- NEWSDAY.CO.TT - A la Une - 31/Jul 03:30

Growing African connections

FOR the past 23 years, the Trans-Atlantic Trade and Investment Symposium has championed the conversation of creating and expanding trade linkages between Trinidad and Tobago, Africa and the rest of the African diaspora. Like many symposiums, the Trans-Atlantic Trade and Investment Symposium combines discussions with opportunities to network and develop relationships between businesses in TT and across the Atlantic. The symposium has also hosted several thought leaders from TT and Africa, including chamber presidents, mining and agriculture representatives, the World Bank and delegations from South Africa, Uganda, Nigeria, Ghana and other African countries. This year, among the speakers is chief executive officer (CEO) of the Africa Business Group Michael Sudarkasa. In a conversation with Business Day at the Hyatt Regency in Port of Spain on July 29, Sudarkasa highlighted the growing connections between TT, the Caribbean and African nations. Sudarkasa, however, said the two regions are barely scratching the surface of the possibilities and opportunities available to the Caribbean and Africa. He said with several major economies and markets shifting from globalisation to protectionism, many countries are now changing the way they are looking at trade relationships. An open opportunity for both regions The trade relationship between TT and Nigeria dates back as far as 1962, but has only seen a significant strengthening of ties over the last few years. According to the Organisation of Economic Complexity (OEC), the trade between Nigeria and TT was minimal. The main products exported from Nigeria to TT was float glass, while TT exported goods including iron pipe fittings, broadcasting equipment and used clothing. Nigeria is considered an emerging market with a growing economy and a wide range of sectors. It was ranked as the 27th largest economy in the world, in terms of nominal GDP and the 24th largest in terms of purchasing power. Nigeria is the largest economy in Africa. Earlier this year, in April, then minister of foreign and Caricom affairs Amery Browne, along with then minister of transport Rohan Sinanan participated in a ceremony for the signing of a bilateral air service agreement between the TT government and the government of the Federal Republic of Nigeria. The agreement was the first of its kind between the two countries. It was expected to pave the way for expanded air travel, increased trade and mutual economic growth and cultural exchange. Sudarkasa highlighted opportunities for TT to take part in several of these emerging markets including the energy market, tech, AI development and even movies. "We are barely scratching the surface of what our trade relationship could be," he said. "The apparel opportunity is there, the expansion of trade in petrochemicals in the energy space. "We have gotten a lot of solar installation on the continent, and this is a relatively energy rich country, but if we are talking about greening TT, there is an opportunity for that." [caption id="attachment_1169367" align="alignnone" width="1024"] AIR LINKS WITH NIGERIA: Former Minister of Works and Transport Rohan Sinanan, left, and Nigerian Aviation and Aerospace Development Minister Festus Keyamo sign a bilateral air services agreement between the countries at the Piarco Airport VIP Lounge on April 14. - Photo by Paula Lindo[/caption] He added that there was also an opportunity for TT to expand its tourism industries, not only for leisure but for industry tourism as well. "You could have conferences here, if there is a flight," he said. "You can start recruiting African business bodies, policy bodies and so on to meet here in TT. "You can start talking about issues related to South-South co-operation. That will result in hotel development and real estate development. "Because of the energy source and the low cost of energy, you could build a data centre here for AI development and become a regional tech hub with the idea of collaborating with African countries that have tech, Nigeria being one of them." He also noted that Nigeria’s establishment of special economic zones brings more opportunities for trade. "You can bring companies who are in the special economic zones in Nigeria to look at having this be their hub for expansion into South America and other parts of the Caribbean." For Nigeria, the opportunity in TT lies in access to other markets. Sudarkasa said TT, being the last in the Caribbean archipelago, has great gateway potential for the Caribbean and South and Central America. "I bring my things here, if there is a direct line, then I set up and I look at shipping lines, I look at airlines for export into South America for products I may have. "If I am in a tourism business, there is a whole new market that would be opened up for me to carry people and to explore, not just in the Caribbean but in South America, Brazil and more." Speaking recently at a event, Minister of Planning and Development Kennedy Swaratsingh said the TT government is putting a focus on extending its reach, not only across the Atlantic but in several global markets. He said trade relations with other markets would benefit businesses as well as give TT access to strategies and technology to move forward. "We are interested in different markets, both south-south in terms of Brazil, Argentina and the South American markets and across the Atlantic. Our intention is to be able to develop approaches so businesses in TT can find markets they can export to as well as to create partnerships. Part of what you want to do as well is bring best practices and capacity locally." Former minister in the Ministry of Finance Brian Manning also agreed that expanding TT's reach to African countries would redound to benefits for TT overall. "It would be good for TT to try to broaden access to international markets, including those of both Africa and India. Those are billion-person markets each. We can't just keep looking to the west. There is a big world out there and there are several countries where we can find a niche." An ocean between us Despite the vast opportunities for trade between TT and Nigeria and by extension the Caribbean and Africa there is just one little thing that is standing in the way – the Atlantic Ocean. At the 21st annual Trans-Atlantic Trade and Investment Symposium held at the Hilton Trinidad, Port of Spain, Caribbean Airlines Ltd (CAL) officials explained that despite a 400-year history of transporting people from the African continent to the Caribbean by boat as slaves, it would be too costly to move freely move people across the Atlantic by plane. Aylette Wright-Paul and Herbert Ghent said in 