Africa meets the Caribbean: Booming investment, bold promises and cautions

Since 2023, a new financial and diplomatic current has been flowing across the Atlantic, reconnecting Africa and the Caribbean in ways not seen since the post-colonial push for solidarity. What began as a symbolic call for South-South cooperation has matured into tangible investment deals, forums, and multi-billion-dollar financing agreements. From energy to tourism, from logistics to infrastructure, African capital is entering Caribbean markets. But behind the optimism lies a chorus of warnings from economists in both regions urging leaders to match bold promises with real safeguards.

𝐀𝐟𝐫𝐞𝐱𝐢𝐦𝐛𝐚𝐧𝐤 𝐒𝐭𝐞𝐩𝐬 𝐈𝐧

At the heart of this renewed alliance is the African Export–Import Bank, or Afreximbank. In 2023, the bank opened its first Caribbean office in Bridgetown, Barbados, marking a significant institutional milestone. The move was designed to help operationalize trade and development deals across CARICOM. Since then, Afreximbank has approved more than 700 million US dollars in financing for countries including Barbados, Saint Lucia, Suriname, Grenada, and The Bahamas, with over 2 billion more in the pipeline.

𝐓𝐫𝐚𝐝𝐞 𝐅𝐨𝐫𝐮𝐦𝐬 𝐅𝐮𝐞𝐥 𝐀𝐦𝐛𝐢𝐭𝐢𝐨𝐧

This activity is largely organized around the AfriCaribbean Trade and Investment Forum, or ACTIF. Hosted in Barbados in 2022 and Guyana in 2023, ACTIF has become a hub where public officials, private investors, and development agencies come together to structure investment opportunities and deepen bilateral relations. Deals span energy, tourism, fintech, and supply chain infrastructure, with African and Caribbean businesses now seeking ways to tap into shared cultural ties and economic synergies.

One of the most significant outcomes to date is a one billion dollar oil services financing agreement between Afreximbank and Guyana. As Guyana scales up its offshore production, African companies, particularly from Ghana, Nigeria, and Egypt, are being positioned to provide engineering, logistics, and technical support.

Barbados has secured what government sources estimate to be a 2 billion dollar opportunity pipeline linked to African cooperation, and The Bahamas entered discussions in 2024 that could unlock as much as 4 billion in African-related investments. Guyana itself announced over 550 million in deals during 2023 alone.

𝐂𝐚𝐫𝐢𝐛𝐛𝐞𝐚𝐧 𝐄𝐜𝐨𝐧𝐨𝐦𝐢𝐬𝐭𝐬 𝐑𝐚𝐢𝐬𝐞 𝐭𝐡𝐞 𝐀𝐥𝐚𝐫𝐦

On the surface, the partnership looks transformative. But as the financial pledges mount, economists in both Africa and the Caribbean are urging a closer look at the fine print.

In the Caribbean, the most common concern is that the flood of financing and investment talk is far outpacing actual trade activity. African exports to the Caribbean account for less than 0.1 percent of the region’s total imports. The movement of goods, services, and people between the two regions remains limited, constrained by weak logistics, sparse maritime and air connectivity, and few harmonized regulatory frameworks.

“Stronger ties with Africa are urgent,” said CARICOM Secretary-General Carla Barnett at ACTIF 2023. “But urgency must not come at the cost of realism.” Caribbean analysts warn that while the financial frameworks are impressive, actual benefits to local populations have been slow to materialize.

Meanwhile, the International Monetary Fund’s 2025 outlook for the region flagged deeper vulnerabilities: sluggish productivity growth, declining potential GDP, and worsening fiscal fragility. Economists caution that capital inflows, if not properly monitored, could reinforce existing inequalities or result in round-tripping of funds, where profits leave the region as fast as they arrive.

Criticism is also growing around the transparency of these deals. While regional governments are eager to announce funding arrangements, few offer detailed public disclosures of how money is spent, which sectors benefit, or whether local businesses and workers are being meaningfully included.

African economists have also begun raising red flags. The Mo Ibrahim Foundation, in its latest development outlook, called for smarter money, warning that both Africa and the Caribbean are vulnerable to capital mismanagement, illicit financial flows, and political bottlenecks.

Africa’s own investment climate has deteriorated in recent years. A report in The Economist in early 2025 described it as “at its worst in years,” highlighting high debt, currency instability, and inflation as major constraints. That raises concerns about how long African countries can sustain large-scale outbound financing while facing domestic fiscal pressure.

𝐋𝐨𝐜𝐚𝐥 𝐁𝐞𝐧𝐞𝐟𝐢𝐭𝐬, 𝐨𝐫 𝐉𝐮𝐬𝐭 𝐁𝐢𝐠 𝐁𝐮𝐬𝐢𝐧𝐞𝐬𝐬?

Within the Caribbean, concerns have also turned toward social and community impact. Development projects tied to foreign capital often bypass local suppliers, and labor shortfalls mean high-skilled positions are frequently filled by imported workers. In countries like Guyana and The Bahamas, communities are beginning to ask whether these partnerships are building inclusive economies or simply expanding elite capital networks.

Even logistics are a point of contention. Port infrastructure is patchy, shipping lanes are underdeveloped, and direct flights between the regions are rare. Without better transportation links and market integration, critics warn the investments will remain highly centralized and miss their broader development potential.

Nevertheless, there are reasons for cautious optimism. Both regions face parallel challenges, climate vulnerability, small market size, youth unemployment, and the need for digital transformation. If structured properly, African-Caribbean investment partnerships could become engines for green energy, fintech, education, and inclusive trade.

Moreover, the cultural familiarity between the two regions, strengthened by centuries of shared heritage and a vibrant diaspora, gives the partnership an intangible but powerful foundation.

𝐃𝐢𝐚𝐬𝐩𝐨𝐫𝐚 𝐏𝐨𝐭𝐞𝐧𝐭𝐢𝐚𝐥 𝐚𝐧𝐝 𝐭𝐡𝐞 𝐑𝐨𝐥𝐞 𝐨𝐟 𝐀𝐟𝐫𝐞𝐱𝐢𝐦𝐛𝐚𝐧𝐤

Diaspora capital is increasingly seen as a key to unlocking this potential. Remittances into both regions total tens of billions each year, but that money largely fuels consumption rather than investment. New platforms are emerging to convert diaspora interest into venture capital and business formation, but coordination remains weak.

Afreximbank continues to play a central role, offering not only capital but technical support, deal facilitation, and legal structuring. The bank’s regional office in Barbados is working closely with CARICOM leaders to ensure funds are properly deployed and results are monitored. Still, as even Afreximbank officials admit, this is a long-term play. Changing trade routes, building trust, and embedding governance safeguards takes years, not summits.

Ultimately, African investment into the Caribbean may very well reshape both regions, but only if expectations are matched by accountability. The political symbolism is strong, the financial appetite is clear, and the vision of South-South solidarity is powerful. But vision must translate into verifiable progress.

Without that, economists warn, this promising new chapter could end up echoing a familiar Caribbean refrain: bold talk, beautiful banners, and very little left behind when the cameras turn off.

For now, the doors are open, the banks are ready, and the world is watching. What happens next depends not on who signs the biggest check, but who ensures that investment becomes inclusive, transparent, and truly transformative.

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