CARICOM and Afrexim Launch Green Resilience Facility

Thursday, February 27, 2025

Par inAfrika Reporter

Bridgetown, Barbados – The CARICOM Development Fund (CDF) and the African Export-Import Bank (Afreximbank) have signed a €708,000 Grant Agreement to establish a Green, Resilience, and Sustainability Facility (GRSF). The agreement was finalized during the plenary session of 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 aims to provide financial solutions tailored to the pressing needs of CARICOM member states, enabling investments in climate adaptation, critical infrastructure, and sustainable development. Through blended and concessional financing mechanisms, the initiative is designed to bolster economic resilience while mitigating environmental and fiscal vulnerabilities.

Rodinald Soomer, CEO of the CARICOM Development Fund, underscored the significance of the initiative, stating: “This grant from Afreximbank will enhance the CDF’s ability to support CARICOM member states as they navigate the dual challenges of environmental sustainability and economic resilience. The Green, Resilience, and Sustainability Facility is a pivotal step towards securing long-term regional stability.”

Afreximbank President and Chairman, Prof. Benedict Oramah, echoed this sentiment, emphasizing the urgency of addressing climate-related economic disruptions. “The GRSF will play a crucial role in mobilizing investments to help Caribbean nations mitigate the adverse effects of climate change. It will serve as a financing mechanism for climate-related loss and damage while supporting resilience-building initiatives to close the region’s estimated US$20 billion resilience financing gap.”

The signing of the grant agreement marks a deepening of the partnership between the CDF and Afreximbank, following a Memorandum of Understanding established in August 2023. This collaboration underscores a shared commitment to leveraging market-based financial solutions to address the Caribbean’s development challenges.

As economic uncertainties and climate risks grow, the CDF is working to expand its network of strategic partners. Recent initiatives, including a partnership with USAID to launch the Caribbean Community Resilience Fund (CCRF), demonstrate the CDF’s proactive approach in mobilizing investment from commercial and development finance institutions toward sustainable growth.

The 48th Regular Meeting of CARICOM Heads of Government brought together regional leaders to deliberate on economic recovery, climate resilience, and sustainable development. The launch of the GRSF stands as a milestone in fostering stronger regional and international cooperation, positioning CARICOM member states for a more sustainable and self-reliant future.