Caricom leaders outline blueprint for African, Caribbean collaboration

The Caribbean, collectively, can offer businesses market access to over one billion people.

Against this backdrop, Caricom chair and president of Guyana Dr Irfaan Ali called for greater economic integration and south-south co-operation between Africa and Caribbean.

He was speaking to a room full of current and former Caribbean and African heads of state, government officials, private sector representatives and SMEs, at the opening ceremony of the African Export-Import Bank (Afreximbank) annual meeting and AfriCaribbean Trade and Investment Forum, in Nassau, Bahamas, last week.

Afreximbank is a multilateral financial institution tasked with expanding and diversifying African trade and increasing its share of global trade.

Through its initiative – Global Africa – the bank seeks to unite the African and Caribbean diaspora, allowing both regions to strengthen their familial and trade relations.

Speaking on regional economic integration, Ali said, "If we don't tell the story, then who will tell the story for us?

"Three years ago, we would not have seen a single sophisticated investor from Africa in this region. Fast forward to today, we have seen, since Afreximbank came on board, more than 50 African delegations looking at business opportunities in this region. That alone tells you a story."

Ali said the Caribbean region has much to offer in a variety of sectors, such as agriculture, oil and gas and tourism.

He added that the region also boasts one of the smallest carbon footprints, making it a highly sustainable investment arena.

The region has the advantage of high sunshine radiation with an average of 2,750 hours of sunshine per year.

Ali said this offers an interesting opportunity in solar energy.

Similarly, he spoke about the region's access to the US market for aquaculture.

"This is a market of US$4 billion and there are countries in this region that are in the top two per cent in terms of natural competitiveness. This is a market that can be captured.

"You (Afreximbank) have the technology and capital, we have the competitive natural environment. Let us make use of this," Ali said.

Joint financial task force

On the discussion of economic resilience and integration, host country head, Bahamian prime minister Philip Davis, called for the establishment of a joint financial task force.

"This collaborative body will harness the expertise of banking and finance leaders, policymakers and stakeholders from both regions.

"Tasked with identifying and dismantling barriers to banking integration, this task force symbolises our collective will to forge a unified path forward," Davis said.

By aligning anti-money laundering standards, counter-financing of terrorism policies and digital currency regulations, Davis said this creates a seamless environment conducive to cross-regional banking operations.

"Promoting financial inclusion and digital banking leverages the power of technology to erase boundaries and open doors," he added.

Operating with a common digital currency and developing a pan-Caribbean cross-border payment system were hot topics during the AfriCaribbean Trade and Investment Forum.

"Creating a bilateral payment system represents a bold step towards financial sovereignty and integration. Such an initiative will facilitate smoother trade and investment, reduce our reliance on external currencies and strengthen our economic bonds," Davis said.

The call for a common cross-border payment system was also endorsed by Guyana and Barbados.

“We have an opportunity now that you are vested with a payment settlement system and that is why as chair of Caricom, I have asked the Caricom Single Market and Economy (CSME) chair, (Barbados) PM Mia Mottley, to convene a meeting with ministers of finance and governors next week so that we can take to the next heads of government meeting in Caricom a proposal where we can use your system to implement a regional system for payment settlement,” Ali said.

Mottley had spoken of Caricom’s experience, decades ago, when devising a multilateral clearing facility, which was intended to facilitate inter-regional trade.

"But unlike the Pan African Payments and Settlements System (PAPSS), there was no guarantor and therefore when a country got into difficulties with respect to liquidity, it meant that that money remained owing," she explained.

She said the difference this time around is the support and commitment of the Afreximbank. Their success with PAPSS is a great motivator for the region.

Developing cruise tourism

Mottley also highlighted that cruise tourism is one such sector that remains untapped.

Speaking at the three-day conference, Mottley said, "If we are reclaiming our destiny and charting our future, then tourism must be an all-year-round pursuit."

"I believe that the time has come for investors here in the Caribbean and Africa to work together to be able to pursue initially the leasing of a cruise ship, the chartering of it and focusing directly on the things that our people like to do," she said.

African and the Gulf states have the lowest penetration in global cruise tourism – three per cent each – while the Caribbean has cruise ships visiting daily.

Mottley also suggested that the region can potentially start with leasing the vessels until there is sufficient capacity to acquire ownership, which should be seriously considered.

Caricom leaders during the conference emphasised that as a region, collectively focusing on sectors of mutual interest like tourism, agriculture, renewable energy and technology, can unlock new avenues for growth and collaboration.

"As Caricom chair, I am going to continue to work on getting all other outstanding members of the region to become part of the Afrexim family," Ali said.

At present, 11 Caricom countries have formalised their relations with Afreximbank, allowing the bank to set up operations in their respective countries.

TT, Jamaica, Haiti and Montserrat are yet to formalise their Afreximbank membership.

However, Afreximbank executive vice president, Intra-African Trade Bank, Kanayo Awani, said discussions with TT are still a "work-in-progress."

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

Last month, Prime Minister Dr 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.