Barriers limit Trinidad and Tobago, Africa development

When talking about the Caribbean and Africa, the issue of connectivity frequently pops up as a key barrier in the development of both regions.

The 22nd annual Trans-Atlantic Trade and Investment symposium, themed Dismantling Barriers and Strengthening Ties between Africa and the Caribbean, was held at the Hyatt Regency, Port of Spain on July 31.

The event highlighted the progress of both regions, the need for greater exchange of goods and services and the barriers currently affecting connections between them.

Giving the feature address, CEO of the Africa Business Group Michael Sudarkasa outlined some of the current barriers between the regions – high tariffs, limited market knowledge and understanding, poor infrastructure and distance.

He highlighted the lack of direct transport to TT as a major concern. He said it took him 27 hours to fly from South Africa to TT, on a route from Johannesburg, Nairobi, New York and Miami to TT.

Minister of Trade and Industry Paula Gopee-Scoon said in 2020, Ghana and TT signed a memorandum of understanding (MoU) on air transport.

"This MoU has facilitated the commencement of negotiations, which are advancing.

"Parallel air-services agreements with the South Africa and Nigeria are also at advanced stages of negotiations."

She said these frameworks will be designed to facilitate direct air transport services that will make connectivity easier for air cargo services and tourism.

In a Business Day article in last year August 3 issue, Aylette Wright-Paul and Herbert Ghent of Caribbean Airlines (CAL) explained that the low demand for flights to Ghana and other African states, as well as a capacity to accommodate flights, were among the main challenges to establishing a direct route to the continent.

"In order to make the appropriate decisions, you need to have that market data," Wright-Paul said. "We did a brief fact-check before we came here, and the market data for 2019, which would have been pre-pandemic...indicated 61 people moving between TT and Ghana for that year.

"Our fleets are complemented by Boeing 737 Max 8s, so in terms of range, yes, they are able to cross the Atlantic – but can they do it with people on board? So we may be looking at a different type of aircraft which is not in our fleet."

The 737 Max 8s have a maximum flight range of 3,550 nautical miles, but the distance from TT to Ghana is 3,923 nautical miles. Some of the planes that are capable of transatlantic
travel are the Boeing A330-200, listed for US$238 million, and at US$241.7 million for the freighter versions.

On the more expensive side, the Boeing Max 777-8 costs US$410.2 million. The 777-9 costs
around US$442 million.

Business Day spoke to several travel agents who said from an airline’s perspective, to make any money out of using aircraft such as the A330-200, the route would have to have, at a minimum, 85 per cent capacity for every flight.

Responding to the data on the demand for flights to Ghana, Gopee-Scoon said it was greater from a regional perspective.

She said numbers on movement from the Caribbean to Ghana for the same period would be closer to 250 people.

The Business Day article also reported challenges affecting freight.

To get goods from TT to Africa would take five days by air on a good connection, going from TT to Miami, then Miami to London and London to South Africa and other places on the continent.

This is a key contributing factor to the level of exports between the regions.

At the symposium on Wednesday, Gopee-Scoon said last year's total exports from TT to Africa were valued at $2.3 billion (US$336 million) – in 2022 they were approximately $5 billion (US$769 million).

Imports were valued at $261 million (US$38 million) in 2023.

Though TT exports decreased, Caricom exports increased by 67 per cent from 2022-2023.

Gopee-Scoon led a delegation to Ghana in March involving 23 TT companies looking for business opportunities with Africa.

"Several have since advanced discussions for the export of locally manufactured goods and services ranging from beer, biscuits and confectionery, to ICT software and engineering services.

"Earlier this month, the National Flour Mills exported its first container of pet food to Ghana and is considering importing cassava flour to create new, healthier products."

She said according to a joint report published in July by the International Trade Centre (ITC) and African Export-Import Bank (Afreximbank), the Caribbean private sector is "eager" to tap into African markets.

"We face key barriers such as high tariffs on processed goods, and logistical challenges.

"It goes further to declare that if value addition, trade facilitation and improved logistics are prioritised, a ‘transformative opportunity’ awaits the Africa-Caribbean trade corridor, with the potential to surge to a staggering US$1.8 billion per year by 2028."

She said work is being done at all levels.

"At the Caricom-South African ministerial meeting in March, Caribbean governments committed to forge a historic partnership with the African Union.

"The regional bloc has reaffirmed its dedication to signing a MoU with its African counterpart, aimed at establishing a comprehensive framework for co
-operation between the two entities."

She said this development marks a crucial step towards strengthening the Caribbean-African partnership and fostering greater economic integration.