• Sagicor Select Funds Limited (SSFunds) has advised that it has filed an application with the Supreme Court of Jamaica on March 17, 2025 seeking an order to convene a meeting of shareholders of the Sagicor Financial Select Fund and the Sagicor Manufacturing and Distribution Select Fund (each “the Fund” and collectively, “the Funds”) to vote on the proposed conversion of the Funds into Unit Trusts pursuant to a court-approved scheme of arrangement.
• The filing of this application follows the Board of SSFunds’ decision on May 8, 2024, to pursue the conversion of the Funds into Unit Trusts registered with the Financial Services Commission (FSC) and governed by the Securities (Collective Investment Scheme) (CIS) Regulations, 2013 (CIS Regulations).
• The proposed conversion seeks to resolve the issue of the SSFunds’ shares consistently trading at a significant discount to their net asset values (NAV) on the Jamaica Stock Exchange (JSE). Simultaneously with the application to the Court, the Company will prepare an application to the Financial Services Commission (“FSC”) to register the two Unit Trusts.
• Should the Court approve the application to convene a meeting of shareholders of each Fund, and the requisite majority of shareholders in each Fund vote in favour of the Resolution to convert the Funds to Unit Trusts, a second Court hearing will be held seeking the sanction of the Court to approve the Scheme. Once the Court grants the Order approving the Scheme and that Order is filed with the Registrar of Companies the Scheme will become effective.
• As at March 19, 2025, Sagicor Select Funds: Manufacturing & Distribution and Financial closed at $0.45 and $0.89, respectively, 21.1% and 27.8% below their respective NAVs.

(Source: JSE)

• Local entrepreneurs are being encouraged to participate in and engage with brokers and buyers during the Outsource2Jamaica 2025 (O2J2025) Conference, slated for the Montego Bay Convention Centre in St. James on April 10.
• The annual event, to be held under the theme ‘Driving Excellence: Talent, Technology and Transformation’, is expected to showcase Jamaica’s immense potential as a hub for business process outsourcing (BPO), knowledge process outsourcing (KPO) and information technology-enabled services (ITES).
• Speaking during a recent Jamaica Information Service (JIS) ‘Think Tank’, Vice President for Business Process Outsourcing (BPO) and Logistics at the Port Authority of Jamaica, Gloria Henry, highlighted the growth opportunities available in the BPO and allied industries for both current participants and newcomers to the sector.
• Ms. Henry noted the positive outcomes resulting from buyers previously engaging with industry service providers in Jamaica and subsequently deciding to establish their centres.
• “We have been able over the years to generate over half a million US dollars per year out of some of these transactions, and close to half a billion dollars in investment has been, so far, outsourced to Jamaica,” she said.
• Ms. Henry acknowledged that “there are a number of entrepreneurs who are looking at the industry, seeing the opportunities and may be a little reluctant to get in”. Consequently, she said the conference “is an opportunity for them to engage with brokers and buyers”.

(Source: JIS)

• The Trump administration on Monday, March 17, 2025, quietly rescinded an order that had blocked a major Dominican sugar producer with political ties to President Trump from shipping sugar to the United States because of allegations of forced labour at the company.
• U.S. Customs and Border Protection modified a “withhold release order” that had been issued in 2022 for raw sugar and sugar products made by the Central Romana Corporation, blocking exports to the United States from the company. The Customs website now lists the order as “inactive.”
• Labour rights groups expressed frustration at the change, saying that Central Romana, whose sugar had been sold in the United States under the Domino brand, had not significantly improved its labour practices.
• A U.S. official, who declined to be named because the person was not authorized to speak publicly, said that the decision to rescind the rule and allow the company to begin exporting had not followed established processes. The official cited Central Romana’s powerful ownership and said that the decision was most likely made at the top levels of U.S. Customs and Border Protection.
• However, Hilton Beckham, an assistant commissioner of public affairs for Customs and Border Protection, confirmed that the order had been modified, saying that the decision followed “documented improvements to labour standards, verified by independent sources.” She declined to disclose those sources, citing confidentiality reasons.
• That said, the Ministry of Industry, Commerce, and MSMEs (MICM) in the Dominican Republic welcomed the decision, whilst the Ministry of Labor highlighted that this move reflects confidence in the Dominican Republic as a key trade partner.
• Minister Víctor Ito Bisonó emphasized that the decision enhances global confidence in the country and aligns with President Luis Abinader’s efforts to promote sustainable and competitive trade. He added that this progress bolsters the nation’s image and expands opportunities for Dominican exports.

