Huge African and Caribbean trade potential can be unlocked, study finds

Annual trade in goods and services between Africa and the Caribbean could reach up to US$1.65-billion by 2030, excluding mineral fuels, according to a new report by the International Trade Centre (ITC) and African Export-Import Bank (Afreximbank) on the sidelines of the recent Commonwealth Heads of Government Meeting in Antigua and Barbuda. 

The report, titled Reshaping Africa-Caribbean Trade: Opportunities for Economic Transformation, finds that while Africa and the Caribbean share deep historical and cultural links, trade between the two regions continues to represent only a small share of each region’s overall trade, despite complementarities across sectors ranging from agribusiness and manufacturing to services and the creative economy. 

It notes that around 80% of Africa’s annual goods export potential to the Caribbean remains untapped, with significant opportunities for export growth if trade and investment is actively promoted and facilitated. 

Caribbean export potential lies in the services sector, reaching $481-million. The report identifies business opportunities across several priority sectors – including processed food and animal feed, chemicals, minerals and metals, apparel and textiles, leather and footwear, tourism, transport services and creative industries. 

These findings are based on trade and export potential analysis, detailed sector assessments and a survey of 1,175 businesses and business support organisations across Africa and the Caribbean. 

Strengthen regional ties and invest in value addition 

ITC Executive Director Pamela Coke-Hamilton, in launching the report, said: “At a time of major shifts in global trade, countries need to strengthen regional ties and invest in value addition, to build resilience.  

“We know the major trade opportunities between Africa and the Caribbean – and now we can focus on helping businesses take advantage of those opportunities through better market intelligence, improved logistics and greater access to finance.” 

Commenting on the report, Denys Denya, Senior Executive Vice President at Afreximbank, said: “Africa and the Caribbean must transform a shared history into shared prosperity. With our Caribbean Community (CARICOM) office in Barbados, about $1-billion in approved transactions and a $5-billion regional financing commitment, Afreximbank is advancing this vision through financing, deposit mobilisation under the Caribbean Depository and Enterprise Programme (CENDEP), business links through the annual Afri-Caribbean Trade and Investment Forum, local-currency payments through the CARICOM Payment and Settlement System (CAPSS) and creative-industry collaboration through the Creative Africa Nexus (CANEX).  

“This report offers a practical roadmap to turn untapped potential into bankable opportunities across agribusiness, manufacturing, tourism and the creative economy. Through targeted financing, stronger transport and logistics links and strategic partnerships, we can build a Global Africa connected by heritage, trade, investment and shared opportunity.” 

The report finds that businesses continue to face significant challenges – including high transport costs, limited direct shipping links, regulatory barriers, limited access to finance and difficulties in identifying trusted commercial partners.  

It highlights that future economic cooperation should extend beyond traditional trade in goods, including through joint investment ventures, digital services, creative industries and tourism.  

It also calls for targeted action to improve market intelligence and business matchmaking; expand access to trade finance and payment solutions; strengthen transport and logistics connectivity; support sector-specific value chain development; improve regulatory cooperation and market access; and foster stronger partnerships among business support organisations. 

You can access the full report here.