The African and Caribbean regions, despite their shared history and cultural ties, exhibit a surprisingly low level of trade, with less than 3% of their exports directed towards each other, according to ITC data. Trade is also highly concentrated in a few key products. To increase trade between the two regions, there are two key issues to tackle: High tariffs (especially on processed goods) and weak logistics.
Bilateral tariffs tend to be higher than those charged to exporters from other trading partners. Tariffs also increase with the level of processing, which discourages transformation of products into value-added goods for export. As for trade logistics, performance is significantly lower in Africa and the Caribbean compared to other regions (World Bank LPI).
Trade agreements are one solution to lower trade costs between the two regions.
Untapped Opportunities
The report confirms the vast Africa-Caribbean trade and investment opportunities that remain untapped. It provides a strong validation of Afreximbank’s Caribbean Strategy.
These preliminary findings were released in Nassau, the Bahamas, as part of the launch of the ITC-Afreximbank ‘Strengthening AfriCaribbean Trade and Investment’ project during the 31st Afreximbank Annual Meetings and the third AfriCaribbean Trade and Investment Forum (ACTIF).
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Following this launch, Afreximbank and ITC will develop in-depth profiles of sectors in the two regions to map out these five promising value chains and identify barriers to, and requirements for, growth.
Prof. Benedict Oramah, President and Chairman of the Board of Directors of Afreximbank, reacting to the findings, said: "With a project pipeline of $2.5 billion and an investment pipeline worth $1.5 billion, the Bank has demonstrated its commitment to realizing opportunities across the two regions.
ITC Executive Director Pamela Coke-Hamilton said: “Small businesses can be among the first to drive and benefit from increased trade between these two regions, as they form the backbone of both African and Caribbean economies.
Caribbean Market Dynamics
The Caribbean region has 44.5 million inhabitants as of 2025. The population is incredibly diverse and is made up of descendants from native tribes that inhabited the region and people of African, European, Indian, and Middle Eastern descent, among others. It is a mix of independent states, overseas departments or dependencies of European countries, and islands that are part of a European kingdom.
The Foreign Agricultural Service Agricultural Trade Office (ATO) in Miami hereinafter referred to as “FAS Post Miami” reports that the Caribbean region imported just over US$1.8 billion in processed food products in 2023, which is a decrease of 4% from the prior year. Practically all foods must be imported, as domestic production is quite limited.
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Caribbean Culture Explained with Food
Retail Sector
Euromonitor has indicated that the market size of the packaged food retail business in The Caribbean was US$10.2 billion in 2024. They also forecast growth of 30.3% to 2029, or another US$3.3 billion during the period for a total of US$14.2 billion from 2025. Approximately 82% of imported foods and beverages are channeled through the retail sector. This sector includes traditional grocery stores to more modern, upscale supermarkets. Most of the products stocked on the shelves of Caribbean retail stores are imported.
Key highlights of the retail sector include:
- $10.2 Billion total retail sales in the packaged food market in the Caribbean in 2024
- 82% of food and beverages imported are channeled through the retail sector
- $13.5 Billion estimated retail sales in the packaged food market by 2029
Foodservice Sector
The Caribbean Basin region has a robust and competitive hotel/restaurant/institutional (HRI) sector. Tourism is a major economic driver, accounting for nearly 9 million visitors in 2023. 50% of tourists to the Caribbean in 2023 were American.
Sales reached US$2.2 billion in 2023, an increase of 14% from the previous year. exports to the Caribbean for foodservice in 20239 milliontotal visitors in 202350%of tourists to the Caribbean in 2023 were AmericanThe Caribbean Basin region has a robust and competitive hotel/restaurant/institutional (HRI) sector.
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Food-Processing Sector
Given very limited agricultural activity, food-processing is minimal in most countries; except in Trinidad and Tobago, where intermediate and bulk products account for 46% and 34% of the region’s total imports, respectively.
