1. Executive Summary

This report provides a comprehensive analysis of the landmark agreement between the African Export-Import Bank (Afreximbank) and the Government of Barbados, primarily focusing on the establishment of the first Afreximbank African Trade Centre (AATC) outside of Africa. This initiative signifies a pivotal moment in fostering enhanced trade and economic relations between the African continent and the Caribbean region. The agreement involves the Government of Barbados granting a significant parcel of land to Afreximbank for the development of the state-of-the-art AATC in Bridgetown. Afreximbank, in turn, is making a substantial investment in this project, which is envisioned as a hub for trade, investment, and business collaboration between the two regions. Beyond this central agreement, the analysis also encompasses other significant financial commitments and partnerships, including substantial credit lines extended by Afreximbank to the CARICOM region and a collaborative grant agreement with the CARICOM Development Fund aimed at promoting green and sustainable development. The anticipated economic benefits for Barbados are considerable, including the creation of numerous jobs during the construction and operational phases of the AATC, the attraction of foreign investment and valuable foreign exchange, and a potential boost to the vital tourism sector. While the initiative has garnered significant support, some public concerns and political opposition regarding the land grant have been reported and are also considered within this analysis.

2. Background: Afreximbank and its Strategic Interests in the Caribbean

The African Export-Import Bank (Afreximbank) stands as a leading Multilateral Financial Institution on the African continent, with a core mandate to finance and promote both intra- and extra-African trade1. This dual focus underscores the institution's strategic vision that extends beyond the geographical boundaries of Africa, recognizing the importance of fostering economic partnerships with other regions in the Global South. Afreximbank's mission is not confined to the African continent alone; it actively seeks to facilitate trade relationships with countries worldwide, particularly those in the developing world, to foster mutual economic growth and development.

A key element of Afreximbank's broader strategy is its "Global Africa" initiative. This program is specifically designed to strengthen trade relations between Africa and other regions within the Global South, with the Caribbean holding a prominent position in this strategic framework1. The establishment of the AATC in Barbados serves as a tangible manifestation of this initiative, representing a concrete step towards realizing the goals of enhanced connectivity and increased trade flows between Africa and the Caribbean. This project is not merely an isolated undertaking but rather an integral part of Afreximbank's overarching vision to build stronger economic bridges across the Global South.

Further demonstrating its growing commitment to the Caribbean region, Afreximbank established its Caribbean Community (CARICOM) branch in Barbados in August 20236. The opening of this regional office in Bridgetown signifies a deliberate and phased approach by the bank to deepen its engagement with the Caribbean. By establishing a physical presence in Barbados prior to the announcement of the AATC agreement, Afreximbank laid the groundwork for closer collaboration and demonstrated its long-term intentions for the region. This strategic move allowed the bank to better understand the specific needs and opportunities within the CARICOM member states and to build relationships with key stakeholders.

Beyond its physical presence and strategic initiatives, Afreximbank has also made significant financial commitments to the CARICOM region. The bank has extended credit lines totaling US$2.5 billion to CARICOM member states1. This substantial financial commitment underscores Afreximbank's dedication to supporting the development of the Caribbean economies and highlights that the AATC project is not an isolated endeavor but rather part of a larger framework of financial support and engagement aimed at fostering regional growth and integration.

