Bahamas becomes newest shareholder country of CAF

The Bahamas has become the newest shareholder country of CAF – Development Bank of Latin America and the Caribbean. On Wednesday 27 November 2024, The Bahamas finalised its status as a “Series C Shareholder,” facilitating enhanced access to agile, flexible and innovative financing to support sustainable and inclusive development initiatives. With The Bahamas’ membership finalised, CAF continues to expand its presence in the Caribbean region, which will translate into greater support for Caribbean Small Island Developing States (SIDS).

The milestone follows a successful exploratory mission conducted by CAF in September 2024, during which representatives held constructive discussions with Prime Minister Philip Davis, Minister of Foreign Affairs Frederick Mitchell, Financial Secretary Simon Wilson and senior officials across multiple ministries. The mission sought to align CAF’s financial and technical expertise with The Bahamas’ immediate and medium-term development priorities.

The Bahamas, like other SIDS,  faces disproportionate vulnerabilities to the effects of climate change, including intensifying hurricanes, rising sea levels, and economic shocks. As part of its commitment, CAF is working to mobilise new sources of financing to support the government’s mission to strengthen resilience, modernise infrastructure, and drive social and economic progress in The Bahamas. In October 2023, CAF was pleased to provide support for the government’s hosting of a regional meeting on Climate Financing in the Americas on the margins of the Fourth Ministerial Meeting on Sustainable Development organised by the Organization of American States (OAS).

According to CAF’s Executive President, Sergio Díaz-Granados, “As a development partner rooted in the region, we understand the unique challenges faced by Caribbean SIDS – the urgency of addressing the effects of climate change, the financing constraints faced by countries that are classified as High- and Middle-Income, and the need for increased investments in connectivity and resilient infrastructure, particularly in archipelagic states. We stand ready, as we have done with all our shareholder countries, to collaborate with the government and other stakeholders to build a sustainable and prosperous future for The Bahamas.”

This development builds on CAF’s strategic decision to deepen its engagement in the Caribbean. CAF took an important step two years ago to establish its Regional Office for the Caribbean, headquartered in Trinidad and Tobago, with the aim of consolidating its development assistance to the Caribbean, particularly in support of climate action, water, energy, and food security, sustainable tourism, modernisation of infrastructure and digital transformation, among other sectors. Shortly after, CAF integrated the Caribbean into its official trademark and logo, which is now the Development Bank of Latin America and the Caribbean.