• Home
• Columnist
• Videos
• Artist
  • Musicians
  • Actors
  • Comedians
• Notable Nigerians
• Legend Dies
• Articles
  • Nigeria Articles
• Photos
• Submit Article

Participants at the second ECOWAS Investment Forum in Lagos examine ways of promoting economic integration of the region

How can the Economic Community of West African States,   ECOWAS,   achieve effective regional integration? This was the concern of stakeholders and participants at the second ECOWAS investment forum held in Lagos, recently. Wilson Atta Krofah, president, Federation of West African Chamber of Commerce and Industry, said that a conducive business environment is imperative for the promotion of regional economic goals.

He also said that business within the region would thrive if there are adequate and consistent laws and regulations, strong legal and judicial institutions and alternative dispute settlement mechanisms. According to Krofah, ECOWAS should work closely to promote the establishment of a single capital market in the region, as well as micro-finance institutions to cater for the needs of the micro and small and medium-size enterprises.

For him, a strong and efficient value system is key to increased productivity, competitiveness and entrepreneurship particularly in the region’s agricultural sector. This, he said, will go a long way to assist in channelling information on agricultural production in one country, develop channels of distribution to enhance value addition in another country, thereby generally improving the profitability and incomes of farmers in the region. “Indeed, regional integration and co-operation, as targeted by the treaty establishing ECOWAS is not only an economic necessity, it is at the core of ECOWAS survival strategy. The potential for co-operation already exists, we only need to build on it,” he said.

  Papa Demba Thiam of the World Bank Group, said that economic integration should be customised to help member countries build resilient economies and also take advantage of globalisation. He also said that to build effective regional integration, there is need for a clear division of labour between public and private sectors. For him, provision of physical, institutional, human and financial infrastructure would support integrative resource – based inclusive development. “The bottom line is the development of an environment that creates and spreads investment opportunities for private sector throughout the national regional space and in a sustainable manner over time,” he said. For James Gbeho, president, ECOWAS Commission, regional integration would be facilitated by investment. But one key question is, “why invest in ECOWAS?” The region has a low risk profile. The region comprises emerging, stable and democratic member states pursuing values in transparency, accountability, corruption free environment and self sufficiency. Also the region has arable land mass of 5.11 million square kilometres, strong work force and a population of more than 300 million inhabitants. There are abundant natural resources which support investment in agriculture, mining, petroleum and tourism. The region has highly educated and youthful human resources, offering competences in fairly priced labour and wage markets.

But Joe Edge, president, NCI International Services, an American construction products manufacturing company, said for ECOWAS to attract huge investment, the region must provide stable governments, stable currencies, business- friendly environment and ease of repatriation of funds. Also, there must be safety for investors, rule of law and less bureaucratic bottlenecks. Edge also said that foreign businessmen need modern housing, good water and sanitation; employer-friendly and trainable workforce.

According to him, ECOWAS should facilitate the involvement of the private sector in the regional integration process through support to regional private sector institutions and the creation of relevant new ones. Also the region should promote harmony and synergy among the activities of the institutions and facilitate consultations among the private sector in other regions of the world to enhance exchange of information. “ECOWAS must promote the development of a viable regional market with strong linkages in all member states to facilitate the mobilisation of investment capital and wealth creation,” he said. 

Trade barriers and absence of a common currency are mitigating against the realisation of closer ties within the region, at a time other regions of the world are strengthening economic blocs to guarantee their competitiveness. Newswatch learnt that countries in the region are trading more with other parts of the world than they are trading among themselves. For example, in 2003, while intra-community imports amounted to $3.96 billion, the worth of total imports to the region amounted to $30.13 billion. This means that imports within the region accounted for only 13.14 percent of total imports into the region.

Similarly, in 2007, ECOWAS intra-community imports of $5.13 billion accounted for 8.85 percent of the total goods and services imported into the region valued at $57.95 billion. The exports within the region valued at $6.65 billion accounted for 9.76 percent of the total goods and services exported to the entire world.