11TH European Development Fund Implementation Report 2017- 2023

Implementation of the

Regional Private Sector Development Programme (RPSDP) 11th European Development Fund (EDF) Final Report: January 2017 – September 2023

www.carib-export.com

OUR VISION To be the leading Agency that drives Caribbean economic transformation through private sector development. OUR MISSION To provide innovative, targeted initiatives designed to enhance Caribbean business growth, sustainability and job creation.

BUILDING BUSINESSES, TRANSFORMING LIVES FOR A RESILIENT CARIBBEAN

CONTENTS

01. Caribbean Export Development Agency at a Glance

5

B) SO2: Strengthen BSO Capacity to Provide Greater Support to The Private Sector i. Trade and Business Intelligence (TBI), and Research Capacity Strengthened ii. Strengthened IPAS’ Capacity to Increase FDI Flows iii.Strengthen Regional and International Networks iv.Increased Understanding and Utilization of The EPA and Other Market Opening Agreements C) SO3: Enhanced Dialogue at Country Level i. Strengthening of The CARIFORUM-EU Business Forum As A Business-To-Business Platform Aimed At Increasing and Solidifying Access By Caribbean Firms to The EU Market ii. Increased Focus On Key Strategic Sectors, Clusters and Value Chains

35

02. Context of the Action

6

36

03. Overview

6

04. Expected Results

7

38

05. Assumptions and Risks

8

06. Introduction/Executive Summary

9

42

07. Results of the Action

10

46

a) SO1: Build Private Sector Capacity at the Firm Level to

10

Increase Export Competitiveness i. Increased Innovation and Use of Green Energy Alternatives ii. Increased Access to Sustainable Financing Mechanisms and Financial Inclusion iii. Capacity At The Firm Level Strengthened iv. Increased Use of ICT to Foster Productivity v. Increased In-Market Presence Leveraging Brand Caribbean In Export Promotion vi. Export Promotion

11

49

14

49

18

21

26

52

28

08. Visibility and

62

Communications a) Website development: Carib-export.com b) Content and Campaign Development i. Road to Success ii. Export and Grow Public Awareness Campaign iii. I’m An Exporter: How I use the EPA iv. Press Releases v. Publications

62

63

63 63

63

64 64

09. Challenges and Lessons Learnt

65

10. Costs/Financial Reporting

69

11. Annexes I. Summary of Receipts II. Grant Beneficiaries and Contracts Awarded III. Activities Implemented Under 11th EDF RPSDP

72 72 72

73

Caribbean Export Development Agency

at a Glance

With offices in

Haiti

Barbados

Dominican Republic

We have a proven track record of performance with an annual implementation rate of one of the highest across institutions in the Region. 93% over

Caribbean Export is the regional trade and investment promotion agency focused on building a resilient Caribbean by providing cutting-edge and high-impact support to the private sector. Working closely with businesses to increase exports and attract investment, we contribute towards the creation of jobs, transformation of our economies and achievement of the Sustainable Development Goals (SDGs). We use our resources to implement a range of innovative, focused and practical initiatives designed to support the expansion of Caribbean businesses nationally, regionally and internationally into high value markets whilst taking advantage of preferential market access. We assist businesses that have export potential or are already exporting to increase their capacity and competitiveness, boost export earnings and generate jobs. As we seek to build businesses and transform lives that create a resilient Caribbean, we are committed to providing services in areas that will generate the greatest economic transformation, alleviate poverty and create prosperity for our people through providing decent work and economic growth. These areas include e-commerce; digitalization; and green economy transition. In addition, recognizing that trade in services is the next export frontier for Caribbean business, we provide support to non-tourism related service providers to build entrepreneurship to support the transition to a smarter and greener Caribbean. The Caribbean Export Strategic Plan 2021-2024 sets out a transformational agenda for the Region and seeks to contribute to the realization of the Sustainable Development Goals. Built upon the three pillars of export, investment and cross-cutting services, we aim to strengthen the means of implementation by working with global partnerships for sustainable development.

Understanding that innovation, adaptability, competitiveness and access to financing is needed by firms to build a resilient competitive private sector, that creates high value jobs, we have built our strategic approach to private sector development on Three Key Pillars: Export Investment Services

