JAMPRO

Annual
Report
FY 2019-2020
JAMPRO Annual Report FY 2019-2020

The purpose of this report is to

provide the Houses of Parliament,
partners, stakeholders and clients with
information on the performance of
the Jamaica Promotions Corporation
(JAMPRO) for the 2019/2020 financial
year and the prospects for the
2020/2021 financial year.

OUR VISION
To be a world class business enabler and
promotions agency, making Jamaica the
premier destination to do business.

OUR MISSION
Drive Jamaica’s economic development
through growth in investment and export.

OUR CORE VALUES

Integrity • Respect • Innovation • Excellence

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JAMPRO Annual Report FY 2019-2020

ii
 About Us
The Corporation and
Who We Are
We are the premier trade and investment promo- The impact of JAMPRO’s work on
tions corporation representing the Government of economic development is measured
Jamaica. Established as a statutory body under the by the:
JAMPRO Act, 1990, we promote business oppor- • value of capital expenditure (of
tunities in export and investment to the local and clients facilitated by JAMPRO)
international private sector. In addition to facilitating • number of jobs created (by cli-
the implementation of investment and export proj- ents facilitated by JAMPRO)
ects, the organization is a key policy advocate and • value of export sales (by clients
advisor to the Government in matters pertaining to facilitated by JAMPRO)
the improvements of Jamaica’s business environ- • client satisfaction score; and
ment. Jamaica Promotions Corporation is currently • Brand Perception Score. 1
operating under the Ministry of Industry, Commerce,
Agriculture and Fisheries (MICAF).

1
This is a measure of the perception of Jamaica’s business brand locally and globally which, is scored in alternating years.

iii
Our Corporate Imperatives

Actively promote and enable Foster an enabling business environment

exports and investments • Drive policy change and development
• Grow exports • Deliver effective services that add value
• Grow investments to our customers
• Maximize linkage opportunities • Accelerate business facilitation
• Conduct proactive research to
guide decisions/strategies

Build an engaged, high performing,

collaborative team
Build and maintain effective business
• Create a caring and empowered
relationships
environment that fosters a satis-
• Increase awareness of Jamaica as
fied team
a business destination
• Strengthen the technical compe-
• Increase engagement with key and
tencies to improve productivity
strategic stakeholders
• Nurture a culture that embeds
• Increase awareness of JAMPRO
the core values

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JAMPRO Annual Report FY 2019-2020

Table of
Contents
Chairman’s Message 1
Board of Directors 4
Executive Management Team 5
President’s Message 6
Corporate Performance and Achievement of Targets 8
Value of CAPEX (Local & Foreign Direct Investments) by Clients 10
Number of Jobs Created by Clients 13
Value of Export Sales by Clients 15
Financial Performance 16
Sector Highlights 17
Improving Jamaica’s Competitiveness: Sector Development Initiatives 32
Business Environment Initiatives 36
Major Events and Signature Programmes 41
Marketing Initiatives 49
Market Activations 52
Organizational Development 53
Board of Directors’ Report 55
Board of Directors’ Compensation Table 60
Executive Management Team Compensation Table 62
Strategic Focus FY 2020-2021 63
Audited Financial Statements 64

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 JAMPRO Annual Report FY 2019-2020
Chairman’s
Message
Senator Don G. Wehby, C.D.

JAMPRO’s mission to drive economic development and the Corporation into an economic recovery
through growth in investment and export gained response mode.
heightened meaning and importance during the
final quarter of the financial year. The official record- The Corporation’s response involved the provision
ing of the coronavirus in early March 2020 and the of guidance on the state of international trade and
imminent economic fallout, propelled the country development of a short-term strategy to minimize

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JAMPRO Annual Report FY 2019-2020

the negative economic repercussions, focused on least one new market and collective export sales
exploring the resilience of our core sectors and growth of 213% among the 19 participants.
identifying mitigation measures to be considered in
the future. Agriculture was identified as the priority In addition, over the three-year period the organisa-
sector to ensure food security and the sustainability tion’s efforts facilitated the creation of over 51,885
of the agribusiness industry. gross new jobs, US$1.9 billion in capital expenditure
and US$2.09 billion in export sales. Additionally,
Financial year 2019-2020 was the final year of the Corporation achieved a staggering 94% level
JAMPRO’s Three-Year Strategic Business Plan of satisfaction from its clients with the services
(2017-2020), which was developed and imple- received during the 2018/2019 fiscal year; the most
mented under my first tenure as Chairman. The outstanding satisfaction score for the organisation
various initiatives implemented over the three-year in its history.
period have been impactful, as the Corporation
strengthened its capacity to drive investments and With the end of one strategic plan, the organisa-
exports, and facilitated a number of investment proj- tion embarked on an exercise to develop a new
ects, while also assisted our exporters in accessing plan to guide the organisation over the next four
new markets. One key capacity-building initiative years. The process saw the development of a strat-
was the completion of the restructuring exercise to egy anchored in targeted marketing, improving
position the organisation for growth, including the Jamaica’s competitiveness and forging strategic
merger of the export and investment divisions into partnerships to increase investments and exports.
a sector-focused Sales and Promotion Division; the
creation of a new Marketing Division with respon- Improving the business environment remained
sibility for driving and developing key marketing at the top of the strategic agenda with advance-
channels, with a focus on digital marketing; and ments made to various reform initiatives to propel
the re-opening of the New York Regional Office. One the country towards top 10 in the World Bank’s
investment promotion highlight was the successful Doing Business Report. The Secretariat, housed
hosting of the 2018 Jamaica Investment Forum, at JAMPRO, was successful in lobbying for the
showcasing the best of business brand Jamaica extension and funding of the Foundation for
under the theme ‘Connect for Business’; while on Competitiveness & growth Project; specifically,
the export side, the organization successfully com- towards Component 1 focused on the Business
pleted the Export Max II programme, which saw Environment.
84% of the participating companies accessing at

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 JAMPRO Annual Report FY 2019-2020
Phase I of the National Business Portal (NBP) is
now live at www.dobusiness.gov.jm while work
is ongoing for the completion of Phases II and III.
JAMPRO worked closely with other government
agencies towards the finalization of the Draft Green
Paper for the National Investment Policy (NIP) and
will continues to play a leading role as the Paper is
tabled in Parliament and the various recommen-
dations explored, while national consultations are
pursued. Both the NIP and NBP are expected to
significantly improve the facilitation of local and
foreign investments.

Despite a forecasted challenging upcoming fiscal

year, JAMPRO remains resolute in charting the way
forward in executing its mandate. On behalf of the
Board of Directors, thanks for the support from our “Improving
clients and stakeholders. We look forward to the
continued partnerships in FY 2020/2021 to secure
the business
meaningful business opportunities for Jamaica. environment
remained at
the top of
the strategic
agenda...”

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 Board of
JAMPRO Annual Report FY 2019-2020

Directors

Senator Don G. Wehby, C.D., Metry Seaga Ian K. Levy, O.D., C.D. Gary Sadler, O.D.
Chairman Deputy Chairman

Lisa Soares Lewis Gillian Wilkinson McDaniel Delano Seiveright Christopher Williams

Dr. André Gordon Zachary Harding Yoni Epstein Christian Tavares-Finson

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Executive

JAMPRO Annual Report FY 2019-2020

Management Team
JAMPRO’s day-to-day operations are governed by an Executive the business environment; and the
Management Team, led by a President. The Corporation’s man- • Finance and Corporate Services
date is executed through five (5) Divisions with responsibilities Division, comprises the Human
as follows: Resources, Finance, Administration
and Management Information
• President’s Division, includes the President’s Office, Systems Departments.
Corporate Planning, Corporate Initiatives and the Legal
and Audit functions; Each Division is led by a member of the
• Sales and Promotions Division, focused on promoting Executive Team which welcomed a new
investment and export across sectors of focus; member, Norman Naar, on November
• Marketing Division, responsible for driving and developing 11, 2019. Mr. Naar replaced outgoing
key marketing channels including the Integrated Marketing Vice President for Sales and Promotion,
Communications Department, Contact Management Claude Duncan; who resigned from the
Centre and four (4) Regional Offices focusing on Western post and departed the organisation
Jamaica, Europe, North America (United Sates of America March 2019. In the interim, Mr. Ricardo
and Canada) and other New and Emerging Markets Durrant served as Acting Vice President,
• Research Advocacy and Project Implementation Division, Sales and Promotions. The team leading
plays a critical role in conducting research, implementing the organization for FY 2019-20 was as
JAMPRO assisted projects and advocating for reforms to follows:

Diane Edwards Norman Naar Gabriel Heron Wendy Lyttle Pryce Shullette Cox
President Vice President Vice President Vice President Vice President
Sales & Promotions Marketing Finance & Corporate Research, Advocacy and
Services Project Implementation

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JAMPRO Annual Report FY 2019-2020

President’s
Message
Diane Edwards

The commitment and dedication of the JAMPRO refinery. Clients facilitated by the JAMPRO team
team to economic development was put to the test recorded US$659.23 million in capital expenditure
and was certainly displayed during this year of a (CAPEX), achieving 100% of target; 21,774 jobs,
global crisis. The organisation was able to achieve achieving 128% of target and US$797.48 million in
its targets except for export sales; which was mainly export sales, achieving 88% of target.
due to the suspension of operations at the Jiuquan
Iron and Steel Company (JISCO)/Alpart alumina

6
 “I am thankful

JAMPRO Annual Report FY 2019-2020

to each team
A total of 29 (10 new and 14 expansion projects member for their
hard work and
as well as five ongoing maintenance projects)
companies and 71 film productions contributed
the achievement in CAPEX and jobs, and 91 local dedication to the
companies generated the export sales recorded.
Initiatives that complemented these achievements
execution of our
included the development and roll-out of the Prime mandate,....”
Account Management Strategy (PAMS). PAMS
envisages the more efficient utilization of sales
resources to increase the rate of conversion of Other successes were realised by the Corporation
investor and buyer leads to generate impactful busi- as the Office of the Prime Minister and Cabinet
ness opportunities. There was also deliberate effort commissioned JAMPRO to lead the development
to embed the Value Selling Sales Methodology and of a Nation Brand Strategy for Jamaica in a bid
continued development and training of staff. to evolve the perception of Jamaica into a holistic
brand and send a synchronised message to the
The Corporation responded by providing support world about Jamaica’s goals and aspirations in all
to one of our most critical sectors, the agricultural facets, but particularly in business. In fiscal year
sector, to ensure national food security and sustain- 2019/20 the Cabinet approved the necessary acti-
ability of farmers amidst the immediate contraction vations to secure buy-in from varying stakeholders
of the tourism sector; one of the main consumers and initiate the development process.
of our local produce. Having completed the devel-
opment of the National Agribusiness Strategy, for The onset of the COVID-19 pandemic brought out
which work commenced the previous fiscal year, the agility and creativity of the JAMPRO team. I am
it provided the roadmap to enable an adequate thankful to each team member for their hard work
response to these challenges with the support and dedication to the execution of our mandate,
of key MDAs. JAMPRO was able to successfully which is also possible through the support of our
facilitate business matchmaking engagements clients and stakeholders. I remain optimistic about
to secure contracts for our local fresh produce in the future and JAMPRO will continue to play its part
target markets. in national economic development.

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 Corporate
JAMPRO Annual Report FY 2019-2020

Performance and
Achievement of
Targets

At the end of the financial year, clients facilitated by these achievements are comparable to the previous
JAMPRO invested US$659.2 M and created 21,774 year in which JAMPRO’s clients generated busi-
jobs representing 100% and 128% achievement ness opportunities that resulted in the Corporation
against targets, respectively. The value of exports achieving 117%, 103% and 156% of targets for
generated by clients, US$797.4 M, represented CAPEX, jobs and export sales, respectively.
88% of the year’s target. Apart from export sales,

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 JAMPRO Annual Report FY 2019-2020
JAMPRO’s Three Year Comparison
of CAPEX, Jobs & Export Sales

The Corporation, decided to forego the rate as the business community was being
administration of the Client Satisfaction inundated with surveys and preoccupied
and local Brand Awareness Surveys, for with making their own assessment of
FY2019/20. It was felt that with the chal- how to stay afloat. JAMPRO values its
lenges brought on to the local business clients and preferred to focus on continu-
community, which comprises our clients, ing to provide support during this time of
there would be an insufficient response uncertainty.

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 Value of CAPEX
JAMPRO Annual Report FY 2019-20

(Local & foreign

Direct Investments)
by Clients
“The clients The leveraging of the Corporation’s
client and stakeholder relationships
that made was the strongest contributory factor to

the largest the notable performance in facilitating

and capturing capital expenditure data
investments during the reporting period. The clients

during the that made the largest investments during

the year are New Fortress Energy, H10
year are New Hotel, JPSCo, JISCO/Alpart and Digicel;

Fortress Energy, which falls within the Energy, Tourism,

Mining and IT Enabled Services sectors.
H10 Hotel, These sectors made substantial invest-

JPSCo, JISCO/ ments in their development, contributing

40%, 20% and 13%, respectively, to the
Alpart and US$659.2 million achievement in CAPEX

Digicel...” for the 2019/20 fiscal year. Combined,

they represented US$478.2 million of
the CAPEX generated.

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Value of Local & Foreign Direct Investments (LDI & FDI) by Sector

JAMPRO Annual Report FY 2019-2020

Energy Tourism Sector
The Energy sector made the biggest contribution of 40% to total The Tourism sector followed the
CAPEX. The strong performance of the sector can be attributed energy sector with a 20% contribu-
to investments made by: tion to total CAPEX. New entrant,
Ocean Coral Spring H10 Hotel, was
i. New Fortress Energy (NFE) JAMALCO power plant project the top investor. Grupo Excellence
ii. Eight Rivers Energy Co. (EREC) solar power plant 37 MW made substantial investments this
iii. Jamaica Public Service Co. (JPSCo.) Old Harbour LNG year to complete five one-bedroom
190MW plant; and villas, adding to property upgrades
iv. The maintenance of infrastructure work carried out by completed during the 2018-19 fiscal
JPSCo during the year. year. The third biggest contributor
was Oceana Hotel which commenced
EREC, the cheapest producer of energy in the island and the upgrades near the end of the fiscal
largest solar plant in the English-speaking Caribbean, was com- year. Other hotels under construc-
missioned in October 2019; while both JAMALCO and the JPS tion include Blue Skies Resort (Negril,
Old Harbour station started operations in March 2020. Westmoreland) and Palm Beach Villas

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JAMPRO Annual Report FY 2019-2020

(Runaway Bay, St. Ann). Significant projects such

as Princess Resorts, Amaterra and Karisma Sugar
IT Enabled
Cane Bay made announcements to begin construc- Services
tion within the upcoming fiscal year.
The Telecommunications sector com-
prising LIME and Flow continued to make
Mining Sector significant expenditure on the maintenance
and upgrades of their telecommunications
The modernization project being implemented by system, accounting for 10% of the CAPEX
JISCO/Alpart strengthened the Mining sector, which reported.
accounted for 13% of total CAPEX. The plant closed
in October 2019 to facilitate the modernization and
expansion programme. The consequent reduction
Other Sectors
in exports had a negative impact on JAMPRO’s Projects in the Agribusiness, Logistics,
Export Sales targtes, CAPEX as well as national Outsourcing, Manufacturing, Film,
economic figures. Animation and Music sectors rounded out
the total capital expenditure recorded for

Infrastructure Sector the fiscal year, representing 5% of the total

CAPEX.

Almost J$80m in investment, 12% of the CAPEX,

was generated by the Infrastructure sector. Digicel’s
extensive work on its fibre-optic network during the
period, was the largest contributor to the total. The
project is ongoing and will enable the company to
increase efficiency and reliability across all plat-
forms. The performance of this sector was further
enhanced by new entrant, Wheelersfield/Stewart’s
Auto, who opened a 77,895 square feet
multi-use facility.

12
Number of Jobs

JAMPRO Annual Report FY 2019-2020

Created by Clients
H10 Hotel, IBEX Global Jamaica Ltd., JISCO/ The Outsourcing, Tourism and Mining sectors
Alpart, Alorica (58 HWT) and Conduent of the produced 49%, 29% and 14% of the total (20,009)
Outsourcing, Tourism and Mining sectors, pro- number of jobs created (21,774), respectively.
duced the most jobs during this financial year.

Number of Jobs Created by Sector

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JAMPRO Annual Report FY 2019-2020

Outsourcing Mining
The Outsourcing sector continued to produce the The Mining sector generated 14% (3,051) of the
most jobs in the economy, totalling 10,722. The total jobs. This is entirely attributable to the modern-
companies that created the most jobs are IBEX ization work conducted at the JISCO/Alpart refinery.
Global Jamaica Ltd, Alorica (58 HWT), Conduent,
Team HGS and Itel BPO.
Film, Animation and
Tourism Music (FAM)
The Tourism sector generated 6,236 jobs, that is These industries created a total of 1,381 tempo-
twenty-nine percent (29%) of the total jobs created. rary jobs. They resulted from various productions
Ocean Coral Spring H10 Hotel Group was the top such as, documentaries, short films, television
contributor, providing temporary employment productions, commercials and music videos. Most
to more than 5,000 persons. Other contributors developments originated from North America and
included Grupo Excellence Villas, Oceana Hotel and Kingston was the most demanded location for
Trident Undersea Trekking. productions.

14
Value of Export

JAMPRO Annual Report FY 2019-2020

Sales by Clients
During the fiscal year, ninety (90) export clients gen- recorded. Mining, Agro-processing, and Energy
erated sales totalling US$797.4 million. The top five accounted for 63%, 17% and 9%, respectively
exporters, representing the Mining, Agro-processing of the total export sales generated.
and Energy sectors, were Petrojam Limited, JAMALCO,
JISCO/Alpart Jamaica, Noranda Jamaica Bauxite Clients from the manufacturing, fresh pro-
Partners and Windalco. duce and logistics sectors accounted for
11% of total exports. The export target of
The value of their exports was US$712.5 million, eighty- US$905,500,000.00 was not achieved. The
nine percent (89%) of the total export sales by clients unexpected closure of the JISCO/Alpart plant
resulted in decreases in exports that created

Value of Export Sales by Sector a shortfall against targets.

15
 Financial
JAMPRO Annual Report FY 2019-2020

Performance
(GoJ Subvention and Income Generated)
For the FY 2019-2020 the Corporation received The main source of internal income is rental of
GoJ Subvention of J$855.3 million and generated office space at the corporate headquarters.
internal income of J$58.6 million.

