Trade between Africa and the Caribbean could reach $1.65 billion annually by 2030, as both regions explore opportunities in agribusiness, manufacturing, services and the creative economy.
A new report by the International Trade Centre (ITC) and the African Export-Import Bank (Afreximbank) identifies significant untapped trade potential, but warns that transportation costs, limited shipping connections and regulatory barriers continue to restrict commercial growth.
Titled Reshaping Africa-Caribbean Trade: Opportunities for Economic Transformation, the report was launched during the Commonwealth Heads of Government Meeting in Antigua and Barbuda.
Agribusiness Offers Major Trade Opportunities
The report identifies agribusiness as one of the sectors with potential to strengthen commercial relations between the two regions.
Opportunities include processed foods, animal feed, chemicals, minerals, metals, textiles, leather products and footwear.
Approximately 80 per cent of Africa’s annual goods export potential to the Caribbean remains untapped, highlighting opportunities for African producers and exporters to access new markets.
Caribbean businesses also have opportunities to expand exports, particularly in services, where potential is estimated at $481 million.
Tourism, transport, digital services and creative industries are among the areas identified for further cooperation.
Afreximbank Backs Stronger Commercial Relations
ITC Executive Director Pamela Coke-Hamilton said stronger regional partnerships and investment in value addition were increasingly important amid uncertainty in global trade.
Afreximbank Senior Executive Vice President Denys Denya also emphasised the need to translate historical and cultural connections into stronger commercial relationships.
The bank has established a CARICOM office in Barbados, approved approximately $1 billion in transactions and committed $5 billion in regional financing to support trade and investment.
Initiatives such as the Afri-Caribbean Trade and Investment Forum and the Caribbean and African Payment and Settlement System are intended to improve business connections and facilitate transactions.
Logistics and Financing Remain Major Challenges
Despite the opportunities, businesses continue to face high transportation costs, limited direct shipping routes, regulatory difficulties and inadequate access to finance.
The report recommends stronger logistics connections, improved market information, expanded trade financing and better regulatory cooperation.
For African agribusinesses, stronger access to Caribbean markets could create opportunities to expand exports, develop value-added products and diversify international trading relationships.
Achieving the $1.65 billion annual trade target will depend on turning these opportunities into practical business partnerships, improving logistics and ensuring that African and Caribbean producers can compete effectively in each other’s markets.