Africa-Caribbean trade to reach $1.8b

Africa-Caribbean trade is projected to soar to $1.8 billion annually by 2028, driven by value addition, trade facilitation, and improved logistics, according to a report by the International Trade Centre (ITC) and African Export-Import Bank (Afreximbank). Currently, bilateral trade stands at $729 million.

The report highlights travel and transport as key growth sectors, making up two-thirds of potential services trade, and identifies minerals and metals, wood, paper, rubber, plastics, processed food, and animal feed as critical goods sectors.

Afreximbank President Prof. Benedict Oramah emphasised the untapped opportunities, citing the Bank’s $2.5 billion pipeline project and $1.5 billion investment pipeline as evidence of commitment. ITC Executive Director Pamela Coke-Hamilton noted the potential for small businesses to drive and benefit from increased trade.

Notably, despite historical and cultural ties, Africa and the Caribbean currently export less than 3 per cent to each other, with trade concentrated in a few products. Key challenges include high tariffs on processed goods and weak logistics.

The ITC and Afreximbank plan to address these by developing sector profiles, mapping value chains, and analysing tariff and non-tariff measures to enhance trade.

The project supports a memorandum of understanding between ITC and Afreximbank, building on their previous collaborations. A comprehensive report on these efforts will be published at the Fourth ACTIF in 2025.

Attribution: Afreximbank.