By: Dr Carla Barnett
July 12, 2024
I would like to congratulate the Caribbean Export Development Agency on staging this event, which again brings private businesses, government officials, regional and international institutions and other stakeholders together for important dialogue on how to promote and ensure investment in areas critical to our development. Thanks to the supporting partners without whom this event would not be taking place. Thanks and congratulations to Dr Damie Sinanan, the new Executive Director of CaribExport, to whom the CARICOM Secretariat extends full support as he carries out his mandate.
This investment forum is being staged at a critical time for the Caribbean Community. We have just experienced Hurricane Beryl, a record-breaking system that reached category five status, the earliest this has ever happened in the Atlantic Hurricane Season. Hurricane Beryl has devastated several islands in the Region and caused extensive damage to others. Assessments to date record several deaths in CARICOM Member States, destruction of infrastructure, and severe impact on sectors, notably fisheries and agriculture. Entire communities remain without essential infrastructure and services, including electricity, water and communications.
CARICOM is again at an inflection point, where scarce capital has to be diverted from economic development, to support recovery and rebuilding from the effects of extreme weather events fueled by the global warming that is at the core of climate change.
This forum’s focus on three critical matters – agriculture and food and nutrition security, green economy transition, and digitalization of business – will inform the ongoing narrative and action plans on how strategic investments can be directed towards development, sustainability and resilience. These are matters of great priority in CARICOM.
CARICOM’s Vision 25 by 2025 Initiative, led by Dr Irfaan Ali, President of Guyana, prioritizes private investment to reduce the Region’s food import bill through increased local production and enhanced intra-regional trade. The Region has been making progress as it implements this pivotal initiative. There have been noticeable advances in policy development and implementation; in attracting investment; and in de-risking the agricultural sector. Several Member States are producing new crops and functional partnerships have been established with the private sector, farmers and civil society.
Private sector investment in sustainable agriculture is now crucial to bolster advantages and address challenges, especially since Beryl has now caused significant setbacks. The objective is to channel investments into sustainable agricultural projects that modernize farming, introduce technological innovations, and improve market access for existing and for new agri-products. Importantly, we are prioritizing investments that are climate resilient. Those are investments which integrate improved farming techniques to address the Region’s vulnerability to hurricanes, floods, droughts and rising sea levels that cause salinization and loss of arable lands.
To date, our interventions in the Region’s food and nutrition security have been targeted and deliberate. With regard to de-risking, we are pleased that a regional agri-insurance product has been identified. Work is underway to find dedicated capital funds for investment opportunities in transportation and logistics, digitization, and research into best practices to develop the sector based on the available science.
With the support of the CARICOM Private Sector Organization (CPSO) we have pinpointed possible investment opportunities amounting to US$1.2 billion, covering six potential agri-food value chain opportunities. These are to produce cereals and staples; beverages; fresh, canned and salted fish; vegetables, fruits and nuts; poultry and other meats; and milk and cream. Active partnerships with the private sector and investments in these and other areas will generate new industries and support food and nutrition security for current and future generations.
With regard to the Green Economy Transition, we are aware that the Caribbean Region depends heavily on imported fuel, ageing power generating infrastructure, and vulnerable electrical grids. Given their status as a predominantly net importers of hydrocarbons, Member States are at risk of fluctuations in both prices and supply within the global energy commodity markets. These factors contribute to deficient energy security and increase the Region’s susceptibility to the impacts of climate change.
CARICOM has been focusing strategically on the transition to renewable energy in the quest for energy security. Over the past two decades, countries across the Region have increasingly embraced renewable energy sources such as hydro, solar, wind, and geothermal power to diversify their energy mix.
Increased results require dedicated partnerships, collaboration and knowledge-sharing among stakeholders which will identify capacity gaps and promote actions to build the green technology sub-sector. Investment opportunities include funding the bridges between conventional and sustainable technologies, and for accelerators and incubators to foster the development of green and clean technologies.
The CARICOM Region has a high percentage of jobs created by Micro Small and Medium Enterprises. It is estimated that 70% of jobs come from MSMEs, and it is a perennial struggle for many of these businesses to keep their doors open and remain competitive. Digital transformation is essential for increasing competitiveness and can change how companies operate and deliver value.
Businesses in the Region which are already digitized may lose some impetus in the aftermath of Hurricane Beryl, which significantly damaged communication services and power. There is therefore scope for resilient systems that can return to normalcy quickly after extreme weather events and other emergencies. There is also room for investment in technology adoption mechanisms, business information and capacity-building platforms, infrastructure development and innovation projects.
And whether it is agriculture and food and nutrition security; green economy transition; or digitalization of business, there is great scope for increasing the participation of women and youth in new investment projects.
The recent Fourth United Nations Conference on Small Island Developing States held in Antigua and Barbuda noted that the next 10 years are critical for SIDS. A new context is emerging, where the economic, social, environmental and geopolitical threats to the development of Small Island Developing States are so great that they can only meaningfully be managed by way of a reinvigorated enabling environment.
I therefore urge investors, private foundations, innovators, and other stakeholders to intentionally and strategically support the businesses of the Region, as they seek to meet current and future challenges and realities. The events of the past week, and the realization that this is only the beginning of an active Atlantic hurricane season, underscore the imperative of urgent and decisive action to effectively address our vulnerabilities.
Thank you very much, ladies and gentlemen.
(The author is the Secretary General of the CARICOM)
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