BASSETERRE, St. Kitts, CMC – St. Kitts-Nevis has joined two other Caribbean Community (CARICOM) countries in approving legislation to establish an international partnership and prescribe the guiding engagement framework between the African Export-Import Bank and CARICOM member states.
The twin island Federation joins Barbados and St. Lucia in passing the legislation to ratify the Afreximbank Partnership Agreement that Prime Minister Dr. Terrence Drew said: “has the potential to unlock finances and new areas of development that are so needed here in our Federation.”
As a result of the partnership agreement, participating CARICOM countries could benefit from US$1.5 billion in investments into the region’s economy through grants, loans, and business development, among other sectors.
“We need energy. We are at the point right now where we are being stretched, and we are tested concerning 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, “Prime Minister Drew told legislators on Tuesday.
“Madam Speaker. In addition, we seek to establish a sustainable island state, and one of the principles is renewable. And he added that one of the MOUs (memorandum of understanding) that we have already signed with Afreximbank is for establishing a possible solar farm,” he added.
In his contribution, former prime minister Dr. Timothy Harris sought clarification on the areas of focus the government aims to explore regarding investment possibilities that the government should consider.
But Prime Minister Drew, who tabled the legislation, told Parliament that the agreement facilitates trade and opens new opportunities for St. Kitts and Nevis’s development and economic growth.
He explained that the purpose and function of the Bill are to ensure the attainment of the goal for the agreement with participating states and the Bank agreeing to cooperate with, support, and provide assistance of all types and natures to enable the promotion and financing of South-South trade between African countries and CARICOM member states.
He said it is also intended to promote, to the extent permissible under the Establishment Agreement, the financing by the Afrexim Bank of exports and imports of non-traditional African goods and services and goods and services of CARICOM countries in any appropriate form, through extending direct or indirect credit to eligible businesses in participating states.
Prime Minister Drew said the legislation would also allow the countries 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 CARICOM states through the issuance of letters of credit, guarantee, and other trade documents in support of export-import transactions.
He said it would also 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.”
Prime Minister Drew said discussions are in the advanced stages with officials from Afreximbank regarding projects for St. Kitts and Nevis.
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