The Access to Finance Project (A2F) is a partnership of Government of Jamaica and the World Bank. The (A2F) Project is a US$15 million Project that will be executed during a period of five years from January 2018 to January 2023, with the objective of improving access to finance for micro, small and medium enterprises (MSMEs). The implementing agency for this project is the Development Bank of Jamaica (DBJ). The Project consists of four components:
- Component 1: Enhancing the Credit Enhancement Facility (CEF) for guarantees to MSME loans
- Component 2: Supporting an SME Fund for risk capital financing to SMEs
- Component 3: Improving the enabling environment for access to finance and business development services for MSMEs
- Component 4: Project management
Component 1: Enhancing the Credit Enhancement Facility (CEF) for guarantees to MSME loans
This component aims at improving the operational features of the CEF. It will finance: (i) capitalization of the CEF; (ii) development of a business plan, financial model, policies and procedures for the operations of the CEF, and training; (iii) strengthening DBJ’s capacity to assess and manage risk of AFIs; and (iv) marketing and awareness raising to Approved Financial Institutions (AFIs) and SMEs.
Component 2: Supporting an SME Fund for risk capital financing to SMEs
This component will contribute capital to a proposed SME Fund, which would provide risk capital to SMEs with high growth potential and with operations in Jamaica. The Project would support: (i) capitalization the SME Fund; (ii) management fees and potential start-up costs of the fund; (iii) feasibility assessments for the fund; (iv) legal, regulatory and taxation reviews to assess gaps in Jamaica’s legal, regulatory, and taxation framework for PEVC funds and proposed reforms to ensure an enabling environment for onshore and offshore funds; and (v) technical assistance for the creation and operation of the program, including assistance to the SME Fund manager and DBJ, and pre- and post- technical assistance to SMEs to alleviate targeted constraints.
Component 3: Improving the enabling environment for access to finance and business development services for MSMEs
This component would support improving the enabling environment for access to finance for MSMEs, including the development of financial instruments such as leasing and factoring, and business development services for MSMEs to improve their bankability.
Subcomponent 3A. Enabling environment for access to finance for MSMEs, including financial instruments
- On factoring, the Project would finance: (i) a market feasibility study for factoring, (ii) advisory inputs for potential drafting of legal and regulatory amendments, or factoring law; (iii) feasibility assessment of the factoring platform; (iv) design, development and implementation of an on-line factoring platform; (v) awareness raising and capacity building of AFIs, SMEs, and other stakeholders on factoring and its benefits.
- On leasing, the Project would finance: (i) market assessment on the leasing sector (ongoing as retroactive financing); (ii) advisory inputs for potential drafting of legal and regulatory amendments, or leasing law; and (iii) awareness raising and capacity building of key stakeholders on leasing and its benefits.Subcomponent 3B. Business development services for MSMEs to improve bankabilityThis subcomponent aims at improving the capacity of DBJ to expand and enhance the quality of its MSME support program. This subcomponent would provide support for: (i) an assessment of the existing Voucher Program’s performance; (ii) technical assistance to improve the voucher program design; (iii) technical assistance to develop a broader strategy to promote business development services (BDS) for MSMEs; (iv) design, development, testing and implementation of an interactive virtual platform for BDS providers and MSMEs; (v) update the existing database of BDS providers; (vi) an awareness campaign to promote the new and improved programs for MSMEs; and (vii) resources to implement the new BDS for MSMEs strategy.
Component 4: Project Management
This component will support a Project Implementation Unit (PIU) responsible or the coordination, management, implementation, and supervision of the project. The Project will finance: (i) the recruitment and training of the PIU team members; (ii) equipment and furniture for the PIU; (iii) monitoring and evaluation activities; and (iv) the project’s financial audits.
The Environmental and Social Management Framework – Access to Finance Project
The Environmental and Social Management Framework (ESMF) is an instrument that helps the Government of Jamaica, through the Ministry of Finance, as the borrower, and the Development Bank of Jamaica, as the implementation agency, to identify appropriate methods and tools to assess and manage the potential environmental and social risks and impacts of the project. This ESMF consists of the following sections:
- Environmental and Social Conditions and Potential Risks and Impacts
- Jamaica and World Bank Environmental and Social Requirements
- Project Environmental and Social Management
The draft ESMF was disclosed by the Development Bank of Jamaica (DBJ) for consultations from March 7 to March 31, 2017. The document was made available online on the website of the DBJ. In addition, consultation meetings were held March 14 to March 16, 2017 in a series of four consultation workshops designed to reach different stakeholders. Following the consultations, this final version of the ESMF, reflecting comments received and additional input throughout project preparation, has been prepared and will be publicly disclosed on both the DBJ and World Bank websites. Annex 4 contains details of the consultation process and the comments received.
The DBJ, as implementing agency, will be responsible to carry out the Project with due diligence and efficiency in compliance with all requirements pertaining to environmental and social protection applicable under the laws and regulations, and the ESMF.
Please see the document below for further information.Jamaica-A2F-ESMF-October-25102017.pdf