The Caribbean Development Bank (CDB) is set to roll out a new EUR 4 million Grant Facility, financed by the Agence Française de Développement (AFD), to help its Borrowing Member Countries (BMCs) implement climate-smart, gender-responsive, and agriculture-focused development initiatives.

This latest phase of CDB–AFD collaboration is designed to unlock targeted investments while addressing the technical and financial constraints that often hinder critical projects. It forms part of AFD’s broader Latin America and Caribbean Investment Facility and builds on the two institutions’ shared commitment to sustainable development in the region.

Structured over five years, the grant will support:
•    A regional gender research fund and gender mainstreaming activities
•    Investment grants focused on the agriculture sector
•    Development of a biodiversity finance tracking approach
•    Sectoral studies and capacity-building initiatives
•    Project coordination and oversight, including the placement of a dedicated Project Coordinator

“The past few years of collaboration with AFD have been nothing but harmonious and highly productive,” said CDB Vice President, Operations, Dr. Isaac Solomon. “We guarantee that this new facility will help countries significantly in advancing climate change adaptation and a low-carbon transition. From producing important gender-related research and sector studies to supporting agricultural investments and tracking biodiversity finance, this is the kind of solidarity that goes a long way in helping our Borrowing Member Countries.”

AFD Director for the Brazil-Southern Cone Region, Mr. Dominique Hautbergue, emphasised the urgency of the partnership. “The Caribbean region is highly exposed to climate change and faces increasing natural hazards like hurricanes and flooding. At the same time, deep-rooted gender inequality continues to restrict equal access to resources and opportunities. These challenges require united action to build a fairer and safer future,” he said.

“AFD is pleased to work with CDB to create a greener, more resilient region, to reduce social inequalities, arrest biodiversity decline, and improve climate resilience,” he added.

The Grant Facility complements a USD 50 million AFD-funded Credit Facility signed with CDB in August 2023. This financing line supports public sector projects with positive climate outcomes and mandatory gender mainstreaming, in line with CDB’s Gender Policy and Operational Strategy. The financing is currently supporting key regional infrastructure and education projects in Saint Vincent and the Grenadines, Grenada, and Saint Lucia.

These new arrangements also build on the successful implementation of the 2016 AFD-Caribbean Investment Facility Programme, which included a USD 33 million Credit Facility and a EUR 3 million Technical Assistance Grant. Completed initiatives under the earlier programme include USD 10 million streetlighting retrofits in Jamaica and Suriname, a USD 8.1 million sea defence project in Saint Vincent and the Grenadines, and a USD 5 million water security project in Saint Lucia.

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Photo Caption: Dr. Isaac Solomon, (right) Vice President, Operations at the Caribbean Development Bank, and Mr. Dominique Hautbergue, Director for the Brazil-Southern Cone Region, Agence Française de Développement (AFD), are pictured at the formal signing of the 
agreement for an AFD-financed EUR 4 Million Grant Facility for the Caribbean. This funding is now available to CDB’s Borrowing Member Countries for agriculture, climate action, and gender equality initiatives. The formal signing took place in June at CDB’s Annual Meeting in Brasilia, Brazil.

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