Mahama Plans Caribbean Push for AfCFTA as AU Chair, Eyes Stronger Africa-Caribbean Trade

President John Dramani Mahama has signalled an ambitious trade agenda for his African Union chairmanship, pledging to champion the integration of Caribbean nations into the African Continental Free Trade Area (AfCFTA)—a move that would represent a significant geographical expansion of the continental trade bloc.

Making the announcement during a state visit to Jamaica on August 3, Mahama outlined how welcoming Caribbean economies into AfCFTA would forge new commercial pathways between Africa and the Caribbean, unlock fresh business opportunities and deepen what he termed "South-South cooperation" between developing regions. Speaking alongside Jamaican Prime Minister Andrew Holness at a joint press conference in Kingston, the Ghanaian leader acknowledged that trade growth requires sustained, deliberate effort rather than overnight transformation.

"We don't kid ourselves that you snap your finger and suddenly our trade volumes will go up," Mahama said, emphasising the need for coordinated investment in infrastructure, logistics networks and expanded market access. He outlined how AfCFTA's existing framework—which harmonises product standards, certifies goods and connects producers with buyers across member markets—could be adapted to accommodate Caribbean participants, reducing trade barriers and streamlining cross-Atlantic commerce.

Digital Payments and Local Currency Settlement

A cornerstone of Mahama's strategy involves leveraging African Union initiatives to establish digital payment systems that would enable countries to settle trades using their own currencies rather than relying on foreign exchange. This shift addresses a long-standing constraint on intra-African trade: dependence on hard currencies. By extension, such mechanisms could benefit Africa-Caribbean transactions, reducing costs and complexity for businesses on both continents.

The president highlighted the simultaneous activation of the Permanent Joint Commission for Cooperation between Ghana and Jamaica as a practical mechanism to monitor progress across trade, investment and other collaborative ventures. This bilateral framework would serve as a testing ground and model for deeper regional integration efforts.

What This Means for Ghana and Africa

Mahama's Caribbean trade initiative reflects a broader strategic vision for his AU leadership: repositioning Africa as an active player in global commerce beyond traditional European and Asian partners. For Ghana specifically, the move aligns with Accra's historical role as a West African trade hub and its existing investments in port infrastructure and logistics.

The AfCFTA, which launched in 2021 and now comprises 54 African nations, has faced implementation challenges including inadequate transport links, non-tariff barriers and limited awareness among small businesses. Extending it to the Caribbean—a region of approximately 45 million people with established shipping routes to West Africa—could accelerate goods movement and create new export channels for Ghanaian agricultural, manufacturing and service sectors.

Caribbean economies, many dependent on tourism and agricultural exports, would gain access to a 1.3-billion-person African market. For African producers, Caribbean nations offer gateway access to North American supply chains and markets. However, success hinges on the practical challenges Mahama identified: upgrading ports, reducing shipping costs and harmonising regulatory standards across vastly different economic systems.

The proposal also carries symbolic weight, reinforcing Pan-African cooperation and strengthening ties with diaspora communities and fellow developing nations. Whether the AU, under Mahama's leadership, can negotiate Caribbean participation and overcome institutional barriers remains uncertain—but the ambition signals a willingness to think beyond traditional continental boundaries.