9th September 2022

After months of planning, Barbados has delivered on its promise to host the first ever AfriCaribbean Trade and Investment Forum (ACTIF).

The forum, which ran from 1 to 4 September 2022 was put on by the Government of Barbados and the African ExportImport Bank (Afreximbank) in collaboration with the African Union Commission, the African Continental Free Trade Area (AfCFTA) Secretariat, the Africa Business Council, the CARICOM Secretariat and the Caribbean Export Development Agency.

It saw representatives from 41 African nations – many of whom arrived on the first ever direct Ethiopian Airlines flight from Lagos, Nigeria – and 16 Caribbean countries in attendance.

“This is an important and strategic gathering because the last time that Africans journeyed in such numbers across the Atlantic Ocean to the Caribbean was as unwilling immigrants. Today, on the other hand, we crossed these oceans as free and willing people seeking opportunities to promote trade and investment between each other,” said Afreximbank Chairman and CEO Ronald Sibongiseni Ntuli.

Topics discussed include accelerating industrialisation and manufacturing in Special Economic Zones and Industrial Parks; financing trade and investments; opportunities across the cultural and creative industries; leveraging the power of the African Continental Free Trade Area; improving logistics to promote tourism, trade and telecommunications; improving agricultural productivity, agribusiness and food security; healthcare and life sciences; accelerating private sector trade and investment; creating opportunities for youth and SMEs; and building Africa-Caribbean value chains.

At the opening ceremony, CARICOM Secretary General Carla Barnett noted that of the US$18.6bn in exports from Caricom countries in 2018, just US$815mn (less than 5%) was to markets in Africa, while just 2% of goods by value are imported from Africa. “We must reset these systems and foster real south-south cooperation,” she added.

Chairman of the Board of Directors of Afreximbank, Benedict Oramah announced that there has been meaningful progress in accelerating the membership of CARICOM nations in Afreximbank and that it would work with CARICOM governments to set up a Caribbean Exim Bank.

“Once these arrangements are concluded and visible, we will also open an office here in the Caribbean. And if we do agree, the Bank will work with governments of the CARICOM to set up a Caribbean Exim Bank as an Afreximbank subsidiary or affiliate,” said Oramah as he teased the idea of a US$700mn investment in the venture.

During the forum, Afreximbank signed a Partnership Agreement with an initial seven Caribbean States. The communiqué issued at the meeting’s conclusion said that the agreement will bring investments to concretise the commercial relations between the two regions, with an immediate focus on establishing an air bridge, and business to business matchmaking through the newly established African-Caribbean Business Council.

“We keep our promises. We didn’t travel all these thousands of kilometres to come and make a show. We came here for a purpose… You are going to see, in the next few months, actual things on the ground,” said Oramah, seemingly wary of similar fora in the past which have produced little in the way of tangible progress. “We will want to leave here with actionable proposals on how to open air and sea links between the Caribbean and Africa,” he urged.

On the margins of the forum, Barbados and Rwanda held talks about the possible establishment of a direct airlift service with RwandAir Limited to Barbados. Barbados’ Tourism and International Transport Minister, Lisa Cummins met with Manasseh Nshuti, Rwanda’s Minister of State in the Ministry of Foreign Affairs and International Cooperation in Charge of East African Community. The countries floated the
idea of signing a memorandum of understanding (MoU) to move discussions forward. Barbados Prime Minister Mia Mottley said that key goals had been achieved. She noted that irrespective of the issue, what mattered most was the attitude and approach to collaboration. Mottley praised the forum for allowing attendees the opportunity to see how they could work together to “unlock those very difficult issues that have only been made worse, regrettably by matters beyond our control”.

According to data from CARICOM, significant Caribbean exports to Africa include ammonia, aluminium oxide, oil drilling materials and various types of food, including sauces, condiments and frozen juice concentrate. Morocco, Ghana and South Africa are reportedly the main importers. In terms of imports, CARICOM primarily source goods from Nigeria, South Africa and Morocco, with the main categories including liquefied natural gas, vehicles, chemicals and bitumen.

