Samuda offers big incentive to small businesses
Published:Wednesday | May 12, 2010 | 12:00 AM
Edmond Campbell, Senior Staff Reporter
THE MICRO enterprise sector is to receive an injection of funds this year totalling $750 million.
This amount will be made available to the sector through Jamaica National, Nation Growth and Access Financial Services. The funds can be sourced at interest rate of below 15 per cent, but in the case of loans for production, the interest rate is set at 10 per cent.
Minister of Industry, Investment and Commerce Karl Samuda made the announcement yesterday in Gordon House as he opened the Sectoral Debate.
The sum allocated to the sector represents the largest amount to be made available to the micro enterprise sector in any given year.
For persons starting up a new business, Government is moving to cut bureaucracy by introducing what it describes as a "super form", which will be administered by the Companies Office of Jamaica.
On this form, a number of agencies will be listed, including HEART/NTA, National Insurance Scheme and the National Housing Trust.
Samuda pointed out that this would make the registration of a business a one-stop facility.
And Samuda commented on an initiative by the Scientific Research Council to establish a lemon grass industry.
Showcasing the potential of essential oils from local plants such as lemon grass, Samuda revealed that more than 200 persons had expressed interest in farming lemon grass. He said others were interested in the extraction and production of value-added products from lemon grass.
The industry and investment minister said more than 180 enquiries had already been processed, with farmers pledging to cultivate nearly 1,000 acres of lemon grass for value-added products.
Government is also moving to fast-track plans to establish an international financial services centre in Jamaica.
According to Samuda, work on the centre started in 2004 but efforts were being made to set up the facility this fiscal year.
It is estimated that the offshore financial services centre could pull in an estimated US$30 million to US$300 million.
Turning to the proposed multibillion-dollar Caymanas Economic Zone, Samuda told his parliamentary colleagues that there were plans to further expand the project. He said during a visit to China earlier this year a major financial conglomerate in that country expressed strong interest in the project.
"The wheels of big investment turn very slowly," he said.