ECOWAS Community Development Programme (CDP)
High Level Conference
THEME: Regional DevelopmentFinancing: Strategies and innovative approaches for the mobilization of Internal Resources in the ECOWAS Region
Technical Document
Table of Content
Page
I.Background and Rationale of the Conference...... 5
II.Objectives and Expected Outcomesof the Conference...... 6
II.1 Objective of the Conference...... 6
II.1.1 Overall Objective...... 6
II.1.2 Specific Objectives...... 6
II.2 Expected Outcomes of the Conference...... 7
III.ECOWAS Community Developement Programme (CDP): a Coherent Framework of West African Development Initiatives 8
III.1 The Formulation Process of the Programme: a Coherent, Participatory and Inclusive Formulation Process 8
III.2 – Priority Area of Intervention of the ECOWAS Community Development Programme (CDP 11
IV.Regional Development and the Issue of ECOWAS CDP Financing...12
IV.1 Domestic Funding sources...... 12
IV.2 External Funding sources...... 14
V.Main Themes and Proceedings of the the Conference...... 17
V.1 Themes of the Conference...... 17
V.1.1 Sub-Theme 1: Innovative financing Mechanisms: An Unexplored Potential 17
V.1.2 Sub-Theme 2 : Financing Regional Development through Private Sector: Contribution of the Public- Private Partnerships (PPP) 20
V.1.3 Sub-Theme 3 : Regional/Continental Financial Institutions and Development Financing in the ECOWAS Region 25
V.2 Conference Proceedings...... 30
Acronyms
ABN : / Niger Basin AuthorityACP : / Africa – Caribbeans – Pacific Countries
AfDB: / African Development Bank
ADF: / African Development Fund
AFAO : / Network of West African Women’s Associations
AFD : / French Development Agency
ASF: / African Solidarity Fund
AU / African Union
AUC: / African Union Commission
BADEA: / Arab Bank for Economic Development in Africa
BAU: / Business As Usual
BCEAO: / Central Bank of West African States
BOAD: / West African Development Bank
BRVM: / Regional Stock Exchange
CDP : / Community Development Programme
CDPA : / ECOWAS CDP T21 Aggregate Model
CDP-NCs : / CDP -National Committees
CET / Common External Tariff
CGIAR / Consultative Group on International Agricultural Research
CIDA : / Canadian International Development Agency
CRES : / Consortium for Economic and Social Research
CSO: / Civil Society Organisation
DANIDA: / Danish Agency for International Development
DFI
DFID: / Development Financial Institutions
Department for International Development
EBA / Everything But Arms
EBID: / ECOWAS Bank for Investment and Development
UNECA : / United Nations Economic Commission for Africa
ECOPOST: / ECOWAS Policy on Science and Technology
ECOSTAT: / ECOWAS Economic Database
ECOWAP: / ECOWAS Common Agricultural Policy
ECOWAS: / Economic Community of West African States
EDF: / European Development Fund
EEEAO: / Specialised Organ for the Exchange of Electrical Energy in West Africa
EGDC: / ECOWAS Gender Development Centre
EIB / European Investment Bank
EPA / Economic Partnership Agreement
ESF: / ECOWAS Stand-by Force
ETLS: / ECOWAS Trade Liberalization Scheme
EU: / European Union
FAIAO: / Federation of West African Industrial Associations
FANAF-
FAO: / Federation of African National Insurance Companies Law
Food and Agriculture Organisation
FEFA: / Federation of Women Entrepreneurs and Business of ECOWAS
FETP: / Financial Economic and Technical Partner
FEPAWAS / Association of Agencies for Investment Promotion in West African States
FEWACCI: / Federation of West African Chambers of Commerce and Industry
FWAEA: / Federation of West African Employers’ Associations
GDP: / Gross Domestic Product
GER / Gross Enrolment Rate
GIABA : / Inter-Governmental Action Group against Money Laundering in West Africa
GSP / Generalised System of Preferences
GTZ: / German Technical Cooperation
HCR / High Commission for Refugees
HDI: / Human Development Index
HIPC: / Highly Indebted Poor Countries Initiative
IDA: / International Development Association
IDRC: / International Development Research Centre
IFAD: / International Fund for Agricultural Development
IFC: / International Finance Corporation
IFPRI: / International Food Programme
IGOs: / Inter-Governmental Organisations
IMF: / International Monetary Fund
INSAH: / Sahel Institute
ITC: / Internal Technical Committee for the CDP
MDGs: / Millennium Development Goals
MI: / Millennium Institute
MRU: / Mano River Union
MTEF : / Medium Term Expenditure Framework
NCCs: / National Coordination Committees
NCM: / Nigerian Capital Market
NDP: / National Development Plan
NEPAD: / New Partnership for Africa’s Development
