BRIDGETOWN, Barbados (CMC) — The Inter-American Development Bank (IDB) on Friday said the United Kingdom (UK) has reaffirmed its commitment to advancing sustainable development in Latin America and the Caribbean by announcing that it will provide a robust support package to the IDB.

The Washington-based financial institution said UK Secretary of State for Foreign, Commonwealth and Development Affairs David Lammy and IDB President Ilan Goldfajn made the announcement during a meeting in Bridgetown, Barbados.

The IDB said the package includes support for the IDB’s Invest’s pioneering “Originate to Share” business model, as well as plans to invest up to £80 million (US$100 million) in its capital increase, with the potential of a fivefold increase in the UK’s share in the institution’s capital.

“This contribution reflects the UK’s confidence in IDB Invest and its track record of working with the UK to maximise private-sector-led development in the region,” the IDB said. 

It said the UK has also signalled its support for the replenishment of IDB Lab, the IDB’s innovation laboratory and venture capital arm. 

In addition, the IDB said the UK is offering up to £15 million (US$19 million) to fund “targeted initiatives in the Caribbean”.

This includes £5 million (US$6.3 million) to support the ONE Caribbean Multidonor Trust Fund, which provides a strategic framework for improving climate adaptation and resilience, citizen security, private-sector engagement and food security, the IDB said. 

It said the fund promotes regional cooperation and aims to maximise resources, strengthen the capacity of both the public and private sectors to tackle development challenges, and leverage economies of scale. 

The IDB said the fund directly benefits Barbados, Belize, Guyana, Jamaica, Suriname, The Bahamas, and Trinidad and Tobago. 

In addition, the IDB said the UK is providing up to £10 million (US$12.7 million) to support COMPETE CARIBBEAN+, “a new programme that aims to foster sustainable economic growth while increasing the competitiveness of Caribbean companies”.

It also aims to promote climate action and gender equality by sharing best practices and the latest development research with both private and public-sector actors, the IDB said.

It said the programme specifically aims to benefit vulnerable communities in small-island nations. 

“The United Kingdom has been a steadfast partner in supporting the IDB’s work in addressing some of the pressing challenges in Latin America and the Caribbean,” Goldfajn said. “Together, we are advancing citizen security, bolstering climate resilience, and creating economic opportunities to improve lives and strengthen communities across the region.” 

Lammy said at the Regional Security and Justice Summit in Bridgetown: “As the son of Guyanese parents, I am living proof of the ties the UK shares with the Caribbean.” 

“Building our ties with these fast-growing economies in the region will make the UK and the Caribbean safer, stronger, more prosperous and more resilient against the climate crisis,” he added.