Driving the Regional Agenda Forward: A Strategic Framework from the JSE Guyana Conference 2024

The JSE Guyana Conference 2024, themed "Financing for Success: Where Passion, Prosperity, and People Align", is set to be a pivotal event in the Caribbean's journey toward regional financial integration. By convening leaders from across government, financial institutions, and the private sector, this conference aims to address the region's most pressing financial issues, including capital mobilization, investment opportunities, and economic sustainability. The conference sets the stage for aligning key stakeholders, making it a catalyst for driving the Caribbean toward a more unified and prosperous financial landscape.

Framing the Conference: How It Shapes the Regional Agenda

The Caribbean has long recognized the need for a regional stock exchange, but the path forward has been fraught with challenges. As the region continues to navigate fragmented markets, regulatory disparities, and economic vulnerabilities, the JSE Guyana Conference 2024 emerges as a vital platform to bring together the right voices to develop actionable strategies. Here’s how the conference will address the critical challenges and opportunities:

Main issues to be Addressed by the Conference

1. Access to Capital for Business Expansion

Capital accessibility is a major challenge for businesses—particularly SMEs—across the Caribbean. The region's fragmented markets often leave businesses with limited avenues for raising capital, preventing them from scaling across borders. The conference will address this issue in sessions like "Broker Dealers: The Conduit for Businesses to Access Capital," featuring Angus Young, CEO of NCB Capital Markets Limited. Young will explore how brokers can help businesses overcome these barriers, facilitating cross-border capital flows and driving economic growth across the region.

2. Regional Economic Diversification

The Caribbean’s reliance on sectors like tourism has made it vulnerable to external shocks such as the COVID-19 pandemic. As part of the solution, Hon. Vickram Bharrat, Guyana’s Minister of Natural Resources, will lead the session "Democratizing the Benefits of the Country’s Natural Resources," where he will emphasize the role of natural resources—particularly oil and gas—in creating new investment avenues and diversifying the region’s economic base.

3. Lack of Unified Regulatory Frameworks

The lack of regulatory alignment across the Caribbean continues to be a significant barrier to the creation of a unified regional stock exchange. Leaders from the Eastern Caribbean Securities Exchange (ECSE), Barbados Stock Exchange, and Jamaica Stock Exchange will come together in a critical panel titled "Mobilizing Capital to Businesses, Fast-Tracking Growth." Moderated by Trevor Blake, Managing Director of the ECSE, the discussion will focus on how to align regulatory policies and streamline processes to enable seamless cross-border trading.

Opportunities to Advance Regional Integration

1. Mobilizing Capital for Growth and Innovation

The establishment of a regional stock exchange has the potential to unlock significant capital pools for businesses and investors. Sessions like "The Role of Brokers and Deal Makers in Raising Capital" will examine how investment professionals can help connect businesses to domestic and international capital markets. By providing the financial backing needed, the exchange will drive innovation and business expansion.

2. Expanding Investment in Emerging Sectors

With emerging sectors such as natural resources and renewable energy presenting new opportunities, the Caribbean is well-positioned to broaden its investment scope. Key discussions, led by Ms. Stacy-Ann Tait and Mr. Dean Bellissimo, will focus on alternative investments and expanding access to capital, beyond traditional sectors like tourism. The Guyana oil boom is a prime example of this, as the country becomes an investment hotspot for regional and international investors.

3. Creating a Framework for Sustainable Wealth Creation

Sustainability is a key focus of this conference. Kester Hutson and Cecil Foster will explore the private sector’s role in promoting sustainable wealth creation in their session "The Private Sector’s Role in Promoting Sustainable Wealth Creation." These discussions will show how businesses can contribute to long-term economic stability by facilitating capital formation and investment education, aligning with the region's goals of inclusive growth.

Framework for Policy and Regulatory Alignment

The JSE Guyana Conference provides an opportunity to establish a robust policy and regulatory framework for a regional stock exchange. Key speakers will outline a blueprint for success:

• Standardizing Regulations: Dr. Marlene Street Forrest, Managing Director of the Jamaica Stock Exchange, will emphasize the need to harmonize securities laws and capital market regulations across the region. This standardization will be crucial in reducing barriers to cross-border investments and creating a unified investment environment.
• Establishing a Unified Digital Platform: To improve liquidity and facilitate real-time trading, the conference will highlight the need for a centralized digital platform. Jamaica’s success with its online trading platform serves as a model for engaging investors, a solution that could be expanded regionally.
• Facilitating Currency Convertibility: Without efficient currency convertibility, cross-border transactions remain risky. The establishment of a regional currency exchange mechanism will be necessary to reduce the risks associated with currency volatility, ensuring seamless capital movement.

Myth: The Caribbean’s Small Economies Cannot Support a Regional Stock Exchange

A common misconception is that the Caribbean’s small economies lack the market size to support a regional stock exchange. However, this idea has been debunked time and again by the Jamaica Stock Exchange (JSE), which has been ranked as one of the world’s top-performing exchanges. A unified regional exchange would significantly enhance liquidity, foster cross-border investments, and create a more attractive platform for global investors.

Trend: Leveraging Natural Resources for Regional Growth

With a global shift towards natural resources and renewable energy, the Caribbean is uniquely positioned to capitalize on its oil, gas, and solar potential. Mr. Dereck Rajack, CEO of CariCRIS, will discuss how regional financial institutions can ensure financial products and services are properly rated for risk management. A regional stock exchange would provide the ideal platform for regional collaboration on energy investments, positioning the Caribbean as a key player in global energy markets.

Call to Action for Policymakers and Investment Leaders

The JSE Guyana Conference 2024 is a turning point in the effort to advance regional financial integration. Key actions for policymakers and investment leaders include:

• Commit to Regulatory Harmonization: Implement the model securities legislation finalized in 2019 to ensure that legal and regulatory frameworks are aligned across the region.
• Invest in Technological Infrastructure: Develop a unified digital platform for trading and market access, drawing from Jamaica’s successful model in engaging both local and international investors through innovative technology.
• Foster Regional Cooperation: Engage private sector leaders, government representatives, and financial institutions to promote cross-border capital flows and drive sustainable growth through the region’s natural resources and emerging sectors.

By taking action based on the insights from the JSE Guyana Conference, stakeholders will be able to accelerate the development of a regional stock exchange, unlocking the economic potential of the Caribbean and creating a more resilient and unified financial market.