-Prashad hails launch
The launch of the Matching Grant Initiative (MGI) last Friday will see improvements in small and medium-scale enterprises by enhancing their export capacity, Commerce Minister Manniram Prashad says.
The minister said that the primary objective of the programme is to provide matching grants to small and medium-sized firms, which would “prepare firms for export readiness, assist firms to launch (an) export drive, and/or facilitate the expansion of export by those firms which are already exporting”. This will be done over a 3 ½ year period. He stated that the project will focus on supporting firms in agro-processing, aquaculture, bio-ethanol, business process outsourcing, eco-tourism and business tourism, non-traditional agriculture products, organic food products and sustainable forest products among other things”.
The Minister explained that the MGI is an integral part of the National Competitiveness Strategy which emphasizes the Government’s commitment to placing greater emphasis on the private sector. The programme is funded in part by the Inter-American Development Bank. Prashad explained that while the Matching Grants Fund consists of loan funds, these funds are in turn being used to help Small Business Enterprises in the form of grants.
Prashad pointed out that over a 3 ½ year period, the initiative will provide eligible firms with “small grants for export readiness assessments, project preparation and project implementation.” He added that “over the next three years, Matching Grants … will provide a portion of the cost of projects identified by enterprises (with advice from local experts) to re-configure, develop and implement systems and strategies that will improve firms’ performance in overseas markets. Purchases of equipment will be funded by the initiative.”
The MGI is governed by a public-private council which was appointed in late April 2009. The Council is headed by Yog Mahadeo, who is assisted by Uchenna Gibson. The other members of the council are Nizam Hassan, Lindel Harlequin, Elton Patram, Roxanne Reece and Avalon Jagnandan.
Meanwhile, Prashad said that his ministry is also doing its part to support the development of small business enterprises under the National Competitive Scheme. He said that within a month’s time the Small Business Council will be operational. He said that his ministry will be appointing all of the Council’s staff and will meet its operational cost.
This Council, he explained, is chaired by Keith Evelyn of the Hand-in-Hand Group of Companies. According to Prashad, “the SBC will be a powerful forum for all issues affecting SMEs.” He further stated that he will shortly approve “a consultancy to develop an action plan, both in relation to SMEs and actors in the informal economy.” Prashad explained that this will seek to identify and rank sub sectors which may be eligible to benefit from a revolving fund, define the size of the fund and schedule for financing the priority activities, determine the modality of operations, and replenishment of the fund as well as propose sources of finance for the establishment and expansion of the fund.
According to a release from GINA, the NCS falls under the Support for Competitiveness Programme (SCP) which received $501.5 million in this year’s National Budget. There is also an NCS Council which is chaired by President Bharrat Jagdeo and which includes members of government, the CEO of Go-Invest Geoffrey Da Silva and representatives from private sector bodies, including the Private Sector Commission and labour unions, a release from GINA said.
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