CAF Strategic Lines of Action in the Caribbean

The Caribbean was one of the regions most affected by the pandemic. The collapse in tourism represented a 9.5% drop in its economic activity in 2020 in a region where this sector represents between 50% and 90% of GDP and employment. The region’s commodity exporters (T&T, Suriname and Guyana) recorded a slight contraction of just 0.2%. Moreover, the pandemic has had a negative impact on external and fiscal accounts, widening structural imbalances.

The region faces significant challenges such as vulnerability to the impacts of climate change, including intensifying and more frequent disasters; limited fiscal space and high indebtedness in part as a result of the increased costs of servicing post pandemic and post disaster recovery and limited access to concessionary financing. 

CAF is keen to support Caribbean governments to stimulate economic activity and employment, particularly following  the COVID-19 pandemic. 

This is why CAF put in place specific programs to help address the health crisis and economic slowdown caused by the pandemic and is actively seeking to partner, not only with Governments but with local financial institutions -development and commercial banks - to promote strategic economic sectors. With a strong focus on SMEs, CAF is poised  to offer lines of credit, guarantees and equity investments. CAF also places at the disposal of Caribbean Governments  a robust package of technical assistance, including a pre-investment facility, non reimbursable resources and assistance for local capacity building.

The Regional Hub in Trinidad and Tobago will house CAF technical teams for climate change, energy efficiency, disaster prevention and mitigation and financial services. 

Additionally, CAF’s expertise will contribute to harnessing the potential of new financial instruments and fintech initiatives that are flourishing in the Caribbean.