Micro, Small, and Medium Enterprises (MSMEs) in the ECOWAS region, under the ECOWAS Small Business Coalition (ESBC), have called for the establishment of a railway corridor linking all member countries, alongside the existing road network.
The proposal was made at the end of their inaugural exhibition and workshop, which took place from November 21 to November 23 in Abidjan, Ivory Coast.
According to the News Agency of Nigeria (NAN), the event, organized by the ESBC in partnership with the ECOWAS Commission and Ivory Coast’s Ministry of Commerce and Industry, brought together small business operators from across the region.
The coalition highlighted the challenges faced by SMEs in transporting goods and services within the ECOWAS subregion.
They emphasized the need for better communication and a clearer understanding of cross-border trade obligations, as well as improvements in the movement of goods and people.
While ECOWAS has confirmed the free movement of goods and people under existing protocols, it clarified that such movements still require compliance with formalities and customs duties.
Addressing transportation and trade barriers
NAN reports that during the workshop, members of the ESBC presented a range of proposals to address transportation challenges.
They called for an end to cross-border harassment and corruption, which they attributed to the imposition of unnecessary taxes.
They also suggested that local Small Business Coalitions (SBCs) should be empowered to issue certificates of origin to entrepreneurs to streamline trade processes.
Additionally, the coalition proposed the establishment of online training platforms for SBCs to enhance their capacity to support SMEs.
Proposals for improving access to information and financing
- The coalition also noted the importance of access to information for the success of SMEs and urged them to take advantage of policies such as the African Continental Free Trade Area (AfCFTA) and ECOWAS frameworks.
- They called for greater awareness of these initiatives to help SMEs navigate trade barriers.
- Furthermore, reports inform that the coalition underscored the need for the harmonization of fiscal policies across the ECOWAS region and advised SMEs to choose suitable business models and consult advisory firms for better guidance.
Innovation and sustainable development for SMEs
- The coalition also discussed the need for greater innovation and sustainability in the region’s SMEs to enhance their competitiveness.
- They proposed training programs focused on certification, efficient technology transfer, and increased research to help businesses expand across borders.
- Despite the availability of financing mechanisms for SMEs, the coalition pointed out that many small businesses struggle to access these funds due to inadequate resources and poor absorption capacity.
- In response, they suggested focusing on promoting new business models suited to African realities and learning from the BRICS nations’ approach to economic development.
Future initiatives for strengthening SMEs
- ESBC proposed several initiatives to further support SMEs in the region.
- These included the creation of an ESBC television network to raise awareness, the establishment of a dedicated bank for SME financing, and the development of strategies to encourage a common currency within ECOWAS.
- They also called for the removal of customs and monetary barriers and the establishment of international shipping lines to improve logistics. To address the needs of landlocked countries, the coalition proposed facilitating better access to ports for these nations.
- The ESBC concluded that substantial work remains to be done to enhance the competitiveness and growth of SMEs in the ECOWAS region, particularly in the areas of innovation, financing, and cross-border trade facilitation.
