Since its inception in 1975, the Economic Community of West African States (ECOWAS) has become one of the most notable Regional Economic Communities (RECs) in Africa, with 15 Member States and a combined GDP of $758 billion as of 2022.
As it approaches its 50th anniversary, ECOWAS’s impressive growth over the past decades offers a moment for reflection to take stock of not only the successes achieved, particularly in regional agricultural trade but also the challenges that remain. The 2024 edition of the Africa Agriculture Trade Monitor (AATM) report provides insights on agricultural trade integration in the bloc, with valuable recommendations for its continued evolution and for other RECs across Africa.
Successes in regional agricultural trade
ECOWAS has made substantial progress in promoting regional integration, especially in agricultural trade. A major milestone was the launch of the ECOWAS Trade Liberalisation Scheme (ETLS) in 1979, which fostered regional trade by removing tariffs on agricultural and unprocessed goods. This initiative has helped promote intra-ECOWAS agricultural exports, with key players like Côte d’Ivoire and Senegal becoming major exporters within the region.
The region’s agriculture sector, which still contributes 26 per cent of its GDP, has evolved to become a vital economic pillar as a result. Focusing on its growth, ECOWAS has implemented policies aimed at supporting agricultural productivity and facilitating trade among Member States. The adoption of a common external tariff (CET) and the harmonisation of trade policies have allowed Member States to enjoy preferential trade arrangements, particularly in the agricultural sector.
In addition to fostering regional trade, ECOWAS has also recognised the need to align agricultural trade with sustainable practices to mitigate the impacts of climate change. Countries such as Ghana and Nigeria are increasingly adopting policies backed by ECOWAS frameworks that promote climate-smart agriculture, which helps reduce emissions and improve the efficient use of resources. These policies ensure agricultural trade contributes to food security and environmental resilience, positioning ECOWAS as a forward-thinking leader on the continent.
Challenges: fragmentation, bureaucracy and currency delays
Despite its successes, ECOWAS faces several challenges that limit its continued evolution. One of the most pressing issues is the bureaucratic red tape procedures that continue to hinder seamless cross-border trade within the region. Informal roadblocks and excessive customs checks have slowed the movement of agricultural products, affecting the efficiency of intra-regional trade. Logistics performance in the region is reportedly below the African average, with many ECOWAS countries scoring poorly in customs procedures and timeliness of shipments. These inefficiencies increase trade costs and limit the region’s ability to compete on a global scale.
Non-tariff measures (NTMs) remain another critical issue – the results of surveys conducted by the International Trade Centre (ITC) show that NTMs are pervasive in intraregional trade in agricultural products, given that companies face NTMs in both origin and destination countries. The data show that 40 per cent of the NTMs faced by exporters of agricultural products in export markets are encountered in ECOWAS countries, 30 per cent are imposed in countries of destination and 26 per cent in countries of origin.
Another critical challenge is the delay in implementing a common currency across the ECOWAS states. Although a unified currency was proposed decades ago, the roll-out has been repeatedly postponed. This has created additional complications for intra-regional trade, as fluctuating exchange rates between Member States add further costs to transactions.
From a political perspective, in January 2024, Burkina Faso, Mali and Niger announced that they were leaving ECOWAS with immediate effect, arguing that the organisation was not helping them enough in their fight against terrorism. While it is (so far) challenging to estimate the impact of this disintegration, these announcements are likely to create much uncertainty, which negatively affects trade and investments within the region.
Building a model ECOWAS: data and collaboration as key drivers
To overcome these challenges and maintain steady progress, ECOWAS must focus on increased data sharing and collaboration among Member States. The 2024 AATM report emphasises the importance of data for improving trade performance, highlighting how accurate information on trade flows, climate impacts and infrastructure needs can help policymakers craft more effective strategies to support regional trade and mitigate environmental risks.
While the region has successfully harmonised trade policies, allowing Member States to enjoy preferential trade arrangements, deeper cooperation is needed to share trade data more effectively. This can help ECOWAS address urgent issues such as water scarcity, which disproportionately affects some Member States. The concept of “virtual water” trading, highlighted in the AATM report, shows how data can guide smarter agricultural trade decisions by directing water-intensive crop production to regions with more water availability. By leveraging such data, ECOWAS can enhance its natural resource management capacity and optimise agricultural output across the region.
Stronger collaboration between Member States and external partners will also help drive infrastructure development. Poor transport, electricity and water supply infrastructure have been cited as major bottlenecks to trade in the region. Collaboratively investing in these sectors will improve logistics performance and enhance agricultural productivity and regional food security by reducing post-harvest losses and improving access to markets.
In addition, data considerations on carbon emissions and climate vulnerability must be incorporated into trade policies. As climate change intensifies, certain regions will become less suited to agricultural production, necessitating evidence-based decisions on where and what to produce. By aligning agricultural trade with climate adaptation goals, ECOWAS can ensure long-term sustainability while remaining competitive in global markets. This means adopting policies that incentivise low-emission farming practices and facilitating the transfer of climate-smart technologies between Member States.
After nearly 50 years of existence, ECOWAS is at a critical point for determining its future trajectory. By simplifying bureaucratic processes, pushing forward with currency unification and fostering greater collaboration through data sharing, the REC can strengthen its position as a leader in regional trade and agricultural development.