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Sector

JAMPRO Annual Report FY 2019-2020

Highlights

JAMPRO provides support to investors and exporters across varying sectors. The main sectors are Agri-
business, Outsourcing/IT Enabled Services, Tourism, Logistics, Infrastructure, Cannabis, Manufacturing,
Mining, Energy and Creative Industries (Film, Animation & Music). Each sector made notable achievements
and created memorable moments.

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JAMPRO Annual Report FY 2019-2020

Agriculture
Agriculture was the best perform-
ing sector with growth of 7.8% within
the local economy. This resulted from
favourable weather conditions, which allowed
for increased coffee production and other crops.
JAMPRO worked with farmers, food-processors
and exporters to grow the agricul-
ture sector. One notable
success is the Lakes
Pen Agri Ventures
initiative.

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 JAMPRO Annual Report FY 2019-2020
JAMPRO provided support towards the estab
estab- Three (3) inward missions from the
lishment of a state-of-the-art agricultural USA, Canada and Japan were
development, in Lakes Pen, valued at J$11 also facilitated, exposing mem-
billion. The initiative will support small farm- bers of the delegation to local
ers through contract farming arrangements coffee farmers, roasters and
and provide them with access to technology to other stakeholders to increase
help them to improve their output and standards awareness of the farming, produc-
of production. tion and regulatory processes, and to
secure orders for the product. JAMPRO
JAMPRO, in collaboration with Jamaica Agricultural also executed a series of agricultural
Commodities Regulatory Authority (JACRA) and information sessions in Kingston, St. James
the Jamaica Coffee Exporters Association (JCEA), and Clarendon to increase awareness of business
executed various activities under the coffee opportunities. The upcoming fiscal year will see the
development programme, aimed at market diversifi
diversifi- crafting of a five-year coffee marketing strategy to
cation. The objective was to strategically reposition guide the development of the sector.
Jamaican Coffee brands – Jamaica Blue Mountain
and Jamaica High Mountain Coffee. This initiative
facilitated the participation of nine (9) local
coffee processors in the Boston Specialty
Coffee Show.

Sixty-five (65) trading opportunities were

created, contributing to the repositioning
JAMPRO provided
of the Jamaica Blue Mountain Coffee support towards
brand to international buyers and retail-
ers. Several brand-building activities were
the establishment
also undertaken including the erection of of a state-of-the-
billboards in strategic locations across the
island and celebrations around Jamaica
art agricultural
Blue Mountain Coffee day on January 9th. development, in
Lakes Pen, valued
at J$11 billion.

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JAMPRO Annual Report FY 2019-2020

Memorable
Moment

President, Diane Edwards with Kojiro Hagihara (left), Chairman of the All Japan Coffee Roasters Association, and Norman Grant, Chairman of
the Jamaica Coffee Exporters Association at a welcome dinner for the visiting Japanese delegation at the Knutsford Court Hotel.

JAMPRO hosted an inward mission with the All regulatory processes as well as to explore oppor-
Japan Coffee Roasters Association (AJCRA) to tunities for expanding business with local players.
strengthen the relationship between Jamaica and Currently, Japan purchases 70% Jamaica’s (Blue
Japan. The main objectives of the mission were to and High Mountain) coffee. Mr. Kojiro Hagihara,
familiarize the Japanese roasters with the Jamaica Chairman of AJCRA, led the Japanese delegation.
Blue Mountain Coffee farming, production and

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 JAMPRO Annual Report FY 2019-2020
Outsourcing
JAMPRO focused on positioning Jamaica as the ideal Outsource to the Caribbean, Customer
nearshore location to capitalize on the growth and devel- Contact Week (CCW) and Shared Services
oping trends within the sector. The major promotional & Outsourcing Week (SSOW) Conferences
efforts included hosting inward missions to secure leads were a few of the events participated in that
and promoting Jamaica as an ideal global services allowed an international platform to showcase
location; participating in international trade shows; part- the country’s capabilities and generate 15
nering with key influencers and stakeholders to upskill leads. Approximately four (4) inward missions
the labour pool and; increasing available real estate. were conducted, including a partnership with
Nearshore Americas, to carry out site selection
The Outsourcing sector continues to be the main genera- exercises; generating interest around Kingston,
tor of jobs within the economy with JAMPRO facilitating St. Catherine and St. James as ideal locations.
the launch of IBEX Global and Itel
BPO New Kingston expansion
projects. Team HGS, Conduent,
Alorica, and Collective Solutions
International also expanded
their facilities. According to
Grand View Research, this is
demonstrative of the unyielding
nature of the Business Process
Memorable
Outsourcing industry, attracting Moment

demand from markets such as

banking, financial services and Local Outsourcing Firm Cops Top Awards
Jamaica was triumphant at the 2019 staging of the Outsource to the Caribbean Conference
insurance, healthcare, manufac- (OCC) with a local outsourcing company, Itelbpo, being declared winner of the Regional BPO of
turing, IT & telecommunications. the Year award and the Caribbean BPO Employer of the year

New entrants, Ekdahl Capital

and Applied Financial Analytics established financial Work commenced in quarter four to develop a
analysis centres in Kingston. These establishments Global Services Sector Strategy, with consul-
represent the desire to increase the growth in moving tant Avasant, a global ICT consultancy firm, to
up the value chain. analyse the current global sector and develop

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JAMPRO Annual Report FY 2019-2020

a strategy to guide the growth of Jamaica’s sector to compete effectively in the global services sector. At
the end of the year, the consultant delivered the draft survey instrument for gathering data on the current
status of the industry; which will be deployed in FY2020/21 to inform the ‘gap’ in Jamaica’s position and
capabilities, vis-à-vis where we ought to be in the global sphere of the global services sector.

Tourism
The local Tourism industry performed well at the bringing its first all-inclusive property to the island.
end of 2019, with Jamaica welcoming 4.2 million The project will initially comprise 800 rooms with
tourists to the island and generating gross earnings construction expected to begin in 2020 and com-
of US$3.3 billion. This was achieved despite the col- pleted in 2022.
lapse of Thomas Cook Airlines in quarter two, which
led to the country losing a significant portion of its Karisma Hotels & Resorts Group broke ground on
seating capacity. Thomas Cook was expected to fly February 28, 2020 to build a hotel in Sugarcane
16 charters to Jamaica between September 2019 Bay, St. Ann. The Sugarcane Bay Project is the first
and March 2020. Those charters represent 7,300 investment under the Shovel Ready Programme
visitors to Jamaica and a potential loss of US$10 and is the largest single hotel development in the
million in tourism spend. All the seats were quickly country’s history which will add 4,800 rooms to
restored, and Jamaica became the first country to the industry. The project will be divided into three
fully conclude arrangements to recover the loss phases and will include the construction of a gated
airlift due to the collapse. residential complex and a commercial complex as
well as a BPO project. Phase 1 is estimated to be
Major developments took place towards adding to completed within 48 months of commencing and is
the local room count and attractions development. expected to begin construction during the 2020 –
Ocean Coral Spring H10 Hotel added approxi- 2021 fiscal year; with the first resort to open in 2023.
mately 900 rooms and Grupo Excellence added The company is currently monitoring the economic
five one-bedroom villas. Trident Undersea Trekking impact of COVID-19 to see how it will impact their
also did some work to improve their helmet diving timelines. The Karisma Hotels & Resort Group is a
underwater exploration experience. fast-growing Florida based operator of theme and
high-end boutique properties. They currently have
The Amaterra Jamaica Group entered a hotel man- two resort brands located on a single property in
agement/operator agreement with global chain, Negril; Azul and Sensatori.
Marriott International, which will see Marriott

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 JAMPRO Annual Report FY 2019-2020
Marriott International
Announced Development
of First All-inclusive
Property
Marriott International announced
that it entered a hotel manage-
ment/operator agreement with the
Amaterra Jamaica Group, which will
see Marriott bringing its first all-in-
clusive property to the island. The
project will initially comprise 800
rooms with construction expected
to begin in 2020.

Ground Broken For

Sugarcane Bay Hotel
Development
JAMPRO celebrates as ground
is broken for massive tourism
investment project in St. Ann, the
Sugarcane Bay Hotel. Karisma
Hotels & Resorts Group broke
ground for the development of its
Sugarcane Bay multi-resort devel-
opment in Llandovery, St Ann. The
development is poised to add 4,800 Memorable
Moment
new rooms to the Tourism sector
over 10 years.

Additionally, infrastructural developments such as the opening of major road-

ways as well as work being undertaken in the eastern end of the island will
assist the government’s thrust to position Portland and St. Thomas as major
tourism destinations. The expansion of the Donald Sangster’s International
Airport terminal, which saw a 56% increase of its current space, also added
to the global appeal of the island as a business and tourism destination.

23
JAMPRO Annual Report FY 2019-2020

Logistics and Infrastructure

The official handover cere-

mony of the Norman Manley
International Airport (NMIA)
to Grupo Aeroportuario del
Pacifico (GAP) was held on
October 16, 2019 under a
25-year concession agree-
ment. During this period,
GAP will be responsible for
improving the airport’s land
and air operational efficiency,
and financing and completing
Memorable a modernisation programme
Moment at an estimated cost of over
US$110 million.

During 2019/2020, Jamaica experienced runway and terminal expansions; Digicel’s state-of-
major developments within the Logistics and the-art network infrastructure system upgrade; and
Infrastructure sectors. The most impactful proj- Stewarts Automotive Group’s Wheelersfield devel-
ects included the divestment of the Norman opment to build two state-of-the-art showrooms for
Manley International Airport (NMIA) and opening its Jaguar and Land Rover luxury brands.
of the new multi-phased Port Royal Cruise Pier.
The Old Coal Wharf is now home to the new Port For the upcoming fiscal year, JAMPRO along with
Royal Cruise Pier Development; officially opened key stakeholders will continue to drive the imple-
January 20, 2020 with a call from Marella Cruises’ mentation of the Caymanas Special Economic
Marella Discovery 2. The Pier, managed by the Port Zone by refining the project concept to enable a
Authority of Jamaica, will significantly add to the public-private partnership to develop the zone; mar-
attractiveness of Jamaica as a cruise destination. keting of the Kingston Logistics Park; Port Royal
and Downtown Kingston development initiatives;
Other major logistics and infrastructure projects as well as working with the Airports Authority of
facilitated by JAMPRO included the Sangster Jamaica to develop strategies for general aviation
International Airport (Montego Bay Jamaica Ltd.) to improve the industry.

24
 JAMPRO Annual Report FY 2019-2020
Cannabis

JAMPRO facilitated the estab- Licensing Authority (CLA) for

lishment and entry of Starbuds, cultivation, processing and
Medz Up and High Grades Farm retailing; Global Canna Labs, the
within the cannabis industry, gen- first tier three licensed operator
erating a total of US$847,802 in by the CLA to cultivate over five
CAPEX. Other projects engaged acres of land; and Jamaica Red
during the fiscal year were Organic Moon Limited, a CLA licensed
Growth Holdings Incorporated, operator, with a 500-acre prop-
farmers of medicinal hemp used erty, that is seeking to expand
in the manufacturing of several its current complement of
organic wellness products; Drew greenhouses.
Gray Farms Ltd, a Toronto-based
company that has secured condi-
tional licences from the Cannabis

25
JAMPRO Annual Report FY 2019-2020

“Macs
Pharmaceuticals
& Cosmetics Ltd
state-of-the-art
manufacturing
facility commenced
operations
producing IV fluid,
nasal drops, and
eye drops.”

26
 JAMPRO Annual Report FY 2019-2020
Manufacturing
This year, players within the sector were most In the fourth quarter of the fiscal year, with the onset
focused on accessing new markets. Some nota- of the COVID-19 pandemic, manufacturers in the
ble companies that JAMPRO was instrumental in chemicals and cosmetics industries gained new
facilitating the growth of their business were: opportunities for increased production and sale of
• HoneyVera - The company acquired its products such as hand sanitizers, rubbing alcohol,
own manufacturing facility in Trelawny and hydrogen peroxide, pharmaceuticals and household
expanded their product line to include a men’s cleaning items. There was a marked increase in
hair and skincare line. The company is in active enquiries to JAMPRO originating both locally and
dialogue with Walmart to get its products into overseas for personal protective equipment (PPE)
stores. They have also acquired a distributor - primarily masks and gowns.
in the USA. HoneyVera is currently part of the
Export Max III programme.
• Macs Pharmaceuticals & Cosmetics Ltd
- Macs Pharmaceuticals state-of-the-art man-
ufacturing facility commenced operations
producing IV fluid, nasal drops, and eye drops. It
is the first of its kind in the Caribbean. JAMPRO
provided support to the building of the manu-
facturing facility.
• Free Form Factory - Free Form Factory is
currently supplying the Cuban market with
aluminum hydroxide for water purification.
This evolved from a contract secured via the
participation in Feria Internacional de Habana
(FIHAV) in Havana, Cuba as part of a JAMPRO
delegation. One of JAMPRO’s strategic responses to the pan-
demic was to increase facilitation and business
matchmaking services. This contributed to the sec-
tor’s capacity to take advantage of the opportunities
that arose from the pandemic.

27
JAMPRO Annual Report FY 2019-2020

Mining
Despite setbacks throughout the year, Mining con- The Limestone Value Chain Analysis (Feasibility
tinued to be a substantial contributor to economic Study & Roadmap) was advanced. Funded
growth. During the fiscal year, mining companies by the World Bank under the Foundation for
prioritized the upgrading of facilities and reducing Competitiveness for Growth Project (FCGP), the
environmental degradation resulting from opera- analysis aimed to determine the readiness level
tions. Jiuquan Iron and Steel Company (JISCO)/ of Jamaican companies to manufacture val-
Alpart alumina refinery is currently implementing ue-added products from limestone, following the
upgrades valued at US$85.4 million. exploratory study that was conducted in 2013.
PricewaterhouseCoopers (PwC), Jamaica was
Phibion, an Australian company, established oper- awarded the with contract and was tasked to
ations in Jamaica to manage the bauxite waste producing a number of assessments including a
from the production of alumina and is currently business case for producing value-added limestone
providing this service at the JAMALCO Refinery. products in Jamaica, and a feasibility study, which
The company manufactures the state-of-the-art identified up to six (6) viable limestone value-added
MudMaster(Twin Archimedes Screw Tractors). products for investment promotion packaging.
These machines remove water from tailings (red
mud) that can be recycled to the refineries. Use of To support the development of the feasibility study,
the MudMaster allows for reduced environmental a ‘Limestone Opportunities Networking Forum’
impact including dust issues. was conducted during National Minerals Week on
November 19, 2019. The sensitization sessions, as
required under the Limestone Value Chain Analysis
contract, provided an opportunity
for sharing the findings on the
global limestone industry, which
indicated that there is a high and
growing demand for limestone
globally. The presentation also
highlighted Jamaica’s position
on the global limestone platform
as a major potential supplier of
the product.

28
 JAMPRO Annual Report FY 2019-2020
Energy
The fiscal year comprised a mix of companies Other projects included New Fortress Energy
investing in the diversification of energy sources (NFE), that commissioned its US$120 million LNG-
and the development of some interesting projects. powered 150MW plant developed at JAMALCO in
One such project was the Paradise Park Solar Farm October 2019 and the JPSCo. US$27 million hybrid
operated by Eight Rivers Energy Company. The energy storage facility at the Hunts Bay Power Plant
US$65 million project, executed a 20-year power Substation commissioned in November 2019. The
purchase agreement with the Jamaica Public project involved the construction of a 24.5MW
Service Company (JPSCo.) for the purchase of facility.
renewable energy, allowing more power from renew-
able energy to be available for distribution via the During the 2020 - 2021 fiscal year, focus will be
national grid. placed on driving critical energy investments upon
the promulgation of the Integrated Resource Plan
This was a landmark event in Jamaica’s bid to diver- (IRP), focusing on renewable energy and developing
sify its energy source and enhance the energy mix strategies to attract investment opportunities to
of the country. JAMPRO was instrumental in the achieve the GOJ’s renewable energy target by 2037.
facilitation of this project by intervening with their
productive input relief application with the Jamaica
Customs Agency to ensure they were granted the
appropriate tax treatment afforded to other renew-
able energy plants.

29
JAMPRO Annual Report FY 2019-2020

Film, Animation and Music

Jamaica’s creative economy showed signs of the export-worthy projects that will find these markets
growth potential long projected for the film, anima- outside of Jamaica, as well as prepare the local
tion, and music sectors, based on our competitive industry for providing international services, there
advantage. Despite the unexpected industry con- is need for a focus on the universalisation of con-
traction following the completion of the Bond 25 tent, upskilling at the basic screenwriting stages,
film in the previous financial year, the industry has and understanding international business models.
shown resilience through the animation sector.This These needs are being addressed through the deliv-
was demonstrated through the successes of the ery of our signature programmes –JAFTA Propella
recently completed Business of Sustainability for and Film Lab, with the impact becoming evident in
Studios (BOSS) programme, and the Jamaica Film the recently concluded BOSS programme.
and Television Association (JAFTA) Propella pro-
gramme, that rebounded after a year-long hiatus The BOSS programme contributed to the devel-
with a sponsorship injection from new private and opment of established production studios and
public sector partners. Together, these develop- nurtured creative entrepreneurs to grow their busi-
ments position the screen-based economy for more nesses into sustainable and profitable production
significant growth in the upcoming year. and animation entities. Recent successes of pro-
gramme participants such as Liquid Light Digital
Limited audience consumption opportunities locally and Listen Mi Caribbean, have established a grow-
required that distribution markets be sought abroad. ing interest in animation as a career. Training of
In order to enable the local film industry to create animators in the numerous aspects of 2D and 3D

30
 JAMPRO Annual Report FY 2019-2020
animation has been actively pursued in Jamaica and featured in the ‘What’s in the pipeline’ sec-
over the past several years and has been bolstered tion of the Kidscreen Magazine October Edition.
by the World Bank-funded Youth Employment in Much of this success has been attributed to
Digital and Animation Industries (YEDAI) Project. the support provided to ListenMi through the
Additionally, the cadre of creative entrepreneurs BOSS programme – specifically in terms of
is rapidly increasing due to greater access to an Intellectual Property (IP) development training
entrepreneurship lifestyle and digital resources. The and market attendance.
growth of existing local animation studios is critical
• JAMPRO hosted high-profile productions,
to achieving the objective of building the industry
including Gold Cup 2019, The Real Housewives
and creating new employment opportunities for
of New Jersey, Growing Up Hip- Hop, the Steppa
youth.
music video by Jamaican artiste Buju Banton,
and the Royalty music video by XXXTENTACION,
Notable achievements within the sector during the
Ky-Mani Marley, Stefflon Don & Vybz Kartel.
fiscal year include:
• JAMPRO led a national delegation of five (5) • The top transactional productions included the
filmmakers to the Cannes International Film Reggae Sumfest (J$205,500,000) production, a
Festival. The short film ‘Flight’, whose produc- Paypal/Xoom commercial (J$53,053,704) and
tion was financed through the JAFTA Propella the CONCACAF Gold Cup 2019 Live Broadcast
programme, was featured in the Short Film (J$27,720,000).
Corner and won best short film at the Diversity
in Cannes event. The Film Commission part-
nered with the Pavilion Afrique to deliver three
(3) speaking engagements on the growth, value
and opportunities in the Jamaica film industry.

