Annual trade in goods and services between Africa and the Caribbean could reach up to $1.65bn by 2030, excluding mineral fuels, according to a new report by the International Trade Centre (ITC) and African Export-Import Bank (Afreximbank).
Launched on the sidelines of the Commonwealth Heads of Government Meeting in Antigua and Barbuda, Reshaping Africa-Caribbean Trade: Opportunities for Economic Transformation examines the commercial opportunities between the two regions and the barriers preventing businesses from accessing them.
Despite their historical and cultural ties, Africa and the Caribbean account for only a small share of each other's overall trade, the report finds. It identifies potential for growth across sectors including agribusiness, manufacturing, tourism and the creative economy.
Export opportunities remain untapped
Around 80% of Africa's annual goods export potential to the Caribbean remains untapped, according to the report, pointing to significant scope for growth if trade and investment are actively promoted and facilitated.
The Caribbean's export potential is concentrated in services, with opportunities valued at $481m. Other priority sectors identified in the report include processed food and animal feed, chemicals, minerals and metals, apparel and textiles, leather and footwear, tourism, transport services and creative industries.
The findings draw on trade and export potential analysis, sector assessments and a survey of 1,175 businesses and business support organisations across Africa and the Caribbean.
ITC executive director Pamela Coke-Hamilton said stronger regional ties and investment in value addition would help countries build resilience amid shifts in global trade.
“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.”
Denys Denya, senior executive vice-president at Afreximbank, said the bank was supporting stronger commercial links through financing, trade promotion and payment solutions.
“Africa and the Caribbean must transform a shared history into shared prosperity. With our Caricom office in Barbados, about $1bn in approved transactions and a $5bn regional financing commitment, Afreximbank is advancing this vision through financing, deposit mobilisation under Cendep, business links through the annual Afri-Caribbean Trade and Investment Forum, local-currency payments through Capss and creative-industry collaboration through 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.”
Trade barriers need to be addressed
Businesses continue to face high transport costs, limited direct shipping links, regulatory barriers, restricted access to finance and difficulties identifying trusted commercial partners.
The report argues that stronger economic cooperation should extend beyond traditional trade in goods to include joint investment ventures, digital services, creative industries and tourism.
It recommends improving market intelligence and business matchmaking, expanding access to trade finance and payment solutions, strengthening transport and logistics connections, and supporting the development of sector-specific value chains.
It also calls for greater regulatory cooperation and improved market access, alongside stronger partnerships between business support organisations.
The full report, Reshaping Africa-Caribbean Trade: Opportunities for Economic Transformation, is available here.
