Segun Ajayi-Kadir, the Director General of the Manufacturers Association of Nigeria (MAN), delivered a compelling address at the Africa Caribbean Sustainability and Investment Summit 2024, held at the prestigious House of Lords in London. The summit brought together key stakeholders to discuss ways to enhance the economic ties between Africa and the Caribbean, with a particular focus on fostering industrial growth through stronger business collaborations.
In his address, Ajayi-Kadir highlighted the vast potential that lies untapped in the Africa-Caribbean trade corridor. He noted that despite shared historical ties and cultural connections, trade between the two regions has remained disappointingly low. As of 2023, Africa-Caribbean trade was valued at only $910 million, a mere fraction of the regions’ global exports. This, he argued, represented a missed opportunity for both sides to leverage their manufacturing capabilities to drive economic transformation.
Ajayi-Kadir pointed out that, globally, industrialisation is a cornerstone of sustainable economic growth. It fosters productivity, creates jobs, enhances skills, drives innovation, and improves income levels, ultimately leading to a higher quality of life. He referenced global industrial powerhouses such as China, the United States, Germany, and India, which have used robust manufacturing sectors to achieve substantial economic success. These countries account for approximately 60% of global manufacturing output, underscoring the vital role that industrialisation plays in their economies.
For Africa, the industrial giants in manufacturing value-added include Nigeria, South Africa, Egypt, Morocco, and Algeria. In the Caribbean, nations such as the Dominican Republic, Haiti, and Trinidad and Tobago have also made strides in manufacturing, although their collective manufacturing value-added remains far lower than that of Africa’s leading countries. However, Ajayi-Kadir cautioned that despite these successes, both regions have largely depended on commodity exports, which place them at the bottom of the global value chain.
The lack of preferential market access and high tariffs were identified as two major barriers preventing greater trade between Africa and the Caribbean. Ajayi-Kadir pointed out that both regions lack a free trade agreement, which has led to high tariffs on key exports, such as food, beverages, and textiles. African exports to the Caribbean face tariffs of up to 28%, while Caribbean exports to Africa are hit by tariffs as high as 27%. These high costs make it more difficult for both regions to compete globally and hinder industrial growth.
Furthermore, the underdeveloped infrastructure and inefficient customs services in many countries in both regions exacerbate the problem. Transport costs remain a significant barrier, as poor infrastructure adds to the logistical challenges, increasing the cost of trade and reducing competitiveness. Ajayi-Kadir stressed that improving infrastructure and streamlining customs processes are crucial to unlocking the potential of the Africa-Caribbean trade corridor.
Ajayi-Kadir’s call to action was clear: to realise the full potential of Africa-Caribbean collaboration, both regions must pursue a private-sector-driven agenda, supported by strong political leadership. He argued for the creation of an Africa-Caribbean Free Trade Area (ACFTA), which would promote greater economic integration, reduce trade costs, and improve market access. He also pointed to the success of the African Continental Free Trade Area (AfCFTA) as a model for fostering inter-regional collaboration. The operationalisation of AfCFTA has already demonstrated the positive impact of trade agreements on economic growth and integration, and Ajayi-Kadir urged the Caribbean to take similar steps to create a cohesive economic framework for collaboration.
David Fitzgerald Roberts at the African Caribbean Sustainability and Investment Summit Segun Ajayi-Kadir, Director General of the Manufacturers Association of Nigeria
In conclusion, Ajayi-Kadir emphasised that the time for Africa and the Caribbean to move beyond their dependency on commodity exports is long overdue. By focusing on industrialisation, investment in domestic manufacturing, and strengthening trade ties, both regions could transform their economies and become global industrial players. He concluded with a powerful message, stating that if the forced transport of Africans across the ocean through the slave trade had shaped history for 400 years, the 21st century should see the transportation of goods and services across the same ocean, creating a new era of collaboration.
Ajayi-Kadir’s speech was a clarion call for action, urging all stakeholders to come together to forge a new path for Africa and the Caribbean—one that is built on industrialisation, collaboration, and mutual prosperity.
