Poor logistics, climate change, food insecurity, environmental degradation and the aftermath of the COVID-19 pandemic are some of the challenges that have slowed trade between Africa and the Caribbean. To move forward, governments in both regions are encouraging collaboration, new prosperity modules and policies to boost trade and investment. According to the latest research conducted by the International Trade Centre (ITC) in collaboration with Afreximbank, Africa and the Caribbean harbour significant potential, with trade in goods and services expected to reach USD 1.8 billion annually by 2028.
Over the past decade, the share of African exports to the Caribbean has declined. According to the International Trade Center, less than 0.1% of African exports go to the Caribbean, and less than 3% of Caribbean exports go to the African continent. However, governments are encouraging new modules of prosperity, as Africa and the Caribbean hold enormous potential, with trade in goods and services projected to reach USD 1.8 billion per year by 2028, according to the latest research by the ITC in collaboration with Afreximbank.
“Africa of course has a lot of capacity and the Caribbean right now is also looking to build out its own capacity working in Creating a sustainable pharmaceutical industry to be able to treat to the needs of our people should there be a Pandemic and given the resources in Africa given the expertise also as they now build out their own That is something that we should also look to the area of energy. The Caribbean, for example, has tremendous comparative advantages with respect to solar, both in terms of solar water heating and solar energy. And that, of course, is needed as we look to treat the issue of electricity, because you can’t have competitive economies if electricity is not functioning in the way that it should.”
Chad Blackman, Minister of Economic Affairs and Investment – Barbados
According to Chad Blackman, Barbados’ Minister of Economic Affairs and Investment, poor logistics infrastructure is one of the obstacles to the development of trade between Africa and the Caribbean. These two regions rank lowest in the World Bank’s Logistics Performance Index. Leaders from these regions advocate the adoption of an action plan to address these challenges in order to increase inter-regional trade and investment.
“We have to now ensure that as we talk about building out these trading partnerships between the two regions, that also the private sector, and particularly the shipping industry, works hand-in-hand with us so that as we plan, there’s a necessary infrastructure that can help to facilitate the demand. Because you can have demand, but if you don’t have the vehicle, literally or figuratively, to drive that, you’re going to have some issues. But also, how do we ensure that our port can reduce their times in terms of entering cargo.
Chad Blackman, Minister of Economic Affairs and Investment – Barbados
In collaboration with Afreximbank, around 10,000 SMEs have been trained through an online training platform entitled « How to export with AfCFTA », together with other projects aimed at boosting trade and investment between Africa and the Caribbean. At the same time, five priority value chains have been developed for an inclusive and sustainable economic transformation.
