ECOWAS Finalises $75m Renewable Energy Facility, Eyes $19bn Rice Production Investment

The Economic Community of West African States has finalised the framework for the establishment of a $75million ECOWAS Renewable Energy and Energy Efficiency Facility.

The regional bloc is also interested in improving storage facilities, milling initiatives and enhancing mechanisation in paddy production, stating that $19 billion investment is needed for this.

The President, ECOWAS Commission, Dr. Alieu Omar Touray, made the disclosure on Thursday at the opening of the 93rd Ordinary Session of the ECOWAS Council of Ministers being held in Abuja.

Touray, while commending the ongoing work on the Nigeria-Morocco gas pipeline project, which is part of some of the integrated project for the community, listed other integrated programmes aimed at integrating the region including the 6,800km Nigeria-Morocco gas pipeline projects, regulation on roaming, direct flight and water, amongst others.

He said: “A Framework Document for the Establishment of an ECOWAS Renewable Energy and Energy Efficiency Facility has been finalised by the ministers.

“This is a new blended finance facility with an initial amount of USD75 million, whose objective is to provide grants, loans and guarantees through regular demand-driven competitive calls for proposals providing clean energy solutions for the ECOWAS region.

“Towards regional self-sufficiency in rice production, the “Rice Offensive” project launched by the Commission in 2014, under the ECOWAS Agricultural Policy (ECOWAP) has now reached a second cycle with the development of a Second Regional Action Plan (2025-2035) to replace the 2020-2025 plan, which is expiring next year.”

He added that to attain regional self-sufficiency in rice, the local production of 33 million tonnes of milled rice is required to meet a planned consumption target by 2035, noting that this will also require a financial investment of US15 to $19 billion dollars of capital expenditures (CAPEX) towards improving storage facilities, milling initiatives and enhancing mechanisation in paddy production.”

On the Nigeria-Morocco gas pipeline, he said: “This regional integrative project aims to build a gas pipeline linking Nigeria to Morocco, feeding ECOWAS member states and Mauritania with future extension to Europe. It is an infrastructure of 6,800 km long, including 5,100 km offshore, with a transport capacity of 30 billion cubic feet of natural gas per year.”

Touray said on another integration project: “Progress has continued to be recorded regarding the implementation of ECOWAS Regulation on Roaming on Public Mobile Communications Networks in the ECOWAS Space. Phased implementation of this roaming tariff rates is progressing through several bilateral arrangements.

“The ECOWAS Roaming is now live in at least six member states since its adoption in December 2017 by this Council.

“Regarding the high cost of air transport in the Community, which hinders intra-regional air transport development, the ministers responsible for air transport met recently to deliberate on a Regional Strategy for the Harmonisation of Air Transport Charges, Fees and Taxes in ECOWAS Member States, and a Supplementary Act relating to the Common Policy on Aviation Charges, Taxes and Fees in ECOWAS Member States.

“The Act seeks a cancellation of all taxes deemed inconsistent with ICAO rules and principles, along with a 25% reduction in passenger and security charges. This is a significant development for the business improvement of the regional air transport sector and the facilitation of movement of persons and goods within the Community.

“Furthermore, this year, ECOWAS Commission revived its regional cooperation and integration programme in the water sector which dates to 2001. The Ministers in charge of water resources met and adopted fourteen (14) Resolutions relating to the revision of the 2008 West Africa Water Resource Policy; Management of Shared Water Resources in West Africa, Water Infrastructure Development, among others, with the goal of contributing to poverty reduction, sustainable development and environmental protection.”

Touray, assured that the “Commission will continue to measure the impact of our community investments in regional cooperation and integration through the Human Capital Development indexes which include both regional and member state’s strategies, and commitments made towards improving health and nutrition, education, entrepreneurship, financial inclusion and digital economy. “

The president of the commission also lamented the dwindling community levy in the last six years, saying only 40% of the approved Levy for this year had been received as at October 2024.

