Strengthening West Africa’s MSMEs With Legislative Resolution, Harmonised Procedures 

Members of ECOWAS Parliament have taken a critical step to advocate for harmonised customs procedures, import regulations, taxation policies, and business registration requirements to create a business-friendly environment for Micro, Small and Medium Enterprises (MSMEs) in West Africa.

The lawmakers followed the resolution reached at the Delocalized meeting of the parliament’s committee on Industry and Private Sector, Macroeconomic Policy and Economic Research, Administration, Finance and Budget and Public Accounts, which ended in Cotonou, the capital of Benin.

Over the years, MSMEs in West Africa have faced severe structural barriers, primarily driven by a shortfall in finance, cross-border trade bottlenecks, and high levels of informality. These obstacles stunt growth and hinder regional economic integration.

It was on this premise that the Co-Chairman of the Committee, Hon. Alhagie Darbo, while reading the resolution, stressed the need for the full implementation of ECOWAS trade and investment protocols, the elimination of non-tariff barriers, investment in trade-supporting infrastructure, and the strengthening of national monitoring mechanisms to improve the business environment.

Parts of the recommendations included enabling legal, regulatory, and fiscal frameworks that promote entrepreneurship, support the transition of informal enterprises into the formal economy, encourage local value addition, and enhance MSME competitiveness.

He said part of the recommendation is to “Improve market governance and protection of traders by ensuring transparent allocation and management of market facilities, providing accessible tenancy agreements, reviewing restrictive trading practices, and addressing unlawful harassment of traders.

“Expand financial inclusion initiatives and access to affordable finance, particularly for women-owned and youth-led MSMEs, to improve productivity and participation in regional value chains.”

The lawmaker from The Gambia also urged the ECOWAS Commission to strengthen the implementation of the ECOWAS MSME Development Policy (2021–2030) through enterprise support centres, business support programmes, entrepreneurship development initiatives, and digital skills enhancement.

The Commission was also tasked with establishing and strengthening export support and assistance mechanisms along major trade corridors and at strategic border points to provide guidance to exporters, facilitate compliance with trade requirements, and reduce administrative bottlenecks affecting intra-regional trade.

Darbo said, “Accelerate the harmonisation and implementation of ECOWAS product standards, certification, and quality assurance mechanisms to ensure consistent requirements for goods traded across Member States and enhance access to regional and continental markets.

“Strengthen the implementation of the ECOWAS Trade Liberalisation Scheme (ETLS) and related trade facilitation initiatives by simplifying procedures, improving awareness among businesses, eliminating non-tariff barriers, and enhancing transparency in cross-border trade processes.

Promote regional value chain development by encouraging industries to source semi-processed raw materials and intermediate inputs from within the Community, thereby reducing dependence on extra-regional imports and strengthening industrial integration.

“Support the development of inclusive industrial and agricultural clusters, including producer networks and value-chain platforms, to attract investment, improve productivity, facilitate access to finance, and enhance the competitiveness of regional enterprises.”

The MPs charged the ECOWAS Bank for Investment and Development (EBID) with expanding access to affordable, tailored financing for MSMEs through innovative financing mechanisms, including credit guarantee schemes, concessional financing windows, and risk-sharing instruments targeting women- and youth-led enterprises.

Support investment in regional industrial and agricultural clusters by developing financing instruments that enable producers and actors on the value chain to expand production capacity and integrate into regional markets.

The lawmakers also see a need to strengthen oversight and advocacy to implement ECOWAS trade, investment, industrialisation, and MSME development frameworks by monitoring Member States’ compliance with Community instruments.

It also pledged to promote stronger political commitment among Member States to implementing ECOWAS protocols and policies aimed at improving market access, industrial development, and regional economic integration.

Also, it plans to transmit the recommendations arising from the Joint Committee’s activities to relevant institutions and to continue advocacy at the national level.

Hon. Pascal Agbodike, a Nigerian Member of the Parliament, told reporters on the sidelines of the meeting that the Nigerian parliamentarians in the regional assembly will ensure that the resolutions are met, even as regional stakeholders expressed optimism that the resolutions reached at the end of this meeting could be met if stakeholders commit to it religiously.

Agbodike, who chairs the Nigerian House of Representatives Committee on SMEs, stressed that the complaints raised about the country’s borders will be looked into in all dimensions.

Beyond this resolution, however, the lawmakers face the challenge of framing a coordinated regional approach to address financial and credit constraints as the MSMEs funding gap, which is said to be exceeding hundreds of billions of dollars.  In another development, MSMEs in the region also face the challenge of presenting bankable projects because they operate informally, making it nearly impossible to qualify for formal institutional credit.

There is also the vexed issue of trade barriers allegedly caused by complex customs procedures, delays, and inconsistent application of trade laws, which disrupt regional supply chains. Corruption, characterised by unofficial payments, harassment, and extortion at multiple highway and border checkpoints, further inflates operational costs.