(Sources: Dominican Today & The New York Times)

• U.S. President Donald Trump's administration is considering a plan to extend Chevron's, license to pump oil in Venezuela, the Wall Street Journal reported on Thursday, March 19, 2025, citing people familiar with the discussions.
• During a meeting on Wednesday with Chevron CEO Mike Wirth and other industry executives, Trump expressed openness to reversing his administration's recent order that gave the company until early April to wrap up its Venezuela operation, the Journal reported.
• That said, Washington is also weighing a plan to impose tariffs or other financial penalties on countries that buy oil from Venezuela, according to the WSJ report.
• These tariffs are intended to make it harder for China or other countries to establish a base in Venezuela and to fortify Chevron and keep oil flowing to the U.S., the Journal said. It could also force Venezuelan President Nicolas Maduro to the negotiating table, Commerce Secretary Howard Lutnick told Wirth in the meeting, which also included Energy Secretary Chris Wright and Interior Secretary Doug Burgum.
• Maduro and his government have always rejected sanctions by the United States and others, saying they are illegitimate measures that amount to an "economic war" designed to cripple Venezuela. He and his allies have cheered what they say is the country's resilience despite the measures, though they have historically blamed some economic hardships and shortages on sanctions.

(Source: Reuters)

• Slowing economic growth mixed with a bout of renewed inflation risks moving the U.S. from a global overachiever to a drag on the rest of the world as foreign central banks and others confront the spillovers from President Donald Trump's fast-moving effort to rewire international trade.
• With analysts in the U.S. noting the stagflationary direction of the U.S. outlook - weaker output and higher prices - central banks globally are parsing what the fallout may mean for them.
• When the Bank of England held its policy rate steady on Thursday it pointed specifically to Trump's tariff moves as clouding the global outlook. Similar warnings came from the Bank of Japan, which held its policy rate steady and signalled future moves could be shaped by how Trump's plan to blanket the world with new tariffs plays out in practice.
• European Central Bank President Christine Lagarde said on Thursday that U.S. tariff measures and likely European Union retaliation would be a blow to growth and tack perhaps half a percentage point onto inflation in the short-run at least. Swiss National Bank governing board member Petra Tschudin said as the SNB cut its policy rate that "developments abroad continue to represent the main risk" in an economic climate that "has become considerably more uncertain."
• Economists see a likely recession in Canada and Mexico, which depend mightily on exports to the U.S. and have been particularly targeted by Trump, while shifts in global currency and capital flows and U.S. foreign spending are already creating sets of winners and losers.
• Trump has said he will follow through next month on twice-delayed plans to impose 25% levies on goods from Mexico and Canada despite a regional trade agreement negotiated in his first term and announce a tariff "number" for other countries based on taxes they impose on U.S. goods.

