A new report from the International Trade Centre (ITC) released earlier this month identifies a $1 billion export opportunity between Africa and the Caribbean.
ITC and the African Export-Import Bank (Afreximbank) also renewed their five-year cooperation, which will aid in the removal of trade obstacles and the development of the company’s ability to fulfill that potential.
The renewed agreement, which was signed at the just concluded AfriCaribbean Trade and Investment Forum 2022 in Barbados, intends to drive African trade and economic development through new Caribbean markets. It targets small firms and focuses on trade and market intelligence, the creative economy, and green solutions for better trade and investment exchanges in the two regions.
The ITC-Afreximbank collaboration builds on a cooperative effort to boost the competitiveness of African small enterprises and assist them to benefit from the African Continental Free Trade Area (AfCFTA). The agreement will encourage increased investment in African firms and cross-regional business prospects, as well as the development of creative and cultural industries and access to accurate export market information.
Afreximbank president, Prof. Benedict Oramah, lauded the move, saying, “We believe breaking the trade barrier between Africa and the Caribbean will yield greater prosperity and market opportunities for our peoples and support the implementation of the AfCFTA through increased trade and investment.’
According to the report, the two regions have $1 billion or more in potential exports in industries as diverse as agrifood, healthcare, tourism, fertilizers, and automakers.
With the correct backing, Africa may increase its yearly merchandise exports to the Caribbean by $171 million by 2026, a 54% increase over 2020 levels. The Caribbean could increase its exports of commodities to Africa by $80 million, or 29%; it could also increase its exports of services like travel and transportation.
To realize this potential, deeper ties between African and Caribbean traders are required, as are the reduction of trade restrictions such as high tariffs and non-tariff barriers, as well as more investment in growing areas. The two regions’ goods exchange is limited and focused on a few sectors, including primary minerals and chemicals.
The alliance also intends to develop its collaborative training program, ‘How to Export with the AfCFTA’, and to form an African-Caribbean Business Council.
‘A trade boost between Africa and the Caribbean is possible. It needs an ecosystem to give credible data on market opportunities, support to exporting firms, and guidance for governments. The new Africa-Caribbean Business Council is a critical initiative that will help transform transatlantic trade.’ – ITC Executive Director, Pamela Coke-Hamilton.