3. The Afreximbank African Trade Centre (AATC) Agreement: A Landmark Initiative

3.1 Date and Location of the Agreement

The groundbreaking ceremony for the Afreximbank African Trade Centre (AATC) took place on March 24, 2025, in Bridgetown, Barbados1. This date marks a significant milestone, representing the official commencement of the construction phase for this landmark project. The event signified the transition from planning and design to the physical realization of the trade center, providing a clear temporal marker for the agreement's implementation. To facilitate the construction of this ambitious undertaking, the Government of Barbados made a notable contribution by granting Afreximbank 6.4 acres (equivalent to 2.037 hectares) of prime state-owned land1. This land is strategically located at Jemmotts Lane in Bridgetown, a site with historical significance as the former headquarters of the Ministry of Health. The provision of this land by the Barbadian government underscores the high level of commitment and the perceived importance of the AATC project to the nation's economic future. Adding a deeper layer of meaning to the chosen location is its history as the site of Barbados' first hospital for emancipated slaves, established in 18441. This historical connection was highlighted by Prime Minister Mia Amor Mottley, who drew a parallel between Barbados' historical role and its future aspirations in trade, referring to the location as a means to "reclaim our Atlantic Destiny"3. This symbolic link between past and future trade relationships adds a profound dimension to the project's significance.

3.2 Nature of the Agreement

The core of the agreement between Afreximbank and the Government of Barbados is the establishment of a state-of-the-art Afreximbank African Trade Centre (AATC)1. This is not a conventional loan agreement or a simple trade finance facility but rather a comprehensive undertaking to create a physical and operational hub designed to stimulate and facilitate trade and investment flows between Africa and the Caribbean. The AATC is envisioned as a mixed-use complex, incorporating a range of facilities and services intended to support various aspects of international commerce and economic collaboration. This long-term strategic investment signifies a deep commitment from both parties to fostering sustainable economic growth and strengthening inter-regional ties.

3.3 Purpose and Objectives

The establishment of the AATC serves distinct yet complementary purposes for both Afreximbank and the Government of Barbados.

For Afreximbank: A primary objective is to establish its first African Trade Centre outside the African continent1. This landmark initiative underscores Afreximbank's strategic ambition to extend its reach and influence beyond Africa, actively facilitating trade relationships with other regions, particularly the Caribbean. The AATC in Barbados is intended to function as the principal gateway for fostering increased Afro-Caribbean trade and investment1. By creating a dedicated platform, Afreximbank aims to provide businesses from both regions with enhanced opportunities for connection, collaboration, and the exploration of new markets. This initiative is closely aligned with Afreximbank's broader "Global Africa" strategy, which emphasizes the importance of strengthening trade ties with countries in the Global South1. The AATC will also house Afreximbank's regional office for CARICOM1. By locating its regional headquarters within this new trade hub, Afreximbank seeks to centralize its operations in the Caribbean, thereby enhancing efficiency, improving accessibility for regional partners, and demonstrating its long-term commitment to the area.

For the Government of Barbados: A key objective for Barbados is to significantly strengthen its economic ties with the African continent, leading to enhanced regional trade and increased investment flows7. The government views this partnership with Afreximbank as a crucial component of its strategy for economic diversification and growth, particularly in light of the evolving global economic landscape. Hosting the AATC is also intended to elevate Barbados' standing as an attractive destination for international financial institutions, thereby boosting its reputation as a prominent hub for both global and regional business activities7. The project is expected to generate substantial employment opportunities for Barbadian citizens, both during the construction phase and in the long-term operation of the AATC1. Furthermore, the initiative is anticipated to attract valuable foreign exchange and significant investment into the Barbadian economy1. The inclusion of a hotel with a significant number of rooms within the AATC complex is specifically aimed at bolstering the supply of hotel accommodations in Barbados, which is considered vital for the continued promotion and growth of the tourism sector1.

3.4 Key Terms and Conditions

A central term of the agreement involves the Government of Barbados providing 6.4 acres of land at Jemmotts Lane to Afreximbank without any cost7. This significant concession from the Barbadian government underscores the high priority and strategic importance it assigns to the AATC project. While this land transfer has been described as a "gift," Prime Minister Mottley has defended this decision as a strategic investment that is expected to yield substantial long-term returns for Barbados6. She has also pointed to historical precedents where similar land donations were made to other international organizations, such as the United Nations and the Caribbean Development Bank, to establish their presence in Barbados6. In return for the land, Afreximbank is committing a substantial investment of US$180 million towards the construction of the AATC1. This represents a significant influx of foreign direct investment into Barbados. The AATC itself will be a comprehensive mixed-use complex, featuring several key components: Afreximbank's CARICOM regional office, a state-of-the-art conference facility, a technology and SME incubator designed to support local entrepreneurship, a Digital Trade Gateway to facilitate online trade and information exchange, a hotel with either 100 or 120 rooms (depending on the source) to boost tourism capacity, a dedicated trade and exhibition centre for showcasing products and services, and modern office spaces available for lease to local, regional, and international financial and policy organizations1. Construction of this vast complex is expected to take approximately 30 months to complete1. Furthermore, the architectural vision for the AATC includes a striking design of twin towers, each reaching 12 storeys in height, although this is subject to final planning approvals and potential restrictions6.