This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.

Photo by Pascal Meier

Photo by Christian Lendl

22nd July 2022

CARICOM Heads of Government have identified limited progress on several key objectives during its recent 43rd Regular Meeting held in Suriname over the 3 to 5 July 2022.

The meeting, which coincided with the 49th anniversary of the signing of the founding Treaty of Chaguaramas, was expected to see meaningful updates on several ongoing initiatives, but only
managed to deliver a few objectively significant ‘wins’.

“This Caribbean Community that we all love has been seen and viewed as a place where we talk, and talk, and talk and then we talk some more,” said newly elected Grenadian Prime Minister in his inaugural address to the bloc. Dickon Mitchell called for matters of connectivity to be addressed in order the realise the benefits of the CARICOM Single Market and Economy.

However, by the end of the meeting, the issued communiqué “expressed disappointment at the slow pace of implementation of the CSME”. In an effort to move forward on the issue of movement of worker, the bloc agreed to needed definitions and qualifications for household domestics, an agricultural worker
and private security officer which are already agreed categories for free movement.

Another potentially meaningful win on the CSME surrounds the issue of the ease of doing business and the need to register in multiple jurisdictions.

To move to a system of mutual recognition, CARICOM Heads mandated the Secretariat “convene
meetings of the Registrars of Companies and the Ministers with responsibility for companies before the
end of July 2022 to elaborate the steps to enable Member States to implement the principle of mutual
recognition of any company incorporated in another CARICOM Member State and report to the
Conference in September”.

The bloc also noted progress on several online tools and solutions meant to address efficient delivery
of services across the region. The Labour Market Information System (LMIS), Online Companies Registry System (OCRS), the Community Public Procurement Notice Board (CPPNB), the CARICOM Rapid Alert
System for Exchange of Information on Dangerous (non-food) Goods (CARREX) and the CARICOM
Interactive Marketplace and Suspension Procedure (CIMSuPro) are among those which have advanced.
On this issue of food security, the meeting heard that most Member States had submitted to the
Ministerial Task Force on Food Production and Food Security (MTF), their national targets for import
reduction.

Leaders also mandated that the Council for Trade and Economic Development (COTED) complete
ongoing work to realise the removal of Non-Tariff Barriers to intra-regional trade by the end of July 2022
and requested that the CARICOM Private Sector Organization Inc. (CPSO) accelerate implementation of
agricultural investment projects which are being developed.

With regional transportation currently fraught with issues of supply and cost, CARICOM endorsed the
need to enhance the system to bolster food security and deepen regional integration. A working group
including representatives from the Governments of Barbados, Grenada, Guyana and Trinidad and
Tobago, the CARICOM Secretariat and the CPSO has been set up to push this agenda forward.
We can also file the announcement by Barbados Prime Minister Mia Mottley that advanced discussions
on establishing a traditional ferry and fast ferry service for passengers and cargo for the region have
taken place as an objectively meaningful win. Mottley noted that a formal proposal is forthcoming.
On air transportation, CARICOM leaders discussed ways to remedy the ongoing challenges of regional
carriers.

“A discussion has taken place…We are going to address the issue of a regional air carrier of some kind;
it may well be the revival of LIAT in some form or the other, but we have to get a consultant in aviation
to put together the framework,” said St Vincent and the Grenadines Prime Minister Ralph Gonsalves
after the meeting. He said that heads had agreed to meet before the end of July to potentially appoint
an aviation consultant and put mechanisms in place concerning the beleaguered regional airline, LIAT.
Meanwhile, the Government of Antigua and Barbuda, under whose control LIAT now rests, has said that
every country to which the airline flies will be asked to purchase shares so that the new version of the
airline is able to expand.

