Jamaica - Access to Finance for Micro, Small and Medium Enterprises Project

Overview & Synopsis

Ratings for the Access to Finance for Micro, Small and Medium Enterprises Project for Jamaica were as follows: outcomes were satisfactory, the Bank's performance was moderately satisfactory, and the monitoring and evaluation quality was substantial. Some lessons learned included: support for guarantees for MSMEs should include TA for systems strengthening, notably for risk management and E&S screening. Furthermore, choosing a partial portfolio credit guarantee scheme can offer advantages over individual guarantee schemes, such as increased scale, empowerment of AFIs to conduct their own due diligence of MSMEs, thereby shifting the guarantee fund manager’s role to review and compliance assurance of AFI performance. In this case, the capacity of both AFIs and the guarantee fund or facility can increase. Establishing an equity investment fund is inherently complex and time-intensive, with potential delays across all stages that can hinder timely capital deployment. Challenges arose throughout the process, including during fund establishment, manager selection, capital mobilization, and deal execution. In particular, delays in staffing and the institutional set-up of the SME Fund Manager led to further delays in investment sourcing and SME financing. Despite an extended implementation period of 6 years and 8 months, the SME Fund was unable to fully meet its revised targets.