Up to maybe a decade ago, talk of firm trade, economic and other ties with Africa had amounted to nothing more than fairytales but a determined effort from both regions in the past five years seemed to have set the course for a massive growth area as the two move to open a new development frontier.
As leaders, finance and high officials returned home from a African Export-Import (Afreximbank) annual general meeting in The Bahamas that was twinned what is only the third AfriCaribbean Trade and Investment Forum also in The Bahamas, optimism and hope about exponential trade and investment growth have spurred following the two conferences.
Back in September 2021 at the height of the COVID pandemic, leaders from the two sides held their first formal summit, albeit virtually because of travel restrictions and since then, economic activities have taken off in earnest on both sides of the Atlantic.
For example, presidents, prime ministers, tourism and aviation officials are in deep discussions with Air Peace of Nigeria about commencing chartered and non-stop commercial flights between the continent and the Caribbean. And while this is happening, trade and finance officials are zooming in on commercial projects that would be financed by the Afreximbank. The bank has already set aside a whooping $1.5 billion for the region to access in the coming months. So far, Guyana and a Barbadian firm have moved in to cash in on opportunities, while others are in advanced stages of negotiations to also cash in on bank financing.
These include regional headquarter nation Guyana which in the past year has accessed a $500 million stash to finance a slew of infrastructural projects linked to the spectacular economic growth since US supermajor ExonMobil found humongous reserves of oil and gas offshore back in 2015.
Barbadian businessman Mark Maloney, meanwhile, has quickly followed suit, walking away with a $100 million loan to build a Hyatt Hotel in the Eastern Caribbean tourism paradise. He has also been able to secure a $10 million loan to import a large quantity of cement to keep pace with a construction boom on the island.
“It’s great to see the huge influence that Afreximbank is having in the region. You know, the region doesn’t lack opportunities. It lacks capital and it is challenging when you are doing projects, to be able to raise money in the local banking industry. And Afreximbank has shown its commitment to the region and planting its seed in Barbados where it is based,” he said. “It is also signifies that Barbados is really the place to be,” he said as he heaped praises on the bank and the vision of regional leaders to push for closer ties with Africa.
Several leaders and high officials who spoke at the forums in The Bahamas pointed to the fact that African businesses are following the signal from leaders and the bank to seek out investment opportunities in the 15-nation bloc from Guyana and Suriname on the South American coast in the south to Jamaica and The Bahamas in the north to Belize in Central America.
“Three years ago, sophisticated investors from Africa were not seen in the Caribbean region. Fast forward to today, we have seen in this region, since Afreximbank came on board, more than 50 African delegations looking at business opportunities in this region. It’s this little spark that could ignite massive transformation and realization of the opportunity and potential that exists within our region,” said Guyanese President and outgoing bloc Chairman Irfaan Ali, noting that several billionaires, technology companies and other interests have indicated they are interested in doing business in the Caribbean.
As businesses begin to focus on opportunities in Africa and the fact their projects can be financed by Afreximbank, regional leaders and tourism officials are also zooming on achieving a long held ambition to have direct or non-stop flights from the continent to the Caribbean.
Barbadian Prime Minister Mia Mottley said recently that talks with Air Peace of Nigeria for such operations are at an advanced stage as she noted the region’s determination to cut out London and New York as transit hubs for travelers from Africa.
“I think we are much closer to seeing that happen now. There are charters that are being discussed and my own officials met with Air Peace up to the day before yesterday, and with our tourism people, to be able to see how we can have that linkage move, because once we start to create that link the rest is history. 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. And 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.”
