Abstract
The West African region similarly to the whole African continent is fragmented. It is made up of countries whose domestic markets are too small to achieve the economics of scale that could allow them to have the robust and equitable growth likely to create sustainable jobs. Under these conditions, regional economic integration, which could fosters free movement of goods, services, persons and capital between national markets, is essential for achieving the aforementioned growth and job-creation objectives.
In this regard, the 2020 Vision of the Economic Community of West African States (ECOWAS) aims to “create a borderless, peaceful, prosperous and cohesive region....” The pillars of the regional strategic plan derived from this vision include, (i) deepening economic and monetary integration; and (ii) strengthening mechanisms for integration into the global market.
Despite the wide range of opportunities offered by the ECOWAS single market and the institutional progress achieved in terms of regional integration within the zone (free trade area, adoption of a Common External Tariff in 2013 which enter into effect on January 2015, prospects of a single currency in 2020); there are persistent constraints that severely limit the benefits which the countries could derive from regional integration to boost their competitiveness.
The proposed paper analyses, over the period 1995–2011, among others, the impact of the ECOWAS FTA on trade structure, regional specialization and regional trade performance, on economic growth and income per capita. Finally, the paper concludes with some policy recommendations.
Paper presented at the Sixth Annual Conference on Regional Integration in Africa (ACRIA 6) on the theme: investment and competitiveness in Africa, Lagos, 1–3 July 2015.
The opinions expresses in this paper are those of the authors and don’t reflect the view of African Development bank nor those of its Board of Directors or the countries they represent
This is a preview of subscription content, log in via an institution to check access.
Access this chapter
Tax calculation will be finalised at checkout
Purchases are for personal use only
Notes
- 1.
However, the recent turbulence in the Euro zone related to the Greek debt crisis and the level of preparedness of the WAMZ member countries to meet the criteria may lead to a new postponement of the Unique Currency date unless radical measures are taken in the meantime to that end.
- 2.
New 3 Primary criteria: (i) Average annual inflation rate < = 10 % with a long term goal of < = 5 % by 2019; (ii) Budget deficit (including grants)/GDP < = 3 %; (iii) Gross reserves > = 3 months of imports. New 3 Secondary criteria: (i) Public debt/ GDP < =70 %; (ii) Central Bank financing of budget deficit < = 10 % of previous year’s tax revenue; (iii) Nominal exchange rate variation of + or −10 %.
- 3.
The sector account for more than 34 % on average to GDP ranging from 7.2 % for cape Verde up to 54.1 % for Sierra Leone.
- 4.
Products meeting preferential treatment of WAEMU liberalization scheme.
- 5.
These are products for which there is therefore competition. We see from this figure that there are few products (according to a detailed classification) where countries are competing. This finding contradicts the widespread idea that there is more competition than complementarity between the countries of the region. This common misconception is probably based on comparisons of products according to aggregated classifications.
- 6.
For Nigeria, the high share of oil in exports leaves little room for specialization for other products and therefore diversification. This result is consistent with a recent study carried out by Nigeria Country Office of African Development Bank entitled “Structural transformation of the Nigerian Economy: a Policy Paper”, September 2013, (p. 7 and 25) which shows that the Nigerian economy was more diversified in the 1960s and before the oil boom of the early 1970s than today where it is dominated by the oil economy and its Dutch disease effect on other sectors. Indeed, the non-oil exports, which accounted for 78 % of GDP in the 1960s decreased drastically to 3 % in the 2000. Petroleum products are the main exports of Nigeria to the ECOWAS countries representing more than 85 % since 1997. Such a situation has not encouraged the development of other products (diversification). Maybe the recent drop in oil price will give incentive for more diversification.
Bibliography
African Development Bank (2010a) Transport corridors to facilitate interregional trade and exports in the ECOWAS region, Nov 2010
African Development Bank (2010b) Senegal—country strategy paper (2010–2015), Country Operations Department—West Region, Sept 2010
African Development Bank (2011) RISP 2011–2015, Mar 2011
African Development Bank (2011) The_Africa_Infrastructure_Development_Index, May 2011
African Development Bank (2013) System of indicators to monitor regional integration in Africa, Revised Sept 2013 (ADF/BD/WP//2012/134/Rev.2)
French Development Agency and African Development Bank (2009) 2050—Energy for Africa, Dec 2009
African Development Bank. Action plan to promote regional integration
African Development Bank. Report on Burundi Infrastructure
Ba DB (2001) Le problème de la compatibilité entre l’UEMOA et l’OHADA in “La libéralisation de l’économie dans le cadre de l’intégration régionale: le cas de l’UEMOA”, sous la direction de Pierre MEYER, (The problem of compatibility between WAEMU and OHADA in “The liberalization of the economy in the context of regional integration: the case of WAEMU”, under the leadership of Peter MEYER) EBIC Publication No. 3, Presses Africaines
Basic Texts of the WAEMU Court of Justice (2012)
Bela B (1965) Trade liberalization and revealed comparative advantage. Manchester Sch Econ Soc Stud 33:99–123
