Hon. Karl Samuda addressing a Micro Finance Institutions Meeting hosted by the Jamaica Association for Micro Finance chaired by Dr. Blossom O'Meally-Nelson on May 18, 2016.
The draft Microcredit Bill, which aims to create an authority to regulate micro financing firms, is in an advanced state.
This was disclosed by Minister of Industry, Commerce, Agriculture and Fisheries, Hon. Karl Samuda, at a Microfinance Institutions meeting, held at the Ministry’s New Kingston offices on May 18.
He noted that the legislation will assist in the registration and regulation of micro- credit lending companies that provide financing to the Micro, Small and Medium-sized Enterprise (MSME) sector.
The Bill will allow the entities to be licensed, while also providing measures for the protection of consumers.
Mr. Samuda said the Ministry is also finalising with the Ministry of Finance and the Public Service, the Offset regulations that will be provided under the Public Procurement Act which was passed in 2015.
“(This) will enable greater participation of the MSME sector in Government contracts,” he explained.
Meanwhile, Mr. Samuda said the Government is placing greater focus on the development of the MSME sector, and has set a target of a minimum four per cent growth for the sector this year.
The Minister noted that it is estimated that the sector worldwide will grow in the region of 10 to 15 per cent.
However, the Minister argued that if the sector is to grow, there will be a need for improved access to capital.
“That has been singled out by the International Monetary Fund as one of the single largest obstacles affecting the MSME sector. We are hoping that through our collaboration, we will be in a position to enable the sector to get the amount of working capital that is appropriate,” Mr. Samuda said.
The meeting was another in a series by the Jamaica Association for Micro-Financing (JAMFIN), as it continues to pursue its mission to work for the growth of the micro-enterprise sector.
This will be done through the provision of accessible appropriate and timely financing, training and business development services to individuals and enterprises.
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