A SWOT analysis of a potential regional commodity exchange in the Economic Community of West African States (ECOWAS)

Bla J.C. Eba, John Struthers

Research output: Contribution to conferencePaper

Abstract

The purpose of this paper is to explore the possibility for the ECOWAS member states to establish a market institution, an ECOWAS Regional Commodity Exchange (ERCX) that is likely to facilitate intra-regional agricultural trade and offer large gains to member states.

The paper specifically leverage contributions from previous research on the literature on commodity price volatility management, Agricultural Commodity Exchanges, and Regional Trade Agreements (RTAs) across the region to evaluate the potential benefits and challenges of ECOWAS member states to establish such an ERCX. It also identifies the strengths and opportunities that ECOWAS member states may exhibit in terms of establishing such an exchange whilst highlighting weaknesses and potential threats in a formal SWOT and TOWS analysis. Initial findings indicate that ECOWAS possesses enough strength that outweigh its weaknesses and may have more opportunities which outweigh its identified threats.

The paper concludes that, an ERCX may help member states to take advantage of unexploited opportunities in intra-African trade which are evident in agriculture and will thus provide a larger market. In particular, a well organised and integrated trading platform such as an ERCX has the potential to facilitate the achievement of major benefits of economies of scale for production and trade.
Original languageEnglish
Pages23-23
Number of pages1
Publication statusPublished - 6 Apr 2017
Event2nd Annual Research Conference of the Centre for African Research on Enterprise and Economic Development (CAREED) - University of the West of Scotland, Paisley, United Kingdom
Duration: 6 Apr 20177 Apr 2017

Conference

Conference2nd Annual Research Conference of the Centre for African Research on Enterprise and Economic Development (CAREED)
Abbreviated titleCAREED 2017
CountryUnited Kingdom
CityPaisley
Period6/04/177/04/17

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Eba, B. J. C., & Struthers, J. (2017). A SWOT analysis of a potential regional commodity exchange in the Economic Community of West African States (ECOWAS). 23-23. Paper presented at 2nd Annual Research Conference of the Centre for African Research on Enterprise and Economic Development (CAREED), Paisley, United Kingdom.