Business a.m.
A recent study conducted by the International Trade Centre (ITC) and African Export-Import Bank (Afreximbank) has found that trade between Africa and the Caribbean, currently worth $729 million, could increase to $1.8 billion annually by 2028, provided value addition, trade facilitation, and logistics improvements are made a priority in both regions.
The preliminary findings were revealed in Nassau, the Bahamas, during the launch of the ‘Strengthening AfriCaribbean Trade and Investment’ project, part of a joint initiative between ITC and Afreximbank.
The findings were announced at the 31st Annual Meetings of Afreximbank and ACTIF 2023, which brought together key stakeholders to discuss trade and investment opportunities between Africa and the Caribbean. The study found that the travel and transport sectors hold immense potential for growth, making up two-thirds of the potential ‘services trade’ between these two regions.
The preliminary research also uncovered that in the goods segment, minerals and metals, wood, paper, rubber and plastics, and processed food and animal feed are the three key sectors that hold the most potential for trade between Africa and the Caribbean.
The ‘Strengthening AfriCaribbean Trade and Investment’ project, led by Afreximbank and ITC, aims to foster trade and investment relations between Africa and the Caribbean.
Following the launch, both organisations plan to conduct detailed sectoral analyses to gain a comprehensive understanding of five key value chains that have been identified as having strong potential for growth. This assessment will reveal barriers to and requirements for achieving growth in these areas, with the results to be published in a comprehensive report at the Fourth AfriCaribbean Trade and Investment Forum (ACTIF) in 2025.
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.Â
Oramah stated further, “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.Â
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.”
Pamela Coke-Hamilton, ITC’s executive director, highlights the crucial role small businesses play in driving and reaping the rewards of enhanced trade between Africa and the Caribbean.
Speaking on the project’s objectives, Coke-Hamilton noted that there are huge growth opportunities if the right sectors are prioritised for development and investment.
