Government Procurement an Investment Tool – Minister Williams

Minister of Finance and the Public Service, Hon. Fayval Williams, says that Government procurement is a powerful investment tool aimed at stimulating growth and national development.

“Government procurement is not simply about buying goods and services. It is one of the most powerful economic development tools available to any nation,” she said.

“Every procurement decision is also an investment decision. It determines who grows, who hires, who innovates, who exports, and, ultimately, who prospers,” she added.

Minister Williams was addressing the launch of the MSME Procurement Integration Project at the Iberostar Hotel in St. James on Friday (July 3).

It is an initiative of the Public Procurement Commission (PPC) in partnership with the Finance and the Public Service Ministry through the Office of Public Procurement Policy; the Ministry of Industry, Investment and Commerce; the Development Bank of Jamaica, and other stakeholders.

To be undertaken over 12 months, the project is aimed at building the capacity of micro, small, and medium sized enterprises (MSMEs), equipping them with the skills and knowledge needed to engage effectively in public procurement.

A key component of the project is the Procurement Readiness Boot Camps, which are intense, targeted training sessions designed to guide the MSMEs through the supplier registration process, equip them to identify and respond to government procurement opportunities, and help them navigate the requirements of the Public Procurement Set Asides Order so they can compete successfully for contracts.

The Public Procurement (Set Asides) Order, 2019 reserves 20 per cent of contracts for MSMEs.

The project will ensure that government procurement drives both value for money and inclusive growth.

Minister Williams said that the initiative is a “significant breakthrough” in Jamaica’s development agenda and is a major step in operationalising the Set-Asides framework.

She noted that Jamaica has approximately 425,000 MSMEs, which employ 60 to 70 per cent of the workforce and contribute around 44 per cent of gross domestic product (GDP), yet too many businesses are still on the sidelines when government contracts are awarded.

“They are not a small part of our economy; they are its foundation. Yet many of these businesses remain spectators when government contracts are awarded. That is an economic contradiction,” she pointed out.

She explained that when an MSME wins a Government contract, the benefits spread far beyond the single project.

One contract begins a chain reaction throughout the economy that multiplies and contributes to nation-building, she said.

“The contract itself is only the beginning. The business purchases more material, it hires additional workers, it invests in better machinery, it improves quality standards, it pays more taxes and its employees spend more in local economies. Other businesses benefit, banks become more willing to lend, and young entrepreneurs become more willing to take risks,” Mrs. Williams pointed out.

She noted that countries such as the United States, Canada, South Korea and Singapore deliberately use procurement policies to support small and local businesses, indigenous communities and innovation.

Executive Director of Public Procurement Commission (PPC), Nadia Morris, explained that the booth camps will emphasise both administrative readiness and competitive capabilities to maximise MSMEs’ chances of winning public contracts.

Overall, the boot camps aim to upskill MSMEs, reduce administrative barriers to supplier registration, and strengthen the inclusion of verified MSME suppliers in public procurement, ultimately helping them to expand their businesses and access a share of the public procurement market, she pointed out.

She informed that the rollout will begin with a north-western booth camp targeting MSMEs in St. James, Trelawny, and Hanover and will expand into other regions of Jamaica every other month over the 12 month project period.

Miss Morris said that north-western Jamaica was chosen for the launch to support businesses rebuilding after Hurricane Melissa.

For her part, Permanent Secretary in the Ministry of Industry, Investment and Commerce, Sancia Bennett-Templer, said that over the last three years, more than 600 Jamaican MSMEs were awarded Government contracts across 100 industries for a combined $3.2 billion in business.

“We want to build on this impressive start to substantially increase the number of MSMEs participating in Government procurement,” she said.

Mrs. Bennett-Templer said that the Ministry and its more than 20 agencies, such as the Jamaica Business Development Corporation (JBDC), Companies Office of Jamaica (COJ), Jamaica Promotions Corporation (JAMPRO) and the Trade Board Limited are offering more than 75 support services, targeted training in public procurement, and islandwide roadshows and boot camps, all aimed at helping MSMEs become more efficient and position themselves to benefit from the procurement framework.