The CARIFORUM region presents a myriad of opportunities for EU firms in the road, water and sanitation, electricity infrastructure sectors.
In this context, the CARIFORUM-EU Economic Partnership Agreement (EPA) is a key tool for EU businesses to access and invest in the Caribbean.
This was revealed by David Mogollón, Head of Cooperation of the Delegation of the
European Union to Barbados, the Eastern Caribbean States, the OECS and CARICOM/CARIFORUM at a webinar held on October 19 during which the findings of an EU-
funded study on business opportunities in Infrastructure and Utilities in CARIFORUM were presented. It was the fourth webinar on sectoral trade and investment opportunities in the
CARIFORUM region within the framework of the CARIFORUM-EU EPA.
Stating that the EU was proud to be commemorating the 15-year anniversary of the signing of the CARIFORUM-EU EPA this year, Mr. Mogollón noted that this Agreement supports the
conditions for increased investment and economic growth, including in the infrastructure and utilities sectors. “With 65%-75% of CARIFORUM Member States’ service sectors open to EU operators, EU firms can establish commercial presence and invest in the region across those particular sectors and many other related ones,” he said.
Mogollón also underscored the importance of the EU Global Gateway Strategy, which is the
EU’s offer to scale up high-quality, sustainable investments, by promoting an enabling
environment that allows for such investments to happen. “The Global Gateway Investment
Agenda (GGIA) identifies project packages in which public finance is mobilised to create the
conditions and predictability that bring further EU private sector investments. Renewable
energy and water are priority sectors for the GGIA in many CARIFORUM countries, making
opportunities in infrastructure and utilities particularly timely and relevant,” he added.
Stephane Quash, Director of the European Business Chamber in Trinidad and Tobago, who
opened the first session on Business Opportunities and the CARIFORUM-EU EPA, noted that
there are interesting opportunities for EU investment in the sector through the EPA, the EU
Global Gateway Investment Agenda, performance- based contracts and public private
partnerships. He added that the necessity to develop climate resilient infrastructure in the
region provides an opportunity for EU grey and green investment.
Jean Marco Pou Fernández, President EuroChamber of Commerce of the Dominican
Republic (DR) opened the second session on Private Sector Perspectives and highlighted that the CARIFORUM -EU EPA provides numerous benefits to both EU and CARIFORUM investors such as reduced tariffs and regulatory cooperation. He recommended that the key to doing business successfully in the DR is to develop partnerships with local businesses.
Both EuroChambers added that they stand ready to assist EU businesses who want to trade or invest in the region.
The sectoral report notes that the Caribbean is a strategic region with diverse economies that present significant opportunities in the infrastructure and utilities sector and that EU investors can tap into opportunities estimated at USD 10 billion for new infrastructure and USD 9.5 billion for maintenance and asset replacement needed to meet the Sustainable Development Goals across the Caribbean region. Among the key sectors in need of significant investments are road infrastructure, water and sanitation and energy. These sectors are also fundamental for propelling economic growth, enhancing the region’s competitiveness and people’s life conditions.
In the road infrastructure sector, specific opportunities that EU investors can tap into include the construction of new highways and rehabilitation of road networks as well as the
mainstreaming of climate resilience in road infrastructure through consultancy services,
innovative road surfacing and repair technologies and digital systems to enhance road planning and management. Water supply and sanitation improvement projects also offer interesting business prospects in the CARIFORUM region where continuous access to water supply is not always a given and less than 20% of wastewater produced is recovered.
Additionally, the shift to renewable energies in the region also requires investments in power grid modernisation and smart grid technologies.
The report concludes that with careful and strategic engagement, the region can be a fertile
ground for sustainable development, leveraging European expertise and the CARIFORUM-EU EPA to boost economic conditions and enhance the quality of life across the Caribbean.
