The International Trade Centre (ITC) has launched a new report identifying $1 billion in export potential between Africa and the Caribbean.
Unlocking this potential requires stronger relationships between African and Caribbean traders, the removal of trade obstacles such as high tariffs and non-tariff barriers, and greater investment in growth areas.
The renewed Memorandum of Understanding, signed at the AfriCaribbean Trade and Investment Forum 2022 in Barbados, aims to drive trade and economic development for Africa through new Caribbean markets.
Key Opportunities and Challenges
With the right support in place, Africa could boost its annual exports of merchandise to the Caribbean by $171 million by 2026, a 54% increase over 2020 levels.
‘A trade boost between Africa and the Caribbean is possible. It needs an ecosystem to give credible data on market opportunities, support to exporting firms and guidance for governments.
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The Role of Afreximbank and ITC
The ITC-Afreximbank partnership builds on the joint attempt to spur the competitiveness of small businesses in Africa and help them benefit from the African Continental Free Trade Area (AfCFTA).
It is a Pan-African multilateral financial institution mandated to finance and promote intra-and extra-African trade.
The International Trade Centre is the joint agency of the World Trade Organization and the United Nations. ITC assists micro, small and medium-sized enterprises in developing countries to become more competitive in global markets - thus contributing the United Nations Sustainable Development Goals. For more information, visit www.intracen.org.
Expanding African-Caribbean Trade
African Union and the Diaspora
‘Under its vision of African unity, the African Union declared the African Diaspora as the sixth region of the continent. In this regard, the AfriCaribbean Trade and Investment Forum provides business communities from the African and CARICOM regions with a platform to engage, trade, invest, innovate and transfer technology.
We believe breaking the trade barrier between Africa and the Caribbean will yield greater prosperity and market opportunities for our peoples and support the implementation of the AfCFTA through increased trade and investment.’
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Potential Export Growth
The following table illustrates the potential growth in Africa's exports to the Caribbean:
| Year | Annual Exports of Merchandise to the Caribbean | Increase Over 2020 Levels |
|---|---|---|
| 2020 | [Current Value] | - |
| 2026 (Projected) | [Current Value + $171 million] | 54% |
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