The Caribbean economy is rapidly evolving, fueled by the need to, among other things, implement innovative responses to climate change, increase competitiveness through digitalization, and reduce the reliance on the often volatile Tourism Industry through strategic diversification of national economies. As governments, Investment Promotion Agencies (IPAs) and regional bodies lead the charge to transform the Caribbean economy, global investment trends are further positioning the region as a lucrative location for global investors seeking to diversify their portfolios, make developmental impacts and enhance their ROIs.
The data is already showing the movement towards increased investment in the region.
According to the United Nations Conference on Trade and Development (UNCTAD) World Investment Report 2023, foreign investment in Latin America and the Caribbean rose by 51% in 2022, with Foreign Direct Investment (FDI) to the Caribbean, specifically, increasing by 53%. The same report indicated that over the past five years, regional economic bodies have attracted FDI flows in line with the overall trend seen in Latin America and the Caribbean. In 2022, member states of the Caribbean Community (CARICOM) saw investment doubling to 6.9 billion.
Of course, there is room for even more investment opportunities and FDI to flow into the region if the region capitalises on investment trends.
Renewable Energy Investments
The region’s abundant sunshine and strong winds make it a prime location for investments in renewable energy projects. Already, Caribbean governments are enshrining sustainability goals and climate resilience into their national development policies. Private interests are also developing Solar PV initiatives and Wind Farm projects. While this shift is underway in the region, global investors are capitalising on lowering costs in the renewable energy sector. The reduced costs have led to an impressive growth in clean energy investments in recent years. According to Bloomberg NEF Energy Transition Investment Trends 2024 global clean energy investment jumped 17% to $1.8 Trillion in 2023. The trend of clean energy investments is likely to continue in the foreseeable future, and regional governments, companies and start-ups can position themselves for partnerships with global investors to achieve renewable energy goals.
Agribusiness Venture Capital
In a world being radically transformed by the effects of climate change and buffeted by military conflicts and geopolitical tensions around the world, the global food supply chain seems constantly under threat. In vulnerable regions like the Caribbean, where 23 CAIPA Secretariat countries import 94% of their food, and the agricultural sectors seem routinely under-developed, it is vital for governments to increase investment into the sector. While vertical farming has been a recent buzz term in agricultural spaces, the integration of artificial intelligence into agribusiness is also very popular among venture capitalists.
Of course, there are other investment trends to which regional leaders must pay attention. For more insight on such trends there is no better resource than the Caribbean Investment Forum (CIF) 2024. The third iteration of the seminal event developed by the Caribbean Export Development Agency (Caribbean Export) will be held in Guyana from July 10 – 12, 2024. It will bring together global investors, innovators, industry leaders and policymakers to discuss opportunities across four key tracks – Sustainable Agriculture, Green Economy Transition, Digitalisation of Business, and Sustainable Development.
Among the presentations expected to showcase the ways regional governments, companies and start-ups can adapt to changing investment trends are:
- The presentation on ‘How the CARIFORUM-EU EPA Facilitates Investment‘ to be given by Carlene Hamilton, Trade Policy Officer, Delegation of the European Union to Barbados, the Eastern Caribbean States, OECS, and CARICOM/CARIFORUM
- The Ministerial Roundtable: ‘Fostering Sustainable Development through Innovative Investment Strategies In the Caribbean: Opportunities and Challenges‘ which will feature ministers from Grenada and Guyana, and
- A Panel Discussion on ‘Revolutionising Investment Finance in the Caribbean For a Thriving Future’ which will feature representatives from the European Investment Bank, Republic Financial Holdings, CrossBoundary Group and Impact Investing Institute.
By adapting to changing investment trends and positioning itself as a viable investment locale, the Caribbean will increase and enhance the investments and partnerships it secures. Be part of CIF 2024 to discover more about what trends could have the biggest impact on different sectors and how public and private sector decision-makers are seeking to respond.
Register now for CIF 2024 at https://caribbeaninvestmentforum.com!
