Micro, Small, and Medium Enterprises (MSMEs) in the ECOWAS region, represented by the ECOWAS Small Business Coalition (ESBC), have urged for the creation of a railway corridor connecting all member countries, in addition to the existing road network. This proposal was made during their inaugural exhibition and workshop held from November 21 to 23, 2024, in Abidjan, Ivory Coast.
Organized by the ESBC in collaboration with the ECOWAS Commission and Ivory Coast’s Ministry of Commerce and Industry, the event brought together small business operators from across the region. The coalition highlighted significant transportation challenges, including inefficiencies in moving goods and services across borders, and emphasized the need for improved infrastructure and trade facilitation measures.
Addressing Transportation Barriers
During the workshop, the ESBC discussed several proposals to address transportation bottlenecks. Key among these were calls for the end of cross-border harassment and corruption, which they blamed on the imposition of unnecessary taxes. The coalition also suggested that local Small Business Coalitions (SBCs) be empowered to issue certificates of origin for entrepreneurs, simplifying trade processes.
The ESBC emphasized the importance of clear communication and understanding of cross-border trade obligations. While ECOWAS has protocols ensuring the free movement of goods and people, the coalition pointed out that these still require compliance with customs duties and formalities that hinder smoother trade.
Improving Access to Information and Financing
Access to information was another major topic of discussion. The coalition encouraged SMEs to take full advantage of frameworks like the African Continental Free Trade Area (AfCFTA) and ECOWAS initiatives, urging governments to increase awareness and education about these opportunities.
Regarding financing, the coalition noted that while there are mechanisms in place to support SMEs, many businesses struggle to access funds due to limited resources and a lack of capacity to absorb available financing. They recommended focusing on new business models tailored to Africa’s realities, drawing inspiration from the economic development strategies of BRICS nations.
Innovation and Sustainable Development
The ESBC also called for more innovation and sustainable practices within the region’s SMEs to boost their competitiveness. Proposals included launching training programs centered on certification, technology transfer, and research to facilitate business expansion across borders.
Additionally, the coalition underscored the need for fiscal policy harmonization across the ECOWAS region to ease cross-border operations and streamline trade.
Future Initiatives to Support SMEs
Looking ahead, the ESBC proposed several initiatives to further strengthen the region’s SMEs. These included establishing an ESBC television network to raise awareness of SMEs’ issues, creating a dedicated bank for SME financing, and developing strategies to encourage a common currency within ECOWAS.
The coalition also advocated for the removal of customs and monetary barriers, as well as the establishment of international shipping lines to improve logistics. For landlocked countries, the coalition suggested improving access to ports to boost trade.
In conclusion, the ESBC emphasized that while progress has been made, much work remains to enhance the competitiveness and growth of SMEs in the ECOWAS region, particularly in areas of innovation, financing, and cross-border trade facilitation.
