SMEs seek inclusion in NaRRA projects
Small and medium-sized enterprises (SMEs) are pushing to secure a meaningful stake in projects under the National Reconstruction and Resilience Authority (NaRRA) initiative, amid fears that smaller operators could be sidelined in the multibillion-dollar rebuilding programme.
At the forefront of this push is Garnett Reid, who said that while the lobby group fully supports the initiative, SMEs must be guaranteed access to contracts, financing and procurement opportunities.
“Everybody supports rebuilding. That is not the issue…the issue is whether small businesses will be participants or spectators,” Reid, president of the Small Business Association of Jamaica (SBAJ), said.
“I know there is a big debate in parliament, but we support it and we just want to ensure that small and medium-sized contractors get a piece of the pie when these projects begin. This is a trillion dollar venture, and oftentimes, the SME sector tends to be left behind in projects like these, as such we want to ensure that they will get a chance to participate and that’s all we’re saying as a body,” he further told the Jamaica Observer during an interview on Thursday.
NaRRA, which was recently tabled in the House of Representatives through enabling legislation, is intended to fast-track reconstruction efforts following national disasters by cutting through bureaucracy, accelerating approvals and coordinating large-scale recovery projects. The authority is also expected to oversee major real estate and infrastructure developments.
While supporting the urgency behind the initiative, Reid said the lack of clarity surrounding NaRRA’s expanding functions surrounding NaRRA’s expanding functions has created some unease among small contractors, suppliers and service providers who fear they could be left behind as billions of dollars begin flowing through reconstruction projects.
He said that while the SBAJ is not opposed to large firms leading major projects, the association wants SMEs to be included through subcontracting and procurement opportunities.
“They can contract some of our people to tile a courthouse, work on a hospital, and carry out other aspects of the projects,” Reid said, arguing that there are numerous areas in which smaller contractors can meaningfully contribute.
Projects under the authority are expected to be backed by a US$6.7-billion financing package from multilateral development banks, with funds directed mainly toward post-disaster recovery and infrastructure development projects.
Across the sector, he said questions are already being raised about how contracts will be awarded, what protections will exist for smaller operators, and how local firms will compete with larger companies that have greater financial capacity and faster mobilisation ability.
As the SBAJ moves to seek answers to a number of these concerns, Reid said the association plans to engage government officials shortly, Additionally, he said they will push for transparent procurement rules and for financing arrangements to be made accessible to SMEs as well as for the necessary mechanisms to be in place so as to ensure that small businesses can be integrated into projects from the outset.
“This is not just about fairness,” Reid argued. “It is about effectiveness. If you exclude small businesses, you slow down real recovery where it matters most — at the community level.”
Further making the case to have strong SME participation in projects, he said this will not only help to strengthen the local economy, but also ensure that more project earnings remain in Jamaica rather than flow overseas through multinational firms.
SMEs long regarded as critical drivers of economic growth, now account for approximately 90 per cent of jobs in Jamaica and contribute more than 40 per cent of the country’s gross domestic product.
Underscoring their importance to national development, Reid also warned that excluding these businesses from reconstruction projects could undermine broader economic recovery efforts, resulting in infrastructure being rebuilt without generating meaningful opportunities for ordinary Jamaicans.
“Reconstruction done right should expand opportunity, not concentrate it. If small businesses are fully integrated into this process, the recovery will be faster, more resilient and more broadly shared,” he said.