Micro, Small and Medium Enterprises (MSMEs) under the aegis of ECOWAS Small Business Coalition (ESBC), have proposed the creation of a railway corridor connecting all ECOWAS countries, in addition to the existing road network.
They made the call at the end of their inaugural exhibition and workshop which held from Nov. 21 to Nov. 23, in Abidjan, Ivory Coast.
The event was organised by ESBC, in collaboration with the ECOWAS Commission and Ivory Coast’s Ministry of Commerce and Industry.
The coalition noted the difficulties that the small business operators face in transporting their goods and services between and among member states and emphasised the need for improved communication about cross-border trade obligations.
It, however, notes the clarification by ECOWAS that the movement of goods and people within the subregion is free in line with existing protocols but is not exempt from formalities and customs duties.
The coalition also proposed solutions to the challenges of transporting the SME’s goods to include the need to end cross-border harassment and corruption due to unnecessary “taxes.”
Members also proposed the empowering of local SBCs to enable them issue certificates of origin to entrepreneurs, as well as the establishing of online training sessions for their capacity building.
The coalition also proposed the creation of a railway corridor connecting all ECOWAS countries, in addition to the existing road network.
According to the coalition, access to information is key to SMEs’s success, hence, the need to raise awareness, adding that they should leverage the recently unveiled African Continental Free Trade Area (AfCFTA and ECOWAS policies.
It also emphasises the need for the harmonisation of fiscal rule across ECOWAS, as well as the need for SMEs to choose appropriate business models and consulting advisory firms.
The report notes that much remains to be done to improve competitiveness through innovation and sustainability to push SMEs beyond borders, while proposing training them on certification, efficient technology transfer and increasing research.
The coalition further noted that financing was at the core of SMEs’ challenges because while financing mechanisms are in place, SMEs’ absorption capacities are difficult, as many are ill-equipped to leverage these mechanisms.
They, therefore, proposed to focus on promoting innovation and new business models that would fit African realities, such as reimagining economic development models and learning from BRICS approaches.
The group also proposed the establishing of an ESBC television; a bank for SME financing; the designing of strategies to encourage the creation of a common currency; and lifting of customs and monetary barriers.
The coalition also proposed the creation of international shipping lines, establishing clear legislation or regulations applicable to all ECOWAS states, as well as facilitating access to ports for landlocked countries.