By Deandrea Hamilton | Editor

For years, Caribbean families have endured relentless increases in the cost of food, fuel, housing and everyday essentials. Now, one of Africa’s leading financial institutions says the worst of those inflationary pressures may finally be easing.

The African Trade Report 2026, published by the African Export-Import Bank (Afreximbank), shows inflation across Latin America and the Caribbean fell sharply from 16.6 percent in 2024 to 7.6 percent in 2025. The report compares economic performance across the world’s major regions, placing Latin America and the Caribbean alongside Africa, Asia, Europe and advanced economies.

The figures suggest regional price pressures have moderated considerably after several years of high inflation driven by supply chain disruptions, rising energy costs and global economic uncertainty.

Consumers, however, should not expect prices to suddenly return to pre-pandemic levels.

Economists note that lower inflation does not mean goods and services become cheaper. Rather, it means prices are continuing to rise, but at a much slower pace than before. That distinction helps explain why many Caribbean households may still feel the strain at the supermarket, petrol station and on utility bills despite improving economic indicators.

The report also points to a relatively stable regional economy. Gross domestic product growth for Latin America and the Caribbean held steady at 2.4 percent in both 2024 and 2025, suggesting economic expansion continues, albeit at a modest pace.

For Caribbean governments, the findings provide cautious encouragement. Lower inflation can reduce pressure on household budgets, improve consumer confidence and give central banks greater flexibility as they balance economic growth with price stability.

Perhaps most intriguing is the source of the analysis.

Rather than coming from a traditional Western financial institution, the assessment comes from Africa’s premier trade finance bank. The report treats Latin America and the Caribbean as an important global economic region and repeatedly highlights the growing importance of ties between Africa and its diaspora, including the Caribbean. It argues that stronger economic, trade and investment relationships across what it calls “Global Africa” could become a powerful driver of shared prosperity in the years ahead.

For Caribbean readers, the report offers more than encouraging inflation figures.

It provides an outside perspective on the region’s economic performance and serves as a reminder that the Caribbean is increasingly being viewed not only as a tourism destination, but also as an emerging partner in trade, investment and global development conversations.

As governments continue searching for ways to ease the cost of living, Africa’s latest economic report suggests there is at least one reason for cautious optimism: the pace of price increases across the Caribbean is finally beginning to slow.

By Deandrea Hamilton | Editor

What would happen if the Caribbean started spending more with Africa?

That question is no longer hypothetical. It’s the vision behind a growing movement that sees the Caribbean not just as a neighbor of the Americas, but as a key partner in the rise of a “Global Africa.” With shared history, deep cultural ties, and emerging trade frameworks, experts say the potential is enormous—if the will to act finally matches the passion of the speeches.

Billions on the Table

Today, trade between Africa and the Caribbean sits at just over US $729 million annually. But the International Trade Centre (ITC) and Afreximbank project that number could balloon to US $1.8 billion per year by 2028—more than doubling in just a few years.

This boost is expected to come not just from commodities, but increasingly from services, particularly in transport, travel, food exports, and creative industries. Two-thirds of that growth, according to analysts, could come from services alone—sectors where the Caribbean is eager to expand. (afreximbank.com).

Meanwhile, Africa’s consumer and business spending is forecasted to skyrocket to US $6.66 trillion by 2030, driven by a population boom and rising middle class.

The Case for a New Trade Axis

The Caribbean imports 80% of its food, but many of those goods can be sourced from African markets. What we offer in return? World-class logistics, tourism know-how, financial services, and proximity to the U.S. market. It’s a natural fit—one that is currently underdeveloped.

The recent call by Grenadian Prime Minister Dickon Mitchell for a “Global Africa Commission” underscores this urgency. He urged stakeholders at the Afreximbank Trade Expo to stop the cycle of empty talk and get to work: building shipping routes, finalizing trade agreements, and boosting knowledge of what each region actually has to offer.

