The Caribbean Development Bank (CDB) has approved a US$5 million loan to support climate-smart agriculture and enterprise business development in Grenada.
The project will assist the Government of Grenada in its efforts to increase productivity and the contribution of the agricultural sector to economic growth, rural poverty reduction and environmental sustainability. The International Fund for Agricultural Development will provide additional financing.
Male and female farmers and entrepreneurs in some of Grenada’s poorest rural communities will receive technical assistance and financial support, as well as increased opportunities to own and operate businesses and take advantage of employment opportunities in the sector. The project will also promote farmer adoption of new technologies and practices to build resilience to climate change impacts.
“Climate change has exacerbated Grenada’s vulnerability to economic downturns, particularly within the rural/agricultural sector. The passage of Hurricanes Ivan and Emily, as well as the recession, have threatened food security and resulted in high dependency on food imports,” said Daniel Best, Director, Projects, CDB.
“Interventions like this project will stimulate job creation, youth empowerment and promote agricultural practices and technologies that make the sector more resilient to the impacts of a changing climate. CDB is pleased to be playing a role in addressing persistent issues of poverty, unemployment and underemployment in Grenada’s rural areas,” he said.
The project aligns with the Government of Grenada’s ongoing work to protect the sector by implementing climate and disaster-smart agricultural and sustainable land management strategies to support long-term stability. Under the project, there will be skills training and job placement for programme beneficiaries and training in climate-smart practices and technologies. Infrastructure, including roads and drainage systems, will be expanded and rehabilitated.
Over the past 3 years, Grenada has been the fastest growing Caribbean economy. While the tourism sector is the leading foreign-exchange earner, statistics from the International Trade Centre list agriculture as responsible for almost half of the country’s total exports. The sector also contributes 13% to total employment and is vital to the economic well-being of those living in rural areas.
The programme will be implemented over a 6-year period and will assist the Government of Grenada with meeting its development goals, particularly achieving food security and reducing poverty.
Caribbean Development Bank