In a landmark move to bolster infrastructure and education in St. Kitts and Nevis, Prime Minister Dr. Terrance Drew has signed a Heads of Terms agreement with the African Export-Import Bank (Afreximbank), paving the way for up to USD $50 million in climate-linked financing. The agreement was formalised during the fourth AfriCaribbean Trade and Investment Forum (ACTIF2025), held in St. George’s, Grenada.
The financing arrangement, dubbed the Education Construction and Rehabilitation Climate-Linked Facility, is intended to support the development and upgrade of critical social infrastructure across the Federation, with a strong emphasis on climate resilience and sustainable design. The facility aligns with the Government’s long-term vision of building a resilient, inclusive society equipped to face the challenges of the 21st century.
“This agreement represents more than financing—it represents our vision for a stronger, more resilient St. Kitts and Nevis,” Prime Minister Drew stated during the signing ceremony. “We are laying the foundation today for generations to come to access quality education and vital services, regardless of their geographic or economic background.”
The Heads of Terms document formalises the shared commitment of both parties to proceed with the negotiation of full financing terms and approval processes. It reflects Afreximbank’s confidence in the development agenda of St. Kitts and Nevis and its readiness to partner on impactful projects that align with shared sustainability goals.
The climate-linked facility will focus particularly on educational infrastructure, addressing gaps and vulnerabilities in schools and other learning institutions. The aim is to ensure that public infrastructure not only meets the highest educational standards but is also designed to withstand the environmental and climate-related risks facing small island developing states.
Prime Minister Drew emphasised that this agreement also reinforces the growing bonds between Africa and the Caribbean and the importance of South-South cooperation. He noted that it exemplifies how Caribbean nations can work with African institutions to forge innovative and context-appropriate solutions to global challenges.
“Our participation at ACTIF2025 has shown the world that Caribbean leadership, particularly in St. Kitts and Nevis, is committed to taking bold, forward-thinking steps to shape a sustainable future,” Dr. Drew added.
Negotiations on the full financial structure of the facility will now commence, with the government aiming to ensure that all aspects of the agreement support national development targets while remaining fiscally responsible and environmentally sound.
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