Jamaica’s productive sectors poised for growth, says GK Capital VP
Vice-president of GK Capital Management Ryan Strachan is projecting that the country’s productive sector is poised for aggressive growth.
Strachan said that considering recent movements in the local financial market and given the trajectory of the Jamaican economy, he expects there will be a boom in the sector.
He was among financial experts who, in a panel discussion at the inaugural Manufacturers 360° conference hosted by the Jamaica Manufacturers and Exporters Association (JMEA) earlier this month, explored financing options for manufacturers and exporters planning for growth.
While highlighting innovative financing options available to sector-based businesses to boost their expansion, the GK Capital VP pointed to evidence of the forecasted growth as seen in the recent migration of at least two companies from the Junior Market to the Main Market of the Jamaica Stock Exchange (JSE).
He added that local and global trends show an increased demand for ready-to-eat products, from both diaspora members and mainstream consumers alike.
“We are all about the growth of the sector. GraceKennedy, on a whole, believes that whatever is good for Jamaica is good for us. As a fully owned subsidiary, GK Capital believes that as manufacturers grow, Jamaica grows, providing new opportunities, especially at a time like this,” Strachan stated.
Over the last five years, the manufacturing sector has consistently contributed an estimated $60 billion to $70 billion to gross domestic product (GDP). It is currently the largest contributor among all goods-producing industries, and so the experts posit that there is some untapped potential.
“As a manufacturer ourselves, through Grace Foods, we’ve seen the tremendous value that’s led us to being able to go into [other sectors such as] remittances and money services; the sheer value-add that the manufacturing and export sector brings to the economy, is expansive,” Strachan shared.
According to him, the recent increase in the participating share capital limit from $500 million to $750 million for companies on the Junior Market of the Jamaica Stock Exchange will further serve as a fillip in supporting companies seeking to scale their operations rapidly.
In fact, as the broker that has been responsible for over 50 per cent of initial public offer listings in 2022, Strachan further pointed out that GK Capital is well positioned to successfully manage the capital-raising initiatives of the sector.
In 2022, GK Capital, the investment arm of GraceKennedy Limited (GK), successfully brokered half of the IPOs listed, including the successful oversubscription of Spur Tree Spices, which closed two weeks early at $1.35 billion, well above the $335 million target. Since then, with GK Capital’s, team the food manufacturer has received innovative funding which has helped to triple Spur Tree Spices’ value. They are currently listed on the Junior Market of the Jamaica Stock Exchange.
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