• Through the Export Max programme, Liquid

Light digital secured contracts with Toonz and
Xentrix Toons to collaborate on outsourcing
projects and has recently secured two inves-
tors through the Branson Centre Accelerator
Programme. ListenMi Caribbean Animation Studio Secures
Deal with HBO
Local Animation Studio, ListenMi Caribbean secured a deal with
• ListenMi Caribbean, an animation studio was
Sesame Street to produce an animated short film ‘D is for dress up’
selected as MipTV 2020 Producers to Watch for the 50th anniversary series.

31
JAMPRO Annual Report FY 2019-2020

Improving Jamaica’s
Competitiveness
Sector Development Initiatives

32
 JAMPRO Annual Report FY 2019-2020
Agribusiness Strategy
In early 2019 JAMPRO initiated the development of a National Five-
Year Agribusiness Strategy. The strategy comprises programmes
and activities designed to address the challenges inhibiting the
expansion of the agribusiness industry. It was included in the
development of a ten-year sector plan being led by the Ministry of
Industry, Commerce, Agriculture and Fisheries (MICAF), and pro-
vides a framework for action for the Food Security and Agribusiness
Council’s (FSAC) response to the COVID-19 pandemic. The Ministry
established the FSAC to drive the application of the policy. It will be
led by Minister Floyd Green and JAMPRO will act as Secretariat.

Manufacturing Strategy
Further to work undertaken in the previous fiscal year in the devel-
opment of a draft Manufacturing Strategy, advancements were
made with receiving comments from select stakeholders, such
as the Ministry of Foreign Affairs and Foreign Trade, Planning
Institute of Jamaica, and Ministry of Finance and Public Sector.
Subsequent submission was made to MICAF, that will prepare the
Cabinet Submission to accompany the strategy. It is expected that
submission will be made to the Cabinet in the upcoming fiscal year.

Medical Tourism Policy

During the first half of the FY 2019-20, the draft Medical Tourism
Green Paper was again validated based on comments received
by MICAF, the Ministry of Health & Wellness (MoHW), the Ministry
of Tourism (MOT), Jamaica Tourist Board (JTB), Tourism Product
Development Company (TPDCO), Bureau of Standards Jamaica
(BSJ) and the Medical Council of Jamaica. This was in a bid to
update the draft Green Paper and Cabinet Submission to finalise
requirements for handover to the MoHW, that is now the respon-
sible entity for the advancement and subsequent implementation
of the policy.

33
JAMPRO Annual Report FY 2019-2020

Jamaica Screen Fund Initiative project, key milestones were met to advance the
Following submission to the Public Investment project, including:
Management Committee (PIMC), the chair, • Hosting of the project’s first promotional event
the Honourable Nigel Clarke, agreed to the ini- in October 2019 dubbed “The Future of Work:
tiative, noting however, that its structure and The Outsourcing Industry 4.0.” The event created
operation would require revision of funding from awareness of the GSSP and the opportunities
the Consolidated Fund rather than operating available to the Jamaican workforce;
independently. The concept was redesigned and
• Participation in the World Bank’s supervisory
presented to key stakeholders (Development Bank
mission in quarter two;
of Jamaica and Jamaica Business Development
Corporation) to secure no objection to the revision. • Training in the scrum project management
The initiative was also renamed from the Film Fund approach in quarter four to assist JAMPRO and
to the Jamaica Screen Fund Initiative. Work will the other GSSP partners to better manage the
continue in FY2020/21 to advance the initiative. project; and

• Revision of the concept for an Accelerator, as

Global Services Sector Project (GSSP)
well as Outsourcing & Innovation Incubators
During the fiscal year, a series of stakeholder con-
to create a Technology Innovation District that
sultations were executed to create awareness
will revolutionize the way in which support is
around the GSSP to secure stakeholder buy-in and
provided to the industry.
generate a clear understanding of its scope. As the
main executing agency for Component Two of the
The contract for the National Outsourcing
Coordinator (NOC) ended in December 2019 and
was extended to the end of the fiscal year to facil-
itate the continued work within the outsourcing
industry – focusing primarily on training and real
estate needs. In the case of training, the NOC served
as JAMPRO’s representative on the Global Services
Sector Board (GSSB) responsible for addressing the
(L-R) Dr. the Hon Nigel Clarke, Minister of Finance and the Public training needs of the industry and continued to work
Service, and Adriana La Valley, Chief of Operations at the Inter-
American Development Bank, IDB, listen to Diane Edwards, President with various developers to advance and remove the
of JAMPRO after the official signing ceremony for the Global Services
bottlenecks affecting the build out of office space.
Skills agreement. The ceremony was hosted today, January 24, 2019
at the Ministry of Finance and the Public Service in Kingston.

34
 JAMPRO Annual Report FY 2019-2020
An analysis of the digital global Project. Following consultations
services sector was also com- with several key industry players,
“JAMPRO
missioned, which will segue into including the Special Economic undertook
several policy
the development of a strategy to Zone Authority, recommendations
guide the growth of Jamaica’s for changes to the SEZ legislation
sector to compete effectively in and administrative processes were interventions
the global services sector. The
gap analysis report will explore
developed and accepted by major
private sector stakeholders. The
to enhance
global trends and assess the gap finalisation of an implementation the business
in Jamaica’s position and capabil- plan by the Authority to enact the
environment
ities, vis-à-vis where the country practical incentive regime for the
ought to be in the global sphere BPO sector will be closely moni- for investors
of the global services sector. tored by JAMPRO.
and exporters.”
Special Economic Zone (SEZ)- Other Policy Interventions:
Business Process Outsourcing As part of its role in driving
Industries Regulatory Reform Jamaica’s economic develop-
Based on the challenges faced ment, JAMPRO undertook several
by the Business Process policy interventions to enhance the
Outsourcing Industry in relation business environment for inves-
to accessing incentives provided tors and exporters. This included
by the Special Economic Zone policy interventions in relation to
regime, it was determined that fiscal incentives, trade facilitation,
the creation of a carve-out for trade policy, visa policy (recom-
the BPO sector within SEZ could mending the introduction a new
be an important step towards category of visas specifically for
encouraging growth within the the investors), amendments to the
industry. To this extent, a con- Casino Gaming (Integrated Resort
sultancy was undertaken to Development) Act, issuance of
explore the need for a carve-out bond waivers and ascension to the
within the SEZ regime for the Istanbul Convention (ATA Carnet).
sector within the context of the
wider Global Services Sector

35
 Business
JAMPRO Annual Report FY 2019-2020

Environment
Initiatives
National Investment Policy
The draft Green Paper for the National Investment
Policy (NIP) made significant progress during the
fiscal year. Key among these was the development
of a budget, implementation timelines, the insertion
of section for environmental considerations as well
as feedback from various government stakeholders
prior to its advancement to the Office of the Cabinet.

Additionally, steps were taken to advance three (3)

recommendations of the NIP, namely: (i) defining
priority projects, (ii) Divestment Policy including the
divestment of crown lands, and (iii) addressing the
gaps in Public-Private Partnership (PPP). While the
first two were advanced, unfortunately, the latter
matter was not addressed and will be taken up in
the upcoming new fiscal year.

National Business Portal

The National Business Portal (NBP) complements
the NIP. Significant achievements were recorded in
both Phases One and Two of the Project with some
work also undertaken towards Phase Three.

36
1

JAMPRO Annual Report FY 2019-2020

Phase One:
• The content of the Portal was finalized and submitted to eGov
to facilitate uploading to the live portal environment. The hosting
contract with eGov is expected to be finalised within the first
quarter of FY 2020/2021 and will see eGov hosting the site and
providing technical support for two years, gratis.

• A total of 16 MoUs were signed with business facilitation part-

ners/MDAs, including the participants in Phase Two of the project.

• In January 2020, a Cabinet Note was prepared and submitted to

MICAF for comments.

2
Phase Two:
• Eight business processes were re-engineered, namely the
Productive Input Relief for Health, Tourism, Manufacturing,
Agribusiness and Creative Industries along with Cannabis
“A total of 16
Licensing, Divestment of Crown Lands and Registering a
Pharmaceutical Products. The As-Is Reports and To Be reports MoUs were
were finalised during the period with each entity providing sign- signed with
off on the documents presented. This phase was financed by
the World Bank under the Foundations for Competitiveness and
business
Growth Project (FCGP). facilitation

3
Phase Three: partners/MDAs,
• Given the responses from potential Phase 3 bidders to the initial
request for Expression of Interest, it was determined that a more
including the
robust set of documents were needed to ensure a successful pro- participants in
curement process. This will see the creation of revised Functional,
Non-Functional, and Technical Requirements as well as a Terms
Phase Two of
of Reference. Phase three has been put on hold until the comple- the project.”
tion of Phase two of the project.

37
JAMPRO Annual Report FY 2019-2020

National Export Strategy (NES) II Other enhancements to the business environment include:
Work continued with the consultancy to • The launch of the Electronic Business Registration
assess the impact of the NES. It was high- Form (eBRF) in October 2019;
lighted that many government entities were
• Finalisation of the National Spatial Plan based on com-
not aware of their implementing responsibil-
ments from stakeholder consultations in March 2020;
ity under the Strategy. The ITES stakeholders
were included in the survey to ensure that • Launch of the pilot for the Jamaica Development
the lessons learnt from that sector would Applications Portal (JDAP) in February 2020;
be captured in the report. It is anticipated
• Advancement of the drafting instructions to revise the
that, when completed, the report will inform
land titling legislative framework to support electronic
the work of the Export Working Group of the
land titling; and
Ministry of Industry, Commerce, Agriculture
& Fisheries (MICAF) and chaired by Min. • Advancement of the Port Community System to facili-
Floyd Green. tate the pilot of the Trucker Appointment Systems, and
training took place for the submission of the export
National Competitiveness Council (NCC) manifest in the fourth quarter.
The ‘Ease of Doing Business’ in Jamaica is
an integral condition for the competitiveness
of industries and Jamaica as an investment
destination. The effort to improve the pro-
cesses and resources related to this also
contribute to Jamaica’s continued rise in the
Doing Business Report (DBR) rankings.

In the DBR 2020 report, published in October

2019, Jamaica’s ranking rose slightly to 71st
from 75th. Reforms in respect of the reduc-
tion in the transfer tax and stamp duty for
land transactions, as well as provision of
statistics on the Supreme Court’s website
The Most Honourable Prime Minister, Andrew Holness ON, MP (right) speaks to
were particularly valuable to the gains made. JAMPRO President, Diane Edwards at the NCC annual general meeting.

38
 JAMPRO Annual Report FY 2019-2020
(L-R) The Honourable Daryl Vaz, MP., Minister without Portfolio in the Ministry of Economic Growth and Job Creation; Silvia Carolina Lopez
Rocha, Development Economics Vice Presidency, World Bank Group; Dr. the Honourable Nigel Clarke, MP., Minister of Finance and the Public
Service; Julie Ryan, Global Indicators Group, Development Economics, World Bank Group; The Honourable Floyd Green, MP., Minister of State
in the Ministry of Industry, Commerce and Agriculture, and Diane Edwards, President of JAMPRO, speak after the 8th staging of the Business
Environment Reform Roundtable, which was hosted by the National Competitiveness Council (NCC) at the Jamaica Pegasus Hotel in Kingston
on May 9, 2019.

Additional advancements made throughout the year was established at the request of JAMPRO
included: Board of Directors to identify factors of pro-
• Technical working groups were created for six ductivity, which is to inform reforms beyond
(6) indicators geared towards propelling the the business environment.
country to top ten ranking in the DBR.
• The Secretariat, housed within JAMPRO, was
• Two sub-committees of the Council were estab- instrumental in lobbying for the approval of
lished. The Communications Sub-Committee an extension and additional financing of the
was created to develop and manage the execu- Foundations for Competitiveness & Growth
tion of communication campaigns to publicise Project (FCGP); specifically, to Component One,
the work of the Council and its implementing which focuses on the Business Environment.
agencies; and the Productivity Sub-Committee

39
JAMPRO Annual Report FY 2019-2020

Foundations for Competitiveness & Growth

Project (FCGP)
During the year in review, the primary focus was • Secured US$300,000 for Export Max III that will
on expediting the implementation of the various allow the project to support exporters to secure
projects within Component One’s (enhancing com- new markets. As at March 2020, some twen-
petition in the business environment) portfolio of ty-eight (28) exporters had exported products
the project. The project was scheduled to come with the support of the project.
to an end in June 2020, however, approval was
• Re-engineered eight processes under the
received for an extension of twenty-four (24) addi-
National Business Portal Phase Two con-
tional months. A Cabinet Submission was prepared
sultancy that will result in more streamlined
for the approval for additional financing amounting
experience when applying for fiscal incentives
to US$15 million. The World Bank is expected to
and cannabis licences.
provide US$10 million with the remainder coming
from the Consolidated Fund. The additional financ- • Advancement of the development of the
ing will be used to expand the reforms that had National Spatial Plan IT platform to create the
commenced under the first execution of FCGP, as tool to be used improve the way in which devel-
well as tackle new areas that require funding and/ opment decisions are made.
or technical assistance.
• Facilitated the preparation of the drafting
instructions to give effect to eland titling in
By the end of the fiscal year, Component One was
Jamaica. The project also supported consul-
able to significantly advance its projects and so
tancies designed to improve the capacity of
improve its performance vis-à-vis its results matrix.
the National Land Agency (NLA) to introduce
Key achievements include:
the new paperless regime.
• Successful launch of the pilot for Jamaica
Development Applications Portal (JDAP) that • Contracts were awarded for the Business
will allow developers to electronically submit, Process Review and Re-Engineering for the
pay and monitor their building applications and Kingston & St. Andrew, St. Ann & St. James pilot
environmental permits. At the end of the fiscal Municipal Corporations and related agencies.
year seven (7) applications were processed by The output of these consultancies is critical to
the system. the full roll-out of the programme to the other
eleven (11) MCs.

40
Major Events and

JAMPRO Annual Report FY 2019-2020

Signature Programmes

41
JAMPRO Annual Report FY 2019-2020

Events

China International Import Expo

Jamaica Selected as Guest Country of Honour at the 2019 Staging of CIIE

A delegation led by the Most Honourable Andrew Holness participated in the annual China International Import Expo (CIIE), where Jamaica
was selected as a guest country of honour at the 2019 staging. The Expo enabled JAMPRO to promote trade and local invest- ment opportuni-
ties across various sectors to China’s public and private sectors.

The CIIE was held from November 5-10, 2019 in Commerce, Agriculture and Fisheries (MICAF), the
Shanghai, China. It is one of the world’s only import- Hon. Kamina Johnson-Smith - Minister of Foreign
themed national-level expos. The event was hosted Affairs and Foreign Trade (MFAFT), and JAMPRO
by the Ministry of Commerce of China and the representatives, Diane Edwards - President, and
Shanghai Municipal Government. Jamaica was Gabriel Heron - Vice President of Marketing.
named one of the five (5) countries of honour par-
ticipating in the Expo. Jamaica’s delegation was led The theme of Jamaica’s Pavilion was “Experience
by the Most Honourable Andrew Holness and com- Jamaica…Do Business Jamaica”, which allowed
prised the Hon. Audley Shaw – Minister of Industry, JAMPRO to promote Jamaica’s key business/

42
 JAMPRO Annual Report FY 2019-2020
investment opportunities as well as display key Jamaican products available for export.
JAMPRO generated one investment lead, three export leads for Jamaican Green Bean Coffee as well as
three qualified export leads for Jamaican Rum, coming out of Jamaica’s participation in the CIIE.

Caribbean Hotel Investment Conference and Operations Summit (CHICOS)

Jamaica Successfully Hosted Record

Breaking CHICOS Attendance!
JAMPRO in partnership with the Apple Leisure Group
Two major announcements were made at the con- and HVS hosted the 9th edition of the Caribbean
Hotel Investment Conference and Operations Summit
ference from the Karisma Hotels and Resorts and (CHICOS) in November 2019. CHICOS is one of the
primary fora in the region for the discussion of rele-
the Amaterra Group. Karisma Hotels and Resorts
vant and timely hospitality development issues. The
broke ground for its Sugarcane Bay multi-resort conference for the first time had a record-breaking
attendance of 325 participants.
development and the Amaterra Jamaica Group
partnered with Marriott International to develop
Marriott’s first all-inclusive property on the island.

43
JAMPRO Annual Report FY 2019-2020

Events

The 8th Biennial Jamaica Diaspora Conference

JAMPRO capitalized on the 8th staging Members of the Jamaican Diaspora in the USA were invited
of the Jamaica Diaspora Conference by to learn more about the business opportunities available in
hosting a programme dubbed “Discover Jamaica. Several meetings were prearranged for the clients,
Business Jamaica”. Both events were based on their areas of interest. The purpose of this initiative
held from June 16-20, 2019. The Discover was two-fold; it provided JAMPRO the opportunity to mes-
Business Jamaica programme targeted sage potential investors and buyers while encouraging them
influential members of the Jamaican to share the message with persons within their professional
Diaspora, while the main Diaspora circles.
Conference targeted Diaspora members
in general.

International Ministerial Roadshow

JAMPRO participated in a Ministerial Mission

lead by the Honourable Minister Audley Shaw
to Pennsylvania April 25-27, 2019. The mission,
co-sponsored by the Jamaica Tourist Board, was
centered on the 124th staging of Penn Relay games
in Philadelphia. A Doing Business with Jamaica
luncheon was executed with potential investors
targeted for the Tourism, Logistics, BPO, Agro-
Industries, Film and Animation sectors. Twelve
leads were generated which have potential for fur-
ther development in Jamaica.

44
 JAMPRO Annual Report FY 2019-2020
Programmes

Export Max III

Export Max III Programme takes Flight!

