In a bid to eradicate the perennial unemployment rate within the ECOWAS Region and enhance economic viability as align in the ECOWAS Investment Policies (EIP, the ongoing Delocalized Sitting of the Joint Committee on Administration, Finance and Budget/Macroeconomic Policy and Economic Research, Public Accounts, Industry and Private of the ECOWAS Parliament, has on Tuesday the 17th of June 2025, earmarked the role of Small and Medium Enterprises (SMEs) to achieve the much anticipated economic growth and end the alarming unemployment rate within the ECOWAS Region.
In a presentation done by Senator Amara Konneh, Chairman Public Accounts Committee and Former Minister of Finance and Development Planning of the Republic of Liberia on the theme: “link Between Investment and Employment Creation – Assessing how investment drives job opportunities and economic growth in the ECOWAS region”, affirmed to the panel that SMEs is the Backbone of economic growth and job creation. He made specific reference to the SMEs in Nigeria which account for over 80% of jobs in Nigeria and in Ghana, SMEs represent 92% of businesses and contribute 70% to GDP.
Senator Amara Konneh emphasized the need for targeted investment to empower SMEs adding that, SMEs create jobs in underserved areas, reducing poverty and inequality. He also put it to the panelists that SMEs support women and youth entrepreneurship and fostering inclusive economic growth.
He reminded all the Panelists that ECOWAS market size is over 400 million people, and abundant natural resource wealth. He acknowledged that Foreign Direct Investment (FDI) inflows remain stagnant, despite some modest improvement in 2021. He said FDI in the region has not always fulfilled its promise in terms of promoting sustainable development and job creation.
Senator Amara Konneh continued in his presentation that Youth Unemployment remains the highest globally, with limited access to job opportunities. He said there has been high rates of illegal immigration due to a lack of prospects among the youth. He gave some statistical analysis of Regional Unemployment Rates which West Africa sits at 24.95% , Africa overall 30.43% and Global average of 5.8%.
Senator Konneh continued that no single factor alone could explain this trend, but he strongly suggested that the region does not provide a sufficiently conducive environment for sustainable investment. Beyond political instability in some member states, he said elements commonly cited within the region include fragmented regulatory frameworks, small market sizes, multiple currencies, and insufficient infrastructure and skills.
In recognition of the challenge of attracting FDI to create jobs and promote sustainable development, he said was the more reason the Member States adopted the ECOWAS Investment Policy to establish harmonized regional investment climate policies.
To improve on the status quo of job creation and boost economic growth in the ECOWAS Region, Senator Konneh proposed strategies such as Accelerating harmonization of investment laws and align member states into a single economic space (Increase coherence between national legislation and regional and continental treaties), enhances public-private partnerships (PPPs) for infrastructure and industrial growth, prioritizes agriculture, energy, manufacturing, and digital economy, Strengthens human capital development through VOTECH to support investment-driven skills development, establish transparent mechanisms for investment dispute resolution, strengthen governance frameworks to ensure policy consistency and investor confidence and improve monitoring and evaluation of the costs, benefits and uptake of tax incentives.
Concluding his presentation, Senator Amara called on the ECOWAS Investment Policy to hold substantial potential to address unemployment and drive economic growth in the region. To create a favorable investment climate, boosting productivity and enhancing regional competitiveness, he assured that the EIP could make a significant contribution to economic development.
However, he said the success of this policy relies on regional collaboration and the proactive engagement of all stakeholders. “Together, we can transform the investment landscape and create sustainable employment opportunities for the future. Let us commit to fostering a collaborative environment for investment and actively engage in implementing the EIP. To this end, I call for annual ECOWAS-sponsored investment conferences and trade shows to showcase opportunities and connect investors with policymakers”, he concluded.