BASSETERRE, St. Kitts- The Eastern Caribbean Currency Union (ECCU) regional governments have been paying much attention to the development of entrepreneurial initiatives to stimulate economic activity and to further support the region’s private sector recovery efforts in light of increasing global economic uncertainty.
During the most recent Meeting of the Eastern Caribbean Central Bank (ECCB) Monetary Council held in St. Kitts, Council received an update on progress made towards the establishment of the Eastern Caribbean Enterprise Fund (ECEF), an initiative geared toward the overall development and competitiveness of the region.
The ECEF is envisaged to provide another alternative to debt and equity financing, as well as export insurance coverage, business advisory and consulting services. It will be geared towards the development of the real or productive sector in the ECCU by assisting business creation and expansion. Location, taxes or boundaries will not affect regional businesses needing to access the services of the ECEF.
According to a communiqué issued by the Monetary Council following its February 13 meeting, “The ECEF would be established as a limited liability company (LLC) with an initial authorised capitalization of EC$50M and a first subscription of EC$10 million through private placement to regional and international institutions. Three classes of shares would be offered: Class A shares would be allotted to the ECCB; Class B shares to the Social Security Systems and other public sector institutions; and Class C shares to financial institutions.”
The Council agreed to encourage member governments to expedite the removal of various legal and administrative impediments to the establishment of both ODTC and the ECEF as regional companies, a step that is expected to foster an “enabling environment conducive to the conduct of doing business”.
The report referenced the February 4-6 Meeting of the ECCB and International Finance Corporation (IFC) which was intended to identify areas in which the IFC could assist the Bank and by extension the region in building “institutional capacity and competitiveness to facilitate growth and development”. Some of the initiatives identified for support were the ODTC, the ECEF, an OECS Credit Bureau, an OECS Business Council, an OECS e-Government Project and a Regional Ferry Service.
Similar initiatives have already been undertaken in St. Kitts-Nevis by the Ministry of Finance and International Trade with the National Entrepreneurial Development Division (NEDD). The programme is intended to encourage entrepreneurship by offering assistance and guidance to prospective businesspersons with an aim to strengthen the Ministry’s thrust toward improving the private sector.
The establishment of the St. Kitts-Nevis Coalition of Services Industries (CSI) is also an avenue for development of entrepreneurial skills as it prepares service providers for regional trade. Both projects are expected to be fully operational by the beginning of March.
