The United Nations Framework Convention on Climate Change (UNFCCC) 29th Climate Conference of Parties (COP29) met in Baku Azerbaijan 11-22 November 2024. Dubbed the ‘Finance Conference’, there was an expectation especially from vulnerable and marginalized economies, that this gathering would address how Small Island Developing States (SIDS) and other similarly affected economies would finance climate action and build resilience to ensure their sustainability.

By now, everyone would be familiar with the “1.5 to stay alive” campaign that sought to build awareness about the state of global warming and the necessity to keep global temperatures below 1.5 degrees Celsius. Scientists have long argued that human action, including the burning of fossil fuels like coal, gas and oil in homes and industry, have contributed to rising carbon dioxide levels, increasing the earth’s temperature. These rising temperatures lead to more frequent and intense weather, heatwaves, heavy rainfall and flooding, rising sea levels and more intense storms and hurricanes.

With 2024 already on target to be the hottest year on record¹ , this sobering assessment will have detrimental effects for SIDS including the Caribbean. Only in July this year, hurricane Beryl was the earliest category 5 storm to be recorded, causing hundreds of millions of dollars in damages and complete loss and devastation to Carriacou and Petite Martinique, Grenada. Thus, the imperative for ALL economies to act is not one grounded in a medium-to-long-term trajectory, but one that is a lived experience for us in the Caribbean.

Caribbean actors, large and small, private and public, must play a role in building a resilient community. Recognizing this, and with Caribbean Export’s mandate in mind, as the leading implementer of private sector programmes in the Caribbean, the Agency curated a panel discussion as its contribution to Caribbean voices at COP29 – Building Climate Resilience in the Caribbean Region – A Private Sector Approach.

While the Caribbean is renowned for its natural beauty, it is already reeling from the devastating impacts of climate change and environmental degradation imposing significant economic strain on industries such as tourism and agriculture, and overall economic development. Hurricane impacts, tourism losses and infrastructure damage from sea level rise could amount to USD22 billion per year by 2050 and USD46 billion per year by 2100, representing 10% and 22% of current regional GDP² .

Beyond the hazards of climate change, the region faces another challenge of high energy costs. In the OECS, energy rates exceed US$0.35/kWh³ , which is more than double the average energy cost in the OECD of US$0.15/kWh and far above the global average of US$0.17/kWh⁴ . This economic pressure is especially severe when combined with the region’s efforts to recover from the COVID-19 pandemic, which has disrupted supply chains and strained local economies. Save for Trinidad and Tobago that benefits from lower energy costs due to domestic oil and gas production, the rest of the region continues to face the burden of high energy prices, making the region uncompetitive across many industries.

At the same time, the challenges posed by high energy costs and climate vulnerability highlight the need for a comprehensive green economy transition. Such a transition, while urgent, is bursting with opportunities for economic transformation. Renewable energy, including solar, wind, and marine energy, represents one of the Caribbean’s most promising sectors. The region is blessed with abundant natural resources. Between 2015 and 2022, the Caribbean increased its renewable energy capacity by 51%, reaching 64% of the generation from renewable sources in 2022⁵ . However, this pace must be accelerated. As population and economic growth continue, electricity demand is projected to increase by an annual average of 2.3% from 2022 to 2050⁶ , further amplifying the need for sustainable and efficient energy solutions.

The green economy transition also offers substantial economic benefits. A joint report by the International Labour Organization and the Inter-American Development Bank published in 2020 estimated that decarbonization efforts could create approximately 400,000 jobs in the Caribbean⁷ . Furthermore, the International Renewable Energy Agency has projected that for every US dollar invested in the energy transition, an additional US$0.93 of GDP growth could be generated beyond the business-as-usual scenario. These figures illustrate the potential for significant economic gains through sustainable investments⁸.

Data shows that SMEs account for between 70 and 85% of Caribbean economies, thus as engines of growth across important sectors of the economy, SMEs can make a significant contribution to the transition to greener and more climate friendly practices which in turn portend significant job creation while mitigating climate risks.

