DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK
### BARBADOS AND IDB GROUP STRATEGIC
### AGREEMENT
### COUNTRY STRATEGY
2025 – 2030
##### May 2025
In accordance with the Access to Information Policy, this document is being released to the public and distributed to the Bank’s Board of Executive...
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DOCUMENT OF THE INTER-AMERICAN DEVELOPMENT BANK
### BARBADOS AND IDB GROUP STRATEGIC
### AGREEMENT
### COUNTRY STRATEGY
2025 – 2030
##### May 2025
In accordance with the Access to Information Policy, this document is being released to the public and distributed to the Bank’s Board of Executive Directors simultaneously. This document has not been approved by the Board. Should the Board approve the document with amendments, a revised version will be made available to the public, thus superseding and replacing the original version.
PUBLIC SIMULTANEOUS DISCLOSURE
This document was prepared by Carina Cockburn (CCB/CBA), Cloe Ortiz de Mendivil (CCB/CBA), and Paula Castillo Martinez (GEN/SPK) under the supervision of Anton Edmunds (CCB/CCB) and David Rosenblatt (CCB/CCB). Inputs and comments were provided by Janette Archer-Headley (CCB/CBA), Gwinn James (CCB/CBA), Sasha Baxter (CCB/CBA), Alan Mentis, (CCB/CBA), Neile Quintero (CCB/CBA), Diether Beuermann (CCB/CBA), Hugo Florez (VPC/VPC), Priscilla Gutiérrez (VPC/VPC), Naveen Jainauth-Umrao (VPC/FMP), Marie Marcelle Orisme (VPC/FMP), Jennifer Doherty Bigara (CSD/CCS), Monique Johnson (CSD/DRM), Robin Rajack (CSD/HUD), Edgardo Mosqueira (IFD/ICS), Jose Antonio Mejia-Guerra (IFC/ICS), Arturo Muente (IFD/ICS), Sandra Naranjo (IFD/ICS), Michael Hall (IFD/CMF), Gerardo Reyes-Tagle (IFD/FMM), Carlos Echeverria (INE/ENE), Christopher Persaud (INE/TSP), Kambiri Cox (INE/WSA), Tenisha Brown (PTI/ARD), Sylvia Dohnert de Lascurain (PTI/CTI), Krista Lucenti (PTI/TIN), Maria Jose Martinez (SCL/GDI), Sabine Rieble-Aubourg (SCL/EDU), Maria Cecilia Acevedo (GEN/SPK), Marcelo Paz (GEN/SPK), Juan Flores (GEN/SPK), Adriana Valencia (GEN/SPK), Ruth Houliston (LAB/EBA).
#### CONTENTS
I. BUILDING A NEW COUNTRY STRATEGY: PURPOSE AND APPROACH ... 9
A. ACCELERATING PROGRESS TOWARDS INCLUSIVE GROWTH AND RESILIENCE ... 9
B. KEY INSIGHTS FROM THE 2019-2023 COUNTRY STRATEGY ... 11
C. FOCUS ON SELECTIVITY TO DELIVER TANGIBLE IMPACT ... 14
II. MAIN PILLARS OF ACTION AND EXPECTED IMPACT ... 16
PILLAR 1. FURTHER REVITALIZE THE ECONOMY AND PROMOTE INCLUSIVE AND SUSTAINABLE
GROWTH ... 16
PILLAR 2. ENHANCE SOCIAL RESILIENCE TO THRIVE IN A CHANGING WORLD ... 21
PILLAR 3. BUILD CLIMATE RESILIENCE AND PROMOTE ENERGY TRANSFORMATION ... 25
CROSSCUTTING ISSUES ... 28
III. HOW WE WILL DO IT ... 31
A. PROGRAMMATIC APPROACH ... 31
B. SYNERGIES ... 31
C. IDENTIFICATION OF REFORMS ... 32
D. REGIONAL IDB GROUP FLAGSHIP PROGRAMS ... 33
E. STRATEGIC ALLIANCES ... 33
IV. CONSIDERATIONS FOR IMPLEMENTATION AND CAPACITY BUILDING ... 35
A. KNOWLEDGE ... 35
B. MONITORING AND EVALUATION (M&E) CAPACITY ... 35
C. NATIONAL FIDUCIARY SYSTEMS ... 36
D. EMERGENCY RESPONSE ... 36
E. RISK OUTLOOK ... 37
MACROECONOMIC FACTORS ... 37
EXECUTION RISKS ... 38
ENVIRONMENTAL, CLIMATE, AND SOCIAL ... 38
ANNEX I – RESULTS MATRIX ... 40
ANNEX II – PORTFOLIO ALIGNMENT AND INDICATIVE PIPELINE 2025 - 2026 ... 43
ANNEX III – NATIONAL SYSTEMS MATRIX ... 44
ANNEX IV – ESTIMATED LENDING FRAMEWORK ... 45
ANNEX V – DEVELOPMENT EFFECTIVENESS MATRIX ... 47
#### ELECTRONIC LINKS
1. Country Development Challenges
2. IDB Group in Barbados
3. Strategic Positioning Analysis
4. Fiduciary Technical Note
5. Barbados 2035: A Plan for Investment and Prosperity
6. Civil Society Consultation Plan
#### ABREVIATIONS
| AI | Artificial Intelligence |
| --- | --- |
| BERT | Barbados Economic Recovery and Transformation Plan |
| BESS | Battery Energy Storage Systems |
| BNEP | Barbados National Energy Policy |
| CDB | Caribbean Development Bank |
| CDC | Country Development Challenges |
| CIIP | Critical Information Infrastructure Protection Plan |
| CS | Country Strategy |
| CSEC | Caribbean Secondary Education Certificate |
| EFF | Extended Fund Facility |
| EIB | European Investment Bank |
| FAO | Food and Agriculture Organization |
| FDI | Foreign Direct Investment |
| FY | Fiscal Year |
| GCF | Green Climate Fund |
| GCI | Global Competitiveness Index |
| GDP | Gross Domestic Product |
| HDI | Human Development Index |
| ICT | Information and Communications Technologies |
| IDB | Inter American-Development Bank |
| IFPG | Innovation, Firm Performance, and Gender Survey |
| IMF | International Monetary Fund |
| ITU | International Telecommunication Union |
| LAC | Latin America and the Caribbean |
| M&E | Monitoring and Evaluation |
| MDBs | Multilateral Development Banks |
| MIF | Multilateral Investment Fund |
| MMC | Multi-Hazard Mitigation Council |
| MPEA | Ministry of People Empowerment and Elder Affairs |
| MSMEs | Micro, Small and Medium-Sized Enterprises |
| NCD | Non-Communicable Disease |
| NDC | Nationally Determined Contributions |
NISSS National Insurance and Social Security Service
NGOs Non-Governmental Organizations
PEU Project Execution Unit
PIU Project Implementation Unit
PMO Project Management Office
PPO Principal Payment Option
PPP Public-Private Partnership
RSF Resilience and Sustainability Facility
S&I Strategy and Innovation
SOE State-Owned Enterprise
SPPP Sustainable Public Procurement Policy
TNC The Nature Conservancy
TVET Technical and Vocational Education and Training
UN United Nations
UNDP United Nations Development Programme
WB World Bank
#### INTRODUCTION
##### A NEW APPROACH FOR IMPACT
Barbados' Potential
Barbadian authorities are committed to the reform agenda and have a clear vision for their country. The economy is growing, the fiscal stance has significantly improved in recent years, and the financial sector remains stable. Moreover, the social safety net has been traditionally strong, average educational levels are high, and it remains one of the safest countries in the region. However, the path towards development is still steep, especially within a context of a changing global landscape. Decades of low economic growth and weak fiscal performance, stagnation in social progress, and high exposure to climate-related hazard events, call for accelerating progress towards inclusive growth and resilience. Strengthening the foundations for private sector development and investment, improving the effectiveness of the public sector, empowering society to contribute to the development of the country, boosting climate resilience and, promoting energy transformation, are key elements that will allow Barbados to improve the well-being of its citizens.
##### A New Country Strategy Approach
The IDB Group Country Strategy (CS) with Barbados for the 2025-2030 period aims to maximize the impact of the Banks’ interventions by applying a selectivity framework. This new approach seeks to identify areas in need of support and that are within both the government and the IDB Group strategic priorities. Government priorities are outlined in the Barbados Economic Recovery and Transformation (BERT) Plan 2022, the “Barbados 2035 – A Plan for Investment in Prosperity & Resilience 2024”, and the “Declaration of Mission Barbados”. The IDB Group priorities are aligned in the institutional strategy IDB Impact+ and the regional development framework "ONE Caribbean". In addition, the framework leverages resources, technical expertise, and partnerships while considering the development challenges of the country, as outlined in the Country Development Challenges (CDC) study. The new approach also envisions an enhanced collaboration between the three windows of the IDB Group—IDB, IDB Invest, and IDB Lab—to identify synergies and propose joint solutions that can maximize impact.
Identified Pillars of Intervention and Expected Impact
The IDB Group CS with Barbados for the 2025-2030 period aims to help the country accelerate progress towards inclusive growth and resilience. The strategy is structured around three pillars that are mutually reinforcing. While the first pillar focuses on unlocking economic growth through higher productivity, the second and third pillars aim to build resilience. Increased resilience enhances the ability to withstand shocks, thereby mitigating the impact of economic downturns. Pillar 1. Further revitalize the economy and promote inclusive and sustainable growth. The objective of the pillar is to unlock potential both in the private and public sectors so the economy flourishes, building on the momentum of recent years. Impact is expected along two main dimensions. Firstly, private sector productivity and investment will be higher. This will be supported by an improved enabling environment and regulatory framework that simplifies the process of establishing and operating businesses, a more developed and resilient financial sector with improved financial inclusion and expanded Micro, Small and Medium-Sized Enterprises (MSME) financing, and a reduced skills mismatch in the labor market. Secondly, public sector productivity will be enhanced by streamlining the provision
of public administrative services through higher digitalization and systems interoperability, and by consolidating fiscal sustainability. Pillar 2. Enhance social resilience to thrive in a changing world. The goal is to empower citizens so they can positively contribute to their communities and to economic growth. Impact is expected to materialize in a social safety net system that avoids duplications, improves coverage, and contains response systems to timely assist people affected by unexpected shocks. Additionally, interventions will result in improved educational outcomes and higher resilience will be reflected in increased availability and consumption of healthy food options. Pillar 3. Build climate resilience and promote energy transformation. Given the climate-related hazards to which the country is exposed, the objective is to ensure the country is prepared to endure unforeseen shocks and has increased its adaptive capacities to changing climate conditions. Impact is expected by way of enhanced access and deployment of climate finance, improved institutional capacity for disaster risk management, higher resiliency across sectors, including in key infrastructure such as water and sanitation systems and ports, improved coastal management, increased adoption of affordable, secure, and resilient energy technologies, and improved energy efficiency. In addition, the CS includes three cross-cutting themes to be mainstreamed in the interventions, which are promoting gender equality and diversity, boosting innovation, and strengthening institutional capacity. The new strategy proposes a coordinated vision, with the three windows of the IDB Group complementing each other to unlock the development potential of the country and optimize the use of resources to maximize impact. Given the challenges and investment needs that Barbados faces, both public and private participation are necessary to boost development impact
Partnership Barbados IDB Group
The IDB Group has been a key strategic and trusted partner for Barbados by providing not only financial support but also technical expertise. Years of fluid dialogue and operational engagement have been fundamental to enhance development outcomes. During the 2019-2023 CS the IDB Group’s contribution focused on supporting public sector efficiency and fiscal sustainability, safeguarding social outcomes, and boosting productivity and competitiveness. The CS 2025-2030 builds on the ongoing engagement with Barbados but sharpens focus by streamlining the theme of accelerating progress towards inclusive growth and resilience. The IDB Group is keen to continue cultivating the partnership with Barbados by investing in key sectors and providing technical expertise.
#### I. BUILDING A NEW COUNTRY
#### STRATEGY: PURPOSE AND APPROACH
##### A. ACCELERATING PROGRESS TOWARDS INCLUSIVE GROWTH AND RESILIENCE 1
1.1 Barbados is a small developing island in the Caribbean with an economy highly concentrated in the tourism sector. It has an estimated population of 269,090 inhabitants (2021) 2 and Gross Domestic Product (GDP) per capita in Purchasing Power Parity dollars of US$22,062 (2024). The lack of economic diversification and high dependency on imports from abroad result in high exposure to external shocks. 3 The economic stability and quality of life in the country are dependent on the continued provision of essential services by its terrestrial and marine ecosystems. These ecosystems are crucial for tourism, fisheries, and coastal protection. Due to its geography, the island is also vulnerable to the effects of climate events such as tropical storms and hurricanes. The increasing intensity and frequency of these climate events is creating new threats such as rising sea levels, temperature increases and water scarcity. This is particularly challenging since a significant fraction of the population and most of the tourism facilities are in coastal areas.
1.2 Although the economy is currently on the recovery path following the COVID-19 shock, there is an opportunity for further revitalization following prior years of slow performance. Between 2009 and 2019, real GDP dropped at an annual average rate of 0.4%, compared to a 1.1% increase on average for the Caribbean. 4 Recurrent fiscal deficits, coupled with sluggish growth, led to unsustainable levels of public debt. This prompted authorities to devise the Barbados Economic Recovery and Transformation Plan (BERT) in 2018, which was supported by an International Monetary Fund (IMF) Extended Fund Facility (EFF) four-year arrangement, which included a debt restructuring. Despite initial progress under the program, Barbados was severely impacted by the COVID-19 pandemic due to the country’s dependency on the tourism sector. Real GDP shrank by 15.1% in 2020 and by 0.3% in 2021. Initial economic recovery was further halted by two natural disasters in 2021. In April, the volcanic ash falls from La Soufriere in neighboring Saint Vincent disrupted economic activity, paralyzed airport operations, and resulted in additional expenditures derived from cleanup activities. In July, category 1 hurricane Elsa landed in Barbados, causing damages to powerlines, disruptions in telecommunications and water provision, as well as damage to roofs. 5 In 2022, economic reactivation started, driven by the tourism and construction sectors. By 2024 tourist arrivals were at the same level as pre-pandemic arrivals and multiple construction projects were ongoing. 6
1.3 Commitment to fiscal discipline has helped lower public debt, while public sector effectiveness can be further improved to ensure fiscal sustainability going forward. In FY2017/18 the debt-to GDP ratio reached 142.8%, prompting a debt restructuring. Under the IMF EFF arrangement authorities started implementing fiscal discipline and advancing the reform agenda, including a tax
1 Macroeconomic data is obtained from the IMF World Economic Outlook April 2025 and from the IMF Country Report No. 24/368, unless otherwise stated.
2 2021 Population and Housing Census Report, BSS.
3 The high dependency on imports also translates into food security vulnerabilities.
4 The Caribbean region comprises the IDB member countries The Bahamas, Barbados, Guyana, Jamaica, Suriname, and Trinidad and Tobago. Barbados is the
only country within this group with falling real GDP between 2009 and 2019.
5 Elsa was the first hurricane to impact Barbados since 1963. In addition, in July 2024 the eye of category four Hurricane Beryl passed near 80 miles south of
Barbados, causing wind gusts, moderate to heavy showers, and a water surge impacting coastal infrastructure and fishing boats.
6 In 2024 total tourist arrivals stood at 97% of the arrivals recorded in 2019.
reform (IDB, 2024). However, the onset of the COVID-19 pandemic in March 2020 resulted in lower revenues due to subdued economic activity and concurrent higher public spending aimed at supporting the lives and livelihoods of those most affected, reversing initial progress. As the effects of the pandemic shock began to ease and travel restrictions loosened, fiscal performance improved once again. Given the setback the country experienced, authorities decided to engage in a subsequent IMF EFF three-year arrangement in combination with a Resilience and Sustainability Fund (RSF) arrangement, providing continuity to the reform agenda while enhancing resilience to climate change and sustainability. Debt has continued on a downward trajectory, reaching 102.9% of GDP in FY2024/25, and although on track to achieve the target of a 60% debt-to-GDP ratio by FY2035/36, strong fiscal discipline and sustained economic growth are necessary for this to materialize. 7
1.4 Even though Barbados is classified as a very high human development country, progress in this area has been stagnant in the last decade, evidencing the need to intervene to ensure the society is resilient and well-prepared to thrive in a changing world. Barbados ranked 62 out of 193 countries in the Human Development Index (HDI) in 2022 with an index of 0.809. 8 Although the index rose 2.1% between 2010 and 2022, it increased 3.7% for very high HDI countries, and 3.8% in Latin America and the Caribbean (LAC). Despite relatively high educational attainment levels, 9 there is a mismatch between the skills demanded by employers and the skills found in the labor market. In the firm-level survey Innovation, Firm Performance and Gender Survey (IFPG) 2021, more than 70% of respondents reported inadequately educated workforce as a major or severe obstacle that affects business operations. The prevalence of chronic non-communicable diseases (NCD) remains high (PAHO). In 2023, 67% of the adult population was classified as overweight or obese, with a high incidence of diabetes and arterial hypertension. In addition, the demographic composition of the country is shifting, with a growing ageing population, stressing the need to ensure their quality of life is protected (IDB, 2022).
1.5 Barbados is highly affected by the effects of climate change, despite being a minor contributor, and thus investing in adaptation is crucial to boost resilience. Furthermore, climate change is one of the drivers for ecosystem degradation, along with habitat loss and fragmentation, invasive alien species, over-harvesting, pollution, bird hunting, resource extraction, and natural disasters. The island is heavily exposed to tropical storms, hurricanes, droughts, sea level rise, temperature increases, and coastal erosion and is affected by water scarcity. Besides the risks to lives and livelihoods, these events can hinder public finances given both the decrease in tax revenue and the rise in public expenditure. Economic loss from, e.g., a 10-year scale storm alone could climb to over US$90 million for the coastal areas (IDB, 2022). Strengthening institutional capacity for disaster risk management and incurring into upfront investments in climate risk reduction are therefore critical, especially since research has shown that investments in risk reduction are four to seven times more cost-effective than post-disaster spending on emergency relief, recovery, and reconstruction (MMC, 2005; Moench et al., 2007). In addition, advancing sustainable energy initiatives to increase renewable energy adoption can help diversify the electricity generation mix and build resilience against disruptions. Meanwhile, it can decrease reliance on imported oil for electricity generation, thereby reducing economic vulnerability to international oil price fluctuations and preserving foreign exchange reserves.
1.6 Barbados grapples with a challenging investment and business environment which constrains the operational efficiency of its businesses and reduces transparency for foreign investors. 10 Private domestic and foreign investment is challenged by regulatory and bureaucratic hurdles, physical and digital infrastructure limitations, poor connectivity, inadequately trained labor, limited land availability, high energy costs, and a burdensome tax structure. While Ba
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1. VUE D’ENSEMBLE
2. ENVIRONNEMENT ÉCONOMIQUE GLOBAL AU QUATRIÈME
TRIMESTRE 2025
2.1. ÉCONOMIE MONDIALE
2.2. ÉCONOMIE HAÏTIENNE
SECTEUR RÉEL ET ÉVOLUTION DES PRIX
3. FINANCES PUBLIQUES ET SECTEUR EXTERNE AU QUATRIÈME TRIMESTRE 2025
4.- DÉCISIONS DE POLITIQUE MONÉTAIRE AU QUATRIÈME TRIMESTRE 2025
5. AGRÉGATS MONÉTAIRES AU QUATRIÈME TRIMESTRE 2025
6. RÉSULTATS ET INDICATEURS DE PERFORMANCE DU SECTEUR BANCAIRE
7. RÉPARTITION DU CRÉDIT PAR CATÉGORIE, GENRE ET RÉGION GÉOGRAPHIQUE
8. PERSPECTIVES
## TABLE DES MATIÈRES
D ’ E N
S E M
B L E
## 1. VUE D’ENSEMBLE
Les retombées des politiques tarifaires menées à l’échelle internationale ont été
moins importantes qu’attendues sur l’environnement macroéconomique selon
certains analystes. Conséquemment, le Fonds Monétaire International (FMI) a révisé
à la hausse les perspectives de croissance mondiale pour l’exercice 2025 (3,2 %
contre 3 % prévu en juillet). Néanmoins, la trajectoire de l’économie mondiale reste
soumise aux incertitudes relatives aux tensions géopolitiques. Ainsi, afin de soutenir
le dynamisme des activités économiques, les principales banques centrales ont
décidé de desserrer les contraintes monétaires, en dépit d’un niveau d’inflation
excédant les cibles visées.
Au niveau national, la conjoncture macroéconomique continue de subir les
incidences négatives de la dégradation des conditions sécuritaires, lesquelles
paralysent les activités économiques et contribuent au maintien des pressions
inflationnistes avec des impacts néfastes sur les conditions de vie de la population
haïtienne. L’atonie économique en Haïti s’est traduite à travers la contraction de
l’indice conjoncturel d’activité économique (ICAE) au troisième trimestre 2025.
Cette tendance se maintiendrait au dernier trimestre de l’exercice 2025, si l’on se
réfère aux estimations de l’ICAE réalisées par la BRH pour la période allant de juillet
à septembre 2025.
De plus, l’augmentation du nombre de personnes déplacées dans diverses régions
du pays a induit une perte de sources de revenus des ménages défavorisés dans un
environnement marqué par des pertes d’emplois. Il en est résulté une aggravation
de l’insécurité alimentaire sur cette période reportée dans la dernière analyse
de l’indice de l’insécurité alimentaire aiguë publiée par la CNSA pour les trois
derniers mois de l’exercice 2025. Cette dégradation des conditions humanitaires
est concomitante aux tensions inflationnistes qui se sont intensifiées au cours de
l’exercice 2025 par rapport à l’exercice précédent, le taux d’inflation s’établissant à
31,9 % en septembre 2025, contre 28,4 % et 27,9 % respectivement en juin 2025
et septembre 2024.
Dans ce contexte empreint d’incertitudes liées à l’insécurité persistante, les
autorités monétaires ont modulé les décisions prises en fonction de l’évolution de
la conjoncture en priorisant la stabilité macroéconomique et financière, tout en
poursuivant les mesures non conventionnelles adoptées en soutien aux secteurs
productifs. De même, la Banque centrale continue de veiller à contenir la volatilité
des prix dans l’économie à travers la stabilité du taux de change et ses impacts
potentiels sur l’inflation.
E N
I R
E M
E N
É C
L O
B A
## 2. ENVIRONNEMENT ÉCONOMIQUE GLOBAL AU QUATRIÈME TRIMESTRE
2025
2.1. ÉCONOMIE MONDIALE
Les perspectives économiques publiées par le FMI en octobre 2025 augurent
une croissance du PIB mondial plus soutenue qu’anticipée antérieurement (3,2 %
contre 3 % prévue en juillet) pour l’année 2025. Cette révision découle de l’effet
moins prononcé qu’attendu des tarifs douaniers sur l’évolution des prix mondiaux.
Cependant, les tensions géopolitiques continuent d’entretenir les incertitudes
par rapport au regain de dynamisme économique à l’échelle internationale.
Conséquemment, les principales banques centrales ont décidé de desserrer les
conditions monétaires afin de favoriser la relance de leur économie.