“We will not leave here with another communiqué,” Mitchell continued. “We will leave here with a commitment to act, to build together, to trade together, to succeed together and rise together.”                                                                                                                                                                                                   The statement underscored a central theme of the summit — that both Africa and the Caribbean can no longer afford to admire the idea of unity; they must operationalize it.Pilot platforms like the Pan-African Payment and Settlement System (PAPSS) are already simplifying how cross-border payments work between African countries—and could extend to Caribbean partners. The system removes the need for U.S. dollars in trade between African nations, creating space for sovereign empowerment.

What’s the Hold-Up?

Let’s be blunt: political will, slow bureaucracies, and lack of coordination are stalling real action. Despite a decade of “Africa–Caribbean unity” talk, less than 3% of CARICOM trade currently involves the African continent. That fact continues to undermine these brave speeches and ambitious notions.

Where Caribbean Consumers Fit In

Caribbean consumers—especially the younger, tech-savvy generation—are already looking for affordable, ethical, and culturally relevant goods. African markets offer exactly that. Redirecting even a fraction of spending toward African-made clothing, beauty products, tech tools, or agro-processed foods could start a real trade revolution.

Bottom Line

If the political leaders won’t build the bridge fast enough, maybe Caribbean consumers will. The money is there. The interest is rising. Now it’s time to turn the “Global Africa” vision into a real economic shift—one shopping cart at a time.

Washington, D.C. – April 25, 2025 — In a major diplomatic breakthrough, the Governments of the Democratic Republic of the Congo (DRC) and the Republic of Rwanda today signed a Declaration of Principles aimed at paving the way for peace, stability, and economic integration in eastern DRC. The ceremony, hosted by U.S. Secretary of State Marco Rubio, marks a significant step forward in efforts to resolve longstanding tensions between the two neighboring countries.

Foreign Minister Thérèse Kayikwamba Wagner signed on behalf of the DRC, while Foreign Minister Olivier Nduhungirehe signed for Rwanda. They were joined by Deputy Secretary of State Christopher Landau, Senior Advisor for Africa Massad Boulos, and U.S. Ambassador to the DRC Troy Fitrell.

The signing ceremony builds on the efforts of the African Union and other regional leaders who have long sought to address the complex and often violent conflict in the Great Lakes region. The Declaration of Principles establishes a framework for restoring normal bilateral relations between Rwanda and the DRC, reinforcing commitments to sovereignty, territorial integrity, security cooperation, and regional economic development.

“This is a pivotal moment,” Secretary Rubio said. “The United States is honored to support Rwanda and the DRC as they take this courageous step toward lasting peace and shared prosperity.”

The Declaration outlines key areas of cooperation, including mutual recognition of each country’s sovereignty and established borders, the peaceful resolution of disputes, and the prohibition of interference in internal affairs. It emphasizes the urgent need to address security threats posed by non-state armed groups operating along the shared border and commits both governments to refrain from providing support to such groups.

To enhance security, the two nations agreed to explore the creation of a joint security coordination mechanism aimed at combating armed groups and criminal organizations. This cooperation is viewed as essential not only for stability but also for expanding legitimate trade and broader economic collaboration across the region.

In an ambitious economic vision, Rwanda and the DRC pledged to develop a phased regional integration framework, building on organizations like the International Conference on the Great Lakes Region (ICGLR), the Common Market for Eastern and Southern Africa (COMESA), and the East African Community (EAC). They plan to link this framework with U.S.-supported investments in infrastructure, hydropower, mineral supply chain transparency, and national park management.

The Declaration also addresses the humanitarian crisis caused by ongoing conflict. Both countries committed to working with UN agencies to facilitate the safe and voluntary return of internally displaced persons (IDPs) and refugees.

In addition, the two countries reaffirmed their support for the UN peacekeeping mission MONUSCO and other regional mechanisms, ensuring protection for civilians and facilitating the implementation of the principles outlined in the Declaration.

Finally, in alignment with ongoing initiatives such as the Nairobi and Luanda processes, the two governments committed to drafting an initial Peace Agreement by May 2, 2025. Any disputes arising from the draft will be addressed through a Foreign Minister-level meeting in Washington, D.C., hosted by the U.S. State Department.

Signed in duplicate in English, today’s agreement marks a hopeful new chapter in Rwanda-DRC relations, offering a potential blueprint for peace and development across one of Africa’s most conflict-affected regions.