Informal Trade Regulation Support Programme

Informal trade plays a major role in the economic activities of the West African region. It contributes to wealth creation, economic growth and employment and fosters relations among the people, zones and territories. It constitutes a sizeable component of cross-border trade. However, in the long term, informal trade may have a negative effect on economic 
growth, as it does not promote investment but causes distortions to competitiveness and does not help national budgets to fully derive benefits from activities in this sector. In some cases, it poses health and security risks to the population by not complying with sanitary and phyto-sanitary (SPS) measures and standards.

Thus, informal trade must be taken into account when policies are being formulated for the enhancement of regional integration in West Africa because it offers real potential for economic growth and poverty reduction in the region. It is against this background that ECOWAS Member States adopted the Strategy for Regulating Informal Trade in West Africa at a regional meeting held from 26th to 27th March, 2012 in Abuja.