T&T’s ongoing foreign exchange (forex) shortage, while presenting immediate challenges like delayed payments and price fluctuations, can be strategically mitigated by shifting procurement focus toward the domestic economy.
This was the recommendation made by Ben Farrell, global CEO of the Chartered Institute of Procurement and Supply (CIPS), in an interview by CNC3 anchor, Ryan Bachoo, for The Big Interview on Wednesday.
Farrell acknowledged that a shortage of forex poses a significant difficulty for procurement decisions in both the public and private sectors, leading to common problems such as later payments and volatility due to fluctuating international prices.
However, he framed the challenge as an opportunity to adopt a new, more resilient economic model.
Asked how does a shortage of forex in this country affect procurement decisions in the private and public sectors, Farrell said, “I can see why that would be a challenge and a typical response you might get, you know, later payment and fluctuation in prices. So, this is a challenge...You’ve seen instances, in response, of more local sourcing or a deliberate strategy of driving the domestic economy and creating opportunity here in a less pervasive international supply chain.
“So, there are opportunities to look at this rather differently, I think. So, my encouragement would be, thinking about how particularly in the government, for example, that they can create a dependency on the national economy as opposed to the international economy through their deliberate policy. So, then you’re out of harm’s way from the currency fluctuations to a greater extent,” Farrell explained.
He also stressed that procurement must be viewed as a “hugely strong economic lever” and not merely an administrative function, particularly amid current global shocks like geopolitical tensions, climate change and supply chain disruptions.
The announcement coincided with the region’s first-ever CIPS Caribbean conference which took place at the Hyatt Regency last week, signalling a major push to professionalise and leverage procurement strategy for national and regional prosperity.
Farrell firmly believes the region is at a critical juncture where robust procurement strategies can unlock economic growth.
Farrell noted that CIPS, which has existed since 1932, is responding to a global environment where trade is highly interwoven and subject to frequent shocks.
He said that governments, as the largest buyers, could use public procurement strategically to diversify economies, moving beyond reliance on traditional sectors like oil and gas, such as in T&T. Farrell noted CIPS has helped create national procurement strategies in countries like the UK, UAE, and Nigeria, demonstrating how procurement could be a “strong economic tool for prosperity” rather than an administrative burden.
“And what’s emerged from that is the opportunity to drive national prosperity through strong procurement strategies. So, sometimes I think that procurement has been seen as an administrative function, securing contracts for the future. But actually, it’s a hugely strong economic lever for nations and both the private and public sectors.
“So, we want to shout as loudly as possible that the effective employment of trained, competent procurement supply chain professionals can change the dynamic of economies. So, that’s what we’re about, and that’s what we want to be able to come here and contribute,” Farrell said.
Addressing the persistent supply chain disruptions caused by geopolitical factors and lingering effects of the pandemic, Farrell emphasised two core lessons:
• Adaptability: The most important emerging skill is the ability to respond quickly and proficiently to continually changing circumstances; and
• Resilience: Strategies like nearshoring (moving supply chains closer) and increasing local content are vital for building more resilient supply chains.
The key to T&T successfully navigating the challenges of the modern global shipping environment—including issues faced by the port of Port-of-Spain—lies in a greater commitment to regional collaboration and a Caribbean-wide resilience strategy, Farrell advised.
When asked how this country could manoeuvre within a global system highly dependent on shipping, particularly given local infrastructure challenges, Farrell pointed away from specific local issues and towards a broader, more strategic solution.
“What I have been really encouraged by when I’ve been in other regions and continents is the level of collaboration across regions to mitigate risks...We have seen some of our branches around the world collaborating in response to crises and situations where, actually to mutual benefit, great knowledge and best practices are quickly shared,” he said.
Farrell also underscored that procurement must be recognised as the single most powerful tool nations possess for tackling the climate crisis and transitioning to a low-carbon economy.
He dismissed the idea that procurement and sustainability are separate issues stating, “I don’t believe there is unsustainable procurement. There is sustainable procurement and at the heart of procurement it needs to create a sustainable environment.”
Farrell also emphasised that countries like T&T, Guyana (where CIPS already has a branch) and Suriname could leverage strategic purchasing to reduce their carbon footprint and ensure a sustainable future for the regional block.
“We all know the climate challenge that we’re facing, so we are seeing, increasingly, organisations respond to this by being conscious to move away from the notion that financial value is the pre-eminent condition which you make your decisions on, to a much wider context which would be what is the best value in the sense of the impact that would have on the environment as well.
“So consciously thinking of procurement as the access to a sustainable environment as well, and us, through good procurement, creating a world that we want to live in as opposed to the world being imposed upon us, and these are the great strategic choices, and if you think that the government of any nation, and particularly here actually, is the single biggest buyer of anything, and so really the government can take an amazing lead in making really strong strategic choices about responding to the climate challenge in an environmental way,” he further explained.
Recognising that organisations need clear guidance to act, CIPS is prioritising the development of accessible frameworks.
Farrell noted that CIPS would be heavily concentrating in 2026 on efforts to “clarify, clear up, and make simple the frameworks for responding to the environmental challenges.”
By embedding environmental and climate goals into procurement policy, the Caribbean region could turn its purchasing power into a critical driver of the low-carbon transition, Farrell said.
