Strengthening Regional Value Chains and Market Access in the ECOWAS Region

Promoting trade and regional integration through the development of high potential regional value chains in ECOWAS Region

Towards a Solution

With a strong, productive base, existing processing capacity, and established regional trade hubs such as Côte d'Ivoire, Ghana, Nigeria, and Senegal, ECOWAS countries appear well equipped to create regional value chains in sectors such as agri-food products or cosmetics. Improving cross country coordination, generating information on high potential regional value chains, supporting the creation of business linkages across borders, and improving the cost-effectiveness of non-tariff measures (NTMs) will play a major role in allowing ECOWAS countries to harness these opportunities.

The subject project builds on lessons from similar IsDB projects in the region with partners expertise in the field on market access, regional integration and Non-Tariff Measures (NTMs) as well as UNCTAD’s 2020 ECOWAS Services Policy Review 1&2. Furthermore, this project is particularly relevant in view of the recent entry into force of the African Continental Free Trade Agreement (AfCFTA) which progressive implementation represents a unique opportunity to boost intra-African trade and develop local value addition.

The project objective is to build the capacity of participating IsDB and BADEA member countries from ECOWAS region – namely Burkina Faso, Guinea, Nigeria, and Sierra Leone – to promote trade, value addition and regional integration through the development of high potential regional value chains. The project objective is contributing to the SDG Target 17.11, aimed at increasing the exports of developing countries, in particular doubling LDCs' share of global exports by 2020. In addition, the whole project theme is part of SDG Target 11.a by promoting regional economic integration and interconnectivity, strengthening regional development planning.

The project key outputs are also fully aligned with SDG targets 17.11,17.14, and 11.a, and they are as follow:

• Identification and prioritization by national stakeholders of two regional value chains with high potential in terms of value addition, export, and intra-regional trade;
• Support to the formulation and implementation of a joint roadmap and a set of regional projects for the development of priority value chains in beneficiary countries;
• Mapping of relevant NTMs and increased regulatory collaboration among beneficiary countries to enhance intra-regional trade, competitiveness, and market access in the priority value chains.

A desk review was conducted to inform the country selection and map sectors in which regional value chains could be supported by the project. The review highlighted the existence of promising trade flows of value-added goods between ECOWAS countries in agri-food, personal care, and metallurgy sectors. It identified 13 product groups in which high intra-regional trade and competitiveness levels indicate a potential for regional value chain development. Some of these sectors generate significant intra-regional trade flows in up to 10 ECOWAS countries. The large number of countries involved in the sectors identified by the desk review confirms the regional relevance of the proposed project and its ability to generate positive impacts beyond its direct beneficiary countries.

The project adopts a systematic and participatory implementation approach, starting from identifying 4-6 high potential regional value chains in consultation with beneficiary country governments. To ensure that the project would promote sustainable development, sectors associated with negative environmental externalities (e.g., oil and plastic products) were excluded from the analysis.  This is followed by extensive regional stakeholder consultation for the selection of priority value chains. This will bring together two government officials per beneficiary country along with ECOWAS, IsDB, BADEA, and UNCTAD representatives.

The project implementation activities continue with the value chain analysis and identifying bankable project opportunities to advance regional production, value addition, and trade. In identifying project opportunities, particular attention will be paid to cross-border and public-private partnerships. Finally, prioritized project concept notes and regional value chain development roadmap will be finalized in consultation with beneficiary country governments and launched at a regional workshop.

To ensure the sustainability of project results, an online course on value chain development and NTMs will be developed and conducted to build regional stakeholders’ capacity to support the emergence of regional value chains and create an enabling environment for intra-regional trade. This training will incorporate findings from the value chain analysis and NTM mapping. Its target audience will include government representatives (Trade Ministries and sectoral Ministries associated with the development and regulation of the priority value chains), business representatives, and entrepreneurs.