Africa and the Caribbean could unlock up to US$1.65 billion in annual trade in goods and services by 2030, as a new report highlights significant opportunities to expand commercial ties between the two regions.
The report, published by the International Trade Centre (ITC) and African Export-Import Bank (Afreximbank), estimates that about 80% of Africa’s export potential to the Caribbean remains untapped.
Released on the sidelines of the Commonwealth Heads of Government Meeting in Antigua and Barbuda, the study identifies opportunities across processed foods, animal feed, chemicals, minerals and metals, textiles, apparel, leather, footwear, tourism, transport services and creative industries.
African exporters have significant room to grow
The report estimates that Africa could increase its annual exports to the Caribbean to US$539 million by 2030. However, only about 20% of this potential is currently being realised.
By comparison, Caribbean goods exports to Africa could reach US$499 million annually, with approximately 82% of that potential already achieved.
South Africa, Algeria and Nigeria account for almost 60% of Africa’s exports to the Caribbean. The Dominican Republic, Cuba and Jamaica are among the region’s leading destinations for African goods.
On the other side of the trade relationship, the Bahamas and Trinidad and Tobago account for most Caribbean exports to Africa, with Morocco, Zimbabwe and Côte d’Ivoire among the main African destinations.
The findings suggest that the limited trade between the regions is not primarily due to a lack of complementary products and demand. Instead, exporters face barriers involving market access, transport connectivity, limited business information and institutional constraints.
High freight costs remain a major obstacle
Transport expenses are among the biggest challenges to expanding trade across the Atlantic.
The report estimates that freight costs amount to 19.8% of the value of African exports to the Caribbean, while Caribbean exports to Africa face an estimated freight rate of 21.8%.
For African exporters, the high costs partly reflect the shipment of bulky, relatively low-value mineral and metal products. Caribbean businesses, meanwhile, face structural transport challenges, including limited direct shipping routes, low cargo volumes and weak transport integration.
Tariff barriers also affect trade. Neither region benefits from preferential market access to the other, leaving African exporters exposed to high duties on horticultural and other agricultural products, as well as selected manufactured goods. Caribbean exporters encounter similar barriers in several African agricultural and manufacturing markets.
Diversification creates new opportunities
The report comes amid growing pressure on African economies to diversify export destinations and reduce reliance on traditional trading partners.
Its release coincided with renewed debate in South Africa over access to alternative markets following Washington’s decision to exclude the country from the African Growth and Opportunity Act (AGOA) preferential trade programme, effective January 1.
The study argues that geopolitical tensions, supply-chain disruptions, climate-related shocks and concerns about food and energy security have made diversified trade partnerships increasingly important.
For African businesses, the Caribbean could offer an additional market for products and services, provided exporters can overcome barriers that have limited commercial engagement.
Better market access and business support needed
The ITC and Afreximbank report recommends targeted measures to help African companies turn export potential into actual trade.
These include improving access to market intelligence, strengthening commercial networks, reducing compliance costs and addressing transport and institutional constraints.
Because the Caribbean has already realised a larger share of its export potential to Africa, the report suggests that interventions on that side should concentrate on specific products and markets rather than broad export-promotion campaigns.
Unlocking the opportunity will require governments, financial institutions and private-sector organisations to improve trade facilitation, connectivity and investment links.
The projected US$1.65 billion opportunity demonstrates the potential value of stronger Africa-Caribbean economic relations. However, turning that potential into sustained trade will depend on reducing the practical costs and risks that continue to discourage businesses from entering each other’s markets.