— President Ali announces as region moves to cut food imports by 25 per cent by 2025

PRESIDENT Dr Irfaan Ali has announced a US$100M (Guy$20.7B) Special Concessional Financing Package geared at helping to transform agriculture in the region.

President Ali made the announcement during a presentation to the 33rd Inter-Sessional Meeting of the Conference of Heads of Government of CARICOM in Belize on Tuesday.

The President, who is the Lead Head on Agriculture, Agricultural Diversification and Food Security in the region, during his presentation, outlined an action-oriented and solution-based proposal, aimed at reducing the region’s food import bill by 25 per cent by 2025.

This target has been mandated by the CARICOM Heads of Government.

The Head of State of Guyana, in his presentation, addressed each country’s report of current and target commodities to achieve the 25 per cent reduction by 2025, detailing both constraints and actions needed.
He highlighted that coffee, cocoa, coconut, spices, hemp (industrial) and palm oil are high-value imports into CARICOM with potential for development in the region.

Production is expected to increase between 25 per cent and 700 per cent if food imports are going to be significantly reduced by 2025. To achieve this, national expenditure on agriculture must be increased. On average, CARICOM member states expended an estimated 2.1 per cent of national expenditure on agriculture. However, President Ali implored that a significant increase is required of about five per cent expenditure in agriculture by 2025 by each member state. Guyana, he said is committed to expending 10 per cent of the national budget to agriculture by 2025.

The Lead Head for Agriculture also reported that there had been concrete progress in access to financing for agriculture investment, financing through a facility called the CARICOM Sustainability Agriculture Credit Facility (the “Credit Facility”), using Republic Bank Limited as a lender.

This is a special facility designed for agriculture activities including, but not limited to, development of priority crops, capital equipment for farming, feeder roads to provide access to arable lands, bulk storage for crops, processing plants and shade house farming.

This provides funding for up to five years for repaying up to G$2B to Guyana and US$100M to all CARICOM member states, with interest rates as low as 2.5 per cent.

Meanwhile, President Ali also noted the significant contributions made over the one-year lifespan of the Special Ministerial Taskforce (MTF), with specifically developed investment projects in poultry, corn and soya, and mutton (black belly sheep).

In the area of de-risking the agriculture sector, the MTF received a proposal from the Grace Kennedy Insurance Company Limited Jamaica and has started the first stage of implementation.
The MTF has also commenced exploring public-private partnership models for transportation and logistics.

President Ali also highlighted the global developments and their agricultural implications in the region. Given the critical need for improved connectivity to foster the easy movement of cargo, President Ali also spoke to the issue of ‘Improving CARICOM Food Security through Enhanced Maritime Transport’.

The President was commended by Heads of State and governments for driving the transformational agriculture agenda. The CARICOM Heads hailed the President’s passion and leadership in addressing the most critical issue of food security facing the region. In addition to adopting the recommendations, the CARICOM Heads pledged their full commitment to the plan as presented by President Ali.

This biannual meeting brings together the leaders of CARICOM, to discuss major issues affecting the region, and to agree on appropriate policy actions. (Office of the President)