ECOWAS Warns: 90% of West Africa's Economy is Informal

The Economic Community of West African States (ECOWAS) Parliament has expressed alarm over the informal sector's dominance in West Africa, indicating that nearly 90% of economic activities and at least 60% of the workforce operate outside the formal economy. This situation is seen as detrimental to economic growth, job creation, and regional competitiveness.

During a Joint Committee meeting in Cotonou, Co-Chairperson Hon. Alhagie Darbo emphasized the need for significant policy reforms to formalize and strengthen Micro, Small and Medium Enterprises (MSMEs). He noted that while MSMEs are crucial for job creation and innovation, their informal status limits access to finance, technology, and legal protections.

Darbo urged ECOWAS member states to implement harmonized policies that facilitate the growth of MSMEs, aligning with ECOWAS Vision 2050, which aims for a peaceful and integrated West Africa.