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

5

Context of the Action

The five-year review of the CARIFORUM-EU Economic Partnership Agreement (EPA) after signing in 2008, revealed that (sic.) “the conversion of market access offered by the EPA into meaningful market presence remains a major challenge for the CARIFORUM private sector.” The CARIFORUM private sector, which accounts for 90% of employment and 70% of the gross domestic product (GDP), comprises of two major constituents: Micro, Small and Medium-Sized Enterprises (MSMEs) and Business Support Organisations (BSOs). MSMEs primarily operate within the productive sectors, with the service sector being the largest employer¹, followed by manufacturing, agriculture and the creative industries. However, these MSMEs often have little to no internationalisation capabilities and primarily specialise in low-tech activities. As a result, sales and employment growth within many of these firms trail their peers in other small economies². According to a study on the regional private sector undertaken by the Economic Intelligence Unit released in 2015, the primary challenges faced by the Caribbean private sector are access to finance, soaring energy cost, strained public finances, deficiency in human capital and lack of innovation capacity. At the macro level, the private sector continues to face enormous regulatory and bureaucratic barriers in relation to government institutions. It has been noted that Caribbean countries are not particularly easy places in which to do business. Furthermore, a change in the Venezuela Petro Caribe Programme will present loss of revenue for the region. With one of the highest debts to GDP ratios in the world, the role of the private sector as an engine for economic growth is paramount. In recognition of these challenges, Caribbean Export sought to design interventions at the macro, meso and micro levels to address some of the more intransigent obstacles. As such, the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP) on market penetration; supply chain and intelligence frameworks; increased access to finance; promotion of green energy and energy efficiency as key factors in lowering costs; business to business forums and more targeted diagnostic tools to enhance firm capacity. The Programme also sought to facilitate public-private dialogue to strengthen the private sector’s ability to influence policy formulation at the national and regional levels, leading to a more conducive business environment for sustained economic growth. Overview The Caribbean Export Development Agency (Caribbean Export/CE) commenced implementing the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP) in January 2017. The European Union (EU) committed €24, 525 million to the programme to build on the achievements of the 10th EDF and continue the utilisation of the CARIFORUM-EU Economic Partnership Agreement (EPA). In 2020, a further €3 million was committed by the European Union to facilitate direct financial support to firms to mitigate the impact of the COVID-19 pandemic. The overall objective of the programme was to increase employment creation, inclusiveness - particularly for youth, women, and indigenous groups, and reduce overall poverty in CARIFORUM States. Through targeted interventions that provide a new and innovative framework for growth and development, the Agency sought to achieve three specific objectives in support of the overall goal: 1. Build private sector capacity at the firm level to increase export competitiveness. 2. Strengthen Business Support Organisation (BSO) capacity to provide greater support to the private sector; and 3 . Strengthen regional mechanisms aimed at promoting effective Public-Private Dialogue (PPD) to develop a more effective business enabling environment.

¹ Clusters in the Caribbean - Understanding Characteristics, Defining Policies for their Development: Compete Caribbean ² Private Sector Development in the Caribbean: A Regional Overview: Compete Caribbean

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

6

Expected Results

The expected results under the three (3) specific objectives are outlined below: Specific Objective 1: Expected Results Build private sector capacity at the firm level to increase export competitiveness.

Increased innovation, use of green energy alternatives and resource efficiency aimed at significantly reducing the cost of production

Increased access to sustainable financing mechanisms and financial inclusion

Capacity at firm level strengthened

Increased in-market presence by leveraging Brand Caribbean in Export Promotion

Increased use of ICT to foster productivity

Specific Objective 2: Strengthen Business Support Organisation (BSO) capacity to provide greater support to the private sector. Expected Results

Trade and Business Intelligence (TBI), and research capacity strengthened

Strengthened IPAs’ capacity to increase FDI flows

Strengthen regional and international networks

Increased understanding and utilization of the EPA and other market opening Agreements

Facilitating access to specific funds earmarked for BSO capacity building at the national level

Component 3: Strengthen regional mechanisms aimed at promoting effective Public-Private Dialogue (PPD) to develop a more effective business enabling environment. Expected Results

Strengthen

and

support

Strengthening of the CARIFORUM-EU Business Forum as a business-to-business platform aimed at increasing and solidifying access by Caribbean firms to the EU market

action-oriented Public-Private and Private-Private Dialogue mechanisms

Provide support for the operationalization of the CBC given the absence of a coherent regional private sector representative body

Increase focus on key strategic sectors, clusters and value chains

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

7

Assumptions and Risks

Assumptions

While the requisite groundwork was undertaken to justify the demand for and relevancy of the work programme, the following assumptions were made: • There is a continued commitment by member states to the implementation of the EPA as a framework to promote private sector development. • Member states remain committed to pursuing reform of regulations and procedures to create a more conducive business enabling environment for private sector growth. • Regional integration remains a priority given changes within the Caribbean political landscape. Risks Likewise, the following considerations were made to the possible risks: • Natural disasters can have a significant impact on the ability of factors to implement programme activities successfully. • International markets can be disrupted by major economic, social, and political crises and instability. • Exchange rate volatility can affect implementation. • New and existing trade rules can discourage most Caribbean MSMEs’ trade and investment. Regional integration policies and main barriers to the flow of goods, services, capital and labour can be impacted by the wider political context.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