Given the state of global oil prices, energy security also featured prominently on the agenda. Leaders
agreed to push the US for the removal of sanctions on Venezuela to “allow for countries in the Region
to benefit from the PetroCaribe initiative and for progress on the exploitation of cross-border natural
gas fields between Trinidad and Tobago and Venezuela,” read the communiqué.
Prime Minister Gonsalves reportedly later said that the block had decided to resume the PetroCaribe
agreement which was originally started in 2005 to allow countries to purchase fuel under concessionary
arrangements—potentially another significant win. He noted that the US itself has had recent dialogue
with Venezuela on energy issues.

The meeting also received updates on border disputes between Belize and Guatemala and Guyana and
Belize, as well as the signing and ratification of several existing agreements by individual Member
States. Heads of Government also used to the occasion to sign a number of bilateral agreements for
enhanced cooperation, including Barbados which signed separate agreements with Guyana and
Suriname.

This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.

Photo by Priscilla Du Preez

8th July 2022

Long-serving Prime Minister of Grenada, Carriacou and Petite Martinique, Keith Mitchell has lost his bid for another term in office.

Keith Mitchell and his New National Party (NNP) were defeated by a margin of 9 to 6 seats by the National Democratic Congress (NDC) led by political newcomer Dickon Mitchell in the country’s general election held on 23 June 2022 with a 70% voter turnout.

NDC’s victory is historic given that Dickon Mitchell, a 44-year-old lawyer, was contesting his first election and only took over leadership of the party eight months ago. It is made more significant because none of the NDC candidates were Members of Parliament at the time of the election.

Several regional leaders have publicly congratulated the new Prime Minister on his victory.“We wish you, in your role as the next Prime Minister of Grenada, Carriacou and Petite Martinique, every success, recognising that there is tremendous potential in the youthful vigour and fresh thought you can bring to the management of the affairs of your country and the leadership of the region,” wrote Barbados Prime Minister Mia Mottley in a congratulatory letter.

In a Tweet, Vincentian Prime Minister Ralph Gonsalves congratulated the Prime Minister Elect, adding that he looks forward to working with the new government in advancing the regional agenda. “I look forward to working closely with you, Prime Minister-elect, in the interests of our countries and in the wider interests of the Caribbean Community (CARICOM),” said Antiguan Prime Minister, Gaston Browne.

During his swearing in as the country’s ninth Prime Minister, Dickon Mitchell pledged to end nepotism for which the previous government had been criticised.

“We need to run our country based on merit, hard work, the desire and willingness to overcome and to find solutions to the challenges that face us. We will not move forward or prosper as a people on the sole basis for job selection, promotion, for the award of contracts on party loyalty or personal loyalty,” warned Mitchell.

The new Prime Minister also vowed to reform the electoral process. “We believe we need to significantly strengthen our electoral process. It is in dire need of reform, it has to function to serve the people, it has to be service oriented, it has to be efficient and it as to be a system that encourages our citizens to vote rather than discourages them,” said Mitchell. 

Days later, the Prime Minister named an 11-member Cabinet which includes two women and is smaller than the 13 employed by the previous administration. The composition of the Cabinet is “meant to reflect our campaign promises to the people of Grenada to begin the transformation of Grenada,” said Mitchell.

Noteworthy appointments include the Prime Minister as Minister of Finance, National Security, Home Affairs and Public Administration, Information and Disaster Management; Joseph Andall – Minister of Foreign Affairs, Trade and Export Development; Lennox John Andrews – Minister of Economic Development, Agriculture, Planning, Blue Economy, Creative Economy, Tourism and ICT; Dennis Cornwall – Minister of Infrastructure and Physical Development, Civil Aviation and Transportation; and Kerryne Zennelle James – Minister of Climate Resilience, Environment and Renewable Energy.

During the ceremony, Prime Minister Mitchell announced that he would end the ongoing salary dispute by instructing the Ministry of Finance “to repay to the teachers of Petite Martinique, Carriacou, and Grenada the salaries that were docked unjustly from them and that those payments should be made as early as the end of July 2022”.

As Minister of National Security, Mitchell has reportedly sanctioned changes to the Royal Grenada Police Force (RGPF) including several reassignments in the high command. Many are speculating that these changes were influenced by the Prime Minister’s advisors on security which reportedly includes a former Commissioner of Police and retired senior police officers.

