At CIF 2026, investment experts examined why attracting capital is only part of the challenge and what the Caribbean must do to turn investment interest into lasting economic opportunity.

The Caribbean is attracting international investment interest, but how much of that capital is translating into jobs, stronger businesses and sustainable economic growth?

That was the central question explored during “The Caribbean Investment Scorecard – Where We Stand Today” at the Caribbean Investment Forum (CIF) 2026, held in Barbados from 5–7 October.

Moderated by Caribbean economist Marla Dukharan, the discussion brought together senior representatives from UN Trade and Development (UNCTAD), the United Nations Industrial Development Organization (UNIDO), CAF – Development Bank of Latin America and the Caribbean, and IDB Invest to examine investment trends, structural challenges and the opportunities shaping the region's economic future.

The discussion revealed a region with considerable potential, growing investor interest and strong institutional partnerships, but also an urgent need to turn that momentum into productive investment.

The numbers reveal a challenging investment landscape

Presenting preliminary findings from UNCTAD's Caribbean investment research, Dr. Amelia Santos-Paulino, Chief of the Investment Research Section, highlighted the concentration and volatility of foreign direct investment (FDI) flows.

As underscored during the discussion, the region experienced a 9% decline in FDI in 2025 compared with 2024. More significantly, nearly 80% of investment flows pass through offshore financial centres, meaning much of the reported capital does not necessarily translate into productive investment within Caribbean economies.

When offshore financial centres are excluded, approximately 85% of FDI is concentrated in just two economies: Guyana and the Dominican Republic.

Investment is also heavily concentrated in large-scale projects, particularly oil and gas, tourism, infrastructure and logistics. While these sectors offer important opportunities, the findings raise questions about how smaller economies and enterprises can participate more meaningfully in the region's investment growth.

The global picture presents additional challenges. Investment is increasingly concentrated in strategic industries such as advanced technologies, critical minerals, energy transition and digital infrastructure, where countries with stronger infrastructure and technical capabilities have a competitive advantage.

For the Caribbean, the challenge is not simply to attract more investment, but to diversify investment opportunities and ensure that capital contributes to broader economic transformation.

Investment must create value, not simply flow through the region

Dukharan placed the findings within the wider realities of Caribbean economies, where high dependence on imports results in significant economic leakage.

With much of the region's consumption and government expenditure flowing back out through imports, investment and exports are particularly important drivers of sustainable growth.

The panel agreed that the focus must therefore shift from measuring investment primarily by the amount of capital entering an economy to understanding what that investment actually delivers.

Brian Portelli, Chief Technical Advisor for Sustainable Investment and Responsible Business at UNIDO, emphasised the importance of connecting foreign and domestic investment, strengthening local value chains and ensuring that investment generates long-term economic benefits.

Dr. Stacy Richards-Kennedy, CAF's Regional Manager for the Caribbean, similarly argued that capital must be channelled towards productive sectors, projects with strong domestic linkages, climate resilience and opportunities for regional scale.

These perspectives reinforced the need for quality investment that creates jobs, strengthens productive capacity, supports exports and generates lasting benefits for Caribbean businesses and communities.

From bankable projects to investable opportunities

One of the strongest messages came from Darryl White, Managing Director for the Caribbean Region at IDB Invest, who challenged the region to rethink how investment opportunities are developed.

"Make projects investable before you make them bankable."

His distinction was important. Before a project can secure financing, it needs a compelling value proposition, a viable business model and a realistic pathway to implementation.

The challenge is particularly significant for smaller enterprises, where the cost of project preparation can represent a substantial barrier. White noted that preparing a project can cost between 3% and 5% of its total value—an expense that is easier to absorb for a major infrastructure development than for a business seeking US$5 million or US$10 million.

For Caribbean Export and its partners, the discussion reinforced the importance of building sustained pipelines of investment-ready opportunities, strengthening project preparation capabilities and creating systems that support businesses beyond the initial investor introduction.

But project preparation alone is insufficient.

Richards-Kennedy stressed the need to strengthen technical capacity and develop a greater discipline for execution across both public and private institutions.

Portelli added that clear investment policies, predictable regulatory frameworks and stronger institutional coordination are essential to attracting and facilitating investment over time.

Together, these interventions highlighted a critical point: attracting investors is only the beginning. The region must also have the capacity to convert investment interest into implemented projects.

Regional integration: An investment advantage still to be realised

Another important theme emerged during the audience discussion: the Caribbean's fragmented markets continue to limit its attractiveness as an investment destination.

A contribution from a European Union representative challenged the region to accelerate the development of a more integrated internal market, arguing that stronger connectivity and fewer barriers could enable smaller economies to present a more compelling proposition to international investors.

Dukharan highlighted the inefficiencies of intra-regional payments, where transactions between neighbouring Caribbean economies can require conversion into US dollars and processing through international banking systems.

The discussion also considered the experience of ASEAN, where a coordinated regional investment framework has helped strengthen investment promotion and facilitation while respecting national policymaking.

For Caribbean economies, greater integration could expand market size, improve connectivity and create opportunities for projects and businesses to operate at regional scale.

Financial inclusion must be part of the investment equation

The session also brought attention to a challenge often overlooked in investment discussions: access to basic financial services.

An audience intervention from the Caribbean Digital Finance Alliance highlighted the difficulties many micro, small and medium-sized enterprises (MSMEs) face in accessing business bank accounts and digital payment infrastructure.

Without these services, businesses can struggle to participate in e-commerce, receive international payments, access financing and expand into export markets.

White acknowledged the regulatory, compliance and commercial challenges faced by financial institutions, while pointing to opportunities for development banks, technology and technical support services to help reduce barriers for smaller enterprises.

The exchange offered an important reminder that investment success cannot be measured solely by large projects or capital flows. Smaller businesses must also be equipped to participate in and benefit from new opportunities.

Making investment a strategic choice

Despite the challenges, the panel was clear that the Caribbean has a compelling investment proposition.

Its geographic position, proximity to major markets, opportunities for nearshoring, expanding renewable energy needs and potential for specialised industries create significant prospects for investors.

Richards-Kennedy identified five priorities for strengthening the region's investment competitiveness: building regional scale, developing investment-ready project pipelines, deepening priority sectors, ensuring predictable policy and positioning resilience as an investment asset.

The task now is to translate those advantages into investable opportunities through stronger institutions, better infrastructure, greater coordination and consistent execution.

As Dukharan concluded, the ultimate measure of success must extend beyond the projects themselves to the progress they create for Caribbean people.

The message emerging from the session was clear: the Caribbean does not simply need more capital. It needs more productive investment, better-prepared projects and stronger systems to ensure that investment delivers lasting economic value.

Watch the full discussion

Explore the insights and perspectives shared during “The Caribbean Investment Scorecard – Where We Stand Today” at CIF 2026.

The session was part of the Caribbean Investment Forum 2026, organised by the Caribbean Export Development Agency in collaboration with the Government of Barbados and the European Union.