Trade between Africa and the Caribbean could triple from $729 million to $2.1 billion within five years by prioritizing value-added sectors, according to a joint International Trade Centre (ITC) and Afreximbank study.
The research identifies minerals, processed foods, manufactured goods, creative industries, and tourism as key growth areas, urging both regions to shift from commodity reliance to industrial collaboration. Historically, bilateral trade has never exceeded 6% of either region’s total exports.
External pressures are accelerating this pivot. Caribbean exports face a new 10% U.S. tariff affecting 40% of their trade, while African nations confront 10–50% reciprocal tariffs. Lesotho now bears the highest U.S. tariff rate globally. These changes jeopardize preferential terms under AGOA, compelling SMEs to seek alternative markets. Africa’s AfCFTA implementation offers leverage, and Caribbean cultural ties provide natural entry points for diversification.
Logistics remain a critical barrier: 57% of untapped trade potential stems from poor connectivity, with both regions scoring low on the World Bank’s performance index. Tariffs like the 88% duty on Caribbean rum to Africa compound challenges. Afreximbank is addressing gaps through a $3 billion CARICOM credit facility, payment system integration (linking PAPSS and CAPSS), and a Barbados operational base. The creative sector is receiving targeted support, including CANEX’s doubled $2 billion fund and a new $500 million film initiative.
SME-focused efforts like the Strengthening AfriCaribbean Trade Project and the upcoming ACTIF 2025 forum in Grenada aim to formalize partnerships. These steps signal a strategic push toward resilient South-South trade, leveraging shared heritage to navigate global volatility.