NIP: / NV20 : 2020 Strategy Implementation Plan, Nigeria
NSAs: / Non-State Actors
OAU: / Organization of African Unity
OECD: / Organization for Economic Cooperation and Development
OMVG: / Organisation for the Development of the Gambia River
OMVS: / Organisation for the Development of the Senegal River
PA: / Priority Area
PAEC: / ECOWAS Platform of Export Stakeholders
PAP: / Priority Action Plan
EPADP: / Economic Partnership Agreement Development Programme
PER : / UEMOA Regional Economic Programme
PICAO: / West African Common Industrial Policy
PIDA: / Programme for Infrastructural Development in Africa
PIP: / Region-wide Development Programmes
PRGS: / Poverty Reduction Growth Strategy
PRSP: / Poverty Reduction Strategy Paper
PPDU: / Project Preparation and Development Unit of ECOWAS
POOL FUND: / Group of ECOWAS Financial Partners
RPRSP: / Regional Poverty Reduction Strategy Paper
T21 / Threshold 21 Model
UEMOA / West African Economic and Monetary Union
UNDP: / United Nations Development Programme
UNECA / United Nations Economic Commission for Africa
UNEP / United Nations Environment Programme
UNIDO
US: / United Nations Industrial Development Organisation
United States of America
USAID: / United States Agency for International Development
WACSOF / Federation of West African Civil Society Organizations
WABA: / West African Bankers’ Association
WAHO: / West African Health Organization
WAMA / West African Monetary Agency
WAMI: / West African Monetary Institute
WAMZ / West African Monetary Zone
WAPP / West African Power Pool
WARA: / West African Research Association
WEF / World Environment Fund
WDI: / World Development Indicator
WTO / World Trade Organisation
I. BACKGROUND AND RATIONALEof the conference
Following the Institutional Reform in 2006,the Authority of Heads of State and Government of the Economic Community of West African States (ECOWAS) transformed the ECOWAS Executive Secretariat into a Commission, with a mandate to deepen the regional integration process.
Moreover, there was an urgent need to boost integration and structural transformation of the economies of the region. Thus, theAuthority of Heads of State and Government adopted the ECOWAS Vision 2020 at its June 2007 Session in Abuja,Nigeria. This vision aims, among others, to achieve the "The ECOWAS of people" by creating a community space where people live in dignity, peace and good governance, and to ensure a successful integration into the global village. The Authority of Heads of States and Government recommended the formulation of an ECOWAS Community Development Programme (CDP) to operationalize the Vision 2020.
Following a participatory process in the formulation of the CDP, the Forty Fifth Session of the Authority of Heads of States and Government of ECOWAS adopted the ECOWAS Community Development Programme (CDP), in July 2014, though a Supplementary Act (A/SA.04/07/14).The CDP is along-term regional development strategy, with a mandate to enhance coordination, coherence and ownership of regional development initiatives.
By adopting this programme, the ECOWAS Community intends to have a major mechanism to assist in deepening regional integration and to strengthen its core mandate of Economic Community. This includes ensuring economic diversification, capable of generating decent jobs and strengthening intra-regional trade,with a view to promoting accelerated and sustainable growth foreconomiesof the region. Beyond this goal, the programme introduces an innovative process of consultation, engagement and ownership of all stakeholders involved in regional integration.
The ECOWAS CDP Regional Document (CDP-RD) covers four priority areas, namely:
- Integration of peoples, governance and human development;
- Deepening of economic integration;
- Infrastructure Development and wealth creation;
- Cooperation and Financing.
Following the adoption of the ECOWAS-CDP by the highest authorities of the Region, one of the challenges of the Programme is thefinancingto ensureitssuccessful implementation. In this regard, a High Level Conference on Regional Development Financing is being organized to federate regional stakeholders’ actions around this flagship programme. This conference is organized in prelude to the roundtable for financing the ECOWAS-CDP.
This conference, which is essentially aimed at mobilizing domestic resources of the region,isco-organized by the ECOWAS Commission and its financial arm,the ECOWAS Bank for Investment and Development (EBID), in close collaboration with the UEMOA Commission andthe West African Development Bank (BOAD).