En effet, la Réserve fédérale américaine (Fed) a réduit d’un quart de point la
fourchette du taux des fonds fédéraux à [4 % - 4,25 %] en septembre 2025. Une telle
posture vise à soutenir l’activité économique dans un contexte de ralentissement
des créations d’emplois et d’un taux de chômage établi à 4,4 % en septembre 2025,
alors que l’inflation demeure au-dessus de la cible de 2 % (3 % en septembre 2025
contre 2,7 % en juin 2025).
Au cours du quatrième trimestre 2025, l’inflation au niveau de la Zone Euro a oscillé
autour de l’objectif à moyen terme de 2 % de la Banque centrale européenne
(2,2 % en septembre 2025). De plus, le dynamisme économique dans cette zone
a été soutenu par la demande intérieure en dépit des tensions commerciales et
du renforcement de la valeur de l’euro. Ainsi, les autorités monétaires ont gardé
inchangé le taux de facilité de dépôt à 2 % en septembre 2025.
Selon les prévisions du FMI, la croissance du PIB de l’Amérique latine et des Caraïbes
resterait modérée et tournerait autour de 2,4 % en 2025. L’activité économique de
cette région reste limitée par des conditions financières restrictives, une demande
extérieure atone et de faibles investissements. S’agissant de la République
dominicaine, les dernières statistiques conjoncturelles confirment une résilience
de l’activité économique. De manière cumulée, l’Indicateur mensuel d’activité
économique (IMAE) a progressé de 2,2 % en glissement annuel en septembre 2025,
traduisant un certain dynamisme dans des secteurs tels le commerce et le tourisme.
L’inflation se maintenant à l’intérieur de la fourchette cible de 4 % ± 1 point de
pourcentage (3,76 % en septembre 2025), la Banque centrale de la République
dominicaine (BCRD) a abaissé son taux directeur de 25 points de base, pour le
porter à 5,50 % en septembre 2025 en vue de stimuler la demande intérieure.
S’agissant des produits de base sur le marché international, les prix ont été très
volatiles sur la période allant de juillet à septembre 2025. L’indice FAO des prix
alimentaires s’est légèrement accru de 0,5 % par rapport au trimestre précédent.
En revanche, le cours moyen du baril de Brent a atteint 67,99 dollars ÉU, soit une baisse de 4,8 % par rapport à juin 2025, alors que celui du WTI a reculé de 6,2 % pour s’établir à 63,96 dollars ÉU. Ce repli des cours pétroliers résulte de l’augmentation de la production des pays membres et non membres de l’Organisation des pays exportateurs de pétrole (OPEP+) d’environ 330 000 barils par jour en septembre
2025, alors que la demande est restée modérée.
Tableau 1
Source : FMI (*Projec ons d'octobre 2025) | Sources : BLS, Eurostat, BCRD, **Septembre 2025
Indicateurs économiques- Principales économies mondiales
États-Unis
Zone Euro
République
Dominicaine
Pays et Région/
Indicateurs
Projection de croissance*
Taux
d'inflation**
Taux de chômage**
Taux
directeur**
2 %
1,2 %
3 %
3 %
2,2 %
3,76 %
4,4 %
6,4 %
5,3 %
4,00 % - 4,25 %
2 %
5,50 %
Graphique 1
Source : www.indexmundi.com/commodi es
Prix du riz en dollar ÉU par tonne métrique
670
630
590
550
510
470
430
390
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
5
Graphique 2
Source : www.indexmundi.com/commodi es
Prix du blé et du maïs en dollar ÉU par tonne métrique
525
475
425
375
325
275
225
175
125
Blé
Maïs
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
5
Prix du baril du West Texas Intermediate (WTI) en dollar ÉU
100.0
| | 75.0 | | | | | | | | | | | | | | | | | | | |
| --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- | --- |
| Sources : www.eia.gov/Indexmundi | 50.0 Graphique 4 125 | 2 2 - . t p e s | 2 2 - . v o n | 3 2 - . v n a j | 3 2 - s r a m | 3 2 - i a m Prix du baril du Brent en dollar ÉU | 3 2 - . l i u j | 3 2 - . t p e s | 3 2 - . v o n | 4 2 - . v n a j | 4 2 - s r a m | 4 2 - i a m | 4 2 - . l i u j | 4 2 - . t p e s | 4 2 - . v o n | 5 2 - . v n a j | 5 2 - s r a m | 5 2 - i a m | 5 2 - . l i u j | 5 2 - . t p e s |
| | 100 | | | | | | | | | | | | | | | | | | | |
| | 75 | | | | | | | | | | | | | | | | | | | |
50
2
2
3
3
3
3
3
3
4
4
4
4
4
4
5
5
5
5
5
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
Sources : www.eia.gov/Indexmundi
### 2.2. ÉCONOMIE HAÏTIENNE
SECTEUR RÉEL ET ÉVOLUTION DES PRIX
Au quatrième trimestre de l’exercice 2024-2025, la conjoncture économique demeure marquée par une instabilité socio-politique qui continue de freiner la reprise de l’activité réelle et de détériorer les conditions de vie de la population haïtienne. Les efforts entrepris par les autorités publiques pour une relance économique ont pâti de cet environnement adverse non propice aux activités de production 1. L’Indicateur conjoncturel d’activité économique (ICAE) a reculé de
2,1 % au troisième trimestre de l’exercice 2024-2025, contre -2,7 % au trimestre
1 Ces efforts se traduisent, entre autres, à travers l’Évaluation Rapide des Impacts de la Crise (en anglais
RCIA : Rapid Crisis Impact Assessment), laquelle constitue un plan d’investissement lancé par le gouvernement haïtien avec l’appui de partenaires internationaux (UE, ONU, BID, Banque mondiale) et adopté afin d’évaluer et de répondre aux incidences de la crise sécuritaire depuis 2021. Ce plan propose aussi des actions visant le relèvement socio économique, axé sur la stabilisation, les infrastructures, la sécurité et les services sociaux, avec des besoins chiffrés à plus de 1,34 milliard de dollars pour la période 2024-2026. (Source : www.worldbank.org)
E N
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précédent. Sur les neuf (9) premiers mois de l’exercice fiscal 2025, l’ICAE s’est replié
de 2,4 %, plombé par la contraction des secteurs primaire (-5,5 %), secondaire
(-4,3 %) et tertiaire (-0,4 %). Cette contre-performance témoigne des incidences
négatives de la fragmentation régionale sur les capacités productives du pays. Les
projections réalisées par la Direction Monnaie et Analyse Économique (MAE) de
la BRH indiquent une contraction de 1,5 % de l’ICAE pour le dernier trimestre de
l’exercice 2025. Ceci confirmerait l’absence d’acquis de croissance économique
sur l’exercice 2025 et laisserait présager une septième année consécutive de
contraction économique en Haïti.
Entretenues par la dégradation du climat sécuritaire, la faiblesse de la production
nationale et les difficultés d’approvisionnement des marchés publics se sont
traduites par une intensification des pressions inflationnistes durant l’exercice
2024-2025. En septembre 2025, l’inflation annuelle s’est établie à 31,9 %, contre
28,4 % en juin dernier et 27,9 % à la fin de l’exercice antérieur. Cette accélération
des prix s’observe dans un contexte de ralentissement des activités génératrices
de revenus. Les déplacements successifs des personnes au sein des différentes
régions, notamment dans les zones productives, ont eu comme conséquences
directes une diminution des moyens de subsistance des travailleurs agricoles et
une baisse de la production vivrière 2. Les fortes pluies à la fin de septembre ont
provoqué des inondations dans plusieurs départements (Bas Nord-Ouest, Sud,
Nippes, Artibonite), entraînant la destruction de plantations, endommageant des
maisons et des infrastructures routières, ainsi que des pertes considérables dans le
commerce de détail, la pêche et l’élevage.
Par ailleurs, la fermeture et la paralysie de certaines entreprises, notamment dans
la zone métropolitaine de Port-au-Prince, a contribué à des pertes d’emplois dans
l’économie. En effet, le secteur textile a pâti de ce climat socioéconomique instable.
De 28 272 en septembre 2024, le nombre d’ouvriers est passé à 24 436 et 24 852
respectivement en juin et juillet 2025. De plus, le non-renouvellement de la loi
HOPE/HELP, expirée le 30 septembre 2025, risque de fragiliser les activités de
l’industrie textile haïtienne. Ces éléments sus-cités ont contribué au renforcement
de l’insécurité alimentaire dans le pays. Ainsi, selon les estimations découlant de
l’analyse de l’indice de l’insécurité alimentaire aiguë publiées par la CNSA pour la
période allant de juillet à septembre 2025, environ 5,7 millions d’Haïtiens, soit 51 %
de la population analysée, seraient en insécurité alimentaire aiguë, dont un million
d’enfants en situation critique.
2 Selon l’OIM, le nombre de personnes déplacées en Haïti a atteint un niveau record, soit 1,4 million de personnes entre juillet et septembre 2025 (+10 % par rapport à juin 2025). Les départements de l’Artibonite (121 896, +32 %) et du Centre (199 258, +10 %) ont enregistré le nombre le plus élevé de personnes déplacées sur cette période.
## 3. FINANCES PUBLIQUES ET SECTEUR EXTERNE AU QUATRIÈME TRIMESTRE 2025
La politique fiscale sur les deux premiers trimestres de 2025 a été menée sur la base de la loi de finances de l’exercice 2024-2025 avant l’adoption d’un budget rectificatif au début du mois d’avril et d’un budget rectificatif exceptionnel en septembre 2025. Ces ajustements budgétaires visaient à intégrer les changements observés au niveau de l’environnement macroéconomique limitant la mobilisation des recettes et renforçant la vulnérabilité des ménages haïtiens. Toutefois, la situation des finances publiques a été marquée au cours du quatrième trimestre 2025 par une hausse relative de la performance des organismes de perception en dépit des impacts négatifs de la crise sécuritaire sur le climat des affaires. Les taxes et impôts collectés par l’État haïtien se sont établis à 48 548,02 MG, enregistrant une augmentation de 5,70 % comparativement au trimestre précédent. Quoiqu’en hausse de 15,22 % en glissement annuel, les recettes fiscales de l’exercice comptent pour 50 % des ressources totales de l’État chiffrées à 384 427,26 MG. Ces dernières ont été fortement constituées du produit des émissions de billets de trésorerie dont l’encours s’est porté à 169 254,85 MG au 30 septembre 2025. Parallèlement, en vue d’adresser les préoccupations d’ordre sécuritaire et social telles que considérées dans le dernier budget rectificatif, les dépenses publiques ont enregistré une augmentation plus soutenue sur l’intervalle juillet - septembre 2025 comparativement au trimestre passé. Au cours du quatrième trimestre 2025, elles ont crû de 15,40 % pour s’établir à 57 819,25 MG sur une base trimestrielle 3.
Cumulées d’octobre 2024 à septembre 2025, elles n’ont représenté que 51 % des décaissements totaux de l’État, lesquels ont été évalués à 388 706,39 MG au 30 septembre 2025. Néanmoins, les opérations du Trésor public au cours du quatrième trimestre se sont soldées par un surplus donnant lieu à une capacité de financement de l’État de 5 779,15 MG, en ligne avec l’objectif de financement monétaire nul inscrit dans le budget rectifié de septembre 2025 et dans le Staff Monitored Program (SMP) conclu avec le FMI.
3 Cette augmentation des décaissements de l’État répond notamment à l’objectif de dépenses sociales envisagées par le gouvernement à travers le budget rectificatif exceptionnel publié en septembre 2025 en vue de faciliter la rentrée scolaire des enfants des familles vulnérables dans ce contexte économique difficile.
Statistiques des Finances publiques (MG)
Tableau 2
| | Exercice | e trim 3 | 4 e trim | Exercice |
| --- | --- | --- | --- | --- |
| | 2023-2024 | 2025 | 2025 | 2024-2025 |
| Recettes fiscales | 166 983,61 | 45 930,74 | 48 548,02 | 192 401,41 |
| Autres ressources | 195 217,50 | 51 047,91 | 49 416,15 | 192 025,85 |
| Emissions nettes Bons du TP | 162 738,45 | 41 958,84 | 44 452,27 | 169 254,85 |
| Ressources totales | 362 201,11 | 96 978,65 | 97 964,17 | 384 427,26 |
| | | | | - |
50 104,80
43 559,62
40 303,00
93 664,42
57 819,25
36 846,65
33 232,00
94 665,90
198 172,29
190 534,10
152 192,80
388 706,39
158 883,04
180 734,65
164 867,50
339 617,69
Dépenses budgétaires Autres décaissements dont Certificats de Trésorerie et autres Décaissement totaux
Sources : MEF/DCC_BRH
Les informations relatives aux échanges extérieurs font état d’une détérioration de la balance commerciale, d’une augmentation du niveau des transferts et d’une légère appréciation de la gourde par rapport au dollar ÉU. Ainsi, au cours des dix premiers mois de l’exercice, les importations ont atteint 3 642,70 millions de dollars ÉU, marquant un accroissement de 10,78 % par rapport à la même période de l’exercice précédent. Par ailleurs, la contreperformance du secteur de la sous traitance a eu des effets négatifs sur la progression des biens exportés sur l’exercice 2024-2025. Plombées par le recul des « Articles manufacturés » (-10,93 %), les exportations se sont inscrites en baisse sur l’intervalle considéré. Elles ont ainsi totalisé 635,93 millions de dollars ÉU, soit un recul de 8,41 % en glissement annuel. La contraction des exportations, combinée à la hausse des importations, a entraîné un creusement de 15,9 % du solde commercial pour la période allant d’octobre 2024 à juillet 2025. Parallèlement, les transferts privés reçus de l’étranger ont accusé une croissance annuelle de 22,03 %, totalisant 4 435,39 millions de dollars ÉU sur l’exercice 2025.
La progression des remises migratoires a ainsi soutenu l’offre de devise dans l’économie, ce qui a été favorable au marché des changes. Au cours de l’exercice 2024-2025, le taux de change a oscillé entre 130,1714 et 131,1427 gourdes pour un dollar pour s’établir à 130,6911 gourdes pour un dollar ÉU au 30 septembre 2025.
Ce fléchissement de près de 1 % du taux de référence témoigne de la poursuite de la relative stabilité du taux constaté depuis l’exercice 2024. Cette appréciation de la monnaie nationale s’observe dans un contexte d’atonie de l’activité économique. Elle traduit également les effets de la poursuite de la politique d’assèchement de l’excédent de liquidité menée par la BRH et du renforcement du segment formel du marché des changes consécutif à la mise en application de la circulaire 114-3 4.
4 Le maintien de l’application de la circulaire 114-3 a contribué à un encadrement renforcé des sous-agents affiliés aux maisons de transfert et à une meilleure canalisation des flux de devises vers le segment formel du marché des changes.
Source : BRH
Transferts privés sans contrepartie reçus de l’étranger
(en millions de dollars ÉU)
380
350
320
290
260
230
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
5
Graphique 6
Source : BRH
Balance commerciale (en millions de dollars ÉU)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
5
Graphique 7
Source : BRH
Taux de change nominal (fin de période)
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
2
5
Graphique 8
Source : BRH
Volume des transactions bancaires à l’achat et à la vente sur le marché des changes (en millions de dollars ÉU)
350
300
250
200
150
100
50
0
Trans. à la vente Trans. à l’achat
É C
I S
P O
É T
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## 4. DÉCISIONS DE POLITIQUE MONÉTAIRE AU QUATRIÈME TRIMESTRE 2025
Au cours du 4 e trimestre de l’exercice fiscal 2025, la Banque de la République d’Haïti
(BRH) a adopté une posture prudente de sa politique monétaire, témoignant de sa
volonté de consolider les acquis en matière de stabilité macroéconomique dans
un contexte encore marqué par des déséquilibres structurels et des incertitudes
persistantes. Consciente des vulnérabilités de l’environnement économique, elle a
privilégié la continuité de sa stratégie visant à maîtriser les excédents de liquidité du
système bancaire par le biais des émissions de bons BRH, tout en gardant inchangés
ses taux directeurs et les coefficients de réserves obligatoires.
En effet, les taux de réserves obligatoires sur les passifs en gourdes et en devises
étrangères révisés en août 2022, ont été reconduits à 40 % et 53 %
#### Government of Grenada
## MEDIUM-TERM ACTION PLAN (MTAP) 2022 – 2024
### Programme of Action for Economic Recovery, Transformation and Resilience
##### Published: January 2022
##### Table of Contents
List of Abbreviations 1
1.0 INTRODUCTION 3
2.0 BRIEF OVERVIEW OF NSDP: STRATEGIC FOCUS, N...
Show more ▾
#### Government of Grenada
## MEDIUM-TERM ACTION PLAN (MTAP) 2022 – 2024
### Programme of Action for Economic Recovery, Transformation and Resilience
##### Published: January 2022
##### Table of Contents
List of Abbreviations 1
1.0 INTRODUCTION 3
2.0 BRIEF OVERVIEW OF NSDP: STRATEGIC FOCUS, NATIONAL GOALS AND OUTCOMES 5
3.0 MEDIUM-TERM ECONOMIC CONTEXT 8
4.0 MTAP PREPARATION PROCESS 9
5.0 STRATEGIC PRIORITIES UNDER EACH NATIONAL GOAL AND OUTCOME 10
6.0 IMPLEMENTATION 20
6.1 Implementation Arrangements 20
6.2 Government’s Commitment to Results-based Implementation 23
7.0 MONITORING, EVALUATION AND REPORTING 24
8.0 RISK MANAGEMENT 25
9.0 APPENDICES 27
##### List of Abbreviations
| CCORAL | Caribbean Climate Online Risk Adaptation Tool |
| --- | --- |
| CPA | Child Protection Authority |
| CPR | Cardiopulmonary Resuscitation |
| GCF | Grenada Cultural Foundation |
| GDP | Gross Domestic Product |
| GEPAP | Gender Equality Policy and Action Plan |
| GOG | Government of Grenada |
| GIDC | Grenada Investment Development Corporation |
| GNCD | Grenada National Council of the Disabled |
| GTA | Grenada Tourism Authority |
| HAG | Housing Authority of Grenada |
| ICAO | International Civil Aviation Association |
| ICT | Information Communication Technology |
| MDAs | Ministries, Departments and Agencies |
| MOA | Ministry of Agriculture, Forestry, and Lands |
| MOCPMA | Ministry of Carriacou and Petite Martinique Affairs |
| MOCR | Ministry of Climate Resilience, the Environment, Fisheries, and Information |
| MOF | Ministry of Finance, Planning, Economic, and Physical Development |
| MOH | Ministry of Health, Social Security, and International Business |
| MOI | Ministry of Infrastructure, Public Utilities, Energy, Transport, and Implementation |
| MOICT | Ministry of Information Communications Technology |
| MOLA | Ministry of Legal Affairs |
| MOSD | Ministry of Social Development, Housing, and Community Empowerment |
| MOT | Ministry of Trade, Industry, Cooperatives and Caricom Affairs |
| MOTU | Ministry of Tourism and Civil Aviation |
| --- | --- |
| MOYSCA | Ministry of Youth, Sports, Culture and the Arts |
| MSME | Micro, Small, and Medium-Sized Enterprise |
| MTAP | Medium-term Action Plan |
| NaDMA | National Disaster Management Agency |
| NEWLO | New Life Organisation |
| NGO | Non-governmental Organisation |
| NHI | National Health Insurance |
| NIS | National Insurance Scheme |
| NSDP | National Sustainable Development Plan |
| NTA | National Training Agency |
| NTRC | National Telecommunications Regulatory Commission |
| PMO | Prime Minister’s Office |
| PSIP | Public Sector Investment Programme |
| RGPF | Royal Grenada Police Force |
| RMF | Results Monitoring Framework |
| SAEP | Climate-smart Agricultural and Rural Enterprise Programme |
| SDG | Sustainable Development Goal |
| SGU | St. George’s University |
| UHC | Universal Health Care |
| UWI | The University of the West Indies |
| TAMCC | T.A. Marryshow Community College |
| TDB | To be determined |
| TVET | Technical Vocational Education and Training |
##### 1.0 INTRODUCTION
This Medium-term Action Plan (MTAP) is a companion document to Grenada’s National Sustainable Development Plan (NSDP) 2020-2035. It is the operational strategy document designed to facilitate the implementation of the NSDP, which was laid in the Parliament in November 2019. This MTAP outlines Grenada’s sustainable development priorities that are aligned to the Sustainable Development Goals (SDGs) and sets out Government’ strategic programmes and actions for implementation during the period 2022-2024. In so doing, it provides strategic direction for the Public Sector, the main implementer of the NSDP. However, in some instances, the implementation of strategic programmes and actions by the Public Sector will require partnership with the Private Sector, Civil Society, NGOs, development partners and other stakeholders.
This MTAP 2022-2024 is prepared in the context of COVID-19 pandemic, which has ushered in new realities and imperatives. While the pandemic caused immense hardship at the individual level, at the macro level, it has not caused new development problems per se. Instead, The Covid-19 pandemic has exposed and, in some cases, exacerbated long-standing challenges such as: poverty; vulnerability; gender, income and other inequalities; social and other inequities; a large informal sector that is overrepresented by women; weak health systems; an education system that is ill-prepared for the 21 st century; inadequate focus on food and nutrition security; and inadequate social services and social protection systems. Fortuitously, the NSDP acknowledges these and other development challenges and proposes strategic actions to address them. As such, the strategic focus of the NSDP remains relevant. Moreover, the NSDP is aligned to the SDGs, which remain an important organising framework to pursue sustainable and inclusive development. However, the fluidity of the COVID-19 crisis requires a resetting of some priorities.
In April 2020, the Cabinet approved an Economic Taskforce as part of Grenada’s response to the COVID 19 pandemic with a specific mandate to make recommendations to rebuild the Grenadian economy inclusive of, but not limited to, identifying imperatives for job creation and business resuscitation as well as opportunities presented by the pandemic that, if seized, will make the Grenadian economy stronger and more resilient. Additionally, and more fundamentally, the Taskforce was mandated to consider structural shifts to position the Grenadian economy for long-term economic resilience. Accordingly, as part of the general Task Force for Rebuilding the Grenadian Economy, seven sub-committees were established with the specific objectives to provide recommendations and advice to the Cabinet on respective sectoral imperatives and actions (immediate, short term and medium-to-long term) to support economic recovery and transformation. The Sub-committees focused on priorities for:
Agriculture and Fisheries Construction Education (including private education – medical education) E-Commerce/Digitisation Micro, Small and Medium-sized Enterprises Tourism Wholesale, Retail Trade and Manufacturing
In September 2020, a national Budget consultation was held to ascertain the views of sectoral stakeholders on priorities for the 2021 Budget against the backdrop of the imperative to protect lives and
livelihoods as the country conducts its affairs in the midst of COVID-19. Stakeholders discussed priorities under the following seven priority areas:
Agriculture. Agri-business and Fisheries
Enhancing Social Capital and Citizen’s Wellbeing
Information Communication Technology (ICT)
Business Creation & Re-activation
Tourism and Hospitality
Economic Transformation and Strengthening Resilience
Several cross-cutting issues emerged from the economic taskforce and national Budget consultation that aligned with the Goals and Outcomes of the NSDP. Therefore, against the backdrop of the new COVID 19 social and economic realities, this MTAP 2022-2024 sets out a programme for economic recovery, transformation and resilience.