(Source: Reuters)

• The Bank of England looks set to keep interest rates on hold on Thursday as it awaits the impact on the economy of U.S. President Donald Trump's trade tariff onslaught and of the British government's imminent tax hike for employers.
• With UK inflation stuck firmly above its 2.0% target, the BoE has cut borrowing costs by less than the European Central Bank and the U.S. Federal Reserve since last summer, contributing to the country's sluggish growth rate.
• When it trimmed its benchmark Bank Rate to 4.5% in February, the BoE stressed it would move gradually and carefully with further cuts given the uncertainties hanging over the economy.
• Since then, those uncertainties have only mounted in large part due to Trump gearing up to announce import tariffs for a host of trading partners of the United States on April 2, muddying the outlook for growth and inflation around the world.
• Also on the Monetary Policy Committee's radar is finance minister Rachel Reeves' budget update speech next Wednesday in which she is expected to announce cuts to public spending plans, a big component of Britain's economic growth outlook.
• Last month the BoE said it expected inflation to reach 3.7% later this year, up from January's 3%. Some economists say it will hit 4%, testing the BoE's assumption that there is little threat to longer-term price pressures through wage demands.

(Source: Reuters)

• Junior market production and media company Limners and Bards Limited (The Lab) reported a 17.6% profit decline for its first quarter of the 2025 Financial Year (Q1 2025) as higher expenses outshone revenue growth.
• Revenues grew by 30.4% to 286.13Mn, driven by contributions from its core segments: Media ($142.50Mn), Production ($101.00Mn), and Agency ($42.60Mn). However, the bulk of the revenue growth came from its lower-margin Production and media segment.
• Direct expenses outpaced revenue growth, rising 42.3% to $185.58Mn. This led to a 13.0% increase in gross profits – albeit at a lower gross margin of 35.1% relative to 40.6% in Q1 2024.
• Total operating expenses also increased by 12.9% to $78.74Mn, driven by selling and distribution costs (S&D: +11.1%) to 76.94Mn. The increase in S&D was influenced by higher staff costs (+9.2%) following strategic investments in talent – including a Chief Business Development Officer – and enhanced client service support to drive new business acquisitions and strengthen the execution of key initiatives. 
• The faster expense growth as well as a non-recurrence of impairment recoveries on financial assets totalling $6.02Mn in Q1 2024, resulted in a 9.8% decline in operating profits to $23.24Mn, with the operating margin falling from 11.7% to 8.1%. 
• While the Lab benefited from a four-fold increase in finance income to $1.96Mn, taxation expenses further pulled net profits down. Having listed in July 26, 2019, the company spent more than 5 years on the Junior Market, meaning its tax rate increased from 0% to 12.5%, effective July 31, 2024.
• This recent result reflects a broader earnings decline for the company with annual profits of $82.95Mn in FY2024, well below its $155.55Mn peak in FY21. To address the decline, The LAB is working to strengthen its position in the global content market by expanding its client base, securing industry recognition, and aligning its content strategy with the growing demand for diverse, high-quality storytelling, especially on major streaming platforms like Netflix.
• At market close on March 19, 2025, The Lab’s stock is down 5.5% year-to-date and trading at $1.20 per share. Its P/E of 14.10x is below the Junior Market Average of 35.97x.

(Source: JSE & NCBCM Research)

