PUBLIC HEARING OF EUROPEAN PARLIEMENT’S COMMITTEE ON INTERNATIONAL TRADE

PUBLIC HEARING ON AFRICA RISINGBrussels 13 july 2016 1

ECONOMIC COMMUNITY OF WEST AFRICA STATES

presentation of

Mr. Kalilou TRAORE

ECOWAS COMMISSIONER FOR INDUSTRY AND PRIVATE

SECTOR PROMOTION

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ECOWAS 15 countries:BENIN, BURKINA FASO, CAPE VERDE, COTE D’IVOIRE, GAMBIA, GHANA,GUINEA, GUINEA BISSAU, LIBERIA, MALI, NIGER, NIGERIA, SENEGAL, SIERRALEONE and TOGO

CREATION: 1975

Population : 340 millions

Total Land Area : 5,112,903 km2

Official Languages : French, English, Portuguese

OBJECTIVE Promote cooperation

Create a common market

Create a peace and security space

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OVERVIEW OF ECOWAS ECONOMY

MALI

NIGER

NIGERIA

FASO

BURKINA

GUINEA

GAMBIA

SENEGAL

SIERRA

LEONECOTE

D’IVOIRETOGO

BENIN

GHANA

LIBERIA

GUINEA-BISSAU

CAPE VERDE

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DYNAMIQUE REGIONALE• L'Afrique de l'Ouest disposera d'un marché de plus de 400 millions de

consommateurs en 2020 dans un espace économique et social de plus enplus intégré et dynamique.

• Les efforts de la région dans le cadre du renforcement du processusd'intégration régionale, lui ont permis de parvenir à la création

– d'une zone de libre-échange depuis le premier janvier 2000,

– une union douanière depuis janvier 2015 et

– Des infrastructures de plus en plus connectées

– Une gouvernance de plus en plus régionalisée assurant la paix et lasécurité

– d'enregistrer une croissance régulière de 5% en moyenne du PIBdepuis plus d’une décennie.

• La région offre de bonnes et réelles perspectives de croissance en dépit des crises économiques et financières mondiales.

• La région a également négocié des accords commerciaux importants :African Growth Opportunity Act (AGOA); Accord de partenariatéconomique (APE) avec l'Union européenne;

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REGIONAL SITUATION

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REGIONAL SITUATION OF MANUFACTURE PRODUCTION

–excessive dependence on imported manufactured products ;

–excessive exportation of non processed raw material whose global prices were generally attractive until 1980.

– Low level of SMEs creation and high level of informal business

–Manufacturing industry accounted for a mere 7.36 % of the regional GDP

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ECOWAS EXPORTS

Total Ecowas

export value $80

billion 2011Oil 75%Cocoa 5%Precious stones 3%CottonFruitRubberWoodFish

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ECOWAS IMPORTS OF MANUFACTURED PRODUCTS

Total Ecowas import

value $70 billion

2011

• Fuel 24%

• Food products

14% (rice, wheat,

fish, milk, poultry,

meat, food

preparations)

• Motor vehicles,

tractors 11%

• Mechanical

appliances 11%

• Electric

machinery 8%

• Plastics 4%

• Iron 3%

• Pharmaceutical

2%

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Benin; 12,90%Burkina Faso; 23,60%

