Challenges Remain for Trade Integration in West Africa

Since its establishment in 1975, the Economic Community of West African States (ECOWAS) has been a regional economic community (REC) success story, enabling free movement of people and enhancing trade integration across its 15 member states. When it comes to the movement of agricultural goods, however, ECOWAS continues to be hampered by regional conflict, political instability, corruption, poor infrastructure and logistical capabilities, and the lack of a common regional currency. These ongoing challenges pose a threat to food security and true trade liberalization in the region, according to a chapter in the 2024 Africa Agriculture Trade Monitor.

Research shows that the agriculture sector in ECOWAS is on average less protected than that of other RECs in Africa. The chapter’s findings also suggest that the sectors most protected by non-tariff measures (NTMs) within ECOWAS are often not those that are most strategically important.

Politics form another challenge. At the beginning of 2024, Burkina Faso, Mali, and Niger announced their intention to leave ECOWAS in the midst of rising political tensions. The full impact of this shift on customs and trade between these countries and the rest of ECOWAS is not yet known, and this uncertainty will likely in and of itself reduce trade in the region as traders and investors attempt to avoid risk. Any tariff or non-tariff measures (NTMs) enacted by these countries on products from the rest of ECOWAS, or vice versa, will only act to further hamper free trade and reduce food security.

The departure of Burkina Faso, Mali, and Niger also raises question of the REC’s sustainability in the face of political instability and disagreements, the authors posit.

In addition to challenges related to political instability, the problem of corruption remains rampant in the political and trade sphere in the region. Research has shown that bribery and smuggling are common, with substantial negative impacts on trade flows and food security.  

The lack of a single regional currency poses another stumbling block to true trade liberalization and growth. While eight ECOWAS countries currently use the CFA franc as their currency, the other seven continue to use their own currencies. By moving to a single common currency, and thus removing the exchange rate volatility resulting from the use of multiple currencies, trade integration could be strengthened.

Informal trade flows also make up a significant portion of overall intraregional trade among ECOWAS countries, the chapter finds. Such informal flows are by nature not well documented, and the resulting lack of formal data surrounding the quality of trade throughout the region makes it difficult to estimate each country’s trade balance and establish appropriate regional policies. Food security is also negatively impacted by this lack of data, as policymakers are unable to generate a clear picture of the balance of agricultural and food products within each country. While some efforts have been made recently to improve statistics regarding agricultural trade in the region, much remains to be done.

The chapter emphasizes that all ECOWAS member states have signed the Africa Continental Free Trade Area (AfCFTA), the implementation of which would help speed trade integration in the region. As recent events have shown, however, sustained political commitment is needed to make ECOWAS a long-term success and drive agricultural and economic transformation.

Sara Gustafson is a freelance communications consultant.