An MoU signing ceremony was held for the third cohort (Export Max III) in December 2019 with 48 com-
panies coming on board for the journey to grow their businesses. The programme is being executed in
collaboration with JBDC and JMEA and main sponsors PIOJ/FCGP, BSJ and Scotia Group. Over the three
years of the programme, it is expected that there will be a 50% average growth in export sales for the
participating companies.

Honourable Floyd Green, Minister of State in the Ministry of Industry, Commerce, Agriculture and Fisheries (centre), is flanked
by representatives from the selected companies for the Export Max III export development programme. The announcement was
made on December 10, 2019, at the Jamaica Pegasus Hotel. The program aims to help the companies achieve at least 50%
average growth in export sales over 3 years.

Export Max III seeks to build on the achievements Max include capacity building, export promotion,
of Export Max I and II and was expanded to target mentorship and business advocacy. Since the pro-
50 Jamaican exporters and export-ready compa- gramme’s commencement in November 2018,
nies with capacity building and market penetration seventy (70) training events, seminars, missions
supports. Export Max III for the first time, includes and webinars have been completed and 131 new
companies in the creative economy. The purpose export orders contracts were generated by partici-
of the programme is to enable the companies to pating companies by end of March 2020.
be competitively positioned to take advantage of
market opportunities and ultimately make a greater
contribution to the overall performance of the Of note, was the execution of an inward buyer mis-
Jamaican economy. Key features of Export sion with PriceSmart International, where ten (10)

45
JAMPRO Annual Report FY 2019-2020

of the thirty-five (35) participating com-

panies received orders from PriceSmart.
This channel is potentially very lucrative
for the participants and the JAMPRO will
push to do further missions with this
entity as the programme goes forward.

Cuba Market Development Programme

JAMPRO completed the execution of the third and final The programme’s strategic focus was to
year of the 3-year Cuba Market Development Programme. continue to nurture the strong relationships
This programme was geared towards building Jamaica’s built in the market over the past two years
export presence in the Cuban market. Key to the success of and support local companies in gaining
this programme has been the engagement of strategically approvals as suppliers to the market and
important stakeholders such as the EXIM Bank, the Cuban securing orders from the Cuban buyers. The
Chamber of Commerce, the Embassy of Jamaica in Cuba, appointment of the Cuba in-market Broker
the Cuban Embassy in Jamaica, the Ministry of Foreign was a success in driving new exports sales
Affairs and Foreign Trade (MFAFT) and local commercial and saw the full utilization of the available
interests. line of credit which had to be increased

“The program twice during the period. Prior to this, the

now has a waiting

fund was underutilized. The program now
has a waiting list of unfilled orders worth

list of unfilled CA$30 million up to the end of March 2020

orders worth
when the programme ended.

CA$30 million As part of the programme, JAMPRO par-

up to the end of ticipated in the 37th staging of Feria

Internacional de Habana (FIHAV) in Havana,

March 2020 when Cuba in November 2019. The Jamaica del-

the programme egation comprised seven manufacturing

companies; three of which were new par-
ended.” ticipants – Macs Pharmaceuticals, Orion

46
 JAMPRO Annual Report FY 2019-2020
Manufacturing and Carita Jamaica. The Economic Diplomacy Programme
Strong interest was conveyed by
the Cuban buyers and several
The Economic Diplomacy Programme (EDP) is
opportunities emerged for joint ven-
a collaborative initiative between JAMPRO and
ture partnerships in Agribusiness,
MFAFT. The programme comprises a range of
Cosmetics, Pharmaceutical and
structured, scheduled activities, with the aim of
Construction sectors.
enhancing communication, improving the sharing
of market specific information as well as enabling
A key success from this year’s
a framework to facilitate engagement on activities
participation was the Cuban
implemented by all parties. An important aspect
Government’s approval of Free Form
of Economic Diplomacy Programme will see the
Factory as a supplier of construc-
Diplomatic Missions and Consular Posts (DMCPs)
tion materials, the first company
equipped with “EDP Tools”, which are a suite of
in the Caribbean to secure this
current promotional material, such as PowerPoint
status. Other companies including
Presentations, Videos, FAQs, brochures, artwork,
GK Foods and Continental Baking
and sector briefs.
Company received orders but have
not been able to fulfil them as the
The programme details have been finalised and
line of credit arrangement for that
the DMCPs have been briefed jointly by JAMPRO
market was exhausted. JAMPRO
and MFAFT through five (5) sensitization ses-
made several representatives, inde-
sions. The EDP initiative was slated to officially
pendently and in collaboration with
launch in the latter part of the fiscal year, how-
the EXIM Bank, to MICAF and the
ever, the launch event was postponed due to the
Ministry of Finance and Public
COVID-19 pandemic. JAMPRO will continue to
Service (MOFPS), for an expan-
work closely with MFAFT to engage the DMCPs
sion of the line. A final decision has
and begin to execute the planned initiatives under
not yet been made on this matter,
the programme.
which impacts any further contin-
uation of the programme.

47
Programmes

JAMPRO/UWI Online Workshop: A Step-by-Step Guide to Exporting

A concept that was crafted in Step-by-Step Guide to Exporting workshop. Thirty-seven (37) of
2016 in partnership with the Workshop began on October 13, the persons successfully com-
University of the West Indies 2019 for a period of 8 weeks (but pleting the programme were
Open Campus (UWIOC) finally was extended to January 31, Export Max III participants.
bore fruit in the 2019-2020 fiscal 2020); with a high level of interest Participants indicated that the
year. The Step-by-Step Guide to from the public, 226 Expressions content was relevant to their
Exporting Workshop forms part of Interest received at the launch training needs and rated their
of JAMPRO’s effort to boost the of the workshop. overall programme experience
export readiness of local export- as either excellent or good. Other
ers. The workshop informed and The first cohort consisted of nine- persons are now eagerly waiting
empowered participants on how ty-one (91) active participants, to participate in the next Cohort
to navigate the export process, with fifty-nine (59) persons, in the upcoming fiscal year.
with the aim to increase the (65%) receiving certificates of
number of companies/individuals participation having fulfilled the
exporting. The online edition of A requirements for completing the
Marketing

JAMPRO Annual Report FY 2019-2020

Initiatives
Country Brand
Strategy
The Office of the Prime Minister (OPM),
MFAFT and JAMPRO, have started the pro-
Corporate Awareness
cess to build out Jamaica’s national brand to Campaign
capitalize on both a local and broader global
recognition than what currently exists. The During the second half of the year, JAMPRO launched a
initiative is led by the OPM with JAMPRO short Awareness Campaign for JAMPRO’s investment
appointed as Technical Secretariat. and export services. The campaign ran for approximately
six weeks on multiple digital platforms including Google,
The following activities were implemented LinkedIn, Instagram, Twitter and Facebook and had great
during the reporting period: success with 860K impressions in total.
• Cabinet approved the submission for the
Project;
Airport Advertising
• Technical Working Group (TWG) formed
with key government agencies; The organisation continued its thrust to actively promote
the JAMPRO brand and Jamaica, as a business destina-
• JAMPRO appointed Technical
tion to audiences globally. This channel was identified
Secretariat and chairs the TWG; and
for large format and digital advertising, to support the Do
• Request for Proposal prepared and Business Jamaica campaign. Key locations in our local air-
reviewed for issuing in the upcoming ports were identified to promote the overall campaign. The
fiscal year. campaigns which were launched in the Norman Manley
International Airport continued throughout the financial
year; however, the Donald Sangster International Airport
promotions were discontinued.

49
JAMPRO Annual Report FY 2019-2020

Corporate Website Redevelopment

DoBusinessJamaica.com
Through the services of an international web devel- The infographic below shows the
oper, WeUsThem, an updated online corporate key search engine optimization
identity was created, along with updated messag- (SEO) indicators post website
ing and design, to clearly communicate JAMPRO’s launch, that is, the bounce rate,
mission, story, various services, resources, and key pages per session
business sectors. The website provides a seamless, and the time spent
easily navigated user experience. The website was on each page.
designed with the main objective of being a lead
generation tool for the Corporation.

50
 JAMPRO Annual Report FY 2019-2020
Sector Promotional Campaigns

The organisation shifted its man- Key activities included:

date to a more sales-focused • Updated sector presentations covering key highlights
approach and initiatives were of each sector and available opportunities;
taken to equip and support the • Shortened sector videos to be used in paid digital
sales team for generating leads campaigns;
and closing investment and export • Reviewed and updated FAQs for each sector;
projects with local and interna- • Updated sector-related information – including articles
tional stakeholders. and press releases; and
• Designed image library per sector.

International PR Initiatives
To advance Jamaica’s business profile, the Corporation identified
the following publications for placement of ads to support the Do
Business Jamaica marketing programme:
• Japan Times
• FDI Intelligence
• Hotel Management (online ad)
• Site Selection Investment Profile
• China Central Television (for CIIE in November)
• Seatrade Maritime Review

51
 Market Activations
JAMPRO Annual Report FY 2019-2020

Overall, the organisation engaged in 99 missions across 17 countries.

Inward Missions – 59 | Outward Missions – 40

52
OrganiSational

JAMPRO Annual Report FY 2019-2020

Development
JAMPRO’s focus for the review period was • Introduction of fortiAP and virtual private
increasing efficiency. Several initiatives in network (VPN). FortiAP devices, when
this regard were implemented and realised plugged into home internet connections,
notable results. However, it was when the provide network ports that connect staff
Corporation was forced to close in March directly to the JAMPRO network in the Head
due to the COVID-19 pandemic that the Office and allow staff members to access
extent of the value of the new tools and sys- all the corporate network services that they
tems became clear. Key initiatives include would have access to within the office.
the: Similarly, the VPN allows staff to connect
• Development of a work from home to the corporate network remotely when-
policy and workplace safety protocols; ever necessary;

• Movement of key JAMPRO services and • New service desk application that allows
data stores online, with remote access, departments to submit service request
such as client relationship management among themselves according to service
system, purchase requisition system agreements and track same;
(implemented in FY2018/2019 but
• Implementation of PBX queuing manage-
improved upon in FY2019/2020);
ment software in our Contact Management
• Provision of approximately 60% of Center (CMC) which offers ‘call center’ type
employees with smartphones that services to the Corporation; and
have sufficient memory and processing
• Increased water storage capacity to serve
power to access the Microsoft Office
the building.
suite on the go and enable remote work
where persons did not have a JAMPRO
issued laptop;

53
JAMPRO Annual Report FY 2019-2020

Human Resource Development

This year staff development ini-
tiatives were aimed at improving
the work environment and the
reward systems. Some of the
main initiatives were:
• Introduced Value Selling
Methodology to the Sales and
Promotion and Marketing
teams.

• Enhanced the Change

Management programme in
the areas of onboarding.

• Redesigned the Performance

Management instrument to
encourage culture change
as part of the Change
Management exercise.

• Initiated a succession plan-

ning system.

• Continued the work of the

Culture Ambassadors, who
focus on areas of values inte-
gration, on-boarding and the
buddy system.

The Corporation will continue the

drive to facilitate remote working,
improvement of knowledge man-
agement, work productivity and
staff satisfaction levels.

54
Board of Directors’

JAMPRO Annual Report FY 2019-2020

Report
Overview
The Corporation is governed by a Board of Directors appointed by In FY 2019/2020, there was a
the Portfolio Minister. The Board of Directors continues to support new appointment to the Board of
the GOJ Ten Dimensions of Good Board Performance and to drive Directors. Mr. Christian Tavares
excellence in corporate governance for the Corporation. The Board Finson joined the Board of
remained on course in its strategic direction of the Corporation with Directors in July 2019 bringing
its approval of the Corporation’s four (4)- year Strategic Business Plan to the Board his legal expertise
for the FY 2020/2021 - FY 2023/2024. With the onset of the COVID- in commercial and conveyanc-
19 pandemic, it was imperative for the Board of Directors, that the ing law. Ms. Deborah Newland
Corporation play a leadership role and increase its efforts in attracting resigned from the Board of
investment to Jamaica and local direct investment in keeping with its Directors in June 2019.
mandate to drive Jamaica’s economic growth. Under the direction of
the Board of Directors, the Corporation rearranged its priority sectors The Board of Directors provides
with key focus now being on the Agricultural Sector and the Global strategic guidance on key areas
Services Sector. through four Sub-Committees.
The Sub-Committees include at
The Board of Directors through its Marketing and Projects Sub- least two Board members and
Committee oversaw the Corporation’s website redesign and with the option, through the
development and was pleased with the unveiling of the new website Board of Directors, for additional
https://dobusinessjamaica.com geared towards greater client and non-Board members, to serve
investor engagement and lead generation. as members on the Committee.
Compensation for the addi-
The Board of Directors is keen on achieving a Top 10 ranking tional Sub-Committee members
in the World Bank Doing Business Report and has supported the totalled J$77,800.
Corporation’s initiatives to achieve Jamaica’s upward movement in
ranking.

55
JAMPRO Annual Report FY 2019-2020

Marketing and Projects

The Marketing and Projects Sub-Committee (MPSC) of the • Nation Branding Initiative
Board of Directors is responsible for providing strategic over- • Digital Marketing Strategy
sight in the area of marketing, corporate communications, sales • Global Services Sector activations
and promotions to support the Corporation’s Strategic Plan. The • Export Max III
committee’s main activities were driven by these key strategic • Amaterra Group Ground-breaking
objectives: Event and Investor meeting
• to build global business relationships • Outsource to the Caribbean
• to build Jamaica’s business brand through a global nation • Europe Engagement – Marketing
branding strategy Mission
• to create greater awareness for the Corporation both locally • Jamaica International Expo
and internationally. • Caribbean Hotel Investment
Conference & Operational Summit
A key project, that the MPSC oversaw was the redesign and (CHICOS)
development of the Corporation’s new website, https://dobusi-
nessjamaica.com. Given JAMPRO’s mandate, it was necessary The Marketing and Projects Sub-
for the Corporation to have a website that was interactive with Committee consists of four (4)
both local and international investors, geared to drive and gen- voting members Zachary Harding
erate leads for exports and investment. The MPSC is committed (Chairperson), Yoni Epstein (Director),
to monitoring and evaluating the performance of the website Gillian Wilkinson McDaniel (Director)
as the Corporation seeks to penetrate new markets. and Delano Seiveright (Director). Non-
Voting members of the Committee are
In addition, the MPSC provided general guidance to the Diane Edwards (President), Gabriel
Marketing Division on its notable initiatives, namely: Heron, (Vice President – Marketing
• Corporate Awareness Campaign Division), Norman Naar (Vice President,
• Jamaica Blue Mountain Campaign being undertaken Sales and Promotions Division),
with the Jamaica Coffee Exporters Association and the Keneshia Nooks, (Manager – Integrated
Jamaica Commodities Regulatory Authority Marketing Communications Dept -
• China Import International Expo (CIIE) - Penetration of the resigned September 2019) and Arlyn
Chinese market to drive exports and the establishment of Gordon (Corporate Secretary).
the China Task Force.

56
 JAMPRO Annual Report FY 2019-2020
Audit
The Audit Sub-Committee of the Board gives the timely and efficient manage-
direct oversight to the auditing functions of the ment of staff remuneration and
Corporation and assists the Board in fulfilling its benefits. For the review period,
oversight responsibilities in areas such as the integ- JAMPRO was compliant with all
rity of financial reporting, the effectiveness of the statutory and regulatory require-
risk management and internal control system and ments and ended the financial
related governance and compliance matters. The year with an achievement of all
Sub-Committee also has responsibility for making a corporate targets.
recommendation to the Board on the appointment
of the external auditor. The membership for the Audit
Sub-Committee for FY 2019-
During the Fiscal Year 2019-2020, the Audit Sub- 2020 included: Yoni Epstein
Committee reviewed several initiatives including (Chairman), Ian K. Levy
the automation of the Corporation’s Purchase (Director), Dr. Andre Gordon,
Requisition and Purchase Order system to ensure (Director) and Douglas Robinson,
its integrity and functionality, the improvements (Sub- Committee Member). Non-
to the Orange HR automated system to generate Voting Members included Diane
timely information and the improvement to the Edwards (President), Wendy
submission process for motor vehicle allowances Lyttle Pryce (Vice President –
payable to relevant officers. A key priority area for Finance and Corporate Services),
the Audit Sub-Committee was the critical review Errol Barnaby (Financial
of the audited figures relating to the Corporation’s Controller resigned June 2019),
achievements of its Corporate and Divisional Audrey Mattis (newly appointed
targets. The Audit Sub-Committee assesses the Financial Controller), Dianne
actual achievements against the Board’s estab- Graveney (Internal Auditor)
lished Corporate and Divisional targets. The and Arlyn Gordon (Corporate
Sub-Committee was also responsible for ensur- Secretary).
ing the Corporation’s compliance with the various
Laws, Regulations and Internal Polices relating to
the areas of Compliance, Procurement, Collections
and Disbursements. The oversight also extended to

57
JAMPRO Annual Report FY 2019-2020

Finance and Procurement

The Finance and Procurement Sub-Committee of iv. The Corporation’s Budget with approved
the Board (FPSC) supports the Board of Directors Estimates of Expenditure was optimized.
in the oversight of the Finance and Procurement v. The most strategic application of the
functions of the Corporation. The FPSC moni- Corporation’s Treasury and Cash Management
tors JAMPRO’s Fiduciary and Treasury functions, activities (especially funds held on Fixed
Budgeting, Optimization of Assets, Procurement, Deposits) were undertaken.
Cost Containment, Internal Control and Risk
Management. The FPSC also ensures that the One of the key areas of focus for the FPSC in 2019-
Corporation operates within established financial 2020 was the monitoring of the Agency’s transition
regulations. to energy efficient lighting and cooling systems.
The FPSC’s oversight of the procurement for this
During FY 2019-2020, the FPSC continued to moni- endeavour helped the Agency achieve cost sav-
tor JAMPRO’s expenditure to ensure that there was ings and ensure value for money from acquisitions.
alignment with the Corporation’s mandate of the The Committee also continued its drive to lead the
promotion of investment, exports and other facil- Agency to increase the use of locally produced
itations to achieve economic growth. The FPSC goods and services.
ensured that:
The active membership of the FPSC for FY
i. The Corporation’s financial system was ade- 2019-2020 was Metry Seaga (Chair), Lennox
quately monitored. Channer (Sub-Committee Member), Heather Lee
ii. The budget reports and any significant vari- (Sub-Committee Member) and Diane Edwards
ances were thoroughly reviewed and analysed. (President). Non-Voting Members included Wendy
iii. The procurement processes were in line with Lyttle Pryce (Vice President - Finance and Corporate
GOJ Procurement Policy and Procedures. Services) and Arlyn Gordon (Corporate Secretary).

