Keypoints:
- CARICOM seeks stronger trade and finance ties with Africa
- Afreximbank expanding investment and presence in Caribbean
- Leaders diversify partnerships amid global trade tensions
CARIBBEAN leaders are intensifying efforts to deepen economic and diplomatic partnerships with Africa as global trade tensions and shifting geopolitical alliances push smaller regional blocs to seek new markets and sources of investment.
Speaking at the Fiftieth Regular Meeting of the Conference of Heads of Government of the Caribbean Community (CARICOM) in St Kitts and Nevis on February 24, Secretary-General Dr Carla Barnett said the organisation would place renewed emphasis on strengthening ties with African institutions and governments.
A new focus on South-South cooperation
Dr Barnett told leaders from CARICOM’s 15 member states and six observer states that South-South cooperation would be central to the bloc’s diplomatic and economic strategy in the coming years.
‘His presence here today indicates CARICOM’s renewed efforts to actively foster South-South partnerships, including with the African Union,’ Barnett said, referring to the attendance of Dr George Elombi, the newly appointed President and Chairman of the Board of Directors of the African Export-Import Bank (Afreximbank).
She said the Caribbean bloc planned to deepen engagement with Africa in several strategic areas, including trade financing, development cooperation, cultural exchanges and improved air connectivity between the two regions.
‘A successful second CARICOM-Africa Summit was held last year, and we are committed to continuing to deepen our engagement in areas such as finance and development, advocacy for reparations, air connectivity and cultural exchanges,’ she added.
The renewed outreach to Africa reflects a broader shift in global trade dynamics, with Caribbean leaders seeking to diversify partnerships beyond traditional economic relationships with Europe and North America as protectionist policies and geopolitical tensions reshape international commerce.
Diplomatic engagement between the two regions has also accelerated in recent years. Leaders from both sides have increasingly framed Africa–Caribbean cooperation as part of a broader South-South alignment, with initiatives ranging from trade and aviation partnerships to cultural exchange programmes. Tanzania’s President Samia Suluhu Hassan recently highlighted the growing strategic partnership during international discussions on emerging economic alliances.
Growing diplomatic momentum
The strengthening relationship is also reflected in new bilateral initiatives. This week, St Kitts and Nevis Prime Minister Dr Terrance Drew travelled to Ghana for an official visit aimed at expanding cooperation between the Caribbean and West Africa.
During the visit, Ghana and St Kitts and Nevis signed agreements covering visa-free travel for ordinary passport holders, labour cooperation and political consultations, while discussing opportunities for deeper collaboration in tourism, education, trade and investment.
The visit highlights Ghana’s emerging role as a gateway for Africa–Caribbean engagement, reinforcing broader efforts by CARICOM leaders to translate historical ties between the two regions into stronger economic partnerships.
Untapped trade potential
Despite strong historical, cultural and political connections between the Caribbean and Africa, trade between the two regions remains limited.
Millions of Africans were forcibly transported to the Caribbean during the transatlantic slave trade, shaping the region’s demographics, culture and political consciousness. In the decades that followed, both regions shared parallel struggles for independence and collaborated through the Pan-African movement and campaigns against colonial rule and apartheid.
Yet economic engagement has lagged behind those historical ties.
Trade data cited by regional officials show that bilateral exports between Africa and the Caribbean have rarely exceeded 6 percent of either region’s total exports. African exports to the Caribbean have hovered around 0.1 percent of total exports in recent years, while Caribbean exports to Africa increased from about 0.8 percent in 2020 to roughly 2.3 percent in 2022.
Current trade between the two regions is estimated at about $729m annually, though analysts say the figure could rise to around $2.1bn within five years if trade barriers are reduced and investment targets sectors such as manufacturing, minerals and metals, processed foods, tourism and the creative industries.
Afreximbank strengthens regional presence
Financial institutions are playing a central role in efforts to strengthen Africa–Caribbean economic cooperation.
Afreximbank, one of Africa’s largest trade finance institutions, reported total assets of approximately $35bn at the end of 2024, with shareholders’ funds exceeding $7bn. The bank approved more than $22bn in financing last year, underscoring its expanding role in supporting trade, infrastructure and industrial development.
The growing partnership is already being backed by major financial commitments. Earlier this year, the bank expanded its financial engagement with Caribbean economies, committing billions of dollars in trade finance and investment support, signalling a deeper institutional commitment to strengthening economic ties between Africa and the Caribbean.
The institution has already established an office in Barbados and is advancing plans to build an African Trade Centre in the Caribbean. Regional leaders are also exploring the creation of a CARICOM Eximbank subsidiary and deeper payment integration between African and Caribbean financial systems.
The move builds on earlier institutional steps to anchor Africa–Caribbean economic cooperation. Afreximbank’s regional hub in Barbados, launched to expand trade financing and investment support for Caribbean economies, was designed to serve as a gateway for deeper commercial links between both regions
Early signs of economic cooperation
Several investment initiatives are already beginning to reshape economic links between the two regions.
In aviation, Nigerian-linked Air Peace Caribbean Ltd holds a 70 percent stake in LIAT Air, while the Government of Antigua and Barbuda retains the remaining 30 percent. The airline began operations in August 2024, replacing the former LIAT (1974) Ltd and restoring vital regional connectivity across the Eastern Caribbean.
Energy cooperation is also expanding. Angola-based PetroWork Solution has launched operations in Guyana’s oil and gas sector, while Ghana’s Cybele Energy recently secured a petroleum exploration licence — becoming the first African-owned company to be awarded an oil block in the country.
Navigating global economic pressures
The push for stronger Africa–Caribbean cooperation comes as regional economies confront a challenging global environment marked by trade disputes, slowing growth and climate-related disruptions.
CARICOM, which represents a population of roughly 16–17 million people, faces mounting pressures from extreme weather events and tightening global financial conditions.
‘Without question, 2025 was one of the most challenging years in the history of our regional integration movement,’ Barnett said.
‘Extreme weather events, geopolitical tensions, challenges to multilateralism and the rules-based system, and economic pressures tested our region and threatened hard-won development gains.’
She also recalled the devastation caused by Hurricane Melissa, which struck several Caribbean countries with catastrophic consequences.
‘We will not ever forget Hurricane Melissa, the destructive Category 5 system which hit Haiti, The Bahamas, Bermuda and other countries in the region, and left death and catastrophic destruction in its wake in Jamaica,’ she said.
Despite these challenges, Barnett said regional cooperation and diversified partnerships would help the Caribbean navigate an increasingly uncertain global landscape.
‘The task before us is formidable, but not insurmountable,’ she told leaders.
‘Our regional integration movement has demonstrated tangible gains in human and social development, foreign policy coordination, security cooperation and economic development, which have meaningfully improved the lives of the people we serve.’
For Caribbean leaders, Africa is increasingly seen not only as a historic partner but also as a strategic economic ally as the global trading system undergoes significant transformation.
