![\"Blue](\"https:\/\/www.bahamastradeinfo.gov.bs\/cms\/wp-content\/uploads\/2025\/08\/Screenshot-2025-08-20-123049.png\")
The blue economy accounts for about 21% of GDP<\/h3>\nThe blue economy accounts for about 21% of GDP<\/h3>\nThe government yesterday signed a $30m loan agreement with the Inter-American Development Bank (IDB) to strengthen small and medium-sized enterprises (SMEs) operating in the country\u2019s blue economy.<\/p>\n
The initiative, titled Local Sustainability and Development in the Blue Economy of The Bahamas, is designed to drive innovation, bolster climate resilience, and expand marine-related industries.<\/p>\n
IDB country representative Shirley Gayle said the loan was long awaited, calling it essential for a nation where \u201cthe salt life\u2026 is in the DNA of the Bahamian people.\u201d She noted that the blue economy already accounts for about 21 percent of the gross domestic product, with indirect contributions rising as high as 50 percent.<\/p>\n
The programme will provide direct support to micro, small, and medium operators in marine-based sectors.<\/p>\n
\u201cEmployability not just in terms of persons working for someone else, but persons being able to generate their own employment,\u201d Ms Gayle said.<\/p>\n
Prime Minister Philip Davis said the project will deliver critical infrastructure and financing, particularly in the Family Islands.<\/p>\n
\u201cThis project reflects my administration\u2019s recognition of the valuable opportunities within the blue economy,\u201d he said. \u201cIt provides critical investment opportunities for local entrepreneurs. We will need private sector innovators to play a pivotal role in growing the sector.\u201d<\/p>\n
\u201cIt is past time that we fully leverage these resources in innovative and sustainable ways for the benefit of our people,\u201d Mr Davis added.<\/p>\n
He confirmed the Bahamas Agriculture and Marine Science Institute (BAMSI) will play a central role in executing the programme and improving its curriculum with project resources.<\/p>\n
According to Mr Davis, the loan will be distributed across three components. The first will allocate $17.7m to support SMEs in industries such as tourism, aquaculture, and agriculture. The second will provide $5.5m to strengthen BAMSI\u2019s curriculum and institutional development. The third will direct $4.77m toward climate change mitigation initiatives.<\/p>\n
Minister of Economic Affairs Michael Halkitis explained that the government will provide the remaining financing required for the loan. He said some components should be operational by January.<\/p>\n
The loan carries a five-year execution period, with possible extensions depending on project progress. Ms Gayle said oversight will be tied to a formal accountability system. \u201cAn integral part of that is what we call the results matrix. It outlines the objectives, how the activities contribute to them, and the milestones that must be achieved,\u201d she said.<\/p>\n
The Ministry of Economic Affairs will serve as the executing agency, working alongside an IDB technical team. Other agencies, including the Ministry of Finance, the Ministry of Tourism and Aviation, and the Bahamas Development Bank, will also be involved.<\/p>\n
Officials said operational data and disbursement schedules will be published through IDB channels once the programme officially launches.<\/p>\n