Turning to the panel discussion, joining Caribbean Export’s Executive Director were the Executive Director of the Caribbean Centre for Renewable Energy and Energy Efficiency (CCREEE), Vice President of Caribbean Development Bank and Founder and Chairman of Kenesjay Green, an SME and operator in the renewable energy space.

The discussion raised some critical points for consideration on how SMEs can be supported to achieve greater impact in addressing climate action. These can be summarized as follows:

1. Access to finance will increase the scope and scale of projects to assist in the green transition
   • Green practices and strategies require significant investments in renewable energy systems, energy efficient equipment, waste management etc. Thus, access to funds will allow SMEs to adopt the innovative solutions required to make a significant impact, implementing green solutions and making an overall contribution to climate imperatives.
2. Technical assistance is an important driver
   • While efforts at the green transition are popular in the Caribbean, many SMEs lack detail on green technologies and practices, as well as the practical benefits and solutions to transition to sustainable operations. Thus, we cannot overstate the importance of knowledge transfer, including the conduct of assessments including energy audits, to pinpoint opportunities for greener practices. Moreover, the need for the right innovative technologies and appropriate solutions were also identified.
3. The need for a supporting enabling environment
   • Clear, enforceable and predictable policies and regulatory frameworks are important not only for the SMEs but are important signals for investors and financiers as these policies encourage innovation. A call was made for Caribbean governments to act with alacrity to update the policies to attract the private capital to finance the transition.
4. Partnerships for climate action
   • Collaboration is essential to address climate action and to build a more resilient Caribbean. Due to the complexities around building climate resilience, partnerships will require not only pooling resources, but also expertise, the input of local communities and international partners to deliver impact.

Conclusion

The Caribbean faces unparalleled challenges from climate change, but it also has immense potential for transformation. The private sector is a critical driver of this change, capable of fostering innovation and accelerating the green economy transition. Access to financing, capacity building, supportive policies, and collaborative partnerships are key to this effort.

While COP29 fell short of expectations⁹ , the region’s resilience lies in its ability to act decisively. By embracing sustainable practices and amplifying advocacy efforts, the Caribbean can redefine its economic future. Climate resilience is not only a necessity but an opportunity for the region to thrive, creating a more inclusive and sustainable legacy for generations to come.

1. WMO 2024 on track to be hottest year on record ↩︎
2. Thomas A, Menke I, Serdeczny O. Loss and damage costing and financing mechanisms: Caribbean outlook. Climate Analytics. April 24, 2018 ↩︎
3. Koon Koon R, Shah K, Ashtine M, Lewis S. A Resource and Policy Driven Assessment of the Geothermal Energy Potential of St. Vincent and the Grenadines  ↩︎
4. https://www.statista.com/statistics/183700/us-average-retail-electricity-price-since-1990/ ↩︎
5. Inter-American Development Bank. Energy Transition in Latin America and the Caribbean. January 2023 ↩︎
6. U.S. Energy Information Administration. International Energy Outlook 2023. September 2023 ↩︎
7. Caribbean Export and CCREEE Cooperate to Support Sustainable Energy Development and Create Jobs- https://ab.gov.ag/pdf/CCREEE_CE_create_Jobs.pdf ↩︎
8. STATE OF THE LEAST DEVELOPED COUNTRIES 2021 Building back better in response to COVID-19
   https://www.un.org/ldc5/sites/www.un.org.ldc5/files/stateldc_2021.pdf ↩︎
9. COP29: Small island states ‘feel abandoned’ as climate talk grind on https://www.euronews.com/green/2024/11/19/cop29-small-island-states-feel-abandoned-as-climate-talks-grind-on  ↩︎

The convening power of the African-Export Import Bank (Afreximbank) was on full display last week as twenty-five current and former Heads of State from the continent and the Caribbean, Ministers and Heads of International Agencies, Aliko Dangote, Jeffrey Sachs, Viola Davis, Wyclef Jean, Rick Ross, Folakwe Olowofoyeku, Boris Kodjoe, and numerous other global brands and renowned individuals, descended on Nassau the Bahamas from 12 – 15 June, for the Afreximbank’s 31st Annual Meeting (AAM) and the third AfriCaribbean Trade and Investment Forum (ACTIF). The theme – ‘Owning our Destiny: Economic Prosperity on the Platform of Global Africa’.