Cape Verde; 18,80%

Cote D'Ivoire; 21,30%The

Gambia; 12,60%

Ghana; 28,70%

Guinea; 46,50%

Guinea Bissau; 14%Liberia, 2002; 5,40%

Mali; 24,40%

Niger Republic; 14,20%

Nigeria; 26%

Senegal; 22,70%

Sierra Leone; 18,60% Togo; 33,70%

Fig 3, Industry as % of GDP (2013) of ECOWAS Member States

Benin

Burkina Faso

Cape Verde

Cote D'Ivoire

The Gambia

Ghana

Guinea

Guinea Bissau

Liberia, 2002

Mali

Niger Republic

Nigeria

Senegal

Sierra Leone

Togo

THE SHARES OF COUNTRIES IN THE TOTAL RECENT TRADE OF ECOWASTHE REALITY OF TRADE IN WEST AFRICA 2012 Annual Report

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Benin, 8.40

Burkina Faso, 12.10

Cape Verde, 1.90

Cote D'Ivoire, 28.30

The Gambia, 0.90

Ghana, 45.60

Guinea, 6.50

Liberia, 2002, 2.00

Mali, 11.40

Niger Republic, 7.30

Nigeria, 502

Senegal, 15.40

Sierra Leone, 4.60Togo, 4.30

Fig 1, GDP (2013)Official Exchange Rate $ billion

Benin

Burkina Faso

Cape Verde

Cote D'Ivoire

The Gambia

Ghana

Guinea

Guinea Bissau

Liberia, 2002

Mali

Niger Republic

Nigeria

Senegal

Sierra Leone

Togo

WEST AFRICA COMMON INDUSTRY PLOLICY (WACIP)

WACIP IMPLEMENTATION STRATEGY 2015 - 2020

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WACIP OBJECTIVES• General objective

– accelerate the industrialization and private sector development of West Africa.

• Specific objectives by 2030

1. raising the local raw material processing rate from 15-20% to an average of 30 %

2. increase the manufacturing industries contribution to the regional GDP, currently at an average of 6-7 %, to an average of over 20 %

3. increase intra-Community trade in West Africa from less than 12% to 40 %, with a 50% share of the region's trade in manufactured goods, particularly in the area of energy;

4. increase the volume of exports of goods manufactured in West Africa to the global market, from the current 0.1 % to 1 % .

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WACIP IMPLEMENTATION STRATEGY 2015 – 2020OBJECTIVES

• General objective

– Set up the regional industry framework as a base for the WACIP goals.

• Specific objectives by 2020

1. Strengthen national industry policy and regional cooperation

2. Promote market opportunities and challenges (regional and external)

3. Support competitiveness

4. Promote the development and investment into key sector

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WACIP REVISED STRATEGY AXES

• PART I. CROSS CUTTING ACTIONS

1.Reinforcement of national industry policies, harmonization an regional cooperation

2.Promotion of Regional and international Market Opportunities

3.Support to Industry Quality and Competitiveness

4.Mobilization of Resources

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WACIP REVISED STRATEGY AXES

• PART II. PRIORITY INDUSTY SECTORS

1.Food and Agro industry

2.Pharmaceutical industry

3.Construction materials Industry

4.Automotive and machinery Assembling industry

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AGRO FOOD INDUSTRY• DEVELOP REGIONAL INDUSTRIAL PLANS ( RIP) TO SUPPLY REGIONAL MARKET

GAP AND ENHANCE FOOD SECURITY

1. Cassava RIP2. Palm oil RIP3. Sugar RIP4. poultry RIP5. Fisheries RIP6. Meat RIP7. cereals RIP8. Fertilizer RIP

• DEVELOP REGIONAL INDUSTRIAL PLANS TO RAISE THE LOCAL RAW MATERIAL PROCESSING RATE TO EXPORT

1. Cocoa RIP2. Cashew RIP3. Mangoe RIP4. Shea butter RIP5. Coton an Textile RIP6. Rubber RIP

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ONGOING PROGRAMS

INDUSTRY

• Implementation of regional infrastructure of Quality

• Adoption and Implementation of the regional agro industry strategy

• Adoption and implementation of the regional automotive policy and strategy

• Implementation of the regional pharmaceutical plan for local production and market

• Creation of the agro industry investment funds

• Organisation of the regional industry exhibition in 2017

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PERSPECTIVE OF REGIONAL IMPACT

PRIVATE SECTOR• Adoption and implementation of the common

code of investment• Implementation of the regional Guaranty system• Implementation of the regional payment system• Adoption and Implementation of the SME charter• Implementation of Ecowas business house• Implementation of the Sealink project• Implementation of the Investment Climate

improvement project

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THANKS

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