Jamaica Accedes to Partnership Agreement Between CARICOM and Afreximbank

Jamaica has officially acceded to the partnership agreement between the Caribbean Community (CARICOM) and the African Export-Import Bank (Afreximbank), with the signing a memorandum of understanding (MOU) on July 8.

The ceremony was held at Half Moon in Rose Hall, St. James, as part of the 49th Meeting of the Conference of Heads of Government of CARICOM, being held in Jamaica from July 6 to 8.

The signing now formalises Jamaica’s participation in the agreement, which aims to expand financing opportunities and strengthens economic ties between the Caribbean and Africa.

Jamaica’s participation in the partnership agreement adds an additional US$1.5 billion financing from Afreximbank to CARICOM. Combined with previous commitments secured through other member States, the total available financing for the region now stands at US$3 billion.

Prime Minister, Dr. the Most Hon. Andrew Holness, witnessed the signing of the MOU alongside President and Chairman of the Board of Directors of Afreximbank, Professor Benedict Oramah.

The signing was done by Minister of Foreign Affairs and Foreign Trade, Senator the Hon. Kamina Johnson Smith, and Afreximbank’s Acting Chief Operating Officer of the Caribbean Office, Okechukwu Ihejirika.

“This is instrumental in paving the way for the Bank’s commitment of increased resources to the region,” Dr. Holness said.

“We must now work to create practical mechanisms for trade, including settlement and local currency, promoting processing on regional stock exchanges and harmonising standards to reduce nontariff barriers,” he added.

Dr. Holness noted that the region’s private sector and financial institutions will have a key role to play in deepening linkages, adding that this is not just through funding, but innovation in FinTech, small and medium-sized enterprise (SME) financing and diaspora bonds.

For her part, Senator Johnson Smith pointed to the years of preparatory work that preceded the signing.

She said Jamaica’s formal association with Afreximbank will foster transformative economic collaborations, particularly in the areas of tourism, health, renewable energy, trade, agriculture, air connectivity, and private-sector development with a special focus on micro, small, and medium-sized enterprises (MSMEs).

“The Partnership Agreement will create a platform for sustained dialogue, partnership and cooperation that will serve to strengthen intra-regional trade in CARICOM and increase commercial ties between the Caribbean and Africa,” the Minister said.

“The presence of the African bank in the Caribbean region will undoubtedly and is undoubtedly contributing to further unlocking the economic and social benefits of the CARICOM Single Market and Economy (CSME), exactly at the time when this is required,” she noted.

Senator Johnson Smith said that studies are already showing considerable trade potential between the Caribbean and Africa, adding that she is confident that the agreement will strengthen the foundation for bilateral trade and investment ties between the two regions.

“I thank the Afreximbank team for the assistance it is already providing to the countries of the Caribbean region, and Jamaica looks forward to working closely with you,” Mrs. Johnson Smith said.

In the meantime, Professor Oramah hailed Jamaica’s accession as a milestone in realising a united and prosperous Global Africa through South-South collaboration.

He said the Bank is committed to supporting Jamaican businesses with financing solutions, trade facilitation tools, and investment opportunities to access African markets.

Professor Oramah indicated that Afreximbank has undertaken initiatives in the region, including the annual Afri-Caribbean Trade and Investment Forum (ACTIF) as well as more than US$1 billion in concluded transactions across the Caribbean.

“We are also very interested in strengthening Jamaica’s financial system by collaborating with local banks through the Bank of Jamaica to enhance foreign currency liquidity and support public and private investments,” he said.