In recent years, Caribbean-Africa relations have been building momentum. In 2021, the inaugural Caribbean Community (CARICOM)-Africa Summit was held virtually. This meeting breathed new life into this historic relationship, given the reality of Africa as the fastest growing continent in the world. In fact, Africa’s economy sees immense potential. The Africa Continental Free Trade Area notes that by 2035, there is expected to be a US$ 450 million boost to the economy, lifting 30 million people out of poverty.

Recently, the African Union declared the Caribbean as the sixth region of Africa, marking a full-circle moment, hinging on a proud and celebrated history, but one that holds immense economic and transformative potential for the regions.

The Afreximbank has cemented their role in this partnership, moving beyond rhetoric and sentimentality. In Bahamas, delegates were reminded of the role of the Bank in securing much needed vaccines for Africa and the Caribbean when, during the COVID-19 pandemic, individual Caribbean and African vaccine orders were insignificant to garner the attention of vaccine manufacturers. The Afreximbank under the leadership of Professor Benedict Oramah, guaranteed up to US$ 2 billion through the Africa Medical Supplies Platform for millions of doses to contain the pandemic across the regions.

More recently, the Board of Directors of Afreximbank approved US$1.5 billion funding to enable member states of CARICOM that have ratified the Partnership Agreement with Afreximbank, to tap into the Bank’s various financial instruments to support economic sectors including tourism, healthcare, renewable energy, shipping, mining, agriculture and agribusiness, air links, and aquaculture. Afreximbank will also work to support local financial institutions to source finance for SMEs. To date, 11 CARICOM members have signed on to this Agreement, and since the opening of the Bank’s CARICOM office in late 2023, financing has been provided under this arrangement to Saint Lucia and Barbados for instance, supporting school rehabilitation and sports infrastructure respectively.

The AAM delivered on its theme; there was a recurring sentiment of self-determination, a reunion, a shared vision of economic prosperity. At the same time, this polycrisis world is marred by deglobalization and rising protectionist policies, the antithesis to the notion of interconnectedness at the start of the 21st century. These global challenges have caused the compulsion to look within and across, rather than outside, for the solutions to building resilient societies. A prominent voice exalted, “Africa and the Caribbean must not outsource its development.”

Trade between Africa and the Caribbean portends significant potential. Africa’s exports to the Caribbean or the region’s exports to Africa stand at less than 1% according to the ITC, and are concentrated in a few products, including petroleum. While this volume of trade is low, it represents a significant opportunity for an expansion of trade and investment between the partners. Africa is home to 60% of the world’s arable lands and together with Suriname and Guyana, with enhanced logistics, supply chain connectivity and infrastructure investments, the region can feed itself.

In the area of services including film, music, fashion, art, literature, gastronomy and sports, the Bank is leading innovative programs to leverage the Creative Africa Nexus (CANEX) platform to support the expansion of the creative and cultural economy within Africa and the diaspora. Several initiatives and partnerships were unveiled, including with some of the global personalities mentioned earlier.

The meeting in the Bahamas witnessed hundreds of millions in deal signings, Agreements of Intent as well as Memoranda of Understanding, including with the Caribbean Export Development Agency. The MOU between the two agencies seeks to boost Africa-Caribbean trade and investment through collaborative initiatives focusing on capacity building, knowledge sharing, and trade facilitation for the private sector, including MSMEs. It also seeks to foster reciprocal investment and unlock new business opportunities across both regions. This builds on work already started since Caribbean Export’s inaugural trade and investment mission to Accra Ghana and Lagos Nigeria in June 2023, leading a delegation of over 30 Caribbean public and private sector participants. This framework will provide the basis to advance meaningful exchanges to enhance business ties across the regions. Caribbean Export’s flagship Caribbean Investment Forum, now in its third year can support this mandate to increase the pipeline of projects from Africa and the Caribbean.

