US$6.3 million to help Dominican businesses turn sargassum into opportunity
Santo Domingo.- A US$6.3 million financing and technical assistance package will support Dominican small businesses developing projects focused on the collection, transportation, storage and sustainable use of sargassum.
The initiative, promoted by the European Investment Bank (EIB), the European Union and Banco de Ahorro y Crédito Adopem, seeks to expand access to financing for micro, small and medium-sized enterprises (MSMEs) involved in the emerging sargassum value chain.
Of the total, US$5.1 million will be provided by EIB Global as a loan to Banco Adopem, backed by a guarantee from the European Commission’s European Fund for Sustainable Development Plus (EFSD+), subject to approval by the Dominican Superintendency of Banks. The funds will provide longer-term financing to small businesses that often face limited access to credit.
An additional US$1.2 million grant from the European Commission will fund technical assistance for Banco Adopem and other Dominican financial institutions. The support will help identify and prepare viable projects, develop financing solutions and strengthen technical expertise, environmental safeguards and regulatory compliance.
The package is designed to shift the response to sargassum from emergency cleanup toward a safe, sustainable and commercially viable value chain, creating opportunities for local businesses and jobs while strengthening coastal communities’ resilience to climate change.
Regional sargassum collection target
The operation will contribute to a regional goal of collecting 660,000 tons of sargassum by 2027, including 150,000 tons in the Dominican Republic. It also seeks to encourage commercially viable uses for the collected biomass.
Sargassum influxes have become a recurring environmental and economic challenge across the Caribbean, affecting coastal communities, tourism, fisheries and marine ecosystems. At the same time, collection, transport, drying, storage and processing could create new business opportunities if health, safety and environmental risks are properly managed.
The financing package was announced during the Fourth Global Gateway EU-Caribbean Conference on Sargassum in Cancún, Mexico, as part of the EU’s “Changing the Course” initiative, which promotes sustainable practices and economic opportunities around the sargassum value chain.