This domestic resource mobilisationapproach is comforted by recent international financial crisismarked by the decline in Official Development Assistance (ODA) as compared to the growing financial needs of the ECOWAS Member States. Thus, while maintaining the commitment of the ECOWAS communityto implement this regional programme, the Conference on the mobilization of internal resources, is certainly a viable and credible alternative for financing the ECOWAS-CDP.
The main theme of the High-level Conference is: “Regional DevelopmentFinancing: strategy and innovative approaches for the mobilisation of internal resources in the ECOWAS Region”.
II. ObjectiVEs AND EXPECTED OUTCOMES OF THE ConfErence
II.1 Objectivesof the Conference
II.1.1 Overall Objective
The overall objective of the conference is to discuss the issue of development financing of the ECOWAS region. This would not only ensure the commitment of stakeholders to the programme but also help to discuss and identify better ways as well as mechanisms for internal resource mobilization within the community to finance development projectsof the region.
II.2.2Specific Objectives
The specific objectives of the Conference are to:
(i)create awareness with a view to ensuring ownership and commitment of all stakeholders for successful implementation of the ECOWAS Community Development Programme;
(ii)identify mechanisms that could help domestic resource mobilization to finance priority programmes in the region;
(iii)propose, at the regional level, innovative mechanisms for resource mobilization for CDP financing, including in the telecommunication sector and raw materials in agriculture, oil and mining sectors;
(iv)consider and propose mechanisms of engaging or involving regional and continental financial institutions in the financing of priority programmes of the region.
(v)review and propose a harmonized framework for the intervention of private sector in financing regional development, including Public Private Partnerships (PPP);
(vi)review and propose a framework for the involvement of Diaspora in regional development financing;
(vii)propose appropriate legal framework (legal text, regulation, etc.) for each identified mechanism of resource mobilization.
II.2 Expected Outcomes of the Conference
The expected outcomes of the high-level Conferenceare:
(i)ownershipand involvement of all stakeholders are ensured for the successful implementation of the ECOWAS Community Development Programme;
(ii)mechanisms to ensure domestic resource mobilization to finance priority programmes in the region are identified;
(iii)Innovative mechanisms for mobilising resources are proposed to finance priority programmes in theregion, including in the telecommunication, raw materials from oil, mining and agriculture;
(iv)mechanisms for the involvement of regional and continental financial institutions in the financing of priority programmes in the region are proposed;
(v)harmonized framework for private sector financing of regional development,especially through Public Private Partnerships (PPP) is proposed;
(vi)a framework for the involvement of the Diaspora in the financing of development projects in the region is proposed;
(vii)for each of the identified financing mechanisms, the appropriate legal framework for resource mobilisation is proposed.
III. ECOWAS Community Development Programme (CDP): a COHERENT Framework OF WEST AFRICAN Development Initiatives
III.1 – Formulation Process of the Programme:A Coherent, Participatory and Inclusive Formulation Approach
The ECOWAS Commission initiated the formulation of the ECOWAS Community Development Programme (ECOWAS – CDP) to operationalize the Medium and Long Term Development Agenda of the ECOWAS region through the identification of priority projects and programmes to be implemented.
The CDP aims at translatingthe ECOWAS Vision 2020 into concrete projects, within a coherent framework. It also aims at contributing to building a competitive, sustainable and secure Regional Economic Union, with national economies fully integrated into regional and global economies.
The CDP aims at promoting strong economic growth leading to job creation and sustainable development within ECOWAS, with greater participation of people into the integration process.
Figure 1: Synthetic Diagram for Strategy comparison
Source: Regional Inventory Study, CDP Unit, ECOWAS Commission, 2014
The CDP establishes a coherent framework for programmes and projects from ECOWAS Commission and its Specialised Agencies and Institutions, but also projects piloted by other stakeholders: Member States, Intergovernmental organizations (IGOs) and Non-State Actors (civil society, private sector and research sector). Thus, the formulation of the CDP is a result of an extensive consultative process with key stakeholders in West Africa.
These discussions helped all regional stakeholders to validate a four-step formulation process:
(i)Sensitization and capacity building of stakeholders;
(ii)Inventory of existing programmes and financing;
(iii)Prioritization, Planning and Impact Assessment;
(iv)Round Table for the financing of CDP.