8

Executive Summary

Considering the five-year review of the CARIFORUM-EU Economic Partnership Agreement (EPA), revealing persistent challenges in translating market access into substantive market presence for the Caribbean private sector, the need for targeted interventions became increasingly apparent. This sector, comprising predominantly Micro, Small, and Medium-Sized Enterprises (MSMEs) and Business Support Organizations (BSOs), serves as a linchpin of the regional economy, accounting for a substantial portion of employment and gross domestic product (GDP). However, its ability to engage meaningfully in global trade remains constrained by various factors, including limited internationalization capabilities, a preponderance of low-tech activities, and formidable regulatory and bureaucratic barriers. In response to these multifaceted challenges, the Caribbean Export Development Agency (Caribbean Export) embarked upon the implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP) in January 2017. This initiative, bolstered by a substantial commitment of €24.525 million from the European Union (EU), aimed to build upon the achievements of its predecessor, the 10th EDF, while harnessing the potential of the CARIFORUM-EU EPA to stimulate economic growth and development across the region. Furthermore, in recognition of the unprecedented disruptions wrought by the COVID-19 pandemic, an additional €3 million was earmarked by the EU in 2020 to provide direct financial assistance to firms grappling with the adverse effects of the crisis. The overarching objective of the programme was to foster employment creation, inclusiveness, and poverty alleviation within CARIFORUM States through a targeted array of interventions. These interventions, spanning macro, meso, and micro levels, encompass private sector capacity building, BSO capacity strengthening, and the facilitation of robust Public-Private Dialogue (PPD) mechanisms to engender a more conducive business environment conducive to sustained economic growth. Noteworthy achievements of the programme include a commendable 93% project implementation rate, underpinned by some 150 meticulously curated programme interventions that have positively impacted more than 12,000 individuals and facilitated the implementation of five ‘Calls for Proposals’ awarding over €7.3million in grant funding to 288 beneficiary companies³. Additionally, the programme has yielded tangible outcomes such as the facilitation of cross-border trade between Haiti and the Dominican Republic, the creation of over 1300 new job opportunities, access to at least 20 new export markets, and the generation of an estimated US$2.4 million annual export revenue stream for beneficiary businesses. A survey conducted among a sample of programme beneficiaries underscores the transformative effects of programme interventions, with a majority attesting to their efficacy in advancing export development goals. The salient impacts reported encompass heightened operational efficiency and productivity (59.88%), enhanced knowledge on exporting intricacies (46.71%), establishment of new export contacts (34.13%), improved understanding of intellectual property rights (30.54%), compliance with stringent market entry prerequisites (25.15%), preservation or augmentation of staffing levels (23.95%), and successful penetration of hitherto untapped export markets (41.05%). The 11th EDF RPSDP has emerged as a pivotal instrument in fortifying the Caribbean private sector's resilience and competitiveness on the global stage. Through its multifaceted interventions, the programme has engendered a paradigm shift in the region's economic landscape, affording tangible benefits to businesses and stakeholders alike, and positioning the Caribbean on a trajectory of sustained growth and prosperity.

³ https://carib-export.com/exporters/funding/dags/grant-awardees/

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

9

Results of the Action

a) SO1: Build Private Sector Capacity at the Firm Level to Increase Export Competitiveness

Table 1: Strategic Objective 1 Logical Framework

Intervention Logic

Verifiable Indicators

Targets

Results

Source of Verification

•

Number of firms benefitting from programmes aimed at supporting green practices and innovation Number of firms benefitting from capacity building programmes in ICT Number of firms participating in the training programmes targeting access to finance confirming an increased understanding of how to access to finance Number of firms benefitting from access to finance programmes Number of firms participating in training on trade penetration and export Number of firms recording a decrease in production costs resulting from export support programmes Number of targeted firms which improved their efficiency and productivity following the introduction of technology

162

419

CE Progress Reports and Participants Lists CE Progress Reports and Participants Lists CE Progress Reports and Participants Lists

Improved export competitiveness of CARIFORUM private sector

150

438

•

•

500

1409

•

300

328

CE Progress Reports

•

10

726

CE Progress Reports and Participants Lists Grant Impact Assessment Reports Grant Impact Assessment Reports

•

30

33

•

40

72

Component 1 of the 11th European Development Fund Regional Private Sector Development Programme (EDF RPSDP) has effectively included a diverse array of interventions aimed at bolstering the capacity of firms and enhancing the export competitiveness of the CARIFORUM private sector. Under this component, a series of initiatives primarily focused on facilitating the transition to the green economy, fostering digital adoption, and extending financial support to export-ready and exporting CARIFORUM firms were implemented.

Attracting substantial participation,

A total of

120 workshops

engaging 9,639

Between the years 2017-2023

and webinars

tailored specifically for CARIFORUM businesses were organized and delivered.

individuals keen on advancing their export capabilities and market reach.

