The World Bank has approved a $192 million package to help Jamaica strengthen its economy and better prepare for natural disasters.
The funding will support projects aimed at boosting private sector growth, streamlining trade, and improving disaster response systems. It also includes a special option that allows Jamaica to access emergency funds quickly in case of a disaster.
Over the past decade, Jamaica has made significant strides in reducing its public debt-to-GDP ratio, reaching a record low of 73.3% by the end of the 2023-24 fiscal year—the lowest in 25 years. However, the country continues to face challenges such as slow economic growth, a high rate of informal employment, and vulnerability to natural hazards. The impact of Hurricane Beryl in July 2024 underscored the urgent need for enhanced disaster preparedness measures.
The new project is built on two main pillars. The first focuses on creating a more resilient private sector by improving trade facilitation, advancing digital technology adoption, and ensuring financial sector stability. Key reforms include streamlining customs procedures and enhancing digital trade capabilities, which are expected to open new opportunities for micro, small, and medium enterprises and boost exports. The project also aims to implement stronger data protection rules and improve service reliability in the telecommunications sector, alongside financial sector reforms to safeguard the economy.
The second pillar targets disaster risk management by establishing a National Natural Disaster Reserve Fund and other tools to facilitate swift government response to natural hazards such as hurricanes, floods, and droughts. Additionally, the project supports updated building codes to enhance safety standards in disaster-prone areas, including hospitals and emergency shelters. Incentives for households installing solar panels will also be introduced through amendments to the Income Tax Act.
“Bolstering growth prospects, building resilience against natural hazards, and protecting the most vulnerable—measures supported by this financing—are key priorities for Jamaica,” said Lilia Burunciuc, World Bank Country Director for the Caribbean. “They are also essential steps to allow the country to attract more foreign investment, boost private sector growth to create jobs, and improve the quality of life of its people.”
The project will be financed by the International Bank for Reconstruction and Development, a branch of the World Bank that assists middle-income and creditworthy poorer countries. Of the total $192 million, $150 million will be provided as budget support, while $42 million will be allocated to the Catastrophe Deferred Drawdown Option, which offers immediate liquidity in the aftermath of a disaster. Additionally, technical assistance for disaster risk management reforms will be funded through a grant from the European Union Resilient Caribbean (EUReCa) Program.
