In Cotonou, ECOWAS is looking for ways to unlock the potential of West African MSMEs.

In Cotonou, the work of the ECOWAS Parliament’s joint committee continues around a strategic issue for the economic future of West Africa: how to enable MSMEs to reach a new level and fully play their role in transforming regional economies? During the presentations on Tuesday, several experts emphasized the need to create a more favorable environment for the development of these businesses, which are the backbone of the sub-region’s economy but still face many obstacles.

Digital innovation, an untapped accelerator

Speaking on the topic of digital innovation, Emmanuelle Vlavonou stated that the problem with West African MSMEs does not lie in their potential, but in the lack of a sufficiently structured ecosystem to support them. “MSMEs are not lacking in potential. Instead, what’s missing is infrastructure, an ecosystem that can support them,” she emphasized.

For the expert, the development of these enterprises first requires strengthening the legislative framework. However, texts alone are not enough. She advocates for establishing concrete support mechanisms, particularly tailored financing arrangements and tools that enable entrepreneurs to better seize the opportunities offered by digital technology.

Emmanuelle Vlavonou also stressed the need to establish a true culture of public policy evaluation. She recommends that adopted laws be accompanied by specific objectives and performance indicators to measure their impact over time.

The BIDC calls for reducing risks to facilitate access to financing

The representative of the ECOWAS Investment and Development Bank (BIDC) presented the financial instruments established by the institution to support businesses and strengthen regional economic integration. According to her, MSMEs play a crucial role in job creation, income generation, and economic growth. However, their development is hindered by several constraints: difficult access to financing, risk management, limited access to regional and international markets, and weak transformation capabilities.

The BIDC aims to address these challenges through various mechanisms: medium and long-term loans, credit lines for local financial institutions, guarantees, trade finance facilities, equity participation, and technical assistance. The institution also emphasizes risk mitigation mechanisms, such as partial credit guarantees and risk-sharing arrangements with financial partners. “Risk mitigation mechanisms are an essential lever to stimulate private investment, enhance business competitiveness, and accelerate regional economic integration,” the BIDC representative reminded.

Certification, an essential step toward competitiveness

Another major point discussed was the issue of standards, quality, and certification. One speaker highlighted that these dimensions are still insufficiently addressed in regional integration strategies. Like countries such as China or South Korea, which have built their industrial competitiveness on solid systems of standardization and certification, West Africa must, in his view, enhance its quality infrastructures. “Regional integration will inevitably go through quality, standardization, and certification,” he asserted.

He particularly recommends harmonizing standards within ECOWAS so that a product certified in one member state can be recognized throughout the community area. Such a reform would help reduce costs for businesses and limit non-tariff barriers that still hinder trade.

Lawmakers advocate for effective implementation of community texts

The debates also allowed ECOWAS lawmakers to question experts about the survival of businesses, the implementation of community policies, and ongoing obstacles to free movement. The parliamentarians particularly raised the issue of the high mortality rate of businesses and requested more data to distinguish the challenges specific to the formal sector from those faced by the informal sector.

In the realm of regional integration, several voices denounced the gap between stated ambitions and the reality faced by economic operators. Border controls, administrative procedures, and non-tariff barriers continue to slow down trade between member states.

Deputy Taa Wongbe called on lawmakers to strengthen their oversight role to encourage governments to better adhere to community commitments. “It is necessary to set up a regional parliamentary commission that can go out into the field, identify obstacles, and push governments to implement concrete reforms,” he proposed.

Toward better integration of MSMEs into regional value chains

For his part, Nigerian Deputy Dr. Bashiru Dawodu emphasized the need to better integrate MSMEs into regional value chains. For him, the main challenge for ECOWAS is no longer the drafting of policies but their effective implementation. He called for strengthened cooperation among community institutions, governments, and parliamentarians to ensure compliance with regional protocols, particularly those related to the free movement of people, goods, and services.

The day’s activities concluded with a panel moderated by journalist Ozias Sounouvou. Claudia Noutai, an auditor and management officer at VIPRIN and the Academy of Enterprises, stressed the issue of financing for MSMEs, which represent a major part of the regional economy. She advocated for the creation of a specific mechanism for financing working capital and the integration of an audit and governance system to ensure transparency and the sustainability of support mechanisms.

Until July 31, participants will continue their discussions to identify concrete solutions capable of overcoming the main barriers to the development of MSMEs and making these businesses a true pillar of West African economic integration.