The Minister argued that the opening of the Laboratory is one of the best examples of how crucial it is for partnerships to be encouraged in education. “Because of the outreach of one man and his team, many young men will be able to be inspired in this lab, opening up to them a world of possibilities,” Williams said. She noted that, overall, the STEAM Infusion project is forward-thinking and innovative. “If Jamaica is to be the place to live, work, raise families and do business, then our workforce, through our education sector, has to be equally competitive on the global market. The investment truly begins in education.” She further noted that the STEAM movement has been earning traction over the years in Jamaica and other countries. She added: “I am sure we will reap the reward of Dr Tait’s investment for years to come and I am sure there will be more hands available to join him and others like him on this journey to improve the education of our children.” For his part, Board Chairman, Jamaica College, Michael Bernard, said the school aims to be amongst the leading institutions in Jamaica in the use of technology. In his remarks, Dr Tait said he feels “a certain amount of excitement at what this could hold for the future and I also feel a certain amount of gratitude… [that] this little country boy from Clarendon could do this for his college and for his country”. “I am grateful for the support of the Jamaica College community,” he said, adding that he will also be supporting the implementation of an amphitheatre for the dramatic arts at the school.

Minister of Agriculture and Fisheries, Floyd Green, has endorsed the proposed 450-acre Land We Love Organic Greenhouses project, the largest commercial organic farm to be established in the Caribbean, hailing it as impressive and one that will supplement agricultural production in the country. Speaking at a briefing meeting with Jamaica-born Canadian Michael Allen, who has 20 years experience in agriculture and organic greenhouse business in Canada, Green welcomed the project, stating that there was a need for large projects that will provide economies of scale as well as consistency in production and quality, factors that were critical for sustained agricultural growth. Green also stated that organic farming would provide the opportunity for niche marketing with crops such as ginger and turmeric having a huge export market potential. The Agriculture Minister expressed a keen interest in the training component of the project that will include collaboration with universities and high schools even as he called for the setting up a training facility. This facility, he said, would, among other things, create a hub and robust training programme for the region, as well as better equip seasonal farm workers. The project, which will be located on former sugar cane lands in St Elizabeth, will be carried out in three phases over a seven-year period, with the construction of 10-acre greenhouses, a storage facility and a 145-acre field crop area and will provide employment for over 350 persons, targeting 70 per cent women. Crops to be cultivated include tomatoes, lettuce, bell peppers, strawberries, turmeric, ginger and garlic. The project will feature the Cravo retractable roof production system designed for tropical climate and will be solar powered.

Jamaica is now compliant or largely compliant with 27 of the Financial Action Task Force’s (FATF) 40 recommendations. The Financial Action Task Force is the global money laundering and terrorist financing watchdog. “[This is] a substantial improvement over compliance or partial compliance with only 17 out of 40 FATF Recommendations in our mutual evaluation which was undertaken in 2015 and published in 2017,” Minister of Finance and the Public Service, Dr. the Hon. Nigel Clarke, pointed out. The Minister was delivering a statement in the House of Representatives on January 19. Dr. Clarke explained that Jamaica’s mutual evaluation report against the International Standards on Combatting Money Laundering and the Financing of Terrorism and Proliferation (FATF 40 Recommendations) was done in 2015 by the Caribbean Financial Action Task Force (CFATF) and published by the CFATF in 2017. He said the report reflected a substantial number of deficiencies in Jamaica’s legislative framework (also referred to as “technical compliance” with the Financial Action Task Force’s 40 Recommendations). Dr. Clarke noted that Jamaica received a rating of compliant or largely compliant with 17 out of the 40 Recommendations and based on that outcome, Jamaica was placed in the CFATF’s enhanced follow-up process, and as such, is required to submit a follow-up report at one of CFATF’s two Plenaries, held annually. “In December 2020, Jamaica submitted the third follow-up report, since its mutual evaluation report was published in early 2017. In this third follow-up report considered at the recently concluded December 2020 Plenary of the CFATF, Jamaica applied for a re-rating in 19 of the 40 FATF Recommendations in which we were previously deemed either partially compliant or non-compliant,” he noted. “I am happy to report that Jamaica received upgrades in 12 of those Recommendations, while the rating remained unchanged for six recommendations. Jamaica received one downgrade as a result of changes in the requirements of that Recommendation post the finalisation of our last mutual evaluation,” Dr. Clarke added. The Minister said that Jamaica needs to be compliant or largely compliant with at least 32 of the 40 Recommendations to come out of the “follow-up process” with CFATF. Meanwhile, Dr. Clarke said the positive outcomes reported are in large part due to the tremendous cooperation and collaboration among public sector agencies that are a part of the National Anti-Money Laundering Committee (NAMLC), chaired by the Bank of Jamaica. He especially recognised the invaluable work and support provided by the Ministry of National Security; Ministry of Foreign Affairs and Foreign Trade (MFAFT); the Attorney General’s Chambers (AGC); the Director of Public Prosecutions (DPP); the Office of the Chief Parliamentary Counsel; the Financial Services Commission (FSC); the Financial Investigations Division (FID); and the Bank of Jamaica.

