CARICOM partners with USAID to launch US$100 million Resilience Fund for Caribbean

The CARICOM Development Fund (CDF) partnered with the US AID to launch the CARICOM Resilience Fund in Barbados. The US$100 million fund will build climate resilience in the region.

The fund is receiving technical assistance from the United States Agency for International Development/Eastern and Southern Caribbean. It aims to support and enhance initiatives which allow nations in the Caribbean to progress while building mechanisms and infrastructure which is immune to the effects of climate change.

The fund is geared towards investments in six sectors, including renewable energy, clean transport, blue economy, sustainable agriculture, information and communication technology and financial services.

Based on these values, it will support and back small and medium enterprises (SMEs), which are focused particularly on resilience and tackling the effects of climate change in the region.

Prime Minister Mia Amor Mottley spoke at the opening ceremony of the initiative’s launch event, which was held at the Hilton Hotel in Barbados. She was highly appreciative of the efforts made by the CDF to launch a new resilience fund and welcomed the support of the region, as well as any parties interested in investing in this new fund.

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U.S. Ambassador Roger Nyhus gave his thoughts on this development, stating the following, “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.”

The Chief Executive Officer of the CDF, Rodinald Soomer, also gave his thoughts on the significance of the fund, “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.”

Sygnus Capital, a leading Caribbean investment firm, was announced as the entity which will manage the resilience fund. The United States Agency for International Development/Eastern and Southern Caribbean, along with regional partners and other relevant entities, has been formulating the basis for the CARICOM Resilience Fund since January 2023.

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It has also been highlighted that the efforts put into establishing this fund are a reminder of the commitment of the CDF and the United States towards ensuring that Eastern and Southern Caribbean nations have a prosperous, resilient and sustainable future to look forward to.

The overarching goal of the fund is to facilitate the use of resources, expertise, collaborative initiatives and programs to bolster the developmental landscape in the Caribbean and leave a lasting impact on the region, with positive reverberations that are felt for years to come.

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Sygnus Capital to Manage the Resilience Fund 

The selection of Sygnus Capital as the fund manager does not come as a surprise to ardent observers of the region, as the conglomerate is responsible for managing assets worth a rough total of US$450 million and is one of the most active entities of its kind in the Caribbean, where it already manages three important funds.

The appointment of Sygnus Capital is seen as a step which will ensure the selection of appropriate projects and improve investor engagement, which is down to the experience and understanding that the organisation has gained in the region.

Sygnus Capital will also be responsible for identifying and then evaluating energy and climate projects in the region, for which, it will partner with the Rocky Mountain Institute (RMI).

“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,".

Berisford Grey, President & CEO of Sygnus Capital.

The establishment of this initiative is being seen as yet another positive step taken by Caribbean nations, which have shown that they are far more aware of the threats posed by climate change.

This can be attributed to the fact that nations in the Caribbean have long been the ones which suffer the wrath of adverse weather conditions, brought about by climate change. This has left them with not just a sense of responsibility but also an inherent need to take steps against climate change and pursue policies and infrastructural development, with resilience and sustainability as their primary tenants.

In the process, nations in the Caribbean have become shining examples for the world to follow as they grapple with the ill effects of climate change. It is also a reminder for larger nations, which enjoy more leverage within the international fraternity, to exercise their abilities with the future of the world in mind.