Monrovia, Liberia – Former Executive Director of the National Investment Commission, George Gyude Wisner II, has called on ECOWAS policymakers to urgently reform and harmonize regional investment frameworks to make the sub-region more attractive to both domestic and foreign investors.
By Gerald C. Koinyeneh, [email protected]
Presenting a position paper on the topic “Investment Climate in the ECOWAS Sub-Region: Analyzing Factors That Influence Investment, Including Regulatory Frameworks, Ease of Doing Business, and Market Conditions,” at a high-level meeting of the ECOWAS Joint Committee on Administration, Finance & Budget, Public Accounts, Macroeconomic Policy & Economic Research, and Industry and Private Sector in Monrovia, Mr. Wisner identified regulatory fragmentation, infrastructure deficits, and human capital constraints as major barriers to investment.
“While the ECOWAS region boasts a population of over 400 million people and is richly endowed with natural resources, investment inflows have largely stagnated since 2008,” said Wisner. Citing a 2022 UNCTAD report, he noted that the region recorded only a marginal 7% increase in Foreign Direct Investment (FDI) that year—an underwhelming figure given the region’s potential.
Legal and Regulatory Frameworks Lagging Behind
Wisner explained that all 15 ECOWAS countries have domestic legal regimes and international treaties governing investment, but a lack of harmonization continues to create a disjointed landscape that deters investors.
He pointed out that while the ECOWAS Investment Policy and Common Investment Code are modeled after global best practices, few member states have fully incorporated or are actively implementing them. “This weakens the effectiveness of regional policies meant to create a single investment space,” he said.
One of the major issues raised was the inconsistency in dispute resolution mechanisms. While some countries—such as Nigeria, Liberia, and The Gambia—offer advance consent to arbitration, others impose conditions or offer no clear path for international arbitration. Wisner warned that this legal uncertainty discourages long-term investment.
He recommended that ECOWAS consider expanding the jurisdiction of the ECOWAS Court of Justice to serve as a unified arbitration body for investor-state disputes.
Poor Infrastructure and High Operational Costs
Wisner also highlighted massive infrastructure deficits across the region, pointing out that poor roads, ports, energy grids, and digital networks drastically increase production and transaction costs. He cited African Development Bank data showing that energy costs for manufacturing in Africa are four times higher than in the U.S., while road freight tariffs and telecommunications costs also remain prohibitively expensive.
“These conditions not only hinder intra-regional trade but also disproportionately affect Small and Medium Enterprises (SMEs), which are the backbone of African economies,” he said.
Although ECOWAS has launched several initiatives—including the West African Power Pool, the Regional Electricity Regulatory Authority, and Public-Private Partnership models—Wisner said much more needs to be done. He urged member states to allocate a fraction of their national budgets or GDP to infrastructure investment and called on the ECOWAS Parliament to play a more proactive role in advocating for these reforms.
Human Capital Crisis Threatens Long-Term Growth
On the issue of labor and skills development, Wisner lamented the region’s low levels of education, healthcare, and gender inclusion. He noted that over 50% of West Africa’s population is under the age of 25, yet millions of young people remain unemployed, unskilled, and underutilized.
“Human capital constraints, including poor education and vocational training, high youth unemployment, and gender inequality, make the region less competitive,” he said.
Wisner praised the ECOWAS Human Capital Development 2030 Strategy, which prioritizes education, health, labor participation, and financial inclusion, but stressed the need for stronger implementation and coordination among member states.
A Call for Collective Action
In conclusion, Mr. Wisner called for enhanced regional cooperation and the strengthening of public-private partnerships to unlock the ECOWAS region’s investment potential. He emphasized the importance of inclusive economic policies, harmonized regulations, and strategic infrastructure investment as key pillars for sustainable development.
“ECOWAS has taken bold steps toward improving its investment climate, but more deliberate action is required to position the region as a thriving economic hub,” Wisner said. “Through collective action and a shared vision, ECOWAS can overcome existing barriers and pave the way for inclusive growth and prosperity.”
The high-level ECOWAS Joint Committee meeting, taking place from June 16–20 in Monrovia, brings together policymakers, economists, and private sector representatives from across the region to assess progress and chart a path forward for economic integration and investment promotion.