Trade between Africa and the Caribbean Poised for Growth
New Research Highlights Opportunities and Challenges
Trade between Africa and the Caribbean could rise to $1.8 billion per year by 2028 if value addition, trade facilitation and improved logistics are prioritized, according to new research by the International Trade Centre (ITC) and African Export-Import Bank (Afreximbank).
Bilateral Trade Worth $729 Million
Current bilateral trade in goods between the two regions is worth $729 million*.
Promising Sectors Identified
These preliminary findings were released in Nassau, The Bahamas, as part of the launch of the ITC-Afreximbank ‘Strengthening AfriCaribbean Trade and Investment’ project during the 31st Afreximbank Annual Meetings and the third AfriCaribbean Trade and Investment Forum (ACTIF). The research shows that the travel and transport sectors offered the greatest potential contribution to that growth, making up two-thirds of the potential ‘services trade’ between the two regions.
These latest findings also show that, in the goods segment, minerals and metals; wood, paper, rubber and plastics; processed food and animal feed are the three most important sectors.
Project Objectives
The objective of the project is to boost trade and investment in Africa and the Caribbean, and to enhance cooperation between the private sectors of the two regions.
Future Developments
Following this launch, Afreximbank and ITC will develop in-depth profiles of sectors in the two regions to map out these five promising value chains and identify barriers to, and requirements for, growth. The results of this analysis will be featured in a comprehensive report that will be published at the Fourth ACTIF in 2025.
Reactions to the Findings
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, reacting to the findings, said: “The report confirms the vast Africa-Caribbean trade and investment opportunities that remain untapped. It provides a strong validation of Afreximbank’s Caribbean Strategy. With a project pipeline of $2.5 billion and an investment pipeline worth $1.5 billion, the Bank has demonstrated its commitment to realizing opportunities across the two regions. The productive collaboration between Afreximbank and ITC is a testament to this, as it aims to bridge the knowledge gap and build capacity among small and medium-sized enterprises, which are critical for the growth of Africa-Caribbean trade and investment.”
ITC Executive Director Pamela Coke-Hamilton said: “Small businesses can be among the first to drive and benefit from increased trade between these two regions, as they form the backbone of both African and Caribbean economies. There are huge growth opportunities if the right sectors are prioritized for development and investment.”
Conclusion
The new research highlights the potential for increased trade between Africa and the Caribbean, with a focus on value addition, trade facilitation, and improved logistics. The project aims to identify and overcome barriers to growth, and to promote cooperation between the private sectors of the two regions.
FAQs
* What is the potential value of trade between Africa and the Caribbean by 2028?
+ According to the research, the potential value of trade between Africa and the Caribbean could rise to $1.8 billion per year by 2028.
* What are the most promising sectors for growth?
+ The research identifies the travel and transport sectors as having the greatest potential contribution to growth, making up two-thirds of the potential ‘services trade’ between the two regions. In the goods segment, minerals and metals; wood, paper, rubber and plastics; processed food and animal feed are the three most important sectors.
* What is the objective of the project?
+ The objective of the project is to boost trade and investment in Africa and the Caribbean, and to enhance cooperation between the private sectors of the two regions.