Martinique

Located in the middle of the Antilles archipelago, Martinique is rich in exceptional national heritage and boasts a strong economy. However, it needs to reduce ongoing social and territorial inequalities and find new sources of growth. As a longstanding partner, AFD supports the island's transition towards a more inclusive and sustainable development model.

Context

Martinique, which is located in the middle of the Lesser Antilles archipelago, nearly 7,000 km from France, is directly exposed to the risk of earthquakes and is in the direct path of cyclones. With over 400,000 inhabitants and an area of 1,128 km2, it stands out from the rest of the French overseas territories due to its high population density.

The island, which became an official territorial collectivity on 1 January 2016, is rich with exceptional natural heritage and highly diverse ecosystems. Both tourism and the economy rely on these assets – during the 2016/2017 season, the island welcomed 800,000 visitors, thus confirming the attractiveness of Martinique. This natural capital needs to be preserved, especially against the backdrop of climate change.

However, despite a surge in activity in 2015, Martinique is still affected by economic and social inequality. With high unemployment (18%), the cost of living has not dropped and job insecurity is still an issue. Its population is also ageing: even though it was one of France's youngest populations less than ten years ago, it is expected to become one of its oldest by 2040.

As a long-standing partner of Martinique for over 70 years, AFD supports its ongoing social and territorial developments and contributes to the creation of a new, more inclusive economic model. We do this by working towards boosting Martinique's influence and integration into the Caribbean region. To do this, we use various tools dedicated to both the public (e.g. loans, support and advice) and private sectors (e.g. loans to companies, guarantee funds, the Bpifrance offer).

AFD's Martinique office is directly attached to the Atlantic Ocean regional office.

Our approach

"AFD and Martinique: reducing inequality and creating a sustainable growth model"

AFD is the preferred partner of the Martinique local authorities, which are striving to improve the island’s resilience to natural disasters. In the framework of the French West Indies Earthquake Plan (Plan séisme Antilles – PSA), it offers financial support (via subsidized long-term loans and pre-financing loans for subsidies from Europe, France and the territorial collectivity of Martinique), and engineering support, from the design phase through to the acceptance of projects, via the resources of the Overseas Fund (Fonds Outre-mer). Several towns, such as Le Marin, have already benefited from these schemes, which are helping to bring schools into compliance with seismic construction standards.

Despite being a biodiversity hotspot, Martinique is no less exposed to climate disruption and various forms of pollution. AFD is supporting initiatives to preserve marine and terrestrial biodiversity and protect coastal areas (by slowing down erosion of the coastline, effectively combating the accumulation of sargassum weed on beaches or contributing to its processing, promoting nature-based solutions, for example). Action by AFD is contributing to the sustainable management of natural resources – first and foremost, drinking water.

Over the years, AFD has become a leading provider of funds in renewable energy in Martinique. It has taken part in the financing of key solar, wind and biomass projects on the island in order to help develop a lower-carbon energy mix. It will be maintaining this support, with the emphasis on energy restraint, energy efficiency, and on increasing the island’s renewable energy capacities.

We are also supporting initiatives by the local authorities and health institutions in this sector. Projects to promote the energy efficiency of buildings and of public lighting, or even to develop solutions to generate sustainable energy, therefore receive the highest level of financial support.

Martinique is facing a major demographic challenge linked to the ageing of its population, combined with a lack of care facilities and an existing offering that can be inadequate, even dilapidated. Alongside local players in the sector, AFD has undertaken to improve health services and care facilities, and since 2014, four residential homes for the elderly have been financed in this way.

AFD has supported the regional healthcare agency (ARS) in its policy to improve and rationalize healthcare in a run-down health sector that depends on state subsidies. It has also supported Martinique university hospital (CHUM) – the keystone of the regional health plan – as well as three local hospitals. This support will be continued, in conjunction with the SEGUR Fund and the recovery plan managed by the ARS.
In addition, we are helping to improve care for the disabled by providing financial support for the investment projects of medico-social associations.

As for young people, AFD is rolling out its Sport and Development strategy in Martinique, which includes improving the island’s network of sports facilities.

AFD supports the waste collection and processing sector and helps public and institutional partners to develop a sustainable strategy for the island. It is also a partner of the Grand Port Maritime de La Martinique. AFD is supporting its energy transition project, as well as its research on adapting to climate change.

AFD also promotes sectors of the green economy that are based on the sustainable development of natural resources, with emphasis on sustainable urban development and improving the efficiency of drinking water and sewerage services. In addition to direct funding, AFD can also provide guarantees, particularly in the agricultural and fisheries sectors.

To develop connectivity on land, air and sea, we are helping the major territorial players implement their strategies to improve and extend public transportation, and increase the resilience of transport networks (roads, ports, airport etc.) to the effects of climate change.