The Economic Community of West African States (ECOWAS) is a regional organization formed by the 15 countries that make up the West African region. It is an initiative for regional economic, social and cultural integration and peacekeeping across its member states.
Whether it is due to its exponential economic development since the beginning of the 21st century, the favorable demographic and cultural context or the immense natural resources of the territory, West Africa is a rich land of business opportunities for French SMEs.
ECOWAS has a dynamic market with great potential for development and innovation. Its growth rate was 4.9% over the period 2016-2019, its GDP increased by 3% in 2021, its trade turnover index increased by 12.7% and that of market services by 15.2% in November 2021. In addition to these impressive increases, which have continued since 2000 and accelerated in 2010, projections for the next decade are optimistic and envisage a continuation of this meteoric growth.
In parallel to this particularly attractive dynamism, 8 of the ECOWAS member countries share a single market and currency. Benin, Côte d'Ivoire, Togo, Burkina Faso, Mali, Guinea-Bissau, Senegal and Niger are united under the aegis of the West African Economic and Monetary Union (UEMOA) and share a common currency, the CFA franc (which is to be replaced by the eco in 2022 for the whole of ECOWAS).
Demographically, West Africa is currently experiencing an unprecedented explosion that will not slow down in any way. It has a population of more than 300 million, with this figure expected to double by 2050. ECOWAS therefore has a vast labor force and consumer base that will only increase over time.
On the other hand, it is important to note that more than half of the countries in West Africa are French-speaking: Senegal, Burkina Faso, Togo, Côte d'Ivoire, Niger, Mali and Benin. This linguistic similarity is important to emphasize because it ensures French SMEs a better fluidity in exchanges and reduces the risks linked to a misunderstanding.
As far as the political stability of the region is concerned, there is a mistaken view of the security situation and corruption in African countries. As for corruption, if it exists, it is less intense than in the collective imagination: according to the world ranking, Benin and Burkina Faso are ahead of Russia and Vietnam, and Senegal is better ranked than China. As for political instability, it only concerns certain countries (currently Mali, Nigeria and Burkina Faso) and during periods of economic crisis.
West African countries have a wide variety of natural resources: agricultural (groundnuts, coffee, forestry, sugar, cocoa, cotton), mining (coal, gold, bauxite, iron) and energy (gas, hydroelectricity and oil),
hydroelectricity and oil). Business opportunities are therefore often linked to these resources, whose exploitation needs to be developed. At the regional level, the main emerging field is
Agribusiness (agriculture and agri-food), a sector with high potential that is currently under-exploited. In second place is the energy sector, although West African countries have raw materials, they lack the necessary infrastructure to take advantage of the wealth in this area. This observation is consistent with the priority products imported by ECOWAS, namely ironwork, mechanical and electrical appliances, tractors, automobiles and other vehicles, etc. It should be noted that West Africa also has other emerging sectors in which to invest: livestock, health, tourism, transport and the fisheries sector.
More specifically, what are the business opportunities in each of the DA countries?
Senegal, the second largest economy in the WAEMU, has three major areas to invest in: agriculture, infrastructure and energy (mostly green energy). Guinea has needs in a variety of sectors: education, real estate, transportation, and health. Mauritania's emerging sectors are mining, oil, and distribution in addition to agriculture, infrastructure, etc. Mali and Niger are suffering from terrible famine crises and therefore have needs in the agricultural and livestock sectors.ECOWAS has a dynamic market with great potential for development and innovation. Its growth rate was 4.9% over the period 2016-2019, its GDP increased by 3% in 2021, its trade turnover index increased by 12.7% and that of market services by 15.2% in November 2021. In addition to these impressive increases, which have continued since 2000 and accelerated in 2010, projections for the next decade are optimistic and envisage a continuation of this meteoric growth.
In parallel to this particularly attractive dynamism, 8 of the ECOWAS member countries share a single market and currency. Benin, Côte d'Ivoire, Togo, Burkina Faso, Mali, Guinea-Bissau, Senegal and Niger are united under the aegis of the West African Economic and Monetary Union (UEMOA) and share a common currency, the CFA franc (which is to be replaced by the eco in 2022 for the whole of ECOWAS).
Demographically, West Africa is currently experiencing an unprecedented explosion that will not slow down in any way. It has a population of more than 300 million, with this figure expected to double by 2050. ECOWAS therefore has a vast labor force and consumer base that will only increase over time.
On the other hand, it is important to note that more than half of the countries in West Africa are French-speaking: Senegal, Burkina Faso, Togo, Côte d'Ivoire, Niger, Mali and Benin. This linguistic similarity is important to emphasize because it ensures French SMEs a better fluidity in exchanges and reduces the risks linked to a misunderstanding.
As far as the political stability of the region is concerned, there is a mistaken view of the security situation and corruption in African countries. As for corruption, if it exists, it is less intense than in the collective imagination: according to the world ranking, Benin and Burkina Faso are ahead of Russia and Vietnam, and Senegal is better ranked than China. As for political instability, it only concerns certain countries (currently Mali, Nigeria and Burkina Faso) and during periods of economic crisis.
Business opportunities in West Africa
West African countries have a wide variety of natural resources: agricultural (groundnuts, coffee, forestry, sugar, cocoa, cotton), mining (coal, gold, bauxite, iron) and energy (gas, hydroelectricity and oil),
hydroelectricity and oil). Business opportunities are therefore often linked to these resources, whose exploitation needs to be developed. At the regional level, the main emerging field is
Agribusiness (agriculture and agri-food), a sector with high potential that is currently under-exploited. In second place is the energy sector, although West African countries have raw materials, they lack the necessary infrastructure to take advantage of the wealth in this area. This observation is consistent with the priority products imported by ECOWAS, namely ironwork, mechanical and electrical appliances, tractors, automobiles and other vehicles, etc. It should be noted that West Africa also has other emerging sectors in which to invest: livestock, health, tourism, transport and the fisheries sector.
More specifically, what are the business opportunities in each of the DA countries?
Senegal, the second largest economy in the WAEMU, has three major areas to invest in: agriculture, infrastructure and energy (mostly green energy). Guinea has needs in a variety of sectors: education, real estate, transportation, and health. Mauritania's emerging sectors are mining, oil, and distribution in addition to agriculture, infrastructure, etc. Mali and Niger are suffering from terrible famine crises and therefore have needs in the agricultural and livestock sectors.
As the second largest hub in West Africa, Côte d'Ivoire imports mainly in the transport, agricultural equipment, livestock and engineering sectors. Benin and Ghana have demand for agricultural equipment and vehicles. Burkina Faso has different emerging sectors: education, defense, security and health. Finally, Togo accepts investors in the blue economy, tourism, distribution, logistics and industrial production of substitute goods as a priority.
African development offers a complete accompaniment, from the formulation of the project to the effective marketing of goods and/or services in African markets. This allows interested companies to be aware of the rules of exporting to Africa and to benefit from a good network to ensure the success of the project.