CAF approves first USD 100 million loan to reform energy sector in Bahamas

CAF, development bank of Latin America and the Caribbean, approved a US$100 million loan to support energy sector reform in the Bahamas. The operation, approved by CAF's Board of Directors during its meeting in Seville, Spain, marks the first sovereign financing to the country since it became a shareholder of the institution in November 2024.

The approved resources will support the Government of The Bahamas in the implementation of key elements of its National Energy Policy, including strengthening the regulatory framework, modernizing infrastructure, promoting renewable energy and improving energy efficiency. The operation is aligned with CAF's Green Agenda and will contribute to the country's efforts to mitigate climate change by transitioning to cleaner and more sustainable energy sources.

With this approval, the Bahamas will be able to improve the reliability of its electricity system, reduce generation costs and increase its resilience to climate shocks. The reforms also seek to attract new investments in energy infrastructure.

“The Bahamas is one of CAF's newest shareholder countries, and we are proud to approve our first sovereign operation in support of its national commitments to more sustainable energy,” said Sergio Diaz-Granados, CAF's executive president. "This approval reflects our commitment to be a reliable partner in the country's path towards sustainable and inclusive growth. We understand the unique challenges faced by small island states and stand ready to further deepen our collaboration with the Bahamas."

The program will also strengthen institutional capacities and lay the groundwork for long-term investments in the country's energy transition. With this operation, CAF reinforces its support to the Caribbean, advancing its mission to provide financial and technical solutions tailored to the needs of its member countries.