In a bold signal of South-South cooperation, African financial institutions are pledging billions in investments to the Caribbean, quietly redrawing global economic alliances as Western focus turns inward and China recalibrates its global ambitions.
The African Export-Import Bank (Afreximbank) has announced its readiness to double disbursements to the Caribbean to US$3 billion, part of a broader push to deepen trade and financial ties between Africa and CARICOM nations. The announcement was made Sunday by Afreximbank Communications and Events Manager Vincent Musumba, ahead of the Africaribbean Trade and Investment Forum 2025 (ACTIF2025), held at the Radisson Hotel in Grenada.
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“Trade between Africa and the Caribbean remains below 1 percent despite deep historical and cultural bonds,” said Musumba. “Afreximbank’s mandate is to reverse that trend.”
Of the pledged amount, US$1.5 billion has already been disbursed, signaling tangible momentum in the relationship. Musumba stressed the urgency of translating shared heritage into strategic economic engagement.
The renewed investment appetite comes amid geopolitical uncertainty and retreating multilateralism—an opening that Africa and the Caribbean are increasingly looking to fill together.
CARICOM Secretary-General Dr. Carla Barnett, addressing delegates at Monday’s opening ceremony, underscored the stakes. “CARICOM trade with the continent must grow from current levels of less than 3 percent of our overall trade, particularly given the uncertainty that looms over trade with traditional partners,” she said. “This is not just a pivot of convenience—it’s a strategic imperative.”
Pamela Coke-Hamilton, Executive Director of the International Trade Centre (ITC), projected that Africa-Caribbean trade could reach US$2.9 billion annually within five years, provided tariffs and other barriers are eased.
Now in its fourth iteration, the ACTIF conference is fast becoming a key fixture in Africa-Caribbean diplomacy and commerce. Previous forums generated notable economic traction:
- Barbados (2022): US$2 billion in opportunities
- Guyana (2023): US$551 million (excluding oil-related agreements)
- The Bahamas (2024): US$4 billion in potential deals
Expectations remain high for the 2025 edition, which continues this week with sessions on innovation, tourism, logistics, air and sea connectivity, and cultural collaboration.
Founded in 1993, Afreximbank has a mandate to expand intra-African and diaspora trade. The bank currently reports US$28 billion in loans, US$37 billion in assets, and a capital adequacy ratio of 26 percent as of March 2025.
Yet concerns remain. Earlier this month, Fitch and Moody’s downgraded Afreximbank’s credit rating by one notch, citing growing exposure to sovereign risk and a rise in non-performing loans. Fitch flagged that the bank’s NPL ratio had crossed the 6 percent threshold. Moody’s warned that Afreximbank’s shift toward unsecured lending to high-risk sovereign borrowers, such as Ghana and Zambia, represents a significant deviation from its traditionally conservative trade finance model.
When asked to respond to the downgrades, Musumba declined to address the specifics but stood by the bank’s mission. “The bank was formed by African nations—it would be disingenuous not to support the very countries that built its foundation,” he said. He added that both public and private sector funding channels remain open.
As traditional geopolitical anchors become increasingly volatile, ACTIF2025 reveals a deeper truth: the global South is no longer waiting for inclusion—it is actively shaping its own path.
