SBAJ warns drought, water shortages threaten small business closures

August 14, 2026

The Small Business Association of Jamaica (SBAJ) is warning that the ongoing drought and water shortages could force some small businesses to close as operating costs continue to rise.

In calling for immediate government intervention, the association suggested implementation of a relief plan to help small businesses weather the crisis.

The plan includes some short-term measures, namely, an emergency water subsidy for medium and small businesses, priority water trucking at regulated rates, temporary tax relief, General Consumption Tax deferrals, and the rapid deployment of water storage solutions.

The other recommendation is for a long-term drought resilience programme that involves the participation of businesses in national water planning, as well as water storage, leak repairs and business continuity measures.

SBAJ President, Garnett Reid, says businesses that rely heavily on water for daily operations are being forced to purchase trucked water to supplement disrupted piped supply.

He says the additional cost is too much for many small businesses already struggling with inflation, high input costs, and reduced consumer spending.

Mr. Reid adds that the impact is also being felt through reduced operating hours, as some businesses cut back on services to conserve water.

Another concern relates to maintaining sanitation standards.

Mr. Reid says some businesses could be forced to consider staff lay-offs if drought conditions persist.

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Mr. Reid also notes that immediate action is needed, particularly in communities where small business owners are still recovering from the impact of Hurricane Melissa.

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