The Caribbean Development Bank’s (CDB) flagship Special Development Fund (SDF) has garnered strong international and regional support, with partners stepping up their commitments for the renewal of the financing facility for an 11th Cycle (SDF 11), which will run from 2025 to 2028.

The Fund, which represents the Bank’s largest pool of concessional financing, plays a critical role in reducing poverty and advancing human development across CDB’s Borrowing Member Countries (BMCs). Contributors have approved a US$460 million programme for SDF 11, representing a significant increase over the US$383 million for the 10th Cycle, which concluded in December 2024. 

Canada, the top contributor, has reaffirmed its commitment with a pledge of CA $81.4 million (US$59.9 million). Regional support has also surged, with several BMCs increasing or maintaining their contributions for the new cycle. Among them are Jamaica and Trinidad and Tobago, which have pledged US$16.5 million and US$11.3 million, respectively, while the Bahamas and Guyana will each provide US$9.2 million. Other BMCs have also stepped up with enhanced pledges, reflecting a united front in advancing the region’s development agenda. Similarly, international and regional partners continue to play a vital role. China has pledged US$6.9 million, and Brazil announced a US$5 million allocation at the Brazil-CARICOM Summit held last month in Brasília. In the case of China and Guyana, pledges are subject to adjustment. 

Hailing the scale and significance of the pledges, CDB President, Mr. Daniel Best said, “At a time of global uncertainty and economic headwinds, the commitment of our partners speaks volumes. Many have increased their contributions over the last cycle, demonstrating real confidence in the region’s potential and in the results we can deliver together.” 

He added, “The Caribbean’s development needs are urgent. People across the region face food insecurity, outdated infrastructure, education gaps, escalating climate risks, and fragile energy systems every day. There is no time to waste. These funds will be deployed rapidly and effectively to help address these pressing challenges.”

SDF 11 will focus on building a more resilient and sustainable Caribbean. Key priorities include:

• Environmental Resilience with at least 35% of funding earmarked for climate action, including sustainable energy, adaptation and mitigation, disaster risk management, and post-disaster recovery.
• Institutional Resilience with emphasis on strengthening implementation capacity in BMCs to accelerate and improve project execution.
• Social Resilience to target interventions designed to enhance social protection, education and training, food security, water and sanitation, and citizen security. Also, the Basic Needs Trust Fund, CDB’s flagship poverty reduction initiative, will continue to receive support.
• Production Resilience is to be mainly achieved through promoting private sector development and investing in resilient infrastructure to boost economic competitiveness and sustainability.

SDF 11 will also provide targeted assistance to Haiti, aimed at maximising development impact and fostering long-term resilience.

Since its inception in 1984, the SDF has invested more than US$2.1 billion in Caribbean social development. Between 2013 and 2022, SDF-financed projects enhanced education for more than 343,000 students, trained over 11,000 agricultural stakeholders in modern production technologies, improved road networks benefiting nearly 932,000 people, and provided more than 94,000 households with access to safe water and sanitation services.

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Photo Caption: Senior Executives of the Caribbean Development Bank and Contributors to the Bank’s Special Development Fund share a celebratory moment to mark the start of the 11th Cycle of the financing facility (SDF 11). Contributors approved a US$460 million programme for SDF 11, which will run from 2025 to 2028. The Fund, which represents the Bank’s largest pool of concessional financing, plays a critical role in reducing poverty and advancing human development across CDB’s Borrowing Member Countries.