The CARICOM Development Fund (CDF) and African Export-Import Bank (Afreximbank) (www.Afreximbank.com) have signed a €708,000 Grant Agreement to support the development of a Green, Resilience, and Sustainability Facility (GRSF). The agreement was formalized during the plenary session of the 48th Regular Meeting of the Conference of Heads of Government of CARICOM, recently held at the Wyndham Grand Barbados Sam Lord’s Castle.
The GRSF’s commitment to providing blended financing, concessional financing, and other commercial funding options directly supports CARICOM’s development by enhancing regional resilience, sustainability, and economic adaptability. By offering flexible financial solutions, the fund empowers CARICOM member states to invest in critical infrastructure, climate adaptation projects, and sustainable development initiatives. This strategic approach aligns with CARICOM’s vision for a more resilient and self-sufficient region, ensuring long-term growth while mitigating environmental and economic vulnerabilities.
Mr. Rodinald Soomer, CEO at the CARICOM Development Fund emphasized the importance of the partnership in advancing the Caribbean’s sustainability agenda. “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.”
On his part, Prof Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, remarked that: “GRSF will provide a means of catalyzing and mobilizing investments to support Caribbean countries that are facing economic and fiscal challenges arising from the impact of frequent and intense adverse weather phenomena associated with climate change. It will also act as a mechanism to finance climate-related loss and damage and build resilience that will mitigate impacts and empower Caribbean Community member states to withstand these challenges, working towards closing the regions US$20 billion resilience financing shortfall.”
Afreximbank and the CDF solidified their strategic partnership in August 2023 through a Memorandum of Understanding and the CDF’s acquisition of shares in the multilateral development Bank, demonstrating a mutual commitment to future collaboration.
The grant agreement was signed at the 48th Regular Meeting of the Conference of Heads of Government of CARICOM which brought together regional leaders to discuss pressing issues, including economic recovery, climate action, and sustainable development. The signing of the Grant Agreement marks a significant milestone in strengthening regional and international cooperation for sustainable growth.
The CDF recognizes that as the region’s development challenges become more complex, many can best be solved through market-based solutions. CDF’s Financial Innovation team is working to expand collaboration with various sectors and establish pioneering approaches that catalyze investments within disadvantaged countries, regions, sectors, and communities.
Increasingly, investors and businesses are looking at emerging markets for new opportunities. However, investing in these markets is complex, and the CDF has an important role to play in mobilising investment into high-impact areas. Encouraging these investments requires new forms of collaboration. The CDF has engaged with several partners to collaborate in delivering its mandate since inception. Most recently, it also partnered with the USAID in the delivery of the Caribbean Community Resilience Fund (CCRF), a blended finance fund aimed at mobilizing capital from commercial, development finance institutions, and impact investors towards climate resilience and economic sustainability in the Caribbean region.
Distributed by APO Group on behalf of Afreximbank.
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Vincent Musumba
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About CARICOM Development Fund:
The CDF established in 2008 is a regional financial institution in the Caribbean Community (CARICOM) mandated to provide technical and financial assistance to disadvantaged countries, regions and sectors participating in the CARICOM Single Market and Economy (CSME). The CDF is committed to providing effective, efficient and sustainable solutions that address the challenges faced by its member countries by delivering innovative solutions aimed at reducing intra-regional disparities through effective partnerships and the provision of tailor-made solutions aimed at building resilience and accelerating sustainable economic development in the Caribbean Community. The CDF is based in Barbados.
For more information on this partnership and upcoming initiatives, please visit www.CARICOMDevelopmentFund.org
About African Export-Import Bank:
African Export-Import Bank (Afreximbank) is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade. For over 30 years, the Bank has been deploying innovative structures to deliver financing solutions that support the transformation of the structure of Africa’s trade, accelerating industrialization and intra-regional trade, thereby boosting economic expansion in Africa. A stalwart supporter of the African Continental Free Trade Agreement (AfCFTA), Afreximbank has launched a Pan-African Payment and Settlement System (PAPSS) that was adopted by the African Union (AU) as the payment and settlement platform to underpin the implementation of the AfCFTA. Working with the AfCFTA Secretariat and the AU, the Bank is setting up a US$10 billion Adjustment Fund to support countries effectively participating in the AfCFTA. At the end of December 2023, Afreximbank’s total assets and contingencies stood at over US$37.3 billion, and its shareholder funds amounted to US$6.1 billion. Afreximbank has investment grade ratings assigned by GCR (international scale) (A), Moody’s (Baa1), Japan Credit Rating Agency (JCR) (A-) and Fitch (BBB). Afreximbank has evolved into a group entity comprising the Bank, its impact fund subsidiary called the Fund for Export Development Africa (FEDA), and its insurance management subsidiary, AfrexInsure (together, “the Group”). The Bank is headquartered in Cairo, Egypt.
