CAF partnership 'yielding results'

As any cricket enthusiast will tell you, success on the pitch is never about the performance of a single player. It’s about the strength of the partnership. This truth resonates well beyond the cricket grounds and is perhaps nowhere more evident than in the realm of international development. Partnerships built on trust, collaboration and shared commitment are key to tackling the most pressing challenges of our time.

For small island developing states (SIDS), these challenges include climate change and natural disasters, economic vulnerability, environmental degradation, water scarcity, energy dependence, and many more. Addressing these challenges requires a coordinated effort from the international community, including financial support, investment in sustainable infrastructure and policies aimed at mitigating the impacts of climate change.

The SIDS 4 Conference in Antigua and Barbuda reaffirmed the global recognition of small states as a special case for sustainable development.

In September 2014, the Government and people of Barbados joined hands with CAF– Development Bank of Latin America and the Caribbean, marking the beginning of a relationship that would, like a well-executed cricket match, require teamwork and trust to flourish.

This journey, which began as an agreement to subscribe to CAF’s common capital stock, has since evolved into a dynamic collaboration that is fuelled by a shared goal of fostering sustainable and inclusive growth for all citizens of Barbados.

What have been the results of this partnership thus far? One of our salient projects is the Water Infrastructure Rehabilitation Project with the Barbados Water Authority (BWA). The financing of this initiative is a demonstration of CAF’s commitment to addressing critical infrastructure needs and supporting increased water security for the people of Barbados. A recent visit by a technical team from CAF has reported positively on the project’s progress. CAF has also recently approved US$700 000 in grant funding to support the optimisation of water demand management in priority areas of Barbados, focusing on reducing non-revenue water and modernisation of infrastructure.

In addition to water security, CAF has assisted Barbados in other vital areas, including road rehabilitation, budgetary policy, sector-wide reforms, and disaster recovery. Our bank’s strategic focus has also prioritised financing for key projects related to tourism, the cultural and creative economies, resilient infrastructure, the blue economy, and education; all with a focus on building the resilience and long-term prosperity of the country and its citizens.

Barbados’ portfolio with CAF has grown steadily over the years, demonstrating the value that CAF has consistently added as a reliable development partner. Since 2015, CAF has approved six loan operations for Barbados totalling US$260 million.

For 2024, CAF has prioritised US$1.4 million in technical cooperation for the island, which will support, among other things, the provision of expertise to advance projects related to climate resilience, water improvement, and others. A recent capitalisation has further enhanced the country’s access to CAF’s agile financing, enabling an expansion of its portfolio of impactful projects.

Barbados has always been an integral part of CAF’s journey in the Caribbean. The country’s leadership, particularly in climate change advocacy, aligns closely with CAF’s strategic agenda of promoting increased investments in blue and green growth across the region. In fact, CAF has demonstrated its commitment to the region by earmarking US$25 billion for green operations for the five-year period up until 2027 and pledged at least US$1.25 billion for projects in coastal and oceanic areas from 2022 to 2026.

Under the leadership of Prime Minister The Honourable Mia Amor Mottley, Barbados has consistently championed climate change advocacy on the global stage. This alignment has thus bolstered a synergistic partnership. In a region highly vulnerable to the impacts of climate change, this foundation is more critical than ever.

On the occasion of the tenth anniversary of this partnership, I had the privilege of engaging in bilateral discussions with Prime Minister Mottley. Her reflections on CAF’s work and support to Barbados over the years were deeply encouraging. She commended our swift and decisive response, as the first multilateral institution to offer humanitarian grant funding to Barbados in the aftermath of Hurricane Beryl.

More importantly, she recognised how CAF’s flexible financing approach has allowed small states, like Barbados, to exercise greater influence over their own development agenda. The Prime Minister also highlighted CAF’s commitment to offering support that is free from the constraints of rigid ideological conditions, an essential element in preserving the fiscal and policy space that Caribbean governments need. In keeping with the spirit of the Bridgetown Initiative, this is CAF’s development cooperation in action.

The imminent opening of CAF’s Office in Bridgetown will mark a significant step forward in this relationship. The office will not only serve Barbados but will also extend its support to other Eastern Caribbean territories, leveraging its project experience in Barbados to provide additional development assistance to the Eastern Caribbean.

CAF’s board recently approved four new CARICOM shareholder countries – Antigua and Barbuda, Bahamas, Dominica, and Grenada – while other countries have also expressed interest in becoming members of CAF.

The challenges ahead related to boosting climate resilience, sustainable infrastructure and economic diversification are formidable, but so too are the opportunities. If the last ten years have taught us anything, it is that the strength of a partnership lies not only in what has been accomplished, but in the potential to achieve even more together.