During the annual meetings of the International Monetary Fund (IMF) and the World Bank in Washington, D.C., this October, Belize’s delegation was led by the Honorable Christopher Coye, Minister of State in the Ministry of Finance. The Belizean delegation is anticipating closing a loan with the World Bank to finance renewable energy projects. This initiative is part of a broader plan to attract new investments to Belize and take advantage of trends such as nearshoring. International financial institutions in Belize, like Caye International Bank (CIB), believe the country has the potential to become a trade finance hub due to its strategic location in Central America.
In the meetings held from October 21 to October 26, the loan discussed would finance approximately half of a $60 million project for battery energy storage, with the remainder coming from climate finance, according to Coye. He noted that this financing would build on a $77 million loan facility from the Saudi Fund for Development, which was agreed upon in August 2023 for a 60-megawatt solar energy facility. Coye added that the loans are part of Belize’s focus on green nearshoring, which involves transferring business operations to countries closer to the United States market.
“As we move toward energy independence, it will open up more opportunities to engage in other sectors that require more energy,” Coye stated. “Developing the energy sector is critical for us to further diversify our economy.” The country’s economy is on the rise, with several sectors, including Business Process Outsourcing (BPO), expanding. With the increase in new businesses, Belize’s Gross Domestic Product is expected to continue growing by 10.5% through 2025.
Another financial boom in Belize is linked to the growth of tourism. CIB President Luigi Wewege noted that the tourism sector has benefited from strategic improvements in infrastructure and marketing. He highlighted that Belize has become a significant center for Business Process Outsourcing (BPO), which has expanded tenfold since 2019 and now accounts for 10% of employment in the country. Wewege pointed out that the tourism and BPO sectors have also driven remarkable growth in the construction industry, leading to new investments in hotels and commercial real estate projects.
Coye and Wewege believe there is an opportunity to accelerate economic integration within Central America and Mexico. They see Belize as a strong hub for the region, mainly due to its significant renewable energy capacity, which could allow the country to export energy to neighboring nations, including Mexico. Wewege concluded by highlighting Belize’s great potential, noting a growing interest in facilitating cross-border commerce and trade finance. This could enable Belize to attract foreign direct investment, foster financial innovation, and enhance its role in the regional supply chain.
