As reported in last Wednesday’s edition, the Dutch government plans a new entity aimed at strengthening food security in the Caribbean part of the Kingdom. The proposed CariFoodFund (CFF) will receive an initial capital injection of 18 million euros.
This is important because of the islands’ almost complete dependency on imports from overseas to put meals on tables. That makes them very vulnerable in case of crises like the COVID-19 pandemic or recent regional tensions near Venezuela, especially for fresh products such as fruits, vegetables, dairy, fish and meat.
St. Maarten, St. Eustatius, and Saba being in the so-called hurricane belt adds another dimension. If a situation were to occur where, due to storms, no planes could land or ships berth for too long, it would put pressure on existing grocery stocks.
CFF is to operate as a revolving fund, meaning the capital will not be spent once, but will be reused through loans that are repaid and reissued. Entrepreneurs active in agriculture, horticulture, livestock farming and fisheries will be able to apply for various capital products, including low-interest loans and subordinated financing.
The Ministry of Home Affairs and Kingdom Relations BZK will contribute 18 million euros as equity, but through partnerships with banks and pension funds, the goal is to significantly increase the fund’s size. Six letters of interest have already been received from financial institutions, and the amount is expected to grow to at least 50 million euros.
In addition to financing, the foundation is to establish an academy focused on knowledge development, training and support for entrepreneurs and government institutions on the islands. That is all good and well, but care must be taken so that money is actually spent on boosting local food production instead of more studies and reports.
The total budget for food security measures amounts to 24 million euros, of which six million is earmarked for subsidies and contributions to local governments for policy development and infrastructure improvements. There is thus no excuse to use the remaining 18 million for anything else than real and practical projects with tangible results.
