Amid global economic volatility and shifting trade dynamics, Africa and the Caribbean are exploring pathways to unlock a projected $2.1 billion in bilateral trade over the next five years, according to a joint study by the International Trade Centre (ITC) and the African Export-Import Bank (Afreximbank). Despite centuries of cultural ties, trade between the two regions has stagnated at less than 6% of total exports, with African exports to the Caribbean plummeting to 0.1% since 2020.
External pressures are intensifying the urgency for collaboration. Caribbean nations, which send 40% of their exports to the U.S., now face a blanket 10% tariff on goods entering the American market. African countries, meanwhile, grapple with U.S. tariffs ranging from 10% to 50%, with Lesotho confronting the highest rate—a blow to benefits under the African Growth and Opportunity Act (AGOA). These barriers disproportionately affect small businesses, which often lack resources to adapt swiftly.
Yet transformative initiatives are underway. Africa’s accelerated rollout of the African Continental Free Trade Agreement (AfCFTA)—the continent’s largest trade pact in six decades—aims to reshape intra-African commerce and amplify collective bargaining power globally. For the Caribbean, diversifying export markets and investing in value-added sectors like processed foods, minerals, and creative industries could mitigate vulnerabilities to climate shocks and supply chain disruptions.
Logistical hurdles remain critical. Despite being separated by just 1,600 miles, direct transport links between the regions are scarce, and both rank poorly on the World Bank’s logistics efficiency index. ITC data reveals that 57% of unrealized trade potential stems from these infrastructural gaps. Afreximbank’s $3 billion credit facility for CARICOM nations seeks to address this by modernizing ports and digital systems, while the upcoming CARICOM Payment and Settlement System (CAPSS)—integrated with Africa’s PAPSS—aims to streamline cross-border transactions.
The creative economy emerges as a bright spot. Both regions share rich traditions in textiles, music, and craftsmanship. Afreximbank’s Creative Africa Nexus (CANEX) has doubled funding to $2 billion to scale creative industries, alongside a $500 million film fund to bolster African cinema. Such sectors, coupled with manufacturing and agro-processing, could shift trade from raw commodities to higher-value goods.
Small businesses, however, remain central to progress. A recent ITC-led ministerial meeting in Johannesburg underscored their role in global trade reform, with Afreximbank facilitating participation from 15 African and Caribbean ministers. The upcoming AfriCaribbean Trade and Investment Forum (ACTIF) in Grenada (July 2025) will further advance private-sector partnerships.
As geopolitical tensions reshape global trade, Africa and the Caribbean are positioning their alliance as a model of South-South cooperation—one prioritizing resilience, inclusivity, and shared cultural heritage to navigate an uncertain future.
