Removing barriers to trade between Ghana and Nigeria : strengthening regional integration by implementing ECOWAS commitments : Elimination des obstacles au commerce entre le Ghana et le Nigeria : Renforcer l'intégration régionale par la mise en ?uvre des engagements de la CEDEAO (法语)
Global markets offer important opportunities for companies in developing countries. By exporting to larger markets, the companies can increase production, growth, and employment at a faster pace than by focusing only on smaller domestic markets. In this... 更多显示
Global markets offer important opportunities for companies in developing countries. By exporting to larger markets, the companies can increase production, growth, and employment at a faster pace than by focusing only on smaller domestic markets. In this context, regional exports can be an important testing and learning ground for these companies. This is because barriers to accessing markets in the region are often lower than those for accessing global markets; neighboring countries' markets are often similar in taste, standards, distance, and culture. Creating regional markets can thus allow companies to expand operations and create economies of scale, making them more competitive. Gaining access to regional markets also increases incentives for more investment flows, and permits suppliers to specialize and integrate into regional supply chains that ultimately cater to both domestic and international markets. This note looks at the regional integration process in West Africa, focusing on Ghana and Nigeria. Both countries account for about 61 percent of population and 68 percent of gross domestic product (GDP) in Economic Community of West African States (ECOWAS). This note assesses the challenges that goods exporters within the region face when trying to benefit from the ECOWAS-wide Free Trade Area. It focuses on the experience of 30 exporting companies in Ghana that we interviewed to understand the difficulties of exporting to Nigeria under the scheme. The study finds that Ghanaian manufacturers believe the key barriers to increasing trade with Nigeria include substantial informal payments and delays regardless of whether documentation is complete transit charges, and requirements for product registration.