BARBADOS | Africa-Caribbean direct air link will soon be a reality says Mottley

BRIDGETOWN, Barbados, June 16, 2024 - Thge much anticipated direct air connectivity between Africa and the Caribbean is in an advanced stage, as talks between the government of Barbados and Nigeria's largest airline, Air Peace, are progressing positively, with both parties working towards establishing direct commercial flights between the two nations. 

Prime Minister Mia Mottley confirmed the ongoing discussions, which are viewed as a significant step towards enhancing transport links and fostering closer ties between the Caribbean and Africa.

Recent meetings between Barbadian officials and representatives from Air Peace have been described as promising. These discussions aim to finalize plans for direct flights that would not only facilitate trade and tourism but also strengthen cultural and economic connections between the two regions. The negotiations, which took place as recently as Wednesday, underscore the strategic importance of air connectivity in supporting regional development.

Prime Minister Mottley expressed confidence in the success of these talks, emphasizing the critical role of air travel in the movement of goods, services, and people. "I think we are much closer to seeing that now happen," Mottley stated during the 31st African Export-Import Bank (Afreximbank) Annual Meetings in Nassau. She highlighted the potential for increased collaboration and economic growth resulting from these direct flights.

Government officials have highlighted the regulatory steps required to make these flights a reality. While no definitive timeline has been provided, Prime Minister Mottley stressed the importance of adhering to regulatory procedures on both sides. “Suffice it to say that the discussions are going on well, the regulatory authorities have to do what they have to do now because none of us are regulatory authorities,” she said. “Once that’s done, we’ll get the reports and then at the governmental levels, it is for us to determine how we promote and get the market going.”

Air Peace, a significant investor in the regional airline LIAT 2020, is poised to play a crucial role in this new venture. The Nigerian airline’s investment in LIAT 2020 positions it well to leverage a hub-and-spoke model, facilitating wider regional connectivity once the direct flights are operational. Mottley outlined a vision where Barbados serves as a key hub for travelers from West and East Africa, providing seamless connections throughout the Caribbean via LIAT or other regional carriers.

The Prime Minister also pointed to existing cultural ties between Barbados and Africa, suggesting that these connections could be strengthened and expanded through direct flights. “There’s already a strong connection and connectivity,” she said, referencing the popularity of Nollywood movies in Barbados as an example of cultural exchange. Mottley emphasized the need for targeted marketing efforts to build on these connections and generate interest in the new flight routes.

Improved regional trade flows are another anticipated benefit of the new flights. Prime Minister Mottley expressed hope that direct flights would eliminate the need for routing goods through northern airports, thereby enhancing the efficiency of trade within the CARICOM Single Market and Economy. She also highlighted the opportunities presented by the African Continental Free Trade Area, suggesting that enhanced air connectivity could significantly boost economic exchanges between the Caribbean and Africa.

Mottley called for more aggressive investment by Caribbean companies in African markets. She pointed to examples of regional financial giants like Sagicor and Republic Bank, which have already established a presence in North America and Africa. "Republic Bank has over 50 branches in Ghana," she noted, adding that many Barbadian companies have started exploring opportunities in various African nations, including Ghana, Kenya, Rwanda, and Botswana. These markets, Mottley argued, hold the potential for substantial growth and development.

The role of Afreximbank in facilitating these connections cannot be overstated. The bank has been instrumental in fostering stronger economic ties between the Caribbean and Africa. During the Afreximbank Annual Meetings, the bank signed significant deals with the Barbadian private sector, including a US$90 million investment in the construction of a Hyatt hotel and a US$10 million trade finance agreement for Rock Hard Cement's expansion. These agreements mark the first deals inked by Afreximbank with Barbadian companies, underscoring the bank's commitment to supporting regional development.

Prime Minister Mottley underscored the importance of financial institutions in facilitating greater Caribbean investment in Africa. She argued that the presence of regional financial institutions in African markets would provide a sense of security and stability for Caribbean companies looking to expand. “When the financial institutions go and establish, the companies with whom they have relationships feel more comfortable going into those countries because they have the relationships and know that their money at least will be reasonably protected,” she explained.

The discussions and agreements forged at the Afreximbank Annual Meetings are seen as pivotal steps towards a new era of Caribbean-African economic cooperation. The event, held for the first time in the Caribbean, brought together policymakers, bankers, and business leaders to explore ways to enhance economic ties between the two regions. With over $49 billion disbursed by Afreximbank in support of African trade last year, the bank's efforts to foster greater exchange between Africa and the Caribbean are gaining momentum.

In conclusion, the ongoing talks between Barbados and Nigeria's Air Peace are a testament to the growing recognition of the mutual benefits of closer ties between the Caribbean and Africa. As regulatory approvals progress and marketing efforts ramp up, there is a strong sense of optimism that direct flights between Nigeria and Barbados will soon become a reality, ushering in a new chapter of connectivity and collaboration.

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