EDITORIAL: The African connection

THERE is not much to shout about when it comes to trade in goods and services between Barbados and Africa. Yet this seems not to be a deterrent as some countries in the continent will be the new frontiers for Barbados’ international business and financial services sector.

The sector is second to tourism as far as foreign exchange earnings are concerned, and its contribution to gross domestic product (GDP), although that contribution to GDP is not normally quoted in our economic reviews.

Over the course of the last several years Barbados has signed agreements with African countries to pursue commercial opportunities, the last being the one between this country and Nigeria.

As if that was not enough Barbados has opened a mission in Ghana and has close contacts with Kenya. Double taxation agreements have also been signed  between Barbados and the Republic Of Rwanda. This is not the first such treaty with an African country, as is pointed out in the official data since treaties in place with Botswana and Mauritius while others are being identified for a similar purpose.

But why Africa? Given that Barbados is part of the African, Caribbean and Pacific (ACP) group, which has relations with the Europe Union, those contacts were further entrenched.

Analysts say too that since Africa is the place attracting most of the global investments, it makes sense to go after the opportunities.

At a recent signing ceremony involving Nigerian IT giant TelNet Nigeria Limited, and Global Integrated Fintech Solutions (GIFTS) and IPayAnywhere (Global), two dynamic Barbados companies, the significance of Barbados having relations with Africa was highlighted.

It was described as representing a signature event in relations between Barbados and Nigeria and by extension Barbados’ agenda to build commercial bridges with the continent, in general.

Commenting on the initiative, Senator The Honourable Dr. Jerome Walcott, Barbados’ Minister of Foreign Affairs and Foreign Trade said he welcomed this cross border private sector partnership between TelNet and GIFTS and IPayAnywhere of Barbados. It is pleasing, he noted that this is in the transactional business and Fintech arenas. Both areas of immense potential for our countries, with emphasis on processing integrity, signals a future of innovation aimed at making commerce easy and secure. This is indeed exciting, he said while noting this partnership sets the necessary standards and be an enduring asset that others will seek to follow.

Deodat Maharaj, Executive Director, Caribbean Export described the partnership of the three companies as a clear indication of the opportunities for commercial relationships between the Caribbean and Africa.

He believes it is time that we translate our inextricable historical and cultural connections into business opportunities for the people of Africa and the Caribbean. Rising Africa represents a bright new frontier for Caribbean business.

Therefore comparative advantage, a network of double taxation treaties and among other things the country’s good image, will be in Barbados’ favour to drive that process of pursuing relations with Africa.

Once successful the Barbados African connection has the potential to lift earnings in the economy by a significant amount and to present opportunities for further diversifying the economy.

It will also be a signal that South South cooperation as promoted by the both the EU and the ACP is necessary in this fast changing world.