LEON ISAACS IAMTN and DEVELOPING MARKETS ASSOCIATES UK - Jamaica Investment Forum 29 th March 2012

DMA Consultancy Services Remittances and Payments – Private Sector: Market Entry, Diaspora Engagement and Seed Funding – Public Sector: Remittances Pricing, policy development Financial Access and Inclusion – Financial literacy programs – Product Development Regulation and Compliance – Experts in PSD, EMI – Advise governments in safeguarding public funds without stifling competition Our Consultancy Business International Association of Money Transfer Networks Trade body for remittance companies Extensive dialogue with regulators Information services Newsletters Conferences Seminars

Remittances Overview: Jamaica REMITTANCES OVERVIEW: JAMAICA Country Profile GDP 2010: USD 1, Million Remittances as % of GDP 2010: 14% FDI as % of GDP 2011: 2% Size of Diaspora: Estimated to be over 2 Million Jamaicans living overseas Location of Diaspora: UK (London and Birmingham), USA (New York and Washington) and Canada Total Savings Jamaican Diaspora: USD 5 Billion

Encouraging Diaspora Investment KEY SECTORS FOR DIASPORA INVESTMENT Real Estate SME Private Sector Development The Jamaican Stock Exchange Infrastructure Tourism Health Collective Investment at community level Remittances are the largest flow of private funds to Jamaica. Currently main use is for individual consumption There are a number of tools available for harnessing capital from the Diaspora for more sustainable, productive uses in Jamaica. Tools for Investment 1.Diaspora Bonds 2.Mutual Funds 3.Collective Investment Schemes 4.Returning Migrants Diaspora Investment can complement FDI in seeing growth in Key Sectors JAMPRO have developed coherent Business Diaspora Strategy to encourage Diaspora Investment

Diaspora Bonds Pre-requisites for issuing a Diaspora Bond: Know Your Diaspora (KYD) Government of Jamaica is planning to issue a Diaspora Bond in August to raise $1 billion

Mutual Funds The Rwandan Diaspora Mutual Fund (RDMF): THE BNR have found a way to use remittances to promote national development. Set up in March The fund is managed in partnership with the Diaspora, the BNR provides administrative and management support. To date no figures have been published on how much investment has been raised Good relationship between the Government of Jamaica and its Diaspora overseas. Real opportunities to develop a similar fund for SME development in Jamaica.

Collective Investment Matching Service – factsheet for the Diaspora on investment opportunities Invest directly through the website and monitor progress Raised $1 Million for the Kenyan Diaspora Bond, END OF Project undertaken by migrant associations in the USA, Mexican Federal, State and Municipal Government and Western Union. RESULTS Spurred employment and generated commerce in the localities where the investment took place. Collective Investment from the Diaspora into Key Sector that complements FDI can encourage Growth. PRIVATE SECTOR LEDGOVERNMENT LED

SUMMARY Diaspora investment and FDI are not mutually exclusive. The Diaspora is a great source of potential investment Understanding the Diaspora is critical There are plenty of potential investment schemes that can be developed – use global best practice