2024 Annual Results Report

POWERING THE FUTURE:

DIGITAL TRANSFORMATION FOR A COMPETITIVE CARIBBEAN

Digital transformation is reshaping industries worldwide, and for Caribbean MSMEs, it presents a critical opportunity to boost productivity, enhance product offerings, and diversify markets. As global trade becomes increasingly digitized, businesses that fail to adopt technology risk being left behind. Caribbean Export has been at the forefront of this transition, driving initiatives that equip the region’s private sector with the tools, knowledge, and support necessary to thrive in a rapidly evolving digital economy. One of the most significant shifts has been the acceleration of e-commerce, which has provided MSMEs with direct access to international markets. The COVID-19 pandemic underscored the necessity of digital trade, and Caribbean businesses that successfully pivoted to online platforms were able to expand their customer base and increase exports. Recognizing this, Caribbean Export partnered with DHL Group to launch the Go Trade & Grow Beyond Borders series, designed to strengthen MSMEs’ e-commerce capabilities. The series kicked off with the Welcome to eCommerce webinar, which explored digital communication, collaboration tools, and operational strategies for running a successful online business. Yet, while e-commerce has opened doors, logistics and transportation challenges continue to hinder MSME competitiveness. The high cost of shipping, fragmented supply chains, and outdated port infrastructure remain barriers to efficient trade. These issues were spotlighted at the 2024 UNCTAD Global Supply Chain Forum, where Caribbean Export hosted a panel discussion featuring regional stakeholders. The discussion emphasized the need for MSMEs to have a voice in shaping trade policies, the creation of cost-effective bulk shipping solutions, and urgent investment in modernizing logistics infrastructure to enhance efficiency and competitiveness. As part of the Go Trade & Grow Beyond Borders initiative, Caribbean Export and DHL also hosted The Art of Logistics webinar, equipping MSMEs with essential knowledge on managing international shipments and navigating the complexities of cross-border trade. Beyond logistics, digital transformation is reshaping the very foundation of business operations. The Fourth Industrial revolution refined the business environment, providing MSMEs with the technological edge to access resources that were previously only available to larger firms. MSMEs benefitted from the flexibility of rapid adaptation from the use of technology for data processing to create a more dynamic business environment. Caribbean Export undertook two interventions in 2024 based in technology, the development of the Caribbean Digital Transformation Institute (CDTI) which assess the digital development of MSMEs and supports the building of digital capacity and the European Union Latin America and the Caribbean (EU-LAC), Digital Accelerator which explores the private sector connections between the three regions to work together to solve technical challenges with innovative solutions. As the Caribbean private sector stands at a pivotal juncture in its digital transformation journey, a strategic, multi-pronged approach is essential. While technology adoption is crucial, it must be accompanied by investments in digital skills training, trade facilitation, and infrastructure upgrades. Moreover, inclusivity must be a priority—ensuring that youth, women entrepreneurs, and traditionally marginalized groups have equal access to digital opportunities. For Caribbean MSMEs to fully capitalize on the benefits of digital trade, policymakers, development agencies, and private sector partners must work together to create an enabling ecosystem. Strengthening regional and international partnerships, reducing trade barriers, and fostering a culture of innovation will be key to driving sustainable growth and securing the region’s place in the global digital economy.

26 | CARIBBEAN EXPORT ANNUAL RESULTS REPORT 2024