58
 JAMPRO Annual Report FY 2019-2020
Human Resources
During the 2019-2020 fiscal year, the HR Sub-
Committee (HRSC) of the Board provided valuable
direction in the review of the succession process
and enabled the Agency to confidently pursue its
human resources medium and long-term develop-
ment goals.

The review of the Succession Plan focused on

executive and managerial positions and allowed
the HRSC to assess the readiness of each candi-
date in the talent pool to provide guidance on the
most appropriate approach for their development.
The Committee encouraged a more aggressive
approach to the development of candidates that The active voting members of the Human Resources
will more effectively strengthen areas identified for Sub-Committee for FY 2019-2020 were Lisa
improvement. The main recommendations from the Soares Lewis (Chairperson), Christopher Williams
HRSC were mentorship by the Board of Directors, (Director) and Gary Sadler (Director). Deborah
rotation in Divisions and, secondment to Private Newland (Director) resigned in June 2019. Non-
Sector companies. Voting members were Diane Edwards (President),
Wendy Lyttle Pryce (Vice President – Finance and
These measures will enhance the candidates’ skill Corporate Services), Jennifer Williams (Manager,
sets and provide an opportunity for exposure to the Human Resources Department) and Arlyn Gordon
post identified for succession. The Committee also (Corporate Secretary).
led the interview panel for the selection of the Vice
President for the Sales and Promotions Division,
the renewal of the President’s contract and two (2)
Executive Managers. JAMPRO made requests to
the Ministry of Finance and the Public Service for
an upgrade of several posts. The HRSC continues
to monitor the Ministry’s response.

59
 Board of Directors’
JAMPRO Annual Report FY 2019-2020

Compensation
Table
FY Board FY Sub-
Type of Length of Area of Meeting Committee Compensation
Name Position Director Service Expertise Attendance Attendance (J$)
Manufacturing,
Senator Don G. Independent 3 years, 11 Financial 7 of 8
Chairman - 148,000
Wehby, C.D. Non-Executive months Services and meetings
Agribusiness
Deputy Chairman
Chairperson, Independent
3 years, 11 7 of 8 4 of 4
Metry Seaga Finance & Non-Executive Manufacturing 121,500
months meetings meetings
Procurement
Sub-Committee
Director
3 of 5 (MPSC)
Chairperson, Audit
Business meetings
Sub-Committee, Independent 3 years, 11 7 of 8
Yoni Epstein Process 168,100
Member Marketing Non-Executive months meetings
Outsourcing 5 of 5 (ASC
and Projects
Meetings)
Sub-Committee
Director
Chairperson,
Independent 3 years, 11 Marketing and 8 of 8 5 of 5
Zachary Harding Marketing 154,500
Non-Executive months Finance meetings meetings
and Projects
Sub-Committee
Director
Chairperson, Independent 3 years, 11 Human 7 of 8
Lisa Soares Lewis 1 of 1 meeting 97,250
Human Resources Non-Executive months Resources meetings
Sub-Committee
Director
Financial
Christopher Member, Human Independent 3 years, 11 6 of 8
Services and 1 of 1 meeting 60,550
Williams Resources Non-Executive months meetings
Real Estate
Sub-Committee

60
 JAMPRO Annual Report FY 2019-2020
FY Board FY Sub-
Type of Length of Area of Meeting Committee Compensation
Name Position Director Service Expertise Attendance Attendance (J$)
Director
Member, Independent 3 years, 11 4 of 8
Gary Sadler, O.D. Tourism 1 of 1 meeting 49,550
Human Resources Non-Executive months meetings
Sub-Committee
Director Construction,
Ian K. Levy, O.D., Independent 3 years, 11 5 of 8 4 of 5
Member, Audit Real Estate 81,000
C.D. Non-Executive months meetings meetings
Sub-Committee and Gaming
Director
Independent
Member, Marketing 1 year, 11 4 of 8 2 of 5
Delano Seiveright Non-Executive Tourism 77,100
and Projects months meetings meetings
Director
Sub-Committee
Director
Member, Independent
Gillian Wilkinson 1 year, 11 Culture and 7 of 8 5 of 5
Marketing Non-Executive 110,300
McDaniel months Investment meetings meetings
and Projects Director
Sub-Committee
Director,
Independent
Member, 1 year, 11 3 of 8 3 of 5
Dr. Andre Gordon Non-Executive Agriculture 92,000
Audit months meetings meetings
Director
Sub-Committee.
Independent
Christian 2 of 4
Director Non-Executive 9 months Legal 22,000
Tavares-Finson meetings
Director

61
 Executive
JAMPRO Annual Report FY 2019-2020

Management Team
Compensation Table
Traveling
Allowance/ Other Health &
Gratuity & Assigned Allowances Group Life
Position of Basic Performance Motor Retirement & Payments Insurance
Senior Executive Year Salary ($) Incentive ($) Vehicle ($) Benefits ($) ($) ($) Total ($)

President 2019/2020 9,569,760 3,349,416 1,806,492 41,250 - 340,341 15,107,259

VP - Finance
& Corporate 2019/2020 6,913,959 2,765,584 1,019,177 41,250 1,380,677 276,845 12,397,492
Services

VP - Research
Advocacy
2019/2020 6,913,959 2,419,886 918,251 41,250 531,843 381,505 11,206,694
& Project
Implementation

VP - Sales and Apr.1, 2019

Promotion - Nov 8, 3,589,938 1,256,478 1,027,717 24,063 136,450 292,114 6,326,761
(Acting) 2019

Nov 11,
VP - Sales and
2019 - Mar 2,716,198 950,669 538,165 17,188 - 97,980 4,320,200
Promotion
31, 2020

VP – Marketing 2019/2020 6,246,546 2,186,291 1,011,712 41,250 - 369,949 9,855,748

TOTAL 35,950,360 12,928,324 6,321,514 206,250 2,048,971 1,758,735 59,214,153

62
Strategic Focus

JAMPRO Annual Report FY 2019-2020

FY 2020/2021
Though the Corporation embarked on the devel- • Drive the implementation of strategic projects
opment of a new four-year strategic business • Implement the Prime Account Management
plan (FY2020/2021-2023/2024); the advent of the Strategy
COVID-19 pandemic, will see the organisation piv- • Advance work to develop the Nation Brand
oting and adjusting its strategy, especially for year Strategy
one FY2020-2021. With foreign direct investment • Execute SME and sector development
pro- jected to decline by 30%-40% based on analy- programmes
sis from the United Nations Conference on Trade • Execute the Economic Diplomacy Programme
and Development, UNCTAD, the Corporation will • Continue the execution of the Global Services
have to be more focused and deliberate in making Sector Project
out business connections; while also being nimble • Implement the National Agriculture and
and agile enough to take advantage of emerging Manufacturing strategies;
opportunities. • Enhance corporate efficiency, client servicing
and staff development
Over the course of the FY 2020/2021 the Corporation
will seek to: JAMPRO will continue its thrust towards driving
• Engage in direct targeting of investors and investments and exports while working with other
buyers agencies to improve trade and investment struc-
• Increase web-based engagements: executing tures. The intensification of efforts in the areas
sector-based webinars, participating in and of marketing, forming strategic partnerships and
hosting online investment/export conferences improving business competitiveness will see the
• Advance the Business Reform Agenda towards organisation positively contributing to national
achieving top ten placement in the Doing development.
Business Report
• Advance the National Investment Policy and
National Business Portal

63
 Audited Financial
JAMPRO Annual Report FY 2019-2020

Statements
Commentary on Financial Statements
For the fiscal year ended March 31, 2020, JAMPRO
received Gross Operating Revenue of J$913.9 mil-
lion compared to the fiscal year ended March 31,
2019 in which J$914.2 million was received. This
reflected a decrease of 0.03% over the previous
year. During the fiscal year, JAMPRO received
J$855.3 million in Government Grants which rep-
resents 93.6% of Gross Operating Revenue.

Operating Expenses totalled J$876.6 million com-

prising Promotional of J$224.9 million, Staff Related
J$532.4 million and General & Administrative of
“For the fiscal
J$119.3 million. Total Operating Surplus for the year ended
year was J$40.3 million. When adjusted to reflect
the Defined Benefit Pension Plan of J$191.3 million,
March 31, 2020,
the Total Comprehensive Income for the year was JAMPRO received
J$231.6 million.
Gross Operating
Revenue of
J$913.9 million...”

64
JAMPRO Annual Report FY 2019-2020

65
66
JAMPRO Annual Report FY 2019-2020
JAMPRO Annual Report FY 2019-2020

67
JAMPRO Annual Report FY 2019-2020

Page 4
JAMAICA PROMOTIONS CORPORATION

STATEMENT OF FINANCIAL POSITION

AS AT 31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise indicated)

2020 2019
Notes $ $
CURRENT ASSETS
Cash and cash equivalents 3 112,732,734 20,134,997
Securities purchased under resale agreements 3 141,173,359 130,870,221
Trade and other receivables 4 23,440,607 45,896,799

277,346,700 196,902,017

CURRENT LIABILITIES
Trade and other payables 5 256,688,918 218,549,799
Grant received in advance 6 9,203,019 9,024,863
Deferred income 10 - 2,087,199

265,891,937 229,661,861

NET CURRENT ASSETS/(LIABILITIES) 11,454,763 (32,759,844)

NON- CURRENT ASSETS

Property & equipment 7 176,423,632 180,754,447
Employee benefit asset 8 403,770,000 212,066,000

580,193,632 392,820,447

591,648,395 360,060,603

FINANCED BY:
ACCUMULATED SURPLUS 394,018,709 162,430,917
CAPITAL RESERVES 9 197,629,686 197,629,686

591,648,395 360,060,603

The accompanying notes form an integral part of these financial statements.

The financial statements were approved by the Board of Directors on 14 July 2020 and signed on its behalf
by:

…..................................................... …..………………………………………
Don Wehby - Chairman Diane Edwards - President

68
 JAMPRO Annual Report FY 2019-2020
Page 5
JAMAICA PROMOTIONS CORPORATION

STATEMENT OF PROFIT OR LOSS AND OTHER COMPREHENSIVE INCOME

YEAR ENDED 31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise indicated)

2020 2019
Notes $ $

Gross operating revenue 11 913,943,184 914,218,535

Operating expenses:
Promotional 12(i) 224,898,524 273,651,982
Staff-related 12(ii) 532,378,703 505,202,411
General and administrative 12(iii) 119,278,448 125,651,528

876,555,675 904,505,921

Operating surplus for the year 37,387,509 9,712,614

Other income:
Interest income 1,168,833 1,660,052
Miscellaneous income 1,698,450 37,000

Surplus for the year 40,254,792 11,409,666

Other comprehensive income/(loss):

Items that will never be reclassified to profit or loss
Re-measurement gain/(loss) on defined benefit
plan 8(iv) 191,333,000 (90,763,000)

TOTAL COMPREHENSIVE INCOME/(LOSS) FOR

THE YEAR 231,587,792 (79,353,334)

The accompanying notes form an integral part of these financial statements.

69
JAMPRO Annual Report FY 2019-2020

Page 6
JAMAICA PROMOTIONS CORPORATION

STATEMENT OF CHANGES IN EQUITY

YEAR ENDED 31 MARCH 2020
(Expressed in Jamaica dollars unless otherwise indicated)

Accumulated Capital
surplus reserve Total
$ $ $

Balances at 1 April 2018 241,784,251 197,629,686 439,413,937

Surplus for the year 11,409,666 - 11,409,666

Other comprehensive loss:

Remeasurement loss on defined
benefit plan (90,763,000) - (90,763,000)

Total comprehensive loss for the year (79,353,334) - (79,353,334)

Balances at 31 March 2019 162,430,917 197,629,686 360,060,603

Surplus for the year 40,254,792 - 40,254,792

Other comprehensive income:

Remeasurement gain on defined
benefit plan 191,333,000 - 191,333,000

Total comprehensive income for the year 231,587,792 - 231,587,792

Balances at 31 March 2020 394,018,709 197,629,686 591,648,395

The accompanying notes form an integral part of these financial statements.

70
 JAMPRO Annual Report FY 2019-2020
Page 7
JAMAICA PROMOTIONS CORPORATION

STATEMENT OF CASH FLOWS

YEAR ENDED 31 MARCH 2020
(Expressed in Jamaica dollars unless otherwise indicated)

2020 2019
Notes $ $

CASH FLOWS FROM OPERATING ACTIVITIES

Surplus for the year 40,254,792 11,409,666
Adjustments for:
Depreciation 7, 12(iii) 18,857,819 19,763,702
Loss on disposal of fixed assets 12(iii) 2,227,511 -
Employee benefits 8(i) 339,000 (2,548,000)
Amortisation of deferred income 10, 11(iii) (2,087,199) (12,607,880)
Interest income (1,168,833) (1,660,052)

58,423,090 14,357,436

Decrease/(Increase) in a trade and other receivables 22,456,192 (24,528,836)

Increase/(Decrease) in trade and other payables and
grants received in advance 38,317,275 (2,552,664)
Employer portion- contributions paid 8 (i) (710,000) (670,000)

Net cash provided by/(used in) operating activities 118,486,557 (13,394,064)

CASH FLOWS FROM INVESTING ACTIVITIES

Acquisition of property & equipment 7 (16,754,515) (27,984,433)
Interest received 1,168,833 1,660,052
Securities purchased under resale
Agreements (net) (10,303,138) 3,743,398

Net cash used in investing activities (25,888,820) (22,580,983)

Net increase/(decrease) in cash and cash

equivalents 92,597,737 (35,975,047)
Cash and cash equivalents at beginning of year 20,134,997 56,110,044

CASH AND CASH EQUIVLENTS AT END OF

YEAR 3 112,732,734 20,134,997

The accompanying notes form an integral part of these financial statements.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

1. IDENTIFICATION AND PRINCIPAL ACTIVITY

Jamaica Promotions Corporation (the “Corporation”) was established on 26 April 1990 as a Statutory
Corporation under the Jamaica Promotions Corporation Act ("the Act") with the objectives of
stimulating, facilitating and promoting the development of trade and industry, export trade and
investment activities in all sectors of the Jamaican economy. The Corporation is incorporated and
domiciled in Jamaica with its registered office located at 18 Trafalgar Road, Kingston 10, Jamaica.

The Corporation is exempted from income tax, customs duty, stamp duties and transfer taxes
under the provision of the Jamaica Promotions Corporation Act 1990.

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES

(a) Statement of compliance:

The financial statements have been prepared in accordance with International Financial
Reporting Standards (‘IFRS’) as issued by the International Accounting Standards Board.

(b) Basis of preparation:

The financial statements are presented in Jamaica dollars and are prepared on the
historical cost basis.

New, revised and amended standards and interpretations that became effective
during the year

Certain new, revised and amended standards and interpretations which were in issue came
into effect for the current year. Although these new standards and amendments were applied
for the first time in 2020, except for the extent of additional disclosures, they did not have a
material impact on the annual financial statements of the Corporation. The pronouncements
were effective from 1 April 2019, unless otherwise indicated.

The following new, revised and amended standards and interpretations are mandatory for
the Corporation’s accounting period beginning on or after 1 April 2019:

New, revised and amended standards and interpretations that became effective
during the year but are not applicable to the Corporation

IFRS 10 and IAS 28 Sale or Contribution of Assets between an Investor and its
Associate or Joint Venture – Amendments to IFRS 10 and IAS 28

The amendments address the conflict between IFRS 10 Financial Statements and IAS 28
Investments in Associates and Joint Ventures in dealing with the loss of control of a
subsidiary that is sold or contributed to an associate or joint venture.

The amendments clarify that a full gain or loss is recognized when a transfer to an associate
or joint venture involves a business as defined in IFRS 3 Business Combinations. Any gain
or loss resulting from the sale or contribution of assets that does not constitute a business,
however, is recognised only to the extent of unrelated investors’ interests in the associate or
joint venture. This amendment did not have any impact on the financial statements of the
Corporation. This amendment is effective for annual periods beginning on or after 1 January
2019.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(b) Basis of preparation (Continued):

New, revised and amended standards and interpretations that became effective
during the year but are not applicable to the Corporation (continued)

IFRS 16 Leases

IFRS 16 supersedes IAS 17 Leases, IFRIC 4 Determining whether an Arrangement contains

a Lease, SIC-15 Operating Leases-Incentives and SIC-27 Evaluating the Substance of
Transactions Involving the Legal Form of a Lease. The standard sets out the principles for
the recognition, measurement, presentation and disclosure of leases and requires lessees
to recognise most leases on the statement of financial position.
Lessor accounting under IFRS 16 is substantially unchanged from IAS 17. Lessors will
continue to classify leases as either operating or finance leases using similar principles as in
IAS 17. Therefore, IFRS 16 did not have any significant impact for leases where the
Corporation is the lessor. The Corporation did not have any contracts in which they are the
lessee.
This standard is effective for annual periods beginning on or after 1 January 2019. This
standard is not applicable to the financial statements of the Corporation.

Amendments to IFRS 9 Prepayment Features with Negative Compensation

Under IFRS 9, a debt instrument can be measured at amortized cost or at fair value through
other comprehensive income, provided that the contractual cash flows are ‘solely payments
of principal and interest on the principal amount outstanding’ (the SPPI criterion) and the
instrument is held within the appropriate business model for that classification. The
amendments to IFRS 9 clarify that a financial asset passes the SPPI criterion regardless of
the event or circumstance that causes the early termination of the contract and irrespective
of which party pays or receives reasonable compensation for the early termination of the
contract. The basis for conclusions to the amendments clarified that the early termination
can result from a contractual term or from an event outside the control of the parties to the
contract, such as a change in law or regulation leading to the early termination of the
contract.

The amendments must be applied retrospectively; earlier application is permitted. The

amendment provides specific transition provisions if it is only applied in 2019 rather than in
2018 with the remainder of IFRS 9. The amendments are effective for annual periods
beginning on or after 1 January 2019. These amendments did not have any impact on the
Corporation’s financial statements.