Agreed priorities will be implemented through the Public Sector Investment Programmes and national Budgets. The MTAP also focuses on results and accountability and uses the Results-based Monitoring Framework (RMF) that is set out in Chapter 7 of the NSDP 2020-2035 to monitor the development results being achieved that are expected to make a positive impact in the lives of Grenadians, as well as on Grenadian institutions.
The remainder of this document is organised as follows:
➢ Section 2: Recaps the strategic focus of the NSDP 2020-2035 including the National
Vision, Goals
and Outcomes.
➢ Section 3: Presents the Medium-term economic context, while
➢ Section 4: Outlines the MTAP preparation process.
➢ Section 5: Sets out the prioritised policies and actions for implementation under each National
Goal and Outcome, while,
➢ Section 6: Deals with implementation
➢ Section 7: Covers monitoring, evaluation and reporting, and
➢ Section 8: Risk management.
##### 2.0 BRIEF OVERVIEW OF NSDP: STRATEGIC FOCUS, NATIONAL GOALS AND OUTCOMES
The NSDP is the anchor for Grenada’s development agenda and priorities over the period 2020-2035. It provides strategic direction to steer the Tri-island State toward achieving Vision 2035: Grenada, a resilient and prosperous nation, with a conscious and caring citizenry, promoting human dignity, and realising its full potential through sustainable economic, social, and environmental progress for all.
The strategic focus of the NSDP rests on the three sustainable development pillars: society, economy, and environment, and as such, it is aligned with the SDGs. It identifies three overarching long-term goals, which are mutually reinforcing and are intended to foster balanced development, as one goal cannot be successfully achieved if the other two are not also successfully attained. The National Goals are mapped into eight National Outcomes, which are the short-term or medium-term improvements or positive changes in institutions, systems, communities, behaviours, living conditions, or knowledge that we aim for. Each National Outcome is linked to relevant SDGs. Undergirding the three pillars is a robust governance and institutional framework. The NSDP is “climate proofed as well as gender proofed,” meaning that it supports the integration of climate-related and gender-related aspects into the different chapters, as well as it points out challenges and opportunities that should be considered for development planning at national to community levels.
Figure 2.1 presents the strategic framework of the NSDP.
FIGURE 2.1: STRATEGIC FRAMEWORK OF THE NSDP 2020-2035
Grenada, a resilient and prosperous nation, with a conscious and caring citizenry, promoting Vision human dignity, and realising its full potential through sustainable economic, social, and environmental progress for all
Goal #1: High Human and Social
Goal # 2: Vibrant, Dynamic,
Goal # 3: National Development: Putting People at Environmental Competitive Economy with Goals the Center of Sustainable Sustainability and Supporting Climate and Development and Security Disaster-Resilient Transformation
Infrastructure
A Healthy Population Broad-based, Inclusive, and Climate Resilience and Hazard
National Sustainable Economic Growth and Risk Reduction
Outcomes Educated, Productive, Highly-Skilled, Transformation
Trained, and Conscious Citizens
Competitive Business Environment
Energy Security and Efficiency
A Resilient, Inclusive, Gender Sensitive, and Peaceful Society Modern Climate-and-Disaster Resilient Infrastructure
Sustainable
Development
Economy Environ Pillars Society
ment
Critical Success
Judicial Governance National Security Inclusive Governance Public Sector Governance Corporate Governance Quality Human Resource & Mindset Shifts
Factors
Macroeconomic Stability Collective Responsibility & Shared Value Partnerships Leadership
Authors’ conceptualisation.
The NSDP has been prepared to provide localised solutions to shape and secure the future of our nation. It aims to fundamentally improve the way we as Grenadians live, work, treat our natural environment, and interact with our institutions and each other. It identifies pathways to: (a) empower Grenadians to see themselves as being capable of achieving greatness; (b) change mindsets away from limitations toward possibilities; (c) elevate the level of consciousness, patriotism, spirituality, and care for each other; (d) strengthen communities, reduce inequality, and promote social justice; (e) transform the economy to make it more competitive, productive, and dynamic to expand opportunities for employment and entrepreneurship; (f) better preserve and protect Grenada’s natural environment; and (g) strengthen governance and institutions. It therefore provides an opportunity for significant national transformation. It puts forward strategic priorities that have been identified by Grenadians to address crucial social, economic, environmental, and other development challenges to help realise Vision 2035.
The Plan is firmly grounded in Grenadian realities and is built on the aspirations of the Grenadian people. It envisions the functioning of an economy and society that is premised on genuine partnership in which
the Public Sector, Private Sector, Civil Society, and wider Non-State Actors share collective responsibility for Grenada’s sustainable development and play complementary roles in the process of nation building.
Key features of the Plan include:
✔ It has a long-term strategic focus.
✔ It is built on the principles of sustainability and good governance that takes into account the society, economy and environment supported by strong institutions.
✔ It has stakeholder involvement and ownership.
✔ It has support from various political organisations.
✔ It takes into account the views and aspirations of Grenadians, including the youth.
✔ It elaborates a robust implementation framework.
✔ It focuses on results and accountability.
✔ It provides a structure for strategic and corporate planning in the Public Sector and Private Sector.
##### 3.0 MEDIUM-TERM ECONOMIC CONTEXT
The outlook for Grenada’s economy is broadly positive, largely dependent on global developments as they relate to COVID-19. Recovery of the Tourism sector specifically, depends on the rebound of global travel and economic conditions in major source markets, which have been impacted by the pandemic. Prospects for growth in advanced economies such as the United States (one of Grenada’s major source markets) are generally better than for emerging markets and developing countries due to better vaccination access and additional policy support. It is therefore anticipated that these factors would quicken economic recoveries in Grenada’s major source markets and in turn increase global travel, which would have spin off effects on economies like Grenada. The re-opening of the borders to commercial traffic from both regional and international markets, including the United States, should gradually ease the effects of the economic downturn in the Tourism sector primarily with spill-over effects in other sectors. However, strict adherence to protocols is needed to safeguard the health of citizens and visitors alike and to reduce the risk of further spread. Additionally, the return of students to the St. George’s University campus in August 2021 should boost demand and spur increased activity in other sectors, including manufacturing, real estate, and wholesale & retail. The outlook for the Construction sector is positive over the medium term with several public and private sector projects. Major hotel projects as well as several private housing and commercial-building projects continue across the Tri-Island. Moreover, significant investment in agriculture feeder roads, roads and bridges repairs, and schools' upgrades across the Tri-Island, and other projects to improve infrastructure and boost climate resilience are ongoing. This should provide much-needed employment and further increase aggregate demand. Consistent with the global outlook, inflation is likely to pick up in the medium term. The Medium-Term Fiscal Framework (MTFF) 2022-2024 has been formulated to support Government’s strategic post-pandemic agenda that is focused on recovery, resilience and transformation.
Table 3.1 presents the baseline medium-term economic projections as at August 2021. The projections have been prepared in the context of unprecedented uncertainty in the macroeconomic outlook and hence, the fiscal framework are baseline projections, which may be updated once the path of the pandemic and the macroeconomic outlook becomes clearer. It is against the projected medium-term macroeconomic context that the MTAP 2022-2024 is formulated.
TABLE 3.1: MEDIUM-TERM ECONOMIC PROJECTIONS
2022 2023 2024
| | | | |
| --- | --- | --- | --- |
| Real GDP (%) | 4.5 | 4.4 | 4.0 |
| | | | |
| Total Revenue (% of GDP) | 28.3 | 28.1 | 27.2 |
| | | | |
| Total Expenditure (% of GDP) | 31.2 | 26.3 | 21.8 |
| | | | |
| Overall Fiscal Balance (after grants) (% of GDP) | (2.9) | 1.7 | 5.4 |
| Primary Balance (after grants) (% of GDP) | (0.9) | 3.6 | 7.0 |
| | | | |
| Public Debt (% of GDP) | 67.0 | 65.2 | 63.5 |
| | | | |
Source: Ministry of Finance. Baseline Projections as at November 2021.
##### 4.0 MTAP PREPARATION PROCESS
Figure 4.1 depicts the preparation process for the MTAP 2022-2024. Drawing on the high-level strategic priorities that are set out in Chapter 3 of the NSDP 2020-2035, as well as sector strategies, and new imperatives occasioned by the COVID-19 crisis, the first draft of the MTAP was prepared with proposed concrete actions to be undertaken during the period 2022-2024. The indicative actions proposed were based on the seriousness of the problem as discussed during consultations for the preparation of the NSDP 2020-2035 and the feasibility of implementation during the three-year cycle.
The draft MTAP benefitted from consultations with Public Sector officials over the period August 27 th -29 th, 2021 (Appendix 1 is the list of consultations held). The draft MTAP was finalised based on feedback from the consultations on the strategic actions to be taken during the period 2022-2024 as well as the agreed performance indicators and targets.
FIGURE 4.1: MTAP 2022-2024 PREPARATION PROCESS
NSDP 2020-2035
• Vision 2035
• National Goals
• National Outcomes
• SDGs
• High-level strategic actions
• Indicative strategic actions and cost estimates
• Indicative targets
• Indicative indicators
Draft MTAP 2022-2024
Consultations
• Refined strategic actions
• Revised cost estimates
• Revised targets and indicators
• Agreed strategic actions
• Agreed cost estimates
• Agreed targets and indicators
Final MTAP 2022-2024
Authors’ conceptualisation
##### 5.0 STRATEGIC PRIORITIES UNDER EACH NATIONAL GOAL AND OUTCOME
As mentioned previously, COVID-19 has ushered in new imperatives, especially in the area of health. The health crisis highlights the need for Grenada and the other Caribbean countries to actively implement public health measures, in all areas of its function; that is, to prevent diseases, to prolong life, and to promote health. These measures should be undertaken through the organised efforts of individuals, communities, and institutions in society. Health education and promotion are significant to heighten sensitivity to traditional and emerging public health issues. The health promotion unit in the MOH must be given a greater share of responsibility in the protection of the health of residents in Grenadians. This unit must be properly resourced and mandated to regularly re-focus on current and emerging issues. Continuous public health education should be cross cutting in all sectors, including the Gig Economy (Informal sector), and delivered through an organised scheme. Public health emergency response planning is another integral part of public health system development. A public health response team must be organised and remain abreast of local, regional, and global public health events. Additionally, the response team must outline its strategies to respond to adverse events. Furthermore, there is now a pressing need to train and retain infectious health care workers from Grenada or other measures such as healthy food security and health education, as well as integrating sanitation systems for example. Infusing modern technology throughout the health ecosystem is a pressing and urgent priority. Political will and governmental support are essential to enable the effective functioning of public health emergency response organisations. Overall, the post-pandemic agenda will be focused on recovery, resilience and transformation for the inclus
MUL T I L A T E R A L INV E ST M ENT F U ND INT E R - AME R I CAN DEVELO P M ENT BANK
##### REMITTANCES TO LATIN AMERICA AND THE CARIBBEAN
February, 2002
#### Remittances by Selected LAC Countries
2001 (US$ millions) Cuba Mexico 930 Haiti
1,807 Dominican 9,273 959 810 Republic Honduras Jamaica ...
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MUL T I L A T E R A L INV E ST M ENT F U ND INT E R - AME R I CAN DEVELO P M ENT BANK
##### REMITTANCES TO LATIN AMERICA AND THE CARIBBEAN
February, 2002
#### Remittances by Selected LAC Countries
2001 (US$ millions) Cuba Mexico 930 Haiti
1,807 Dominican 9,273 959 810 Republic Honduras Jamaica 584 460 Guatemala Nicaragua 1,972 610 El Salvador
670 Colombia
1,400 2,600 Ecuador Brazil
905 Peru
103 Bolivia
### Introduction
R emittances -- the portion of international migrant workers’ earnings sent back to countries of origin – provide a distinctly human dimension to globalization. For generations, financial flows back to the “home country” have constituted an important means of support to family members remaining in less developed countries.
However, as the scale of migration has increased in recent years, leading to a dramatic acceleration in remittances, their social and economic impact has grown well beyond family relationships, and is now drawing national and international attention. Improvements in transportation, communication and information technologies make it much easier for migrant workers and their families, not only to maintain close personal contact, but also to create significant new opportunities for economic exchange across national borders.
Nowhere is this more apparent than in Latin America and the Caribbean (LAC) where remittances currently constitute a critical flow of foreign currency to the majority of countries. The implications for national economies—and the corresponding potential multiplier effect on GDP, consumption and investment—are becoming major financial and development policy issues for recipient countries throughout the region.
Interest in remittance-sending countries is also growing rapidly, well beyond the traditional focus on immigration policy, and the business concerns of money-transfer companies. For example, banks and credit unions in the U.S. are seeking ways to expand their customer base in fast growing populations; major employers of Latinos (e.g. food processors, hotel chains, and textile companies) as well as unions (restaurant and service workers) are looking to help provide better treatment for their workers and members. Meanwhile, civic groups are actively engaged in establishing hundreds of hometown associations (HTA’s) to improve social and economic conditions in local communities throughout Mexico and Central America.
As a result of this rapidly expanding landscape, the Multilateral Investment Fund (MIF) of the Inter-American Development Bank (IDB) began exploring various aspects of this phenomenon two years ago, and in May 2001 convened the first ever LAC Regional Conference on Remittances. Over a two-day period, some forty experts addressed the policy and programmatic implications of three major issues: i) documenting the growing size and role of remittances; ii)
promoting competition to help lower the cost of transactions; and iii) leveraging the potential economic development impact of remittances.
Over the past year, the interest and ideas generated from the 2001 Conference have led to a series of MIF remittance projects in Ecuador, Brazil, and Mexico, and several other projects are currently being developed. In addition, two national “Remittances Roundtable Discussions” were recently held in El Salvador and Dominican Republic.
As background for the second LAC Regional Conference on Remittances, February 26, 2002, the MIF has commissioned two separate reports:
1) A Survey of Remittance Senders, U.S. to Latin America, conducted by Bendixen and Associates, Miami, Florida.
2) Remittances to Latin America and the Caribbean: Money, Markets, and their Environment, by Dr. Manuel Orozco of the Inter-American Dialogue
The major findings of these two groundbreaking studies, statistics just now being released from the U.S. 2000 Census, and improved mechanisms for tracking remittance flows by Central Banks in Mexico, Central America, and the Caribbean, all provide a level of detail never before available. Much more work needs to be done before a total and accurate picture emerges of LAC remittances. But one thing is very clear at this point: remittances is a big and growing business which directly and profoundly affects the lives of tens of millions of families, and the economic prospects of the majority of countries in Latin America and the Caribbean.
The following analysis outlines current trends and issues regarding LAC, and provides a statistical summary or the latest information available on a number of topics:
1) Size of the LAC Remittances Market
2) Demographic Characteristics: Who, How, and How Much?
3) Economic Impact
## Remittances at a Regional level
M igration trends of Latin American and Caribbean (LAC) populations reflect not only movements to other parts of the world, but also demonstrate important shifts within the region as migrants seek opportunities in neighboring countries. For example, there are significant communities of Bolivian migrants in Argentina, Nicaraguans in Costa Rica, Guatemalans in Mexico, Peruvians in Chile, and Haitians in the Dominican Republic. When migrating to other regions, destinations within the European Union are increasingly favored. Latin Americans now make up more than 20% of immigrants living in Spain (mainly Ecuadoreans and Dominicans 1) and approximately 10% in Italy. Japan is currently experiencing a “return migration” of a quarter million temporary workers from Brazil, mostly the direct descendants of Japanese migrants who went to LAC during the first half of the 20 th century 2. However for the last two decades the preferred destination for the majority of Latin American and Caribbean migrants has been North America, and particularly the United States. According to the 2000 US Census, approximately 5% of the current US population (14.47 million people) and over 7% of the workforce were born in LAC countries. These workers typically send home an average remittance of about $200, seven to eight times a year. For the LAC region as a whole, this flow reached an estimated $23 billion ($23,000,000,000) from all sources during the year 2001. This represents not only a massive transfer of funds, but also involves more than 100 million (100,000,000) separate financial transactions annually.
1 The first two “New Year’s” babies born in Spain on Jan 1, 2002 were to Ecuadorean and Dominican parents 2 Three different Brazilian banks have now opened several branch offices in Japan in order to compete for over US$1.5 billion in remittances each year
Size of the LAC Remittances Market
Remittances to Latin America and the Caribbean, 2001*
| Country | Remittances (US$millions) | |
| --- | --- | --- |
| Mexico | $9,273 | |
| Brazil | $2,600 | |
| El Salvador | $1,972 | |
| Dominican Republic | $1,807 | |
| Ecuador | $1,400 | |
| Jamaica | $959 | |
| Cuba | $930 | |
| Peru | $905 | |
| Haiti | $810 | |
| Colombia | $670 | |
| Nicaragua | $610 | |
| Guatemala | $584 | |
| Honduras | $460 | |
| Bolivia | $103 | |
| TOTAL | $23,083 | |
The $23 billion transmitted to LAC during 2001 sustained the high annual growth rate of remittances over the past few years (approximately 10%). Almost 80% of these flows come from the United States, but Europe (particularly Spain, Italy and Portugal), Japan, and Canada all send considerable amounts as well. This continued growth is particularly noteworthy given the recession in the U.S. during 2001, which was compounded considerably by the terrorist attacks on September 11 th.
As remittances have become an increasingly important source of foreign exchange, Central Banks and other governmental authorities in Mexico, Central America and the Caribbean have developed improved systems to effectively identify, monitor, and report these financial flows. However, the “official figures” for several Andean countries, and Brazil, do not typically capture remittances which flow through non-regulated channels, and therefore are likely to be significantly under-counted. Because remittances to Ecuador, Peru, Colombia, and Bolivia are expanding rapidly, this disparity needs to be addressed in the near future.
##### 2) Demographic Characteristics: Who, How, and How Much?
Seven out of every ten LAC immigrants living in the U.S. send money home, most of them on a regular basis, and have been doing so for more than five years. Almost 60% of remitters have lived in the U.S. for over ten years, and more than 2/3 are aged 25-49. More recent immigrants are more likely to send remittances, and those making less than $20,000 are more likely to send
money than those making more than $40,000.
Most LAC immigrants send remittances through international money transfer companies such as
Western Union (30%), MoneyGram (11%), and dozens of smaller companies, which constitute less than 15% of the total regional market, but in some smaller countries have a dominant share.
Regulated financial institutions such as banks and credit unions comprise about 20%. Mail orders and networks of individuals travelling (encomenderos) also play a significant role in many countries. “Convenience”—not cost--is almost always cited as the most important reason in choosing a particular method to send remittances.
Increased competition in the “remittance industry” over the past three years has substantially reduced the cost of sending money to LAC, perhaps by as much as 25% on the average individual transaction. However, costs still remain relatively high, and can and should be reduced even
further.
Average transfer fee and exchange rate commission to send $200*
Cuba Colombia Jamaica D.R. Haiti Guatemala Nicaragua Mexico El Salvador *Does not account for additional costs such as: Cash checking fees and additional commissions levied in the
recipient country
25.58
18.71
6.31
19.25
4.25
18.16
4.22
20.6
1.00
15.17
3.64
17.56
1.00
11.59
6.54
15.06
0
5
10
15
20
25
30
Cuba Colombia Jamaica D.R. Haiti Guatemala Nicaragua Mexico El Sal.
Fee Exchange rate
Current costs to send remittances continue to vary widely both by countries and companies. The above table summarizes the major costs for sending $200 to nine LAC countries. Additional information provided in Dr. Manuel Orozco’s study “Remittances to LAC: Money, Markets, and their Environment” documents a wide range of costs charged by 70 remittance companies, banks and credit unions.
The typical cost of transmitting $200 to a LAC country (including transfer fee, exchange rate commission, check cashing fees, and other charges at the point of receipt) is estimated at approximately $25 or 12.5%. This translates into total fees approaching $3 billion associated with remittance transmittals to LAC.
Money transfer companies are currently providing convenient, fast, safe, and efficient services to the majority of LAC remittance senders. They also charge a premium for these services. Regulated financial institutions—banks and credit unions—typically charge less for these services, but they have not been traditionally involved/interested in this market for a variety of reasons. But that position is changing rapidly, as U.S. financial institutions are developing special programs targeted at marketing services, including remittance transactions, to LAC immigrants; and credit unions are seeking regulatory and other changes which would make it easier to reach this growing market.
Because of the paramount importance attributed to convenience, it is expected that private money transfer companies will continue to maintain a very high share of the LAC remittance market for the foreseeable future. But from a development perspective, formal financial institutions are clearly the preferred option. Only banks, credit unions, and other depository institutions can offer opportunities for savings accounts, checking accounts and various forms of low-cost credit to LAC immigrants. Only banks, credit unions, and regulated micro-finance institutions in recipient countries can leverage the economic impact of remittances, once received. It is for this reason, that the MIF and the IDB are actively engaged in helping to build a network of financial institutions in LAC countries which can then link up with formal financial institutions in developed countries to both lower transaction costs and increase the multiplier effect of remittances.
3) Economic Impact
The MIF survey of data from 14 LAC countries receiving 95% of the total value of remittances during 2001 found that these financial flows:
• Substantially exceeded Official Development Assistance (ODA) to each country; •
Accounted for at least 10% of GDP in five countries: Nicaragua (24%), Haiti (20%), El
Salvador (14%), Jamaica (13%), and Ecuador (10%);
Equaled 40% of total Foreign Direct Investment (FDI) to the region.
This survey fully confirms the importance of remittance flows for individual countries, as well:
Remittances to Mexico were more than twice the value of agricultural exports, exceeded
tourism revenues, and were two thirds the value of petroleum exports;
Earnings of Salvadorans residing in the United States exceeded the entire GDP of El
Salvador;
Jamaica received the highest volume of remittances per capita, followed by El Salvador and
the Dominican Republic;
Ecuador has the highest growth rate of remittance in the region over the past three year
period;
40% of families living in the Dominican Republic receive remittances;
Remittances to Colombia were equal to half the value of the country’s coffee exports.
If immigration patterns continue at current levels, the importance of remittances to the region will also grow significantly. At current growth rates, the projected cumulative remittances to Latin America and the Caribbean for the current decade (2001-2010) will reach more than $300 billion.
## AI AND FINANCIAL SERVICES
CURRENT STATE AND DIRECTION OF TRAVEL IN LATIN AMERICA AND THE CARIBBEAN
IIF Staff Paper
2025
Jessica Renier
Conan French
Gloria Sanchez Soriano
Daniel Mendez Delgado
Lokesh Bulchandani
### Acknowledgments
The Institute of International Finance (IIF) would lik...
World Bank Group Launches New Regional Partnership Strategy for the Eastern Caribbean
# World Bank Group Launches New Regional Partnership Strategy for the Eastern Caribbean
November 13, 2014
WASHINGTON, November 13, 2014 – The World Bank Group’s (WBG) Board of Executive Directors endorsed today ...
