The World Bank has authorised a US$24 million Growth Coverage Credit score to assist Dominica strengthen its home revenues, increase monetary sector resilience, and ramp up catastrophe preparedness — all whereas defending its wealthy biodiversity, officers introduced in the present day.
The brand new financing, a part of the Dominica Strengthening Fiscal and Local weather Resilience Programmatic Growth Coverage Credit score, goals to help the island’s ongoing efforts to get better from years of climate-related setbacks and construct a extra sustainable future. Often called the “Nature Island of the Caribbean,” Dominica depends closely on its pure ecosystems to gas its tourism financial system, however repeated disasters — from Tropical Storm Erika in 2015 to Hurricane Maria in 2017, and most not too long ago Hurricane Beryl in 2024 — have severely impacted its growth and strained public funds. Public debt, which soared to 118.2% of GDP in 2020, stays excessive at 103% as of 2024.
“Dominica faces the twin problem of managing excessive catastrophe vulnerability and financial fragility. This initiative helps strategic coverage reforms which might be very important for constructing resilience, producing sustainable income, and defending Dominica’s extraordinary pure heritage,” stated Lilia Burunciuc, World Financial institution Division Director for the Caribbean.
Key reforms below this system embody overhauling excise taxes — levies on gadgets like gas, alcohol, and sugary drinks — to spice up income, lower emissions, and enhance public well being outcomes. It additionally strengthens oversight of main monetary establishments, such because the Dominica Agricultural Industrial and Growth Financial institution and native credit score unions, aiming to stabilize the nation’s monetary system.
The plan goes past fiscal reforms. Dominica is setting a worldwide milestone by establishing the world’s first marine protected space devoted particularly to sperm whales. By 2027, income from “swim-with-the-whales” permits is projected to rise by 177%, supporting conservation efforts, eco-tourism, and native livelihoods. Moreover, the federal government is rolling out a brand new risk-based asset administration system to prioritize and shield public infrastructure, aiming to stock and assess 40% of public fastened belongings for catastrophe danger by 2027.
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The initiative aligns carefully with Dominica’s Nationwide Resilience Growth Technique 2030 and the Local weather Resilience and Restoration Plan 2020–2030. It was developed by broad session with nationwide stakeholders, the Caribbean Growth Financial institution, and the Worldwide Financial Fund.
Funding comes from the Worldwide Growth Affiliation (IDA), the World Financial institution’s arm targeted on supporting low-income and small island nations. Not like conventional undertaking funding, Growth Coverage Credit present direct finances help to governments which have already carried out agreed-upon reforms, giving Dominica a well timed increase to proceed investing in its resilience and long-term prosperity.
