VIDEO: Loan fund for manufacturing sector announced in Dominica

The government of Dominica has announced that it will establish an EC$15 million loan facility to assist the country’s of the manufacturing sector.

The announcement was made by Prime Minister Roosevelt Skerrit earlier this month.

One company has dominated the sector for many years, Skerrit said, but now others should “begin making a more substantial contribution to manufacturing".

"To be eligible, the manufacturer should be engaged in manufacturing in Dominica and such eligibility will include new and existing manufacturers who are currently in active production. Start-ups will be channelled through the Invest Dominica Authority,” he said.

The prime minister – who is also the country minister of finance – stated that he hopes that the measure will yield substantial benefits to the manufacturers and to the economy as a whole.

"The terms of the special loan facility are: an interest rate of 3%, maturity of five to twelve years, and a grace period of up to twelve months for investments and three months for loans contracted for working capital,” he said.

Funds from the special loan facility can be accessed through the Dominica’s Agricultural Industrial and Development Bank.

The money can be used for unlending for working capital, expansion and/or improvement of manufacturing plants, construction of facilities, purchase of equipment and machinery, and updating systems.