Investing in Economic Sustainability and Competitiveness
SDF 11 will strengthen the Region’s ability to produce, compete, and grow, even in the face of external shocks and shifting global dynamics. This pillar focuses on ensuring that productive sectors, including infrastructure, agriculture, and private enterprise, are equipped to drive inclusive, resilient development. Specifically, SDF 11 will:
- Support resilient infrastructure development, particularly in the water and transportation sectors, with targeted investments in roads, seaports, and airports to improve mobility, safety, and trade logistics.
- Scale up agricultural and food security interventions, including investments in climate-smart value chains, public and private infrastructure, and enabling policy environments.
- Promote private sector development, including financing and technical support for micro, small, and medium-sized enterprises (MSMEs), development of new financial instruments, and capacity-building for business support organisations.
- Enhance economic inclusion and competitiveness, with a strong focus on digitalisation, innovation, and improved access to capital, particularly for underserved groups such as women and youth.
- Leverage blended finance solutions to attract private investment and extend the reach of concessional resources, unlocking greater development impact.
CDB will work with regional and international partners to crowd in co-financing and ensure that SDF-funded projects deliver long-term productivity gains and economic diversification.
Addressing Structural Gaps that Undermine Growth
Despite signs of post-pandemic recovery, many Caribbean economies remain vulnerable and underperforming. Outside of a few outliers, growth remains modest, constrained by outdated infrastructure, limited fiscal space, and weak private sector dynamism. MSMEs, which are the backbone of most economies in the Region, struggle with inadequate access to finance, low productivity, and regulatory hurdles. In agriculture, chronic underinvestment and fragmented value chains have led to stagnation, poor competitiveness, and deepening food insecurity.
Regional production systems are also increasingly exposed to climate risks and supply chain shocks, from hurricanes and droughts to global commodity volatility. The COVID-19 pandemic and the war in Ukraine underscored the fragility of the Region’s food and logistics systems and the urgent need for investment in self-sufficiency.
SDF 11 responds to these interlocking challenges with a coherent programme of investment, policy support, and private sector engagement. By addressing long-standing bottlenecks and mobilising partnerships, the Fund will help Borrowing Member Countries build more competitive, shock-resistant economies that generate decent jobs, reduce dependence on imports, and create new pathways to inclusive prosperity.