BRIGA Luc Marius I La problématique de la juridictionnalisation des processus d’intégration en Afrique de l’ouest (The problem of jurisdictionalisation of the integration process in West Africa). http://www.institut-idef.org/IMG/pdf/Microsoft_Word_-La_problématique_de_la_jurictionalisation.pdf
CACID/ENDA (2012) L’état du commerce en Afrique de l’Ouest (The state of trade in West Africa)
Commission de Régulation du Secteur de l’Electricité, Révision des conditions tarifaires de SENELEC, période tarifaire 2014–2016, Première consultation publique, Document de consultation» (Electricity Sector Regulatory Commission, Revision of SENELECs Tariff Conditions for the period 2014–2016, First public consultation, Consultation document), Feb 2013
Eco (Currency)—Wikipedia
ECOWAS (2010) ECOWAS vision 2020, June 2010
ECOWAS Commission (2009) Community development programme (CDP) in June 2009
ECREEE (2012) ECOWAS renewable energy policy, Sept 2012
Fau-Nougaret M (ed) (2012) La concurrence des organisations régionales en Afrique, (Competition of regional organizations in Africa), Harmattan
ERERA Forum (2012) Développement des interconnexions et des échanges transfrontaliers: Problèmes pour l’instauration du marché de l’électricité ouest africain (Development of interconnections and cross-border trade: problems relating to the establishment of the West African electricity market), El Hadj Ibrahima Thiam, Nov 2012
http://news.moneygh.com/pages/economy/201208/554.php. Eco dream shot down, Retrieved on 14 May 2015
Jean-Claude G (1975) La Communauté économique de l’Afrique de l’Ouest, antécédents et perspectives (The economic community of West Africa, history and perspectives). French Yearb Int Law 21:197–215
Law No. 2012–31 of 31 Dec 2012: Exposé des motifs du Code général des impôts (Explanatory statement on the general tax code), Official Gazette No. 6706 of 31 Dec 2012
Loi 2004–13 du 1er mars-Loi CET (Construction exploitation transfert d’infrastructures) (Law No. 2004–13 of 1 March—BOT—Build, Operate and Transfer infrastructure-Law), amended by Law 2009–21 of 4 May 2009 and the Decree of Implementation of 2007 and 2010
Mahamat A (2005) Evaluation des efforts d’intégration régionale de l’Afrique en vue de promouvoir le commerce régional (Evaluation of regional integration efforts in Africa with a view to promoting regional trade); African Trade Policy Centre (ATPC), Work in Progress, Series No. 30, ECA
Mamadou Alhadji LY (2009/2010) Revue de Performance du Secteur Des TIC Sénégal 2009/2010 (Review of ICT performance in Senegal, 2009/2010), Research ICT Africa
Ministry of Commerce Les marchés d’exportation de la Grappe Textile et Habillement (Export markets for the textile and clothing cluster) (Undated. Pdf doc)
Ministry of Economy and Finance/CEPOD (2011, 2012) Rapport National sur la Compétivité (National report on competitiveness)
Ministry of Economy and Finance/CEPOD/Env des affaires/TIC&Teleservices_2006 (Business climate/ICT&Teleservices_2006)
Ministry of Foreign Affairs and the French Development Agency (AFD), Directorate General of Globalisation, Development and Partnerships, Study conducted by STRADEVCO, June 2012
Ministry of Foreign Affairs, Senegal, Tableau de ratification des protocoles et conventions de la CEDEAO au 24 mai 2012 (Table of ratification of ECOWAS conventions and protocols as at 24 May 2012), typescript
Ministry of Higher Education, Universities, Regional University and Scientific Research Centres/African Institute of Management (AIM) Group: Quelles stratégies marketing pour la relance du secteur touristique au Sénégal? (What Marketing Strategies for the Revival of the Tourism Sector in Senegal?, 2012
Ministry of Mines and Energy of Senegal (2012) Lettre de politique de développement du secteur de l’énergie (Letter of development policy in the energy sector), Oct 2012
Mougani G, Okafor K (2013) Survey on intra-regional investments in West Africa, Economic brief draft_2, Oct 2013
OECD (2012) OECD policy investment reviews, Tunisia
OMVS (2013) Note de cadrage stratégique et programmatique de l’OMVS (Note on the OMVS strategic and programmatic framework), Feb 2013
Republic of Senegal (2012) SNDES 2013–2017, Final Version of 8 Nov 2012
Sakho El Hadji A (2011) L’intégration économique en Afrique de l’ouest, analyse et perspectives (Economic integration in West Africa, analysis and perspectives), Economica, Paris
SENELEC (2010) Rapport annuel (Annual report)
SENELEC (2013) Contrat de performance entre la République du Sénégal et SENELEC pour la période 2013–2015 (SENELEC performance contract between the Republic of Senegal and SENELEC for the period 2013–2015), May 2013
Union/Study for the Quantification of REC Rationalization Scenarios in Africa, IDEACONSULT International (2010)
WAPP (2011) Update of the ECOWAS revised master plan for the generation and transmission of electrical energy, Tractebel Engineering & GDF Suez, Sept 2011
World Bank (2012) Doing business
World Bank (2013) Growing Africa, unlocking the potential of agribusiness, Mar 2013
World Bank/Poverty Reduction and Economic Management/Country Department AFCF1/2012
UEMOA (2011) 14eme Rapport de l'OPA, Fevrier 2011. www.Uemoa.int/fr/type/rapports
www.lepays.bf Réunion des Comités nationaux d’agrément de libéralisation de la CEDEAO (Meeting of ECOWAS National Approval Committees for the Trade Liberalization Scheme), 22–24 Oct 2012, Ouagadougou
Author information
Authors and Affiliations
Corresponding author
Editor information
Editors and Affiliations
Rights and permissions
Copyright information
© 2017 Springer International Publishing Switzerland
About this chapter
Cite this chapter
Houeninvo, T., Gassama, K. (2017). Competiveness and Trade in West Africa. In: Seck, D. (eds) Investment and Competitiveness in Africa. Advances in African Economic, Social and Political Development. Springer, Cham. https://doi.org/10.1007/978-3-319-44787-2_7
Download citation
DOI: https://doi.org/10.1007/978-3-319-44787-2_7
Published:
Publisher Name: Springer, Cham
Print ISBN: 978-3-319-44786-5
Online ISBN: 978-3-319-44787-2
eBook Packages: Economics and FinanceEconomics and Finance (R0)