World Bank Supports Jamaica’s Efforts to Promote Private Sector Development and Improve Disaster Preparedness

Washington, D.C, March 3, 2025 – The World Bank Group’s Board of Executive Directors approved a new project to support Jamaica in promoting private sector development and improving disaster preparedness. The US$ 192 million Sustainable and Resilient Recovery Development Policy Financing includes a special option which allows Jamaica to quickly access funds in the event of a disaster.

Jamaica has made substantial progress over the past decade, reducing its public debt-to-GDP ratio to a record low of 73.3 percent at the end of 2023-24, the lowest in the last 25 years. Despite this positive trajectory, the country faces ongoing challenges, including slow economic growth, high informal employment, and vulnerability to natural hazards. Recent events, including Hurricane Beryl in July 2024, have further highlighted Jamaica’s susceptibility to environmental hazards, which disproportionately affect the most vulnerable.

This new project, which supports reforms aimed at enhancing Jamaica’s business environment, boosting resilience, and strengthening disaster risk management, has two pillars. The first focuses on improving trade facilitation, digital technology adoption, and strengthening financial sector stability – all of which are critical enablers of resilient private sector-led growth and economic diversification. This includes the implementation of reforms such as streamlining customs procedures and improving digital trade capabilities, which are expected to create new opportunities for micro, small, and medium enterprises, increasing exports. Additionally, the project will also help implement robust data protection rules, enhanced service reliability and accountability in the telecommunications sector as well as decisive financial sector reforms which safeguard Jamaica’s economy.

The second pillar of the operation focuses on core measures to enhance Jamaica’s resilience. It supports the establishment of a National Natural Disaster Reserve Fund, alongside other tools, to provide vital resources for post-disaster recovery. This ensures swift government response to natural hazards such as hurricanes, floods, and droughts. The project also includes the development of updated building codes that increase design standards for disaster-prone areas and essential facilities like hospitals and emergency shelters, while households installing solar panels will be incentivized through amendments to the Income Tax Act.

“Bolstering growth prospects, building resilience against natural hazards, and protecting the most vulnerable – measures supported by this financing – are key priorities for Jamaica,” said Lilia Burunciuc, World Bank Country Director for the Caribbean. “They are also essential steps to allow the country to attract more foreign investment, boost private sector growth to create jobs and improve the quality of life of its people.”

The project is financed by the International Bank for Reconstruction and Development, the arm of the World Bank that provides financial assistance and policy advice to middle-income countries and creditworthy poorer countries, supporting development projects that aim to reduce poverty and foster sustainable growth. Of the total sum, $150 million is provided as budget support and $42 million is allotted to the Catastrophe Deferred Drawdown Option. Technical assistance to support implementation of disaster risk management reforms under the second pillar will be financed by a grant from the European Union Resilient Caribbean (EUReCa) Program.

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