The Economic Community of West African States (ECOWAS) has lamented over the low level of intra-regional trade within the sub-region, noting that several years after regionalism, intra-regional trade in ECOWAS is still consistently low at about 12 per cent.

The Commissioner, Industry, and Private Sector Promotion, ECOWAS, Kalilou Traore, explained that ECOWAS adopted the protocol of free movement of people and goods since 2000 based on the regional trade and commerce, but stressed that the level of regional trade still remains low at 12 per cent of total trade.

He explained that there was need to take more action to strengthen regional trade in the region, stressing that the only way to achieve this feat is the establishment of trade support bodies.

Traore, during a technical meeting convened in Lagos by the ECOWAS Private Sector Directorate to consider the draft on the ECOWAS Business House (EBH), said, “We need to take more action to strengthen this regional trade and one way to do that is through trade support bodies. We are here to develop the concept of an ECOWAS Business House (EBH) that will be a business oriented organisation at the regional level to facilitate trade among member countries.

“Although there are still lots to be done in the area of feasibility study so that we can have all the details of the project in order to involve all the stakeholders at the financial and member state level so that businesses can be created,” he said.

He stated the importance of Micro Small and Medium Enterprises (MSMEs) development and the status of the implementation of some regional programmes including the ECOWAS quality programmes, regional payments system, private sector and MSME development strategies and efforts at establishing the common market for free movement of persons and goods.

He said the overall goal of EBH system is to foster intra-regional trade, promote ECOWAS exports and deepen market penetration for MSME in the region.

He noted that it would also facilitate bulk creation, high quality regime and standardisation in the region, reduce cost of business for SME companies and promote the establishment of relevant trade infrastructure including quality infrastructure in the region.

“Our expectation is that within the first five years of establishment of the regional EBH, apart from boosting the Gross Domestic Product (GDP) in the regional economies, made in ECOWAS States product will be viable and visibly present for business in the regional market and companies to reap the gains from international trade.

Also speaking at the event, the Head Business and Enterprise Promotion, ECOWAS, Dr. Enobong Umoessien, stressed that the region has enjoyed a lot of support from countries, Non Governmental Organisations (NGOs) and groups, but called on the region to look inward by establishing a platform to drive the region’s project and harness the resources available in the region to drive development and also contribute to developing the region.

“We have to start looking at ways to leverage our capacities and resources to do the things we need to do. The project targets many of the industries and business communities in the region. As you about 90 per cent of our businesses are Small and Medium Enterprises (SMEs) and these businesses wants to export, distribute and connect with the international market. But the key challenges facing these businesses is that their products are small, so it is a challenge for them to move from one country to another in an efficient manner,” he said.

In his words, “This business house will enable them to aggregate their products and move as a group where they break bulk and distribute. There are so many SMEs with good products and services to offer but unfortunately, they do not have the adequate quantities. This is a very good initiative that will help SMEs go international working as a group.”

The Deputy Director, Nigerian Association of Chambers of Commerce, Industry, Mines and Agriculture (NACCIMA), Dr. Sani Yandaki, allayed fears of Nigeria and other countries in ECOWAS being a dumping ground, saying that the project will open markets for products made in the sub-region.

“The essence of the whole initiative is aimed at building capacities of micro businesses in the region by providing access to markets for the products and services. We want to connect these products to people who actually needs them in other parts of the sub-region. The EBH will act as a third party between the producers and the consumers,” he said.

“The essence is to facilitate trade that will bring about growth in our economy, job opportuinites and increase the GDP of the sub-region. All the goods that are going to be displayed at the business houses are going to be goods produced locally with locally sourced raw materials,” he added.