Tapping into AfriCaribbean Export Potential through Promising Value Chains
To translate AfriCaribbean export potential into real business transactions, Afreximbank and ITC embark on a new initiative with policy and private sector partners to unlock bottlenecks and promote business linkages in key promising sectors.
Despite a shared history and cultural ties, Africa and the Caribbean trade only 1% of their exports with each other.
To change that, over 80 policy and business leaders met on 2 September, through a new initiative of the African Export-Import Bank (Afreximbank) and International Trade Center (ITC).
They discussed preliminary findings of a joint study titled Tapping into AfriCaribbean Export Potential through Promising Value Chains. The final report expected in 2025 will offer actionable recommendations to grow trade between the two regions.
Which sectors offer promise?
AfriCaribbean trade could reach $1.8 billion by 2028 through eliminating trade frictions and attracting investments.
Among the most promising products sectors are minerals and metals, wood, paper, rubber, plastics, processed food and animal feed. Transport and travel, including tourism, show potential for trade in services. The creatives sector also offers opportunity, particularly in design and art crafts.
‘These sectors are more than just areas with strong export potential — they’re areas that speak to each region’s histories, their cultures, so much of which is already shared,’ said Aissatou Diallo, Chief of the Office for Africa at ITC.
Dr Gainmore Zanamwe, Director for Trade Facilitation and Investment Promotion, Afreximbank stated that 12 out of 15 Caribbean countries have now acceded to the partnership agreement between CARICOM member states and Afreximbank marking a significant milestone in the quest to deepen commercial and social linkages between the two regions.
`This pivotal study will complement this agreement, by highlighting the sectors with the greatest trade potential as part of our Global Africa agenda. Afreximbank is ready to provide trade facilitation and financial support to boost two-way trade and investment between Africa and the Caribbean’.
‘The sectors that have been identified resonate with the priorities of the African Union particularly in respect to value addition in sectors such as agro-processing, goods and minerals,’ said Jean-Bertrand Azapmo, Principal Advisor at the African Union Commission.
The workshop listened to the needs and priorities of African and Caribbean businesses, who are the ultimate drivers of AfriCaribbean trade and investment.
‘To facilitate business matchmaking programs and partnerships, we must strengthen business organizations and create connections across diverse sectors,’ said Amany Asfour, President of the Africa Business Council.
What to expect next
Five priority sectors are to be identified through further participatory consultations with policy leaders and private sector stakeholders and building upon existing regional priorities and frameworks.
The task is to determine how best to diversify and grow exports within these sectors and figure out what challenges small businesses are currently facing.
For each sector, the plan is to conduct business surveys and develop in-depth profiles to identify opportunities for export growth and diversification, map input and transformative output products, and document the constraints and requirements of businesses.
The study is part of a wider joint initiative of Afreximbank and ITC called “Strengthen AfriCaribbean Trade and Investment” which covers complementary actions to enhance the cross-regional business ecosystem and to assess the implications of a Free Trade Agreement between Africa and the Caribbean.
