MINISTER of state in the Ministry of Industry, Investment and Commerce, Dr Norman Dunn, says the Government has been evaluating the need for collaboration with microfinanciers to improve their technological accessibility.
Dr Dunn said that this was in response to the cries of the microfinancing institutions (MFIs) for Government intervention to help bring about “a change in the sentiments” surrounding the technologically drive options now available to them.
“… I am therefore pleased to inform this gathering today that the Government has been evaluating the scope for collaborations in this regard, especially given the overall goal of financial inclusion, which is premised on making our financial landscape more inclusive,” Dr Dunn told Thursday’s inauguration of microfinancier Andrew Mais as the new chairman of the Jamaica Micro Financing Association Limited (JaMFA) at the ministry in New Kingston.
Dr Dunn urged the MFIs to incorporate innovative solutions in their services and products that will drive accessibility and ease of doing business for their clients, as a partnership between the Government and private sector to foster inclusive growth and development.
“This partnership is pivotal since microcredit allows borrowers who typically lack collateral, stable employment and verifiable credit history, to access small loans to drive their entrepreneurial pursuits, alleviate poverty and serve as a special purpose financing vehicle for those at the bottom of the economic pyramid,” he said.
“Microfinancing is, therefore, a key strategy in the toolbox of strategies to attain financial inclusion, as it places persons plagued by poverty on the path to becoming financially independent,” the junior minister added.
Dr Dunn said the sector must, therefore, invest in technology to bring its own innovative financing solutions to market, such as mobile apps that will enable further growth in customer relations and foster strategic partnerships.
Several studies, he said, indicated that access to finance is a major contributing factor to the success of start-ups, their growth and expansion.
“Increased access to financing is crucial for micro, small and medium-sized entities (MSMEs), especially toward supporting their technological enhancement and innovation that will see their integration into the productive value chains,” he stated.
“A vibrant, responsive, safe and accessible microfinancing sector is, therefore, key to putting the wherewithal into the hands of our people, to enable them to lift themselves up from their social and economic circumstances,” added Dr Dunn.
Mais thanked the members for expressing their confidence in him by elevating him to the full talks of chairing JaMFA, which represents a large number of MFIs in Jamaica.
He said that the association recognised that the sector faces immense challenges ahead, based on the impact of COVID-19.
The pandemic, he said, has been been significantly impacting many of the association’s members, especially smaller ones. “Many have had to be making significant adjustments to their day to day affairs, just to stay afloat and, in fact, many are operating as significant losses and if those losses are to be sustained over an extended period of time, then certainly we are looking at a sector that is going to be badly damaged next year,” Mais said.
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