4 Final Report Resources

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

10

In addition to capacity-building endeavors, four distinct grant programmes were administered during the RPSDP:

Direct Assistance Grant Scheme (DAGS) 2018 & 2019

Direct Support Grant Programme (DSGP)

Technical Assistance Programme (TAP)

Dominican Republic Grant Scheme (DRGS)

Across these initiatives,

Amounting to the value of €7,371,252.23 million

a commendable total of 288 grants were awarded to businesses

Such financial support has been instrumental in facilitating business growth and expansion initiatives across the CARIFORUM region.

i. Increased Innovation and Use of Green Energy Alternatives Private sector firms are constantly challenged with high production costs, and low productivity levels, along with weak linkages to the green economy. This complex set of challenges had gotten in the way of the support delivered under the 10th EDF RPSDP. In response to this reality, the Agency designed and developed tailored programme initiatives to directly address these complex problem areas at the firm level. These initiatives were implemented during the life cycle of the 11th EDF RPSDP. The programme assisted firms in becoming more energy-efficient by implementing a range of interventions, so that they are better positioned to capitalise on the green energy economy and to be more globally competitive. Through these concerted efforts, substantial strides were made in fostering a conducive environment for private sector development and export promotion within the CARIFORUM region. By equipping businesses with the necessary tools, resources, and financial assistance, the programme has played a pivotal role in enhancing the region's economic resilience and competitiveness in the global marketplace and the achievement of the results outlined in the Table 1. Furthermore, Caribbean Export continued its commitment to bolstering firms' competitiveness through the implementation of export development and promotion initiatives. Notably, the programme facilitated the participation of 218 businesses in 19 distinct regional and international trade events. These events served as crucial platforms for CARIFORUM firms to showcase their products and services, forge valuable partnerships, and explore new market opportunities on a global scale.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

11

(1) Energy Management for SMEs Recognizing the need to build firm capacity in this area, a new module was developed under the Agency’s proprietary ProNET 5 (Productivity Network) course focused on Energy Management. The main objective of the training was to equip SMEs with the relevant skills and tools to effectively manage their energy efficiency. SMEs were exposed to a wide range of subject areas including Solutions-Energy Saving Opportunities, Energy Management Standards and Outsourcing the Energy Management Function. A key component of the training included the utilisation of the Caribbean Export’s proprietary Energy Self-Assessment Audit (ESAA) tool enabling participants to assess their energy challenges; response and benefit; data collection on properties; data entry and processing; energy management standards; energy conservation technologies; energy efficiency technologies; renewable energy technologies; and monitoring and practical use of the ESAA tool. The course was further augmented with the introduction of the ISO50001 standard training.

Over the programming period, 205 people

participated in the training from 10 CARIFORUM countries.

of participants who provided feedback confirmed that the programme met their expectations. 100% thought that the clarity of the training objectives was excellent and another 15% thought it was good. At least 69% of participants

Although only 23% stated that the training was directly related to their field of work; 85% left having a better understanding of energy management.

5 https://carib-export.com/exporters/training/export-training/

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

12

2) Energy Grants The CARIFORUM private sector has an appetite for investment in renewable energy (RE), especially solar photovoltaics (PV). From 2010 to 2019, solar PV capacity in CARIFORUM increased by a factor of 63, climbing from just 6.9MW to 442MW. More directly, Caribbean Export has observed, through its implementation of the DAGS under the 11th EDF RPSDP that between 2017 and 2023 approximately 28 of all grants to the CARIFORUM private sector were for sustainable energy projects. The nature of these proposals ranged from engineering, procurement, and construction (EPC) to research and development (R&D), renewable energy solutions, recycling and waste management amongst others. (3) Climate Smart Agriculture – Dominica In 2017, the RPSDP embarked on a Climate Smart Agriculture project for the Kalinago community in Dominica. It was in direct response to the catastrophic damage the country endured from Hurricane Maria in 2017. The aim of the project was to support the development of a strategic plan for the design and implementation of a ‘model farm,’ using climate smart technologies and processes to reduce the vulnerability of agriculture in the Kalinago Territory. This intervention was requested by the Ministry of Kalinago Affairs and the Kalinago community in Dominica in 2017. Several recommendations were made in the report. (4) CARIFORUM Renewable Energy Industry Mapping Study The CARIFORUM Renewable Energy Industry Mapping Study6 was developed to map the renewable energy industry ecosystem in CARIFORUM to identify policies, regulations, technologies, actors, and networks within the sector. In mapping the energy sector, the Agency was better guided to identify opportunities and understand and address the challenges to better assist firms. The Agency also collaborated with CCREEE (Caribbean Centre for Renewable Energy & Energy Efficiency) via an MOU.

6 https://carib-export.com/publications/the-renewable-energy-industry-in-cariforum-countries

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

13

ii.Increased Access to Sustainable Financing Mechanisms and Financial Inclusion The programme supported the private sector by providing exporting and export-ready firms with financial assistance. Within the framework of the 11th EDF RPSDP, this was achieved through technical assistance activities, facilitating new financing mechanisms, including non-traditional means of financing, and cooperation with various financial institutions. (1) Grant Proposal Writing and Sensitisation Workshops Grant Proposal Writing and Sensitisation Workshops were conducted with the overarching aim of enhancing access to finance in the region, particularly for CARIFORUM firms. The primary objective was to bolster firms' export competitiveness and facilitate growth in exports, leveraging mechanisms such as the EPA and other trade agreements. The workshops had a specific focus on educating stakeholders, particularly assigned country advisors, about the grant application procedures. Nineteen country advisors from non-Organisation of the Eastern Caribbean States (OECS) and sixteen from OECS countries underwent training on various aspects, including the application process, deadline adherence, application completion steps, and preparation of reimbursement claims compliant with the Agency's DAGs guidelines.

