GABORONE, Botswana - Bahamas Prime Minister Phillip Davis has unveiled a comprehensive blueprint designed to strengthen financial ties between Africa and the Caribbean, heralding the initiative as a new era of economic partnership and innovation.
Bahamas Prime Minister Phillip DavisAddressing an audience during his official visit to the Bank of Botswana,” Prime Minister Davis, who is on an official visit to the African country until Friday, said “as we stand on the shoulders of our ancestors, we remember their journey from the chains of cruel slavery to the builders of independence with nothing but their bare hands and unbreakable spirits.
“Our history is not just a story of survival; it is a testament to resilience, ingenuity, and a commitment to self-determination. Our ancestors, faced with the brutality of oppression, chose to fight, to hope, and to dream of a day when their descendants would walk freely, masters of their destiny.
“Today, we, the descendants of those brave souls, inherit more than their dreams; we inherit their call to action. In a global environment that continues to evolve, our regions, Africa and the Caribbean, stand united, not just in shared history, but in a shared mission to leverage our collective skills, resources, and brotherhood. We find ourselves at a critical juncture, where our past’s legacy meets our future’s potential.”
Davis said that the journey from being enslaved peoples to “becoming architects of our destiny is marked by battles fought not just on the physical front but also within the realms of economic and financial systems”.
He said that these are systems that, too often, have been designed to keep a stranglehold on developing countries, “attempting to dictate our economic fate from the ivory towers in which they sit.
“Our response to this challenge is not merely to resist but to innovate and collaborate, creating a blueprint for a future where Africa and the Caribbean harness their collective economic power to dismantle barriers and build bridges.”
Prime Minister Davis said that a clear example of the strength and resilience of the two regions can be seen in the recent developments at the United Nations concerning international tax matters.
He said The Bahamas, alongside other African nations, played a supportive role in a pivotal resolution that “marks not the end of our struggles but a significant victory in the ongoing fight for equitable global tax governance.
“This resolution, championed by African countries and supported by 125 nations, primarily low or middle-income countries, signals a shift towards a more inclusive approach to international tax cooperation. However, it is crucial to understand that while this victory is significant, it is not an endpoint but rather a milestone in our larger journey towards fairness and equity in the global financial systems.”
He said the resolution adopted at the UN will initiate the process of creating a more significant role for the UN in establishing a convention on international tax cooperation.
“This move directly challenges the long-standing dominance of the OECD, (Organisation for Economic Co-operation and Development) which has historically led global tax negotiations. “
Prime Minister Davis said the frustration of developing countries with the OECD-coordinated negotiations stemmed from the realization that the landmark deal aimed at curbing corporate tax avoidance would benefit richer nations disproportionately.
“The African Union’s endorsement of the resolution as a step towards a fully inclusive process at the UN for international tax agenda is a testament to Global South countries’ collective power and determination.
“Yet, as we celebrate this achievement, we must also prepare for the challenges ahead. The creation of a new UN tax convention and the establishment of a global tax body will face opposition, as evidenced by the stance of most developed countries against the resolution.”
He said that these nations, including EU member states, the US, UK, Japan, and Korea, have expressed concerns that a new convention could duplicate existing standards and potentially reopen negotiations on already settled matters.
Davis said in this context, The Bahamas and the broader African and Caribbean region must remain vigilant and proactive.
“We must leverage this moment to push for the inclusion of a Multidimensional Vulnerability Index in the global financial system. Recognizing the unique challenges faced by our nations, particularly in relation to climate change and natural disasters.
“Our efforts should focus on innovating and collaborating around global bank systems and rules designed to stifle the growth of developing countries, where access to funding is often not adequately measured by risk, including those posed by climate change.”
He said that the path forward requires Africa and Caribbean countries to build on this victory by engaging in the upcoming intergovernmental discussions with a unified and ambitious agenda.
“It is essential that we, alongside our African counterparts and other developing nations, continue to assert our right to participate fully in shaping global tax rules that impact our development and prosperity.
“This moment in history, where developing nations have successfully advocated for a greater say in international tax matters, illustrates the potential of our collective efforts. However, it is just the beginning.”
