A Key Lever for the Operationalisation of the ECOWAS Vision 2020

ECOWAS COMMUNITY

DEVELOPMENT PROGRAMME

CDP

A key lever for the operationalisation of the ECOWAS Vision 2020

1 – Background on the CDP

Mindful of the need to boost regional integration and to make a structural transformation of the economies of West Africa, the Authority of Heads of State and Government adopted the ECOWAS Vision 2020 at its 32nd Session, in June 2007 in Abuja (Nigeria). This vision aims, among others, to achieve the "ECOWAS of People" and a community where people live in dignity, peace, good governance and well integrated into the global village.

2 – What is the CDP?

As part of the operationalisation of its Vision 2020, the ECOWAS Commission has adopted an important tool, the ECOWAS Community Development Programme (CDP), for which the formulation has involved major development actors in West Africa, namely, Intergovernmental Organizations, Member States, and Non-State Actors (Civil Society, Private Sector and Researchers).

The Authority of Heads of State and Government of ECOWAS, in its 45th Ordinary Session, held in July 2014 in Accra, Ghana, adopted by Supplementary Act (A/ SA.04 /07/14), the ECOWAS Community Development Programme as a key tool to operationalize the Vision 2020 of ECOWAS.

The ECOWAS CDP is a concrete response to the various challenges of the region and provides a coherent framework of reference for development and regional integration initiatives, in coordination with the Regional Economic Programme of UEMOA (PER), the Regional Indicative Programme (RIP), the ECOWAS Sahel strategy, the Economic Partnership Agreements Programme for Development (EPADP) and the Agenda 2063 of the African Union.

3 – What are the objectives of the CDP?

General Objective

The main objective of the CDP is to contribute to building a competitive regional economic union, sustainable and secured, with an increased participation of West African population in the regional integration process. Thus, the CDP contributes to the development of the 16th economy of ECOWAS Region, in addition to the 15 national economies of Member States.

Specific Objectives

- Contribute to creating a competitive regional economic union, sustainable and secured, with national economies fully integrated at regional level and to the global economy;

- Establish a conducive business environment, within the context of good governance, rule of law, peace and security;

- Promote strong economic growth, job creation and sustainable development within the ECOWAS Region;

- Ensure an effective participation and ownership of the West African population to the regional integration process.

4 – What are the Intervention Areas of the CDP?

Following a diagnostic analysis of development trend in the ECOWAS Region, the CDP was developed around four (4) priority areas, which represent the level of response to be provided to the five (5) major challenges identified in the region: (i) issue of governance, (ii) low level of intra-regional trade; (iii) challenges of competitiveness, (iv) low coherence of programmes; and (v) challenge of long-term planning.

The four (4) priority areas of the programme are further developed into twelve (12) Strategic Objectives or intervention areas, which take into account the key development sectors of the region.

Priority Area (PA) / Strategic Objectives (SO)
Priority Area 1 (PA1): Integration of people, governance and human development / SO1: Governance and Peace & Security
SO2: Integration of people
SO3: Human Development
Priority Area 2 (PA2): Deepening of economic integration / SO4: Development of Trade
SO5 & SO6: Monetary and financial integration
Priority Area 3 (PA3): Infrastructure development and wealth creation / SO7: (a) Interconnection of Transport infrastructure; (b) Interconnection of ICTs; (c) Interconnection of Energy and Hydraulic Infrastructure
SO8: Agricultural Development
SO 9: Industrial Development
SO10: Research –Development and Innovation
SO11: Climate Change Adaptation
Priority Area 4 (PA 4): Cooperation and financing / SO12: Cooperation, Partnership, Resource Mobilization, Implementation and Monitoring Evaluation (M&E)

5- CDP Projects by Priority Area and Strategic Objective

Following a prioritisation process, over 200 regional projects were selected to form the compact of CDP projects, including 89 projects for the development of infrastructure (40%); 45 projects for agricultural development (20%); 43 projects for strengthening free movement, governance and human development (18%); 25 projects for research, innovation and industrial development (10%); 17 projects for deepening economic integration (7%); and 11 projects for natural resources and climate change adaptation (5%).

The total cost of the CDP is estimated at 48.66 billion US dollars, of which 43.8 billion US dollars need to be mobilised. The distribution of the cost of CDP projects is presented in the table below.

