ECOWAS Parliament has called for urgent policy reforms to unlock the growth potential of Micro, Small and Medium Enterprises (MSMEs), warning that millions of businesses across West Africa remain trapped in the informal sector with limited access to finance, markets and legal protection.
The call was made on Monday at the opening of a joint committee meeting of the ECOWAS Parliament in Cotonou, Republic of Benin, where lawmakers said strengthening MSMEs is critical to achieving regional economic integration, job creation and poverty reduction.
Speaking on behalf of the Joint Committee on Industry and Private Sector, Macroeconomic Policy and Economic Research, Administration, Finance and Budget, and Public Accounts, the committee’s Co-Chairperson, Hon. Alhagie Darbo, said MSMEs remain the backbone of West African economies but continue to face structural barriers that hinder their growth.
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“Across our region, Micro, Small and Medium Enterprises constitute the backbone of local economies. They generate employment, stimulate innovation, promote entrepreneurship, empower women and young people, and facilitate cross-border trade,” Darbo said.
He noted that despite their enormous contribution to regional economies, a large proportion of MSMEs still operate informally, restricting their access to finance, technology, business support services and wider markets.
According to him, the informal sector accounts for nearly 90 per cent of economic activities and employs at least 60 per cent of the labour force across ECOWAS member states.
“While this demonstrates the entrepreneurial spirit of our people, it also highlights the urgent need to create enabling policies that encourage formalisation, improve productivity and integrate MSMEs into regional and continental value chains,” he added.
Darbo urged lawmakers to move beyond identifying challenges and focus on practical policy recommendations capable of removing obstacles facing small businesses across the sub-region.
He said formalising and strengthening MSMEs was not only an economic necessity but also a pathway to sustainable development and poverty reduction.
He further linked the effort to the implementation of ECOWAS Vision 2050, saying the regional development blueprint requires stronger institutions and a more enabling business environment for enterprises to thrive.
“Our discussions should focus on developing practical recommendations that will support harmonised policies, improve access to finance, enhance digital transformation, facilitate intra-regional trade, strengthen productive capacities and promote the participation of MSMEs in regional value chains under the ECOWAS Trade Liberalisation Scheme and the African Continental Free Trade Area,” he said.
Declaring the meeting open, Speaker of the ECOWAS Parliament, Hon. Hadja Memounatou Ibrahima, represented by the Second Deputy Speaker, Hon. Adjaratou Traore Coulibaly, described MSMEs as a major driver of economic growth and development across the region.
She also linked the development of small businesses to improved security, noting that empowering women and young people through entrepreneurship would help address the root causes of insecurity confronting several ECOWAS member states.
According to her, creating economic opportunities through MSMEs would not only stimulate inclusive growth but also contribute to lasting peace and stability in the region.
The lawmakers expressed optimism that recommendations from the meeting, if adopted by ECOWAS member states, would strengthen West Africa’s economies, improve regional competitiveness and accelerate the bloc’s economic integration agenda.