Amendments to IAS 28 Long-term interests in associates and joint ventures

The amendments clarify that an entity applies IFRS 9 to long-term interests in an associate
or joint venture to which the equity method is not applied but that, in substance, form part of
the net investment in the associate or joint venture (long-term interests). This clarification is
relevant because it implies that the expected credit loss model in IFRS 9 applies to such
long-term interests.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(b) Basis of preparation (Continued):

New, revised and amended standards and interpretations that became effective
during the year but are not applicable to the Corporation (continued)

Amendments to IAS 28 Long-term interests in associates and joint ventures

(continued)

The amendments also clarified that, in applying IFRS 9, an entity does not take account of
any losses of the associate or joint venture, or any impairment losses on the net investment,
recognized as adjustments to the net investment in the associate or joint venture that arise
from applying IAS 28 “Investments in Associates and Joint Ventures”.

The amendments should be applied retrospectively and are effective from 1 January 2019,
with early application permitted. Since the Corporation does not have such long-term
interests in its associate and joint venture, this amendment did not have any impact on the
Corporation’s financial statements.

Amendments to IAS 19 Plan Amendment, Curtailment or Settlement

The amendments to IAS 19 address the accounting when a plan amendment, curtailment or
settlement occurs during a reporting period. The amendments specify that when a plan
amendment, curtailment or settlement occurs during the annual reporting period, an entity is
required to:

• Determine current service cost for the remainder of the period after the plan amendment,
curtailment or settlement, using the actuarial assumptions used to remeasure the net
defined benefit liability (asset) reflecting the benefits offered under the plan and the plan
assets after that event.
• Determine net interest for the remainder of the period after the plan amendment,
curtailment or settlement using: the net defined benefit liability (asset) reflecting the
benefits offered under the plan and the plan assets after that event; and the discount
rate used to remeasure that net defined benefit liability (asset).

The amendments also clarify that an entity first determines any past service cost, or a gain
or loss on settlement, without considering the effect of the asset ceiling. This amount is
recognized in profit or loss. An entity then determines the effect of the asset ceiling after the
plan amendment, curtailment or settlement. Any change in that effect, excluding amounts
included in the net interest, is recognized in other comprehensive income.

The amendments apply to plan amendments, curtailments, or settlements occurring on or

after the beginning of the first annual reporting period that begins on or after 1 January 2019,
with early application permitted. These amendments did not have any impact on the financial
statements.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(b) Basis of preparation (Continued):

New, revised and amended standards and interpretations that became effective
during the year but are not applicable to the Corporation (continued)

IFRIC Interpretation 23 Uncertainty over Income Tax Treatments

The interpretation addresses the accounting for income taxes when tax treatments involve
uncertainty that affects the application of IAS 12. The interpretation does not apply to taxes
or levies outside the scope of IAS 12, nor does it specifically include requirements relating
to interest and penalties associated with uncertain tax treatments.

The interpretation specifically addresses the following:

 Whether an entity considers uncertain tax treatments separately
 The assumptions an entity makes about the examination of tax treatments by taxation
authorities
 How an entity determines taxable profit (tax loss), tax bases, unused tax losses, unused
tax credits and tax rates
 How an entity considers changes in facts and circumstances

An entity has to determine whether to consider each uncertain tax treatment separately or
together with one or more other uncertain tax treatments. The approach that better predicts
the resolution of the uncertainty should be followed. The interpretation is effective for annual
reporting periods beginning on or after 1 January 2019, but certain transition reliefs are
available. The interpretation did not have any impact on the Corporation’s financial
statements.

Annual Improvements 2015-2017 Cycle

The amendments from the 2015-2017 annual improvements cycle are as follows:

 IFRS 3 Business Combinations (Previously held Interests in a joint operation) - (effective

1 January 2019)
 IFRS 11 Joint Arrangements (Previously held Interests in a joint operation) - (effective 1
January 2019)
 IAS 12 Income Taxes (Income tax consequences of payments on financial instruments
classified as equity) - (effective 1 January 2019)
 IAS 23 Borrowing Costs (Borrowing costs eligible for capitalization) - (effective 1 January
2019)

These amendments did not have any impact on the financial statements of the Corporation.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(b) Basis of preparation (Continued):

New standards, revised or amended standards that are not yet effective and have not
been early adopted by the Corporation

IFRS 3 Business Combination - Definition of a Business - Amendments to IFRS 3

The IASB issued amendments to the definition of a business in IFRS 3 Business

Combinations to help entities determine whether an acquired set of activities and assets is
a business or not. They clarify the minimum requirements for a business, remove the
assessment of whether market participants are capable of replacing any missing elements,
add guidance to help entities assess whether an acquired process is substantive, narrow the
definitions of a business and of outputs, and introduce an optional fair value concentration
test.

The amendments must be applied to transactions that are either business combinations or
asset acquisitions for which the acquisition date is on or after the beginning of the first annual
reporting period beginning on or after 1 January 2020 with earlier application permitted. The
amendments are not expected to have any impact on the financial statements of the
Corporation.

IFRS 17 Insurance Contracts

The standard establishes the principles for the recognition, measurement, presentation and
disclosure of insurance contracts issued. It also requires similar principles to be applied to
reinsurance contracts held and investment contracts with discretionary participation features
issued. The objective is to ensure that entities provide relevant information in a way that
faithfully represents those contracts. This information gives a basis for users of the financial
statements to assess the effect that contracts within the scope of IFRS 17 have on the
financial position, financial performance and cash flows of an entity.

IFRS 17 is effective for annual periods beginning on or after 1 January 2022. Earlier
application is permitted. This standard is not applicable to the Corporation.

IAS 1 and IAS 8 - Definition of Material - Amendments to IAS 1 and IAS 8

The IASB issued amendments to IAS 1 Presentation of Financial Statements and IAS 8
Accounting Policies, Changes in Accounting Estimates and Errors to align the definition of
‘material’ across the standards and to clarify certain aspects of the definition. The new
definition states that, ’Information is material if omitting, misstating or obscuring it could
reasonably be expected to influence decisions that the primary users of general purpose
financial statements make on the basis of those financial statements, which provide financial
information about a specific reporting entity.’

The amendments clarify that materiality will depend on the nature or magnitude of
information, or both. An entity will need to assess whether the information, either individually
or in combination with other information, is material in the context of the financial statements.
The amendments are effective for annual periods beginning on or after 1 January 2020 and
the impact of the adoption of this amendment on the financial statements of the Corporation
is being assessed.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(b) Basis of preparation (Continued):

New standards, revised or amended standards that are not yet effective and have not
been early adopted by the Corporation (continued)

Conceptual Framework for Financial Reporting

The revised Conceptual Framework for Financial Reporting (the Conceptual Framework) is
not a standard. Its purpose is to assist the IASB in developing standards, to help preparers
develop consistent accounting policies if there is no applicable standard in place and to
assist all parties to understand and interpret the standards.

Together with the revised Conceptual Framework, which became effective upon publication
on 29 March 2018, the IASB has also issued Amendments to References to the Conceptual
Framework in IFRS Standards. The document contains amendments to IFRS 2, IFRS 3,
IFRS 6, IFRS 14, IAS 1, IAS 8, IAS 34, IAS 37, IAS 38, IFRIC 12, IFRIC 19, IFRIC 20, IFRIC
22, and SIC-32. Not all amendments, however, update those pronouncements with regard
to references to and quotes from the framework so that they refer to the revised Conceptual
Framework. Some pronouncements are only updated to indicate which version of the
Framework they are referencing to (the IASC Framework adopted by the IASB in 2001, the
IASB Framework of 2010, or the new revised Framework of 2018) or to indicate that
definitions in the Standard have not been updated with the new definitions developed in the
revised Conceptual Framework.

For preparers who develop accounting policies based on the Conceptual Framework, it is
effective for annual periods beginning on or after 1 January 2020. The amendments are not
expected to have any impact on the financial statements of the Corporation.

Classification of Liabilities as Current or Non- current - Amendments to IAS 1

In January 2020, the Board issued amendments to paragraphs 69 to 76 of IAS 1 to specify

the requirements for classifying liabilities as current or non-current.

The amendments clarify:

• What is meant by a right to defer settlement
• That a right to defer must exist at the end of the reporting period
• That classification is unaffected by the likelihood that an entity will exercise its deferral
right
• That only if an embedded derivative in a convertible liability is itself an equity instrument
would the terms of a liability not impact its classification

Right to defer settlement

The Board decided that if an entity’s right to defer settlement of a liability is subject to the
entity complying with specified conditions, the entity has a right to defer settlement of the
liability at the end of the reporting period if it complies with those conditions at that date.

Existence at the end of the reporting period

The amendments also clarify that the requirement for the right to exist at the end of the
reporting period applies regardless of whether the lender tests for compliance at that date or
at a later date.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2 STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(b) Basis of preparation (Continued):

New standards, revised or amended standards that are not yet effective and have not
been early adopted by the Corporation (continued)

Classification of Liabilities as Current or Non- current - Amendments to IAS 1

(continued)

Management expectations
IAS 1.75A has been added to clarify that the ‘classification of a liability is unaffected by the
likelihood that the entity will exercise its right to defer settlement of the liability for at least
twelve months after the reporting period’. That is, management’s intention to settle in the
short run does not impact the classification. This applies even if settlement has occurred
when the financial statements are authorised for issuance.

Meaning of the term ‘settlement’

The Board added two new paragraphs (paragraphs 76A and 76B) to IAS 1 to clarify what is
meant by ‘settlement’ of a liability. The Board concluded that it was important to link the
settlement of the liability with the outflow of resources of the entity.

Settlement by way of an entity’s own equity instruments is considered settlement for the
purpose of classification of liabilities as current or non-current, with one exception.

In cases where a conversion option is classified as a liability or part of a liability, the transfer
of equity instruments would constitute settlement of the liability for the purpose of classifying
it as current or non-current. Only if the conversion option itself is classified as an equity
instrument would settlement by way of own equity instruments be disregarded when
determining whether the liability is current or non-current. Unchanged from the current
standard, a rollover of a borrowing is considered the extension of an existing liability and is
therefore not considered to represent ‘settlement’. The Corporation will assess the impact of
this amendment for adoption at the effective date.

(c) Estimates and judgements:

The preparation of the financial statements in conformity with IFRS requires management
to make estimates and assumptions that affect the reported amount of assets and liabilities
at the reporting date and the income and expenses for the year then ended. Actual amounts
could differ from these estimates.

The estimates and underlying assumptions are reviewed on an ongoing basis. A revision to
accounting estimate is recognised in the period in which the estimate is revised if the revision
affects only that period, or in the period of the revision and future periods if the revision
affects both current and future periods.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(c) Estimates and judgements (Continued):

Judgements made by management in the application of IFRS that have a significant effect
on the financial statements and estimate with a significant risk of material adjustment in the
next financial year are discussed below:

Pension and other post-employment benefits:

The amounts recognised in the statement of financial position, profit or loss and other
comprehensive income for pension and other post-employment benefits are determined
actuarially using several assumptions. The primary assumptions used in determining the
amounts recognised include expected long-term return on plan assets and the discount rate
used to determine the present value of estimated future cash flows required to settle the
pension.

The expected return on net plan assets considers the long-term historical returns, asset
allocation and future estimates of long-term investment returns. The discount rate is
determined based on the estimate of yields on long-term government securities that have
maturity dates approximating the terms of the Corporation's obligation, in the absence of
such instruments in Jamaica, it has been necessary to estimate the rate by extrapolating
from the longest-tenor security on the market. Any changes in these assumptions will affect
the amounts recorded in the financial statements for these obligations. (Note 8).

(d) Cash and cash equivalents:

Cash and cash equivalents comprise cash and bank balances including short term deposits
that have an original maturity of between one and three months.

(e) Securities purchased under resale agreements (resale agreements):

Securities purchased under resale agreements are short-term transactions in which the
Corporation makes funds available to other parties and in turn receives securities which it
agrees to resell on a specified date at a specified price. Resale agreements are accounted
for as short-term collateralised lending. The difference between the purchase and resale
price is treated as interest and accrued over the lives of the agreements.

(f) Trade and other receivables:

Trade and other receivables are measured at amortised cost, less impairment losses.
Interest is not recognized on these amounts as it is immaterial in amount.

(g) Trade and other payables and accrued charges:

Trade and other payables and accrued charges are measured at amortised cost. No interest
is charged on outstanding balances as these are settled within a twelve-month period.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2 STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(h) Property & equipment:

Property & equipment are measured at cost or deemed cost, less accumulated depreciation
and impairment losses. Cost includes expenditures that are directly attributable to the
acquisition of the assets. The cost of the day-to-day servicing of property & equipment is
recognised in profit or loss.

(i) Depreciation:

Property & equipment, with the exception of land, on which no depreciation is charged, are
depreciated on the straight-line basis at annual rates estimated to write off the cost of the
assets net of their residual values over their expected useful lives. The depreciation rates
are as follows:

Buildings 2½%
Furniture and equipment 10%
Computers 20%
Motor vehicles 20%

The depreciation methods, useful lives and residual values are reassessed at the reporting
date.

(j) Foreign currencies:

Functional and presentation currency

Items included in the financial statements are measured using the currency of the primary
economic environment in which the Corporation operates (‘the functional currency’). The
financial statements are presented in Jamaican dollars which is the Corporation’s functional
and presentation currency.

Transactions and balances

Transactions in foreign currencies are converted at the rates of exchange ruling at the dates
of those transactions. Monetary assets and liabilities denominated in foreign currencies at
the reporting date are translated to Jamaica dollars at the rates of exchange ruling on that
date. Gains and losses arising from fluctuations in exchange rates are recognised in profit
or loss.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(k) Employee benefits:

Employee benefits comprise all forms of consideration given by the Corporation in exchange
for service rendered by employees. These include current or short-term benefits such as
salaries, National Insurance Scheme contributions paid, annual unused vacation, and non-
monetary benefits, such as medical care; post-employment benefits, such as pension; other
long-term employee benefits such as long service awards; and termination benefits.

(i) General benefits:

Employee benefits that are earned as a result of past or current service are recognised
in the following manner: Short-term employee benefits are recognised as a liability, net
of payments made, and are expensed as the related service is provided.

The expected cost of vacation leave that accumulates is recognised when the
employee becomes entitled to the leave. Post-employment benefits are accounted for
as described in paragraph (ii) below. Other long-term benefits, including termination
benefits, which arise when either: (1) the employer decides to terminate an employee's
employment before the normal retirement date; or (2) an employee decides to accept
voluntary redundancy in exchange for termination benefits, are accrued as they are
earned and charged as an expense, unless not considered material, in which case they
are charged when the payment is made.

(ii) Defined benefit pension plan:

In respect of defined-benefit arrangements, employee benefits, comprising pensions

and other post-employment assets, and obligations included in the financial statements
are determined by a qualified independent actuary, appointed by management. The
appointed actuary's report outlines the scope of the valuation and the actuary's opinion.
The actuarial valuations are conducted in accordance with IAS 19, and the financial
statements reflect the Corporation's post- employment benefit assets and obligations
as computed by the actuary. In carrying out their audit, the auditors rely on the work of
the actuary and the actuary's report.

The Corporation's net obligation in respect of the defined-benefit pension plan is

calculated by estimating the amount of future benefit that employees have earned in
return for their service in the current and prior periods. That benefit is discounted to
determine its present value, and any unrecognised past service costs and the fair value
of plan assets are deducted. The discount rate is the yield at the reporting date on long-
term government securities that have maturity dates approximating the terms of the
Corporation's obligations. The calculation is performed by an independent qualified
actuary using the Projected Unit Credit Method. When the calculation results in a
benefit to the Corporation, the recognised asset is limited to the net total of any
unrecognised past service costs and the present value of any future refunds from the
plan or reductions in future contributions to the plan.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(k) Employee benefits (Continued):

(ii) Defined benefit pension plan (continued):

Remeasurements of the net defined benefit liability/(asset), which comprise actuarial

gains and losses, the return on plan assets (excluding interest) and the effect of the
asset ceiling (if any, excluding interest), are recognised immediately in Other
Comprehensive Income (OCl).

The Corporation determines the net interest expense/(income) on the net defined
benefit liability/(asset) for the period by applying the discount rate used to measure the
defined benefit obligation at the beginning of the annual period to the then-net defined
benefit liability/(asset), taking into account any changes in the net defined benefit
liability/(asset) during the period as a result of contributions and benefit payments. Net
interest expense and other expense related to defined benefit plans are recognised in
profit or loss.

When the benefits of a plan are changed or when the plan is curtailed, the resulting
change in benefit that relates to the past service or the gain or loss on curtailment is
recognised immediately in profit or loss. The Corporation recognises gains and losses
on the settlement of a defined benefit plan when the settlement occurs.

(l) Provisions:

A provision is recognised in the statement of financial position when the Corporation has a
legal or constructive obligation as a result of a past event, and it is probable that an outflow
of economic benefits will be required to settle the obligation. If the effect is material,
provisions are determined by discounting the expected future cash flows at a pre-tax rate
that reflects current market assessments of the time value of money and, where
appropriate, the risks specific to the obligation.

(m) Related parties:

A related party is a person or entity that is related to the entity that is preparing its financial
statements.

(a) A person or a close member of that person's family is related to a reporting entity if that
person:

(i) Has control or joint control over the reporting entity;

(ii) Has significant influence over the reporting entity; or
(iii) Is a member of the key management personnel of the reporting entity or of a
parent of the reporting entity.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(m) Related parties (Continued):

(b) An entity is related to a reporting entity if any of the following conditions applies:

(i) The entity and the reporting entity are members of the same group (which means
that each parent, subsidiary and fellow subsidiary is related to the others).

(ii) One entity is an associate or joint venture of the other entity (or an associate or
joint venture of a member of a group of which the other entity is a member).

(iii) Both entities are joint ventures of the same third party.

(iv) One entity is a joint venture of a third entity and the other entity is an associate
of the third entity.

(v) The entity is a post-employment benefit plan for the benefit of employees of either
the reporting entity or an entity related to the reporting entity. If the reporting entity
is itself such a plan, the sponsoring employers are also related to the reporting
entity.

(vi) The entity is controlled, or jointly controlled by a person identified in (a).

(vii) A person identified in (a)(i) has significant influence over the entity or is a member
of the key management personnel of the entity (or of a parent of the entity).

(viii) The entity or any member of a group of which it is a part, provides key
management services to the Corporation.
.
(ix) A related party transaction is a transfer of resources, services or obligations
between related parties, regardless of whether a price is charged.

(n) Financial instruments:

A financial instrument is any contract that gives rise to both a financial asset of one
enterprise and a financial liability or equity instrument of another enterprise. For the purpose
of these financial statements, financial assets have been determined to include cash and
cash equivalents, securities purchased under resale agreements and accounts receivable.
Similarly, financial liabilities include accounts payable.

