The country, which is made up of more than 700 islands and cays, relies heavily on tourism and inter-island commerce
Bridgetown, Barbados | THE INDEPENDENT | Africa’s multilateral lender, African Export-Import Bank, has approved a $100million financing facility to support the rehabilitation and construction of more than 200 miles of roads across The Bahamas, in a move aimed at strengthening the country’s transport infrastructure and boosting economic activity.
The funding has been extended to Bahamas Striping Group of Companies Ltd (BSGC), a local infrastructure firm, under a receivables discounting arrangement tied to government-approved road contracts. The agreement was formalised under a broader framework deal signed with the Government of The Bahamas on the sidelines of the 48th Conference of Heads of Government of the Caribbean Community (Caricom), held in Bridgetown, Barbados, in 2025.
Under the arrangement, Afreximbank will provide advance financing against certified works completed by BSGC. These include asphalt paving, road striping, safety upgrades and routine maintenance across several islands in the archipelago.
The Bahamas, which is made up of more than 700 islands and cays, relies heavily on tourism and inter-island commerce. Road networks play a key role in connecting airports, ports, hotels and residential communities. Officials say modernising this infrastructure is essential to improving safety and maintaining the country’s competitiveness as a regional tourism and trade hub.
Okechukwu Ihejirika, Acting Chief Operating Officer of Afreximbank’s Caricom office, said the facility reflects the bank’s commitment to supporting infrastructure projects in what it describes as the “Global Africa” partnership — an initiative aimed at strengthening economic ties between Africa and the Caribbean.
“This facility represents an innovative approach to structured finance in cross-regional partnerships,” Ihejirika said. “By enabling these extensive road rehabilitation works, we are contributing to sustainable development and enhanced economic opportunities.”
He added that the transaction builds on discussions held during the bank’s 2024 Annual Meetings and the AfriCaribbean Trade and Investment Forum in Nassau, where deeper cooperation between African and Caribbean economies was encouraged.
Receivables discounting
Receivables discounting, sometimes referred to as factoring, allows companies to access funds based on payments due from clients — in this case, the government — rather than waiting for the full payment cycle to conclude. Supporters say such arrangements can help contractors manage cash flow, pay workers on time and avoid delays in project delivery.
Dominic Sturrup, Executive Chairman of BSGC, welcomed the financing, describing it as a significant step for the company and its partners.
“We are grateful to Afreximbank for standing with us through every stage of the process,” he said. “This transaction strengthens our ability to execute major projects, support our subcontractors and vendors, and scale opportunities.”
Faster project execution
Atario Mitchell, President of BSGC, said the facility would allow the company to meet financial obligations, including paying employees and purchasing materials, while expanding operations across multiple islands.
“This gives us the ability to move faster, plan better and execute with greater reliability,” he said.
BSGC, founded in 2010, is an indigenous Bahamian-owned company. It has completed more than 200 projects across Nassau, Exuma and Eleuthera and employs over 300 people, including subcontractors.
The road works financed under the agreement are expected to improve safety, ease transport and support local businesses that depend on reliable infrastructure. Government officials say improved connectivity can also enhance access to schools, healthcare facilities and commercial centres, particularly in more remote communities.
While Afreximbank’s core mandate has historically focused on trade finance within Africa, the bank has in recent years expanded its activities in the Caribbean. The Bahamas transaction is part of a broader effort to deepen financial and investment links between the two regions.