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World Bank Group Launches New Regional Partnership Strategy for the Eastern Caribbean
# World Bank Group Launches New Regional Partnership Strategy for the Eastern Caribbean
November 13, 2014
WASHINGTON, November 13, 2014 – The World Bank Group’s (WBG) Board of Executive Directors endorsed today the new Regional Partnership Strategy (RPS) for the Organization of Eastern Caribbean States (OECS) for the period 2015-2019, focused on creating the conditions for sustainable and inclusive growth in Antigua and Barbuda, Dominica, Grenada, St Kitts and Nevis, St Lucia and St Vincent and the Grenadines.
The new strategy proposes a lending program of about US$120 million for the period and, in addition, includes an allocation of about US$ 92 million for Dominica, Grenada, St. Lucia and St. Vincent and the Grenadines from the International Development Association (IDA), the arm of the World Bank Group that provides interest-free credits and grants to the world’s poorest countries as well as many small island developing states.
Over the last decade, the small Eastern Caribbean states have been trapped in a spiral of low growth, high debt and limited fiscal space. In the aftermath of the global financial crisis, unemployment has risen in most OECS countries, with youth unemployment becoming a source of particular concern, ranging from 34 percent in St Lucia to 42 percent in Grenada. The RPS is consistent with the regional approach adopted by the OECS Governments to tackle the long-standing issues of low growth and debt sustainability.
“This World Bank Group Regional Partnership Strategy, in its effort to promote growth, quite rightly focuses on regional integration and on the importance of coordination within the region and with the international financial institutions,” said Dwight Venner, Governor of the Eastern Caribbean Central Bank (ECCB).
Three new regional operations are proposed under the strategy, focusing on competitiveness, renewable energy, and human development. In addition, the World Bank is working in close partnership with the International Monetary Fund (IMF) and Caribbean Development Bank (CDB) to support governments’ efforts on fiscal adjustment and strengthening the financial sector.
“A number of countries have already embarked on strategies that foster investment in competitive niche sectors to unleash innovation and creativity, including tourism, agribusiness, health services and creative industries,” said Sophie Sirtaine, World Bank Country Director for the Caribbean. “ Continued reforms to restore fiscal sustainability and boost private sector growth are needed. This strategy aims to tackle these challenges head on, with flexibility to respond to external shocks and build social and climate resilience of these small economies,” she added. In line with the OECD national and regional development strategies, and in consultation and coordination with bilateral and multilateral partners, the World Bank Group identified three thematic areas for support:
- Enhancing productivity, competitiveness and employment: The cost of electricity in the OECS is among the highest in the world, and the WBG plans to support activities aimed at contributing to more predictable and lower energy prices to enhance competitiveness and inclusion. To improve the investment climate and attract foreign direct investment, the WBG will support increased access to regional broadband networks and development of ICT services; promote innovation and entrepreneurship through privately funded incubators and training; strengthen linkages between the tourism and agribusiness sector; as well as support the development and implementation of a comprehensive strategy to support the financial system.
- Modernizing the public sector: OECS governments are committed to implement fiscal consolidation measures to reduce fiscal deficits and promote sound and prudent debt management. In this effort, the WBG will support more effective and transparent public administrations, more robust institutional capacity and stronger frameworks for partnership with the private sector to meet the region’s growing infrastructure needs.
- Building social and climate resilience: OECS countries have universal education coverage, however learning achievement remains low and lack of adequate skills is cited as a top constraint by firms. The Bank will support vocational training for over 2,600 young people and help consolidate and improve the targeting of existing social protection systems. In addition, the Bank will continue to assist governments in strengthening their capacity to respond to natural hazards and adapt to climate change and rising sea levels.
The World Bank Group’s International Finance Corporation (IFC), the largest global development institution focused exclusively on the private sector, aims to expand its investment activities in the region’s financial sector and leverage private sector participation in infrastructure through public-private partnerships. During fiscal years 2009-2014, IFC committed US$165.6 million for six projects in the OECS. IFC also has advisory projects in every member state of the OECS, with a current portfolio of US$14 million focused on supporting the investment climate and public-private partnerships.
“IFC is working closely with private sector partners in the OECS to promote inclusive growth and job creation, supporting regional integration, addressing the challenges of climate change, and helping local economies recover from the financial crisis and build their resilience to economic shocks,” said Jun Zhang, IFC Senior Manager for the Caribbean. “In the coming years we expect to further develop investment support, especially in the areas of tourism, agribusiness, banking and financial inclusion, education, and renewable energy/energy efficiency.”
Improvements in the financial sector and development of the private sector in the OECS would also allow the WBG’s Multilateral Investment Guarantee Agency (MIGA) to play a stronger role and increase opportunities for investments.
###### Media Contacts
Christelle Chapoy
Tel : 1 (202) 361 4255
cchapoy@worldbank.org
Vanessa Bauza
Tel : 1 (202) 458-1603
VBauza@ifc.org
### Project document
Economic Commission for Latin America and the Caribbean (ECLAC)
## Barbados: public-private sector partnership
#### Basil Springer
This document has been prepared by Basil Springer, Consultant of the Division of International Trade and Integration,
Economic Commission for L...
Towards transformation of the growth and development strategy for Latin America and the Caribbean: the role of productive development policies
José Manuel Salazar-Xirinachs and Marco Llinás1
Received: 01/21/2024
Accepted: 01/21/2024
#### Abstract
Latin America and the Caribbean have a structur...
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Towards transformation of the growth and development strategy for Latin America and the Caribbean: the role of productive development policies
José Manuel Salazar-Xirinachs and Marco Llinás1
Received: 01/21/2024
Accepted: 01/21/2024
#### Abstract
Latin America and the Caribbean have a structural low-growth problem, which is explained largely by the fact that productivity has not increased, and has even declined, in recent decades. Although productivity growth will require continuous development of a medium- and long-term agenda aimed at improving “fundamentals”, this article proposes a new complementary strategy for growth, transformation of the production structure and employment for the region, based on a deepening of its productive development policies and improving their implementation. To this end, six guidelines are proposed that include governance, among other elements; and special emphasis is placed on the “how”, in other words how to successfully implement policies of this type.
#### Keywords
Economic growth, economic development, development policy, ECLAC, development strategies, industrialization, employment, productivity, competitiveness, governance, decentralization in government, regional development, Latin America and the Caribbean JEL classification O25, L52, N16
Authors
José Manuel Salazar Xirinachs is Executive Secretary of the Economic Commission for Latin America and the Caribbean (ECLAC). Email: jose.salazarx@un.org. Marco Llinás is Chief of the Division of Production, Productivity and Management of ECLAC. Email: marco.llinas@un.org.
1 The authors are grateful to Felipe Correa and Paul Wander for their technical support in the preparation of this article.
## I. Introduction
Latin America and the Caribbean face challenges in multiple dimensions of development. These include
high levels of poverty, informality and inequality (including gender inequality), weak capacity to generate
quality jobs, the poor quality of education and other deficits in this area, and shortcomings in social
protection and health. These are compounded by the region’s vulnerability to the effects of climate
change, the need to foster a more sustainable pattern of development, and deficiencies in institutional
quality and governance.
In addition to the aforementioned challenges, one of the most important pending tasks for
countries in the region is to overcome the low, mediocre and volatile growth syndrome that characterizes
them. This article argues that it would be easier and more viable to overcome the other challenges if the
countries were to achieve higher, sustained, inclusive and sustainable growth, particularly by increasing
their productivity —because, as Paul Krugman (1997, p. 9) stated, “Productivity is not everything, but
in the long term, it’s almost everything.” Unfortunately, in the last 15 years, total factor productivity in
Latin America has been declining, and this is what largely explains the mediocre economic growth that
the region has recorded over the last 10 years.
The article notes specifically that one of the keys (possibly the main one) to fostering higher,
sustained, inclusive and sustainable growth lies in productive development policies, and in their deepening
and better implementation.
In addition to this brief introduction, the article is organized in four sections. Section II makes a
diagnostic assessment of the low rate of economic growth in Latin America and the Caribbean and
its causes. Then, after reviewing some of the contributions made by the Economic Commission for
Latin America and the Caribbean (ECLAC) in the areas of structural change, technological development
and industrial policy, section III presents a new proposal by the Commission on productive development
policies to build a more productive, inclusive and sustainable future in the countries of the region.
Section IV contains an analysis of how to achieve this, proposing six guidelines for action in the area
of productive development policies. Lastly, section V offers final thoughts.
## II. The low-growth syndrome or trap in Latin America and the Caribbean
### 1. The region’s growth deficit
For years, the region has maintained low rates of economic growth, both relative to other periods in history
and compared to the rest of the world. Beyond the cascade of successive crises that have occurred
in recent years, this trend represents the region’s true crisis —and its most tragic and far-reaching one.
The figures speak for themselves, and the empirical data can be analysed in two different ways.
Firstly, between 2014 and 2023 the region grew by an average of just 0.8% per year (see figure 1). This
is even below the 2% rate achieved during the infamous lost decade of the 1980s, and is just one-fifth
of the average growth rate recorded in the 30 years spanning 1950 and 1979.
Secondly, estimation of the region’s economic growth trend over the same period shows that
the average for the almost three decades from 1951 to 1979 was 5.5% per year, while in the following
three decades, from 1980 to 2009, the average dropped by half to 2.7% per year (see figure 2). In the
15 years since 2010, the regional growth rate declined further to just 1.6% per year.
Figure 1
Latin America and the Caribbean: GDP growth rate, annual and average per decade, 1951–2023
(Percentages)
-6.8
6.7
3.7
0
2
4
6
8
10
1
9
5
1
1
9
5
3
1
9
5
5
1
9
5
7
1
9
5
9
1
9
6
1
1
9
6
3
1
9
6
5
1
9
6
7
1
9
6
9
1
9
7
1
1
9
7
3
1
9
7
5
1
9
7
7
1
9
7
9
1
9
8
1
1
9
8
3
1
9
8
5
1
9
8
7
1
9
8
9
1
9
9
1
1
9
9
3
1
9
9
5
1
9
9
7
1
9
9
9
2
0
0
1
2
0
0
3
2
0
0
5
2
0
0
7
2
0
0
9
2
0
1
1
2
0
1
3
2
0
1
5
2
0
1
7
2
0
1
9
2
0
2
1
2
0
2
3
1951-1959 4.9
2014-2023 0.8
1960-1969 5.7
1970-1979 5.9
1980-1989 2.0
1990-1999 2.7
2000-2009 3.0
2010-2019 2.0
Source:Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures.
Figure 2
Latin America and the Caribbean: growth in GDP and trend GDP, 1951–2024 (Percentages on the basis of constant dollars at 2018 prices)
2.2
0
2
4
6
8
10
1
9
5
1
1
9
5
3
1
9
5
5
1
9
5
7
1
9
5
9
1
9
6
1
1
9
6
3
1
9
6
5
1
9
6
7
1
9
6
9
1
9
7
1
1
9
7
3
1
9
7
5
1
9
7
7
1
9
7
9
1
9
8
1
1
9
8
3
1
9
8
5
1
9
8
7
1
9
8
9
1
9
9
1
1
9
9
3
1
9
9
5
1
9
9
7
1
9
9
9
2
0
0
1
2
0
0
3
2
0
0
5
2
0
0
7
2
0
0
9
2
0
1
1
2
0
1
3
2
0
1
5
2
0
1
7
2
0
1
9
2
0
2
1
2
0
2
3
GDP Trend GDP
Average trend growth (1951–1979): 5.5
Average trend growth (1980–2009): 2.7
Average trend growth (2010–2024): 1.6
Source:Economic Commission for Latin America and the Caribbean (ECLAC), on the basis of official figures.
Note: The Hodrick-Prescott filter was used to calculate trend GDP.
The annual growth rates displayed in the two figures confirm the well-known fact that growth in the region is highly volatile —even at the aggregate level— and more so when each country is analysed separately. The countries of the region clearly have ever less capacity to grow at high and sustained rates.
Of course, growth per se is not the ultimate objective. What is needed is inclusive growth, in other words growth that reduces levels of poverty and informality and generates good jobs and an environment that is more conducive to reducing inequality. Growth must also be green and sustainable,
respectful of nature and the planet.
An essential condition for the region to adopt a more inclusive and sustainable pattern of development is that it achieves a higher and more sustained growth rate. This is crucial, because the major structural transformations needed to change this pattern of development —the transition to renewable energies, electromobility, the circular economy, the care society and more dynamic growth-driving sectors, among others— require new investments, new and more environmentally friendly technologies, new technological ecosystems, new enterprises (or the growth of existing ones), new workforce skills and new infrastructure. If the region invests sufficiently to have access to all of these elements, the result will necessarily be growth that is not only sustainable and inclusive, but also faster and more sustained, diversified and technologically sophisticated. The need to attain a high and sustained growth rate to achieve sustainability and inclusion can also be considered from the opposite standpoint: underlying the 0.8% growth rate that the region has recorded over the last decade, from 2014 to 2023, there are no rapid or deep transformation and modernization processes aimed at sustainability and inclusion, aside from exceptions that do not alter the aggregate figures. There are more vicious circles than virtuous ones. The objective of the productive development policies described below in this article is to reverse this equation. The aim is to energize a reality in which transformations occur very slowly —to transform in order to grow and grow in order to change. Simple arithmetic shows that, assuming a GDP growth rate of 1%, the region would take more than 140 years to double its per capita GDP; with a 2% growth rate it would take 70 years, and with a 4% growth rate its per capita GDP would double every 24 years (see figure 3).
Figure 3 Time required to double per capita gross domestic product as a function of the GDP growth rate (Years and percentages)
0
20
40
60
80
100
120
140
160
0 1 2 3 4 5 6 7 8 9 10
GDP growth
35
70
24
18
14 9
Source:Economic Commission for Latin America and the Caribbean (ECLAC).
Note: The calculation assumes a population growth rate of 1% per year.
Growing at a rate of 4% or more on a sustained basis is not impossible; other countries have achieved this. For example, the Republic of Korea grew at over 7% per year for 40 years, from 1961 to 2000, increasing its per capita GDP by 17 times, from US$ 1,000 to US$ 17,000. Singapore and Taiwan Province of China report similar figures. China grew at a rate of 8.5% on average in the nearly four decades spanning 1981–2019, and increased its per capita GDP by 22 times, from just US$ 447 to US$ 10,156. More modestly, but equally impressively, Viet Nam grew at a rate of almost 5.0% in those same years, and increased its GDP per capita from US$ 500 to US$ 3,300 (see figure 4).
Figure 4
Latin America and the Caribbean and selected countries: per capita GDP, 1960–2022
(Thousands of constant dollars at 2015 prices)
0
10
20
30
40
50
60
70
1
9
6
0
1
9
6
2
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0
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1
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4
1
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6
1
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8
8
1
9
9
0
1
9
9
2
1
9
9
4
1
9
9
6
1
9
9
8
2
0
0
0
2
0
0
2
2
0
0
4
2
0
0
6
2
0
0
8
2
0
1
0
2
0
1
2
2
0
1
4
2
0
1
6
2
0
1
8
2
0
2
0
2
0
2
2
Singapore Republic of Korea Latin America and the Caribbean China Viet Nam
Source:World Bank, “GDP per capita (constant 2015 US$ )” [online] https://data.worldbank.org/indicator/NY.GDP.PCAP.KD.
There is no equivalent of these “Asian tigers” in Latin America and the Caribbean. Although the region’s per capita GDP in 1960 was higher than those of the aforementioned countries, by 1990 it had only managed to raise it to US$ 6,000 and, today, 30 years later, it amounts to US$ 8,500.2
This represents growth of just 1.2% per year; and the reality is that per capita GDP has contracted by
0.1% per year since 2014, reflecting a decade of impoverishment.
### 2. Reasons for sluggish growth according to economic growth theory
Multiple causes underlie the region’s sluggish growth. Although an exhaustive analysis is beyond the scope of this article, it is worth reviewing some of the reasons briefly, starting with the four factors considered by basic growth theory: land, labour, capital and productivity.3
Land —particularly its distribution and efficient use— is one of the basic factors driving production and growth. A country’s pattern of land use will determine whether its growth rate is sustainable. This first factor was the main driver of growth in the commodity export model. As countries develop, and manufacturing and services grow, the relative importance of land declines; but it remains a key element in a country’s development pattern, since it influences the geographical or territorial distribution of economic activities. Moreover, some authors have suggested that reforms related to the ownership and use of land contributed fundamentally to the successful industrialization and development process in some countries.4
2 According to the World Bank, in 1960 per capita GDP in Latin America and the Caribbean was US$3,295 (measured in constant dollars at 2015 prices). This was more than three times the per capita GDP of the Republic of Korea in the same year and about
13 times that of China.
3 See Solow (1956) and Swan (1956).
4 See Studwell (2014).
In several of the region’s countries, and at different stages of their development, rural populations
faced serious problems in gaining access to land, which led to a rapid expulsion of the population
from rural areas. Today, many countries have very low productivity in rural zones, except for those that
have developed modern commercial export agriculture, such as Argentina and Brazil.5 Although the
agriculture sector only accounted for about 5.6% of total regional GDP in 2021, it still generates more
than 14% of total employment in the region. Improving productivity in this sector could therefore have
a significant impact on structural change. However, as will be discussed below, increasing productivity
goes far beyond improving the distribution of land as a factor of production.
The second factor of production is capital, which represents the accumulated stock of both public
and private physical investment. Public investment includes roads, bridges, ports, electricity generation
and distribution, drinking and wastewater management and also, in the twenty-first century, broadband
Internet connectivity. All of this public-good infrastructure is a key ingredient for economic growth.
By contrast, private investment is the investment made by firms of all sizes in building infrastructure
and acquiring machinery and technology for the production process. Maintaining a high level of private
investment requires confidence in the country’s institutional and legal mechanisms; that the regulatory
environment is stable and minimizes bureaucratic procedures related to the incorporation of businesses
and investment projects (particularly micro-, small and medium-sized enterprises); that financial capital
and human talent are readily available; and that the public system attracts investment and collaborates
with investors in the establishment of enterprises, always seeking to uphold the highest labour and
environmental standards. The region has ample room for progress on all these issues, and the public
sector plays a key role in attracting investment and consolidating dynamic business networks that
contribute through innovation and technological development.
It is important to remember that private and public investment are not mutually independent,
but complementary. If the level and quality of public investment are insufficient, the level and quality
of private investment will not be sufficient either. For example, without logistics facilities, crops cannot
be harvested; without good ports, specialized by type of product, it is impossible to import or export
efficiently; and without digital connectivity, firms cannot compete in the technological world of the
twenty-first century, nor can they export modern services.
For the past 20 years, Latin America and the Caribbean has unfortunately been the region of
the world with the lowest rates of investment (see figure 5). This is one of the main reasons for the
region’s low rates of economic and productivity growth.
The third factor is labour, or human talent as it tends to be referred to today. In the 1950s, 1960s
and 1970s, the accumulation of human talent explained much of the growth achieved by Latin American
and Caribbean countries, owing to a high birth rate and a major expansion of primary and secondary
education. The quantity and quality of talent increased, resulting in higher levels of economic growth,
social mobility and expansion of the middle class.
By the end of the current decade, however, the demographic dividend is expected to end in all
countries of the region, which will mean a decreasing flow of young people into the labour market. Rapid
population ageing also contributes to slower growth of the labour force (ECLAC, 2022b, pp. 14–15).
This is compounded by the deterioration of education systems. In most Latin American and Caribbean
countries, the secondary school dropout rate is very high: on average, only 41.4% of the region’s labour
5 Given that agriculture is the main economic activity in rural areas, rural productivity is largely determined by the productivity of the agriculture sector; and, of the nine major sectors of economic activity, it is specifically this sector that has shown the lowest level of labour productivity in Latin America and the Caribbean since 1980. In 2014, the agriculture sector (including fishing, forestry and floriculture) accounted for 31% of the average labour productivity of the region’s economy, followed by commerce (54%) and personal social and community services (79%) (Stumpo and Correa, 2017).
force has completed secondary education.6 Moreover, in the case of those who do complete this level, the quality of learning is usually poor and has been deteriorating in recent years, as indicated by the tests results achieved in the Programme for International Student Assessment (PISA) (OECD, 2023).
Figure 5
Global fixed capital formation in different regions of the world, 1970–2022
(Percentages of GDP)
10
15
20
25
30
35
40
1
9
7
0
1
9
7
1
1
9
7
2
1
9
7
3
1
9
7
4
1
9
7
5
1
9
7
6
1
9
7
7
1
9
7
8
1
9
7
9
1
9
8
0
1
9
8
1
1
9
8
2
1
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3
1
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8
4
1
9
8
5
1
9
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1
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7
1
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1
9
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1
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0
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1
1
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1
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1
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1
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1
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8
1
9
9
9
2
0
0
0
2
0
0
1
2
0
0
2
2
0
0
3
2
0
0
4
2
0
0
5
2
0
0
6
2
0
0
7
2
0
0
8
2
0
0
9
2
0
1
0
2
0
1
1
2
0
1
2
2
0
1
3
2
0
1
4
2
0
1
5
2
0
1
6
2
0
1
7
2
0
1
8
2
0
1
9
2
0
2
0
2
0
2
1
2
0
2
2
East and Southern Africa
West and Central Africa East Asia and the Pacific
European Union Europe and Central Asia
Latin America and the Caribbean
Middle East and North Africa North America
South Asia
Sub-Saharan Africa
Source:World Bank, “Gross fixed capital formation (% of GDP)” [online] https://data.worldbank.org/indicator/NE.GDI.FTOT.ZS.
In the case of higher education, the coverage rate is still far below those of more developed countries: in 2018, the gross coverage rate in Latin America and the Caribbean was 52%, compared to
77% in Europe and North America (Valenzuela and Yáñez, 2022).7 Moreover, relatively fewer professionals in science, technology, engineering and mathematics (STEM) subjects graduate from universities than in other countries. This is a problem, because this is the professional profile that is most needed in the productive paradigms of the twenty-first century. In short, another of the key elements contributing to the low economic growth syndrome in the region is the labour force, which displays ever slower growth rates and problems in the quality of
Working Paper 2014-1
## What Drives Behavioral Intention of Mobile Money Adoption? The Case of Ancient Susu Saving Operations in Ghana
Contact: Dr. Eric Osei-Assibey Department of Economics University of Ghana eoassibey@ug.edu.gh
Abstract
This study provides insights into the ancient susu saving...
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Working Paper 2014-1
## What Drives Behavioral Intention of Mobile Money Adoption? The Case of Ancient Susu Saving Operations in Ghana
Contact: Dr. Eric Osei-Assibey Department of Economics University of Ghana eoassibey@ug.edu.gh
Abstract
This study provides insights into the ancient susu savings operation in Ghana and the behavioral intention or willingness
of susu collectors and users to adopt a mobile money (MM) platform as part of their savings practices. More specifically,
this study investigates factors that determine one’s intention to adopt the MM space as a savings channel, particularly in
place of more traditional ways of saving among many people in West Africa. Using field survey data from market traders
and susu collectors in several local markets in Ghana, and applying Innovation Diffusion Theory (IDT) and Technological
Adoption Model (TAM) conceptual frameworks, this study has produced some interesting findings. Generally, among the
susu collectors, we found perceived risk, education level, relative advantage, and the age of the collector to be
statistically significant in influencing the behavioral intention of MM adoption. With respect to susu users, we found
such factors as trialability, observability or awareness, compatibility or education attainment. The study also finds the
influence of the physical presence of the susu collector to be statistically significant in influencing one’s behavioral
intention to accept MM. This, which was found to be the primary reason motivating susu users to honor their savings
commitment, is potentially an important factor in explaining why respondents were not sure whether an MM platform
would be an effective method of saving. These findings have important implications for MM uptake and the
modernization of the susu operations in Ghana. While MM uptake remains significantly low, these findings suggest that
the way to increase uptake is to create more awareness, embark on financial literacy programs, and reduce mistrust and
perception of risk of the MM platform.