Davis said the real work lies in ensuring that the principles of equity, fairness, and inclusivity underpin the new global tax system.
“As we move forward, let us remain committed to the spirit of collaboration and innovation, drawing strength from our shared history and the knowledge that together, we can build a more just and equitable world for all our people.”
Prime Minister Davis said in the collective journey towards forging deeper economic ties between Africa and the Caribbean, “we are presented with an unprecedented opportunity to innovate, leverage our strengths, and redefine the future of banking in our regions.
“Today, I invite you to consider a strategic vision that encapsulates this ambition: a comprehensive Blueprint for Collaboration that highlights the inherent strengths of The Bahamas as a leader in the banking industry and sets a course for transformative cooperation between our regions.”
He said this Blueprint for Collaboration encompasses key initiatives designed to unite the banking systems, enhance financial inclusivity, and catalyze economic growth across Africa and the Caribbean.
“This strategic plan is anchored in our shared desire for prosperity and our commitment to overcoming the challenges of distance and disparate regulatory environments,” he said, adding “establishing a Joint Financial Task Force can be the cornerstone of our blueprint.
“This collaborative body will harness the expertise of banking and finance leaders, policymakers, and stakeholders from both regions. Tasked with identifying and dismantling barriers to banking integration, this task force symbolizes our collective will to forge a unified path forward.”
Prime Minister Davis said Africa and the Caribbean can also harmonize their regulatory frameworks to address a critical hurdle in the journey.
“By aligning our anti-money laundering (AML) standards, counter-financing of terrorism (CFT) policies, and digital currency regulations, we create a seamless environment conducive to cross-regional banking operations. With its robust regulatory landscape exemplified by the DARE Act, the Bahamas is a pioneer in this endeavour, guiding our efforts towards regulatory excellence and stability.
“Additionally, the promotion of financial inclusion and digital banking leverages the power of technology to erase boundaries and open doors. Inspired by The Bahamas’ pioneering launch of the Sand Dollar, the world’s first central bank digital currency, this facet of the blueprint can envision a future where digital banking platforms extend financial services to every corner of our regions, ensuring that no citizen is left behind.”
Davis said facilitating trade and investment through streamlined banking procedures and dedicated financial instruments can bolster economic exchanges between Africa and the Caribbean.
He said by focusing on sectors of mutual interest like tourism, agriculture, renewable energy, and technology, Africa and the Caribbean can unlock new avenues for growth and collaboration.
He said key to this blueprint is developing human capital, which underscores the belief that our greatest asset is the people. Davis said joint educational initiatives and training programmes will equip banking professionals with cutting-edge skills in fintech, cybersecurity, and regulatory compliance, ensuring our financial sector is robust and secure but also innovative and adaptive.
He said creating a bilateral payment system or exploring the development of a shared digital currency represents a bold step towards financial sovereignty and integration. He said such an initiative will facilitate smoother trade and investment, reduce our reliance on external currencies, and strengthen our economic bonds.
Prime Minister Davis said that his country stands ready to leverage its leadership in banking and finance as a catalyst for “this grand vision.
“Our successes with the Sand Dollar and the DARE Act are not just national achievements but proof of what is possible when innovation meets determination. As I invite you to consider this Blueprint for Collaboration, let us see it as a challenge to ourselves, to push the boundaries, to innovate, and to build a shared economic future that reflects our common values and aspirations.
“Together, Africa and the Caribbean can embark on this transformative journey driven by unity, innovation, and mutual respect. Let this blueprint be our guide as we strive to unlock the full potential of our regions, forging a path towards prosperity that will be remembered for generations to come.”
Prime Minister Davis said the regions are well positioned to embark on this journey, especially with the welcomed presence of the African Export-Import Bank (Afreximbank), which is set to host a major meeting this summer in The Bahamas. T
“This event marks a pivotal moment in our collaborative efforts, catalyzing the initiatives we envision today,” Prime Minister Davis said, adding “as we stand on the brink of this transformative partnership, a question looms large before us, a question that beckons us to look beyond the horizon, to see past the vast expanses of ocean that lie between our shores.
“Will we allow the separation of water to get in our way, or will we see these waters not as barriers but as bridges waiting to be crossed?”
