Financial Crime World

Here is the article rewritten in Markdown format:

Financial Support Boosts St Helena’s Economy

A significant portion of Enterprise St Helena’s (ESH) funding was allocated towards financial assistance to businesses and individuals on the island. This support ranged from small business grants to loans and capital investment, with a focus on promoting sustainable economic development.

Financial Assistance Breakdown

  • ESH disbursed almost £1.1 million in grant funding over nine years.
  • 21% of these grants were worth less than £500.
  • Two-thirds (63%) of the grants were for £2,000 or less.
  • The majority of grants were distributed to micro, small to medium-sized enterprises (MSMEs), which are crucial to the island’s economic growth.

Loans and Capital Investment

  • ESH provided loans to businesses, including start-ups and established firms, with a focus on supporting young entrepreneurs and those in strategic industries.
  • The organization’s loan portfolio included 23 individual loan arrangements, ranging from £1,000 to £184,000.
  • ESH’s interest rate was set higher than the Bank of St Helena’s to cater to applicants who could not access traditional banking services.

Financial Support Contribution

  • The total value of grants and loans disbursed by ESH accounted for approximately 10% of its combined funding from SHG and DFID, which is within the reasonable range of 10-20% as estimated by an outside expert.

ESH Achieves Positive Outcomes

ESH’s financial support contributed to several positive outcomes on St Helena. The organization helped grow traditional industries like agriculture and fishing, while also supporting new businesses related to tourism. ESH’s training programs increased the island’s human capital, which is essential for economic development.

Sector-Specific Achievements

  • Grants and loans to farming led to significant improvements in productivity, supporting the National Agricultural Policy and Implementation Strategy.
  • Investments in marine tourism contributed to its growth.

Challenges and Opportunities

  • Some sectors, such as hospitality and fishing, faced challenges due to over-investment and unrealistic expectations.
  • St Helena has attracted more adventure-type tourists than initially predicted. This has benefited the self-catering sector, but also highlights the need for sustainable economic development that balances short-term gains with long-term benefits.

Conclusion

Overall, ESH’s financial support played a crucial role in promoting sustainable economic development on St Helena, and its achievements will be assessed against the organization’s four objectives outlined in its Framework Agreement with SHG.