CARICOM Development Fund and Afreximbank partner to advance sustainability and economic resilience in Caribbean

The GRSF is set to revolutionize the way CARICOM member states finance climate adaptation and sustainable development projects.

The CARICOM Development Fund (CDF) and the African Export-Import Bank (Afreximbank) (www.Afreximbank.com) have taken a major step towards advancing sustainability and economic resilience in the Caribbean. The two institutions have signed a €708,000 Grant Agreement to support the establishment of the Green, Resilience, and Sustainability Facility (GRSF). The formalization of this agreement took place during the 48th Regular Meeting of the Conference of Heads of Government of CARICOM, held at the Wyndham Grand Barbados Sam Lord's Castle.

The GRSF is set to revolutionize the way CARICOM member states finance climate adaptation and sustainable development projects. By offering blended financing, concessional financing, and commercial funding solutions, the facility directly supports regional economic adaptability and resilience. This initiative aligns with CARICOM's broader vision of creating a sustainable and self-sufficient region, ensuring long-term development while mitigating environmental and economic vulnerabilities.

Rodinald Soomer, CEO of the CDF, underscored the significance of this strategic collaboration, stating, "This grant from Afreximbank will enable the CDF to strengthen its support for CARICOM Member States as they navigate the pressing environmental and economic challenges of our time. The Green, Resilience, and Sustainability Facility is a critical step towards ensuring long-term resilience and economic sustainability."

Addressing Climate and Economic Challenges

Afreximbank President and Chairman of the Board of Directors, Prof. Benedict Oramah, highlighted the importance of the GRSF in mobilizing investments to support Caribbean nations facing economic and fiscal pressures due to climate change. "The GRSF will act as a catalyst to attract investments that help mitigate the impact of frequent and severe weather phenomena. It will also serve as a financial mechanism to address climate-related loss and damage while closing the region's estimated US$20 billion resilience financing gap," he stated.

A Strategic and Strengthened Partnership

This collaboration builds on a strong foundation established in August 2023, when the CDF acquired shares in Afreximbank and signed a Memorandum of Understanding (MoU). The partnership signifies a shared commitment to future cooperation in fostering regional economic stability and resilience.

The signing of the grant agreement at the CARICOM Heads of Government meeting signals a milestone in strengthening regional and international cooperation. The conference gathered leaders from across the Caribbean to discuss pressing matters such as economic recovery, climate action, and sustainable development.

Mobilizing Investment for High-Impact Projects

The CDF recognizes that evolving regional development challenges require market-based solutions. Its Financial Innovation team is actively expanding collaboration across sectors to create pioneering investment models targeting disadvantaged communities, regions, and industries.

As global investors increasingly explore opportunities in emerging markets, the complexity of these investments necessitates innovative approaches. The CDF plays a crucial role in mobilizing capital for high-impact areas and forging new forms of collaboration to facilitate sustainable economic development.

In line with its mission, the CDF has engaged multiple strategic partners over the years. One of its most recent collaborations is with USAID in launching the Caribbean Community Resilience Fund (CCRF), a blended finance initiative designed to attract capital from commercial entities, development finance institutions, and impact investors to enhance climate resilience and economic sustainability in the Caribbean.

A Future of Sustainable Growth and Resilience

With the establishment of the GRSF and continued strategic partnerships, the CDF and Afreximbank are setting a precedent for regional economic sustainability. The newly signed grant agreement represents a concerted effort to drive meaningful investment in infrastructure, climate adaptation, and sustainable initiatives that will shape the future of the Caribbean.