Box1: The Four Phases of the ECOWAS-CDP Formulation Process
1.Sensitisation and Capacity Building of Stakeholders
The CDP was envisaged to be a consensual programme that reflects the views of the major players in the development agenda of the region. Thus, the sensitisation phase consisted in continuous interaction with governments, IGOs, civil society, researchers and the private sector. It was aimed at providing information on the CDP and at defining modalityof their involvement in the formulation process.
2. Inventory of existing Programmes and Funding sources
Oneof the main objectives of the CDP formulation process is to ensure consistency between existing programmes in ECOWAS Region. Thus, it was important to take stock of all existing regional projects and programmes at the ECOWAS Commission and its specialized agencies and institutions, as well as at other IGOs, Member States and Non States Actors (Private Sector, Civil Society and Research) levels.
3. Prioritization, planning and impact assessment
From the inventory of regional projects and programmes, priority projects are selected according to agreed criteria adopted by stakeholders. The T21 Model was used to assess the impactof selected projects and programmes on the development of the region.
4. Roundtable of Donors for the financing of the CDP
Following the planning / Impact Assessment phase, a round table is organised to present CDP projects to all potential partners, including the regional private sector, regional investment banks,international investors and development partners,in order to mobilize adequate financial resources for the implementation of the CDP.
Source:, ECOWAS CDP Unit, ECOWAS Commission,2014
One of the major achievements of the CDP formulation process is the inventory of existing Development Programmes and Projects in Member States, Intergovernmental Organisations (GOs) and Non State Actors (NSAs) in West Africa and their prioritisation according to criteria endorsed by all stakeholders.
Figure 2: Synthetic Diagram of the CDP Formulation Approach
Source: ECOWAS CDP Unit, ECOWAS Commission 2014
This exercise led to the selection of 230 priority projects, of which 85 promoted by Member States, 140 projects from Intergovernmental Organisations (IGOs) and5 are from Non State Actors (NSAs).
According to the nature of projects, three (3) types of projects were considered in the CDP:
(i)Structural Reform Projects that do not require any analysis of level of maturity;
(ii)Physical Investment projects that follow preparation phases before being submitted for resource mobilisation;
(iii)Projects to support the Operationalizationof the CDP.
III.2 –Priority Area of Intervention of the ECOWAS Community Development Programme (CDP)
The CDP focuses on four (4) Priority Areas developed around the four major challenges identified during the diagnosis of development and regional integration issues in West Africa[1]. These are: (i) problems of governance, (ii) low level of intra-regional trade, (iii) issue of competitiveness, and (iv)low coherence of policies and programmes, associated with long-term planning challenge. The four (4) Priority Areas (PA) are furtherdeveloped into twelve (12) Strategic Objectives (SO).
Table1: Priority Areas and Strategic Objectives of the CDP
Priority Area (PA) / Strategic Objectives (SO)Priority area 1 (PA1): Integration of people, governance and human development / SO1: Governance and Peace
SO2: Integration of people
SO3: Human Development
Priority area 2 (PA2) : Deepening economic integration / SO4: Trade Development
SO5 & SO6 : Monetary and financial integration
Priority area 3 (PA3) : Infrastructure development and wealth creation / SO7a: Interconnection of transport infrastructure
SO7b : Interconnection of ICTs
SO7c : Interconnection of energy and hydraulic Infrastructure
SO8 : Agriculture 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 and Evaluation (M&E)
Source:, ECOWAS CDP Unit, ECOWAS Commission, 2014
Table 2: Distribution of priority projects by Strategic Objectives
Priority Areas (PA) / Strategic Objectives / Number of Project / % Project / Total Investment (Total Million) / % Investment. Total / Invest-ment Gap / %GapPA1: 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% / 334,555759.66 / 903%
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% / 389,624828.0 / 9189%
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 / 100.0% / 434,607811.2 / 902%
Source: ECOWAS CDP Unit, ECOWAS Commission, 2015
IV. REGIONALdevelopment and THE FINANCING OF ECOWAS CDP
Development financing of the ECOWAS region continues to be done mainly through cooperation and international partnership both at bilateral level and international financial institutions. The share of Capital Expenditure in the national budgets of member states remains generally below 30%.
Given the recent economic and financial crises, couple with the growing uncertainty of developed Countries to allocate at least 0.7% of their GDP to Official Development Assistance, it is a clear indication to the needto reduce external dependency. Thus, it is important to place more emphasis on domestic resource mobilizationthrough increased budgetary resources andthe use of innovative financing mechanisms.