Four ways to boost Africa-Caribbean trade
Basic steps can help to build new economic bridges between these historically intertwined regions, writes Pamela Coke-Hamilton, executive director of the International Trade Centre First, develop an ecosystem to help African and Caribbean importers, exporters and investors overcome perception gaps and spot market opportunities. Traders often have initial misperceptions about the risks, opportunities, socio-political contexts or the ease of doing business in target markets where they have not operated in before.
Governments, trade/investment promotion organisations and international organisations will need to fill the gap: by providing credible market and trade intelligence, tailored training, matchmaking between buyers and sellers, and even simple translation tools to help overcome language barriers.
Second, organise regular trade fairs and business-to-business meetings to increase contacts between African and Caribbean firms. Covid-19 has been a challenge but not an insurmountable one – virtual fairs can be almost as lucrative for small exporters so long as they have the right support and guidance to turn their business leads into signed deals.
Third, tackle the big challenges and barriers facing Africa-Caribbean trade. Tariffs on some key export items remain high: a free trade agreement between the two regions, building on the African Continental Free Trade Area, could open new markets. Non-tariff measures, especially regulatory requirements, are prohibitive obstacles to trade. They are even more burdensome for small firms and small markets as the fixed cost of compliance is high. The biggest barrier is transport costs. Reducing transport costs means investing in better port and land freight infrastructure as well as better logistics and customs services.
Fourth, focus on the future of trade. Service sectors like the creative industries, business services and financial services generate not just revenue but also innovative ideas and jobs to keep our young talent working in their home region. These four actions could transform AfricaCaribbean trade in both directions, at a time when both regions face the “three C’s” – Covid, climate and conflict – and the Sustainable Development Goals are even further from reach.