The ECOWAS Parliament has warned that the dominance of informal businesses across West Africa is limiting economic growth, productivity, employment opportunities and regional competitiveness.
The regional parliament estimates that nearly 90 per cent of economic activities and at least 60 per cent of the workforce remain outside the formal economy.
The concern was raised during the opening of a joint committee meeting in Cotonou attended by lawmakers, economic experts, private sector representatives and development partners.
Co Chairperson of the joint committee, Alhagie Darbo, said the figures reflected the entrepreneurial strength of West Africans but also exposed weaknesses in policies designed to support business growth.
He described Micro, Small and Medium Enterprises as the backbone of regional economies because of their contribution to employment, innovation, youth empowerment, women’s participation and cross border trade.
However, Darbo said the informal status of most enterprises prevents them from obtaining finance, technology, legal protection, business support and access to larger markets.
He called on ECOWAS member countries to simplify business registration, harmonize regulations, improve access to affordable finance and support the digital transformation of small enterprises.
Darbo also urged governments to strengthen productive capacity and enable more businesses to participate in regional value chains under the ECOWAS Trade Liberalization Scheme and the African Continental Free Trade Area.
Speaker of the ECOWAS Parliament, Hadja Memounatou Ibrahima, linked the expansion of economic opportunities to efforts to reduce insecurity in the region.
Represented by Second Deputy Speaker Adjaratou Coulibaly, the Speaker said empowering women and young people through sustainable enterprises could reduce unemployment and address some of the conditions that fuel violence and instability.
The committee is expected to develop recommendations for ECOWAS institutions and member states.
The proposals will focus on industrialization, regional trade, job creation and the establishment of a more supportive environment for businesses.
Small enterprises make up more than 90 per cent of businesses in many African countries but often remain informal because of multiple taxes, burdensome regulations, poor infrastructure and limited access to finance.