The new Prime Minister has also promised a review of those representing the country as diplomats around the world. Referring to several appointments of foreign nationals by the former administration, he said that those given the honour of serving the country in those capacities should be Grenadian and have Grenada’s best interest at heart. 

This is the NDC’s first time in office since winning the 2008 general election. The party went on to suffer back-to-back 15 to zero defeats at the polls in 2013 and 2018 at the hands of Keith Mitchell’s NNP who was seeking an unprecedented sixth term as Prime Minister in this election. The 75-year-old leader had previously announced that this would be his last political campaign as party leader.

This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.

Photo by Elena Mozhvilo

24th June 2022

Despite the tension leading about country snubs up to the Ninth Summit of the Americas hosted by the US in Los Angeles, progress has arguably been made on securing the region’s future.

“There’s a lot that I think we can and should do. This is a partnership.  My intention is to intensify the relationship with the Caribbean.  And I mean that sincerely.  You’re critically important to us in every way, and I hope we’re important to you,” said President Joe Biden at the summit.

There was some uncertainty about attendance, but ultimately the 14 independent CARICOM countries, excluding St Vincent and the Grenadines were presented at the summit. 

During their addresses, Caribbean leaders criticised the US for excluding Cuba, Venezuela, and Nicaragua from the event. 

“This summit belongs to all of the Americas. It is therefore inexcusable that all countries of the Americas are not here, and the power of the Summit is diminished by their absence, said CARICOM Chairman and Belize Prime Minister John Briceño, adding that it is “incomprehensible that we would isolate countries of the Americas which have provided strong leadership and to the hemisphere on the critical issues of our times”.

“It is my hope that there will be no future summits to which any Head of Government of our Americas will be omitted. Indeed, we regard the trade embargo against Cuba as harmful to the promotion of peace and prosperity in the Hemisphere. It should be ended,” said Antigua and Barbuda’s Prime Minister, Gaston Browne.

“Our Administration and partners will push back against the threats to our democracies by fortifying democratic institutions, investing in civil society, strengthening independent media, and following through on a regional digital transformation that is transparent and equitable,” said the White House in a statement.

Meanwhile, the Caribbean is set to benefit from multi-million-dollar aid packages from the Governments of the US and Canada. The United States Agency for International Development (USAID) Administrator, Samantha Power announced a US$331mn aid package for the Caribbean. 

Power said that the package of humanitarian and long-term development assistance is to help address food insecurity and improve the quality of life for people across the region. It includes US$198mn of emergency food assistance and related humanitarian programming such as nutrition, health, water, sanitation, and hygiene interventions. 

The USAID said that a portion of the US$95mn of FY 2021 Feed the Future allocated to smallholder farmers in Haiti “improve productivity of high-value horticulture crops, increase incomes, and bolster farmers’ capacity to withstand shocks like higher fertilizer prices and impacts of climate change”.

The Biden-Harris Administration also announced the US-Caribbean Partnership to Address the Climate Crisis 2030 (PACC 2030). Under the agreement, USAID will partner with the Caribbean to “facilitate climate adaptation and resilience, support the transition to renewable energy, and bolster energy security and resilience in the region”. 

The ongoing Caribbean Energy Initiative will also help analyse clean energy investment opportunities in the region and work with partners to improve utility performance and reduce policy, regulatory, and legal constraints to private investment in clean energy.

Canadian Prime Minister Justin Trudeau announced that his country would donate CAN$145mn (US$111.7mn) in aid to the region. This includes CAN$67.9mn (US$52.3mn) to promote gender equality, CAN$1.6mn (US$1.2mn) to promote digital access and address disinformation, CAN$17.3mn (US$13.3mn) for projects in support of democratic governance, CAN$26.9mn (US$20.7mn) to address irregular migration and forced displacement, and CAN$31.5mn (US$24.2mn) to support health and pandemic response.