4. Economic Impact and Sectoral Analysis in Barbados

4.1 Impact on the Trade and Investment Sectors

The establishment of the AATC is anticipated to have a profound and multifaceted impact on the trade and investment sectors in Barbados. As a central hub for commerce, the AATC is projected to significantly enhance both intra- and extra-African trade, with a particular emphasis on fostering stronger economic ties with countries in the Global South1. This development could lead to a substantial increase in trade volumes for Barbados and a diversification of its trading partners, opening up new avenues for economic growth. Functioning as a dedicated gateway for Afri-Caribbean trade and investments, the AATC is expected to create numerous opportunities for businesses originating from both Africa and the Caribbean to connect, collaborate, and forge mutually beneficial partnerships1. This enhanced connectivity could attract new businesses and significant investments to Barbados, not only from African nations but also from other regions seeking to leverage Barbados' strategic location as a bridge between these two important markets. A key feature of the AATC is the inclusion of a Digital Trade Gateway. This technological infrastructure will provide crucial trade-related information, facilitate customer due diligence processes, and offer secure digital payment solutions1. By streamlining these essential processes, the Digital Trade Gateway has the potential to significantly reduce barriers to trade, lower transaction costs, and improve overall efficiency for businesses engaged in international commerce. Furthermore, the AATC will house a technology and SME incubator1. This facility is specifically designed to support the growth and development of local enterprises, providing resources, mentorship, and networking opportunities. By fostering innovation and entrepreneurship in trade-related sectors, the incubator could contribute to the emergence of new industries within Barbados and the creation of higher-value jobs, ultimately enhancing the country's economic competitiveness.

4.2 Job Creation and SME Development

The AATC project is poised to generate significant employment opportunities for the Barbados people. During the 30-month construction phase, it is projected that approximately 1,000 direct and indirect jobs will be created1. This temporary surge in employment will provide a valuable boost to the Barbadian labor market in the short term, offering income-generating opportunities across various skill levels. Besides direct employment, the construction phase is also expected to benefit local Small and Medium-sized Enterprises (SMEs). It is estimated that around 50 SMEs will have the opportunity to participate in the project as subcontractors and suppliers of essential construction materials, labor, and other vital services1. This involvement will not only provide these businesses with valuable revenue streams but also enable them to gain experience and potentially expand their capabilities. Upon the completion of the AATC and the commencement of its operations, the facility is expected to create around 300 permanent jobs1. These long-term employment opportunities will contribute to the sustained economic growth of Barbados, providing stable livelihoods for its citizens. The types of permanent jobs created are likely to span various sectors, including hospitality (related to the hotel), business administration (for the Afreximbank office and other tenants), trade facilitation, and technology (related to the incubator and digital gateway).

4.3 Potential Boost to the Tourism Sector

The inclusion of a hotel within the AATC complex is a strategic element that is expected to provide a significant boost to the tourism sector in Barbados. With a planned capacity of either 100 or 120 rooms, this new hotel will directly increase the overall supply of hotel accommodations in the country1. This expansion in capacity is considered particularly important for the continued promotion and growth of Barbados as a premier tourist destination, allowing it to cater to a larger number of visitors. Furthermore, the AATC's conference and exhibition centre is anticipated to attract a significant number of business travelers and host various events, conferences, and trade shows1. This influx of business-related travel will further stimulate the tourism sector and related industries, such as restaurants, transportation services, and local attractions, contributing to a more diversified and resilient tourism economy beyond traditional leisure travel.

