Despite a reduced net profit, from $571 million in 2016/17 to the $347.2 million estimated for 2017/18, the Development Bank of Jamaica (DBJ) has assured that it will continue to align its activities with the Government’s economic growth targets.

The bank — which provides financing, privatisation and technical support for businesses and government to facilitate and promote economic growth and development — is projecting a further dip to $344.6 million in surplus for 2018/19.

However, according to the Jamaica Public Bodies (JPB) book tabled in Parliament on Thursday, February 15, the DBJ has assured that it will continue emphasising investments that support local entrepreneurs in the productive sector.

According to the JPB, the DBJ’s gross income fell from $1.9 billion in 2016/17 to an estimated $1.8 billion in 2017/18. The projection for 2018/19 is $2 billion. But expenses grew from $1.3 billion in 2016/17 to an estimated $1.52 billion in 2017, and the projection for 2018/19 is $1.6 billion.

However, the DBJ says that it will continue to focus on developing the micro, small and medium enterprises (MSMEs) ecosystem, strategic sector investments, divestments of government assets, as well as facilitating public private partnerships (PPPs).

Specifically, during 2018/19, DBJ says it will seek to:

(1) Improve the MSME ecosystem to provide support in the form of financial or non-financial products, and policy advocacy on behalf of entrepreneurs;

(2) Create relationships with new international partners and the private sector in order to access funding and technical assistance for the development of MSMEs;

(3) Launch a MSME Fund with private sector investors and management;

(4) And, increase its efforts to divest the Government of non-core assets and improve the utilisation of current assets to reduce the Government’s expenditure through public/private partnerships, while benefitting from private investment.

Activities will be pursued toward the sale of the government’s shares in the Central Waste Water Treatment Company and Wigton Wind Farm. Focus will also be placed on the Norman Manley International Airport’s (NMIA) PPP and the school solar PV power system’s PPP transactions.

The DBJ’s efforts should result in loan disbursements this year valued at US$25.53 million, compared to US$23 million in 2017/18, and $4.7 billion compared to $4 billion in 2017/18. Approximately $26.4 million in investments and 4,500 jobs should be facilitated.

The DBJ says that, in the circumstances, it forecasts a net surplus on operations of $344.6 million, compared to $335 million in 2017/18, despite an increase in staff costs from $463.4 million in 2016 to the $603 million projected for 2018/19.