Feedback from participants indicated a high level of satisfaction, with

Moreover, at least

With an additional

of firms confirming that the workshop met their expectations. 73%

that the knowledge gained from the training would facilitate their companies in applying for the DAGS. 82% of respondents expressed confidence

stating that it exceeded their expectations. 20%

(2) Providing Financial Assistance to Businesses During the implementation period, four grant programmes were executed: the Direct Assistance Grant Scheme (DAGS 2018 & 2019), the Direct Support Grant Programme (DSGP), the Technical Assistance Programme (TAP), and the Dominican Republic Grant Scheme (DRGS). These programmes aimed to provide financial assistance and support to CARIFORUM firms seeking to expand their operations and enhance their competitiveness in regional and international markets.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

14

Table 2: Sum of Amount Awarded by Country per Grant Programme in Euros

Grant Programme

Antigua & Barbuda Bahamas Barbados Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica Saint Lucia St. Kitts and Nevis St. Vincent and the Grenadines Suriname Trinidad and Tobago Grand Total Country

CE-CDB TAP

DAGS

DRGS

DSGP

Grand Total

€ 343,036.22 € 175,350.02 € 817,139.21 € 289,544.54 € 280,320.65 € 494,598.71 € 384,977.22 € 535,679.90 € 387,958.61 € 1,574,672.70 € 511,027.95 € 179,626.34 € 402,572.73 € 243,773.35 € 1,328,492.37 € 7,948,770.52

€ 14,231.63 € 42,600.02 € 170,774.87 € 42,694.90 € 33,207.15 € 24,575.19 € 42,694.90 € 28,273.51 € 127,973.68 € 55,627.00 € 28,463.27 € 23,339.88 € 42,348.60 € 165,119.81 € 841,924.41*

€ 192,804.59

€ 136,000.00 € 132,750.00 € 410,588.73 € 68,099.00 € 99,641.00 € 115,583.75 € 237,457.72 € 172,985.00 € 190,587.66 € 535,467.42 € 182,246.95 € 86,163.07 € 163,964.85 € 86,731.00 € 622,884.25 € 3,241,150.40

€ 235,775.61 € 178,750.64 € 147,472.50 € 285,653.96 € 122,944.31 € 320,000.00 € 169,097.44 € 169,097.44 € 273,154.00 € 65,000.00 € 215,268.00 € 114,693.75 € 540,488.31 € 3,772,334.7Œ

€ 93,361.00

€ 93,361.00

(3) Direct Assistance Grant Scheme (DAGS) The Direct Assistance Grant Scheme (DAGS) served as the programme’s primary tool for providing financial support to established businesses with export potential, aiming to fuel their growth and development. In a business environment where regional SMEs face limited access to commercial banks and financial institutions, the Agency remained dedicated to aiding them through this funding avenue. The DAGS programme benefited SMEs in the region by enabling them to access new markets and expand exports, reduce production costs, diversify supply sources, enhance productivity through training, secure intellectual property rights, minimize environmental impact, leverage trade agreements like the EPA and CSME, foster intra regional cooperation, and undertake projects that uplift underdeveloped areas and marginalized demographics. Through these avenues, the DAGS programme aims to empower SMEs and drive economic progress within the Caribbean region.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

15

2 ‘Calls for Proposals’ were conducted under the DAGS in 2018 and 2019 respectively.

2nd call 2019

A total of 1st call 2018 177 applications for DAGS funding were received in response to its 1st call for proposals under the 11th EDF

A total of 104 applications were received in response to its 2nd call for propodals under the 11th EDF grants 55 however, 39 firms successfully completed their DAGS projects and were reimbursed. The awardees represented all CARIFORUM States, except for The Bahamas. The total value of the grants awarded was €1,579,187.15 were awarded

grants 53

were awarded

The awardees represented all CARIFORUM States, except The Bahamas. The total value of the grants awarded was €2,193,147.56

(4) Direct Support Grants Programme (DSGP) The Direct Support Grants Programme (DSGP) was developed in 2020 in response to the immediate need for firms to retool and mitigate the impact of COVID-19 as businesses worked towards their recovery. The Agency announced its call for proposals in September 2020 utilizing €915,000.00 provided by the European Union under the 11th EDF Regional Private Sector Programme (RPSDP). Unlike previous grant programmes, the DSGP was a non-reimbursable grant valued between €5,000 - €15, 000 whereby 100% of the grant was provided to awardees to implement approved projects. Four hundred and thirty-five (435) applications were received from 15 CARIFORUM States. A total of 63 grants were awarded. (5) Technical Assistance Programme (TAP) and Dominican Republic Grant Scheme (DRGS) The Technical Assistance Programme (TAP) and the Dominican Republic Grant Scheme (DRGS) were developed in 2021 in collaboration with the Caribbean Development Bank (CDB) to further support businesses to pivot, up-skill and survive. The programmes aimed to achieve multiple objectives, including providing direct assistance to the region's private sector, especially SMEs, to address COVID-19-related challenges without repayment obligations, supporting activities to sustain business operations during disruptions, facilitating the expansion of exports within the Caribbean or international markets, and capitalizing on the benefits of agreements like the CARIFORUM-European Union Economic Partnership Agreement (EPA), CARICOM Single Market Economy (CSME), and other bilateral or multilateral arrangements between regional countries and ACP or EU partners.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

