BASSETERRE, St. Kitts - THE local manufacturing sector has taken some hits since the manifestation of the global economic and financial crisis, but it’s potential to provide a better socioeconomic life of the people of the Federation has been recognised and the government has reaffirmed its commitment to the progression of the sector.
Minister of Industry and Commerce the Honourable Dr. Timothy Harris – guest speaker at the May 31 Quarterly Luncheon of the Manufacturing Division of the St. Kitts Nevis Chamber of Industry and Commerce (CIC) – outlined some of the challenges the sector had faced over the past number of years.
Chief of them – he explained – is the rising cost of energy, predominantly electricity. He also spoke to issues of robust global competition, increasing cost of port charges, freight and related services and cost and access finance.
Regarding the latter however, Dr. Harris informed that his Ministry has successfully negotiated for the granting of a $3M loan to assist small and medium businesses in securing funding.
“I am happy to report that we have negotiated to secure a loan in the amount of USD$3 million for on-lending to Small and Medium Sized Enterprises (SMEs) including those in the manufacturing sector. These resources are to provide financial and technical support for enhanced competitiveness and export. These funds will be accessed from the CARTFund.”
Dr. Harris said plans are also afoot to address the energy cost issue.
“We have some good news. We have grant financing in the amount of USD$420 000 to conduct an energy audit specifically for the Manufacturing Sector. In addition, the grant in the amount of USD$22 700 will be allocated for market research and survey of the feasibility of supplying agro products to neighbouring islands.”
The Industry and Commerce Minister said the government of St. Christopher and Nevis has undertaken the recently-signed Partial Scope Agreement, partly as one of the means of negating the challenges faced by the manufacturing sector. He said the expected fruits of that agreement include increases in trade and employment.
Dr. Harris underscored the government’s commitment to the “advancement of the Manufacturing Sector” and forwarded suggestions which members of the sector could employ in propelling the sector forward.
He said manufacturers must “adapt to changing realities, always looking for better and improved ways of doing things that add to customer and shareholder value”. He noted that these include “the exploration of alternative energy sources” and “the development of technical curriculum in the local educations system that is aligned with the needs of the sector”.
Minister Harris promised that the government would continue to collaborate with the Manufacturing Sector “with a view to establishing a strategic plan for the long-term development of the sector”.
