Trade between Africa and the Caribbean has historically remained limited, never surpassing 6% of total exports for either region, according to a joint study by the International Trade Centre (ITC) and the African Export-Import Bank (Afreximbank). However, new data suggests that bilateral trade could grow from $729 million to $2.1 billion within five years, if targeted investments are made and trade barriers reduced.
The study highlights key growth areas in value-added sectors such as minerals, processed food, manufactured goods, creative industries, transport, and tourism. While current trade relies heavily on unprocessed commodities, the potential lies in shifting toward industrial collaboration and innovation.
This comes at a time when both regions are navigating global uncertainty. Caribbean nations now face a 10% blanket tariff on exports to the U.S., which accounts for 40% of their exports. Meanwhile, reciprocal tariffs on African nations range between 10% and 50%, with countries like Lesotho facing the highest rate of all U.S. trading partners. These developments threaten preferential trade terms under frameworks like African Growth and Opportunity Act (AGOA) and are forcing a rethink among small and medium-sized firms.
Africa’s implementation of the African Continental Free Trade Area (AfCFTA) provides an opportunity to counteract external pressures by deepening intra-African trade and boosting negotiating leverage globally. The Caribbean, while geographically distant, shares longstanding cultural and political ties with Africa and is well positioned to diversify its trade portfolio by integrating more fully with African markets.
Despite being separated by just 1,600 miles, Africa-Caribbean trade remains inefficient due to logistical bottlenecks, weak regulatory frameworks, and high tariffs, including a reported 88% tariff on Caribbean rum exports to African countries. According to ITC, 57% of unrealized trade potential between the two regions stems from logistics constraints. Both regions rank low on the World Bank’s logistics performance index.
Efforts are underway to address these challenges. Afreximbank has committed a $3 billion credit facility to CARICOM countries to strengthen trade infrastructure and SME competitiveness. The Bank’s presence in the Caribbean, through its Barbados office and planned CARICOM Eximbank, is expected to support deeper trade integration. Payment system links, such as the CARICOM Payment and Settlement System (CAPSS) and Africa’s PAPSS, aim to enable more efficient cross-border transactions in local currencies.
In the creative economy, both regions have untapped synergies in fashion, crafts, music, and film. Afreximbank’s Creative Africa Nexus (CANEX) programme has doubled funding from $1 billion to $2 billion, while a new $500 million film fund is under development to support African filmmakers and global diasporic content.
Efforts to mobilise SMEs, the backbone of both regions, are gaining traction through the Strengthening AfriCaribbean Trade and Investment Project, a collaboration between ITC, Afreximbank, the Caribbean Private Sector Organization, and the African Business Council. Business-to-business linkages and technical support are expected to accelerate the transition from informal networks to structured partnerships.
The upcoming AfriCaribbean Trade and Investment Forum (ACTIF 2025), taking place in St. George’s, Grenada from July 28–30, will further these efforts by focusing on investment facilitation, regulatory alignment, and sector-specific opportunities.
While institutional gaps remain, Africa and the Caribbean are building the framework for a deeper, more resilient South-South trade model, one that leverages shared heritage to navigate global volatility and secure long-term economic transformation.
