CARICOM | Africa and Caribbean Forge Historic Economic Alliance: A $2 Billion Bridge Across the Atlantic

MONTEGO BAY, Jamaica, March 11, 2025 - In a world where traditional economic powers are tightening their purse strings and imposing green restrictions, two regions with deep historical ties are rekindling their relationship through commerce rather than colonialism.

African nations and Caribbean countries are orchestrating a financial reunion that could unleash nearly $2 billion in annual trade, bypassing Western gatekeepers and creating a formidable economic bloc of 1.3 billion people with a combined GDP of $3.5 trillion.

The African Export-Import Bank (Afreximbank) made a decisive move last month, announcing a $1 billion "oil service" financing agreement with Guyana. This South American nation, culturally embraced as part of the Caribbean and a founding member of the Caribbean Community (CARICOM), stands at the crossroads of this emerging partnership.

"Companies from Ghana, Egypt, and South Africa are ready and willing to support Guyana's fast-growing oil industry," declared Afreximbank President Benedict Oramah during talks in Guyana. "Afreximbank is there to underwrite the marriage."

The nuptials could be lucrative—Guyana is projected to become the world's fourth-largest offshore oil producer by 2035, pumping 1.7 million barrels daily.

The courtship between these regions extends beyond oil. January witnessed a historic first meeting between ministers from Benin and CARICOM in the West African port city of Cotonou. On the sidelines, Dominica's foreign affairs minister Vince Henderson revealed his country's eagerness to partner with Benin on sustainable ocean resource management.

"The blue economy is very critical for us," Henderson explained. "Being on the Atlantic with Benin makes it only sensible for us to work on our cultural exchanges that will translate to economic benefit for our people."

Practical steps are already being taken; Benin and Dominica have eliminated visa requirements between their countries, smoothing the path for people, ideas, and investments to flow freely. Dominica also plans to collaborate with Benin to develop financial technology systems, creating digital bridges across the Atlantic.

These individual partnerships form part of a broader strategic realignment. In October, the African Union and CARICOM signed a memorandum of understanding to boost investment and collaboration between nations in both regions. This followed a similar agreement between the African Development Bank and the Caribbean Development Bank in 2022.

Research published last year by the International Trade Centre and Afreximbank provides a compelling economic forecast: trade between Africa and the Caribbean could more than double from approximately $700 million to $1.8 billion annually by 2028—if value addition and improved logistics are prioritized.

This emerging economic axis represents more than just business deals; it embodies a philosophical shift among Global South nations seeking mutual prosperity in an increasingly multipolar world. The same impulse that expanded the BRICS group beyond its original five members now drives Africa and the Caribbean to forge bonds that circumvent traditional power centers.

A common frustration unites these regions—the perceived hypocrisy of wealthy nations that built their fortunes through fossil fuels but now lecture developing countries about environmental responsibility. Guyanese President Mohamed Irfaan Ali articulated this sentiment in a BBC interview: "Those who destroyed the environment through the industrial revolution are now lecturing us." He emphasized that even with full exploitation of its oil and gas resources, Guyana would remain carbon-neutral due to its vast carbon-absorbing forests.

This sentiment echoes across Africa, a continent responsible for a mere 4% of global carbon emissions, where policymakers seek to capitalize on their natural resources without Western restrictions.

The partnership between regions linked by the painful history of enslaved Africans now offers an alternative path to prosperity in a fractured global landscape where nations need alliances beyond the traditional powers of the US, China, and European Union.

Practical challenges remain. According to the World Bank, Africa and the Caribbean have some of the world's lowest ratings for transport infrastructure, logistics quality, and customs efficiency—limitations that have historically restricted inter-regional trade.

The bank's 2023 Logistics Performance Index rated both sub-Saharan Africa and the Caribbean at 2.66 points out of five, significantly below Europe (3.40) and East Asia and Pacific (3.13).

Yet the barriers are gradually falling. Nigerian tech entrepreneur Iyinoluwa Aboyeji, who relocated to Barbados in 2022, reports that the Caribbean island is attracting a growing number of African businesses.

The appeal includes favorable tax regimes—no capital gains tax and incentives for intellectual property domiciliation—along with visa systems offering permanent residency through qualifying investments.

Aboyeji highlights the practical advantages: African companies gain easier access to US markets through Caribbean partnerships. But beyond business practicalities lies a deeper connection: "There is also a cultural affinity and friendliness for Africans. It's very welcoming," he noted.

This emerging economic partnership embodies what experts call "Global Africa"—a concept gaining traction where the continent and its diaspora collaborate for shared prosperity.

As traditional power structures shift, this Atlantic alliance may prove that the strongest bridges are built not by colonial powers, but by those with shared histories finding common cause in an uncertain future.

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Caption for lead photograph: President of African Export-Import Bank (Afreximbank),Benedict Oramah, with prime minister of Barbados Mia Amor Mottley; Prime minister of St. Vincent and the Grenadines Ralph Gonsalves, ; Prime minister of St Lucia Phillip Pierre; Prime minister of Grenada Dickon Mitchell ; Former president of the Federal Republic of Nigeria, Olusegun Obasanjo ; and other dignitaries at the official opening of the CARICOM office of the bank in August 2023 in Bridgetown, Barbados..

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