OVERVIEW
Supporting the Caribbean through Crisis
In the face of an unprecedented global crisis, the Special Development Fund (SDF) played a pivotal role in the Caribbean Development Bank’s (CDB) response to COVID-19. By providing financial assistance, technical support, and capacity-building initiatives, the SDF helped Borrowing Member Countries (BMCs) mitigate the health, social, and economic impacts of the pandemic.
A Multifaceted Response to a Historic Challenge
The COVID-19 pandemic reshaped life in the Caribbean, straining health systems, social services, and government revenues. Recognising the urgency, the SDF reprogrammed uncommitted resources from the final year of its Ninth Cycle (SDF 9) to provide multidimensional support tailored to the immediate needs of BMCs. Key components of the SDF’s COVID-19 response included:
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Debt Service and Policy-Based Lending - The SDF committed approximately $106.4 million in loans to help BMCs address fiscal shortfalls and ensure critical health, social, and economic expenditures were met. This funding supported economic recovery and resilience-building in sectors hardest hit by the pandemic, enabling countries to navigate the fiscal challenges brought on by COVID-19. |
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Social Sector Support - Grants totaling $3 million provided personal protective equipment for healthcare workers in 14 countries and delivered psychosocial support to vulnerable women, families, students, and teachers affected by the pandemic. |
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Assistance for MSMEs and Creative Industries - Emergency grant funding targeted export-oriented micro, small, and medium-sized enterprises (MSMEs) and operators in the cultural and creative industries, helping them adapt and recover from pandemic-related disruptions. |
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Bridging the Digital Divide in Education- Recognising the shift to online learning, the SDF provided a grant to the University of the West Indies for computing devices for disadvantaged students across five campuses. Additionally, free internet access was offered to support students’ continued education during the crisis. |
Building Resilience for the Future
Through swift action and targeted support, the SDF helped Caribbean nations withstand the crisis and emerge stronger, more resilient, and better prepared for future challenges. The Fund’s COVID-19 response exemplified its commitment to addressing immediate needs while laying the foundation for long-term recovery and resilience. By prioritising critical health and social interventions, supporting vulnerable sectors, and enabling educational continuity, the SDF reinforced its role as a vital partner in the Caribbean’s journey toward sustainable development.