4.4 Other Potentially Impacted Industries

The construction industry in Barbados is poised to experience a significant surge in activity during the 30-month construction phase of the AATC1. This major infrastructure project, with an investment of US$180 million, will generate substantial demand for a wide range of construction materials, skilled labor, and specialized services, providing a direct and immediate economic stimulus to the local construction sector and its associated supply chains. Beyond the construction phase, the establishment of modern office spaces within the AATC, intended for occupancy by African and Caribbean businesses, as well as international financial and policy organizations, is likely to lead to an increased demand for commercial real estate and various related services in the Bridgetown area1. This could create a ripple effect throughout the local economy, benefiting businesses that provide office supplies, maintenance services, telecommunications, and other supporting services required by commercial tenants.

5. Potential Benefits and Challenges

5.1 Reported Potential Benefits for the Barbadian Economy and its Relationship with Africa

The agreement between Afreximbank and the Government of Barbados is expected to yield several significant benefits for the Barbadian economy and its relationship with the African continent. It is anticipated to foster stronger economic ties between the Caribbean and Africa, leading to an enhancement of regional trade and increased investment flows7. This partnership positions Barbados as a key player in a new global trade paradigm, allowing it to embrace emerging opportunities beyond its traditional reliance on Western markets7. The project will attract substantial foreign direct investment, not only through Afreximbank's US$180 million commitment to the AATC but also potentially from the US$500 million in pipeline deals1. Furthermore, it is projected to generate significant economic activity and create numerous employment opportunities for Barbadians, both during the construction and operational phases1. The inclusion of a hotel within the AATC will boost Barbados' tourism sector by increasing the supply of rooms and attracting more business travelers1. Local SMEs are expected to benefit from opportunities to participate in the project as subcontractors and suppliers1. The establishment of the AATC will also enhance Barbados' reputation as a prominent hub for global and regional business7. The strategic partnership between Caribbean Export and Afreximbank, which aims to foster capacity building and information exchange, suggests the potential for valuable knowledge transfer and technological advancements through collaboration with African partners18.

5.2 Reported Challenges and Concerns

Despite the numerous anticipated benefits, the agreement has also faced some reported challenges and concerns. A segment of the Barbadian public has voiced objections to the government's decision to donate prime state-owned land to Afreximbank6. These objections may stem from concerns about the appropriateness of allocating valuable public land to a foreign entity, even for a project with significant potential benefits. Opposition Leader Ralph Thorne has raised concerns regarding the transparency of the deal, questioning whether the government has acted in the best interests of the Barbadian people14. He has specifically inquired about whether the Government of Barbados is a member or shareholder of Afreximbank and whether this relationship influenced the decision to grant the land for free14. Thorne has also expressed reservations about providing land to a profit-driven entity like Afreximbank, suggesting that such land might be better utilized for public facilities or non-profit organizations14. He specifically mentioned the potential for the land to be used for a hospital or school, highlighting a perceived opportunity cost associated with the land donation19. Additionally, a comment in one news report raised a geopolitical concern, suggesting that Afreximbank is controlled by China, which could introduce another layer of complexity to the partnership20.

6. Other Agreements and Financial Commitments

6.1 US$25 Million Investment for Cricket World Cup Refurbishment (2024)

Prior to the AATC agreement, Afreximbank demonstrated its financial engagement with Barbados by providing US$25 million in 2024 for the refurbishment of the country's sports complex in preparation for the Cricket World Cup1. This earlier investment indicates an existing financial relationship between Afreximbank and Barbados, suggesting that the AATC agreement is a further deepening of this collaboration.