Trudeau also said that CAN$0.2mn (US$0.15mn) will be implemented through the Pan American Health Organisation (PAHO) to assist the region with the issue of violence against women and girls in migrant groups, ethnic minority groups, and women and girls with disabilities.

In a recent newspaper column, Antigua’s Ambassador to the US reported that on the side-lines of the summit, President Biden agreed with the President of the Dominican Republic and CARICOM leaders to establish three joint committees, which would be “focused, and time-bound in order to urgently address challenges related to energy security, food security, and development/debt finance in the region”.

The US government has since written to CARICOM heads and the president of the Dominican Republic, announcing its proposed co-chairs of the Committees and its readiness to convene a meeting “to discuss next steps towards achieving concrete, near-term progress on the designated topics”.While this is only a start, Sanders urged Caribbean leaders to use these committees to seek debt reduction and rescheduling, as well as needed changes to the rules for access to concessionary financing from international financial institutions given the sway of the US in their funding and governance. It remains to be seen how much of these objectives will materialise.

This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.

Photo by Karsten Würth

10th June 2022

Trinidad and Tobago is predicting constrained natural gas production for the next five years before improvement in 2028.

Speaking at the Trinidad and Tobago Energy Conference and Trade show 2022 hosted by Energy Chamber of Trinidad and Tobago, Prime Minister Keith Rowley discussed the outlook for the oil and gas sector in the country. 

Rowley said that there is optimism about new production expected to come on stream in 2022 and 2023, which is projected to increase gas production levels to 3.2 trillion cubic feet by 2024. 

“Gas supply between 2024 and 2027 will be tight before improving in 2028 with the coming on stream of mega-projects, the Manatee and Calypso,” cautioned the Prime Minister.

He noted that his administration sees sustainability of the gas industry as being dependent on continued exploration and development of the country’s hydrocarbon resources as well as access to cross-border natural gas resources.

Despite efforts to increase investment and boost gas output, Rowley asserted that there is no conflict in investing in hydrocarbons and renewables as part of the country’s “pragmatic” approach to energy transition. 

“We have undertaken the dual responsibility to optimise our hydrocarbon resources for the benefit of our citizens as well as taking action to reduce our carbon footprint. In our estimation, there is no conflict between investing in renewables and in hydrocarbons as over time renewables can liberate oil and gas for export markets, and also create a diversified energy mix,” argued Prime Minister Rowley. Asserting that upstream stakeholders share his government’s view, Rowley said that there are commitments to “bring on stream at the earliest instance a number of gas projects both in the shallow marine area and the deep-water marine area. These include the Shell Manatee Field, and the Calypso project that is being developed by BHP and bpTT”. In recent times, the Government has also signed unitisation agreements with the governments of Venezuela, Barbados and Grenada for the exploration of hydrocarbon resources in their shared maritime boundaries.

Referring to the many countries which have pledged to reduce carbon emissions by the year 2050, Rowley said that “this commitment has been interpreted in some quarters as a commitment to immediately eliminate all fossil fuels”.  

“We do not share this view. Energy security is a priority for Trinidad and Tobago. Accordingly, we have set in train steps to optimise the exploitation of our oil and gas resources while mitigating the emission of greenhouse gases and adopting low carbon solutions,” he added.

In terms of commitments to climate change, the Prime Minister said that the country is moving forward with several initiatives including electrification of the transportation system, adaptation of renewable energy projects, carbon capture, utilisation and storage, carbon offsets, and exploration of hydrogen energy development, which is seen as crucial to the energy transition strategy.

“To this end, State-owned National Gas Company and its wholly owned subsidiary National Energy in collaboration with Kenesjay Green Ltd are actively collaborating on the creation of a sustainable hydrogen economy for the energy sector of Trinidad and Tobago,” announced Rowley.

Notwithstanding these developments, Rowley highlighted the continued importance of oil and gas moving forward by speaking to tax revenue and overall competitiveness. 

