Fabrics and fashion originating out of Nigeria are poised to see a boom as a recent agreement in July 2024 between the African Export-Import Bank (Afreximbank) and the Government of the Commonwealth of The Bahamas marks a transformative step with the launch of the Afro-Caribbean Marketplace in Grand Bahama.
This agreement establishes a Project Preparation Facility for the Government of the Commonwealth of The Bahamas to develop and launch an Afro-Caribbean Marketplace.
Upon completion, the Afro-Caribbean Marketplace will feature 90 outlets dedicated to the sale of genuine African and Caribbean products, representing over 54 African countries, 20 Caribbean states, and 16 islands of The Bahamas, and will include a transhipment hub. The marketplace will be located at the site of the former International Bazaar and Royal Oasis Tower and Casino in Freeport, Grand Bahama Island.
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The Afro-Caribbean Marketplace is poised to spur economic growth, nurture the development of small and medium-sized enterprises (SMEs), and facilitate cultural exchange, creating a dynamic environment that harmonises the best attributes of both regions.
“Afreximbank is very pleased to be providing funding towards the development of a unique Afro-Caribbean marketplace and trans-shipment project in the Bahamas. It is a strategic investment that allows us to realise our vision of positioning the Caribbean as the trans-shipment hub for Africa’s trade with the Americas,” Benedict Oramah, president and chairman of the Board of Directors of Afreximbank Group stated.
“It will also support logistics related to AfriCaribbean trade. The Bank commends the Government of the Bahamas for the bold initiative to harness the emerging Afri-Caribbean opportunities,” Oramah added.
Ginger Moxey, minister for Grand Bahama has described the signing of the Project Preparation Facility with Afreximbank and the Government of The Bahamas as a transformative step for Grand Bahama Island. It was emphasised that the development of the Afro-Caribbean Marketplace and Logistics Centre signifies a commitment to creating a vibrant hub for trade, culture, and innovation.
“This initiative will not only boost our local economy but also strengthen our ties with the African continent, fostering an environment of shared growth and prosperity,” Moxey said.
A Caribbean Entrepreneur’s Experience of Exporting Nigerian fabrics, and fashion
One window into the opportunity Afro-Caribbean Marketplace in Grand Bahama offers to boost Nigeria’s fabrics, and fashion export is the story of Vicki Otaruyina, an entrepreneur born in Barbados and married to a Nigerian husband.
One of the most defining moments of Otaruyina’s life was her visit to Nigeria in 2021. This trip profoundly shifted her perspective, as she witnessed firsthand that the narrative and images often portrayed of Africa over the years were far removed from the continent’s reality and authenticity.
“I can’t forget to mention the impact that African fashion, specifically Ankara fabric, had on my life. I was truly blown away by the beautiful materials available in Nigeria and saw a unique opportunity to bring authentic African fabric to the Caribbean,” she said. “This experience led to the creation of V&S Prints and Designs, which now provides genuine African materials to the people of Barbados and the wider Caribbean.”
V & S Prints and Designs has been involved in small-scale export of fabrics and fashion from Nigeria, bringing materials in suitcases to Barbados and the Caribean but now working to do a shipment. While suitcases for sale aren’t big the startup is seeking to make them bigger with a target to increase the quantity in 2025 to serve the market.
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“We will be doing customised designs and giving persons the opportunity to have designs done, select their materials, we make it and they get it in the United States of America, Canada, Caribbean or wherever they are,” Otaruyina told Go Local in a LinkedIn chat.
Understanding the Caribbean Market
With a population of 44 million, rich cultural influences, and a diverse economic landscape, the Caribbean region offers a promising market for African businesses.
However, certain challenges must be overcome to ensure successful expansion this is why the recent agreement between the African Export-Import Bank (Afreximbank) and the Government of the Commonwealth of The Bahamas marks a transformative step with the launch of the Afro-Caribbean Marketplace in Grand Bahama.
Barriers to Trade between Africa and the Caribbean
Lack of Bilateral or Free Trade Agreements: The absence of these agreements results in delays and increased costs due to tariffs and non-tariff barriers.
Delays in Obtaining Necessary Certificates: Regulatory obstacles and lengthy certification processes can hinder market entry.
Limited Direct Air and Sea Travel: A lack of direct transportation routes contributes to longer shipping times and higher costs.
Stringent Shipping Requirements: Complex logistics and compliance with various shipping regulations add further challenges.
High Transport Costs: The cumulative effect of these factors drives up transportation costs, reducing competitiveness.
Despite these challenges, organisations such as the African Export-Import Bank (Afreximbank) and various trade bodies are actively working to resolve these issues and enhance trade relations.
Opportunities in the Caribbean Market
There are significant opportunities for African businesses in the Caribbean, especially in industries like textiles, where there is a strong demand for unique and affordable products, including African prints and fabrics.
African-inspired fashion items such as jewellery, accessories, and clothing are sought after and also offer opportunities.
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Strategies for Market Entry and Expansion
1. Conduct Thorough Market Research
A comprehensive understanding of the demand for products or services in the Caribbean and Latin American markets is essential. This involves analysing market trends, consumer behaviour, and potential competitors to ensure a well-informed approach to market entry.
2. Connect with Trade Organisations
Engagement with trade organisations, such as the Caribbean Export Agency and specialised consultants, is recommended to facilitate smoother market entry and expansion. These organisations can provide valuable insights, resources, and networking opportunities that are critical to success.
3. Explore Strategic Partnerships
Forming joint ventures or pursuing direct investment opportunities can help establish a local presence in the Caribbean market. Strategic partnerships with local entities can enhance market penetration and provide access to established distribution networks.
4. Attend Trade Fairs and Expos
Participation in industry trade fairs and expos is a key strategy for networking, identifying potential collaborations, and increasing brand visibility. These events offer opportunities to meet potential partners, customers, and industry stakeholders.
5. Leverage Digital Infrastructure
Utilising online platforms to reach Caribbean customers is a strategic way to overcome traditional barriers. Digital marketing, e-commerce, and social media can significantly enhance market reach and customer engagement.
6. Investigate Distribution Channels
Partnering with distributors that operate between Africa, the USA, and the Caribbean is crucial for efficient product distribution. Understanding and leveraging existing distribution networks will reduce logistical challenges and improve market accessibility.
7. Promote Cultural Exchanges and Training
Engaging in cross-cultural training and knowledge sharing between Africa and the Caribbean can facilitate better understanding and cooperation. Promoting cultural exchanges will also foster stronger business relationships and enhance market integration.
8. Stay Updated on Trade Missions
Maintaining connections with trade delegations from the Caribbean visiting Africa is important for staying informed about emerging opportunities. These trade missions can provide direct insights into market needs and establish valuable government and industry contacts.
9. Align with Market Trends
Regular analysis of consumer preferences and sustainability initiatives in the Caribbean is necessary to ensure that offerings align with market demands. Staying ahead of market trends will provide a competitive edge and ensure long-term relevance.
Read also: How Mary Adeniji-Gbenga is building a successful fashion business
10. Diversify Offerings
Expanding the range of products or services to include consultancy, training, or related services can provide additional revenue streams and strengthen market positioning. Diversification allows businesses to meet broader market needs and increase their impact.
