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MSMEs spurn DBJ’s $1 billion offer

Only four loans approved a year later

Published:Friday | July 21, 2023 | 12:06 AMChristopher Serju/Senior Gleaner Writer
Pearnel Charles Jr (right), then-minister of agriculture and fisheries, thanks Anthony Shaw (left), managing director of the Development Bank of Jamaica (DBJ), for making over J$1 billion available to the agriculture sector where the intention was to focus
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Pearnel Charles Jr (right), then-minister of agriculture and fisheries, thanks Anthony Shaw (left), managing director of the Development Bank of Jamaica (DBJ), for making over J$1 billion available to the agriculture sector where the intention was to focus on the digital transformation in agriculture while improving the issue surrounding females in agriculture. They were speaking at the DBJ Agribiz Programme-Grow with DBJ Launch, which was held on the front lawn of the Ministry of Agriculture and Fisheries at Hope Gardens on July 19 last year.

A year after the launch of the Development Bank of Jamaica’s (DBJ) Agribiz loan facility, for which $1 billion was allocated to on-lend to farmers through a network of approved large and microfinance institutions, borrowers continue to spurn what was marketed as an attractive inducement for farmers and agri-business entrepreneurs.

Loans of up to $30 million at 8.75 per cent interest rate for up to 10 years are on offer. However, since the Agribiz offer was launched in July last year, only four loans have been approved to date, valuing a total of $68.1 million.

The largest loan, for the maximum $30 million, was for the purchase of a poultry farm, with some of the money going towards farm infrastructure (buildings), vehicles, crops and equipment, according to information provided by Corporate Communication and Public Relations officer Claudette White.

Another loan for $14.6 million was approved for the purchase and installation of a solar energy system and working capital. Some of the money was spent on livestock (poultry), crops and equipment.

The next highest loan was $13.5 million for the purchase of two commercial vehicles to be used in a business, with some of the money going towards cultivation of escallion and one for $10 million for the purchase and installation of an irrigation system. Some of this money also went towards the purchase of equipment and the cultivation of melon crops.

All these loans were disbursed between September 2020 and April 2023. However, White disclosed that outside of the Agribiz take-up, there were 751 other agriculture loans valued at $109 million financed by DBJ funds between July 2022 and March 2023.

Addressing last year’s launch on the lawns of the Ministry of Agriculture, Fisheries and Mining, Agribiz was touted as a special facility to help micro, small and medium-sized enterprises (MSMEs) to boost their businesses. He said the initiative was intended to provide a helping hand to farmers who have been impacted by the fallout from the COVID-19 pandemic, as well as the war in Ukraine.

christopher.serju@gleanerjm.com