Africa Strengthens Economic Ties with the Caribbean

African finance leaders are deepening economic partnerships with Caribbean nations, aiming to boost trade between the two regions to nearly US$2 billion annually in the coming years.

Last month, the African Export-Import Bank (Afreximbank) announced a landmark US$1 billion “oil service” financing agreement with Guyana, facilitating collaboration between Guyanese businesses and African oil companies. As a key member of the Caribbean Community (CARICOM), Guyana is rapidly emerging as an energy powerhouse, with projections to produce 1.7 million barrels of oil per day by 2035 – making it the world’s fourth-largest offshore oil producer.

Afreximbank President Benedict Oramah, speaking in Guyana, emphasized that companies from Ghana, Egypt, and South Africa are eager to support the nation’s booming oil sector. “Afreximbank is here to underwrite this partnership,” Oramah stated, reinforcing the bank’s commitment to strengthening economic ties.

Beyond energy, Africa and the Caribbean are exploring broader trade and investment opportunities. In January, ministers from Benin and CARICOM convened for the first time in the West African nation to discuss economic cooperation.

Speaking in the port city of Cotonou, Dominica’s Foreign Affairs Minister Vince Henderson highlighted the importance of sustainable ocean resource management.

“The blue economy is critical for us,” Henderson said. “Being on the Atlantic with Benin makes it only natural for us to foster cultural exchanges that will drive economic benefits for our people.”

He also announced that Benin and Dominica have waived visa requirements to ease travel and trade, while Dominica plans to collaborate with Benin on financial technology development.

In recent years, African leaders have accelerated efforts to build a trade bloc with the Caribbean, creating a market of 1.3 billion people with a combined GDP of approximately US$3.5 trillion.

Momentum for this economic alliance has been growing. In October, the African Union and CARICOM signed a memorandum of understanding to enhance investment and cooperation.

The African Development Bank and the Caribbean Development Bank also formalized a similar agreement in 2022.

Research by the International Trade Centre (ITC) and Afreximbank suggests that if both regions prioritize value-added industries and improved logistics, trade could rise from approximately US$700 million today to US$1.8 billion per year by 2028.

As Africa and the Caribbean strengthen their economic ties, these initiatives signal a new era of trade, investment, and shared prosperity between the two regions.