ITC director calls for more Africa, Caribbean trade linkages

The International Trade Centre's (ITC's) latest research, compiled in collaboration with Afreximbank, shows that trade between Africa and the Caribbean holds immense potential.

This includes an annual US$1.8 billion trade potential in goods and services, which can be realised by 2028.

ITC executive director Pamela Coke-Hamilton said for this economic transformation to be possible, more trade is needed between Africa and the Caribbean.

She was speaking at the opening of the 31st African Export-Import Bank (Afreximbank) annual meeting and the third edition of the AfriCaribbean Trade and Investment Forum (ACTIF) in Nassau, Bahamas, on June 12.

Coke-Hamilton said in the past decade, African exports to the Caribbean have been decreasing, not increasing.

According to ITC reports, less than 0.1 per cent of African exports go to the Caribbean, and less than three per cent of Caribbean exports go to the African continent.

"Looking past sheer volume, we can also see those exports, in either direction, remain far too concentrated in just a handful of sectors with little value addition. This includes areas like unprocessed chemicals and minerals."

Coke-Hamilton said this is despite the potential in exports of machinery, plastics, electricity, rubber, processed food products and mineral products.

"Once again, it reflects our colonial history; it reflects the terms of trade established 400 years ago that have not changed.

"When planning for the future, policymakers have to undo those terms of trade."

Trade agreements are one way to break down barriers and open new opportunities.

Coke-Hamilton said both regions face similar challenges, such as climate change, supply chain disruption, food insecurity, environmental degradation and the covid19 aftermath, which have undone years of economic progress.

To tackle this and turbo-charge trade and investment between both regions, ITC is launching a new project.

This project will be done in collaboration with Afreximbank and focuses on developing five priority value chains with major potential for inclusive and sustainable economic transformation.

The project will be led by SMEs in both regions.

"However, projects like these have also taught us that value chain development and small business competitiveness can only get us so far. Too often, poor logistics infrastructure gets in the way of greater trade both within Africa and the Caribbean and between them.

"Both regions scored the lowest on the World Bank's logistics index, and unless more is invested in changing that, these trade efforts will go to vain."

Looking at all the challenges and opportunities, Coke-Hamilton said a Free Trade Agreement (FTA) between Africa and the Caribbean is being explored.

"If we have one with Europe, why can't we have one with Africa?"

TT has also been making great strides in strengthening its trade relations with Africa.

Last month, Prime Minister Dr Keith Rowley said the government spent the last decade growing its presence in Ghana, which has a market of 34 million people and is viewed as the gateway to a larger market on the African continent.