Prime Minister Godwin Friday says significant discussions were held at CARICOM meeting regarding international partnerships and development financing, focusing on diversifying funding sources and securing investment for critical infrastructure.
(Afreximbank)
Friday said the bank announced an increase in its Caribbean financing limit from $3 billion to $5 billion US, intended for deployment over the next three years.
Financing will focus on “financing sovereignty,” including plans for a Caribbean EXIM bank and a regional payment system to reduce reliance on extra-regional hard currencies.
There is a specific interest in financing air connectivity and supporting physical infrastructure development across the region.
The bank expressed support for the Eastern Caribbean Central Bank’s (ECCB) initiative to double the size of Eastern Caribbean economies within a decade.
Development Bank of Latin America
Friday said CAF was noted for its fast approval and rollout rate, with a timeline of approximately four months from conception to disbursement.
St. Vincent and the Grenadines is looking to CAF for assistance in financing a national bank to provide loans to small businesses.
Specific interest was shown in financing the upgrading of ports in the Grenadines, which have exceeded capacity or deteriorated.
Climate and Water Financing
Prime Minister Friday said a $50 million initiative (including $40 million in grant funding) was presented by the Caribbean Community Climate Change Center (5C’s) to create climate-resilient water infrastructure.
This project includes installing solar-powered desalination plants in Bequia, Canouan, Mayreau, and Union Island, as well as constructing six new storage tanks for the CWSA on the mainland.
Bilateral Partnerships
United Arab Emirates (UAE): Cooperation is expected to be extensive, focusing on high-tech sectors like AI and e-governance, water security, and housing, with the possibility of opening a diplomatic embassy.
Saudi Arabia: CARICOM welcomed a Saudi commitment to development financing, with further participation confirmed for 2030 in Riyadh.
Venezuela: Prime Minister Friday said discussions involved the current situation in Venezuela and ongoing economic relations, including existing debts and potential cooperation in the fisheries sector. There was also mention of a potential revived PetroCaribe initiative.
Alternative Financing Mechanisms
Citizenship by Investment (CBI): This is viewed as a mechanism to finance capital projects without borrowing or taxing the population, though the government emphasized it is only one part of a broader economic plan.
Diaspora Investment: The government intends to create systematic mechanisms to mobilize the capital, talent, and investment of the Vincentian diaspora, treating them as a highly motivated group of potential investors.
Foreign Minister Bramble emphasized that participating in these international forums is essential to ensure small island states are “at the table” to influence the developmental agenda and secure these tangible commitments for their people.