The Jamaica Stock Exchange (JSE) and the Jamaica Manufacturers Exporters Association (JMEA) signed a Memorandum of Understanding (MOU) to work closer to assist companies in the JMEA to list on the Junior Market. Through this MOU the JMEA will identify their member companies that they believe can list on the Junior Market for the Stock Exchange so that both entities can engage and assist them through the process of accessing the market.
According to Dr. Marlene Street Forrest, Managing Director of the JSE, “With this MOU, we are expecting that in short order we should have over 100 companies listed on the Junior Market. This will be exciting times for the markets. Please bear in mind that all companies that have come to market have been oversubscribed. This means that there is liquidity in the market and therefore, now is the best time for any company that wants to list to come. There is no better person to give testament to the Junior Market than the current President of JMEA and that is why we are excited about this MOU.”
“Since assuming the Presidency of the JMEA, I have been looking for ways to grow exports and I have no doubt in my mind that the way to go is through expanding the businesses in the Association,” stated JMEA’s President, Mr. John Mahfood. “The best way to do this is for them to access equity capital and the best way to do this is through the Junior Market. I believe we can move export from 8% of GDP to 10% or more. Out of the 400 [plus] members of the JMEA, I have sat down and looked at the best 50-80 companies that can access the Junior Market right away. As a matter of fact, two out of the three companies that have listed this year are from the JMEA. Therefore, in the next five years the Junior Market will have over 100 listings.”
“This is one of the best news that we are hearing as business owners,” said Miss Kareema Muncey, Owner of Home Choice Enterprises Limited. She told the audience, “There are so many of us that need access to capital to allow our businesses to expand. Right now, Home Choice needs to list on the Junior Market. We have employed the necessary assistance to get us to market. We realize that we do not have the upfront capital to put everything in place and we have used creative means and have worked out creative agreements to allow us to put systems in place. We believe that within the next year or so, we should be listed on the market.”
“This MOU is fully endorsed by the Ministry of Industry, Investment and Commerce,” said Senator the Honourable, Minister of Industry, Investments and Commerce and the Guest Speaker at the MOU signing ceremony. “I am pleased to be part of this event, as the JSE and the JMEA come together to formalise an arrangement that will benefit the SME sector, and the Jamaican economy overall. “This partnership with the JSE and the JMEA is very timely. Though we are almost 10,000 km away, we are feeling the effects of the war in Ukraine, in the rising prices for commodities such as fuel, fertilizer and food. There is worldwide disruption as the global supply chain and logistics distribution arrangements experience great strain. Businesses must now look locally and regionally to provide products that would normally be imported from farther afield.”
Senator Aubyn Hill highlighted, “It is important to underscore that not one of the businesses listed on the stock market folded during the Covid-19 pandemic. This is due to several key factors:
- Good corporate governance
- The company’s ability to pivot during this period
- Availability of additional equity funding or loans at much cheaper rates than what other companies which are not listed on the stock market would pay.
“We look forward to working with the Jamaica Stock Exchange and the JMEA to grow Jamaica and diversify the economy. These are unprecedented times, but the Government of Jamaica has laid a strong foundation with policies, opportunities and agreements that enable our entrepreneurs to access key markets.”
Senator Hill also congratulated Dr. Street Forrest, stating, “I sincerely commend Dr. Street Forrest for the leadership, drive and commitment to nation building that she has displayed in guiding the quick meteoric rise of the Jamaica Stock Exchange, especially in the past few years.”
