PM Drew Announces Revitalisation of St. Kitts and Nevis’ CBI Programme, Focus on Sustainable Development

Prime Minister of St. Kitts and Nevis, Dr. Terrance Drew, has declared that his administration has successfully reformed and secured the country’s Citizenship by Investment (CBI) programme, transforming it into a vehicle for sustainable development and job creation for citizens.

In a national address, on October 17, Dr. Drew outlined the key measures his government has implemented to protect the country’s economic stability and to ensure that CBI continues to contribute meaningfully to the nation’s future.

According to PM Drew, when his administration took office in August 2022, the CBI program directly contributed between 60 to 70 percent of federal revenue, a figure that left St. Kitts and Nevis dangerously reliant on a single source of income. This highlighted the volatile nature of the CBI industry compared to natural resources like oil and gas, which have stable and consistent demand.

“Our proverbial economic eggs were all in one basket. We faced a stark choice: either to continue down the path of reckless exploitation of CBI, or make tough decisions to secure our long-term future,” Dr. Drew stated.

The prime minister emphasised that the CBI programme, despite its importance to the economy, is highly susceptible to international politics and scrutiny. This vulnerability was highlighted when the previous administration’s management of the programme put the country’s visa-free access to key international countries at risk. He explained that the reckless issuing of citizenships for short-term financial gain had almost pushed the country off an economic cliff.

“St. Kitts and Nevis was on the brink of losing that precious visa-free access,” Dr. Drew remarked.

Prime Minister Drew said his government immediately initiated a full investigation into the CBI programme, receiving its first report in October 2022. Following this, a comprehensive legislative review was launched, and by December 2022, new CBI regulations were enacted. These reforms introduced a board of governors to oversee operations, implemented a technical committee to review files, and for the first time in 40 years, criminalised underselling within the programme.

Additionally, Prime Minister Drew spearheaded efforts to position St. Kitts and Nevis as a global leader in raising CBI standards. One notable moment came in February 2023, when the country hosted the U.S.-Caribbean Roundtable on CBIs, which brought together five Caribbean prime ministers, U.S. Treasury officials, and the Governor of the Eastern Caribbean Central Bank (ECCB). This event resulted in the adoption of six key principles to govern CBI practices across the region, including enhanced due diligence processes, independent audits, and the suspension of applications from Russian and Belarusian citizens.

Dr. Drew’s administration continued its efforts to reform the CBI programme throughout 2023, culminating in the introduction of further measures, such as increasing the minimum qualified investment to USD $250,000. These changes, while essential to preserving the long-term viability of the programme, led to a temporary dip in revenue. Up to September 2024, the programme generated EC $280 million, a decline from previous years, however, the prime minister made it clear that this reduction was both anticipated and necessary.

“Believe me, without these changes, all would have been lost,” Dr. Drew emphasised.

Looking ahead, Dr. Drew stressed that the reformed CBI programme will now be used to fuel sustainable projects that will create permanent jobs and economic opportunities for the people of St. Kitts and Nevis. He assured the nation that CBI revenues will now be directed towards tangible development initiatives designed to benefit all citizens.

“This now signals that the era of gross mismanagement is over,” he declared

The prime minister concluded his address by reflecting on the financial contributions of the CBI programme over the years. In 2019, the programme generated EC $443 million, followed by EC $271 million in 2020. In 2021, revenues climbed to EC $543 million, and in 2022, the figure peaked at EC $669 million. Although revenue for 2023 was slightly lower at EC $620 million, Dr. Drew emphasised that the reforms were essential to maintaining the integrity and longevity of the programme.

The Drew-led administration is confident that the reformed CBI programme will not only generate economic growth but also serve as a foundation for the long-term development of St. Kitts and Nevis.