He noted that the Ministry of Energy and Energy Industries is currently conducting a review of the country’s oil and gas taxation regime to ensure that remains internationally competitive. The review includes capital allowances, petroleum profits tax, supplemental petroleum tax and royalty among other areas.

This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.

Photo by Aleks Marinkovic

13th May 2022

The British Virgin Islands (BVI) is reeling from the fallout of Premier Andrew Fahie’s arrest and calls for British direct rule. Fahie was arrested at a Miami airport along with the Managing Director of the territory’s Ports Authority, Oleanvine Maynard, and her son Kadeem Maynard on charges of money laundering and conspiring to import cocaine into the US.

The arrests came after a six-month sting operation conducted by the US Drug Enforcement Administration (DEA). According to court documents filed by the agency, the trio agreed to help smuggle cocaine potentially worth up to US$1bn through the islands’ ports in exchange for a 12%
cut.

They allegedly met several times with a DEA informant posing as a Mexican cartel member. Fahie and Oleanvine Maynard were arrested in Miami where they were to collect an advance payment on the drug deal.
After his arrest, Fahie’s attorney filed a motion for his release claiming that he had diplomatic immunity
as the BVI’s political head.

However, the US Attorney’s Office, Southern District of Florida said that the US would not recognise his
claim since the US Government does not recognise the BVI as a sovereign state. The court has since
ruled that Fahie can be released on a US$0.5mn bond pending trial on condition that he surrender his
travel documents and be subject to electronic monitoring.

As news of his arrest broke, Deputy Premier Natalio Wheatley took over as acting Premier and later
announced that he had replaced Fahie as Chair of the Virgin Islands Party. Wheatley has publicly
denounced the alleged actions of Premier Fahie while reminding the public that he was entitled to due
process before the law.

“The arrest yesterday of the Premier of the British Virgin Islands on charges related to drug trafficking
and money laundering is extremely concerning and underlines the need for urgent action,” said UK
Foreign Secretary Liz Trus in a statement.
“Surely following the arrest of its Premier, the [UK Foreign Office] should now take direct control of the
British Virgin Islands pending a further investigation into corruption and money laundering?” tweeted
Chris Bryant, an opposition Labour member of the British parliament.

Fahie’s arrest has apparently led Governor John Rankin to release the report of the Commission of
Inquiry (COI) a month earlier than expected. In it, there are reports of widespread abuses, including
millions of dollars of government funds that were spent annually without proper process.

The COI, which was led by UK Judge Gary Hickinbottom, recommended that the territory should have
its constitution suspended, its elected government dissolved and effectively be ruled from London.

Following the release of the report, BVI residents protested the COI’s recommendation for UK direct
rule outside Government House and demanded a public meeting with the UK Overseas Territories
Minister, Amanda Milling who has since made an emergency visit to the territory.

On her return from the three-day trip, Milling said that a decision on whether to impose direct rule on
the BVI was still to be made but stressed that its government must address endemic corruption.

“We recognise that given the practical realities of the current Premier’s situation, it is incumbent that
steps be taken to have a new Premier substantively appointed to this critical constitutional post,” said
Wheatley in a televised address, adding that he was ready to assume the role.

As efforts continue to secure the resignation of Premier Fahie, the current BVI government led by
Deputy Premier Natalio Wheatley has rejected calls for direct rule and has proposed an alternative
interim national unity government including members from all parties committed to addressing the
issues raised in the report.

Two members of the existing government would reportedly not be offered ministerial posts, and the
new government would remain in place for 10 to 12 months with fresh elections likely to take place in
early 2023. Speaker of the BVI House of Assembly, Julian Willock as reported resigned on the request of
Wheatley. “He advised me that the majority of members agreed that I should resign,” said Willock.

Meanwhile, the 11-member Organisation of Eastern Caribbean States (OECS), of which the BVI is an
associate member, has said that “abolition of Parliament with direct rule from London represents a
retrograde step in the evolution of the democratic process that is inconsistent with the United Nations
Proclamation of Human Rights to be free of colonial rule”.

