Africa pledges US$3 billion in investments in CARICOM amid global uncertainty
Published:Monday | July 28, 2025 | 5:32 PM
African institutions are now driving billions in investment into the Caribbean, subtly shifting the axis of influence from the West and China.
These investments come as the United States, the world’s largest economy, pivots inward.
In the process, it’s reshaping the global landscape and creating space for increased regional partnerships.
On the surface, trade between both regions is minuscule, but the African Export-Import Bank (Afreximbank) remains ready to double its disbursements to US$3 billion in the short term.
“CARICOM (Caribbean Community) trade with the continent must grow from the current levels of less than 3.0 per cent of our overall trade, particularly with the uncertainty that looms over trade with traditional partners,” said CARICOM Secretary-General, Dr Carla Barnett, on Monday during the opening of the Africaribbean Trade and Investment Forum 2025 (ACTIF2025), held under the theme of Cooperation in an Era of Global Uncertainty.
Barnett said in her address at the Radisson Hotel in Grenada that the region convenes at a time of heightened geopolitical tensions, with some questioning the purpose of the multilateral system.
CARICOM has committed to working side by side with the African Union.
On Monday, Pamela Coke-Hamilton, Executive Director of the International Trade Centre, an agency of the United Nations, forecast that inter-regional trade could reach US$2.9 billion annually within five years—provided that tariffs and other barriers are reduced.
A key part of that drive is Afreximbank’s disbursement of US$1.5 billion from its pledged US$3 billion credit facility to the Caribbean, signalling tangible progress in Africa-CARICOM trade and investment ties.
Vincent Musumba, Communications and Events Manager at Afreximbank, made the announcement on Sunday during a press conference ahead of the forum.
Musumba underscored the urgency of converting cultural ties into economic engagement.
“Trade between Africa and the Caribbean remains below 1.0 per cent despite deep historical and cultural bonds. Afreximbank’s mandate is to reverse that trend,” said Musumba, whose estimate trails CARICOM’s more optimistic figure.
This year marks the fourth ACTIF conference.
The inaugural event in Barbados generated US$2 billion in opportunities; the second in Guyana yielded US$551 million, excluding oil deals; and the third in the Bahamas produced US$4 billion in potential business.
Expectations remain high for a robust deal pipeline this year, said Musumba.
Founded in 1993, Afreximbank aims to expand trade among Africa, the Caribbean, and other regions of African descent.
The bank reports US$28 billion in loans and US$37 billion in assets, with a strong capital adequacy ratio of 26 per cent as of March 2025.
However, earlier in July, Fitch and Moody’s downgraded the bank by one notch—still within the B rating category.
Fitch flagged “the rise in the bank’s non-performing loans ratio, which exceeded the 6.0 per cent threshold.”
Moody’s expressed concern that “the bank’s recent shift to unsecured lending to sovereigns under stress has introduced significant risks, diverging from its typical focus on trade finance, and heightened its sensitivity to its difficult operating environment. Sovereign lending to Ghana and Zambia poses capital risks.”
Asked to respond, Musumba sidestepped the ratings critique but said: " the bank was formed by African nations—it would be disingenuous not to support the very countries that built its foundation. He noted that funding remained available across both public and private sectors.
The conference continues with sessions on Africa’s trade fair ambitions and panel discussions on innovation, tourism, air and sea transport, logistics, and cultural exchanges.
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