Bridgetown, Barbados, 24 February 2025 – The CARICOM Development Fund (CDF) and the African Export-Import Bank (Afreximbank) have signed a €708,000 grant agreement to establish the Green, Resilience, and Sustainability Facility (GRSF), aimed at bolstering climate adaptation and sustainable development across the Caribbean. The deal, formalized during the 48th Regular Meeting of the Conference of Heads of Government of CARICOM at the Wyndham Grand Barbados Sam Lord’s Castle, targets a $20 billion resilience financing gap in the region, driven by escalating climate and economic challenges.
The GRSF will offer blended and concessional financing, enabling CARICOM member states to fund critical infrastructure, climate resilience projects, and sustainable growth initiatives. This aligns with CARICOM’s ambition to foster a self-sufficient and adaptable region amid rising environmental risks. The facility’s flexible funding model is designed to mitigate the fiscal strain caused by frequent and severe weather events, a growing burden for Caribbean economies.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, underscored the facility’s transformative potential. “GRSF will provide a means of catalyzing and mobilizing investments to support Caribbean countries that are facing economic and fiscal challenges arising from the impact of frequent and intense adverse weather phenomena associated with climate change,” he said. “It will also act as a mechanism to finance climate-related loss and damage and build resilience that will mitigate impacts and empower Caribbean Community member states to withstand these challenges, working towards closing the region’s US$20 billion resilience financing shortfall.”
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Rodinald Soomer, CEO of the CARICOM Development Fund, hailed the agreement as a milestone for regional sustainability. “This grant from Afreximbank will enable the CDF to strengthen its support for CARICOM Member States as they navigate the pressing environmental and economic challenges of our time,” he stated. “The Green, Resilience, and Sustainability Facility is a critical step towards ensuring long-term resilience and economic sustainability.”
The partnership builds on a 2023 memorandum of understanding between Afreximbank and the CDF, reinforced by the CDF’s acquisition of shares in the multilateral bank. It reflects a deepening collaboration to address the Caribbean’s complex development needs through innovative financing. The CDF is also working with the United States Agency for International Development (USAID) on the Caribbean Community Resilience Fund (CCRF), another blended finance initiative to attract capital for climate resilience from commercial and impact investors.
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The agreement comes as CARICOM leaders grapple with economic recovery, climate action, and sustainable development at their annual summit. With the region increasingly vulnerable to climate shocks, the GRSF aims to channel investments into high-impact areas, reducing dependence on external aid and fostering market-based solutions. The CDF’s financial innovation team is spearheading efforts to expand partnerships across sectors, positioning the Caribbean as an attractive prospect for investors seeking opportunities in emerging markets.
As climate change intensifies, the GRSF represents a pragmatic step toward closing the region’s financing gap while equipping member states to withstand future shocks. The initiative underscores the growing role of regional and international cooperation in tackling the Caribbean’s intertwined economic and environmental challenges.
