Africa-Caribbean trade projected to hit $1.65 billion by 2030

Yearly trade in goods and services between Africa and the Caribbean could reach $1.65 billion by 2030, excluding mineral fuels, if both regions address existing trade barriers and harness opportunities across key economic sectors, a new report by the International Trade Centre (ITC) and African Export-Import Bank (Africa-Caribbean trade) has projected.

The report, titled ‘Reshaping Africa-Caribbean Trade: Opportunities for Economic Transformation,’ was launched on the sidelines of the Commonwealth Heads of Government Meeting in Antigua and Barbuda. It highlighted significant untapped trade and investment opportunities between the two regions, despite their longstanding historical and cultural connections.

According to the report, trade between both regions currently accounts for only a small proportion of their respective total trade, notwithstanding complementary strengths across agribusiness, manufacturing, services and the creative economy.

The report noted that approximately 80 per cent of Africa’s yearly goods export potential to the Caribbean remains untapped, pointing to substantial opportunities for businesses to expand their market reach through deliberate trade promotion, investment and improved commercial infrastructure.

The report also identified significant export opportunities for Caribbean businesses, particularly in services, where export potential is estimated at $481 million. Priority sectors identified for stronger commercial engagement include processed food and animal feed, chemicals, minerals and metals, apparel and textiles, leather and footwear, tourism, transport services and creative industries.

The findings are based on trade and export potential analysis, detailed sector assessments and a survey involving 1,175 businesses and business support organisations across Africa and the Caribbean.

Speaking at the launch, ITC Executive Director, Pamela Coke-Hamilton, said changing dynamics in global trade made it increasingly important for countries to strengthen regional economic relationships and invest in value addition to build resilience.

She said the report provided a basis for translating identified trade opportunities into practical business outcomes through improved market intelligence, logistics and access to finance.

“At a time of major shifts in global trade, countries need to strengthen regional ties and invest in value addition to build resilience. We know the major trade opportunities between Africa and the Caribbean, and now we can focus on helping businesses take advantage of those opportunities through better market intelligence, improved logistics and greater access to finance,” she said.

Also commenting, Senior Executive Vice President of Afreximbank, Denys Denya, said both regions must move beyond their shared historical connections to build stronger economic relationships capable of delivering mutual prosperity.

He disclosed that Afreximbank, through its CARICOM office in Barbados, secured $1 billion in approved transactions and committed $5 billion in regional financing to support economic cooperation and commercial activities.

Denya said the bank is advancing its Africa-Caribbean engagement through several initiatives, including financing, deposit mobilisation under the Caribbean Depository and Enterprise Programme (CENDEP), business connections through the yearly Afri-Caribbean Trade and Investment Forum, and local-currency payments through the Caribbean Payment and Settlement System (CAPSS).

He also highlighted the bank’s creative-industry collaboration through the Creative Africa Nexus (CANEX), noting that the initiatives were designed to strengthen business relationships and unlock investment opportunities across both regions.

According to him, the new report provided a practical framework for converting untapped trade potential into viable investment opportunities, particularly in agribusiness, manufacturing, tourism and the creative economy.

“This report offers a practical roadmap to turn untapped potential into bankable opportunities across agribusiness, manufacturing, tourism and the creative economy. Through targeted financing, stronger transport and logistics links and strategic partnerships, we can build a Global Africa connected by heritage, trade, investment and shared opportunity,” he said.

However, the report warned that businesses seeking to trade between the two regions continue to face significant structural and operational challenges that constrain commercial expansion, including high transport costs, inadequate direct shipping connections, regulatory barriers, limited access to finance and difficulties in identifying reliable and trusted commercial partners.