The Caribbean Development Bank (CDB) has committed a $100,000 grant through its 11th Special Development Fund to the CARICOM Private Sector Organization Inc. (CPSO), launching a landmark feasibility study to explore the creation of a unified regional stock exchange under the CARICOM Single Market and Economy (CSME). This grant forms part of a broader $324,700 Phase One investment in the initiative, with the Inter-American Development Bank (IDB) joining CDB as a supporting partner.
Currently, multiple national stock exchanges operate independently across the Caribbean, leaving regional capital markets fragmented. This fragmentation creates unnecessary barriers for both investors and businesses looking to expand cross-border activity, limiting economic upside for the entire region. Proponents of a unified exchange argue that integration would unlock a range of benefits, from attracting larger volumes of foreign investment and increasing overall market liquidity to driving down the cost of capital for local enterprises. In particular, small and medium-sized businesses (MSMEs) — which form the backbone of most Caribbean national economies — stand to gain greatly from expanded access to affordable financing that a connected regional market would provide.
The upcoming study will not only assess whether a regional exchange is a viable venture, but also evaluate potential structural models that could work for the Caribbean’s unique economic context. Research teams will examine four core focus areas: existing demand for integrated capital market services across all CARICOM member states, the legal and regulatory adjustments required to enable cross-border market integration, successful models for regional exchanges operating in other parts of the world, and input from key stakeholders across both the public and private sectors. A key priority for the assessment is also identifying strategies to expand capital access for historically underserved groups, including women-led enterprises, young entrepreneurs, and marginalized communities that often face disproportionate barriers to securing financing.
Lisa Harding, Division Chief of CDB’s Private Sector Division, emphasized that deep, inclusive financial markets are foundational to the Caribbean’s long-term economic trajectory. “The Caribbean’s long-term growth depends on our ability to create stronger, more accessible financial markets that support entrepreneurship, innovation and investment,” Harding said. She added that the feasibility study will deliver the evidence-based analysis needed to determine how a regional stock exchange can expand access to capital, accelerate private sector development, and advance the broader goal of regional economic integration. “It also reflects CDB’s commitment to building institutions and financial systems that foster inclusive and sustainable growth across our member countries,” Harding noted.
Once the first-phase assessment is complete, all findings will be presented at a dedicated regional symposium, where policymakers, financial regulators, private sector leaders, and international development partners will gather to review recommendations and chart a path forward for Caribbean capital market integration. The initiative aligns with CDB’s core institutional priorities: strengthening regional financial systems, boosting private sector growth, building economic resilience, and deepening cooperation and integration across CARICOM member states.