The sobering thoughts of the global economy, the climate crisis and shifting geo-politics were put to rest, albeit temporarily, as the week culminated in a world class celebration of everything Afro-Caribbean – a manifestation of unity through the arts. It reminded us that only an ocean separates us. The Afreximbank must be commended for providing the platform for identifying south-south solutions for our economic emancipation.

A senior level team from Caribbean Export was in Guyana from 4- 9 March, 2024 to meet with the host Government and related agencies to plan for the Caribbean Investment Forum (CIF 2024) scheduled for July 10-12, 2024 at the Arthur Chung Conference Centre.

Caribbean Export, in partnership with the European Union and the CARICOM Secretariat will host the 3rd edition of this landmark initiative under the patronage of His Excellency, Dr Mohamed Irfaan Ali, President of the Cooperative Republic of Guyana. President Ali, no stranger to the Agency having been the distinguished Keynote speaker at the 2022 Caribbean Investment Forum in Dubai UAE, positions Guyana again, as well as the rest of the Caribbean in this initiative to transform the region.

Guyana has consolidated its position as the world’s fastest growing economy in 2024 driven by the oil boom, registering 62% national output in 2022, and 27.2% and 34.2% expansion in 2023 and 2024 respectively1 . Moreover, the country’s economic landscape has shifted with the attendant support services for the petroleum and gas sector increasing from 0.2% of GDP in 2015 to 57.3% in 2022, displacing the agricultural sector as the country’s economic mainstay.

Despite this fortune, the country remains committed to its place as the breadbasket for the Caribbean and its food security pledge to increase agricultural production in foods such as rice, soy and other produce. Investments in modernising the agriculture industry are key, including smart and sustainable agriculture and innovations to its mega-farms to leverage Guyana’s landmass. As a colleague from Go-Invest, the national Investment Promotion Agency of Guyana shared an analogy, “all of CARICOM can fit into Guyana.” In addition, several large infrastructure projects are underway, from road expansion networks in Georgetown, to road links aimed at connecting with neighbouring countries Suriname and Brazil. It is therefore no surprise that at the recently concluded CARICOM Heads of Government meeting held just two weeks ago under the Chairmanship of President Ali, the meeting hosted His Excellency Luiz Inacio Lula Da Silva, the President of Brazil. This signals a commitment to strengthen south-south cooperation among the parties.

Moreover, anyone traveling to Guyana recently would understand the challenges of securing quality accommodation at reasonable prices. This however is set to change, with the addition of close to 1000 rooms to the accommodation listing by 2025. Internationally branded hotels such as Hyatt Place, Four Point Sheraton, AC Marriott and Marriott Courtyard Hotel will add Guyana to their global footprint and increase the value proposition of the country.²

Other sectors poised for investment include ICT and innovation, critical inputs for enhancing the digital landscape of the country to make it internationally competitive and to take advantage of all the developments that will emerge. Moreover, as more than 80% of Guyana is covered in forests3 , this augurs well for ecological services and green output. Consequently, while Guyana will experience record oil production in the coming years, upstream and downstream investments will be cross-cutting, catapulting economic yield. With a population of less than one million, there is insufficient local labour to meet the growing demand. Therefore, Caribbean nationals, and indeed others, will be heading to Guyana to take advantage of the growing economic activity, an ironic reversal as witnessed in the mid to late twentieth century when Guyanese left for the diaspora.

Based on the foregoing, Caribbean Export is therefore confident in its decision to host this forum with three featured themes for investment – Sustainable Agriculture, Digitalization of Business, and the Green Energy transition. The event is primed to follow the 2022 and 2023 iterations held in Trinidad and Tobago and the Bahamas respectively, with 500 business delegates in each showing, and global participation from more than 40 countries. These include investors and financial institutions, C-suite executives from regional and international conglomerates, and regional and international partners.

It would be remiss to not point out the strong partnerships that Caribbean Export has endured over the years in its work supporting the Caribbean’s private sector. Our 92% implementation rate achieved in 2023 for the 11th European Development Fund Regional Private Sector Development Programme which ended in September 2023 is proof of the Agency’s leadership in this space, and the high-level meetings over the week stand as a testament to the strength of our collaboration.