Acknowledgements: The author wishes to sincerely thank IMTFI, University of California, Irvine for providing financial support to carry out this study. Preliminary findings of this paper were first presented at the 2012 IMTFI Annual Conference at the University of California, Irvine.
Keywords: Mobile Money, Susu, Adoption, Behavioral intention, Technology uptake
Introduction
The susu savings scheme has for many years served as an important avenue for savings for low
income and financially excluded people in countries across West Africa. On a daily basis, these susu
operators ‘walk’ to their clients to collect small amounts of savings and return the full amount
(minus a day’s collection as a commission) usually at the end of each month. Even though there are
about four types of susu schemes in the country including a type that looks like the well-known
rotating savings and credit association (ROSCA), the most common one is where an individual susu
operator reaches an agreement with a client (e.g., traders in the market, hawkers, barbers,
hairdressers, etc.) on an amount, commission and intervals for collection, and then make daily (or
weekly) rounds to collect the amount. These rounds occur sometimes on foot, bicycle, or motor
bikes, and recorded on a simple card often kept by the client.
While the cost of putting small amounts of savings in far away bank accounts on daily or weekly
bases is too high for low income earners, it has also been too expensive for formal savings banks to
develop cost effective models to expand their physical reach into poor and rural areas, hence their
exclusion (Osei-Assibey, 2009).
Despite the risks involved in the operation such as breach of trusts or being prone to robbery
attacks, Susu (deposit) collectors have used this socio-financial infrastructure to help poor people
save, giving credence to the fact that the poor can also save (Aryeetey, 1994). Furthermore, beyond
leading to lower transaction costs (Ashraf, Karlan and Yin (2006), it is believed that susu collectors
offer stronger social capital and micro-savers derive more social benefits than formal financial
institutions can offer (Alabi et al, 2007). Ashraf, Karlan and Yin (2006) observe that people still
demand deposit collectors because of a simple “planning fallacy” - some clients may want deposit
collection because they know they manage their time poorly, suffer from procrastination, are
forgetful, are overly optimistic about their available time, or see deposit-collection as an easy way to
ensure that they follow through with their intentions. This factor, among others, caused participants
in an experimental study to increase their savings by about 25%, according to Karlan and Yin (2006).
However, with the rapid diffusion and penetration of mobile phones in developing countries and
with the recent success stories of the M-PESA mobile money banking the poor in Kenya, many
Savings and Loans (S&L) companies and Microfinance Institutions (MFIs) are harnessing the idea of
adopting the mobile money (MM) transfer system in their deposit collection models to replace the
traditional susu collection model in Ghana. There is also growing evidence that providing SMS text
reminders to clients on MM saving platform encourages more savings among the poorest
households in a number of countries (Karlan et al 2012). While this will significantly reduce
transaction costs, and serves as a more secure and efficient way to deposit money, MM uptake
remains low, and there is still no clear evidence to suggest that susu operators or users will be willing
to accept mobile money in place of traditional susu operations. This study therefore seeks to
investigate the determinants of behavioural intention or willingness to adopt MM money by both
collectors and market traders who patronize susu. More specifically, the study seeks to investigate
the following questions: What factors are influencing the use of SUSU as a store of value/micro
saving infrastructure? Are there any social or cultural practices that bind people to these services?
And what factors determine the susu operators and users’ willingness to accept or reject mobile
money in place of the traditional susu?
The paper is organised as follows. Following this introduction, Section Two briefly describes susu
operations in Ghana. Section Three presents the theoretical framework of the analysis while Section
Four presents model specification and data collection methodology. Section Five presents the survey
results and the findings from a regression analysis. Section Five concludes with policy implications of
the findings.
Overview of Susu Operation and Mobile Money Penetration in Ghana
The term SUSU is one of Africa’s most ancient forms of informal banking. Much like many places in
the world, the concept of traditional or informal finance is not new in Africa. Savings and credit
groups have operated for centuries as the "Susu" of Ghana, "chit funds" in India, "tandas" in Mexico,
"arisan" in Indonesia. Even though its true origin is unknown, SUSU is believed to have originated
from Ghana in Akan 1 language which literally means “small small” and can be taken to represent the
pooling of money resources from numerous sources to get a larger sum. Today in Ghana, the term
Susu is used in reference to individual savings collectors and rotating savings and credit associations
(ROSCA). The Susu collectors provide informal means for many Ghanaians, particularly the urban
poor, to save and access their own money and also gain limited access to credits needed to start up
small venture projects that in many cases benefit the entire community. These Susu operators help
people within the lowest income brackets to save small amounts since the cost of putting limited
amounts of savings in a far away bank accounts on a daily or weekly basis is too high to make sense
for poor people. Besides, it has been too expensive for formal savings banks to develop cost
effective models to expand their physical reach into poor and rural areas or handle large volumes of
low-value payment and savings transactions - hence Susu operations in these areas.
As a long standing traditional saving and credit scheme in Ghana, the SUSU collectors offer very
flexible financial services, patronized mainly by small traders at the market, micro-entrepreneurs
selling from roadside stalls, and households with meagre incomes from farm or other labour work.
The operations of the Susu collectors principally involve reaching an agreement on an amount,
commission, and intervals for the collection of contributions from savers. Collectors make daily (or
weekly) rounds - sometimes on foot, bicycle or motor bikes - to collect the amount from each
customer or client over the agreed period. The lump sum amount to be paid at the end of the period
depends on the agreement reached and the type of Susu operator groups a customer joins. Even
though there are about four types of Susu types in the country including a type that looks like the
well known rotating savings and credit association (ROSCA), the most common one in the sub-region
is where individual Susu operators collect daily amounts set by each of their clients (e.g., traders in
the market, barbers, hairdressers etc) and return the accumulated amount at the end of the month,
minus one day’s amount as a commission.
The SUSU system functions as a financial management service, where depositors commonly use the
accumulated funds as working capital to restock their supplies. According to economist Aryeetey
(1994), by pledging to set aside savings for their Susu collector, market women protect their savings
from the incessant appeals from family and friends for financial assistance-as traders often carry
their daily sales with them to their houses. There is therefore no doubt that these Susu groups have
used this socio-financial infrastructure to help poor people save minute amounts of money and
accumulate them over a period for specific goals such as acquisition of land, cattle and for payment
of school fees in the developing world. However, the Susu operation is bedeviled with a plethora of
challenges that range from underdevelopment, fragmentation, disorganisation and weak linkages
with other financial sectors as well as lack of transformation and modernization of their operations
since its inception (Osei-Assibey, 2011). The Susu contract does not involve any legal documentation
or paperwork, except for a piece of card/book where daily collections are recorded. They are
primarily based on trust through personal or business relationships. These obvious operational
inefficiencies have culminated in high transaction costs that have restricted scale and limited the
scope of operations, and thus do not contribute to solving the saving needs of the large unbanked
population within the informal sector.
1 SUSU is also found among the Yorubas and Igbos in Nigeria as “ESusu” and “iSusu” respectively, while it is called “Nago” in Ivory Coast and Yesyesas and Jojuma in Togo.
With the rapid diffusion of technological infrastructure and advancement, the issue is how the Susu
operation can leverage modern technology to reduce these costs and inefficiencies and still make
savings easier for the urban poor. Today, mobile phones are already being used by many to make
payments, send money to family members and store monetary value safely in Ghana. However,
while mobile phone penetration was more than 25 million as at December 2012, only 4.1 million
actually subscribed to mobile money. Beyond the fact that MM uptake and usage remain low, active
users remain even lower. The three main telephone companies in Ghana that currently provide
mobile money services: MTN, Airtel and Tigo, have the following subscriber base in 2012: MTN
Mobile Money - 5% (active users of 2 million accounts), Tigo Cash -13% (active users of 1.2 million
accounts) and Airtel Money - 2% (active users of 900,000 accounts). This low uptake is despite the
excitement around mobile money in the payments space across many developing countries, which
according to anthropologist Bill Maurer (2012) is due to three convergence factors: interest among
financial and telecommunication companies, increasing awareness of MM in global south, and the
increasing attention given to microfinance.
Theoretical Framework of Adoption
Although the theoretical and empirical literature on mobile money is growing in recent times,
evidence of the social willingness to accept and use mobile money as a dematerialized store of value
to replace pre-existing, long-standing micro-saving systems remains scarce. However, various
theories have been proposed in the last couple decades to examine factors underlying adoption or
intention to use a new technology. Notable among such theories are Roger’s (1962) innovation
diffusion theory (IDT) and Davies’ (1989) technology acceptance model (TAM).
Innovation Adoption Theory
According to Rogers (1962), Innovation Diffusion Theory (IDT) seeks to explain how, why, and at
what rate new ideas and technology spread through societies and cultures. Rogers who popularized
the theory in Diffusion of Innovations (1962), defines innovation as “an idea, practice or object that
is perceived as new by an individual or another unit of adoption”, while diffusion is “the process by
which an innovation is communicated through certain channels over time among the members of a
social system” (1995).
Rogers further pointed out that the diffusion of an innovation occurs through a five–step process -
which also goes through a series of communication channels over a period of time among the
members of a similar social system. This process was first outlined as awareness, interest,
evaluation, trial, and adoption. However, Rogers later reformulated the adoption process to
knowledge, persuasion, decision, implementation, and confirmation. Due to the individualistic
nature of the decision stage, Rogers notes that it is the most difficult stage to acquire empirical
evidence (Rogers 1962). At this stage, the individual considers the concept of the change in practice,
weighs the advantages/disadvantages of using the innovation, and decides whether to adopt or
reject the innovation.
Rogers (1995) subsequently defines five intrinsic characteristics of innovations that influence an
individual’s decision to adopt or reject an innovation which include relative advantage, compatibility,
complexity, and trialability and observability. Relative advantage is defined as the degree to which
an innovation is considered as being better than the practice it supersedes. This concept has been
found to be one of the best predictors of the adoption of an innovation. Compatibility refers to the
degree to which innovation is regarded as being consistent with the potential end-users’ existing
values, prior experiences, and needs. Complexity is the end-users’ perceived level of difficulty in
understanding innovations and their ease of use. Trialability refers to the degree to which
innovations can be tested on a limited basis. Observability is the degree to which the results of
innovations can be visible by other people. These characteristics are used to explain end-user
adoption of innovations and the decision-making process.
Bagozzi, et al. (1992), however, argues that because new technologies such as personal computers
are complex and an element of uncertainty exists in the minds of decision makers with respect to
the successful adoption of them, and that people form attitudes and intentions toward trying to
learn to use the new technology prior to initiating efforts directed at use, actual usage may not be a
direct or immediate consequence of such attitudes and intentions. According to this study, attitudes
towards usage and intentions to use may be ill-formed or lacking in conviction, or else may occur
only after preliminary attempts to learn to use the technology evolve.
Technology Adoption Model
Another alternative theory in technological adoption, which has also received a lot of theoretical and
empirical support in recent times, is the Technology Acceptance Model (TAM) (Chin & Todd, 1995,
Igbaria, et al., 1997; Venkatesh & Davis, 2000; Horton, et al., 2001, Tobbin, 2011; Lee, et al., 2011).
TAM is an information systems theory that models how users come to accept and use a technology
(Davis et al, 1989). The model suggests that when users are presented with a new technology, two
main factors influence their decision about how and when they will use it. These factors are
Perceived usefulness (PU) - this was defined by Davis (1989) as "the degree to which a person
believes that using a particular system would enhance his or her job performance", and Perceived
ease-of-use (PEOU) - Davis defined this as "the degree to which a person believes that using a
particular system would be free from effort".
Both the IDT and TAM have been continuously studied and modified, expanded or upgraded with
additional constructs. 2 For example, Barnes and Huff (2003) extended IDT by including perceived
trust as new constructs. Also, Tan and Teo (2000) included perceived risk; subjective norm and self
efficacy. Pedersen et al (2001), posit that the TAM should be extended to include subjective norm
and behavioural control factors. In recent times, a number of studies have tempted to integrate the
two studies in explaining adoption since according to such studies TAM and IDT are similar and
complementary among some factors and that each one of them on its own cannot adequately
explain acceptance/adoption or rejection of any new technology (Wu and Wang 2005; Lee et al.,
2011). Furthermore, there is evidence to suggest that the integration of these two theories could
provide an even stronger model than either one standing alone (Wu & Wang, 2005; Chen, et al.,
2002, Lee et al., 2011 and Tobbin, 2011).
Model Specification and Hypothesis
Although IDT and TAM are models formally designed to study adoption of mobile phones, studies on
the adoption of mobile money, which can be seen as an extension of previous studies on mobile
banking and payment systems, have also benefitted from an application of these models. Tobbin
(2011) therefore argues that the determinants of adoption in mobile banking and the mobile
payment environment should be applicable to mobile money. Following the previous literature
review, the present study proposes an integrated conceptual model of a technology adoption
process (in this case, an adoption of mobile money transfer technology by Susu operators and users)
based on the IDT and TAM theoretical frameworks. Figure 1 shows a conceptual framework of the
adoption process suggested by Rogers (1995) and Davies (1989). I argue from the previous studies
2 The two major upgrades for TAM are the TAM 2 (Venkatesh & Davis 2000 & Venkatesh 2000) and the Unified Theory of Acceptance and Use of Technology (or UTAUT, Venkatesh et al. 2003). A TAM 3 has also been proposed (Venkatesh & Bala 2008).
that IDT and TAM are extremely similar in some elements and supplement one another (Wu, 2004, Tobbin 2011). In that regard, I argue further that the five innovative characteristics (compatibility, complexity, relative advantage, trialability and observability) and TAM constructs such as perceived usefulness and perceived ease of use can serve as important determinants of acceptance or rejection of MM in the Susu operation. Other determinants considered are perceived trust, transactional cost and perceived risk. Figure 1: Conceptual Framework of Adoption Process of New Technology (Mobile Money)
Knowledge Persuasion Decision Implementation Confirmation
Reject Accept
RA
CP
CPX
OB
PTRUST
TR
PCOST
Disciplined reciprocity: Susu as a moral economic institution of social protection in Ghana
### Accepted Paper
Yvonne Boatemaa-Yeboah (University of Pretoria)
#### Paper long abstract
Research on social protection in the informal economy has largely prioritised state-led interventions or mater...
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Disciplined reciprocity: Susu as a moral economic institution of social protection in Ghana
### Accepted Paper
Yvonne Boatemaa-Yeboah (University of Pretoria)
#### Paper long abstract
Research on social protection in the informal economy has largely prioritised state-led interventions or material support mechanisms, often overlooking everyday financial practices through which informal workers organise security and manage risk. In Ghana, susu, a rotating savings and credit arrangement remains a central but under-theorised institution within informal markets.
Using a qualitative methodology, this study draws on in-depth interviews with 55 food traders to examine the moral economy underpinning susu practices at the Madina Market in Accra, Ghana. It analyses how these arrangements function as informal systems of collective risk pooling and social protection, exploring traders’ accounts of participation in susu, obligations of contribution, enforcement mechanisms, and meanings attached to trust, reciprocity, and discipline.
The findings reveal that susu operates as a robust social safety net governed by disciplined reciprocity, providing essential social protection for participants. There are primarily two typologies of susu, playing complementary roles. The Rotating Savings and Credit Association (ROSCA), a group-based model where members periodically contribute to a common pool distributed in rotation while the individual or personal susu, more prevalent among traders, involves a one-on-one relationship with a susu collector.
Beyond its financial function, susu is embedded in a moral economy shaped by trust, reputation, and shared responsibility, offering predictability and assurance in contexts marked by income volatility and limited formal protection. The study contributes to social protection theory by foregrounding informal finance as a moral-economic institution, calling for a greater analytical attention to collective, trust-based mechanisms in understanding protection beyond formal insurance models.
Panel P30 Beyond financial systems’ access: Indigenous knowledge, financial justice & community agencies roles Session 1 Thursday 9 July, 2026, 9:00- 10:30
Susu (informal loan club) - Wikipedia Jump to content From Wikipedia, the free encyclopedia Type of informal savings and credits A susu or sou-sou or osusu or asue (also known as a merry-go-round , [ 1 ] Partner , or Pawdna in Jamaica; [ 2 ] sol in Haiti; [ 3 ] san in Dominican Republic; [ 4 ] and N...
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Susu (informal loan club) - Wikipedia Jump to content From Wikipedia, the free encyclopedia Type of informal savings and credits A susu or sou-sou or osusu or asue (also known as a merry-go-round , [ 1 ] Partner , or Pawdna in Jamaica; [ 2 ] sol in Haiti; [ 3 ] san in Dominican Republic; [ 4 ] and Njangi in Cameroon [ 5 ] ) is a form of rotating savings and credit association , a type of informal savings club arrangement between a small group of people who take turns by throwing hand, as members call it. The name is used in Africa (especially West Africa ) and the Caribbean . [ 6 ] Each member of the group periodically contributes the same amount of money to a common fund; the total contributions are then disbursed to a single member of the group. After each period, the recipient changes so that every member eventually has the opportunity to be a recipient of funds. Participants of a susu do not make a profit. Instead, small periodic contributions are combined into a larger lump sum of the same total value, with the susu acting as a savings club. [ 7 ] Overview [ edit ] A member who receives a distribution early on effectively receives a loan. They collect a larger sum of money early and "repay" as they make contributions going forward. A member who receives a distribution toward the end of a rotation has effectively been "saving" their contributions leading up to the disbursal. [ 8 ] [ 9 ] Traditionally the arrangement is conducted in cash and without any interest charged. The organizer of the sou-sou may be compensated for their efforts as a courtesy. Since a sou-sou is not a written or legal contract it relies on personal trust to discourage malfeasance. For this reason it is more likely that the participants are members of the same community and know each other. The concept of a susu is used throughout the world and has over 200 different names that vary from country to country. The funds are generally gathered with a set amount contributed from family or friends each week. [ 10 ] An estimated three quarters of Caribbean immigrants in New York participated in susus during the 1980s. [ 11 ] Susu scams [ edit ] The "Blessing Loom" is identical to the classic " airplane game " pyramid scheme, with a circular diagram obscuring the pyramid structure. Scammers have set up pyramid schemes which imitate or pretend to be susus. In contrast to traditional susus (in which participants only receive the money they put in without profit), these schemes promise a profit. Additionally, these scheme promise rewards for recruiting more people to the susu, in effect making it a pyramid scheme. [ 8 ] [ 6 ] [ 12 ] These fake susu scams (also known as "blessing looms" or "gifting circles") increased during the 2020 COVID pandemic , and are often targeted to African-Americans under the guise of being the traditional African and Caribbean practice. [ 13 ] [ 7 ] See also [ edit ] Osusu Susu account Tanda , the Latin American version of the system Rotating savings and credit association Hui (informal loan club) Christmas club , a one-person version of saving small amounts with a predetermined payout date References [ edit ] ↑ How To Buy A Goat When You're Really Poor? Join A "Merry-Go-Round" ↑ "Jamaica's ROSCA: The Partner System" ↑ "Haitian Informal Finance" ↑ https://academicworks.cuny.edu/cgi/viewcontent.cgi?article=1004&context=dsi_pubs [l ↑ "The Njangi: An African Financial Support System - African Vibes" . 16 May 2019. 1 2 "Investor beware: Traditional African 'sou-sou' savings clubs have become the latest pyramid scheme" . Pittsburgh Post-Gazette . Retrieved 2021-04-21 . 1 2 Singletary, Michelle. "Perspective | Some Black promoters of illegal pyramid schemes are using the Black Lives Matter movement to justify 'sou-sou' scams" . Washington Post . ISSN 0190-8286 . Retrieved 2021-04-21 . 1 2 "A real or fake savings club?" . Consumer Information . 2020-08-10 . Retrieved 2021-04-21 . ↑ "Everything You Ever Wanted to Know About Those Sou-Sou Savings Clubs African and Caribbean Women Love" . Essence . Retrieved 2021-04-21 . ↑ Abramsky, Sasha (October 22, 2000). "Newcomers Savings and Loan" . The New York Times . p. CY4 . Retrieved September 9, 2018 . ↑ "Jamaican Emigres Bring Thrift Clubs to New York" . The New York Times . June 19, 1988. p. 34 . Retrieved September 9, 2018 . ↑ Chatman, Samantha (2020-09-22). "Boards, sou sou, blessing looms: IL AG, BBB warn of uptick in pyramid schemes in Chicago area" . ABC7 Chicago . Retrieved 2021-04-21 . ↑ Singletary, Michelle. "Perspective | Illegal pyramid schemes are on the rise during the pandemic" . Washington Post . ISSN 0190-8286 . Retrieved 2021-04-21 . External links [ edit ] Sou-sou: Black immigrants bring savings clubs Stateside Sou-sou: Africa savings pool scheme in America FTC article on differentiating real susus from scams Retrieved from " https://en.wikipedia.org/w/index.php?title=Susu_(informal_loan_club)&oldid=1322590331 " Categories : Rotating savings and credit association Microfinance in North America Microfinance in Africa Informal economy in North America Informal economy in Africa Economy of the Caribbean Financial services in Ghana Afro-Caribbean culture Hidden categories: Articles with short description Short description is different from Wikidata Search Search Susu (informal loan club) 1 language Add topic
Back to Blog Specialized Research Diaspora Consumer Research: Understanding Caribbean Expat Markets December 28, 2025 • 10 min read • By Hope Research Group The Caribbean diaspora represents one of the world's most significant transnational consumer markets. With 9.6 million people living outsi...