2019 there were 61 people moving between TT and Ghana. Travel agents later told Business Day in order for flights across the Atlantic to be profitable they would have to be at an 85 per cent capacity. CAL’s fleet is complemented by Boeing 737 Max 8s which has a maximum flight range of 3,550 nautical miles. The distance between Ghana and TT is 3,923 nautical miles, while the distance between Nigeria and TT is 4,447 nautical miles. [caption id="attachment_1169432" align="alignnone" width="1024"] On July 29, the second day of the AfriCaribbean Trade and Investment Forum (ACTIF2025) in Grenada, a symbolic tree-planting ceremony was held to honour Professor Benedict Oramah, outgoing president of the African Export-Import Bank (Afreximbank), for his enduring contributions to Africa-Caribbean relations.Seen in this photo is Grenada PM Dickon Mitchell (second from left), Professor Benedict Oramah and representatives of the Afreximbank.Photo courtesy Afreximbank. -[/caption] Planes capable of trans-Atlantic travel are the Boeing A330-200, which costs about US$238 million and the Boeing Max 777-8 which costs US$410.2 million. But Sudarkasa said it is time to take another look at the possibilities that could come out of crossing the Atlantic, noting that TT is already established as a hub for Caribbean Airlines to take visitors to all other countries. "There are multiple opportunities on the table," Sudarkasa said. "One is to extend for South African Airways, the ability to come from Sao Paulo, Brazil, directly to TT, because there is already a flight from South Africa to Brazil. Now, people from Southern African countries and Eastern Africa could all come from that way. "From a tourism standpoint, if TT were to say we are your gateway to the Caribbean, you can have West Africans who are finding it harder and harder to go to the US and Europe. So, if we had a carrier that could go straight to TT, you will get the action. "That is not just for the Caribbean, that is for South America as well. I could stop here and carry on to Colombia or Venezuela or even Mexico." He said it would take a certain amount of enlightenment, but it would have to also be buttressed by data. "I think, whoever was thinking about it before missed the fact that if I am in the Caribbean, our market is only so large. "If I have the opportunity to take my product to a multi-million dollar or multi-million person market, I will get on that plane." He also said there was a heritage value for direct flights to African countries, with people from both sides of the Atlantic willing to see where their ancestors came from, or where they went to. "So, whenever that happened, when the CAL leadership didn't feel like it could happen. I would say, look at it again. If you're always looking at the markets, the markets are shifting, and they're making this an opportunity." Minister of Trade Satyakama "Kama" Maharaj, who had returned from a trade mission to Ghana just before being sworn in, told reporters at his swearing-in that Africa was in his plans for growth in trade for TT. "Our problem is we are a small country. I didn’t start Sacha in a fashion hub – New York or Paris or LA or Milan – in a little country. And when you grow, you soon run out of markets. You soon run out of people to sell to. We (TT) have to expand. We’re not in a big country, right? So opening markets, and I think one of the biggest markets we have to explore is Africa," he said. "They want to do business with us and we should be focused. West Africa is 470 million people. Republic Bank has 42 branches in Ghana and a base over there. It takes two days to get to Ghana, but a big airbus can go in eight hours, straight across. "If you cannot visit, you cannot do business," he said. "We have to open that market and negotiate. They have a similar agreement, same body like over there. I don’t know their name, but we should be forging a duty-free agreement with them. And we’ll have to open factories all over the place to manufacture for that market." Africa - opening doors while others build walls The opportunities for trade and transport between TT and Nigeria come at a significant time, when, instead of opening gateways for trade and communication, it seems the world is putting up walls and barriers to globalisation. Aside from the rash of tariffs imposed by the US on the rest of the world on April 2, TT nationals are now also required to pay an extra US$250 (about TT$1,750) on top of their visa fee of US$185, to enter the US, a side effect of President Donald Trump’s Big Beautiful Bill act which came into effect on July 4. TT nationals also need a visa to visit or transit the UK effective March 12, 2025. Locally, political leader of the Movement for Social Justice David Abdulah suggested in a media conference that TT should also engage in imposing tariffs, to protect fledgeling and developing industries. But Sudarkasa suggested that protectionist strategies may be counter-intuitive, especially for a smaller economy. "I think what happens when you put up tariffs, is you almost incentivise or instigate other countries to put up tariffs of their own. "Then you will have to ask yourself: do we win as a smaller nation? Can we afford to have tariffs imposed on us?" He said instead, what would help TT and the rest of the Caribbean is if there are other larger markets that are willing to open its doors for trade partnerships. "That’s worth pursuing," he said. "There's only so many bodies in the region that one can sell to, whereas, in other parts of the world that may be interested in trading with you, you've got millions of people." He said African nations are seeking opportunities to open its doors while global and geopolitical shifts are prompting other places to seek protectionist strategies. "It almost seems like we are in a semi retreat from globalisation, where your value chain and your supply chain is a global one," he said. "(But) if you look at what is happening in the African continent, there is a desire to extend value chains across the continent, to open up the markets for the development of a bigger unified market." He said geopolitical shifts are also driving change in how people think of its "strategic partners." He said people are rethinking how to expand their networks to be in other parts of the world and work with people in other parts of the world. "That is creating the impetus for greater African-Caribbean trade and investment," he said. "I think that’s a good thing." "Fundamentally, we need more exposure. The people who might want to trade, need more exposure to the other markets, because that that has been missing over centuries."   The post Growing African connections appeared first on Trinidad and Tobago Newsday.