Greater role of business community for self-sufficiency Caribbean parts of Kingdom
The business community is being given a greater role in the cooperation with the Caribbean islands and countries in the Kingdom. Local entrepreneurship is encouraged by combining money from the Central Government and local private parties. This new approach is now the first to be deployed with the 24 million euros the Cabinet has made available for the production of fresh food.
This money will be used to set up a so-called revolving fund in which local banks and pension funds participate. This should lead to better results and more self-sufficiency for the islands. State Secretary Zsolt Szabó (Digitalisation and Kingdom Relations) informed the House of Representatives today about his approach in which the private sector has an important role to play.
State Secretary Szabó: “I want to see more results than so far. As far as I am concerned, we are going to do things differently from now on. By involving private parties directly, more room is created for investments by entrepreneurs.This stimulates the economy and directly contributes to economic self-sufficiency, which I consider essential for the future of the islands, in addition to good governance and solid finances. As far as I am concerned, this approach can also be applied within other economic sectors and with civil society. This is a real ‘game changer’ for the islands: together with entrepreneurs, civil society, and local governments, this approach is a great opportunity to really get it right now. My ambition is for this to be a catalyst for future investment on the islands.”
Dependency makes vulnerable
Previously, the Cabinet announced that it would allocate €24 million to food security on the six islands. The islands in the Caribbean parts of the Kingdom rely heavily on imports for fresh food. This is not only expensive for the residents, it also makes the islands vulnerable to outside influences. Among other reasons, because of high import tariffs, strong exchange rates or natural disasters. Producing their own food makes fresh food affordable, stimulates the economy, and increases self-sufficiency.
State Secretary Szabó: “Entrepreneurs play a crucial role in this. After all, they provide local initiatives and the necessary innovation. We are now going to make this possible. Not with separate projects, but a well thought-out and result-oriented approach. This also involves knowledge institutions that can help entrepreneurs with innovative applications and the further dissemination of the knowledge gained. A special academy to be set up should contribute to this.”
Stimulating entrepreneurship
A major bottleneck for entrepreneurs on the islands is the access to capital to invest. Especially for entrepreneurs in the food production sector, it is difficult to obtain funding to start, grow or innovate a business. Therefore, to address this problem, a so-called revolving fund is set up to be housed in an external foundation. The available budget is increased as private parties, e.g. banks and pension funds, can also participate in the fund. The foundation is going to offer low-interest loans to entrepreneurs producing fresh food. This ensures long-term, innovative, and effective use of resources. In this way, both private food production and entrepreneurship are encouraged on the islands. In the second half of 2025, companies can apply for a knowledge voucher worth 5,000 euros. They can exchange this voucher at a knowledge institution for knowledge and advice, for example on ways to increase productivity and efficiency.
Supporting local governments
A part of the funds is channelled through local governments to create framework conditions that should contribute to food security. In this way, investments can be made in infrastructure, water management or fresh goods storage, for example.
In the coming period, the plans are being elaborated further and it is also being determined how the funds made available by the Cabinet are going to be distributed. The aim is to open the foundation and the counter for local government initiatives in early 2026.