Caribbean companies poor at record keeping

Money available, but some can't qualify for credit

The Caribbean Export Development Agency, administrator of the European Development Fund, has awarded €2.6 million to 197 firms, surpassing the target of 150, set under the 9th EDF.

But just about a third of the funds, €913,963.08, has been disbursed to date, a situation described as alarming as Caribbean Export met in Kingston this week to talk with Jamaicans and Caribbean interests about business support.

"The primary challenge we are having is that people just do not have adequate and proper documentation," said Kirk Brown, senior grant adviser at Caribbean Export, speaking at the 4th CARIFORUM regional meeting of business support organisations. The EDF is sponsored by the European Union.

"We have actually work to overcome the obstacle of persons not writing successful applications by training in proposal writing, and since February 2009 we have seen the success rate for grants increase," said Brown.

Caribbean Export has trained in excess of 660 persons in the region. The agency provides direct financial assistance to grow capacity, develop products and market access to legally registered private-sector firms and business-support organisations that operate within CARIFORUM.

Final disbursement of the 9th EDF funds is scheduled for June 2011. It will be replaced by the 10th EDF, under which funding of €5.3 million will be available to businesses - €3.8m for general direct assistance to private-sector firms in all sectors; and €1.5m to high-priority niche sectors such as agro-processing, light manufacturing, fashion, creative industries, professional services, specialised tourism and alternative energy.

Pre- and post-investment

Another €1-million fund, backed by the European Investment Bank, (EIB) was set up this month.

Yves Ferriera, head of the EIB representation office in the Caribbean region, SME Access to Finance Facility, or SAFFC, will finance pre- and post-investment support and capacity building.

"EIB is ready to look at a similar partnership targeting export-oriented SMEs with finance and technical assistance," Ferriera said.

"When dealing with SMEs, finance is sometimes not enough. technical assistance can improve quality of the deal flow and reduce mortality rates," he said.

Under the Lomé and Cotonou trade agreements, cumulative disbursement to the Caribbean by EIB stood at €1.338 million at the end of December 2010.

Caribbean Export said another funding initiative, developed jointly by the Inter-American Develop-ment Bank, the United Kingdom Department of International Development, or DFID, and Canadian International Develop-ment Agency, is to be launched shortly.

Called 'Compete Caribbean', the programme will establish a US$32.55-million grant facility to support private-sector development and competitiveness in the region.

Diego Morris, project officer at the IDB Barbados office from where the programme emanates, said Compete Caribbean will address, among other issues, productivity improvements and the positioning of firms to access markets inside and beyond their country borders.

sabrina.gordon@gleanerjm.com