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Back to Blog Specialized Research Diaspora Consumer Research: Understanding Caribbean Expat Markets December 28, 2025 • 10 min read • By Hope Research Group The Caribbean diaspora represents one of the world's most significant transnational consumer markets. With 9.6 million people living outside their countries of birth and $18.4 billion flowing annually in remittances (World Bank Bilateral Remittance Matrix, 2024), understanding diaspora consumers is essential for brands seeking to maximize Caribbean market opportunity. The Caribbean Diaspora Landscape Diaspora by the Numbers (2024) 9.6M Global Caribbean diaspora $18.4B Annual remittances, 2024 (World Bank Bilateral Remittance Matrix) 31% Of Caribbean-born living abroad Geographic Distribution The Caribbean diaspora concentrates in key markets: United States: 4.5 million Caribbean immigrants; 9.1 million including second generation+. 90% from Cuba, Dominican Republic, Jamaica, and Haiti United Kingdom: 1.0 million, major community in London (250,000+) France: 1.2 million, primarily from French Caribbean territories Canada: 750,000, concentrated in Toronto Netherlands: 850,000, from Suriname, Curacao, Aruba Spain: 417,000 Chile: 209,000 Country of Origin Profiles Jamaica: ~2 million diaspora globally; 800,000 in UK, 780,000 in US, 300,000 in Canada Haiti: 3+ million living abroad; political instability driving continued migration Guyana: 36.4% of population lives abroad-highest proportion in Caribbean Trinidad and Tobago: Significant communities in North America and UK Dominican Republic: Large US presence, particularly New York Remittance Behavior Insights The 2024 IDB Remittances Report reveals critical consumer behavior patterns: Remittance Sender Profile Monthly send amount: $131 - $648 Share of sender income: 6% - 23% Men's median send: $300/month (stable for 15 years) Primary recipients: 50%+ send to mothers; 33% to fathers Usage: 80% for maintenance (food, housing, transport) Economic Impact on Home Markets Remittances represent critical economic lifelines: Jamaica: 17.4% of GDP (65% from US) Haiti: 37% of GDP-highest dependency in Caribbean El Salvador (for comparison): 25% of GDP Remittances exceed both Foreign Direct Investment and Official Development Assistance combined in many markets Free Caribbean Market Assessment Discover which research methodology best fits your Caribbean market entry strategy. Get Your Free Assessment Research Methodologies for Diaspora Accessing Diaspora Populations Researching dispersed diaspora communities requires specialized approaches: Online panels: Digital surveys reach geographically scattered populations efficiently Community organizations: Partner with cultural associations, churches, hometown groups Social media recruitment: Facebook, Instagram, WhatsApp groups organized by nationality Ethnic media: Caribbean newspapers, radio stations, online platforms in diaspora markets Event intercepts: Cultural festivals, Carnival celebrations, independence day events Snowball sampling: Referral-based recruitment through community networks Cross-Cultural Research Design Diaspora research must account for dual cultural identity: Language considerations: English, Spanish, French, Creole depending on origin and host country Generational differences: First-generation immigrants versus second/third generation Acculturation levels: Degree of adoption of host country versus home country values Transnational identity: Simultaneous connection to multiple markets Consumer Behavior Patterns Home Country Connection Diaspora consumers maintain strong ties to Caribbean origins: Brand loyalty: Preference for familiar home country brands Nostalgic consumption: Foods, beverages, products that evoke home Regular visits: Travel home for holidays, family events, maintaining property Media consumption: Follow home country news, entertainment, sports Product shipping: Send or receive "barrels" of goods between countries Influence on Home Market Diaspora consumers significantly impact Caribbean markets: Product introduction: Bring new brands and products from host countries Trend transmission: Fashion, technology, lifestyle trends flow through diaspora channels Quality expectations: Raise standards based on host country experiences Investment decisions: Real estate, business investments in home country Marketing to Diaspora Consumers Channel Strategies Diaspora Marketing Channels Ethnic grocery stores: Caribbean supermarkets in diaspora cities Caribbean restaurants: Community gathering points Cultural events: Carnival, Reggae Sumfest, cultural festivals Ethnic media: Caribbean newspapers, radio, TV in diaspora markets Social media: Facebook groups, Instagram accounts, WhatsApp networks Remittance touchpoints: Money transfer locations and platforms Messaging Considerations Authenticity: Genuine Caribbean voice and representation Heritage pride: Celebrate cultural identity and achievements Family connection: Emphasize ties to home and loved ones Nostalgia: Evoke positive memories and cultural touchstones Success narrative: Diaspora as achievers contributing to both home and host countries Research Applications For Export Brands Caribbean brands seeking diaspora markets need research on: Distribution channel preferences and accessibility Price sensitivity versus premium positioning Pack size and format preferences Competition from local alternatives Brand awareness and preference tracking For Home Market Brands Understanding diaspora influence on Caribbean consumers: Trend transmission patterns Gift and remittance-funded purchases Expectation setting from diaspora experience Seasonal demand around diaspora return visits For International Brands Reaching Caribbean diaspora in host countries: Cultural adaptation of mainstream products Partnership opportunities with Caribbean brands Event and community sponsorship ROI Multicultural marketing effectiveness Conclusion The Caribbean diaspora represents a unique consumer segment bridging multiple markets and cultures. With 31% of Caribbean-born individuals living abroad and $18.4 billion flowing annually in remittances (World Bank Bilateral Remittance Matrix, 2024), this population exerts significant economic influence both in host countries and home markets. Effective diaspora research requires specialized methodologies that account for geographic dispersion, cultural duality, and the transnational nature of diaspora consumer identity. Research Your Diaspora Market Our expertise spans Caribbean home markets and diaspora populations in North America, UK, and beyond. Discuss Diaspora Research Related Articles and Resources Haitian Consumer Research Miami Research with the Haitian-American community across Miami-Dade and Broward Barbadian Consumer Research Florida Bajan diaspora in Miramar, Lauderhill, and Broward County Bahamian Consumer Research Florida Bahamian-American community in Fort Lauderdale and Broward Guyanese Consumer Research Florida Guyanese-American community in Miramar, Tamarac, and West Palm Beach Brazilian Consumer Research Miami Brazilian community in Boca Raton, Deerfield Beach, and Aventura South Florida Hispanic Market Size 2.7M consumers, USD 85-95B purchasing power, nationality breakdown Puerto Rican Consumer Market Orlando 500K+ Puerto Ricans in Orlando, Kissimmee, and Central Florida Market Research in the Caribbean: Complete Guide Comprehensive overview of Caribbean research methodologies FREE DOWNLOAD diaspora consumer research Caribbean expats Research Report Get our comprehensive diaspora consumer research caribbean expats data pack with market analysis, competitive insights, and growth forecasts for strategic planning. 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Caribbean Remittances By Major Countries: A Lifeline Powering Economies Across The Region - TEMPO Networks --> By NAN Business Editor News Americas, NEW YORK, NY: Caribbean remittances remain one of the most powerful – and often overlooked – economic forces shaping the Caribbean today. For millions ...
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Caribbean Remittances By Major Countries: A Lifeline Powering Economies Across The Region - TEMPO Networks --> By NAN Business Editor News Americas, NEW YORK, NY: Caribbean remittances remain one of the most powerful – and often overlooked – economic forces shaping the Caribbean today. For millions of families across the region, money sent home by relatives abroad helps pay for food, housing, healthcare, education, and small business survival. At a national level, remittances stabilize economies, boost consumer spending, and act as a buffer during economic shocks. Windel Pierre, 41, a Haitian cab driver, sends money back to Haiti from Miami, FL. (Photo by Peter Whoriskey /The Washington Post via Getty Images) According to regional estimates from ‘Remittances-to-Latin-America-and-the-Caribbean-in-2025-Adaptations-in-a-Context-of-Uncertainty,’ by the IDB , Caribbean nations were projected to receive approximately US $20.9 billion in remittances in 2025, underscoring the scale and importance of diaspora support across the region. Top Caribbean Remittance Recipients Based on country-specific estimates and global remittance rankings compiled from international development and financial data, several Caribbean nations stand out as the region’s largest remittance recipients: CountryEstimated Annual Remittances (USD)HaitiUS $4.9 billionJamaicaUS $3.6 billionDominican RepublicUS $11,973 billionTrinidad & TobagoUS $361 millionGuyanaUS $1.4 billionSuriname US $166 millionBelize US $173 million These figures provide a relative snapshot of remittance inflows rather than precise totals, as reporting methods vary by country. However, they clearly illustrate how deeply Caribbean economies are tied to their global diasporas. Why Remittances Matter Beyond The Dollar Amount While total remittance volumes tell one story, their real economic impact becomes clearer when viewed as a share of GDP. In smaller Caribbean economies, remittances account for a substantial portion of national income. In countries such as Haiti and Jamaica, remittances have historically exceeded 20 percent of GDP, making them among the most remittance-dependent economies in the Western Hemisphere. This level of dependence means remittances do more than supplement incomes — they help sustain national economic stability. A Critical Social Safety Net For Caribbean households, remittances often function as a private social protection system, filling gaps where public services or employment opportunities fall short. Families commonly use remittance income to: Cover basic living expenses Pay school fees and education costs Access healthcare and medications Repair homes after storms or disasters Support elderly relatives In economies where formal job markets are limited or volatile, remittances help reduce poverty and smooth consumption during economic downturns. Diaspora Ties Drive Regional Resilience The Caribbean’s remittance flows are rooted in long-standing migration patterns, particularly to North America. The United States remains the largest source of remittances to the Caribbean, accounting for roughly half of all inflows, followed by Canada, which contributes more than 10 percent. These financial connections reinforce enduring social, cultural, and economic ties between Caribbean nations and their diaspora communities abroad. A Steady Outlook Despite Global Uncertainty Recent analyses indicate that remittance growth in the Caribbean has been moderate but steady, even amid global economic uncertainty. As labor markets in the U.S. and Canada continue to stabilize, remittance inflows are expected to remain resilient, providing ongoing support to Caribbean households and economies. Development economists note that while remittances alone cannot replace comprehensive economic reform, they remain a critical pillar of Caribbean economic survival and resilience. Looking Ahead As Caribbean governments pursue growth strategies – from tourism and energy to agriculture and technology – remittances will continue to play a stabilizing role. Policies that reduce transfer costs, expand financial inclusion, and encourage productive investment of remittance income could further amplify their positive impact. For now, the numbers are clear: the Caribbean’s diaspora is not just connected emotionally – it is economically indispensable. REMITTANCES TO THE CARIBBEAN IN THE PAST Advertisements https://www.temponetworks.com/wp-content/uploads/2026/01/remittance-haiti-8QsYm3.jpeg 374 498 https://www.temponetworks.com/wp-content/uploads/2018/05/TEMPO-Logo-RGB-copy-300x300.png 2026-01-05 14:14:35 2026-01-05 14:14:35 Caribbean Remittances By Major Countries: A Lifeline Powering Economies Across The Region You might also like Meet The 2024 Caribbean Billionaires Human remains returned to Statia 30 years after they were sent to the Netherlands Why Caribbean and Latin American Hotel and Commercial Property Owners Should Be Refinancing Now Mexico welcomes Cuban president amid hard times The Evolving Landscape: Predictions for the Future of Caribbean PR Caribbean Tourism Reinvestment: Sandals’ $200M Jamaica Upgrade Signals Long-Term Confidence 0 replies Leave a Reply Want to join the discussion? 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NEW YORK’S HIDDEN OECS NATION: OVER 300,000 EASTERN CARIBBEAN NATIONALS CALL THE BIG APPLE HOME – Times Caribbean Online
# NEW YORK’S HIDDEN OECS NATION: OVER 300,000 EASTERN CARIBBEAN NATIONALS CALL THE BIG APPLE HOME
Posted on October 26, 2025 in General News
An in-depth analysis of migration...
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NEW YORK’S HIDDEN OECS NATION: OVER 300,000 EASTERN CARIBBEAN NATIONALS CALL THE BIG APPLE HOME – Times Caribbean Online
# NEW YORK’S HIDDEN OECS NATION: OVER 300,000 EASTERN CARIBBEAN NATIONALS CALL THE BIG APPLE HOME
Posted on October 26, 2025 in General News
An in-depth analysis of migration, identity, and community among OECS citizens in New York City — the unofficial capital of the Caribbean diaspora.
### A CITY BUILT BY ISLANDS
When you walk through Brooklyn’s Flatbush Avenue on a summer evening, you could just as easily be in Castries, Kingstown, Basseterre, or Roseau. From roti shops to reggae taxis, soca sound systems to West Indian flags fluttering in storefronts, New York City has become the beating heart of the Eastern Caribbean abroad — a place where tens of thousands of nationals from the Organisation of Eastern Caribbean States (OECS) have built lives, raised families, and shaped the city’s cultural and economic landscape.
According to the most recent U.S. Census Bureau American Community Survey (ACS) 2023 estimates, combined with data from the New York City Department of City Planning’s “Newest New Yorkers” report and Caribbean diaspora research institutions, the OECS diaspora in New York City now exceeds 300,000 residents, making it one of the largest clusters of small-island nationals anywhere in the world.
### OECS PRESENCE BY COUNTRY – ESTIMATED NEW YORK CITY POPULATION (2023)
| OECS Member State | Estimated NYC Residents | Main Borough Concentrations | Community Highlights |
| --- | --- | --- | --- |
| St. Vincent and the Grenadines | 68,000 | Brooklyn (Flatbush, Canarsie), Queens | Active Vincentian cultural organizations, large presence in education and nursing sectors |
| Grenada | 61,000 | Brooklyn (Crown Heights, East Flatbush), Bronx | Strong representation in public service, annual Grenada Day Parade draws thousands |
| St. Lucia | 53,000 | Brooklyn (Flatlands, Canarsie), Queens (Jamaica) | Vibrant St. Lucian cultural and culinary networks, key role in Labor Day Parade |
| Dominica | 47,000 | Brooklyn, Bronx, Queens | Prominent in healthcare, union leadership, and religious institutions |
| Antigua and Barbuda | 39,000 | Queens (Cambria Heights, Hollis), Brooklyn | Early Caribbean migrant pioneers, active in hospitality and civic leadership |
| St. Kitts and Nevis | 25,000 | Brooklyn, Queens, Bronx | Tight-knit professional networks, strong student and alumni associations |
| Anguilla | 8,000 | Bronx, Brooklyn | Concentrated diaspora with active social clubs and church groups |
| Montserrat | 6,000 | Bronx, Brooklyn | Small but deeply connected post-volcanic diaspora community |
| British Virgin Islands | 3,500 | Queens, Long Island | Small but growing population in finance and education sectors |
Total Estimated OECS Population in NYC (2023): ~310,000
(Source: U.S. Census Bureau ACS 2023 microdata, NYC Planning “Newest New Yorkers 2023,” Migration Policy Institute Caribbean Diaspora profiles, and community organizational data.)
### WHY NEW YORK? THE OECS CONNECTION
The historical roots of the OECS migration wave trace back to the post–World War II labor recruitment programs of the 1950s–70s, when thousands of Eastern Caribbean nationals arrived in the United States seeking work in domestic service, construction, and healthcare. For many from islands with small economies and limited land resources, New York became a magnet — a city of opportunity that already spoke the rhythms of home through earlier arrivals from Jamaica, Barbados, and Trinidad.
As U.S. immigration laws liberalized in 1965, the Caribbean migration stream diversified, with larger numbers from the Windward and Leeward Islands entering on family reunification, student, and employment visas. Today, second- and third-generation OECS Americans form part of New York’s professional middle class — nurses, teachers, entrepreneurs, lawyers, civil servants, and small business owners.
### THE ECONOMIC FOOTPRINT
The economic contribution of OECS nationals in New York is profound yet under-quantified. Using regional remittance data from the World Bank’s Caribbean Migration and Remittances Factbook, it’s estimated that OECS diaspora members in the U.S. (with New York as the primary base) remit over US $400 million annually back to their home islands — fueling education, housing, and entrepreneurship.
In neighborhoods like Canarsie, Crown Heights, and Cambria Heights, OECS nationals own bakeries, shipping companies, legal offices, travel agencies, and restaurants that have become hubs of Caribbean identity. Their businesses not only generate employment but also serve as conduits for cultural retention — a “Caribbean economy within an economy.”
### COMMUNITY INSTITUTIONS AND CULTURE
OECS communities have built a rich tapestry of organizations, churches, and alumni associations that sustain their cultural ties and advocacy influence:
- The Grenada, Carriacou & Petite Martinique Association of New York (GCPMA) runs scholarships and cultural events.
- The Dominica Benevolent Society of New York coordinates hurricane relief and social welfare programs.
- The St. Kitts and Nevis Association of Greater New York (SKNANY) connects professionals and students while supporting bilateral cultural exchanges.
- Annual events like Grenada Day, St. Lucia Independence Gala, and Vincentian Heritage Day attract thousands, reaffirming national pride and community cohesion.
These organizations, often powered by volunteers, double as informal embassies — offering support with immigration, education, and emergency aid.
### POLITICAL INFLUENCE AND TRANSNATIONAL TIES
The OECS diaspora’s growing numbers have translated into increasing political visibility in New York’s civic life. Several local elected officials of Caribbean descent, including those with roots in the smaller OECS islands, serve in city councils, state assemblies, and school boards.
Their engagement extends back home as well. OECS governments have intensified diaspora outreach, hosting investment forums and appointing honorary consuls in the New York metro area. Initiatives like the OECS Commission’s Diaspora Engagement Unit seek to leverage this human capital — turning migration into a development partnership.
### THE SECOND GENERATION: NEW IDENTITIES
A new generation of OECS-Americans is emerging — born in the U.S. but deeply anchored to their ancestral islands. They dominate Caribbean student groups at CUNY and SUNY campuses, blending dual identity with ease.
Sociologists note that second-generation OECS youth are redefining “Caribbean-American identity” through hybrid art, music, and entrepreneurship. They are digital creators, nurses, engineers, lawyers, and tech entrepreneurs, navigating both Wall Street and Windward Islands roots.
### A REGIONAL COMMUNITY WITH GLOBAL IMPACT
In the mosaic of Caribbean New York, the OECS bloc often operates as a single, interwoven network — united by shared culture, inter-island marriages, and regional institutions. Their influence reaches beyond cultural preservation; they are part of policy think tanks, UN missions, and Caribbean diplomatic circles headquartered in Manhattan.
As migration patterns shift post-pandemic, the OECS diaspora’s footprint continues to grow, reinforcing the notion that the Caribbean’s eighth “member state” may well be New York City itself.
### THE OECS DIASPORA IN CONTEXT
| Region | Estimated Population in NYC | Estimated U.S. Population | Remittance Flow (USD millions) |
| --- | --- | --- | --- |
| OECS Member States (Total) | ≈310,000 | ≈420,000 | ≈400 |
| Wider Caribbean (All nations) | ≈2,000,000 | ≈4,800,000 | ≈6,500 |
### CONCLUSION: THE OECS ABROAD, A REGION BEYOND BORDERS
From the classroom to the courthouse, from hospitals to city halls, the nationals of the OECS have helped to shape New York’s identity as the most Caribbean metropolis outside the Caribbean itself.
Their story is one of resilience, migration, and transformation — proof that even the smallest islands can cast the longest shadows when their people take root in the world’s greatest cities.
As one Caribbean elder in Brooklyn aptly put it:
> “New York is not just a place we came to — it’s a place we built, island by island, brick by brick, dream by dream.”
— By SKN Times Diaspora Affairs & Regional Affairs Desk
Impending US tax on remittances expected to impact Jamaican households and businesses | News | Jamaica Gleaner Skip to main content Impending US tax on remittances expected to impact Jamaican households and businesses Published: Friday | July 4, 2025 | 11:04 AM Photo Video Speaker of the House Mike ...
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Impending US tax on remittances expected to impact Jamaican households and businesses | News | Jamaica Gleaner Skip to main content Impending US tax on remittances expected to impact Jamaican households and businesses Published: Friday | July 4, 2025 | 11:04 AM Photo Video Speaker of the House Mike Johnson, R-La., center, shakes hands with Majority Leader Steve Scalise as he celebrates with fellow Republicans after final passage of President Donald Trump's signature bill of tax breaks and spending cuts, at the Capitol in Washington, Thursday, July 3, 2025. (AP Photo/J. Scott Applewhite) Effective December 31 this year, Jamaicans in the United States sending money to their relatives back home will have to pay a one per cent excise tax on such transactions. The one per cent tax is set out in the One Big Beautiful Bill Act passed by the US Congress, which is expected to be signed by President Donald Trump today. By charging senders’ a one percent fee the bill raises the cost of remittances. This could lead some migrants to send less money or send money less frequently, negatively affecting recipients’ spending power in Jamaica. Headlines Delivered to Your Inbox Sign up for The Gleaner’s morning and evening newsletters. Jamaica is expected to experience a direct economic downturn from the new US remittance tax as it represents a transfer of resources to the US Treasury. The tax is projected to raise roughly US$10 billion in revenue across all countries. What this means for the Jamaican economy is that if remittances amount to US$2 billion for the year, the one per cent tax means that US$20 million will be paid to the US treasury. Jamaica currently receives roughly US$3.3 to US$3.5 billion in remittances annually, the majority of which comes from Jamaicans in the United States. Remittances currently account for 17 to 20 per cent of Jamaica’s gross domestic product (GDP). The Bank of Jamaica has already flagged US policy changes on remittances as a downside risk to Jamaica’s economic outlook, therefore, any reduction in remittance inflows could constrain household consumption, education and healthcare spending as well as small business support in Jamaica, according to an analysis done for the Jamaican Government of the bill’s provisions. In the original version of the bill passed by the US House of Representatives, the tax on remittance was set at five per cent. However, the US Senate reduced it to one per cent. The new tax will be imposed on remittances sent as cash, money orders, cashier’s checks and similar such instruments. Funds sent by debit or credit cards or bank wire transfers will not attract the new tax. According to the provisions of the bill, the new tax will be limited mainly to green card holders or permanent residents and visa holders. Citizens sending money to relatives in Jamaica will not be subject to the new tax. US states with high Jamaican populations, such as New York and Florida, will be impacted the most by the new excise tax. The fear is that people who rely on cash remittances will try to find other means to send money home to relatives to avoid paying the tax. This could lead to the use of unregulated means to transmit funds. For Jamaica, even a small percentage loss in remittance income can have outsized effects. Families use remittances for daily living expenses, education, healthcare, and investing in small enterprises. “A 1% tax effectively reduces the disposable income of remittance-receiving households – akin to a new import duty on foreign aid from diaspora. Over time, this could modestly dampen consumer spending and poverty alleviation efforts. Additionally, if migrants reduce the amount they send to offset the fee, local businesses in Jamaica that depend on remittance-fuelled spending may see lower sales. Despite the tax rate being pared down to 1%, it could be a setback for financial inclusion in the region, by nudging transactions outside formal banking channels. This provision is a focal point of concern, as it effectively monetizes diaspora earnings and could undermine the vital flow of remittances that sustain many families and stabilize local economies,” stated the analysis seen by The Gleaner . Because the tax applies only to cash-based transfers and not to bank transfers or digital payments, many Caribbean migrants may try to avoid the fee by using electronic methods. Those with bank accounts might switch to online remittance services or direct bank wires, which are exempt. However, unbanked or older migrants who rely on cash services, like Western Union, will have no choice but to pay the one per cent fee. There is also concern that a tax could drive some senders to informal or illicit channels, such as money couriers, to evade the fee, undermining the formal remittance industry and financial transparency. The legislation also includes anti-avoidance measures. It references applying anti-conduit financing rules to remittances and may entail increased oversight of money transmitters and mandatory use of regulated channels. While this aims to prevent tax evasion and money laundering, it could also increase compliance costs for remittance companies and potentially slow down transfers. Caribbean-focused money transfer operators might face new reporting requirements and will need to adjust their systems to collect the tax and remit it to the US Treasury, the analysis noted. Jamaicans in the Diaspora have come out against the imposition of the new fee. Former Jamaica Global Council member Dr Allan Cunningham said that it is devastating news, especially for poor families that depend on remittances. “Poorer families are going to feel more economic hardships and children might have it difficult attending schools. No doubt this will have a crippling effect on the country’s economic health,” he told The Gleaner . He called it a sad day for the Jamaican diaspora. - Lester Hinds Follow The Gleaner on X and Instagram @JamaicaGleaner and on Facebook @GleanerJamaica. Send us a message on WhatsApp at 1-876-499-0169 or email us at onlinefeedback@gleanerjm.com or editors@gleanerjm.com . «MoBay Jerk Festival honours island’s culinary heritage Relatives of cop accused of murdering teacher killed at her vigil in St Mary » View the discussion thread. More News E-mail the editor Videos For more videos click here. Just for you
The $20B Question: Why U.S. Brands Are Sleeping on the Caribbean Diaspora Market — CBN The $20B Question: Why U.S. Brands Are Sleeping on the Caribbean Diaspora Market MONEY CULTURE Mar 4 Written By Nicole Grimes By Dr. Nicole K. Grimes, Founder of Carib Biz Network | Posted March 4th 2026, 7:42 pm ...