Local builders have joined the Caribbean Cement Company Limited (CCCL) in crediting the Government’s decision to relax nightly curfew rules affecting the construction industry as early as last April with aiding the promising recovery in that sector. The Statistical Institute of Jamaica (STATIN) last week reported a seven percent growth in the construction subsector in the July-September quarter, which has boosted hopes within the industry for a quicker-than-expected return to normal production levels in 2021, as well as offering evidence of a predicted major turnaround in the economy during the year. CCCL General Manager Yago Castro recently attributed the record 940,000 metric tonnes of cement manufactured in 2020 to the company’s capital investment and the expertise of its employees, as well as Government policies including its management of the pandemic and, specifically, the removal of curfew limitations in April. “The market responded opposite to what might have been expected, given the pandemic. Instead of slowing down, construction grew, and we kept in step with our customers by meeting their demand consistently. We will continue to ramp up production as the market grows,” Castro explained. “The Government of Jamaica assessed the situation well and allowed critical sectors to continue operating, once certain protocols were followed. Prioritising health, while keeping economic goals in mind, has mitigated the negative impact on our sector. Moreover, we saw tremendous performance from our team, who remained focused, and I am really proud of their commitment,” he added. In an interview with the Business Observer, president of the Incorporated Master Builders Association of Jamaica (IMAJ) Lenworth Kelly agreed with the presumption, although noting that a continuing resumption of construction projects which had been halted by COVID-19 earlier in the year, as well as the long delayed start-up to buildings projects which were delayed since January, 2020, also impacted the figures. “When COVID-19 came, there was an immediate slowdown about March to June, as the results were new to everybody, including the Government, which was still trying to find its way. Some of us kept working, but things slowed down significantly,” Kelly stated.

As the demand for skills in coding and software development continues to grow worldwide, Jamaica is set to prepare thousands of youths to transform the country into a technological hub of the Caribbean, through the Amber HEART Coding Academy. The academy, which was officially launched on Thursday, January 14, is the brainchild of the Founder and CEO of the Amber Group, Dushyant Savadia and is a partnership with the HEART NSTA Trust, the Housing Opportunity Production and Employment (HOPE) Programme and the Art of Living Foundation. “Last year, the software development market was valued at US$487 billion and is expected to continue to grow in the COVID-19 context,” said Savadia.“Jamaica is uniquely positioned to take advantage of this growing opportunity. We are an English-speaking country, we have the talent and now, through the Amber HEART Academy, we will build the competencies.” The technical curriculum, equipment and training will be undertaken by the Amber Innovations business line of the Amber Group, and facilitated through the HEART/NSTA Trust. Students will undergo an intensive year-long residency training at the Stony Hill HEART/NSTA campus with an internship component, where they will work with seasoned developers to work on software development solutions. Upon successful completion of the programme, the then graduates will be guaranteed jobs within the Amber Group. The students began training on January 12 this year. National Director of HOPE, and Board Member of the HEART/NSTA Trust, Colonel Martin Rickman said, “this initiative will provide a whole new world of opportunities for these participants, and for the country.” “This new generation of coders would have left the programme having gained not only technical skills, but also soft skills such as stress management, problem solving, creativity, and an innovative mindset to transform the world and position Jamaica as the next technological hub of the region. I would like to thank the Amber Group and in particular, Mr. Dushyant Savadia for his vision of the concept and co-sponsoring this initiative,” Rickman added. The Amber Group has created game changing software applications for a number of companies and governments across the region since its inception five years ago. Some of these include the Amber Connect vehicle tracking and fleet management solution, which is the first in the world to adapt artificial intelligence in vehicle security, the Jamaica Public Service Company (JPSCo.) Application, and the JAMCOVID-19 application. The latter, the world’s first end-to-end pandemic management system, which has since been replicated to serve seven Caribbean islands after its success in Jamaica last year. “In five short years, we’ve formed one of the largest technology conglomerates in the Caribbean, operating right out of Jamaica. We build technology products which are mind blowing, even to the Western world. That is the potential of this country, that is the innovative ability of this country,” said Savadia.