6.2 Details of the US$500 Million in Pipeline Deals

Beyond the AATC project, Afreximbank currently has a substantial portfolio of deals worth US$500 million in the pipeline with Barbados1. This significant figure suggests a considerable expansion of Afreximbank's financial involvement in Barbados in the near future, extending beyond the investment in the trade center. However, the specific details regarding the nature, scope, and beneficiaries of these potential deals are not provided within the available information1. Further investigation would be necessary to understand the sectors and projects that these pipeline deals encompass.

6.3 The Grant Agreement with the CARICOM Development Fund (CDF)

In a related development that underscores the broader partnership between Afreximbank and the CARICOM region, a grant agreement was signed on February 24, 2025, in Bridgetown, Barbados, between Afreximbank and the CARICOM Development Fund (CDF)21. This agreement involves a grant of €708,000 from Afreximbank to support the development of a Green, Resilience, and Sustainability Facility (GRSF)21. The GRSF is designed to provide blended financing, concessional financing, and other commercial funding options to CARICOM member states, aiming to enhance regional resilience, promote sustainability, and foster economic adaptability21. This initiative will empower CARICOM countries, including Barbados, to invest in critical infrastructure projects and climate adaptation measures. The signing of this grant agreement took place during the plenary session of the 48th Regular Meeting of the Conference of Heads of Government of CARICOM, which was held in Barbados, highlighting the high level of political support for this collaborative effort within the region21. This grant agreement builds upon a pre-existing strategic partnership between Afreximbank and the CDF, which was solidified in August 2023 through a Memorandum of Understanding and the CDF's acquisition of shares in Afreximbank21. This indicates a deepening and multifaceted relationship between Afreximbank and the Caribbean region, with Barbados playing a central role. Using an approximate exchange rate of 1 EUR = 1.08 USD (as of October 26, 2024), the grant amount is equivalent to approximately US$762,640.

7. Implementation and Progress

The groundbreaking ceremony held on March 24, 2025, marked the official commencement of the construction phase for the AATC project1. With the construction projected to last for approximately 30 months1, the completion of the AATC is anticipated around late 2027 or early 2028. Prior to the groundbreaking, Afreximbank had already taken steps in the planning and design phases, as evidenced by the issuance of an invitation for expression of interest for architectural and engineering consulting services for the project, with a submission deadline of January 31, 202511. This proactive approach indicates that significant preparatory work was completed before the physical construction began. Furthermore, the Government of Barbados demonstrated its commitment to the project by laying a Bill before the House to formally vest the lands at Jemmotts Lane to Afreximbank7. This legislative action was crucial for securing the necessary legal and governmental approvals required for the land transfer and the project's progression.

8. Conclusion: Significance and Long-Term Implications

The agreement between Afreximbank and the Government of Barbados, with the establishment of the AATC at its core, signifies a momentous step towards strengthening the economic and trade ties between Africa and the Caribbean. The AATC is strategically positioned to become a vital hub for international trade and collaboration, fostering South-South cooperation and offering substantial economic benefits for Barbados, including significant job creation, the attraction of foreign investment, and a notable boost to its tourism sector. The Barbadian government's decision to grant prime land for this project underscores the immense importance it places on this initiative and its potential to drive long-term economic growth and diversification. While some public concerns and political opposition have been voiced, the overarching sentiment expressed by government officials and Afreximbank leadership remains optimistic regarding the transformative potential of the AATC. The existing financial commitments made by Afreximbank, along with the collaborative grant agreement with the CDF, further highlight the deepening and multifaceted partnership between Afreximbank and the wider Caribbean region. The successful implementation of the AATC, coupled with the realization of the promising pipeline deals, has the potential to significantly elevate Barbados' role in global trade and solidify its connections with the African continent, paving the way for new avenues of economic prosperity and enhanced regional integration.

Table 1: Components of the Afreximbank African Trade Centre (AATC) in Barbados

Table 2: Potential Economic Impacts of the AATC in Barbados

Table 3: Afreximbank's Financial Commitments to Barbados and CARICOM (as of March 2025)