16

The TAP awarded 59 grants of which 19 were funded via the 11th EDF valued at €265,406.12. Due the Dominican Republic not being a CDB borrowing member country the DRGS funded by the 11th EDF awarded 10 companies grants valued at €93,361.

(6) Impact Assessment An evaluation of beneficiaries under the DAGS and DSGP programmes highlighted significant positive outcomes. Across beneficiary firms, 307 new jobs have been created, fostering economic growth. These firms have expanded their market reach to 23 export markets, yielding an estimated export value of US$2.1 million, spanning regions such as the Caribbean, Europe, and North America. Notably, 77% of firms have improved productive capacity and efficiency, with 62% enhancing their facilities. A substantial portion (57%) undertook equipment and machinery upgrades, resulting in cost savings and operational streamlining. Renewable energy projects and manufacturing process optimizations have driven these enhancements, fostering sustainability and resource efficiency. These initiatives have effectively reduced operational costs, allowing firms to redirect resources towards operational improvements. Consequently, productivity levels and production capacity have increased, leading to enhanced revenue streams. Notably, 42% of companies have experienced significant production increases, largely due to successful machinery and equipment upgrades. These investments position firms for sustained competitiveness and growth in the global market.

“We have been able to hire additional staff and provide resources to them to increase our business efficiency. This was made possible by the grant we received from Caribbean Export.” “Tijule has been able to maintain the level of employment of females especially from the marginalized communities near to the company's location; and also increase purchase of production inputs from rural male and female farmers. The inventory management system helps us to better control the flow of supplies coming in and product sales.” – Jamaica

– Jamaica

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

17

iii. Capacity at the Firm Level Strengthened During the period, a range of capacity building programmes improved the export competitiveness of CARIFORUM firms. Caribbean Export hosted workshops in-person and virtually including: ProNET, a modular business management training programme for SMEs that uses an Experiential Learning Methodology; Market Intelligence, Services Go-Global, Export Competitiveness Accelerator, Business of Music (BOM), Talking Exports Webinar Series, Energy Management and Auditing, ISO 50001 Energy Management, ISO20700 Management Training and workshops on access to finance. Specialised training was also provided to firms in trade penetration via the Launch to Market Programme, Export Accelerator Programme and the Export Marketing module of ProNET.

(1) ProNET ProNET is a modular programme with 10 modules including: Business Strategy, Quality Management, Production Management, Resources Management, Product Development, Information and Knowledge Management, HR Management, Cost and Financial Management, Export Marketing and Energy Management (see Annex IV). ProNET aims to raise the level of productivity and profitability in MSMEs, allowing owners and managers to operate their businesses more efficiently and effectively ultimately supporting firms to become export ready and positioned to take advantage of the opportunities available under the CARIFORUM-EU Economic Partnership Agreement (EPA). A total of 560 people participated in ProNET courses from 12 CARIFORUM countries. They participated in Export Marketing, Human Resources Management, Business Strategy, Production Management, Information Management, Product Development and Cost and Financial Management. Of this total, 205 people participated in ProNET’s Energy Management and the ISO 50001 Energy Management training courses.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

18

Chart 1: ProNET Participation by Country 2017-2023

ProNET Participation By Country

TRINIDAD AND TOBAGO SURINAME ST. VINCENT AND THE GRENADINES SAINT LUCIA ST. KITTS AND NEVIS JAMAICA HAITI GUYANA GRENADA DOMINICAN REPUBLIC DOMINICA BELIZE BARBADOS BAHAMAS ANTIGUA AND BARBUDA

64

13 12

27

35

71

49

20

57

65

53

13

Participants

(2) Market and Competitive Intelligence Training The training programme on Market Intelligence aims to increase the use of high-quality market intelligence by SMEs to support their entry, supply and operation in various export target markets. The specific objectives of the training were to provide regional firms with a basic understanding of Market Intelligence including information on assessing export readiness, selecting ideal target markets, market entry requirements, and developing an export strategy; to identify the traditional data sources for market information and provide demonstrations on the use of these platforms; to build the capacity of regional firms to procure market information for use in their trade and business activities to ensure sustainability; and to provide firms with the basic understanding of how to leverage digital channels to connect with current and prospective customers through Digital Marketing. Over the period 527 people participated in the Market Intelligence training from all CARIFORUM countries. Feedback from participants (67%) indicated that they were now able to effectively develop market entry strategies having participated in the workshop.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