Priority Areas (PA) / Strategic Objectives / Number of Project / % Project / Total Investment (Mil USD) / % Invest Total / Investment Gap / % Gap
PA1: Integration of People, Governance and Human Development / OS1 / 11 / 4.8% / 92.08 / 0.2% / 90.25 / 98%
OS2 / 9 / 3.9% / 195.24 / 0.4% / 195.02 / 100%
OS3 / 23 / 10.0% / 3,138.25 / 6.4% / 3,008.14 / 96%
TOTAL PA1 / DP1 / 43 / 18.7% / 3,425.6 / 7.0% / 3,293.4 / 96%
PA2: Deepening Economic Integration / OS4 / 8 / 3.5% / 1,463.96 / 3.0% / 1454.53 / 99%
OS5 / 8 / 3.5% / 223.67 / 0.5% / 222.11 / 99%
OS6 / 1 / 0.4% / 10.00 / 0.01% / 8.00 / 80%
TOTAL PA2 / DP2 / 17 / 7.4% / 1,697.6 / 3.5% / 1,684.6 / 99%
PA3: Infrastructure Development and Wealth Creation / OS7 / 89 / 38.7% / 37,197.35 / 76.3% / 33,759.59 / 90%
OS8 / 45 / 19.6% / 5,152.41 / 10.6% / 4,068.60 / 79%
OS9 / 11 / 4.8% / 393.99 / 0.8% / 327.81 / 83%
OS10 / 11 / 4.8% / 161.33 / 0.3% / 155.58 / 96%
OS11 / 11 / 4.8% / 713.42 / 1.5% / 516.39 / 72%
TOTAL PA3 / DP3 / 167 / 72.6% / 43,618.5 / 89.5% / 38,828.0 / 89%
PA 4: Cooperation and financing / OS12 / 3 / 1.3 / 5.8 / 0.01% / 5.20 / 90%
TOTAL PA / OS / 230 / 100.0% / 48,663.4 / 100% / 43,611.2 / 90%

The implementation of these projects is planned for the period 2016-2020.

6 – Institutional Framework of the CDP

The organizational framework of the ECOWAS CDP includes: (i) Decision-making body of the CDP, (ii) Steering Body, (iii) Advisory body, (iv) Coordinating Committee of Technical and Financial Partners, and Donors, (v) Implementation, Coordination and monitoring Body of the CDP.

For the implementation of the CDP, partnership agreements are envisaged between the ECOWAS Commission and the various stakeholders promoting the projects.

7. Potential Impact of the CDP on regional economy

An empirical analysis of the impact of the CDP projects, over the period 2016-2035, clearly shows that an effective implementation of planned investments in the CDP would produce tangible results of structural transformation of the West African region in 2020, which would be further consolidated in 2035 with the multiplier effect created by the strong economic growth. As a result of planned investment in the CDP, economic growth of ECOWAS Region would be above 7.5%, on average over the period 2018-2020, against a growth rate of less than 6% in the business as usual scenario. /

This performance would contribute to achieving the objectives of the Sustainable Development Goals (SDG) relating to poverty reduction. Indeed, poverty rate would decline to 25% in 2020 and could get below 10% in 2035, against 38% and 22%, respectively, for the business as usual scenario.
The effective implementation of the CDP could produce more than 2 million additional jobs by 2020.

8- Financing Strategy of the CDP

For the implementation of the ECOWAS CDP, both internal and external financing sources are explored.

- Internal sources of financing

Financing sources available within the region for the implementation of the CDP are mainly from Member States, Regional financial institutions, such as the ECOWAS Bank for Investment and Development (EBID), the West African Bank for Development (BOAD), and own source financing from other Intergovernmental Organizations, with an important role played by ECOWAS. In the West African Region, three (3) types of innovative financing mechanisms are being explored: (i) bonds; (Ii) market mechanisms; (Iii) mechanisms to channel migrant remittances towards productive investment. Other viable alternative sources of domestic financing are: (iv) contribution of regional private sector through public-private partnership; (v) resource mobilisation through national and regional financial markets.

- External sources of financing

The CDP would also be financed through external resources from development partners and international private investors. Potential sources of external financing are: (i) Official Development assistance (ODA) and bilateral and multilateral external financing; (Ii) The Afrique50 Fund of the African Development Bank (AfDB), (iii) private investors and other partners targeted for the financing of CDP.

www.cdp-pcd.ecowas.int

Economic Community of West African States (ECOWAS)

Macroeconomic Policy and Economic Research Department

Address: 101, Yakubu Gowon Crescent, Asokoro District,

P.M.B. 401, Abuja, NIGERIA

ECOWAS Community Development Programme

` CDP Unit, 1st Floor River Plaza,

Central Area- Abuja, NIGERIA