In the Caribbean and Africa, the agribusiness industry plays a vital role in the economies of many countries, with agriculture being a significant contributor to GDP in nations like Barbados, Guyana, Trinidad and Tobago and Ghana. Long-known for its diverse range of agricultural products such as sugarcane, fruits, grains and cocoa, these countries are home to small-scale farmers who form a significant part of the agricultural workforce, practising subsistence farming and small-scale commercial agriculture. However, challenges including climate change, limited access to financing, and inadequate infrastructure impact the productivity and profitability of agribusinesses, in these regions and world over.
In this landscape, an integrated multi-stakeholder approach with input and action from government, private sector, academia and civil society is required to provide the supportive environment for farmers to overcome these limitations. For example, recognising that food security is critical to the sustainable development of our region, the Caribbean Community (CARICOM) has taken the lead with its Vision 25 by 2025 initiative to bring these stakeholders and farmers together with the aim of increasing production, boosting intra-regional trade and advancing wealth creation for the Caribbean region.
At Republic Bank, a regional leader in the financial services industry and the first bank in the English-speaking Caribbean to be a signatory of the United Nations Principles for Responsible Banking, we can say with conviction that we know that we can play a pivotal role in facilitating access to financing for all areas of sustainable development, including food security. As a result, we’ve begun innovating tailored financing solutions and cultivating partnerships to empower agribusinesses and contribute to sustainable agriculture development in its entirety.
It’s a new area for us and as such, we’re piloting our agribusiness products and services in Trinidad and Tobago, positioning agri-preneurs there to thrive in a competitive environment. However, the Republic Bank vision is to roll out these services to various territories in which we operate – providing agricultural practitioners across the Caribbean and Ghana with much-needed access to capital for equipment, infrastructure and business expansion.
Here’s how our agribusiness offerings have been received in Trinidad and Tobago thus far:
Launching Our Agribusiness Loan Portfolio
In May of this year, we introduced our first-ever agribusiness loan offering in Trinidad and Tobago, with an initial financial commitment of TT$50 million (approximately USD$7.4 million) allocated for disbursement. Following extensive research into the financing challenges agri-preneurs face, including venturing on site visits to farms all across the country to have in depth conversations with farmers, it is a product developed with the agri-preneur as its central focus. Our agribusiness loan provides access to flexible financing options, enabling farmers and agri-preneurs to expand their operations, invest in modern equipment, and enhance their agricultural infrastructure.
We launched to test the field. The response from agriculture industry has been tremendous.
As a result, in December 2024, we’ll be increasing our funding allocation from TT$50 million to TT$70 million (approximately USD$10.3 million) for expanded reach and impact. This increase will support two specialised areas in under our agribusiness product to include:
• Hydroponics; and
• Poultry
Pioneering Solutions in Hydroponics
Hydroponics is a farming method that uses nutrient-enriched water instead of soil for crop production and, conserves up to 90% of the water required for traditional farming practices. Given its benefits to both food security and water conservation, we recognise the valuable contribution hydroponics farmers can make in promoting sustainable agriculture. The financing we offer these farmers will cover funding for:
• Equipment such as irrigation pumps, misting systems, greenhouses, and specialised lighting.
• Working Capital for operational expenses, including seedlings and fertilizers.
• Expansion financing for scaling production, diversifying crops, and broadening market reach.
Supporting the Poultry Industry
The poultry sector plays a crucial role in Trinidad and Tobago’s food security, supplying 70% of the population’s annual protein needs. Appreciating its importance, our agribusiness loan will now include the poultry industry where practitioners across the poultry value chain can secure funds to cover:
• Infrastructure development for poultry houses, feeding, and watering systems.
• Renovations and upgrades including improved ventilation, heat-proofing, and equipment modernisation.
• Working Capital for feed, veterinary care and utilities.
• Expansion support to increase capacity, grow flocks or enter new markets.
This support can be accessed by stakeholders across the poultry value chain, from pre-production suppliers to processors and distributors, strengthening the resilience and sustainability of Trinidad and Tobago’s poultry industry.
Empowering Farmers with Knowledge
Complementing the launch of our Agribusiness Loan is our partnership with the MarVista Institute for Agriculture Training and Development (MIATD) through our Power to Make A Difference (PMAD) corporate social responsibility programme. Together with MIATD, which is a local training institute that works to build capacity on sustainable farming techniques to maximise crop yields, we’ve hosted training workshops that have educated hundreds of farmers across the country. These sessions focused on sustainable practices, climate resilience, and crop-specific productivity improvements and financial literacy for agri-preneurs. By providing technical training alongside our financial products, we are equipping farmers to thrive in a competitive and uncertain market.
Success requires so much more than financing. Just as CARICOM has established, it is about working alongside our agri-preneurs in true partnership as together we create food-secure communities and countries.
Building a Greener, More Resilient Future
As collaboration among agriculture operators, financial institutions, government agencies, and agricultural organisations becomes increasingly crucial, Republic Bank stands ready to contribute to the growth and development of the agribusiness sector.
Our initiatives in Trinidad and Tobago are a promising launch to our plans for promoting sustainable agricultural practices and addressing pressing food security challenges where we operate.
Through financial support and technical partnerships that focus on innovative farming methods, we aim to empower farmers to embrace sustainable practices, improve efficiency, and contribute meaningfully to national food security. We’re rallying to the call of Global Entrepreneurship Week 2024, that ‘Entrepreneurship is for Everyone’ including our farmers.
Working together, we can certainly cultivate a future where agriculture is more productive, resilient, and sustainable than ever.
This article is one of a five-part commemorative series by Republic Bank in celebration of Global Entrepreneurship Week 2024. To read all, visit https://republictt.com/republic-journal
Author: Republic Bank
