The CARICOM (Carib-bean Community) Development Fund (CDF) has partnered with the United States to launch a fund to promote resilience in small and medium enterprises and critical infrastructure projects. A CARICOM release yesterday said that the fund, which will be known as the CARICOM Resilience Fund was officially launched in Barbados, on January 26, 2024. It explained that the new US$100 million blended finance vehicle, with technical assistance provided by the US Agency for International Development/Eastern and Southern Caribbean, is dedicated to supporting initiatives that will enhance growth and resilience across the region in the face of climate change.The CARICOM Development Fund (CDF) was established in 2008 and is a key developmental mechanism in the architecture of the CARICOM Single Market and Eco-nomy (CSME). It is committed to achieving its vision to lead in providing effective, efficient and sustainable solutions that address the challenges faced by disadvantaged countries, regions and sectors participating in the CSME.Further, the Fund will make investments in resilience-focused small and medium enterprises (SMEs) and critical infrastructure projects through flexible debt and equity investments targeting six key sectors: renewable energy, clean transport, blue economy, sustainable agriculture, information and communications technology, and financial services.According to the release, the CARICOM Resilience Fund has been under design and development since January 2023, with support from United States Agency for International Development/Eastern and Southern Caribbean. This partnership is testimony to the commitment of both the CDF and the United States to creating a more “prosperous, resilient, and sustainable future” for the Caribbean region.
Barbados Prime Minister Mia Mottley who spoke at the opening ceremony of the launch event at the Hilton, commended the CDF for taking this bold step to launch the new resilience fund and looked forward to the support of the region and interested parties to invest in the fund. In his remarks, US Ambassador Roger Nyhus said: “The Resilience Fund symbolizes not just an allocation of resources, but a promise—a promise to invest in innovative solutions, technologies, and strategies that will fortify our societies against the changing climate patterns. It will contribute to preparing Caribbean countries to mitigate and adapt to adverse economic shocks, in particular those related to climate.”
And Chief Executive Officer of the CDF, Rodinald Soomer, highlighted that “the CARICOM Resilience Fund is an integrated and transformative vehicle that will offer investors attractive social and economic returns on investments geared toward building economic and climate resilience in the Caribbean. It crowds in resources from the private sector, International Financial Institutions, pension funds, corporates, philanthropic funds, and others, and is an innovation that helps to address the gap in readily accessible and affordable financing options for building resilience in the region.”
At the event, CDF announced that Sygnus Capital, a leading Caribbean investment firm, would be the fund manager for the Resilience Fund. The release noted that Sygnus Capital is an experienced fund manager with three funds currently active in the Caribbean and over US$450 million in assets under management. In addition, the Sygnus team brings a deep regional understanding that will drive project selection and investor engagement. Sygnus Capital will partner with Rocky Mountain Institute (RMI) Island Energy Program to source and evaluate energy and climate projects in the region.
President & CEO of Sygnus Capital, Berisford Grey, remarked, “Shaping a more resilient and sustainable future for the Caribbean through strategic investments in critical sectors is at the core of Sygnus’s mission. We are honoured to have been entrusted as the fund manager for the CARICOM Resilience Fund (CRF), a groundbreaking initiative that aligns seamlessly with our commitment to fostering regional development.”