19

(3) Services Go Global The Services Go Global (SGG) programme was developed to optimize the CARIFORUM region’s export of services by building the capacity of service providers to capitalize on opportunities under the Economic Partnership Agreement (EPA), CARICOM Single Market (CSM) and other existing 3rd party Trade Agreements; and to establish a cadre of certified Trainers for the SGG platform geared to assist SMEs in the services sector. Export-readiness was the ultimate objective, as participants were guided through a 4-stage Roadmap, which covers 4 key areas: Stage 1 - Preparing Your Business, Stage 2 - Conducting Market Research, Stage 3 – Developing a Marketing Strategy and Stage 4 - Entering the Market (see Annex V). A total of 137 service providers participated in the SGG training from 7 CARIFORUM countries. In the evaluation 78% of participants stated that the programme equipped them to increase their exports. Further, 44% of the participants cited the market research and market strategy modules were the most relevant for their operations; while 56% of persons saw other elements like the value proposition, networking and building relationships as most relevant. (4) Export Competitiveness Accelerator The services sector plays a critical role in many Caribbean countries. Improving the export competitiveness of the region's service providers is key to the successful growth and development of Caribbean economies. This project aimed to prioritize and improve the export competitiveness of Caribbean services providers both regionally and internationally. The specific objectives of the project encompassed enhancing the export competitiveness of CARIFORUM Services providers within major sectors in the region, identification of at least three new export markets for these providers, promoting and augmenting service exports from the CARIFORUM region, fostering development and growth in the Service Sector, boosting the sale of services originating from the CARIFORUM region, and fostering partnerships among CARIFORUM services providers to facilitate collaboration and synergy for collective advancement. The programme took participants through a 4-stage process that included: 1. Diagnosis of international competition capacities 2. Identification of new export markets 3. Development of contact lists of potential buyers in new markets 4. Business to business meetings with interested buyers.

A total of 40 companies participated in the programme from 10 CARIFORUM countries

(Bahamas, Barbados, Belize, Dominican Republic, Grenada, Guyana, Jamaica, Saint Lucia, Suriname and Trinidad and Tobago) that offered services including audiovisual, software development, business services, among others.

+

A total of 547 business leads were generated for companies and 57 business to business meetings were conducted.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

20

Data obtained from the sample beneficiary survey in the area of capacity building interventions shows that overall, the Agency’s initiatives have helped small businesses to increase efficiency, productivity, sales, and access to new markets and even helped to maintain staff. This data is reflected in the chart below.

Impact of Capacity Building Interventions under the 11th EDF RPSDP

12%

24%

Increased efficiency and productivity

Increased sales in existing and new export markets

9%

Increased knowledge on exporting; incl knowledge and understanding of trade agreements

Helped to maintain or increase number of staff

13%

Establishment of new export business contacts

13%

Have assisted firm in meeting the market entry requirements and other product/service standards for the EU and other international markets

Improved understanding of intellectual property rights

10%

19%

iv. Increased Use of ICT to Foster Productivity

(1) E-commerce in the Caribbean A feasibility study was commissioned for the development of an e-commerce platform to support MSME’s in the Caribbean. It was expected that an e-commerce platform would provide MSMEs with a distribution channel supporting the increased productivity and expansion through the increased presence in the global market. The study which was conducted in 2018 found that whilst e-commerce would benefit MSME’s there was a low level of e-commerce awareness in the community and general readiness of businesses. In view of this the Agency focussed efforts on building capacity of firms. With the onset of the pandemic, the programme prioritised e-commerce to support the increase of exports for CARIFORUM firms. Caribbean Export facilitated a consultancy to develop e-commerce advisory services which would provide a suite of information on e-commerce that can be accessible to Caribbean firms and BSOs.

+

+

Training was facilitated for 55 business people and 41 BSO representatives

A further two hundred and ninety (290) firms were introduced to e-commerce website development.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

21

Further, an online e-commerce data repository was established on the CEIntelligence portal7 ; it provides information on e-commerce stakeholders in the region, support institutions and an e-commerce readiness checklist which enables firms to conduct self-assessments.

(2) Talking Exports – Webinars Caribbean Export hosted four e-commerce focused webinars during the pandemic. The webinars aimed to increase awareness of e-commerce, particularly during the height of the pandemic when over 50% of Caribbean firms transitioned to online platforms due to store closures.