The bloc called on the British Government to work with and support the elected Parliament in the
process of addressing the issues raised in the COI report.

This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.

Photo by Jeffrey Blum

29 April 2022

Caribbean leaders have once again appealed directly to the US congress and banks on the issues of blacklisting, de-risking and corresponding banking in the region. 

The appeals come as Barbados hosted several US and Caribbean politicians along with regional and international representatives of financial institutions for the Caribbean Financial Access Roundtable.  

The annual forum, which was proposed by US Congresswoman Maxine Waters, Chairwoman of the US House Committee on Financial Services, was developed to discuss matters pertaining to financial services and access for Caribbean countries. 

During the discussion, Caribbean leaders criticised the marginalisation of Caribbean states through restrictive international blacklists and policies.  

Barbados Prime Minister Mia Mottley argued that the international anti-money laundering (AML) regime is disproportionately punitive for small developing countries given the small risk they represent compared to large, developed nations.  

Chair of the CARICOM Commission on the Economy, Avinash Persaud called for urgent reform on the way countries are blacklisted.  

“We currently spend more per cent of GDP on AML processes than any of the countries which are the centres of money laundering,” said Persaud as he argued that Caribbean countries were spending excessive amounts of money in an effort not to be blacklisted, which was further halting economic growth. 

The issue of de-risking and associated challenges with correspondent banking relationships was also a focal point of discussions. 

“The loss of correspondent banking and the increase of the unbanked is a security challenge to the Caribbean, and I’m happy that we’re discussing this, and we have arrived at a position where we will have this annual roundtable to deal with the challenges; it will be an opportunity for us to share ideas and cooperate as we move forward,” said Guyanese Prime Minister Mark Phillips. He said that Guyana is particularly interested in increasing correspondent banking as the country leverages the oil and gas industry to become an international financial centre.  

Nigel Baptiste, President and CEO of the Trinidad-headquartered, Republic Financial Holdings Limited (RFHL) which operates in several CARICOM countries, noted that even where financial institutions have not lost access to correspondent banks, they have had to self-regulate. 

Baptiste said that in so doing, RFHL and other banks must restrict access to many individuals, most of whom tend to fall into the marginalised communities in our society. “This is unfortunate but necessary because financial institutions in the Caribbean are presented with no choice. We either de-risk our clients or be de-risked ourselves,” he said. 

Grenadian Prime Minister Keith Mitchell pushed for more action from the US on the financial issues plaguing the region. “We claim to have close borders and strong relationships, but I don’t see the evidence of that coming from policymakers in Washington. The Caribbean is literally taken for granted,” said Mitchell as he urged Congresswoman Maxine Waters, “to make strong representation back in Washington” after the meeting. 

Acknowledging that many Caribbean nations have enacted significant financial crimes compliance measures, Congresswoman Waters said that they continue to face considerable challenges in accessing financial services. She said that despite years of engaging with financial institutions, US agencies, multilateral development institutions and leaders from affected countries, it remains the inclination of banks to terminate or restrict business relationships with certain clients or countries to avoid, rather than manage, risk. 

As discussions closed, host Prime Minister Mia Mottley said that several key decisions were reached. Speaking at the press conference, she said that the US Congressional Delegation has agreed that this issue merits congressional hearings to allow the region to expose the issues to a wider audience.  

Officials also agreed to incorporate access to correspondent banking relationships into aid and development relationships and to develop a proposal to establish a financial examiner training academy in the US. 

It was decided to undertake a feasibility study on whether CARICOM should not establish a consortium bank in the US that could provide the correspondent banking relationships for banks in the region.  Leaders also undertook to mount (with the aid of the Caribbean Development Bank) an annual Caribbean-US Banking Forum. October is earmarked for the first instalment.  

“This matter is too critical to us being able to survive and to grow our economies and to provide opportunities for our citizens. We cannot have financial exclusion,” said Mottley as the session ended. 

