Cross-border trade in West Africa

Trading in Africa is motivated by the Africa Continental Free Area (AfCFTA) which influenced Regional Economic Communities (RECs) to work harder and gain economic popularity as a single market. In the Western part of Africa, states have been joined as one under the Economic Community of West African States (ECOWAS) to abolish restrictions on trade flows and establish a common customs tariff and commercial policy towards the third countries. Outstanding profits have been examined as cross-border trade was reported to amount to 5.5 million and 68 million in value in West African states especially Nigeria.

The challenge comes from the administrative and governmental authorities that do not perform some roles in removing the current issues affecting cross-border trade. The region is still dealing with trade barriers along borders, informal sources of financing, and an insufficient supply of reliable and affordable power. The Consul-General of Ghana High Commission argued on the unfairness of Beninois authorities to command Ghanaian businessmen to pay transit duties. She further stated that the action does not sail the same boat with the objective behind forming the African Continental Free Trade Area (AfCFTA). This is mostly driven by the bias between the Anglophone and Francophone nations breaking their unity for economic prosperity. Political instability is another unsolved barrier by the respective authorities, creating fear and terror for businessmen to even engage in business. West African authorities should step up their game and begin performing some transformative acts to help the economic status of their countries.

Actions to be taken by the West African government authorities

Trans-territory trading networks need to emerge that aim to impact national development. ECOWAS protocols have enabled trade to liberalize and be free from barriers of any kind but that has not been practically implemented. This should be the starting point to fully create an easy network for all neighboring countries. Else, in what better way can a nation’s economy rise other than by increasing the number of exports and imports of goods and services? This can also enhance digital connectivity among the members because the world of e-commerce has made people earn more money without involving much physical workforce, especially for women, and opening markets to isolated rural communities.

West African states should advocate for political unity among their member’s states. A unified region contributes among others, to making positive decisions due to the cooperation enhanced between separate states. One cannot deny the importance of effective cooperation because parties can come to an agreeable point in doing away with their problems as they understand and listen to one another. It is a vital aspect that bodies like the judiciary be on the front line of declaring peace and solidarity in Africa through their persuasive writing in national articles and court judgements.

There is a need for a new trade policy framework to assist regional access to export markets. Adopting a more streamlined agreement with African to reinforce sub-regional co-operation is critical. This would be a great initiative to increase economic linkage of member countries. Having the AfCFTA is one thing but if these authorities decide to sit down and make a more enhancive agreement among themselves then monitoring their improvement would be much easier than thought.

West African states should learn from other Regional Economic Communities (RECs) in their successful ways. It other words it’s called ‘bench marking’ as a way to learn and adopt what others are doing that makes them prosper in their activities. For example, The East Africa Community (EAC) has introduced the EAC Competition Policy and Law, that deter any practice that adversely affects free trade within the Benchmarking with these communities can help spot some ideas that can be used to develop their strategies much better.

Government authorities play a great part in boosting the state’s economic sphere and by adhering to the recommendations above West Africa can become the leading trading part of Africa. It should be known that Africans would benefit greatly from expanding and diversifying their participation in international trade and global value chains, reducing poverty, and transforming their economies. To prove this aspect, different contributions from various sides should be provided.

These are the writer’s own opinions and do not necessarily reflect the viewpoints of Liberty Sparks. Do you want to publish in this space? Contact our editors at [email protected] for further clarification.