Jamaica just unlocked an extra US$1.5 billion by joining this organisation.

In case you missed it, Jamaica recently became the 13th Caricom nation to officially join the Afreximbank. They signed the agreement back in July during the CARICOM Heads of Government meeting.

Afreximbank, which stands for Africa Export-Import Bank, is an investment bank based in Cairo, Egypt. Most countries, including Jamaica, have an EXIM bank. The bank provides access to financing to help businesses grow and expand trade. Especially small and medium-sized companies that might not qualify for funding from large financial institutions.  

Afrexim takes it a step further. In addition to expanding trade across Africa, it also fosters trade between Caribbean countries and Africa. It lends money to governments and businesses so they can buy from and sell to African countries. 

By joining, Jamaica secured an additional US$1.5 billion in financing for the Caribbean, bringing the total available to US$3 billion for the region. 

That’s a lot of money that will help a lot of businesses grow.

Outside of the money, this is a great opportunity for Jamaica and Jamaican businesses. Because the partnership opens up more access to African markets. Several local companies had already started venturing into the continent.

Supreme Ventures has already partnered with South African and Ghanaian companies to bring Cash Pot to those markets. So this partnership will help to facilitate this expansion. 

Businesses will still need to meet some requirements and go through banks or the government to access the funds. NCB Capital Markets has already started helping SMEs get ready for this new opportunity.

Like I said, it’s a big deal. Up to US$3 billion in financing can go a long way in boosting Caribbean-Africa trade. 

And that’s the bottom line.