THE HAGUE, WILLEMSTAD – The Dutch cabinet plans to establish a new foundation aimed at strengthening food security across the six Caribbean islands of the Kingdom. The proposed entity, Stichting CariFoodFund (CFF), will receive an initial capital injection of 18 million euros.
The plan is outlined in a letter from State Secretary Eddie van Marum of the Ministry of the Interior and Kingdom Relations to the Dutch House of Representatives. The establishment of the foundation will be submitted through the so-called pre-notification procedure under the 2016 Government Accounts Act, giving Parliament 30 days to raise questions before the foundation is formally created.
Reducing Import Dependence
The fund is intended to reduce the heavy reliance on food imports in Aruba, Curaçao, Sint Maarten, Bonaire, Sint Eustatius and Saba. According to the cabinet, the islands’ dependence on imported food has proven particularly vulnerable since the COVID-19 pandemic and amid ongoing geopolitical tensions, especially for fresh products such as fruits, vegetables, dairy, fish and meat.
Revolving Fund Model
CariFoodFund will operate as a revolving fund, meaning the capital will not be spent once, but will be reused through loans that are repaid and reissued. Entrepreneurs active in agriculture, horticulture, livestock farming and fisheries will be able to apply for various loan products, including low-interest loans and subordinated financing.
The Ministry of the Interior and Kingdom Relations will contribute 18 million euros as equity to the foundation. Through partnerships with banks and pension funds, the cabinet aims to significantly increase the fund’s size. Six letters of interest have already been received from financial institutions, and the fund is expected to grow to at least 50 million euros.
Knowledge and Training Component
In addition to financing, the foundation plans to establish an academy focused on knowledge development, training and support for entrepreneurs and government institutions on the islands.
Broader Food Security Budget
The total budget allocated for food security measures amounts to 24 million euros. Of that sum, six million euros is earmarked for subsidies and contributions to local governments for policy development and infrastructure improvements. The creation of the CariFoodFund relates specifically to the first pillar of the program: stimulating entrepreneurship through the revolving fund.
The cabinet states that a deliberate choice was made to create an independent foundation rather than implement the initiative through existing organizations. This structure is intended to attract private financing and allow for more targeted investment in the food production sector.
If the House of Representatives raises no objections, the foundation could begin supporting agricultural entrepreneurs later this year.