• Jamaica is making strides in meeting its target of generating 50% of its electricity from renewable sources by 2030. Minister of Science, Energy, Telecommunications and Transport, Hon. Daryl Vaz, highlighted the progress being made during a press conference at the Ministry’s office in Kingston on Tuesday, March 18, 2025.
• In October 2018, the Government stated its intention to have 50% or approximately 520 megawatts (MW) of renewable energy in the local energy mix by 2030. This is an increase from the previously declared 30 per cent target, which was announced in April 2017.
• To pursue the renewable energy target, the Government implemented legislation, enabling Jamaica Public Service (JPS) customers with renewable energy generators to sell excess capacity to JPS at wholesale prices. “The Electricity (Net Billing) Regulations, 2022 accelerated distributed renewable energy adoption, with 436 new renewable systems licensed, adding 8.5MW of new capacity,” Minister Vaz noted.
• He further cited the expansion of utility-scale renewable projects that are expected to come on stream soon, further bolstering the renewable energy push. “In November 2024, the Generation Procurement Entity (GPE) awarded 99.83MW of new solar capacity contract to Wigton Energy Limited and Sunterra Energy Jamaica Ltd., supporting the 50% renewable energy target by 2030. Both bidders have obtained their generation licences from the Ministry, and their implementation schedule completion is expected by 2027,” he informed. An additional 220MW of utility-scale renewables with storage will be competitively procured in 2025.
• These projects, along with the JPS’s replacement of 171.5MW of retiring fossil fuel units with renewables, will bring renewables electricity generation close to 48% when the projects are connected to the grid, Minister Vaz said.
• The country’s renewable energy capacity stood at 188 megawatts by December 2024, generating an estimated 481,432MW hours annually, accounting for 10% of the nation’s total electricity production. This is up from 2016 when renewable energy capacity represented seven per cent of total grid generation.
• Furthermore, in 2024, Jamaica moved up eight places in the Bloomberg NEA Climate Scope Report, ranking 10th in Latin America and the Caribbean for renewable energy investment attractiveness.
• Jamaica’s transition to adopting 50% renewables is being guided by the updated Integrated Resource Plan (IRP-2), which was approved by the Cabinet and published in 2024. The Plan prioritises wind, hydro and solar as primary energy sources, and battery energy storage systems (BESS) for grid stability, reliability and efficiency.

(Source: JIS)

• Real GDP growth in the Bahamas is expected to slow from an estimated 1.9% in 2024 to 1.7% in 2025 according to Fitch Solutions, with tourism sector and private consumption expected to be the primary drivers of the expansion. However, high government debt load necessitating fiscal consolidation, as well as solid consumer spending boosting import growth will prevent a faster pace of growth.
• Further, economic growth will hold steady at 1.7% in 2026, as capacity constraints in the tourism sector prevent the sector from more meaningfully driving faster headline real GDP growth.
• The robust tourism sector and steady improvements in living conditions will reduce the risk of social unrest in the Bahamas in 2025, as well as support the position of the incumbent Progressive Liberal Party.
• Aided by its large majority in parliament, the Progressive Liberal Party will be in a strong position to pass bills, implying limited governance risks as well as a good chance of winning the next election, due by September 2026.
• Nevertheless, significant risks remain. Most notably, the government will make limited progress in stamping out corruption and reducing very high levels of violent crime, implying security risks will remain highly elevated in the months ahead.
• Furthermore, the Bahamas remains sensitive to global geopolitical events, both given its reliance on external demand and its sensitivity to any unexpected rise in global commodity prices. An unexpected geopolitical shock could have the ability to push up inflation once again in the Bahamas, denting its economic performance.

(Source: Fitch Connect)

• Guyana President Irfaan Ali is exploring a partnership with Suriname to build a gas-powered industrial hub as he works to fortify his nation’s economy, which was rapidly transformed by oil fortunes in the past decade.
• The nation is seeking a partnership with Suriname for a prospective hub on the north coast of South America that would use natural gas from the countries’ offshore fields, he said in an interview. Ali said he aims “to build regional prosperity” by producing power, fertilizer and aluminium in the Berbice region in eastern Guyana. He spoke on the sidelines of the CERAWeek by S&P Global conference in Houston.
• Exxon Mobil Corp.’s oil discovery in 2015 has transformed Guyana’s economic fortunes, filling the government’s coffers with billions of dollars from oil exports. But it’s also left the nation’s outlook extremely intertwined with the whims of the crude market at a time when an expectant population is looking for a rapid uplift in living standards.
• Ali, who is up for re-election this year, wants to build “resilience” by investing heavily in non-oil sectors, such as agriculture, infrastructure, education and healthcare, he said. The hub would be critical for “energy and food security,” he said as the region seeks to grow its economy.
• “We’re hoping also to discuss with Suriname the integration of their gas into that facility,” Ali said. “That facility would be able to serve both Guyana and Suriname and create the economic spin-off and opportunities for both countries.”

(Source: Rigzone)