West Africa's Trade Monitoring Mechanism Shut Down: A Dire Impact on Food Security and Economic Development

Strategic Insights -

Countries in West Africa set up a unique trade monitoring mechanism a decade ago to track intra-regional trade in agricultural products and livestock. However, the system was closed down in 2022 due to a lack of funding from regional organizations. This has resulted in a lack of up-to-date trade data, which is essential for assessing the impact of external shocks on food security and economic development in the region. The absence of accurate data also hinders the development of market information systems and disease surveillance efforts.

Key Takeaways:

  • The trade monitoring mechanism provided West African countries with data from over 320 markets and along 10 corridors, enabling the tracking of trade patterns, livestock, and zoonotic diseases.
  • The lack of up-to-date trade data has significant knock-on effects, including the inability to assess the impact of external shocks on food security and economic development.
  • Detailed intra-trade data are essential for mapping trade networks, strengthening market information systems, and disease surveillance efforts.
  • The social structure of trade networks, their geography, and temporal changes could inform market information systems and disease surveillance efforts.
  • Regional bodies should support the resumption of trade data collection and foster dialogue with national statistical offices and other national institutions to work towards a coherent regional statistical approach.
  • The closure of certain borders following successive coups in Mali, Burkina Faso, and Niger has affected the trade networks linking the Sahel to the Gulf of Guinea.
  • Re-establishing a permanent data collection system by supporting local associations such as the West African Association for Cross-Border Trade in Agro-forestry-pastoral and Fisheries Products is essential for policymakers wishing to strengthen the region's resilience.
  • Accurate, timely, and centralized data collection could help identify possible hotspots, reconstruct transmission patterns, and develop control measures and alert systems to protect unaffected areas.

Sources:

  • Permanent Interstate Committee for Drought Control in the Sahel
  • United States Agency for International Development
  • Economic Community of West African States
  • World Animal Health Organisation's International Animal Health Code
  • OECD Sahel and West Africa Club, France

Statistics:

  • 320 markets and 10 corridors were covered by the trade monitoring mechanism.
  • Informal activities could reach up to 85% of total trade, representing US$10 billion, which is six times higher than portrayed in official statistics.
  • Regional livestock exports for Mali, Niger, and Burkina Faso are likely to be close to USD 1 billion when counting unrecorded trade, against USD 80 million in official statistics.
  • Funding for trade data collection was provided by the International Fund for Agricultural Development, and locally managed by the West African Association for Cross-Border Trade in Agro-forestry-pastoral and Fisheries Products, based in Togo.