Connecting African Trade for Africa's sufficiency and posterity.
Thank you very much for this opportunity to share the Private Sector Experience in trade and investment within the ECOWAS region. But before I begin my presentation I would like to introduce my organization:
The Federation of West African Chambers of Commerce and Industry (FEWACCI) was created in 1972 by the National Chambers of Commerce and Industry of West Africa to serve as a consultative platform for bringing together private sector actors in West Africa.
FEWACCI began operating with its strategic regional objectives as the hub of trade and investment in the region when ECOWAS was established in 1975. Since then, the Federation has been identified as a key player to provide the views and proposals of the private sector on all actions and decisions that contribute to the deepening of regional economic integration. This led to giving FEWACCI Observer Status at ECOWAS Statutory Meetings and the mandate to organize public-private dialogue and mobilize the private sector on key regional projects where COWAS citizens have shares as the stakeholders. FEWACCI also has observer status at African Union (AU).
Main Mission
Our main mission is to serve as a strategic framework for the engagement of the Private Sector in the promotion and deepening of regional economic integration. In particular the promotion of trade, cross-border investments and access to markets.
Our Goals
- Provide support services to national company, community and international businesses,
- Serve as a voice for the Business Community to influence ECOWAS and Member State decisions on all matters relating to business growth and fair competition, including the formulation of Member State position in international trade negotiation forums,
- Contribute to the promotion and development of community businesses,
- Submit to the competent national and regional authorities the requests, suggestions or proposals of the private sector on the common problems of their members.
How we cooperate with ECOWAS
ECOWAS and FEWACCI have established a framework for dialogue, collaboration and consultation, in particular the two parties have agreed to:
- cooperate and consult regularly in all areas of common interest, in particular with regard to the development, promotion and capacity building of the private sector in Member States in all areas relevant to their promotion, investment and trade in member states,
- Promote private sector investment and trade in Member States, this may include joint meeting, technical assistance, specific joint implementation projects and activities, financing and logistical support, other forms of sponsorship, etc.,
- Advocate on ECOWAS trade facilitation tools to strengthen ECOWAS position on regional integration,
- Implement the Protocol for the creation of ECOWAS Community Enterprises
Trade and Investment Potentials and Benefits in ECOWAS
The ECOWAS region experienced the largest increase in total exports, with an average rate of 5.1% annually, to reach $196.2 billion in 2018 at constant prices (the third largest among the regional economic communities). Moreover, the region has always been an attractive place for foreign investment, as shown by relatively large inflows of foreign direct investment (FDI) that have positively responded to the improving regulatory environment. The region is home to six of the 10 fastest-growing African economies in the last decade, with an average growth of 5.6% (Togo) to 6.7% (Cote d’Ivoire).
Another reason to invest in the region is the Market Size, which gives access to over 400 million consumers across 15 countries.
- Growing Middle Class and Population: Rising purchasing power and a young, dynamic workforce.
- Economic Reforms: Policies designed to promote economic integration, reduce trade barriers, and enhance security.
- Strategic Location: West Africa is well-positioned for access to both African and international markets.
The region is notably characterized by the free movement of goods and services through the removal of tariff and non-tariff barriers, a common external tariff, macroeconomic stability surveillance mechanisms and a thoughtful Strategy to Attract Investments, increase exports, create jobs and generate productivity: the ECOWAS Common Investment Code (ECOWIC), which applies to the rights and obligations of Member States and investors as well as the development of special economic zone (SEZ) as a way to ‘build resilient infrastructure, promote sustainable industrialization and foster innovation’. The current business environment makes starting a business much easier and less costly in the ECOWAS region, on average, compared to other African regional economic communities (RECs).
Areas of Potential Trade and Investment Opportunities:
- Agriculture
- Mining
- Construction and Real Estate
- Tourism
- Water and Sanitation
- Higher Education and Professional Training
- Health
- Entertainment and Intellectual Property
- Information & Communication Technology
- Transportation
- Energy
Investment Incentives in ECOWAS
- Investment Policies:
ECOWAS has Regional investment policies that strengthens the development of private sector and lead to sustainable economic growth. The Regional investment policy reinforces ECOWAS mandate to secure transparent, stable and predictable conditions for investment and enhance the common market and having this investment policy and Code in ECOWAS Member States aims to unlock benefits through two key channels:
- Improve market access for investors, lowering barriers to entry just as tariff cuts lower barriers for goods.
- increase investor rights, and reduce the risks associated with government intervention in ECOWAS Countries.
On the other hand, many ECOWAS countries offer tax incentives, special economic zones, and public-private partnerships to attract foreign investment. For example: Tax holidays, reduced import duties, and easy access to land for investors in sectors like manufacturing, agriculture, and tourism.
- Regional Financing:
- ECOWAS member states are encouraged to utilize regional financing mechanisms and multilateral development banks like the ECOWAS Bank for Investment and Development (EBID).
In conclusion, the ECOWAS region presents immense opportunities for businesses, trade, and investment in a range of sectors. With a growing consumer base, a push for infrastructure development, and the integration of the AfCFTA, ECOWAS offers a strategic entry point into the broader African market. To take advantage of these potentials, I urge us to take the following actionable next steps by identifying key sectors, forming strategic partnerships, and leveraging regional trade through regional business associations and investment opportunities to unlock potential in trading within the ECOWAS region.