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The $20B Question: Why U.S. Brands Are Sleeping on the Caribbean Diaspora Market — CBN The $20B Question: Why U.S. Brands Are Sleeping on the Caribbean Diaspora Market MONEY CULTURE Mar 4 Written By Nicole Grimes By Dr. Nicole K. Grimes, Founder of Carib Biz Network | Posted March 4th 2026, 7:42 pm ET. Last week, I watched the U.S. government Homeland Security share via X, they're investigating remittances to Haiti. About US$4.1 billion. That’s roughly how much the Haitian diaspora sent home in 2024 alone through formal channels, making remittances one of Haiti’s single most important financial lifelines. For context, that represents around one‑fifth to one‑quarter of Haiti’s entire GDP , and it far exceeds both export earnings and foreign direct investment flows. And suddenly, I realized something: They're finally paying attention to what we've known all along. The Caribbean diaspora is an economic powerhouse. But here's the thing that frustrates me: while the government is "investigating" this money flow, corporate America is completely ignoring what it actually means. Let me explain. When "Investigating" Actually Means "We See Your Power" Here's what that investigation really tells us: This money stream is significant enough to impact an entire nation's GDP. Exactly. That's not a concern. That's confirmation of our economic influence. Think about it: 520,000 Haitian TPS holders contribute $5.9 billion to the U.S. economy. They pay taxes. They start businesses. They buy homes. They work essential jobs. And yes, they send money home to support more than 4 million people. They're not choosing between countries. They're powering TWO economies simultaneously. But here's my question: If this economic bridge is strong enough to warrant government scrutiny, why aren't brands racing to build relationships with the people creating it? The Market Hiding in Plain Sight Let me share some numbers that should make every marketing executive sit up straight: More than 8.5 million people in the United States were either born in the Caribbean or report Caribbean ancestry. (Migration Policy Institute) We sent almost $20 billion in remittances in 2024 (~ US$18.4 billion with roughly half of that coming from the United States and around 10% from Canada. - IADB) We generate an estimated $10-12 billion in annual economic impact across remittances, consumption, and investment. We’re heavily concentrated in high‑value markets like New York, Florida, and New Jersey, with sizable and growing communities in other major metros Now, let me ask you something: When was the last time you saw a major U.S. brand campaign specifically targeting the Caribbean diaspora? I'll wait. What Corporate America Gets Wrong Here's what frustrates me most about watching companies chase "emerging markets" overseas while ignoring us: The same people sending billions internationally have disposable income RIGHT HERE. Think about what remittances actually prove: These are people with money left over AFTER paying U.S. rent/mortgage AFTER buying groceries AFTER handling car payments AFTER managing their U.S. households And they STILL have enough to send thousands of dollars annually to family abroad. That's not struggle. That's purchasing power. Plus, consider the behavior patterns: We travel home multiple times a year (tourism spend) We maintain strong cultural ties (predictable buying preferences) We're concentrated in major metros (easy to target) We're buying property in TWO markets (real estate opportunity) We're importing culture through food, fashion, music, events (niche market dominance) So why doesn't American Express have a Caribbean diaspora credit card? Why isn't Delta running "Visit Home More Often" campaigns targeting us? Why aren't financial institutions creating dual-market investment products? I honestly don't know. But I do know it's a massive missed opportunity. Dear Caribbean Brands: The Diaspora IS Your Customer Now, let me talk to my Caribbean brands for a minute. I see you marketing to locals. I see your beautiful campaigns targeting tourists. But here's what I rarely see: strategic marketing to the diaspora. And that makes no sense to me. Those remittances aren't just money. They're market signals: We're buying land and property back home (but who's making it easy for us to do remotely?) We're purchasing Caribbean products in the U.S. (but which brands have e-commerce that ships here efficiently?) We're traveling home multiple times per year (but who's creating experiences specifically for us?) We're supporting extended family networks (but where are the products designed for diaspora gift-giving?) We're importing culture through food, fashion, music (but who's making authentic products accessible in U.S. markets?) Here's the truth: The diaspora has MORE disposable income than your local customers. We maintain cultural ties and actively seek authentic products. We influence trends in BOTH markets. We're brand ambassadors across two continents. So why are you marketing to us like we're "away from home"? Start marketing like we're your CORE demographic. Because we are. The Questions We Should Be Asking Instead of debating whether remittances create "dependency," here are the questions I think we should be asking: For Financial Services: How do we create better remittance technology that's faster and cheaper? What investment products serve people building wealth across two countries? Where are the mortgage products for diaspora buying property back home? For Consumer Brands: How do we create dual-market loyalty programs? What products serve families split across continents? Where's the "subscribe and gift to family abroad" model? For Real Estate: How do we make remote property investment seamless? What platforms connect diaspora buyers with trusted local developers? Where are the property management services designed for absentee owners? For Travel & Hospitality: How do we create "visiting home" travel packages with family-friendly pricing? What hotel chains are building diaspora loyalty programs? Where are the cultural experience packages designed for returning diaspora? For Caribbean Governments: How do we make it easier for diaspora to invest in local businesses? What incentive programs attract diaspora entrepreneurship? Where are the dual-citizenship benefits that acknowledge our economic contribution? Why This Matters Beyond Money Here's what really drives me in this work: This isn't just about economics. It's about recognition. For too long, the conversation about the Caribbean diaspora has been framed around what we "take" or what we "cost." But these remittance numbers tell a different story. They tell a story of: Resilience: Building lives in a new country while supporting families back home Contribution: Paying taxes and building businesses in the U.S. while powering Caribbean economies Connection: Maintaining cultural ties across thousands of miles Innovation: Creating economic bridges that benefit multiple nations This is infrastructure. This is bridge-building. This is power. And frankly? It deserves strategic infrastructure, not just political scrutiny. The CBN Approach: Building the Bridge This is exactly why I founded Carib Biz Network. Because when 8.5 million people are powering two economies, generating $10-12 billion in annual impact, and getting zero strategic attention from major institutions, something is broken. We're building the infrastructure to: Connect Caribbean entrepreneurs with capital and resources (because traditional funding ignores us) Link U.S. brands with diaspora market access (because they don't know how to reach us) Help Caribbean brands reach their diaspora customers (because geography shouldn't limit growth) Provide policymakers with economic impact data (because decisions should be informed by facts) We're not just a network. We're economic architecture for a market that's been systematically overlooked. Here's What I Want You to Take Away Whether you're: A U.S. brand wondering why your Caribbean market strategy isn't working (hint: you probably don't have one) A Caribbean brand struggling to reach diaspora customers (hint: we're ready to buy—you just need to make it easy) A diaspora member frustrated by being ignored as a consumer segment (hint: your spending power is about to be impossible to ignore) A policymaker thinking about remittances as a "problem" to solve (hint: it's infrastructure to support) The opportunity is the same: Stop treating the Caribbean diaspora as a niche and start treating us as the economic force we are. Because here's the reality: We're not going anywhere. We're going to keep sending money home. We're going to keep building businesses. We're going to keep traveling between markets. We're going to keep supporting families across borders. The only question is: Are you going to build with us, or keep ignoring the $10-12 billion opportunity in your backyard? Let's Talk If you're a brand ready to tap into this market, a Caribbean business ready to reach diaspora customers, or a fellow diaspora member ready to build economic infrastructure together—I want to hear from you. Email me: info@caribbiznetwork.com Visit us: www.caribbiznetwork.com Join the conversation: Follow @CaribBizNetwork on Instagram and LinkedIn Because it's time we stopped being "investigated" and started being invested in. Let's build the bridge together. RELATED READING Want to dive deeper? Check out these resources: CBN Statistics Page - See all the data on Caribbean diaspora economic impact Become a CBN Member - Join 700+ Caribbean entrepreneurs building together Partner With CBN - Explore partnership opportunities for your brand Dr. Nicole K. Grimes is the founder of Carib Biz Network, a membership-based organization supporting Caribbean diaspora entrepreneurs across the U.S. With 25+ years in education, entrepreneurship, and economic development, she builds infrastructure that turns cultural capital into economic power. A daughter of the Caribbean diaspora herself, Nicole is committed to ensuring the next generation doesn't have to choose between countries, they get to power both. Nicole Grimes Previous Previous 20+ Caribbean Fashion Designers Redefining Luxury Next Next March Grant Round Up for Small Business Owners
Investing in St. Kitts: Opportunities, Incentives, and How Invest St. Kitts Can Help ELEMENT--> Back to the Newsroom Investing in St. Kitts: Opportunities, Incentives, and How Invest St. Kitts Can Help Saturday, 25 July 2026 08:45 AM Topic: Company Update NORTHWOOD, GB / ACCESS Newswire / July 25, 2...
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Investing in St. Kitts: Opportunities, Incentives, and How Invest St. Kitts Can Help ELEMENT--> Back to the Newsroom Investing in St. Kitts: Opportunities, Incentives, and How Invest St. Kitts Can Help Saturday, 25 July 2026 08:45 AM Topic: Company Update NORTHWOOD, GB / ACCESS Newswire / July 25, 2026 / St. Kitts offers investment opportunities across seven priority sectors, Tourism, Information Technology, Agriculture, Financial Services, Renewable Energy, International Education, and Light Manufacturing backed by generous government tax incentives, duty exemptions, and full profit repatriation. Invest St. Kitts (SKIPA - the St. Kitts Investment Promotion Agency) acts as a one-stop-shop for both local and foreign investors, guiding them from initial inquiry through business setup and ongoing aftercare. Why Invest in St. Kitts? St. Kitts has built a defined, sector-focused investment climate designed to attract long-term, high-impact projects. The government has prioritized seven core sectors for investment: Tourism, Information Technology, Agriculture, Financial Services, Renewable Energy, International Education, and Light Manufacturing. The country's economic growth has been supported by ongoing legislative reform, consistent policy, and structured planning, which together have helped sustain steady growth in both local and foreign direct investment year over year. Featured Investment Opportunities Invest St. Kitts currently lists several active, named investment opportunities open to prospective investors: Hillsboro Suites & Residences : A real estate development of 180 condo units on four acres of land at Mattingley, Basseterre. Phase 1 comprises 60 units, 40 of which are already complete. The project is seeking US$3.2 million to complete Phase 1. The Pelican Bay Hotel & Condominium Project : A 232-suite hotel and condominium development in Frigate Bay, including a 3,000 sq. ft. banquet hall, a main restaurant and bar seating over 320 guests, and a 3,500 sq. ft. infinity-edge pool with jacuzzi and deck bar. The project is seeking US$45 million for completion. Greenhouse Villages : An agricultural investment opportunity under the Ministry of Agriculture, seeking US$1.5 million, structured as loan, debt, equity, or a combination of debt and equity. Sustainable Energy Project : A renewable energy opportunity with the St. Kitts Electricity Company, seeking investment for up to 18 MW-AC of renewable energy capacity, structured as a Build, Own, and Operate (BOO) arrangement. Invest St. Kitts notes that these are only a selection of what's available, and prospective investors are encouraged to reach out directly for access to additional opportunities beyond what's publicly listed. Government Incentives for Investors Are there tax holidays for new businesses? Yes. Under the Fiscal Incentives Act, qualifying enterprises can receive a corporate tax holiday, with the length determined by how much value they add locally in St. Kitts and Nevis: Enterprises adding 50% or more in local value can qualify for up to 15 years of tax holiday. Enterprises adding between 25% and 50% in local value can qualify for up to 12 years. Enterprises adding between 10% and 25% in local value can qualify for up to 10 years. "Enclave" enterprises businesses producing goods exclusively for export outside the CARICOM region, can also qualify for up to 15 years. Is there additional relief after the tax holiday ends? Yes, through an Export Allowance. Once a company's tax holiday period ends, it can receive a rebate on income tax paid, based on what percentage of its total profits come from exports, the higher the share of export profits, the larger the rebate, scaling from a 25% rebate at the 10-20% export-profit tier up to a 50% rebate for companies where export profits exceed 60% of total profits. What about import duties? Businesses can receive a full exemption from import duties on parts, raw materials, and production machinery. Are there specific incentives for the hotel sector? Yes. Under the Hotel Aids Act, hotels benefit from relief on customs duties for items used in construction, extension, and equipping provided the hotel has at least 10 bedrooms. Separately, under the Income Tax Act, hotels with more than 30 bedrooms are exempt from income tax for 10 years, while smaller hotels (under 30 bedrooms) receive a 5-year income tax exemption on profits. Is there personal income tax in St. Kitts? No, there is no personal income tax in St. Kitts. What is the corporate tax rate? Standard corporate income tax is 33% of net profits, though qualified companies can receive a full exemption from tax on corporate profits for up to 15 years under the incentive structure above. Can investors repatriate profits? Yes. Companies registered in St. Kitts can repatriate all profits, dividends, and imported capital without restriction. Workforce and Business Environment St. Kitts and Nevis has a labour force of approximately 25,000 people and a literacy rate of 98%. Technical and vocational training needs are largely met by the Clarence Fitzroy Bryant College, which offers courses in plumbing, electrical engineering, air conditioning and refrigeration, masonry, carpentry, mechanical engineering, motor mechanics, typing, and basic hotel skills, giving investors access to a trained local workforce across several of the priority sectors. The St. Christopher & Nevis Social Security Board (SSB), established in 1978, provides benefits to insured persons in cases of retirement, old age, invalidity, maternity, sickness, or injury on the job, with survivor's benefits and funeral grants also available to dependents. How Invest St. Kitts Can Help Invest St. Kitts, operated by the St. Kitts Investment Promotion Agency (SKIPA) is built specifically to guide investors through every stage of bringing a project to life in St. Kitts. Its stated role is to proactively market St. Kitts internationally, regionally, and locally as an attractive investment destination, and to support the investors who respond to that opportunity. Concretely, Invest St. Kitts helps in the following ways: Set up a Business: The agency walks investors through the specific steps required to establish a business in St. Kitts, which can vary depending on the type of business being formed, from incorporating the company with St. Kitts Financial Services to applying for the necessary approvals. Prepare a Proposal: Invest St. Kitts provides the information investors need to prepare business proposals, whether to start a new business or to apply for government concessions. Application Forms: All relevant application forms are made conveniently available, giving investors easy access to the documentation needed to move their investment forward. Investment Facilitation: The agency facilitates the investment decision itself, providing information and helping investors explore business opportunities before they commit. Point of Contact: SKIPA becomes the investor's central point of contact for the procedures involved in establishing a business in St. Kitts, including assistance with requests and approvals for tax concessions. Aftercare Services: Support doesn't end at business launch, Invest St. Kitts provides ongoing aftercare to companies already established in St. Kitts, and support for businesses looking to expand. The Golden Book of St. Kitts: A free investment guide available directly from Invest St. Kitts, designed as a resource for investors exploring opportunities on the island. Direct Access to Opportunities: Beyond the featured opportunities listed publicly, Invest St. Kitts can connect interested investors with additional opportunities not published on the site. Open Investor Inquiries: Investors with questions about investing in St. Kitts are encouraged to reach out to the agency directly for guidance. Frequently Asked Questions What sectors does St. Kitts prioritize for investment? Tourism, Information Technology, Agriculture, Financial Services, Renewable Energy, International Education, and Light Manufacturing. Is there personal income tax in St. Kitts? No. St. Kitts has no personal income tax. How long can a qualifying business receive a tax holiday? Up to 15 years, depending on the enterprise's local value-added percentage under the Fiscal Incentives Act. Can investors move profits out of the country freely? Yes, companies registered in St. Kitts can repatriate all profits, dividends, and imported capital. Who helps investors get started in St. Kitts? Invest St. Kitts (SKIPA) the St. Kitts Investment Promotion Agency serves as a one-stop-shop, guiding investors through business setup, proposal preparation, application forms, tax concession approvals, and aftercare once a business is established. How does someone access more investment opportunities? Beyond the opportunities featured on the Invest St. Kitts website, investors can also contact the agency directly for access to additional, unpublished opportunities. About Beyond Borders Global Marketing Beyond Borders Global Marketing based in United Kingdom empowers destinations to navigate the intersection of heritage, sustainability and global desire. We boutique tourism marketing consultancy elevating destinations and nation brands worldwide - partnering with tourism boards and travel businesses on strategies that drive sustainable, culturally resonant growth. Media Details Contact: +44 73 0085 9160 E-mail: [email protected] Website: beyondborders.marketing SOURCE : Beyond Borders Global Marketing
Caribbean Opportunities Fund 0 Expert, locally astute Private Equity for Caribbean growth Mark Hall Demerara (Tap to Play) About COF The Caribbean Opportunities Fund is the first Private Equity Fund focused on the Southern Caribbean. It will provide a transition pathway from oil-led economic growth ...
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Caribbean Opportunities Fund 0 Expert, locally astute Private Equity for Caribbean growth Mark Hall Demerara (Tap to Play) About COF The Caribbean Opportunities Fund is the first Private Equity Fund focused on the Southern Caribbean. It will provide a transition pathway from oil-led economic growth to the financing of sustainable SMEs while impacting the evolution of under-developed, capital markets. Territories of Priority Guyana has always been a Carbon Sink with established, bipartisan policies targeting Low Carbon Development. 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data-title-placement="center" data-body-placement="center" data-button-placement="center" data-layout-width="full" data-title-font-unit="rem" data-description-font-unit="rem" data-button-font-unit="rem" data-space-between-rows="60px" data-space-between-columns="60px" data-vertical-padding-top-value="10" data-vertical-padding-bottom-value="10" data-vertical-padding-top-unit="vmax" data-vertical-padding-bottom-unit="vmax" > Guyana Guyana has always been a Carbon Sink with established, bipartisan policies targeting Low Carbon Development. Trinidad T&T’s skills & regional interest provide opportunities for investable, multi-country SME collaborations. Suriname The Guyana Basin’s oil-bearing geology extends into Surinamese waters Why Us? New oil & gas production in Guyana is powering transformational economic growth in a country with a history of Low Carbon Development intent on increasing Non-oil GDP. Suriname’s geology & economic history promise similar development soon. Trinidad & Tobago is urgently working to transition its economy away from a long, oil-fuelled history. Massive Opportunities for Private SMEs Agriculture Construction FInance Healthcare Solar Technology How? Our US$50m, 10 year PE fund will identify high growth SMEs and capitalise their Business Plans incorporating ESG principles. Fund Strategy Transition to ESG SMEs ‘New’ Economy With booming Services and accelerating government Infrastructure Spending driven by oil industry earnings & Local Content requirements, COF provides a transitional pathway to SMEs that are generating sustainable value ‣Construction ‣Information Technology ‣Consumer Products ‣Financial & Professional Services ‣Medical & Health Services ‣Education Agriculture Agriculture in Guyana has a healthy private sector and is important for food self-sufficiency. Food Security is a priority for regional governments Renewable Energy COF sees great opportunities for renewable energy service companies driven by low carbon energy considerations & policies in many Caribbean territories Target Investments We will be supporting investments which align with the following criteria: EBITDA USD $200k - 1m We expect each investee company to have the potential to generate earnings in this range. Ticket Size USD $1 - 5m The size of the investment we will make in the companies which fall in the key sectors listed above. Growth Potential 20% CAGR We expect each company to have the potential to grow at an average rate of 20% per year over a 10 year period. A Team of talented individuals with decades of Wall Street and Emerging Market PE experience alongside deep regional relationships and networks, is eager to successfully execute this impactful Fund strategy. Team General Partner ", "button": { "buttonText": "Read Bio", "buttonLink": "/team", "buttonNewWindow": false }, "imageId": "67c668a230a54e184c5b9167", "image": { "id": "67c668a230a54e184c5b9167", "recordType": 2, "addedOn": 1741056162725, "updatedOn": 1744410175751, "workflowState": 1, "publishOn": 1741056162725, "authorId": "5ef78bf8b5a9cd510a03a78f", "systemDataId": "5fb4fee8-e349-47e6-89d0-6ecf160cbecd", "systemDataVariants": "795x565,100w,300w,500w,750w", "systemDataSourceType": "PNG", "filename": "timthumb.php.png", "mediaFocalPoint": { "x": 0.19330789029910359, "y": 0.8081010126265783, "source": 3 }, "colorData": { "topLeftAverage": "995e2c", "topRightAverage": "c49f82", "bottomLeftAverage": "553727", "bottomRightAverage": "b78759", "centerAverage": "bd916d", "suggestedBgColor": "937159" }, "urlId": "4rpunyyi8cg9kgcdj3zdkgp7fyuis2", "title": "", "body": null, "likeCount": 0, "commentCount": 0, "publicCommentCount": 0, "commentState": 2, "unsaved": false, "assetUrl": "https://images.squarespace-cdn.com/content/v1/67c667c2f60a2113168bc7b0/5fb4fee8-e349-47e6-89d0-6ecf160cbecd/timthumb.php.png", "contentType": "image/png", "items": [ ], "pushedServices": { }, "pendingPushedServices": { }, "originalSize": "795x565", "recordTypeLabel": "image" } }, { "title": "Malissa Ritchie", "description": " General Counsel & Investor Relations ", "button": { "buttonText": "Read Bio", "buttonLink": "/team", "buttonNewWindow": false }, "imageId": "680a4ec6cb45724bfe7f6b0f", "mediaFocalPoint": { "x": 0.5223074241896131, "y": 0.04001000250062514 }, "image": { "id": "680a4ec6cb45724bfe7f6b0f", "recordType": 2, "addedOn": 1745505990424, "updatedOn": 1745505997038, "workflowState": 1, "publishOn": 1745505990424, "authorId": "5ef78bf8b5a9cd510a03a78f", "systemDataId": "02d7c855-311c-4e21-b9bf-cb7b9a4b24e4", "systemDataVariants": "1060x1478,100w,300w,500w,750w,1000w", "systemDataSourceType": "JPG", "filename": "WhatsApp Image 2025-04-24 at 10.21.03.jpeg", "mediaFocalPoint": { "x": 0.5223074241896131, "y": 0.04001000250062514, "source": 3 }, "colorData": { "topLeftAverage": "bfc6c1", "topRightAverage": "cad0cd", "bottomLeftAverage": "928c85", "bottomRightAverage": "babecf", "centerAverage": "c1c8c4", "suggestedBgColor": "99928f" }, "urlId": "ny5a3i8zcyzy8kphh6ebqw28q4hv03", "title": "", "body": null, "likeCount": 0, "commentCount": 0, "publicCommentCount": 0, "commentState": 2, "unsaved": false, "assetUrl": "https://images.squarespace-cdn.com/content/v1/67c667c2f60a2113168bc7b0/02d7c855-311c-4e21-b9bf-cb7b9a4b24e4/WhatsApp+Image+2025-04-24+at+10.21.03.jpeg", "contentType": "image/jpeg", "items": [ ], "pushedServices": { }, "pendingPushedServices": { }, "originalSize": "1060x1478", "recordTypeLabel": "image" } }, { "title": "Peter Lappo", "description": " Chief Technology Officer ", "button": { "buttonText": "Read Bio", "buttonLink": "/team", "buttonNewWindow": false }, "imageId": "6a31cad8cd2cde4b768b4ac2", "image": { "id": "6a31cad8cd2cde4b768b4ac2", "recordType": 2, "addedOn": 1781648088647, "updatedOn": 1781648088700, "workflowState": 1, "publishOn": 1781648088647, "authorId": "5ef78bf8b5a9cd510a03a78f", "systemDataId": "78b7cdf5-17fa-4a3b-9cb5-d924f24bdb36", "systemDataVariants": "300x300,300w", "systemDataSourceType": "WEBP", "filename": "peterlappo-2.webp", "mediaFocalPoint": { "x": 0.5, "y": 0.5, "source": 3 }, "colorData": { "topLeftAverage": "f8f5eb", "topRightAverage": "fdfcf6", "bottomLeftAverage": "37342e", "bottomRightAverage": "fbfaec", "centerAverage": "f8a067", "suggestedBgColor": "dbc2ac" }, "urlId": "djq7n1tpixpud71k32vltbiz4arn9m", "title": "", "body": null, "likeCount": 0, "commentCount": 0, "publicCommentCount": 0, "commentState": 2, "unsaved": false, "assetUrl": "https://images.squarespace-cdn.com/content/v1/67c667c2f60a2113168bc7b0/78b7cdf5-17fa-4a3b-9cb5-d924f24bdb36/peterlappo-2.webp", "contentType": "image/webp", "items": [ ], "pushedServices": { }, "pendingPushedServices": { }, "originalSize": "300x300", "recordTypeLabel": "image" } }, { "title": "Hadyn Gittens", "description": " Country Manager, TT ", "button": { "buttonText": "Read Bio", "buttonLink": "/team", "buttonNewWindow": false }, "imageId": "6a31cac35092893df6a92d70", "mediaFocalPoint": { "x": 0.5001110158587413, "y": 0.07206945212328941 }, "image": { "id": "6a31cac35092893df6a92d70", "recordType": 2, "addedOn": 1781648067235, "updatedOn": 1781648072697, "workflowState": 1, "publishOn": 1781648067235, "authorId": "5ef78bf8b5a9cd510a03a78f", "systemDataId": "5e30d485-345c-4f70-8e5b-ba76e2ab075c", "systemDataVariants": "300x450,300w", "systemDataSourceType": "WEBP", "filename": "hadyn-gittens.webp", "mediaFocalPoint": { "x": 0.5001110158587413, "y": 0.07206945212328941, &
Moruga Agro-Processing and Light Industrial Park
### Become a successful agro-processor today!
e TecK's Moruga Agro-processing and Light Industrial Park was officially launched on July 14th 2020 by Prime Minister Dr. Keith Rowley. The first of its kind in Trinidad and Tobago, the park was built th...
