Micro, Small and Medium Enterprises (MSMEs) in the ECOWAS region, under the ECOWAS Small Business Coalition (ESBC), have called for the creation of a rail corridor connecting all member countries, sides of the existing road network.

The proposal was made following their inaugural exhibition and workshop, which took place from November 21 to 23 in Abidjan, Ivory Coast.

According to the News Agency of Nigeria (NAN), the event, organized by ESBC in partnership with the ECOWAS Commission and the Ministry of Trade and Industry of Ivory Coast, brought together operators of small businesses throughout the region.

The coalition highlighted the challenges faced by SMEs in the transportation of goods and services within the ECOWAS sub-region.

They highlighted the need for better communication and a clearer understanding of cross-border trade obligations, as well as improved movement of goods and people.

If ECOWAS confirmed the free movement of goods and people within the framework of existing protocols, it clarified that such movements always require compliance with formalities and customs duties.

Addressing transport and trade barriers

NAN reports that during the workshop, ESBC members presented a series of proposals to address transportation challenges.

They called for an end to cross-border harassment and corruption, which they blame on the imposition of unnecessary taxes.

They also suggested that local small business coalitions (SBCs) be empowered to issue certificates of origin to entrepreneurs to streamline business processes.

Additionally, the coalition proposed the creation of online training platforms for SBCs to strengthen their capacity to support SMEs.

Proposals to improve access to information and financing

• The coalition also highlighted 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 aimed at helping SMEs overcome trade barriers.
• Furthermore, reports indicate that the coalition stressed the need to harmonize tax policies across the ECOWAS region and advised SMEs to choose appropriate business models and consult consultancy firms for better directions.

Innovation and sustainable development for SMEs

• The coalition also discussed the need for greater innovation and sustainability in the region’s SMEs to improve their competitiveness.
• They proposed training programs focused on certification, effective technology transfer and increased research to help businesses expand across borders.
• Despite the availability of financing mechanisms for SMEs, the coalition highlighted that many small businesses struggle to access these funds due to insufficient resources and low absorptive capacity.
• In response, they suggested focusing on promoting new business models adapted to African realities and drawing lessons from the BRICS countries’ approach to economic development.

Future initiatives to strengthen SMEs

• ESBC has proposed several initiatives to further support SMEs in the region.
• These included the creation of an ESBC television network to raise awareness, the creation of a bank dedicated to financing SMEs and the development of strategies to encourage a common currency within ECOWAS.
• They also called for the removal of customs and currency barriers and the creation of international shipping lines to improve logistics. To meet the needs of landlocked countries, the coalition proposed facilitating better access to ports for these countries.
• The ESBC concluded that substantial work remains to be done to improve the competitiveness and growth of SMEs in the ECOWAS region, particularly in the areas of innovation, financing and cross-border trade facilitation.

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