Foundations for Competitiveness and Growth
The Foundations for Competitiveness and Growth Project (FCGP) is Jamaica’s flagship growth inducement initiative, which is funded by a US$50.00 million loan from the World Bank. The FCGP is being implemented by the Planning Institute of Jamaica in collaboration with Jamaica Promotions Corporation (JAMPRO) and the Development Bank of Jamaica (DBJ). The FCGP started in 2014 and is scheduled to be completed in 2020.
Objective of the FCGP
The objective of the FCGP is to strengthen Jamaica’s business environment to encourage/attract greater private sector investment. The objective is pursued through initiatives categorized into three components designed to: enhance competition in the business environment by implementing reforms to make it easier for businesses to be established and operate; facilitate strategic private investment reforms; and support SME (small and medium enterprises) capabilities and financing.
Component 1, which is being spearheaded by JAMPRO, covers a wide range of private sector business facilitation reforms, which are currently under way.
Component 2, spearheaded by the Development Bank of Jamaica, is geared towards supporting privatisation and public-private partnerships (PPP). This component finances studies and technical assistance to enable the government to prepare and close large strategic investment transactions with private sector participation. Strategic sectors include agribusiness, energy, information and communications technology, logistics, transportation, airports, ports, social sector PPPs (such as health and education), tourism, and water and sanitation.
Highlights of the project to date:
- Supported the establishment of Jamaica’s Special Economic Zone regime to facilitate large scale foreign and domestic investments
- Produced the Master Plan for Jamaica’s Logistics Hub Initiative (LHI) which has identified the potential for US$28.00 billion of investments to create over 87 000 jobs
- Facilitated SME sector investments through $1.9 billion in loans to over 120 SMEs at an average interest rate of 9.25 per cent per annum
- Upgraded productivity of over 240 SMEs (in supply chains) through $120 million in grants
- Completed the Business Plan for the Cultural and Creative Industries
- Produced Jamaica’s National Investment Policy Green Paper
- Four entities divested with support from the attorneys assigned to the Attorney General Chambers (AGC) work programme for total investments of over US$80.0 million. These include: Petroleum Company of Jamaica (PETCOM); Caymanas Track Limited; KIW International Limited; and Wallenford Coffee Company Limited
- Jamaica Survey of Establishments being conducted by the Statistical Institute of Jamaica (STATIN) to create a data base of businesses operating in the country. It is expected to contain approximately 50 000 firms and provide aggregate information to facilitate policy development, research and future sample surveys for sector and industry analyses.