Caribbean Seeks Economic Renaissance with Africa, Targeting Vast Untapped Business Potential at IATF2025
Algiers, Algeria – Africa’s premier trade and investment event, the Intra-African Trade Fair (IATF2025), held in Algiers, has become a pivotal platform for charting a new economic course, particularly for the Caribbean. While current trade between Africa and the Caribbean hovers below one percent, a resounding call for a transformative “Trans-Atlantic bridge of hope” echoed through the halls, signalling a determined effort to unlock significant, yet largely untapped, business potential.
A New Era of Africa-Caribbean Partnership
The Intra-African Trade Fair 2025, which concluded its week-long proceedings on September 10, 2025, attracted over 112,000 participants from 132 countries, fostering an environment ripe for crucial economic discussions. Among the most significant developments was the amplified voice of the Caribbean, formally recognized as the African Union’s sixth region. This designation underscores a shared heritage and a burgeoning strategic imperative to deepen economic ties and foster mutual growth.
Leading this charge was Dr. Terrance Drew, Prime Minister of St. Kitts and Nevis. Addressing delegates, including African heads of state and business leaders, Dr. Drew urged a redefinition of historical connections. He proposed transforming the painful legacy of the transatlantic slave trade into a modern “Trans-Atlantic bridge of hope” that facilitates robust trade, investment, and shared development between Africa and the Caribbean. Dr. Drew highlighted that the current low trade figures, representing roughly one percent or less of each region’s foreign trade, signify not a limitation, but immense potential for upward growth.
Bridging Continents: Opportunities and Hurdles
Research indicates that despite strong cultural and historical bonds, bilateral trade between Africa and the Caribbean has remained remarkably low, with some analyses showing it as less than 0.1% of African exports to the Caribbean and less than 1% of Caribbean exports to Africa. However, these same studies point to a substantial opportunity, with estimates suggesting annual trade could reach between $1.1 billion and $2.1 billion within the next five years if strategic actions are taken.
Key sectors identified for collaboration include education, where St. Kitts and Nevis has already seen partnerships, as well as emerging technologies, agriculture, renewable energy, tourism, healthcare, sports, and the vibrant creative industries. The need for improved connectivity, including direct flights and dedicated shipping corridors, was repeatedly stressed as a fundamental requirement for realizing this economic potential.
Significant barriers remain, however. High tariffs, which can average 28% for market access and even higher for specific goods like Caribbean rum (88%), coupled with a lack of formal free trade agreements between the regions, create friction that stifles business deals. Businesses often lack comprehensive market intelligence about potential partners and offerings on either side.
IATF’s Institutionalization: A Foundation for Growth
Integral to the fair’s legacy is its transition into a permanent, independent institution. The Intra-African Trade Fair Company (IATFCO) was officially unveiled, with its headquarters to be established in Harare, Zimbabwe. This move, backed by an initial capitalization of $28 million from Afreximbank, aims to ensure the fair’s sustainability, scalability, and deep alignment with the African Continental Free Trade Area (AfCFTA) objectives.
IATF2025 itself facilitated over $48.3 billion in trade and investment deals during its seven-day run, underscoring its role as a critical catalyst for intra-African commerce and beyond. The event, co-convened by Afreximbank, the African Union Commission, and the AfCFTA Secretariat, showcased Africa’s growing capacity for industrialization and export development.
A Shared Future of Prosperity
The convergence at IATF2025 marks a significant step in strengthening the economic partnership between Africa and the Caribbean. The recognition of the Caribbean as the AU’s sixth region, championed by leaders like Prime Minister Drew, coupled with the institutional strengthening of the IATF, lays a robust foundation for future cooperation. As the focus shifts from historical divides to shared economic aspirations, the business community anticipates a new era of intercontinental trade, investment, and mutual prosperity.