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Moruga Agro-Processing and Light Industrial Park
### Become a successful agro-processor today!
e TecK's Moruga Agro-processing and Light Industrial Park was officially launched on July 14th 2020 by Prime Minister Dr. Keith Rowley. The first of its kind in Trinidad and Tobago, the park was built through the collaborative efforts of Evolving TecKnologies and Enterprise Development Co. Ltd (e TecK), the Urban Development Corporation of Trinidad and Tobago (UDeCOTT) and the Ministry of Agriculture, Land and Fisheries among other government entities.
Take your virtual tour now!
Download the brochure for details- Size: 14.4M bytes
The park offers leasable space for the growth and expansion of operations in the processing of primarily agro products, and light manufacturing. Local and international entrepreneurs will find lucrative investment opportunities for the processing of innovative products from an abundance of exotic natural resources within the heart of Moruga and surrounding areas. Business facilitation services from InvesTT are available to prospective tenants.
Hesma Tyson, 2nd from left, with members of her processing staff at her Moruga factory.
## Made in Moruga!
### Meet some of the pioneers.
Caribbean Specialty Foods Co. Ltd, founded by Hesma Tyson, had its beginnings in her kitchen at home. To grow her product line, she complimented her home base set-up by using external production factory facilities until 2021 when she launched her new operations at eTecK's Moruga Agro-processing and Light Industrial Park. Hesma's products include a tantalizing mix of dips, pepper sauces and condiments made from local fruit and vegetables such as her famous Lime & Mango Dip, Tamarind Hot Sauce, Tomato & Cilantro Dip, Green Seasoning, Tamarind & Mango Dip and much more.
- Read more about Hesma's story here.
- Contact
Touring the Moruga factory: Vassel Stewart, 2nd from left with Sekou Alleyne, President InvesTT (far left), Ric Javed Ali - Deputy Permanent Secretary in the Ministry of Agriculture, Land and Fisheries and Shelly Persad-Bachan - Senior Economist in the Investment Directorate of the Ministry of Trade and Industry.
Woodsman Caribbean Limited, owned and managed by its CEO Mr. Vassel Stewart, produces all-natural health foods, juices and seasonings at the Moruga factory. As a multi-purpose agro-food processing company, most of its products are made from cassava, carrots and other root crops while its beverages are blended with exciting local fruit combinations such as watermelon, coconut and pineapple.
David Johnston, owner of IFarm TT shows off freshly grown lettuce to Sekou Alleyne, President InvesTT during a tour of his factory at Moruga.
- IFarm TT is an indoor vertical farm producing fresh, quality greens to support healthy lifestyles. Founded in 2018, the company began working out of containers and expanded to a warehouse in San Juan for 2 years before making its move to e TecK's Moruga Agro-Processing and Light Industrial Park in 2023. iFarm TT produces fresh greens including romaine lettuce and mushrooms directly out of its factory shell in Moruga.
## Lease Rates
Lease Terms
Factory Shells per sq.ft monthly
Land Lots per annum/per acre
Premium for each land lot per acre
Common Area charges apply
- Maintenance
- TT$17,300
- TT$16,000
- TT$ 1.75
- Land 30 years. Factory Shells 25 years. Rent reviews will be conducted every 5 years.
Discuss this opportunity with an investment officer now.
## Park Features
Land Lots and Factory Shells
Park infrastructure includes all major utilities; electricity, cabling, telephone, internet, water, wastewater treatment and access roads for each lot.
All land lots are offered with ready connections to all utilities while factory shells are built to accommodate ‘Plug and Play’ business set-up– outfitted with all utilities including washrooms facilities. Additional build-out of office spaces will be done by tenants. Parking allocations are included on each lot.
Reserve
The Park includes one designated protected area. This area contains a manmade pond and buffer zone that has been declared a natural feature by the Environmental Management Authority of Trinidad and Tobago.
## Infrastructure
Roads
5 Factory Shells
Major Utilities
6 Land Lots
Parking
Environment
Proximity to International Port
Containerized Transport
Park Manager
- e TecK
- Max. Container Access – 20 ft.
- Port of Point Lisas – 62km
- Woodland Area
- Each lot has allocated parking for 8 cars
- Pre-cleared of heavy vegetation, leveled and offered with ready connections to all utilities.
- Electricity, cable, telephone, internet, water, wastewater treatment.
- Outfitted with all major utilities, offices and washroom facilities. Each lot with completed factory shell will include 18,000 US Gallon water storage tanks. The land lots without factory shells will not have water tank storage.
- All lots are accessible via an established road network
### Supporting Agencies
The National Agricultural Marketing and Development Corporation (NAMDEVCO)
NAMDEVCO’s role is to foster the development of a sustainable, competitive agricultural sector by the provision of programmes that will (1) provide safe, healthy foods to the local and international markets, (2) build the capacity of local farmers, (3) provide market information for timely decision-making, and (4) marketing services.Phone.: (868) 647-3218/3467/3866 / E-mail: contact@namdevco.com
Inter-American Institute for Cooperation on Agriculture (IICA) Trinidad and Tobago Delegation
IICA is the specialized agency for agriculture in the Inter-American system. The IICA has both in-house capacity and external access to technical expertise, best practices, practical experiences, knowledge platforms and expert networks. Phone: 1 (868) 645-4555 / 645-5020 / Email: iica.tt@iica.int
Caribbean Industrial Research Institute (CARIRI)
CARIRI provides a comprehensive range of support services for food processors. These include product and process development, product consultancy, training, food safety systems and audits, contract processing, facility layout, product testing and business support services. Phone: (868) 299-0210 / E-mail: mail@cariri.com
Agricultural Development Bank of Trinidad and Tobago (ADB)
ADB specializes in develop pment financing for the agricultural sector. Financial packages support technologies that can increase food production and profitability. Clients can benefit from supervised credit, amortised lending, unbeatable interest rates, a moratorium, flexible repayment terms and conditions, a combination of expert technical and marketing support, and a special window for micro-enterprise financing. Phone: (868) 612-0163 / Email: adbpos@adbtt.com
## Tenants’ Responsibilities
- Factory shells may be shared by more than one tenant
- Tenants are responsible for overall security and maintenance of the Park
- Each tenant is responsible for obtaining regulatory approvals, for e.g. Town and Country Planning, Water and Sewerage Authority particularly where specific processes will be applied
## About Moruga
The district of Moruga lies on the central south coast of Trinidad. Oil and fishing are the area’s main economies for some residents.
Moruga is home to the Moruga Hill Rice - a strain of American Hill Rice rediscovered in Trinidad in 2016. Originally grown by African slaves, this strain of rice was thought extinct before this occurrence.
The Moruga Scorpion Pepper, one of the hottest pepper varieties in the world also takes its name from this region.
## Become A Successful Agro-Processor today!
Reserve a spot today. Contact us now!
For tenancy enquiries: e TecK
Ms. Waynette Balcon - Snr. Sales Officer, Tel: 224-1989 ext. 2195
Email: waynette.balcon@eteck.co.tt
For Business Facilitation Services: InvesTT
Ms. Stacy Adams - VP, Investor Services Tel: 225-4688 ext. 2104
Email: stacy.adams@investt.co.tt
SEAF Caribbean SME Growth Fund - SEAF Recent Posts SEAF Announces New Strategic Partnerships and Launch of New Fund to Strengthen Polish and Ukrainian Small Businesses March 30, 2026 SEAF Serbia Impact Fund Finalizes Exit From EMU October 28, 2025 City of Lviv and SEAF Sign Memorandum of Understandi...
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SEAF Caribbean SME Growth Fund - SEAF Recent Posts SEAF Announces New Strategic Partnerships and Launch of New Fund to Strengthen Polish and Ukrainian Small Businesses March 30, 2026 SEAF Serbia Impact Fund Finalizes Exit From EMU October 28, 2025 City of Lviv and SEAF Sign Memorandum of Understanding to Advance Reconstruction and SME Development in Ukraine October 16, 2025 SEAF, Bechtel.org & Caterpillar Foundation Partner to Empower Polish & Ukrainian SMEs in Rebuilding Ukraine March 12, 2025 YYTZ Agro-Processing receives SIINC through Daraja Impact September 17, 2024 SEAF's 40th fund, the SEAF Caribbean SME Growth Fund, is a private equity fund that invests growth capital in small and medium-sized enterprises throughout the English-speaking countries of the Caribbean Common Market (CARICOM). While sector agnostic, the Fund is seeking opportunities in promising sectors such as manufacturing, tourism, agribusiness, healthcare, training and education, ICT and financial inclusion, renewable and clean energy services, retail distribution, and transport and logistics. Similar to all SEAF funds, the Fund aims to generate both attractive financial returns and strong social impact by providing equity and active business partnership to companies that have traditionally lacked access to institutional risk capital. Target Fund Size 100 million dollars Fund Term 10 years from first close plus 1+1 Investment Period 5 years from first close Deal Size 3 - 7 million dollars Investment Strategy The SEAF Caribbean SME Growth Fund will address the risk capital financing and business advisory needs required for growth of entrepreneurs and small and medium-sized enterprises in the CARICOM region. The Fund will invest growth capital in 10-15 SMEs for both market returns and social impact. Beyond providing strategic, operational and post-investment support through SEAF’s global network, SEAF also sees the opportunity to build value by improving regional trade and development, increasing exports and import substitution, increasing the availability of quality jobs and aligning impact with the UN Sustainable Development Goals (SDGs). Investment Thesis SEAF believes a dedicated private equity fund, coupled with SEAF’s global network and tested value creation programs, can provide catalytic growth in the Region and help develop the next generation of entrepreneurs. The Fund will target companies in the English-speaking countries of the Caribbean Common Market, from its headquarters in Jamaica and representatives in Trinidad & Tobago, Guyana, and Barbados. While taking a sector-agnostic approach, the Fund will seek opportunities in promising sectors such as Manufacturing, Tourism, Agribusiness, Healthcare, Training & Education, ICT & Financial Inclusion, Renewable & Clean Energy Services, Retail Distribution, Transport & Logistics. The Fund will address the following SDGs: #2 Zero Hunger, #3 Good Health and Wellbeing, #4 Quality Education, #8 Decent Work and Economic Growth and #9 Industry, Innovation and Infrastructure. Region: Latin America Location(s): English-speaking CARICOM countries Headquarter(s): Jamaica, with representative offices in Trinidad & Tobago, and advisors in Barbados and Guyana Start Date: 2019 Status: Active Committed Capital: $40 Million + Managing Director: Leo Williams Investment Focus: Caribbean Region SMEs Targeted Instrument: Equity or quasi-equity Investment Approach: Control or significant minority stake Local Team Leo Williams Fund Managing Director Mr. Williams is a seasoned investment professional with 25 years of experience in Investment and Business Consulting. Prior to joining SEAF, he founded Williams & Associates, an investment advisory firm focused on Jamaica and the wider Caribbean region. He is a former Director and Int’l Bus. Dev. Mgr. of Jamaica Money Market Brokers Ltd, and a former Director of the Jamaican Stock Exchange. Mr. Williams has also led several divisions within General Electric USA and Spain and was a consultant at the Boston Consulting Group. He holds BSc. Engineering from Princeton University, an MSc. Engineering and MA Int. Studies from the University of Pennsylvania and an MBA from Wharton School of Business. Gerard Johnson Senior Advisor Mr. Johnson is Senior Advisor for SEAF’s Caribbean initiatives based in Kingston, Jamaica. He is also a partner in an investment facilitation company; senior policy advisor to the Minister of Finance and the Public Service in Jamaica; and the regional representative for an international firm specializing in trade facilitation. Gerard has also held various positions with the InterAmerican Development Bank (IDB), including GM of the Caribbean Country Dept.. He holds a B.A (Economics) from Georgetown University, a Post Graduate Diploma (Economic Analysis) and a Masters Degree (Economics) from the University of Kent at Canterbury. + test
### Commercial Investment OPPORTUNITIES at The UW I
Discover some of the innovative and ground breaking research and technologies developed on the UWI St. Augustine Campus that are ready to yield exciting commercial opportunities for investors.
Partner with us and benefit from our decades of resea...
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### Commercial Investment OPPORTUNITIES at The UW I
Discover some of the innovative and ground breaking research and technologies developed on the UWI St. Augustine Campus that are ready to yield exciting commercial opportunities for investors.
Partner with us and benefit from our decades of research and product development. Create new sustainable industries and income streams. Become a catalyst for economic transformation. FIND YOUR OPPORTUNITY!
Invest in UWI SEAL-IT – safe, sustainable, cost-effective products with global potential, developed right here at The UWI St. Augustine Campus.
1. Plastic Cement A multipurpose sealant and waterproofing solvent based on locally available asphalt, bitumen, and polypropylene resin for interior and exterior. It bonds strongly and gives durable protection and a slightly tacky and flexible surface for laying down single-ply membrane. Works in both tropical and temperate climates. Uses: For roofs, concrete, metal, wood, drainpipes, gutters and other surfaces. 2. UWI Primer This is a multipurpose primer and coating solvent using locally available asphalt for interior and exterior uses. Researchers have formulated three levels of viscosity – low, medium, and heavy - to suit varying needs. Uses: For waterproofing and priming of roofs, concrete, metal and wood. 3. UWI 4-in-1 Coating A multipurpose primer, paint, coating and oil absorbing product based on locally available asphalt. This is a heavy-duty coating suitable for both interior and exterior uses, especially demanding industrial situations where a tough, impermeable layer is required. When applied to oily concrete surfaces, it dries and forms a hard surface. Uses: Suitable for metal work (eg. roofs), concrete, wood and other surfaces.
UWI SEAL-IT LTD. Breakthrough Solutions for Construction and Marine Industries UWI SEAL-IT is ready to revolutionise the Construction and Marine sectors with its innovative and climate resilient asphalt-based products. We have developed a line of exceptionally durable coatings and sealants that can withstand the harshest environmental conditions with a lifespan of up to 20 years. These solvents provide UV protection, and are non-toxic and non carcinogenic. Tested under real-life conditions, our products outperform existing alternatives in both tropical and temperate environments, making them reliable choices with export potential. All products are based on locally available asphalt and are all backed by UWI’s expertise and decades of research in physical and materials science.
The Opportunity There is an immediate investment opportunity to scale up manufacturing and distribution or to enter into license agreements. This science-backed, technology driven enterprise has tremendous domestic and export potential.
4. UWI Marine Coating A multipurpose sealant and coating solvent based on locally available asphalt, for marine-based vessels, equipment and structures. Bitumen, paste and oxide are used for interior and exterior. It is used as a coating for all types of metal work, forming a strong bond that can withstand saltwater and has low permeability to water and oxygen and inhibits corrosion. Uses: For barges, rigs, boats, marine pipelines, slings, seafront roofs, beach front properties, etc.
Unlock the full potential of Trinidad and Tobago’s world-renowned fine flavour cocoa and capitalise on the global appreciation for the health and other benefits of ethically and sustainably grown cocoa.
UWI Fine Cocoa Products Ltd. A Taste of Excellence! UWI’s Fine Cocoa Products Ltd. capitalises on Trinidad’s reputation for world-class cocoa with a unique flavour profile, health benefits and a low carbon footprint. As the home of the Cocoa Research Centre which manages the largest cocoa genebank in the world, the campus is well placed to produce a range of innovative, high-value cocoa and dark chocolate products. There are also opportunities for various cocoa derivatives and downstream businesses, such as high-grade cocoa nibs, cocoa mass, chocolate, and couverture production which are estimated to be at least four times more valuable than raw beans. Branded chocolates like ‘Spirit of Chocolate’ are 12 times more valuable, and with the CRC providing quality certification and technical support, investors can trust the quality and unique flavour profile of our cocoa. As proof of that trust, the project has already attracted over TT$10 million in grant funding, and is off the ground with a state-of-the-art manufacturing facility and equipment.
The Opportunity There is an immediate opportunity to scale up and diversify product offerings in keeping with the global demand for premium fine flavour cocoa and chocolate. A purpose-built factory and machinery are already making this a “plug and play” opportunity for investors with marketing expertise to promptly enter the thriving, ultra-niche market for fine flavour dark chocolates. Investment opportunities exist for cocoa farms, as well as for those in the culinary, cosmetics, and pharmaceutical industries, and for the creation of a venture capital fund.
A safe, eco-friendly biopesticide made specifically to combat common plant diseases in tropical environments.
The Opportunity There are excellent opportunities for investors from various agro industries - including manufacturers of agrochemicals, as well as businesses interested in corporate or large-scale farming systems.
Biophyt 1.0 is a biopesticide designed for tropical vegetable production systems. A safe, eco friendly alternative to synthetic pesticides, it promotes plant growth and effectively manages diseases such as root rot, collar rot, wilt, leaf spot, and leaf blight caused by fungal and bacterial pathogens. Current research focuses on determining recommended doses for increased lettuce yields and on protecting banana plants from diseases that are threatening to debilitate the regional banana industry.
Key Attributes:
1. Crop Yield Enhancement: Biophyt 1.0 acts
as a growth stimulant, optimising crop
productivity.
2. Disease Management: Targeted solution
for common plant diseases in tropical
environments.
3. Preventative Control: Recommended for
proactive disease prevention in crops.
4. Boost Plant Immunity: Enhances natural
defence mechanisms for improved resilience.
5. Safety Assurance: No known hazards to
human, animal, or aquatic life.
Biophyt 1.0 A Green Biopesticide Solution
BioStimulant OJA001s Sustainable Agriculture from Sargassum
BioStimulant OJA001s is a seaweed-based agricultural extract, derived from the abundance of sargassum washing up on local beaches. This 100% organic extract is filled with nutrients to promote plant growth and yield, and to enhance plant resistance. It is non-toxic, environmentally friendly, and compatible with other agrochemicals.
##### A sustainable solution to support healthy agriculture and food production.
| | agrochemicals, | | |
| --- | --- | --- | --- |
| | and businesses | | |
| | interested in | | |
The Opportunity There are excellent opportunities for investors from various agro industries - including manufacturers of agrochemicals, and businesses interested in corporate or large scale farming systems. This is a sustainable approach that aligns with the growing demand for environmentally conscious agricultural practices.
| | scale farming | | |
| --- | --- | --- | --- |
| | systems. This | | |
| | is a sustainable | | |
| | approach that | | |
| | aligns with the | | |
BITREM (Biometric IT Using Regular Expressions Machines) is a an entirely home-grown fingerprint recognition technology solution. Globally, leading businesses are increasingly using biometrics to distinguish individuals, particularly in critical sectors like health information technology, where misidentifications may have life-threatening consequences. This technology helps prevent unauthorised access to personal data and reduces the risk of identity theft or forgery. Local and regional businesses are embracing digital transformation and want to ensure that their customer data is secure and properly assigned. However, the fingerprint recognition market is currently dominated by a few large international companies and their licence agreements are often expensive and unsustainable for Caribbean businesses. The ability to license high quality biometric software at affordable rates makes this technology more accessible to Caribbean businesses, thus increasing their competitiveness.
Affordable access to high quality biometric software to give Caribbean businesses a competitive edge.
The Opportunity The patent for BITREM is owned by The UWI St. Augustine Campus, and company incorporation is planned. This is an ideal license agreement opportunity for a company with software system integration capabilities, to produce a robust and supportable software package, supported by appropriate fingerprint capture hardware. As a locally developed technology solution, BITREM offers a working system at lower cost than its foreign competitors, with transactions in our local currency. The technology is a key piece of intellectual property on which to build a larger software ecosystem.
BITREM Identity Security Made in T&T
### With UWI’s extensive network and research capabilities, investors have a reliable partner for innovation and investment.
The University of the West Indies St. Augustine Campus is a premier research institution with a rich legacy and distinguished reputation. With elite scientists, academic excellence and innovative research, The UWI is poised and ready to engage in partnerships toward transforming our groundbreaking research into thriving commercial ventures.
https://sta.uwi.edu
#### Collaborating with the business community to transform innovations into thriving commercial ventures
For further information, contact
MS. MIRIAM SELF Senior Programme Officer Office of the Campus Principal E: STA-Principal@sta.uwi.edu T: 1 (868) 662-2002 Ext. 83956
## innovation sustainability econom
## ic growth
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