Afreximbank opens office in Barbados as Africa, Caribbean ties deepen

The African Export-Import Bank (Afreximbank) has opened a Caribbean office in Barbados as it moves to promote and develop trade between Africa and the Caribbean.

The official opening of the CARICOM office reaffirms the US$1.5 billion credit limit made available by Afreximbank to support eligible CARICOM States.  

Speaking at the opening of the office on Friday, Afreximbank president Benedict Oramah said the establishment of the Afreximbank Caribbean office remains critical to facilitating operations of the Bank in the Caribbean Community.

It will bring Afreximbank’s products and initiatives closer to the business community and ensure that the bank rapidly ramps-up operations to promote stronger relations with the Governments in the region towards the pursuit of mutually identified priorities, he said. 

“With the launch of the Caribbean  Office, we can look forward to a smooth implementation of trade and access to finance initiatives, broader business origination across the CARICOM member states and more impactful results from our partnership. We also look forward to Afreximbank subsidiaries finding homes in the CARICOM, especially the Fund for Export Development in Africa, PAPSS [Pan African Payment and Settlement System] and AfrexInsure. Over time, CARICOM and African financial systems will become better integrated for the benefit of our people” Oramah said.

In her remarks, Prime Minister of Barbados, Mia Amor Mottley, said the establishment of the Afreximbank Caribbean office was the culmination of promises made by the bank during the first AfriCaribbean Trade and Investment Forum held in Barbados in 2022. 

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“This is not just a proud moment historically, but it is also a move that makes sense that will benefit our regional private sector and our regional state-owned corporations who need access to a more empathetic, reasonable bank and one willing to take risks that would allow our people to move and grow to the next level,” Mottley said.

She said Africa has been a loyal friend to the Caribbean, referencing the assistance offered through the African Medical Supplies Platform during the COVID-19 pandemic. Africa opened its doors to the Caribbean Community and facilitated access to equipment, therapeutics, and ultimately vaccines, with the payment mechanism facilitated through Afreximbank, Mottley said.

Friday’s launch was attended by Ralph Gonsalves, Prime Minister of St. Vincent and the Grenadines, Phillip Pierre, Prime Minister of St. Lucia, Dickon Mitchell, Prime Minister of Grenada, President Olusegun Obasanjo, former President of Nigeria and chairman of the Intra-African Trade Advisory council, as well as other dignitaries from Africa and the Caribbean community.

In December, the Afreximbank board approved US$1.5 billion funding to enable CARICOM member states that had ratified the partnership agreement with Afreximbank to tap into the bank’s various financial instruments.

As of July 2023, eleven out of the fifteen CARICOM member states had signed the partnership agreement with Afreximbank. The financing will be targeted at supporting critical economic sectors aimed at boosting the development of trade-enabling infrastructure, as well as enhancing trade and investments between Africa and the CARICOM member states, while providing support to small and medium enterprises. The bank has also committed to increase the credit limit to US$3 billion. 

Afreximbank has been pushing to expand into the Caribbean in line with its Diaspora Strategy and the African Union’s designation of the African Diaspora as the continent’s sixth region.

This gave birth to the AfriCaribbean Trade and Investment Forum which debuted in Barbados last year. The second edition of the AfriCaribbean Trade and Investment Forum (ACTIF23) will be held in Guyana in October.

ACTIF23 will focus on consolidating commercial collaboration between the Caribbean region and Africa, for increased inter-regional trade and investment; building on the successes of the inaugural edition that was held in Barbados, in September last year, organisers say.

CARICOM member states attended Afreximbank annual general meetings and 30th anniversary celebrations in Ghana in June.

CARICOM is a grouping of 20 countries—15 member states and five associate members—with a population of 16 million.