Thanks to the Head of the EU Delegation in Guyana Ambassador Van Nes, CARICOM Assistant Secretary General for Economic Integration, Innovation and Development Joseph Cox, IDB Country Representative for Guyana Lorena Solorzano-Salazar, as well as the leadership of several private sector agencies such as the Georgetown Chamber of Commerce and Industry, the Guyana Manufacturing and Services Association and the EU-Guyana Chamber of Commerce. The team also met with senior representatives of the Office of the President, the Ministry of Tourism, Industry and Commerce and Go-Invest. These partners were apprised of the work of the Agency, and on the staging of CIF2024.

CIF2024 will showcase the best of Guyana with the opening ceremony on Wednesday 10th July where H.E. Irfaan Ali will present his keynote address followed by a cultural evening and networking reception. The following two days will include morning plenary sessions with presentations of shovel ready projects in the three areas, as well as the investment village and expo featuring product demonstrations, business meetings and country presentations from Caribbean Investment Promotion Agencies in the afternoon.
Indeed, there is a buzz in Guyana, and the energy is palpable. We look forward to seeing you then.

1. https://www.spglobal.com/marketintelligence/en/mi/research-analysis/the-worlds-fastest-growing-economy.html#:~:text=Guyana%20registered%20the%20world’s%20highest,fastest%2Dgrowing%20economy%20in%202024 ↩︎
2. Guyana Tourism Authority, in Georgetown Chamber of Commerce Publication 2023 ↩︎
3. https://guyanainvest.gov.gy/wp-content/uploads/2020/11/G-iNVEST-Brochure-President-Ali-Speech-on-Guyana-Investment-Opportunties.pdf ↩︎

It’s been one month since Caribbean Export’s Executive Director and Services Specialist met with Government Officials in Grenada to advance the country’s transformational agenda. One of the key takeaways from that engagement was the identification of capacity building support to the islands’ agro-processors.

Consequently, a 2-day workshop, entitled “Leveraging CARIFORUM Trade Agreements” was hosted by Caribbean Export, in partnership with the European Union Delegation in Barbados from 22-23 February 2023 at the Radisson Grenada Beach Resort. This workshop covered several topics that are key considerations for MSMEs that are already exporting, or those considering exporting to the European Union.

Minister Joseph Andall, Minister for Foreign Affairs, Trade and Export Development delivered the opening remarks, demonstrating the government’s commitment to the private sector. He noted “The Government of Grenada is committed to building and supporting the development of world class brands that are capable of successfully competing in both regional and international markets, with special focus on the European market. As such, this workshop today is critical for firms that are serious about taking advantage of trade agreements such as the CARIFORUM-EU Economic Partnership Agreement and getting their products into those markets.”

Ms. Carlene Hamiliton of the EU Barbados and Eastern Caribbean States delegation navigated the EU export requirements portal to a packed room of close to 50 participants comprising representatives from 35 MSMEs and 11 Ministry and Business Support staff. Ms. Mikaela Stoute – Research Officer Market Intelligence and Ms. Natasha Edwin-Walcott, Senior Advisor Competitiveness and Export Promotion from Caribbean Export emphasized ways to assess a firm’s export readiness, leveraged key market research and intelligence tools and showcased how to prepare for export promotion and enter new markets. As far as possible, real-world examples were demonstrated, highlighting the opportunities and export potential of Grenadian products, but also the challenges of market access.

The Grenada Trade and Investment Officials as well as Grenada Bureau of Standards presented on the Grenada economy and the importance of standards and labeling in exporting products.

Participants’ products ranged from seamoss, teas, chocolate, water, sauces and condiments as well as service providers. By the close of the session on day two, the room was just as full as day one. Representatives were fully engaged, provocative in their thinking and ready to improve their business and export plans to take advantage of the trade opportunities presented.

Caribbean Export acknowledges the support provided by the local partners and business support organisations such as the Ministry of Foreign Affairs, Trade and Export Development, Grenada Investment and Development Corporation and the Grenada Chamber of Industry and Commerce for the leadership in hosting this event.