Explore sustainable business practices in agriculture, manufacturing, and tourism. This workshop focuses on eco-friendly initiatives, renewable energy adoption, and sustainable methodologies. Participants will learn how to integrate green practices into their operations, aligning their businesses with environmentally conscious trends

COVID-19 has been a global pandemic for several months now, with no end in sight, and the virus is wreaking havoc on economic and health systems. Small, open economies such as those in English-speaking Caribbean have been the hardest hit, disproportionately relative to the small number of confirmed cases – just over 1000 cases and less than 50 deaths as of May 25. How can the microfinance sector in the Caribbean navigate this crisis and seize the opportunity to promote the further development of the industry?

COVID19 comes in the wake of a series of hurricanes decimating the economies of several countries in the region, most recently in the Bahamas. The Inter-American Development Bank predicts an extremely bleak period ahead for the Caribbean, and certain reversal of the progress made by countries such as Jamaica in terms of external debt reduction and GDP growth.

As is the case elsewhere, Caribbean countries are working on two fronts to confront the crisis in real time, with no playbook. First, working to contain the virus, with stay-at-home orders, curfews and closing national borders, while at the same time working to save the economy. The decision of Caribbean governments to suddenly close national borders at the end of March has had a devastating impact on micro and small businesses, particularly those either directly or indirectly linked to the tourism industry, which accounts for 30 per cent to 40 per cent of GDP in some countries. Other businesses have been negatively affected by falling oil prices (Trinidad, Guyana) and abruptly interrupted supply chains. Both the scope and speed of the economic decline is unprecedented. In response, countries have unveiled various economic stimulus packages – including tax payment deferrals, low interest loans and grants – to keep businesses afloat, and help maintain employment – coupled in some cases with specific assistance to vulnerable populations.

The Jamaica Association of Micro Financing (JAMFIN) said it sees the de-risking policy being pursued by at least one commercial bank as a threat to bona fide micro finance companies that have been in business for years and have substantial lending portfolios.

Under the de-risking policy, commercial banks across the Caribbean have been closing the accounts of cambios, remittance companies and now micro finance companies, JAMFIN’s chair Blossom O’Meally-Nelson said in a release. It said commercial banks maintain that those are high-risk operations that open them up to substantial fines from regulators should there be any breach of anti-money laundering laws or laws against the financing of terrorism.

Correspondent banks mostly located in the United States act as clearing houses for funds that are in transit and they put pressure on commercial banks to get rid of accounts that they deem risky. “It is difficult to ignore the existence of a sub-theme here in that if these types of money services are crippled it means more business for the very commercial banks that are crying wolf,” O’Meally-Nelson said. The release said there are large numbers of ‘unbankable’ persons who use money services and to deprive them of the facility would serve to drive the informal economy.