West Africa’s SMEs Employ Millions — Why Are They Still Locked Out of Regional Trade?

• ECOWAS lawmakers have begun a five-day meeting in Cotonou to discuss strengthening MSMEs’ role in regional value chains.

• The discussions will focus on tackling barriers such as informality, limited financing and cross-border trade challenges.

• MSMEs account for more than 90% of businesses and 50% of employment across the ECOWAS region.

• The meeting is expected to shape parliamentary recommendations aimed at boosting regional trade and private sector-led growth.

July 27, (THEWILL) — Members of the Economic Community of West African States (ECOWAS) Parliament have begun deliberations on measures to strengthen Micro, Small and Medium-sized Enterprises (MSMEs) as formal participants in regional value chains, amid growing concerns over barriers limiting their contribution to cross-border trade and economic integration.

The discussions are taking place during the Parliament’s delocalised meeting of its Joint Committee on Industry and Private Sector, Macroeconomic Policy and Economic Research, Administration, Finance and Budget, and Public Accounts, holding from July 27 to 31 in Cotonou, Benin Republic.

The meeting, themed “Empowering MSMEs as Formal Drivers of ECOWAS Regional Value Chains,” will examine policy options aimed at increasing the participation of small businesses in regional commerce and addressing structural constraints affecting the sector.

According to a statement from the ECOWAS Parliament’s Communications Directorate, lawmakers will assess both the opportunities and challenges facing MSMEs before adopting recommendations intended to improve their integration into regional value chains.

The discussions are expected to focus on measures to formalise more small businesses, improve access to finance, remove trade bottlenecks and strengthen cross-border commercial activities across the ECOWAS sub-region.

The meeting brings together parliamentarians, policy experts and regional stakeholders at a time when governments across West Africa are seeking to expand intra-regional trade and deepen economic integration under existing ECOWAS frameworks.

MSMEs face integration hurdles

MSMEs remain central to the region’s economy but continue to face obstacles that limit their ability to scale operations beyond domestic markets.

A United Nations policy brief cited by ECOWAS estimates that MSMEs account for more than 90% of businesses across the region and provide about half of total employment, underscoring their significance to economic growth and job creation.

However, the UN noted that many small businesses remain only marginally integrated into regional value chains because of widespread informality, limited access to finance and persistent barriers to cross-border trade.

The outcome of the committee’s deliberations is expected to inform policy recommendations designed to strengthen the competitiveness of MSMEs and enhance their contribution to regional trade as ECOWAS continues efforts to promote economic integration among its member states.