The effective interest rate method is a method of calculating the amortised cost of a debt
instrument and of allocating interest income over the relevant period. The effective interest
rate is the rate that exactly discounts estimated future cash payments (including all fees and
points paid or received that form an integral part of the effective interest rate, transaction
costs and other premiums or discounts) through the expected life of the financial liability, or,
(where appropriate), a shorter period, to the net carrying amount on initial recognition.

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(n) Financial instruments (Continued):

Financial assets

Financial assets are classified, at initial recognition at fair value, and subsequently measured
at amortized cost. This classification depends on the financial assets contractual cash flow
characteristics and the Corporation’s business model of managing them. For a financial
asset to be classified and measured at amortized cost, it needs to give rise to cash flows
that are ‘solely payments of principal and interest (SPPI)’ on the principal amount
outstanding. This is referred to as the SPPI test and is performed at an instrument level.

The Corporation’s business model for managing financial assets refers to how it manages
its financial assets in order to generate cash flows. The business model determines whether
cash flows will result from collecting contractual cash flows, selling the financial assets, or
both.

Regular way purchases or sales are purchases or sales of financial assets that require
delivery of assets within the time frame established by regulation or convention in the
marketplace and are recognized on the trade date.

Financial assets are subsequently measured at amortized cost if both of the following
conditions are met:

- The financial asses is held within a business model with the objective to hold financial
assets in order to collect contractual cash flows, and
- The contractual terms of the financial assets give rise on specified dates to cash flows
that are solely payments of principal and interest on the principal amount outstanding.

Financial assets at amortized costs are subsequently measured using the effective interest
rate method and are subject to impairment. Gains or losses are recognized in profit or loss
when the asset is recognized or impaired.

(a) Impairment of financial assets

The Corporation assesses on a forward-looking basis the expected credit losses (ECL)
associated with its financial assets carried at amortized cost. ECLs are based on the
difference between the contractual cash flows due in accordance with the contract and
all the cash flows that the Corporation expects to receive, discounted at an
approximation of the original effective interest rate.

ECLs are recognized in two stages. For credit exposures for which there has not been
a significant increase in credit risk since initial recognition, ECLs are provided for credit
losses that result from default events that are possible within the next 12-months (a 12-
month ECL). For those credit exposures for which there has been a significant increase
in credit risk since initial recognition, a loss allowance is required for credit losses
expected over the remaining life of the exposure, irrespective of the timing of the default
(a lifetime ECL).

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(n) Financial instruments (Continued):

Financial assets (continued)

(a) Impairment of financial assets (continued)

For trade receivables, the Corporation applies a simplified approach in calculating ECLs.
Therefore, the Corporation does not track changes in credit risk, but instead recognizes
a loss allowance based on lifetime ECLs at each reporting date. The Corporation has
established a provision matrix that is based on its historical credit loss experience,
adjusted for forward-looking factors specific to the debtors and the economic
environment.

(b) Derecognition of financial assets

The Corporation derecognizes a financial asset when the contractual rights to the cash
flows from the asset expire, or when it transfers the financial asset and substantially all
the risks and rewards of ownership of the asset to another party. If the Corporation
neither transfers nor retains substantially all the risks and rewards of ownership and
continues to control the transferred asset, the Corporation recognizes its retained
interest in the asset and an associated liability for amounts it may have to pay. If the
Corporation retains substantially all the risks and rewards of ownership of a transferred
financial asset, the Corporation continues to recognize the financial asset.

Financial liabilities and equity instruments

Classification as debt or equity

Debt and equity instruments issued by the Corporation are classified as either financial
liabilities or as equity in accordance with the substance of the contractual arrangements and
the definitions of a financial liability and an equity instrument.

Equity instruments

An equity instrument is any contract that evidences a residual interest in the assets of an
entity after deducting all of its liabilities.

Financial liabilities

Financial liabilities of the Corporation are classified as other financial liabilities.

Other financial liabilities are initially measured at fair values net of transaction costs and
subsequently measured at amortised cost using the effective interest rate method.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(n) Financial instruments (Continued):

Financial liabilities and equity instruments (continued)

Income is recognised on an effective interest rate basis for debt instruments.

Derecognition of financial liabilities

The Corporation derecognises financial liability when the Corporation’s obligations are
discharged, cancelled or they expire. The difference between the carrying amount of the
financial liability derecognised and the consideration paid and payable is recognised in
surplus.

(o) Deferred income:

Where property & equipment are received as gifts from, or acquired out of funds granted by
donors, the amount of the grant, determined by the cash received or, in the case of gifts in
kind, the fair value of the asset received, is credited to deferred income.

An amount equivalent to the depreciation charged on the property & equipment in the
financial year is transferred from deferred income to profit or loss.

(p) Revenue recognition:

Government subventions are accounted for when received as revenue, in the profit and loss
in the period that matches the related expense.

Government and other grants received are deferred where the grant is represented by
property & equipment. Annual transfers, equivalent to depreciation charged on property &
equipment funded by a grant, are made from the deferred income account to the statement
of profit or loss and other comprehensive income [see Note 2(o)].

For grants received and ear-marked for use to carry out a particular project, these funds are
recorded as deferred income when received and are recognized as income in the profit or
loss, when the expenditure is incurred in the profit or loss for the same project.

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

2. STATEMENT OF COMPLIANCE, BASIS OF PREPARATION AND SIGNIFICANT ACCOUNTING

POLICIES (CONTINUED)

(p) Revenue recognition (Continued):

Finance income comprises interest receivable on surplus funds invested during the course
of routine treasury management and foreign exchange gains and losses recognised in profit
or loss. Interest income is recognised in profit or loss as it accrues, taking into account the
effective yield on the asset.

Rental income earned from the property owned by the Corporation, is recognised as
revenue in the profit or loss on a straight-line basis over the lease term.

(q) Determination of surplus:

Surplus is determined as the difference between the revenues from the services rendered
and the costs and other charges incurred during the year.

(r) Current versus non-current classification:

The Corporation presents assets and liabilities in the statement of financial position based
on current/non-current classification.

An asset is current when it is either:

 Expected to be realised or intended to be sold or consumed in the normal operating
cycle
 Held primarily for the purpose of trading
 Expected to be realised within 12 months after the reporting period
 Cash or cash equivalents unless restricted from being exchanged or used to settle a
liability for at least 12 months after the reporting period.

All other assets are classified as non-current.

A liability is current when either:

 It is expected to be settled in the normal operating cycle
 It is held primarily for the purpose of trading
 It is due to be settled within 12 months after the reporting period
 There is no unconditional right to defer the settlement of the liability for at least 12 months
after the reporting period.

(s) Fair value disclosures:

Fair value amounts represent estimates of the arm's length consideration that would be
currently agreed between knowledgeable, willing parties who are under no compulsion to
act and is best evidenced by a quoted market price, if one exists. Some financial instruments
lack an available trading market. These instruments have been valued using present value
or other valuation techniques and the fair value shown may not necessarily be indicative of
the amounts realisable in an immediate settlement of the instruments.

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

3. CASH AND CASH EQUIVALENTS AND SECURITIES PURCHASED UNDER RESALE

AGREEMENTS

(a)
2020 2019
$ $

Cash at bank 112,245,033 19,529,414

Cash on hand 487,701 605,583

112,732,734 20,134,997

Interest is earned on Euro dollar bank balances at an average rate of 0.004% per annum
(2019: 0.004%) and for United States dollar bank balances at an average rate of 0.01% per
annum (2019: 0.01%).

Bank balances held in United States dollars, Pound Sterling, Euro and Canadian dollars
respectively as at 31 March 2020 are as follows: US$98,310, £5,043 €2,765 and CAD$6,600
(2019: US$56,242, £11,844, €2,449 and CAD$15,555).
2020 2019
(b) $ $
Securities purchased under resale agreements – JMD 45,136,537 47,372,945
Securities purchased under resale agreements – USD 96,036,822 83,497,276
141,173,359 130,870,221

Interest is earned on Jamaica dollar deposit balances at an average rate of 3.50% per annum
(2019: 1.83%) and for United States dollar deposit balances at an average rate of 1.65% per
annum (2019: 1.22%).

Deposit balances held in United States dollars for the year ended 31 March 2020 amount to
US$724,656 (2019: US$675,689). These deposits will mature within one month after the year
end.

Underlying securities such as Government of Jamaica Bonds, Government of Bermuda Bonds,

Government of Aruba Bonds and certain Corporate Bonds are held as collateral for securities
purchased under resale agreement as at 31 March 2020 amounting to US$634,553 and
JM$57,563,689 (2019: US$675,689 and JM$47,373,130).

(c) Included in securities purchased under resale agreements are the following amounts that were
received in respect of specific projects:

(i) JM$27,346,867 (2019: JM$20,166,345) received for specified investment promotion

activities, for The Jamaica International Financial Services Authority (JIFSA), formerly
International Financial Services Centre Project (IFSC) [see Note 5 (i)]. This amount is
only to be used to carry out this project and is included as a part of the securities
purchased under resale agreements figure above.
(ii) JM$4,381,306 (2019: JM$4,381,306) received for specified investment promotion
activities [see Note 5(iii)]. This amount is only to be used to carry out this project
and is included as a part of the securities purchased under resale agreements figure
above.

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

3. CASH AND CASH EQUIVALENTS AND SECURITIES PURCHASED UNDER RESALE

AGREEMENTS (CONTINUED)

(c) Included in securities purchased under resale agreements are the following amounts that
were received in respect of specific projects (continued):

(iii) JM$9,203,019 (2019: JM$9,024,863) placed on deposit in the name of the

Corporation, which relates to amounts received which now sits under the Ministry of
Industry, Commerce Agriculture and Fisheries (MICAF) for aiding in the development
of cultural art (see Note 6). Movement in balance represents interest earned during
the year. This amount is only to be used to carry out this project and is included as a
part of the securities purchased under resale agreements figure above.

(iv) Nil (2019: JM$2,087,199) received from Sponsors (JACRA & JCEA) - with respect to
Sponsorship of the Coffee Specialty Trade Show during 11th - 14th April 2019 in the
USA. (see Note 10). For the financial year ended 31 March 2019, this amount is only
to be used to carry out this project and was included as a part of the cash at bank
figure above.

4. TRADE AND OTHER RECEIVABLES

2020 2019
$ $

Prepaid expenses 6,706,000 3,725,536

CART Fund (i) (transferred to Trade & Other Payables) - 15,032,189
Global Services Sector Project (GSSP) (ii) 5,890,375 20,100,102
Other receivables (iii) 10,844,232 7,038,972

23,440,607 45,896,799

(i) The Corporation advanced funds on behalf of the CART Fund for specified investment
promotion activities. This amount is reimbursed by the CART Fund for expenditure incurred on
behalf of the project. The balance for current year has now been transferred to Trade and Other
Payables as amount received from the Caribbean Development Bank (CDB) in excess of the
amount owed in the prior year by $1,195,374.

(ii) These represent amounts due from the Global Services Sector Project (GSSP), for advanced
payments made on behalf of the project as the Executing Agency for the Skills Development
for Global Services, funded by the IDB loan.

(iii) Included in Other Receivables is an amount of $667,225 (2019: $178,471) due from the
Government of Jamaica relating to Statutory deductions recoverable (Accountant General).

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

5. TRADE AND OTHER PAYABLES

2020 2019
$ $

Jamaica International Financial Services Authority (i) 27,346,867 20,166,345

Trade Payables 41,347,524 35,090,315
Export Max III Sponsorship (ii) 21,629,605 -
Garth Solutions Inc. 13,803,092 12,646,660
Clear Channel Airports 2,636,330 2,267,165
Business Environment Advisory Services - 819,000
Accrued Expenses (Others) 9,862,040 22,324,325
Advertising Services 812,345 -
Online-database Development & Deployment 1,523,147 -
Caribbean Infrastructure Forum 947,736 -
Maintenance amount Owing to Tenants 1,012,923 -
Process Mapping Services - 1,050,000
Staff Costs Payable 31,005,559 31,472,175
Incentives and Gratuities 70,488,323 61,502,872
CART Fund (see Note 4(i)) 1,195,374 -
General Consumption Tax Payable 27,017,437 25,355,209
Other Payables (iii) 6,060,616 5,855,733

256,688,918 218,549,799

(i) This represents unspent accumulated amounts in respect of funds received from the
Government of Jamaica and various sponsors to fund the Jamaica International Financial
Services Authority (JIFSA) project.

(ii) This represents balance remaining from sponsorship funds received to date to provide
capacity building and export promotion support to 50 participating companies.

(iii) Included in other payables is $4,381,306 (2019: $4,381,306) received in advance for
specific investment promotions activities [see Note 3(c)(ii)].

6. GRANTS RECEIVED IN ADVANCE

These are unspent balances in respect of funds received from the Ministry of Industry, Commerce &
Technology for aiding in the development of cultural art [see Note 3(c) (iii)].

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

7. PROPERTY & EQUIPMENT

Furniture
Equipment
Land and and Motor
Buildings Computers Vehicles Total
$ $ $ $
At cost or deemed cost:
1 April 2018 203,693,292 134,063,240 32,245,137 370,001,669
Additions 8,764,922 15,380,367 3,839,144 27,984,433

31 March 2019 212,458,214 149,443,607 36,084,281 397,986,102

Additions - 16,754,515 - 16,754,515
Disposals - (4,057,408) (2,299,000) (6,356,408)

31 March 2020 212,458,214 162,140,714 33,785,281 408,384,209

Depreciation:
1 April 2018 80,640,886 111,521,703 5,305,364 197,467,953
Charge for the year 5,020,862 8,605,134 6,137,706 19,763,702

31 March 2019 85,661,748 120,126,837 11,443,070 217,231,655

Charge for the year 5,239,985 7,134,532 6,483,302 18,857,819
Disposals - (1,829,897) (2,299,000) (4,128,897)

31 March 2020 90,901,733 125,431,472 15,627,372 231,960,577

Net book values:

31 March 2020 121,556,481 36,709,242 18,157,909 176,423,632

31 March 2019 126,796,466 29,316,770 24,641,211 180,754,447

8 EMPLOYEE BENEFIT ASSET

The Corporation operates a defined benefit pension plan for all permanent employees. The plan is
funded by employee contributions of 5% of pensionable earnings, and employer contributions as
recommended by independent actuaries. The plan allows all permanent employees to make
voluntary contributions of up to 10% of annual pensionable earnings Annual pension at retirement is
based on the average annual rate of pensionable earnings for the last three years prior to retirement.

The Board of Trustees of the pension fund is comprised of representatives selected by the employer
and members of the plan. The Board of Trustees of the pension fund is required by law to act in the
interest of the fund and all relevant stakeholders.

The Plan’s investment portfolio is managed by Sagicor Life Jamaica Limited and the fund
administrator is Employee Benefits Administrator Limited.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

8 EMPLOYEE BENEFIT ASSET (CONTINUED)

Amounts recognised in the financial statements in respect of post-employment employee benefits

comprise the following:

2020 2019
$ $
Pension asset:
Fair value of plan assets 1,959,089,000 2,096,448,000
Present value of defined benefit obligation (451,097,000) (339,408,000)

Net assets 1,507,992,000 1,757,040,000

Asset not recognised due to limitation
in economic benefits (1,104,222,000) (1,544,974,000)
Asset recognized in the statement of
financial position 403,770,000 212,066,000

Plan assets consist of the following:

% 2020 % 2019

Pooled Equity Fund 18 365,224,000 19 384,627,000

Pooled Fixed Income Fund 6 112,931,000 5 105,608,000
Pooled Foreign Currency Fund 5 102,085,000 5 99,881,000
580,240,000 590,116,000

Diversified Investment Fund 68 1,322,844,000 69 1,452,356,000

Ordinary shares 1 9,922,000 - 6,581,000
Purchased annuities 3 61,047,000 3 62,392,000
Net benefit adjustments (1) (14,964,000) (1) (14,997,000)

100 1,959,089,000 100 2,096,448,000

The expected contributions to the plan for the twelve months ending 31 March 2021 amount to
$10,650,000.

Weighted average duration of obligation is approximately 33 years in 2020 and 32 years in 2019.

(i) Movements in the net asset recognised in the statement of financial position:

2020 2019
$ $

Balance at beginning of year 212,066,000 299,611,000

Employer’s contributions 710,000 670,000
Change recognised in profit or loss (339,000) 2,548,000
Remeasurements gain/(loss) recognised
in OCI 191,333,000 (90,763,000)

Balance at end of year 403,770,000 212,066,000

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

8. EMPLOYEE BENEFIT ASSET (CONTINUED)

(ii) Movement in plan assets:

2020 2019
$ $

Fair value of plan assets as at 1 April 2,096,448,000 2,093,369,000

Contributions paid into the plan 9,928,000 9,217,000
Benefits paid by the plan (29,461,000) (16,663,000)
Interest income on plan assets 146,528,000 156,777,000
Value of annuities purchased - 1,315,000
Remeasurement - changes in financial
assumptions 2,035,000 2,012,000
Remeasurement - experience adjustments (266,389,000) (149,579,000)

Fair value of plan assets as at 31 March 1,959,089,000 2,096,448,000

Actual return on plan assets -6% 0%

(iii) Change recognised in profit or loss:

2020 2019
$ $

Current service costs 15,526,000 20,262,000

Interest on obligations 23,193,000 27,817,000
Expected return on plan assets (146,528,000) (156,777,000)
Interest on effect of the asset ceiling 108,148,000 106,150,000

339,000 (2,548,000)

(iv) Items in other comprehensive income:

2020 2019
$ $

Change in financial assumptions 32,158,000 37,745,000

Experience adjustments (223,491,000) 53,018,000

(191,333,000) 90,763,000

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

8. EMPLOYEE BENEFIT ASSET (CONTINUED)

v) Present value funded obligation:

2020 2019
$ $
Present value of funded obligation at 1 April 339,408,000 378,425,000
Current service cost 15,526,000 20,262,000
Interest cost on defined benefit obligation 23,193,000 27,817,000
Members’ contributions 9,218,000 8,547,000
Benefits paid (29,461,000) (16,663,000)
Value of annuities purchased - 1,315,000
Remeasurement-changes in assumptions 34,193,000 39,757,000
Remeasurement-experience adjustments 59,020,000 (120,052,000)
Present value of defined benefit obligation
at 31 March 451,097,000 339,408,000

(vi) Movement in effect of asset ceiling:

2020 2019
$ $
Effect of asset ceiling at 1 April 1,544,974,000 1,415,333,000
Interest on asset 108,148,000 106,150,000
Remeasurement effect (548,900,000) 23,491,000

Effect of asset ceiling at 31 March 1,104,222,000 1,544,974,000

(vii) Principal actuarial assumptions at the reporting date (expressed as weighted averages):

2020 2019
Discount rate 6.50% 7.00%
Pay growth 4.00% 3.00%
Pension increases 3.00% 3.00%
Administrative expenses (% of Salary) 2.00% 2.00%
Inflation 3.00% 3.00%
Minimum funding rate 0.25% 0.25%

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

8. EMPLOYEE BENEFIT ASSET (CONTINUED)

(viii) Sensitivity analysis:

The calculation of the projected obligation is sensitive to the assumptions used. The table
below summaries how the defined benefit obligation measured at the end of the reporting
period would have increased/decreased) as a result of a change in the assumptions by one
percentage point. In preparing the analysis for each assumption, all other were held
constant.

