Bahamas PM Philip Davis signs $220M framework agreement with Afreximbank at 48th CARICOM Meeting

The prime minister of the Bahamas, Philip Davis, on Thursday, February 20, 2025, signed a framework agreement with the African Export-Import Bank (Afreximbank) during the 48th CARICOM Heads of Government Meeting in Bridgetown, Barbados. The bank was represented by its president Benedict Oramah.

The pact worth $200 million was formalized to develop climate-resilient and trade-enhancing infrastructure such as roads, energy and other essential economic infrastructure in The Bahamas, the office of the country’s prime minister said. It also aims to boost economic growth and strengthen ties between the Caribbean nation and Africa. 

Barbadian Prime Minister Mia Amor Mottley, the new chair of CARICOM, was present during the signing event. 

Details about the agreement

The agreement outlines a structured approach for collaboration between The Bahamas and Afreximbank, leveraging the latter’s expertise in project financing, advisory services, and development. 

Under the arrangement, a joint working group will oversee the identification, planning and implementation of strategic infrastructure projects. It will comprise members from both sides. The framework agreement establishes clear criteria and requirements for the selection of projects. Both sides have committed to transparency and accountability while working under the deal. 

Afreximbank’s annual meetings in The Bahamas in 2024

The agreement exhibited strong ties between The Bahamas and Afreximbank. Last year, Bahamian capital Nassau hosted the 31st Afreximbank Annual Meetings and the third AfriCaribbean Trade and Investment Forum to strengthen trade and investment ties between Africa and the Caribbean. 

During the event, the Afreximbank and the Caribbean Export Development Agency (Caribbean Export) announced the signing of a memorandum of understanding to improve trade and investment flows between Africa and the Caribbean.

The Bahamian prime minister articulated a vision for “Global Africa” during the event transcending geographical boundaries to unite the nations of Africa and the Caribbean to achieve economic prosperity. 

He also outlined a blueprint for financial integration of Africa and the Caribbean, stressing collaboration in areas such as banking, digital finance, and regulatory frameworks. He also highlighted the Bahamas’ role in pioneering initiatives such as the Sand Dollar -- the world’s first central bank digital currency -- as a model for improving financial inclusivity and resilience across the regions.

Set up in 1993 by African governments, African private and institutional investors, non-African financial institutions and private investors, in Nigeria in 1993, the Afreximbank seeks to finance, promote and expand intra-African and extra-African trade. It is headquartered in Cairo, Egypt, and has branch offices in countries such as Nigeria and Zimbabwe. It has an authorized share capital of $750 million. 

PM Davis speaks about agreement made at CARICOM event

Prime Minister Davis, who will face election in 2026, said the latest agreement with the lender shows his government’s strong commitment to boost economic development and improve the quality of life for all people of The Bahamas. The country aims to build a stronger and resilient economy and secure lasting prosperity for its people by investing in sustainable infrastructure. 

Its ongoing partnership with Afreximbank also reflects a mutual commitment to deal with common challenges through collaborative efforts. 

Ahead of the meeting in Barbados, the office of the prime minister of The Bahamas said regional leaders will focus on issues such as climate change, economic resilience, regional security, Haiti crises, food security and other key issues affecting the Caribbean region. 

“As the region continues to navigate complex global challenges, the discussions, policies and strategies presented in this CARICOM Heads of Government meeting will contribute to the continued growth and development of members in the Caribbean Community,” it said.

The theme of the meeting is “Strength in Unity: Forging Caribbean Resilience, Inclusive Growth, and Sustainable Development.”

Deputy Prime Minister Chester Cooper will serve as the acting prime minister of the Bahamas in the absence of Davis.