Focused on global best practices in e-commerce. 01 WEBINAR

operational readiness, budgeting, and success stories. 02 WEBINAR

Addressed developing a viable e-commerce strategy, covering topics such as marketing, objectives, target markets, product readiness,

Delved into e-commerce solutions like white labels, self-hosting, and marketplaces, including website designs, selling on platforms like Amazon and eBay, secure payment platforms, government

regulations, and policy support. 03 WEBINAR

hubs. 04 WEBINAR

Explored shipping and distribution challenges, including solutions for tracking, distribution hubs, and strategically located logistics

In addition to e-commerce, the Talking Exports webinars also covered the use of ICT in areas such as 2058 A total of

people participated in these webinars.

digital marketing digital music gaming

7 https://www.ceintelligence.com/

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

22

(3) Accelerating Regional Technology Companies: Techbeach Retreat Through collaboration with Tech Beach Retreat Lab, the programme established a framework aimed at bolstering regional Information and Communications Technology (ICT) firms. This framework facilitated enhanced visibility within target markets and facilitated connections with investors, mentors, and resources from prominent global technology companies. The specific objectives of the project were to connect MSMEs with investors and mentors, who together can drive innovation and entrepreneurship in the region.

As a result, firms were able to increase their customer base and generate significant growth in revenue.

A total of 30 firms participated in the programme.

Some firms surpassed US$100,000 in revenue and

increased employment.

As a result of the programme global partnerships with both the public and private sector including the OECS, Mastercard and Wipay were developed, and access to new markets was increased.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

23

(4) SME Diagnostic Tool The SME Diagnostic Tool8 is a web-based enterprise-level tool developed by Caribbean Export in 2016 to undertake a scientific assessment of regional exporting firms. The Tool is the first step of a holistic approach in increasing a firm’s competitiveness because of its ability, to not only diagnose a firm’s strengths and weaknesses but also to identify the areas of support that the Agency can deliver independently, or in collaboration with other development partners. Providing a standardised, expert-based methodology for accurately assessing SMEs and identifing the areas where development is required such as management, production, access to finance or marketing, the Tool supports SMEs to increase their exports.

Understanding the need for BSO personnel to be competently trained in the analysis of the information generated,

+

Caribbean Export trained 77 participants after upgrading the tool between 2017-2018.

To date the tool has been used extensively by BSOs across the region, serving as a mechanism to guide the development of our private sector firms.

A total of 1397 assessments have been completed using the diagnostic tool.

8 https://sme-diagnostics.ceintelligence.com/

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

24

The table below details the number of surveys undertaken by each country and their corresponding cumulative percentage.

Country

Assessments Completed

Total

Incomplete

Antigua & Barbuda Barbados Belize Dominica Dominican Republic Grenada Guyana Haiti Jamaica Saint Lucia St. Kitts and Nevis St. Vincent and the Grenadines Suriname The Bahamas Trinidad and Tobago Other Total

50 102 48 50 103

25 58 25 28 63 21 34 48 112 74 16 50 22 45 133 64

25 44 23 22 40 23 26 37 111 65 13 25 21 33 71

44 60 85

223 139

29 75 43 78 204 64 1397

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

25

v. Increased In-Market Presence Leveraging Brand Caribbean in Export Promotion (1) Launch to Market Programme Caribbean Export developed a concept note for a Launch to Market Programme. The overall objective of the programme was to enhance the export competitiveness of CARIFORUM SMEs in the agro-processing sector to meet the increasing demand in the UK and EU markets. Specifically, the project expected to build the export capacity of CARIFORUM firms to penetrate targeted markets such as Germany, the Netherlands, Spain, Italy, France and Belgium; to immerse a selected group of firms in the various retail markets in the UK and EU and increase firms’ market access and visibility; equip CARIFORUM Firms with the tools and expertise to address market entry challenges; identify a blueprint for a go-to-market launch strategy; and prepare firms to engage with potential buyers from the UK and EU at B2B meetings at international trade shows and missions. The programme had four key modes of delivery: market access programme, coaching programme, go-to-market strategy, and a B2B programme. Five companies participated in the programme: Naledo (Belize), Old Duppy Pepper Sauces (Barbados), Pringa’s Natural Flavour (St. Vincent and the Grenadines), Sugartown Organics (St. Kitts and Nevis), Chief Brand Products Ltd (Trinidad and Tobago). The accelerator programme yielded significant improvements across various dimensions for each of the producers involved. Notably, combined commercial, category, market, supply chain, and compliance knowledge and capabilities saw a notable 51% increase. Additionally, marketing, branding, and packaging advanced by 21%, with some negative feedback indicating areas for improvement, leading to positive actions such as the rebranding of brands like Sugar Town Organics. Knowledge of the market, outlets, sauces, and condiments more than doubled, directly attributable to the programme. Producers reported enhanced confidence in areas such as branding, compliance, and category knowledge, with positive feedback highlighting the programme's invaluable nature for businesses looking to export from the region. The programme effectively addressed commercial skills, resulting in a 56% improvement, and even areas where producers felt confident, such as dealing with buyers, saw a 22% advancement on average. While some brands may benefit from refresher sessions, overall feedback was positive, with one producer suggesting further assistance with marketing budgets and collaboration with brand agencies/ designers to enhance their products. In short, producers expressed gratitude for the programme's knowledge and expertise, indicating its overall effectiveness and value.

Implementation of the 11th European Development Fund (EDF) Regional Private Sector Development Programme (RPSDP)

26