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The idea behind the establishment of the Economic Community of
West African States (ECOWAS) over 30 years ago has not been fulfilled,
Josephine Tapgun, the Minister of State for Commerce and Industry, said
yesterday in Abuja. Ms. Tapgun said the objectives of achieving trade and
economic integration within a borderless sub-region remain largely unfulfilled.

Speaking at the opening of the 3rd West African Monetary Zone
Ministers of Trade Forum in Abuja, Ms. Tapgun stated that external factors have
contributed a great deal to this problem, hence the need for a review of the
existing infrastructural policy of ECOWAS, to increase the volume of trade
across the member nations.

“Issues that need to be addressed urgently include the policy
and regulatory environment that will ensure transparency, predictability, and
business and investment friendly environment,” Ms. Tapgun said.

“There is, therefore, the need to critically examine our
infrastructural policies with a view to enhancing intra-West African Monetary
Zone trade,” she said, insisting that ECOWAS members need to trade more among
themselves to foster economic integration and ensure regional development.

For this to be achieved, she said, member countries have to
demonstrate a strong political will to carry out the necessary social and
economic reforms that will bring about effective regional integration,
socio-economic growth, and development within the sub-region.

Developing the infrastructure both in hard and soft forms is
germane for a credible settlement system. The soft infrastructural challenge is
visible in the fact that dispute resolutions across borders, like payment
problems, are nonexistent and there is no institutional framework for it.

No free movements

Also, capital movements are not free across borders, with all
countries applying exchange controls; membership in monetary groupings and
trade groupings pose problems, as there about 30 such groupings with an average
of each country belonging to about four; markets are restricted to local banks;
while economies of scale from regional single market is not available.

Equally, Temitope Oshikoya, Director General of West African
Monetary Institute, remarked that the institute is assisting some African
countries in developing trade policies, insisting that a good trade policy is
of particular importance to promote trade integration in the region and enhance
economic growth.

“WAMI, with support from its development partner, has developed trade policy
for the Gambia. It is my fervent hope that when fully implemented, business
will expand, jobs created, more revenue for government generated, and greater
income for the people,” Mr. Oshikoya said.