The Future of CBI: A New Era of Growth and Development in St. Kitts and Nevis
BASSETERRE, St. Kitts, CMC—Prime Minister Dr. Terrance Drew says St. Kitts-Nevis was “on the brink” of losing its visa-free access to the United Kingdom and the European Union. He announced plans to reform the Citizenship by Investment (CBI) program as part of a new initiative to spur economic growth and development.
Under the program, foreign investors are given citizenship of the Twin Island Federation in return for significantly contributing to the country’s socio-economic development.
In a nationwide radio and television broadcast, Prime Minister Drew said that two years ago, when he assumed office, the CBI program directly contributed 60-70 percent of the country’s revenue.
"We were overly dependent on CBI. Our proverbial economic eggs were all in one basket. Unlike nations that rely on natural resources like oil and gas, which have stable and consistent demand, CBI has never been a guaranteed industry."
Prime Minister Drew was saddened that no nation can genuinely say that citizenships will always be in demand, adding, "The reality is simple: the CBI is vulnerable to international politics and scrutiny."
He recalled that upon entering office, his administration released a statement saying that “our international partners had their eyes squarely on our CBI program” and that the last administration had approved an ill-conceived prison project, resulting “in tens of thousands of citizenships being issued from a single venture.”
Prime Minister Dew said that this put our visa-free access to the UK and the EU in grave jeopardy,” adding, “I want to make this clear today: St Kitts and Nevis was on the brink of losing that precious visa-free access.
"If we had not taken bold, immediate action, we would have lost that privilege. The evidence was overwhelming. This was confirmed, both publicly and privately, by our international partners."
He said that in August 2022, his government faced a stark choice: either continue recklessly exploiting CBI or make tough decisions to secure the country’s long-term future.
"We chose the latter because we were determined to preserve the good name of Saint Kitts and Nevis. We initiated a full investigation into our CBI program and received our first report in October 2022. Shortly after, we commenced a comprehensive legislative review of our CBI regulations."
Prime Minister Drew said he traveled to Dubai in December 2022 to announce major CBI program reforms under the Sustainability and Good Governance banner.
"We also made it clear to the world that St. Kitts and Nevis would lead by example in raising CBI standards. We acted swiftly because we knew what was at stake," he said, noting that since then, the country has joined Antigua and Barbuda, Dominica, Grenada, and St. Lucia in collectively adopting new measures to safeguard the program.
"Today, I stand before you to say that our efforts have borne fruit. The St. Kitts and Nevis CBI programme has been saved. Not only have we re-established it as a leading CBI program in the world, but we have also set a new standard of regional cooperation with our OECS colleagues," he added.
Prime Minister Drew said that in 2019, CBI generated EC$443 million (One EC dollar = US$0.37 cents) for the country, declining to EC$271 million a year later. It increased to EC$543 million in 2021 and EC$669 million the following year, declining slightly to EC$620 million last year.
The government anticipates an economic boom in construction, tourism, agriculture, and sustainability projects over the next two to three years, driven by a pivot from dependency on CBI to sustainable economic expansion and Diversification (SEED).
"This is a fundamental part of Saint Kitts and Nevis’ National Development Planning Framework, a comprehensive guide to the evolution of our economy for the next 15 years," Prime Minister Drew said, adding, "We’ve laid the groundwork for the Sustainable Island State Agenda and the National Development Planning Framework" listing some of what he described as “these transformative projects."
"The opportunities are vast, and they represent a brighter, more sustainable future for all of us.
We have a plan. A boom is coming to St. Kitts and Nevis. We have been planting the SEED for our Sustainable Island State Agenda for the past two years. Now, it is time to water that SEED so the plant of prosperity and sustainability can flourish.
We must aim higher. We must envision a future where every citizen has the chance to survive and thrive—where they aspire to become their best selves and, ultimately, to be self-sustaining.
But he warned that the government alone cannot drive this transformation, and to capitalize on SEED fully, “we need you."
"We need you to commit to diligent work and productivity to embrace innovation and entrepreneurship. We need our diaspora to come home to bring their skills, experience, and passion back to the land of their ancestors.
"We need all hands on deck to seize the opportunities coming our way in construction, tourism, agriculture, and sustainability," he said, adding, "I invite every citizen who is committed to seeing St. Kitts and Nevis rise to join us in nurturing the SEED of our future.
Conclusion
The CBI program has faced significant challenges, but the government is committed to reforming and reinvigorating the program to ensure its long-term sustainability. This new era of growth and development will be driven by a pivot from dependency on CBI to sustainable economic expansion and Diversification, providing a brighter, more sustainable future for the people of St. Kitts and Nevis.
Frequently Asked Questions
- What is the CBI program?
The CBI program is a citizenship-by-investment program that grants foreign investors citizenship of the Twin Island Federation in return for significant contributions to the country’s socio-economic development. - Why was the CBI program facing challenges?
The CBI program faced challenges due to its vulnerability to international politics and scrutiny, as well as the previous administration’s mismanagement. - What are the government’s plans for the CBI program?
The government plans to reform the CBI program to make it more sustainable and attractive to foreign investors, with a focus on sustainable economic expansion and Diversification (SEED). - What are the expected benefits of the CBI program?
The expected benefits include an economic boom in construction, tourism, agriculture, and sustainability projects over the next two to three years, driven by a pivot from dependency on CBI to sustainable economic expansion and Diversification. - How will the government support the CBI program?
The government will support the CBI program by providing a platform for foreign investors to contribute to the country’s socio-economic development, while also ensuring the program’s sustainability and integrity.