Kingdom moves to launch CariFoodFund to finance agriculture and strengthen food security

THE HAGUE--The Kingdom of the Netherlands is moving forward with the establishment of the CariFoodFund (CFF) foundation, a new financing vehicle intended to provide loans to entrepreneurs in the agricultural sector and strengthen food security across the Caribbean parts of the Kingdom.

The Council of Ministers granted approval for State Secretary for Kingdom Relations Eddie van Marum to proceed with the initiative. The fund is designed to begin issuing its first loans in 2026, once the legally prescribed preliminary procedure has been completed.

The first pillar of the initiative focuses on stimulating entrepreneurship by setting up the CariFoodFund foundation and creating a revolving loan fund. The Ministry of the Interior and Kingdom Relations (BZK) will provide 18 million euros as the starting capital to support investments that contribute to strengthening the food system, including local food production.

The second pillar supports broader food security efforts through 6.6 million euros allocated for local government-led policy initiatives in the field of food security, also funded through BZK. The intention is to ensure resources are used effectively for initiatives that strengthen the food system, including local production.

The initiative is aimed at improving resilience across the six Caribbean islands in the Kingdom: Aruba, Curaçao, St. Maarten, Bonaire, Saba, and St. Eustatius. The islands are largely dependent on food imports, and the fund is intended to support increased local production and related supply-chain improvements.

Food security, as referenced in the proposal, aligns with the Food and Agriculture Organization (FAO) definition, centered on availability, access, use, and stability. Projects supported through the fund are expected to contribute to one or more of these dimensions, including through improvements in transport, storage, processing, and distribution infrastructure.

CariFoodFund is expected to offer financial services, including multiple loan products, to entrepreneurs in the food sector. The goal is to expand access to finance for start-ups and growth initiatives, and to help mobilize additional resources by working with private financiers such as banks and pension funds.

In addition to financing, the foundation is expected to set up an Academy aimed at stimulating knowledge development, knowledge sharing, and business development for both entrepreneurs and governments on the islands.

Preparatory work for establishing the foundation included consultations under the Compatibility Act (CW) 2016 with the Privatisation Review Committee (MinFin) and the Court of Audit.

In September 2025, the Privatisation Review Committee assessed the intention to establish the foundation and issued a positive recommendation. Points highlighted included applying the relevant income standards framework to management and supervisory roles, and ensuring the foundation’s governance structure and appointment process are aligned with the applicable standards. These elements were incorporated into draft articles of association.

The Court of Audit also provided observations, including clarification of the State Secretary’s role and the conditions attached to the start-up subsidy. The approach outlined includes a grant agreement with clear conditions, provisions on reporting and periodic information, and attention to an exit strategy for the revolving fund, including how the foundation would be wound down if objectives cannot be met.

The information to Parliament is being provided within the context of the required preliminary procedure of 30 days under the Accounts Act 2016. If at least one fifth of the House requests further information during that period, the foundation would be established no earlier than 14 days after the requested information has been provided.

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