The Caribbean Development Bank (CDB) and IDB Invest have joined forces in a renewed strategic partnership designed to accelerate private sector development and enhance trade finance access across the Caribbean. The announcement signals a major step toward strengthening the role of small and medium-sized enterprises (SMEs) in driving regional economic growth.
This new collaboration places private sector-led development at the heart of the two institutions’ shared vision, focusing on expanding financing opportunities, improving access to capital, and facilitating broader participation in both regional and global markets.
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Expanding Trade Finance Through Innovation
A cornerstone of this enhanced partnership is the launch of CDB’s Trade Finance Guarantee Program. As part of its pilot phase, the CDB will enter into a Risk Participation Agreement (RPA) with IDB Invest. These agreements allow both parties to share the risk of lending and credit obligations, enabling greater reach and impact for trade finance efforts throughout the region.
Limited access to timely trade financing has long been a challenge for Caribbean businesses—particularly SMEs—hindering their ability to scale and compete internationally. Through this new program, the institutions aim to reduce financing gaps and unlock new channels of economic activity.
Supporting Private Sector-Led Growth
Beyond trade finance, the CDB and IDB Invest are preparing to engage in joint origination and co-financing of private sector projects across the Caribbean. This approach is expected to expand institutional capacity, support dynamic entrepreneurship, and strengthen economic resilience across member states.
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Lisa Harding, CDB’s Division Chief for the Private Sector, emphasized the long-term significance of the initiative:
“This partnership and the Trade Finance Guarantee Programme will enhance access to trade investment across the Bank’s member countries, crowd in private sector resources, foster economic growth, and deepen regional integration.”
As the Caribbean continues to recover and reposition its economies post-pandemic, strategic financing tools like these are increasingly essential for unlocking the region’s full economic potential.
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