Africa–Caribbean trade could reach $1.65 billion annually by tackling persistent barriers

A new report by the International Trade Centre (ITC) and the African Export-Import Bank (Afreximbank) identifies opportunities to expand Africa–Caribbean trade in selected products, services and markets, outlining practical steps to convert commercial potential into lasting business partnerships, according to a press release. Titled Reshaping Africa-Caribbean Trade: Opportunities for Economic Transformation, the publication was launched on the sidelines of the Commonwealth Heads of Government Meeting in Antigua and Barbuda on 3 November. It finds that the promise of stronger Africa–Caribbean trade ties remains largely unrealized. Researchers estimate that annual trade in goods, excluding mineral fuels, and services could reach up to $1.65 billion by 2030. The report charts a path for turning untapped potential into bankable opportunities.

Four years after a landmark study highlighted significant untapped opportunities, new initiatives have begun to strengthen business ties and improve connectivity. However, businesses on both sides of the Atlantic continue to face hurdles such as weak commercial networks, information gaps and costly logistics. Despite deep historical and cultural links, trade between the two regions remains modest and heavily concentrated. South Africa, Algeria, and Nigeria account for nearly 60% of African exports to the Caribbean. On the other side, the Bahamas and Trinidad and Tobago make up more than 85% of Caribbean exports to Africa.

The report finds that around 80% of Africa’s annual goods export potential to the Caribbean remains untapped, while Caribbean export potential lies in the services sector, reaching $481 million. Promising sectors include processed food, chemicals, minerals and metals, transport services, tourism, and the creative industries. Key obstacles include high transport and logistics costs, limited market information, weak business networks, regulatory hurdles, and restricted access to trade finance and cross-border payment systems. High tariffs and limited direct shipping connectivity further undermine competitiveness. A survey of 1,175 firms and business support organizations nevertheless revealed strong interest in building commercial ties.

“At a time of major shifts in global trade, countries need to strengthen regional ties and invest in value addition, to build resilience,” said ITC Executive Director Pamela Coke-Hamilton. She added that stakeholders can now focus on helping businesses take advantage of opportunities through better market intelligence, improved logistics and greater access to finance. Denys Denya, Senior Executive Vice President at Afreximbank, said Africa and the Caribbean must transform a shared history into shared prosperity. He cited the CARICOM office in Barbados, about $1 billion in approved transactions and a $5 billion regional financing commitment. He also pointed to instruments including CENDEP, the Afri-Caribbean Trade and Investment Forum, CAPSS and CANEX.

In the near term, the report calls for targeted support where commercial opportunities already exist, including verifying promising products and markets and connecting credible buyers and suppliers. Success should be measured through contracts, shipments and lasting business relationships. Over the longer term, efforts should support deeper productive integration through investment in processing, value addition and resilient supply chains. Cooperation in services, digital trade, tourism and creative industries is also highlighted. The opportunity, the report concludes, lies in converting complementary strengths into lasting commercial partnerships.