The US Congressional Delegation was led by the Congresswoman Maxine Waters, and included Chair of the Congressional Black Caucus, Congresswoman Joyce Beatty; Congressman Ed Perlmutter; Congresswoman Stacey Plaskett; Congresswoman Sylvia Garcia, and Congressman Troy Carter.  

This is a lead article from Caribbean Insight, The Caribbean Council’s flagship fortnightly publication. From The Bahamas to French Guiana, each edition consists of country-by-country analysis of the leading news stories of consequence, distilling business and political developments across the Caribbean into a single must-read publication. Please follow the links on the right-hand side of this page to subscribe, or access a free trial.

14th April 2022

Photo by Maria Lupan 

US oil giant ExxonMobil has secured government and regulatory approval to develop Yellowtail field offshore Guyana. 

The announcement means that the Yellowtail Project becomes Exxon’s fourth and largest oil and gas field, adding to the Liza One, Two and Payara fields. 

Exxon, which operated through affiliate Esso Exploration and Production Guyana Limited (EEPGL), announced that the estimated US$10bn investment decision was aimed at producing 250,000 barrels per day from 2025. 

According to reports, Yellowtail production from the One Guyana floating production storage and offloading (FPSO) vessel will develop an estimated resource of more than 900mn barrels of oil. The project will include six drill centres and up to 26 production and 25 injection wells for a total of up to 67 development wells. 

“Yellowtail’s development further demonstrates the successful partnership between ExxonMobil and Guyana and helps provide the world with another reliable source of energy to meet future demands and ensure a secure energy transition,” the company said in a statement. 

Exxon added that since 2015 it has had nearly two dozen successful oil wells which so far allows the company to access more than 10bn barrels of oil in the Guyana Basin. 

INews Guyana reported that more than 3,500 Guyanese workers are supporting ExxonMobil’s activities in Guyana, an increase of more than 50% since 2019. ExxonMobil and direct contractors have spent more than US$600mn with more than 880 local suppliers since 2015. 

“We are working to maximize benefits for the people of Guyana and increase global supplies through safe and responsible development on an accelerated schedule,” said Liam Mallon, President of ExxonMobil Upstream Company. 

The approvals come as debate continues about the adequacy of insurance and environmental protections that the company have in place in the event of an adverse event such as a spillage.

In announcing its environmental authorisation for Yellowtail, Guyana’s Environmental Protection Agency (EPA) explained that among the notable conditions, the permit requires the operator to procure a capping stack to be maintained, tested, and stored in Guyana. The EPA explained that a capping stack is a large well closure device that connects to the top of the blowout preventer (BOP) and is capable of sealing off a well. 

In addition, the EPA revealed that the authorisation also requires EEPGL to maintain access to at least one overseas subscription service, to allow mobilisation of a capping stack to the project location. The EPA said that this will fortify safety and emergency response efforts since wells would be swiftly capped in the event of a well blow-out. 

The Private Sector Commission (PSC) has thrown its support behind the approval, saying that it is satisfied that the environmental authorisation requires the ExxonMobil-led consortium to have emergency equipment in Guyana to respond to a blow-out event. 

“The Commission appreciates the fact that the Financial Assurance provision holds EEPGL liable for all costs associated with clean up, restoration and compensation for any pollution damage which may occur as consequence of the Yellowtail Development Project,” the PSC said in a statement. 

The PSC is also happy that flaring has been formally incorporated into the Yellowtail permit. However, the private sector body urged EEPGL to have spare equipment on standby should there be a malfunction, to avoid gaseous pollution. 

“We would also like to see an effective Contingency Plan put in place to address any mechanical failure that may occur in the future that will limit flaring to the approved limits as specified in the permit,” the PSC said. 

ExxonMobil affiliate Esso Exploration and Production Guyana Limited operates the project and holds 45% interest in the Stabroek Block. Hess Guyana Exploration Ltd. holds 30% interest and CNOOC Petroleum Guyana Limited holds 25% interest. 

ExxonMobil said that it is already preparing to apply for approval for a fifth oil field and could be ready to submit final documents by the last quarter of 2022.

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