11TH European Development Fund Implementation Report 2017- 2023

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)

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