The business community is taking on a greater role in cooperation with the Caribbean islands and countries in the Kingdom. Local entrepreneurship is being stimulated by bringing together funds from the state and local private parties. This new approach is now being implemented first with the 24 million euros that the Cabinet has made available for the production of fresh food.
With this money, a so-called revolving fund is being established in which local banks and pension funds participate. This is expected to lead to better results and more self-sufficiency for the islands. State Secretary Zsolt Szabó (Digitalization and Kingdom Relations) informed the House of Representatives today about his approach, in which a significant role is reserved for the private sector.
State Secretary Szabó: “I want to see more results than we have so far. From now on, we will do things differently. By involving private parties directly, more room for investments from entrepreneurs is created. This stimulates the economy and directly contributes to economic self-sufficiency, which I consider essential for the future of the islands, alongside good governance and sound finances. 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. My ambition is to make this a catalyst for future investments on the islands.”
Dependency Makes Vulnerable
The cabinet previously announced it would allocate 24 million euros for food security on the six islands. The islands in the Caribbean parts of the Kingdom are heavily dependent on imports for their fresh food. This is not only expensive for the residents, but it also makes the islands vulnerable to external influences, including high import tariffs, strong exchange rates, or natural disasters. Producing food locally makes fresh food affordable, stimulates the economy, and increases self-sufficiency.
State Secretary Szabó: “Entrepreneurs play a crucial role in this. They provide local initiatives and the necessary innovation. We are going to make this possible now. Not with isolated projects, but with a well-thought-out and results-oriented approach. We also involve knowledge institutions that can assist entrepreneurs with innovative applications and the further dissemination of acquired knowledge. A specially established academy will contribute to this.”
Stimulating Entrepreneurship
A significant bottleneck for entrepreneurs on the islands is access to capital for investment. Especially for entrepreneurs in the food production sector, it is difficult to obtain financing to start, grow, or innovate a business. To address this issue, a so-called revolving fund is being established that will be housed in an external foundation. The available budget will be increased as private parties, such as banks and pension funds, can also participate in the fund. The foundation will offer low-interest loans to entrepreneurs producing fresh food. This ensures a long-term, innovative, and effective use of the resources. In this way, both private food production and entrepreneurship on the islands are stimulated. In the second half of 2025, companies can apply for a knowledge voucher worth 5000 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 portion of the funds will be deployed through local governments to create conditions that should contribute to food security. This way, for example, investments can be made in infrastructure, water management, or the storage of fresh goods.
In the coming period, the plans will be further developed, and it will also be determined how the funds made available by the cabinet will be distributed. The aim is to open the foundation and the counter for local government initiatives by early 2026.