2020 2019
1% Increase 1% Decrease 1% Increase 1% Decrease
$ $ $ $
Discount rate (71,555,000) 97,674,000 (50,730,000) 65,240,000
Salary growth 43,317,000 (36,383,000) 27,938,000 (23,772,000)
Pension increase 51,453,000 (43,575,000) 36,024,000 (30,666,000)
Life expectancy 8,128,000 (8,196,000) 5,543,000 (5,589,000)

The five-year trend for the fair value of plan assets, the defined benefit obligation, the surplus
in the plan and experience adjustments for the plan asset and liabilities is as follows:

2020 2019 2018 2017 2016

$ $ $ $ $
Fair value of plan
assets 1,959,089,000 2,096,448,000 2,093,369,000 1,712,367,000 1,589,116,000
Assets not
recognised due to
limitation in
economic
benefits (1,104,222,000) (1,544,974,000) (1,415,333,000) (1,180,271,000) (1,086,410,000)
Defined benefit
obligations (451,097,000) (339,408,000) (378,425,000) (307,252,000) (297,395,000)
Surplus 403,770,000 212,066,000 299,611,000 224,844,000 205,311,000

Experience
adjustments -
Fair value of plan
assets (266,389,000) (149,579,000) 217,145,000 1,912,000 237,827,000
Defined benefit
obligations 59,020,000 (120,052,000) (108,465,000) 16,589,000 (18,083,000)

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

8. EMPLOYEE BENEFIT ASSET (CONTINUED)

Risks associated with pension plans and other employee benefit plans
Through its defined benefit pension plan, the Corporation is exposed to a number of risks, the most
significant of which are detailed below:

Asset volatility
The plan liabilities are calculated using a discount rate set with reference to Government of Jamaica
bond yields; if plan assets underperform this yield, this will create a deficit.

As the plan matures, the Corporation intends to reduce the level of investment risk by investing more
in assets that better match the liabilities. This process includes monitoring and rebalancing the asset
classes and the maturity profile of assets within these classes. The Government bonds largely
represent investments in Government of Jamaica securities.

However, the Corporation believes that due to the long-term nature of the plan liabilities, a level of
continuing equity investment is an appropriate element of the Corporation’s long-term strategy to
manage the plans efficiently.

Changes in bond yields

A decrease in Government of Jamaica bond yields will increase plan liabilities, although this will be
partially offset by an increase in the value of the plans’ bond holdings.

Inflation risk
Higher inflation will lead to higher liabilities in the event that discretionary pension increases are
granted. This risk is managed by the plan not having significant investment in fixed rate securities.

9. CAPITAL RESERVES

2020 2019
$ $
Gain on disposal of land and building 16,420,395 16,420,395
Surplus on disposal of real estate 80,215,145 80,215,145
Excess of the value of assets over liabilities
vested in the Corporation 1,675,556 1,675,556
Realised surplus on disposal of buildings 86,002,348 86,002,348
Realised surplus on disposal of equipment 591,000 591,000
Realised surplus on revaluation of furniture
& fixtures 9,656,146 9,656,146
Realised surplus on revaluation of computers 3,069,096 3,069,096

197,629,686 197,629,686

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

10. DEFERRED INCOME

2020 2019
$ $
Balance at beginning of the year 2,087,199 12,607,880
Addition - 2,087,199
Amortisation during the year (2,087,199) (12,607,880)

Balance at end of the year - 2,087,199

$2,087,199 was received by the Corporation in the previous year as Sponsorship towards the Coffee
Specialty Trade Show in Boston, Massachusetts USA held 11th - 14th April 2019, the amount was
recognised in the current financial year as revenue in the profit or loss.

11. GROSS OPERATING REVENUE

2020 2019
$ $
Government grants 855,314,841 819,169,119
Certification fees 2,156,114 2,384,169
Rental income 23,940,057 19,147,842
Sponsorship income 5,398,487 54,080,915
Other income 27,133,685 19,436,490

913,943,184 914,218,535

This represents gross income from government grants, certification fees and miscellaneous income.
During the financial year ended 31 March 2019, Sponsorship Income included gross amounts
received as contribution towards the Jamaica Investment Forum (JIF) 2018 held June 12 - 14, 2018
amounting to $52 million.

$2,087,199 was recognized as Deferred Income for the year ended 31 March 2019 (see Note 10)
and was recognized as Sponsorship Income in 2020. $12,607,880 was recognized as Deferred
Income in the year ended March 2018 (see Note 10) and was recognized as sponsorship income in
2019.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

12. DISCLOSURE OF EXPENSES

2020 2019
$ $
(i) Promotional
Advertising and Promotion (Others) (a) 99,051,961 36,197,235
Foreign and Local Travel and Subsistence 46,561,251 57,913,453
Professional Fees (Others) 13,622,141 24,133,162
In-Market Brokers Services 1,910,414 2,339,646
Euro In-market Study-Non-traditional Export (b) 9,297,456 -
ICT/BPO Industry Coordinator (c) 10,837,545 2,723,998
Website Design and Development - 4,791,575
Sales Training Programme - Value Selling
Associates Inc. 5,593,622 -
National Export Strategy Coordinator 1,500,000 2,000,000
Agri-Industry 5-year Strategic Plan Development - 1,616,912
National Business Portal 1,400,608 800,000
Export Max III 3,803,223 7,831,323
Film Lab Jamaica 2,990,000 1,372,156
JIFF 2018 Activities and Project Management ** - 60,391,087
Entertainment 10,352,631 10,252,066
Books, Publications and Subscription 7,898,150 14,955,485
Sponsorship (Tourism, Outsource, IQPC, Bauxite) - 19,606,063
Change Management Programme - 1,820,000
Booth Design & Décor Services - 11,686,260
Office 365 Licences 3,986,522 3,549,201
Euro Online Database Development &
Deployment 6,093,000 -
Digital Marketing Services - 1,771,321
Film Fund Consultancy - 324,069
Montego Bay BPO Fair - 1,591,509
Country Perception Survey Services - 3,391,246
Process Mapping Services - 2,594,215

224,898,524 273,651,982

**In prior year expenses were incurred to host the JIF 2018 which was held on June 12-14,
2018.

(a) Advertising and Promotion (Others) – this is inclusive of Exhibitions and Fairs held locally
and overseas with a total cost of $52,407,031.

(b) Euro In-market Study – Non-traditional Export consultancy to conduct a market study on
the current situation in the Food & Beverage Industry, identify market opportunities in
Canada, UK and USA and provide customized market and analysis research services and
underlying data.

(c) ICT/BPO Industry Coordinator – consultancy to promote the BPO industry in Jamaica,
provide a policy and incentive framework to expand the industry, facilitate the provision of
infrastructure development and enhance the labour market.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

12. DISCLOSURE OF EXPENSES (CONTINUED)

2020 2019
$ $
(ii) Staff-related
Salaries, statutory payments and gratuities 494,137,428 476,320,677
Staff benefits 22,463,244 20,402,103
Pension benefit, net (Note 8) 339,000 (2,548,000)
Unused vacation leave 12,399,514 7,696,270
Staff training 3,039,517 3,331,361

532,378,703 505,202,411
,

The average number of persons employed by the Corporation during the year was 94 (2019: 101).

2020 2019
$ $
(iii) General and administrative

Utilities 26,102,794 27,250,241

General Consumption Tax expense 15,427,748 16,460,877
Depreciation, net of allocation to tenants 18,857,819 19,763,702
Repairs and maintenance (a) 19,370,107 14,617,707
Office supplies and other operating expenses 10,883,641 10,035,254
Other expenses 1,921,554 3,957,422
Foreign exchange (gains)/losses (3,503,057) 4,075,743
Insurance 4,815,587 4,174,031
Security 2,846,190 2,897,837
Motor vehicle and travelling 3,371,725 3,053,399
Office rental 6,006,893 5,844,985
Professional fees 3,541,195 1,617,522
Stationery 1,959,905 2,134,877
Audit fees 2,249,000 1,952,000
Bank charges 1,940,186 2,085,124
Directors' fees 1,259,650 934,400
General consumption tax recoverable
Written-off - 4,796,407
Loss on fixed assets disposal 2,227,511 -
119,278,448 125,651,528

Total expenses 876,555,675 904,505,921

(a) Repairs and maintenance of $19,370,107 (2019: $14,617,707) – increase over previous
year is due to unscheduled repairs and maintenance to central air conditioning unit
costing $6,107,637. The defective parts (a/c coils) were replaced at year end.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

13. RELATED PARTY BALANCES AND TRANSACTIONS

(i) The statement of financial position includes balances arising in the ordinary course of
business with related parties as follows:
2020 2019
$ $
Trade and other receivables:
Government of Jamaica 667,225 178,471

Trade and other payables:

Government of Jamaica 27,017,437 25,355,209

(ii) Transactions with related parties are disclosed in the relevant notes to the financial
statements.
2020 2019
$ $
Compensation of key management
Personnel 55,620,792 51,655,769

14. FINANCIAL RISK MANAGEMENT

The Corporation has exposure to credit risk, liquidity risk and market risk from its use of financial
instruments. This note presents information about the Corporation's exposure to each of the above
risks, the Corporation's objectives, policies and processes for measuring and managing risk. Further
quantitative disclosures are included throughout these financial statements.

The Board of Directors has overall responsibility for the establishment and oversight of the
Corporation's risk management framework. The Corporation, through its training and management
standards and procedures, aims to develop a disciplined and constructive control environment in
which all employees understand their roles and obligations.

(i) Credit risk:

Credit risk is the risk of financial loss to the Corporation if a customer or counterparty to a
financial instrument fails to meet its contractual obligations, and arises principally from the
Corporation's other receivables, cash and cash equivalents and securities purchased under
agreements to resell.

The maximum exposure to credit risk at the reporting date is represented by the carrying value
of its financial assets in the statement of financial position.

2020 2019
$ $
Trade and other receivables 16,734,607 42,171,263
Cash and cash equivalents 112,245,033 19,529,414
Securities purchased under resale agreements 141,173,359 130,870,221
270,152,999 192,570,898

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(i) Credit risk (Continued):

Trade and other receivables

Management establishes an allowance for impairment that represents its estimate of losses in
respect of other receivables. Management's policy is to provide for balances based on past
default experience, current economic conditions and expected recovery.

Cash and cash equivalents and securities purchased under agreements to resell

These are placed with substantial financial institutions for short-term periods and management
believes these institutions have minimal risk of default.

There were no financial assets that are considered past due but not impaired. There was no
impairment of financial assets for the current or the prior year.

The Corporation’s financial assets subject to the expected credit loss model within IFRS 9 are
cash and other receivables. Based on Management’s assessment the impact of the
impairment was considered immaterial. There is no concentration of credit risk within these
assets. None of these assets are considered impaired and no amounts have been written off
in the period.

These financial assets are expected to be received in three months or less. An amount is
considered to be in default if it has not been received 30 days after it is due.

(ii) Liquidity risk:

Liquidity risk is the risk that the Corporation will not be able to meet its financial obligations as
they fall due. The Corporation's approach to managing liquidity is to ensure, as far as possible,
that it always has sufficient liquid assets to meet its liabilities when due, under both normal and
stressed conditions, without incurring unacceptable losses or risking damage to the
Corporation's reputation.

The Corporation manages this risk by maintaining an adequate level of liquid funds and relies
on the Government of Jamaica for financial support, if needed.

The contractual outflows as at 31 March 2020 and 2019, for trade payable, JIFSA, staff costs
payable and gratuity (excluding amounts received in advance) are represented by their
statement of financial position carrying amount and require settlement within 12 months at the
reporting date amounting to $126,061,051 (2019: $116,379,283).

(iii) Market risk:

Market risk is the risk that changes in market prices, such as foreign exchange and interest
rates, will affect the Corporation's income or the value of its holdings of financial instruments.
The objective of market risk management is to manage market risk exposures within
acceptable parameters while optimising the return on risk.

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JAMAICA PROMOTIONS CORPORATION

NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(iii) Market risk (Continued):

(a) Foreign currency risk:

The Corporation's exposure to foreign currency risk is as follows:

2020 2019
US$ £ € CAD$ US$ £ € CAD$

Cash and cash equivalents 98,310 5,043 2,765 6,600 56,242 11,844 2,449 15,555
Securities purchases under
resale agreements 724,656 - - - 675,689 - - -
Trade and other receivables 15,701 - - - 63,000 - - -
Trade and other payables (147,850) (13,449) - (438) (170,274) (39,928) - (5,768)
Net exposure 690,817 (8,406) 2,765 6,162 624,657 (28,084) 2,449 9,787

Exchange rates, in terms of Jamaica dollars, were as follows:

US$ £ € CAD$
31 March 2020 132.53 161.86 141.60 92.22

31 March 2019 123.57 163.58 134.41 90.08

Sensitivity analysis
A 3% (2019: 6%) strengthening of the Jamaica dollar against the United States dollar,
Pound Sterling, Euro and Canadian dollar against the Jamaica dollar at 31 March,
would have decrease surplus for the year by $2,734,595 (2019: $4,428,340).

A 7% (2019: 10%) weakening of the Jamaica dollar against the United States dollar,
Pound Sterling, Euro and Canadian dollar against the Jamaica dollar at March 31,
would have increased surplus for the year by $6,380,722 (2019: $7,380,567). This
analysis assumes that all other variables, in particular interest rates, remain constant.

(b) Interest rate risk:

Interest rate risk is the risk that the value of a financial instrument will fluctuate due to
changes in market interest rates.

Financial assets which are subject to fixed interest are as follows:

2020 2019
$ $
Financial assets:
Cash and cash equivalents 9,701,058 4,119,046
Securities purchased under resale
agreements 141,173,359 130,870,221

150,874,417 134,989,267

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

14. FINANCIAL RISK MANAGEMENT (CONTINUED)

(iii) Market risk (Continued):

(b) Interest rate risk continued:

The Corporation does not account for any financial instruments at fair value due to
their short-term nature, therefore a change in interest rates, at the reporting date,
would not affect the carrying value of the Corporation's financial instruments. Likewise,
all the Corporation's financial instruments are at fixed rates, therefore a change in
interest rates would not affect its cash flows.

This analysis assumes that all other variables, in particular foreign currency rates,
remain constant. The analysis is done on the same basis as in 2019.

(iv) Capital management:

For the purpose of the Corporation’s capital management, capital includes accumulated
surplus and capital reserves. The Corporation’s objectives when managing capital are to
safeguard the Corporation’s ability to continue as a going concern to enable the Corporation
to continue to carry out its mandate as defined by the Government of Jamaica of stimulating,
facilitating and promoting the development of trade and industry, export trade and investment
activities in all sectors of the Jamaican economy. No changes were made in the objectives,
policies or processes for managing capital during the years ended 31 March 2020 and 2019.

(v) Fair values:

Fair value is the price that would be received to sell an asset or paid to transfer a liability in
an orderly transaction between market participants at the measurement date. Where quoted
market prices are not available, the fair values of these instruments have been determined
using a generally accepted alternative method.

The following methods and assumptions were used to estimate the fair value of each class
of financial instrument for which it is practicable to estimate the value.

Financial Instruments Method

Cash equivalents, resale agreements, Assumed to approximate their

trade and other receivables and accounts carrying values, due to their
payables short-term nature

There are no financial instruments that are carried to fair value in the financial statements.

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NOTES TO THE FINANCIAL STATEMENTS

31 MARCH 2020
(Expressed in Jamaican dollars unless otherwise stated)

15. SUBSEQUENT EVENTS

On 30 January 2020, the World Health Organization declared the outbreak of a novel strain of
Coronavirus (COVID 19), which constituted a ‘Public Health Emergency of International
Concern’. This global outbreak, and the response of governments worldwide to it, has disrupted
supply chains and activities across a range of industries. The extent of the impact of COVID 19 on
the Corporation’s operational and financial performance will depend on certain developments,
including the duration and spread of the outbreak, impact on the local economy and the
Government’s fiscal results, customers, employees and vendors/suppliers, all of which are
uncertain.

The related financial impact and duration of this matter cannot be reasonably estimated at this time.

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JAMPRO Annual Report
FY 2019-2020
Head Office Western Jamaica Office
18 Trafalger Road, Kingston 10, Jamaica W.I. Montego Bay Convention Centre,
Rose Hall, Montego Bay
Phone Fax St. James, Jamaica W.I.
+1 (876) 978 7755 +1 (876) 946 0090 Phone
+1 (876) 987 3337 +1 (876) 952 3420
Email
Toll Free (Jamaica) info@jamprocorp.com Fax
+1 888 INVESTJA (468.3785) +1 (876) 952 1384
Website
Toll Free (Overseas) www.dobusinessjamaica.com Email
+1 877 JAMVEST (526.8378) jampromobay@jamprocorp.com

North American Regional Office North American Regional Office European Regional Office
(New York Regional) (Canada) 1 Prince Consort Road,
767 3rd Avenue, 2nd Floor 303 Eglinton Avenue East, 2nd London SW7 2BZ, England
New York, NY 10017, USA Floor, Toronto, Ontario, 4P 1L3, Phone
Phone Canada +44 207 584 8894
+1 (646) 862 3396 Phone Fax
+1 (646) 508 8969 +1 (416) 932 2200 +44 207 823 9886
Toll Free +1 (416) 598 3008
Email
+1 (877) 744 2208 Toll Free jamprouk@jamprocorp.com
Fax +1 (877) 744 2208
+1 (416) 932 2207 Fax
Email +1 (416) 932 2207
jampronewyork@jamprocorp.com Email
jamprocanada@jamprocorp.com