by Kevon Browne
St. Kitts and Nevis (WINN): The Caribbean Community and Africa Export-Import Bank (Agreement for the Establishment of a Partnership) Bill, 2023 will establish an international partnership and prescribe the guiding framework of engagement between “the African Export-Import Bank and the “Member States of the Caribbean Community St. Kitts and Nevis included.
Through the partnership with the bank, participating countries within CARICOM could benefit from US$1.5 billion in investments into the region’s economy through grants, loans, business development, etc.
Specifically in St. Kitts and Nevis, when an envoy from the bank came to the Federation in the latter part of 2022, discussions on investment included renewable energy possibilities for the Federation.
“This has the potential to unlock finances and new areas of development that are so needed here in our Federation. We need energy. We are at the point right now where we are being stretched, and we are stretched with respect to one – the capacity to produce energy; even though we have bought new generators; even though we have fixed one of the generators – we are still stretched, Madam Speaker. In addition to that, we are seeking to establish a Sustainable Island State, and one of the principles is renewable. And one of the MOUs that we have already signed with the Afrexim Bank is for the establishment of a possible solar farm.”
The agreement facilitates trade and opens new opportunities for the development and economic growth of St. Kitts and Nevis. Prime Minister and mover of the Bill, Hon. Dr Terrance Drew, explained the purpose and function of the Bill.
“1. To ensure the attainment of the purpose for this Agreement as stated below, Participating States and the Bank agree;
To cooperate with, support and provide assistance of all types and nature to enable the promotion and financing of South-South trade between African countries and Member States of the Caribbean Community;
To promote, to the extent permissible under the Establishment Agreement, the financing by the Bank of exports and imports of non-traditional African goods and services and goods and services of Member States of the Caribbean Community in any appropriate form, through extending direct or indirect credit to eligible businesses in participating States.
2. To collaborate, support and promote the work of the Bank in acting as an intermediary between African exporters and importers and exporters and importers
of Member States of the Caribbean Community through the issuance of letters of credit, guarantee and other trade documents in support of export-import transactions;
to support the promotion and provision of insurance and guarantee services covering commercial and non-commercial risks associated with African exports and exports of Member States of the Caribbean Community;
to provide support to payment arrangements aimed at expanding the international trade of African States and Member States of the Caribbean Community;
to facilitate the carrying out of market research and the provision of any auxiliary services aimed at expanding the international trade of African countries and Member States of the Caribbean Community and to promote and provide insurance and guarantee services covering commercial and non-commercial risks associated with African exports and exports of Member States of the Caribbean Community;
to facilitate and support the carrying on of banking operations and the borrowing of funds; and
to facilitate and support the performance of such acts and do such things as shall be required, desirable, incidental or conducive to the attainment of the foregoing purpose and functions.”
In support of the Bill, the Junior Youth Minister, Senator Isalean Philip, expressed that opportunities for youth on the continent with the establishment of this partnership through exchange in education, work experience, small business and the creative economy could flourish.
“The social impact and the influence of this relationship – we may not be able to imagine it right now, but it will be quite beneficial and positive for us as a people, especially as we work on shaping our cultural and social identities and particularly for the young people. You know, I think about that all the time since youth empowerment is part of my mandate. We cannot forget that we are a people who were enslaved; our ancestors were enslaved, and we’re immigrants to this indigenous land as persons of African descent. And so, establishing ties and partnerships with the Afrexim Bank and investors who are shareholders in the bank or investors who are part of the Afrexim Bank Network also allows us to make friends and make new friends with persons who are from the continent. Who knows, potentially, we may be able to check out our line history and find out, you know, the people we came from.”
Dr Drew said that several discussions are in advanced stages with officials from Afreximbank regarding projects for St. Kitts and Nevis.
The Caribbean Community and Africa Export-Import Bank (Agreement for the Establishment of a Partnership) Bill, 2023, was passed without much opposition.
Parliamentary Representative for St. Christopher Seven, Hon. Dr Timothy Harris, did wish for clarification on the areas of focus the government is seeking to explore regarding investment possibilities that the Government should consider.
Two other CARICOM countries, Barbados and St. Lucia, have already passed legislation to ratify the Afreximbank Partnership Agreement.
See the Bill here: https://www.sknis.gov.kn/2023/02/18/caribbean-community-and-africa-export-import-bank-agreement-for-the-establishment-of-a-partnership-bill-2023/.
