The ECOWAS Parliament has recommended sanctions against member countries for failure to implement adopted policies for the development of Micro, Small, and Medium-sized Enterprises (MSMEs).

Speaking Monday at the five-day delocalized meeting of the Parliament’s Joint Committee on Industry and Private Sector, Macroeconomic Policy and Economic Research, Administration, Finance and Budget and Public Accounts, in Cotonou, Republic of Benin, the regional parliament insisted that the sub-region is not bereft of policy formation but the enabling environment for businesses to thrive.

Describing MSMEs as the backbone of local economies considering its capacity to generate employment, stimulate innovation, promote entrepreneurship, empower women and youths as well as facilitate cross-border trade, it emphasized the need to ensure its success.
In his remarks on behalf of the joint committees, the Co-Chairperson, Alhagie Darbo, noted that informal sector’s contributions to economic activities and labour force can never be over-emphasize, hence the need to empower it to thrive.

He said: “Across our region, Micro, Small and Medium Enterprises constitute the backbone of local economies. It generates employment, stimulate innovation, promote entrepreneurship, empower women and young people, and facilitate cross-border trade. Yet, despite their enormous contribution, a significant proportion of these enterprises continue to operate informally, limiting their access to finance, markets, technology, business support services and legal protection.

“It is estimated that the informal sector accounts for nearly 90 per cent of economic activities and employs not less than 60 per cent of our labour force across 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.”

The lawmaker however advocated practical policy measures that will remove barriers confronting MSMEs and unlock their full potentials within the sub-region.

He said, “As representatives of the peoples of West Africa, we have a collective responsibility to identify practical policy measures that will remove barriers confronting MSMEs and unlock their full potential.

Formalising and strengthening these enterprises is not merely an economic imperative; a pathway to sustainable development and poverty reduction.

“The adoption of ECOWAS Vision 2050 provides us with a clear strategic framework for transforming our Community into a peaceful, prosperous and fully integrated region driven by its people. Achieving this vision requires stronger institutions commitment, including enabling business environment, where MSMEs can thrive, compete and participate effectively in region and beyond”.

The lawmaker thereafter called for discussions that will not only identify challenges but provides practicable panaceas for a thriving MSMEs among member states.
“Our discussions over the coming days should therefore move beyond identifying challenges. We must 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 expressed confident that the wealth of experience represented at the meeting will generate insightful discussions and actionable recommendations capable of advancing the economic transformation of the Community.
Declaring the meeting open, the Speaker, ECOWAS Parliament, Hadja Memounatou Ibrahima, held that MSMEs remain a major driver of the economy and the development of the sub-remain.

Represented by the Second Deputy Speaker, Adjaratou Traore Coulibaly, the Speaker believed that MSMEs can assist in addressing the security situation confronting the region.
According to her, when women and youths are empowered to contribute to economic development through MSMEs, insecurity would be indirectly addressed.

The committee strongly believe that if recommendations by members and experts are implemented by relevant authorities, regional economy would be strengthened to compete with developed communities around the world and reposition it to take its pride of place among the comity of nations.

In his presentation on the topic, ‘Trade Facilitation, Regulatory Reforms and Formalisation’ yesterday, Dr Tony Luka Elumelu of the ECOWAS Business Council Secretariat noted that ECOWAS has very good policies, protocols and legal instruments in terms of private sector development. He however called for commitment towards implementation of previously adopted decisions.

Reminding ECOWAS leaders that the region is in competion with others, he cautioned against bureaucratic bottlenecks against legitimate traders. Rather, we should ensure that we have necessary infrastructure for the effective operation of the African Continental Free Trade Agreement (AfCFTA) protocol.

On his part, the Principal Program Officer, Enterprise and Business Promotion, ECOWAS Commission, Dr Olalekan Afolabi, expressed need for formalization of businesses as well as implementation of African Trade Competitive and Market Access Program of the European Union, which is a £50 million project.