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Good practice Imported

Grenada's Citizenship by Investment Programme — Funding a National Transformation Fund

Grenada · St. George's · See the Grenada profile · See the St. George's profile

Evidence: Observational / pre–post Top 74% 57/100 · Ask Evidence Copilot about this practice

Since 2013, Grenada's Citizenship by Investment Programme has raised FDI averaging about 5% of GDP a year, funding a National Transformation Fund for infrastructure and debt reduction — though the IMF warns the revenue stream is now shrinking as scrutiny tightens.

~5 % of GDP/year
CBI revenue as share of GDP (2013–present)
14.1 % of GDP
Foreign direct investment as share of GDP (2022)
Grenada's Citizenship by Investment Programme — Funding a National Transformation Fund

Details

Maturity
Established
Promoter
Government of Grenada — Citizenship by Investment Unit / National Transformation Fund
Period
2013-present
Keywords
citizenship by investment, foreign direct investment, fiscal policy, national transformation fund, real estate investment

Context

Grenada launched its Citizenship by Investment (CBI) Programme in 2013, following the model pioneered by neighbouring St Kitts and Nevis. Applicants obtain Grenadian citizenship either through a non-refundable donation to the government's National Transformation Fund or by investing in an approved real-estate project.

Results

CBI revenues have averaged roughly 5% of GDP annually since the programme's launch, according to IMF surveillance data. In 2022, foreign direct investment reached 14.1% of GDP, driven in part by CBI inflows. The government has used Fund proceeds to pay down budgetary arrears, build fiscal buffers, finance infrastructure projects, and pay off IMF loans directly with CBI revenue.

Conclusions

The IMF's February 2025 Article IV consultation is explicit that this is not a stable, permanent revenue base: Grenada has stopped accepting applications from Russian nationals, and other CBI jurisdictions are tightening due-diligence scrutiny, both of which the Fund projects will reduce future inflows.

Implementation
Indicative cost
Low (< €50k)
Time to results
Long (> 3 years)
Staffing & skills
Government of Grenada — Citizenship by Investment Unit / National Transformation Fund

Conditions for success

  • proceeds ring-fenced into a dedicated National Transformation Fund for infrastructure and debt reduction

Common failure modes

  • IMF projects declining revenue after Grenada stopped accepting Russian applicants and peer CBI jurisdictions tightened due diligence

Commonly funded by

Own resources / municipal budget

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Data sources

Where this practice's information was retrieved from, and when.

Attachments

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