In an era of deepening global fragmentation, escalating trade tensions, and ongoing disruptions to global supply chains, Africa and the Caribbean find themselves at a pivotal moment. Both regions share a rich historical and cultural connection, yet economic engagement between them remains significantly underdeveloped.
Despite decades of dialogue, bilateral exports between Africa and the Caribbean have never exceeded 6% of total exports for either region. Current trade stands at just $729 million, but analysts estimate this could expand to $2.1 billion within five years — if strategic investments are made and barriers are removed. This is not just an opportunity; it’s a call to action.
Confronting Trade Barriers in an Uncertain Global Landscape
Caribbean countries face new trade headwinds. A blanket 10% tariff now applies to their exports to the United States — their primary trading partner, which accounts for 40% of their total exports. Meanwhile, African nations are subject to a spectrum of reciprocal tariffs, from 10% to 50%, with Lesotho facing the highest rate among U.S. trading partners. These rising barriers challenge the advantages once granted under the African Growth and Opportunity Act (AGOA).
For many small and medium-sized enterprises (SMEs), these developments pose existential threats. Limited in resources and capacity, they are struggling to adjust. But alongside these challenges lie untapped opportunities — ones that require vision, cooperation, and investment to realize.
AfCFTA: Africa’s Game-Changer
Amid these global shifts, Africa is moving ahead with one of the most ambitious trade pacts in modern history — the African Continental Free Trade Agreement (AfCFTA). With full implementation underway, the AfCFTA aims to eliminate tariffs on 90% of intra-African goods, harmonize trade regulations, and bolster Africa’s influence in global trade negotiations.
This agreement not only opens the door for deeper regional integration within Africa but also strengthens its position in forming trade partnerships with regions like the Caribbean. Together, the two regions can redefine the future of South-South cooperation, creating a model that others may follow.
Rebuilding Trade Ties and Diversifying Growth
Trade between Africa and the Caribbean remains minimal and largely focused on raw materials. African exports to the Caribbean have been stagnant at around 0.1% since 2020. Caribbean exports to Africa, while slightly more variable, peaked at only 2.3% in 2022. This limited exchange underscores an enormous gap — but also a massive opportunity.
Reducing trade barriers is a critical first step. For instance, Caribbean rum faces an 88% tariff in African markets — a major obstacle. But eliminating tariffs alone won’t suffice. The focus must shift to trade in value-added goods and services. Sectors such as processed foods, metals and minerals, transportation, and the creative industries offer the highest potential for mutual benefit.
Access to trade and investment finance is key. Here, institutions like the African Export-Import Bank (Afreximbank) play a pivotal role. With a regional office in Barbados and ongoing projects like the African Trade Centre and the creation of the CARICOM Eximbank, the bank is laying the groundwork for seamless interregional trade.
Furthermore, the CARICOM Payment and Settlement System (CAPSS) — being developed in collaboration with Afreximbank and regional central banks — will link with the Pan-African Payment and Settlement System (PAPSS). This will enable real-time transactions in local currencies across the two regions, drastically improving efficiency and cost-effectiveness.
Unlocking the Power of the Creative Economy
Africa and the Caribbean boast vibrant creative industries rooted in a shared cultural heritage — from textiles and ceramics to music and fashion. Through partnerships and co-productions, these sectors hold immense potential for global growth.
Afreximbank’s Creative Africa Nexus (CANEX) initiative is doubling down on this opportunity. The program has increased its funding from $1 billion to $2 billion over the next three years, targeting creative infrastructure and financing solutions. Additionally, the development of a $500 million film fund underscores the commitment to transforming the creative economy into a significant contributor to GDP and job creation.
Overcoming Infrastructure and Institutional Gaps
Geographic proximity should favor trade between Africa and the Caribbean. At just 1,600 miles apart, the regions are closer than many major trade partners. Yet weak infrastructure, inefficient logistics, and regulatory hurdles continue to block progress.
Logistics is the single greatest bottleneck. According to the International Trade Centre (ITC), 57% of unrealized trade potential between the regions stems from logistical issues. Both Africa and the Caribbean rank low on the World Bank’s logistics performance index, highlighting the need for investment in ports, transport links, and digital infrastructure.
To address this, Afreximbank has launched a $3 billion credit facility aimed at upgrading trade infrastructure in CARICOM nations. Projects under this initiative will enhance competitiveness, improve supply chains, and create new pathways for SME engagement.
Empowering SMEs: The Engine of Trade Transformation
SMEs form the backbone of both African and Caribbean economies, yet they remain underrepresented in global trade. Empowering these businesses is essential to turning ambition into action.
The Strengthening AfriCaribbean Trade and Investment Project, launched by Afreximbank and the ITC, is addressing this challenge head-on. By connecting business councils, facilitating B2B engagement, and promoting cultural exchange, the project is forging a new model for sustainable trade-led development.
Highlighting the global relevance of this initiative, the first Global SMEs Ministerial Meeting took place in Johannesburg in July 2025, ahead of South Africa’s G20 presidency. With ministers from both regions participating, the meeting elevated the role of SMEs in shaping future trade policies.
Looking Ahead: ACTIF 2025 and the Future of South-South Trade
The momentum continues as leaders, entrepreneurs, and policymakers prepare for the upcoming AfriCaribbean Trade and Investment Forum (ACTIF), taking place from July 28 to 30, 2025, in St. George’s, Grenada. The event will further catalyze partnerships and unveil new avenues for bilateral cooperation. Visit actif2025.com to participate.
Conclusion: Seizing a Shared Future
As global trade dynamics shift, Africa and the Caribbean cannot afford to sit on the sidelines. The path forward lies in proactive, collaborative engagement that builds inclusive growth, enhances regional resilience, and turns shared history into a prosperous future. This is more than economic necessity — it’s a vision for South-South solidarity in a fractured world.
By investing in value-added trade, overcoming logistical barriers, and empowering SMEs, Africa and the Caribbean can write a new chapter of interregional cooperation — one rooted in mutual respect, shared growth, and lasting opportunity.
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