Jamaica, a Caribbean island nation, has officially joined the African Export-Import Bank (Afreximbank), becoming the 13th Caribbean Community (CARICOM) nation to sign the bank’s establishment agreement.
The milestone, announced during the 49th CARICOM heads of government meeting held from July 6–8, 2025, unlocks $1.5 billion in new financing for Jamaica and raises Afreximbank’s total commitments to the Caribbean region to $3 billion.
The move aligns with the “Global Africa” vision — a strategic initiative aimed at fostering shared prosperity through deeper trade, investment, and financial cooperation between Africa and the Caribbean.
Andrew Holness, Jamaica’s prime minister, hailed the membership as a “strategic step” to secure funding for key sectors such as manufacturing, agriculture, and the creative economy.
“It positions Jamaica to tap into new sources of funding for critical sectors such as manufacturing, logistics, agriculture, and the creative industries, while laying the foundation for deeper collaboration between African and Caribbean businesses,” he said.
Benedict Oramah, Afreximbank’s president, emphasized that the agreement would expand Jamaican businesses’ access to African markets and reinforce South-South cooperation, describing it as “a united and prosperous Global Africa.”
Economic resilience positions Jamaica for strategic investment
Jamaica’s accession to Afreximbank comes amid improving macroeconomic conditions and growing resilience to global shocks and climate-related disruptions. The country has made significant strides since grappling with high borrowing margins and debt over two decades ago, creating a strong foundation for leveraging new financing.
Despite recent setbacks from Hurricane Beryl and Tropical Storm Raphael, which disrupted agriculture, tourism, and infrastructure, the outlook is promising. The International Monetary Fund projects a 2.2% rebound in real GDP in Fiscal Year (FY) 2025/26, following a –0.8% contraction the previous year.
Inflation remains anchored within the Bank of Jamaica’s 4–6% target range, ending FY 2024/25 at 5.0%, with similar expectations ahead. Fiscal health remains robust, with the central government posting a fiscal balance of 5.9% of GDP and maintaining a near-balanced budget despite weather-related disruptions.
The current account recorded a surplus of 2.6% of GDP in FY 2024/25, supported by record tourism receipts and strong remittance inflows. Meanwhile, foreign exchange reserves have risen to cover seven months and about six days of imports, providing a substantial buffer against external shocks.
Why it matters
Jamaica’s $1.5 billion in new financing from Afreximbank signals a strategic pivot toward alternative sources of capital at a time when global funding conditions are tightening. Unlike traditional borrowing, the Afreximbank partnership offers access to trade finance, guarantees, and investment support without adding unsustainable debt burdens.
The collaboration is particularly timely for key industry exports— including alumina, agriculture, and minerals — as Jamaica seeks to diversify trade relationships beyond traditional partners such as the US, the United Kingdom, and Canada.
With inflation contained, debt on a downward trajectory, and foreign reserves at comfortable levels, Jamaica now possesses the fiscal and institutional strength to productively deploy Afreximbank financing and deepen its integration into the global economy, especially across the Africa-Caribbean corridor.
