Basseterre, St. Kitts, March 3, 2025 (PMO)— “The planned establishment of a Sovereign Wealth Fund (SWF) is welcome” —This endorsement is an excerpt from the recently released 2025 Article IV Mission report published by the International Monetary Fund (IMF) on February 26th, 2025.
This endorsement reflects the government’s dedication to prudent fiscal management and the safeguarding of national wealth for future generations.
The SWF is designed to absorb any upside in projected Citizenship by Investment (CBI) revenue, reduce the impact of volatile and uncertain CBI revenue on the budget, and help create fiscal buffers against natural disasters. The IMF’s support highlights the strategic importance of the SWF in enhancing our country’s financial resilience and ensuring long-term economic stability.
Prime Minister Hon. Dr. Terrance Drew has been a steadfast advocate for the establishment of the SWF. In December 2022, just months after taking up office, he articulated his government’s vision, stating, “The Government’s goal is to create a Sovereign Wealth Fund which will be responsibly managed by high-level professionals. This Fund will be used to safely invest in international markets and industries over the long term, and we will ensure by legislation that the fund can only be tapped into for rainy days and used with prudent financial practices.”
Further emphasizing the fund’s role in national development, Prime Minister Drew noted, “The SWF will serve as a financial pillar, ensuring that the prosperity generated today benefits not only the present population but also future generations. It is a testament to our commitment to sustainable and inclusive growth.”
Accordingly, the legislative framework for the SWF has been meticulously crafted in collaboration with international financial experts, including the IMF. This partnership ensures that the fund adheres to global best practices in governance, transparency, and accountability. The Prime Minister is poised to table the framework of the fund in parliament imminently, marking a significant step towards its operationalization.
The successful implementation of the SWF is anticipated to fortify St. Kitts and Nevis’s economic resilience, providing a stable foundation for sustained growth and development in the years to come.