He said: “For instance, for now six consecutive years, the Community levy remittances from the Member States have been declining. This year, as of 30th October, the Community Institutions received only 40% of the approved funds from the Community Levy, thereby hindering the implementation of the Community work programme.

“This Council has a critical role in the realisation of the many objectives we set for our region. The role of our member states in providing the necessary resources for our Institutions, removing non-tariff barriers, implementing regionally agreed policies and commitments is vital to our success.

“Our local private sector actors also have an important role, and they need the support of both the regional institutions and governments to exploit the vast potentials in our community.

“We must give our local private sector actors the right of first refusal in any investment opportunity in our community.

“We should harness the resources of our businessmen and women to succeed. The goal is to mobilise, develop and retain regional capital within the Community for the overall good of all.”

On the issue of security, Touray said: “While we work hard on our economic integration agenda, we will continue to pay attention to the issues of security and political stability of our community. Terrorism, violent extremism and organised crime continue to hinder our efforts towards security.

“The ill effects of drug abuse and drug trafficking in our region are also of great concern. These challenges are far above the capacity of any single member state of the Community to overcome.”

He added: “That is why we are concerned about the decision of the military authorities in Mali, Burkina Faso and Niger to withdraw from our community.

“We will continue to engage with these authorities to reconsider their decision, which will serve no one party. Together, ECOWAS member states have made progress as our unity is our strength.”

Meanwhile, Nigeria’s Minister of Foreign Affairs, who is also the Chairman of ECOWAS Council of Ministers, Yusuf Tuggar, has charged governments of the Economic Community of West African States to create an enabling environment for the private sector to thrive.

Tuggar, speaking at the opening of the 93rd Ordinary Session of Council of Ministers of ECOWAS, described the private sector as the driving force in the region’s integration process.

The minister also stressed the need for a strong commitment to facilitating and improving trade within the sub-region.

Tuggar, who lamented the current low trade amongst member states which hovers around 12%-13%, urged member states to leverage the existing instruments to promote greater regional economic cooperation.

He said: “ECOWAS stands at a pivotal point in its existence. The region faces multifaceted challenges that can only be overcome through enhanced cooperation and a deeper common understanding among our member states. It also requires assiduous statecraft and diplomatic nous.

“Our governments must continue to make concerted efforts to create an enabling environment for the private sector to thrive, as they are the driving force behind the economic integration agenda. And yes, sometimes integration poses difficult sovereignty issues. But in the long run, it’s for the benefit of all member states.

“Additionally, member states must demonstrate a strong commitment to facilitating and improving trade within the sub-region. The current intra-regional trade percentage, which hovers around 12%-13%, is significantly low compared to other regions.

“We must therefore leverage existing instruments to promote greater regional economic cooperation, such as the ECOWAS Trade Liberalisation Scheme (ETLS) and the ECOWAS Investment Code.”

He also called for resolution of the non-tariff barriers amongst others.

According to him, “We must tackle the issue of Non-Tariff Barriers, operationalise and modernise border posts, and enhance the Joint Border Management process.”

He affirmed Nigeria’s commitment to the process, saying “It is crucial for our private sector to have investments and partnerships across the region. Member States need to evolve mechanisms and strategies to sensitise both the government officials and private sector groups on the economic potential of our region.”

He also said he will personally lead a delegation of all West African Ambassadors in Abuja and relevant ECOWAS Commission officials for a sensitisation program in Lagos that will serve as an Economic Forum at the beginning of the year 2025.

“This event aims to showcase the economic potentials of the region and the regional instruments put in place to promote trade and investment. Participants will also have the opportunity to conduct physical inspections of factories producing various community products traded under the ETLS. I urge other Ministers to initiate similar activities that will unlock our economic potentials and enhance business cooperation within our region.

“Creating trade and Investment opportunities will yield substantial benefits and position our community to reap significant rewards, thereby improving the lives of our populace.

“We have been trading with each other and investing in each other’s territories long before the advent of the modern Westphalian state system and its static borders. The kola nuts and livestock are living proof,” he explained.

Michael Olugbode

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