ECOWAS@50: experts seek united efforts to enhance regional trade, financial integration

Experts have called for united efforts to strengthen Economic Community of West African States (ECOWAS) integration to foster peace and security while enhancing trade and economic growth in the West African region.

They made the call at the ECOWAS @ 50 regional integration event by the Lagos Chamber of Commerce and Industry (LCCI) on Monday in Lagos.

The News Agency of Nigeria (NAN) reports that ECOWAS was founded on May 28, 1975.

The LCCI event was themed: “Gateway to Peace and Security, Trade and Investment in the ECOWAS Sub region. Achievements, Challenges, Solutions and Opportunities”.

Mr Gabriel Idahosa, President, LCCI, said at the heart of regional integration lied the fundamental goal of peace and security, which provides the bedrock for all economic and social activities.

He noted that the ECOWAS region had experienced its fair share of political instability and conflicts over the years, hence the importance of regional collaboration to mitigate these issues.

Idahosa stated that economic integration had been one of the most transformative aspects of the ECOWAS sub-region, with remarkable progress in trade facilitation among member states.

He, however, noted that intra-regional trade within ECOWAS still represents only about 12 per cent of total trade in the region, in contrast to the other areas such as the European Union and ASEAN of over 60 per cent.

“This is primarily due to various factors, including infrastructural deficits, customs barriers, and divergent trade policies across member states.

“To bridge this gap, we must work towards eliminating these barriers, harmonising trade policies, and ensuring that goods and services can flow freely across borders.

“As we look toward increasing trade, it is crucial to highlight the establishment of the African Continental Free Trade Area (AfCFTA), which presents an unparalleled opportunity for ECOWAS member states.

“By aligning with the AfCFTA, ECOWAS countries can leverage the wider African market to enhance their collective economic strength,” he said.

Idahosa urged member states to tackle issues as political instability, corruption, poor governance, infrastructural deficit, regulatory inconsistencies, divergent trade policies and customs procedures

He said that to overcome these challenges and leverage the opportunities of regional integration, there must be enhanced political will and governance reforms.

This, he said, would ensure that ECOWAS continued to support member states in strengthening democratic institutions, promoting good governance, and addressing political instability.

“Diplomatic efforts must be ramped up to prevent military coups and unconstitutional changes in government; investment in infrastructure is crucial.

“Governments and private-sector stakeholders must collaborate to fund key infrastructure projects, while ECOWAS work towards standardising trade and investment regulations.

“They must also reduce bureaucratic red tape, and improving customs processes to make the movement of goods and services more efficient,” he said.

Dr George Donkor, President, ECOWAS Bank for Investment and Development(EBID), noted that for five decades, ECOWAS has stood as a beacon of regional integration, fostering peace, stability, and shared prosperity across West Africa.

He was represented by Dr Olagunju Ashimolowo, Vice President, Operations, EBID.

He noted that the bank was created to strengthen ECOWAS financial architecture to deepen regional integration and socio-economic development.

According to him, EBID plays a pivotal role in the realisation of the ECOWAS integration agenda, bridging the financing gap for regional infrastructure and aligning its operations with the ECOWAS Vision 2050.

“Financing infrastructure, transport, energy and Information and Communication Technology (ICT) is one of EBID’s core priorities to facilitate the free movement of people and goods, a central objective of ECOWAS integration.

“To foster economic diversification and structural transformation, EBID promotes value chain and industrial development and finance agro-processing, manufacturing and resource-based industries.

“To enhance project sustainability and leverage private capital, the bank facilitates public-private partnership by releasing investment and providing guarantees among other initiatives,” he said.

Donkor said the bank would continue to expend efforts to contribute to building a coherent and interconnected West African economic space.

He said the EBID would serve not merely as an economic financial institution, but as an instrument for deepening economic cooperation, accelerating convergence, and reducing disparities across the ECOWAS sub-region.

Donkor said in spite of existing challenges in the region, the bank has
decided to adopt strategic responses aimed to strengthen its financial capacity, institutional performance, and development impact.