BRIDGETOWN, Barbados, (CMC) – The Caribbean Development Bank (CDB) has approved a grant of US$132,000 to the Government of St Kitts and Nevis for the formulation of a medium-term development strategy and investment plan for 2025 to 2029.

The plan will promote inclusive, resilient and sustainable development in alignment with the Sustainable Development Goals (SDGs) and the country’s National Development Planning Framework.

The project, which will be implemented by the Ministry of Economic Development and Investment (MEDI), supports the creation of a monitoring and evaluation framework inclusive of a digital tool to track progress.

This framework will ensure comprehensive oversight over public investments, allowing for efficient resource allocation and effective programme implementation aligned with national targets. Additionally, it will seek to provide greater accountability, efficiency and sustained momentum during the implementation of the development strategy.

According to the CDB’s Acting Vice President of Operations, Therese Turner-Jones, the bank remains committed to “assisting the government of Saint Kitts and Nevis in crafting the requisite tools to achieve desired development outcomes. This initiative is intended to build institutional resilience and strengthen implementation capacity and good governance in the twin-island federation”.

The government is also providing US$25,000, towards the project, which is set to support the implementation of initiatives for economic diversification, renewable energy transition, sustainable agriculture, education and social programmes, and other priority areas.

The new strategy will focus on climate resilience, green energy transformation, human capital and economic and institutional development, and social inclusion, with an emphasis on gender equality.

According to Ian Durant, CDB’s director of economics, “CDB is pleased to support this initiative as it advances a shared vision for economic and social development, infrastructure enhancement and environmental protection. The pandemic severely impacted the country’s economy, which contracted by 15.4 per cent in 2020, affecting livelihoods and disrupting progress toward SDGs targets.”

He noted that while economic recovery is almost complete, the heavy reliance on tourism and its inherent vulnerabilities underscores the urgency of addressing the country’s long-standing structural challenges and constraints to widening the production base.

“Our ongoing engagement and support are intended to improve macroeconomic and fiscal stability, increase productivity, competitiveness, economic diversification and governance, while also enhancing protection for the most vulnerable among other areas.”

St Kitts and Nevis has advanced significantly, achieving high-income status and now ranks 51 on the Human Development Index.

Despite this progress, development gaps persist, aggravated by the COVID-19 pandemic and climate change challenges.

The government said it continues to prioritise economic growth and social advancement, particularly for the most vulnerable.

Speaking about the CDB-backed initiative, the country’s Prime Minister Dr Terrance Drew said the state has carefully aligned the National Development Framework with the sustainable development agenda while ensuring the incorporation of innovation, inclusivity and sustainability.