Can Better Finance and Infrastructure Unlock West Africa's $480 Billion Food Market by 2030?

An OECD survey of 3,225 food traders finds that West Africa's regional food trade is a large but largely informal economic engine, with access to finance, infrastructure, security, and policy implementation—not just border procedures—emerging as the biggest barriers to growth. The report urges governments, ECOWAS, development partners, and private investors to strengthen financing, logistics, market information, and regional trade policies to unlock a USD 480 billion regional food market by 2030 and boost food security, jobs, and economic integration.

West Africa's regional food trade is far larger and more dynamic than official statistics often suggest, but it remains constrained by financing gaps, poor infrastructure, insecurity, and weak policy implementation, according to a new report by the OECD Sahel and West Africa Club (OECD/SWAC). Based on a survey of 3,225 food traders across 81 markets in Benin, Côte d'Ivoire, Ghana, Liberia, Nigeria, Senegal, Sierra Leone, and Togo, the study argues that governments must shift from simply facilitating trade at borders to actively promoting agribusiness growth. With regional food demand expected to increase from USD 207 billion in 2020 to around USD 480 billion by 2030, the report suggests that improving the business environment for food traders could significantly strengthen food security, employment, regional integration, and economic growth.

Regional Food Trade Is Bigger Than Policymakers Assume

The study reveals that regional food trade is a major economic activity despite being largely informal. Around 83% of traders operate without formal business registration or import-export certificates, yet the median trader handles food worth USD 13,289 every month and employs about five workers. The largest traders report average monthly turnovers of around USD 143,000, while nearly 90% of businesses trading more than USD 100,000 monthly still remain informal.

Researchers argue that informality should not be mistaken for low economic value. Instead, it reflects business environments where registration offers limited practical benefits while financing, infrastructure, and regulatory burdens discourage formalization. The report also highlights gender disparities. Women dominate several product categories, such as processed foods, fish, and spices, but their median monthly turnover is USD 8,140, less than half that of male traders at USD 19,023, limiting their contribution to regional economic growth.

Finance and Infrastructure Matter More Than Borders

Although border procedures continue to affect trade, the survey suggests they are only one part of a much broader challenge. When asked what would improve their businesses, 42% of traders identified fewer trade restrictions and taxes, 40% called for easier border procedures, while another 40% highlighted easier access to finance. Security concerns affected 38% of respondents, and 30% pointed to poor roads and transport infrastructure.

When traders selected only one priority, access to finance ranked first, ahead of transport infrastructure and border reforms. Many businesses struggle to secure affordable loans because they lack formal financial records, collateral, or business documentation. High borrowing costs, short repayment periods, and weak credit guarantee systems further restrict investment.

For governments, the findings suggest that trade policy alone will not unlock regional commerce. Expanding SME financing, investing in roads, logistics hubs, storage facilities, and cold-chain infrastructure may deliver greater long-term economic returns than focusing exclusively on customs reforms.

Growing Markets Create New Opportunities for Business

The report challenges another common assumption that regional food trade mainly occurs between neighboring countries. Instead, 56% of traders prefer trading with non-bordering countries, while surveyed markets maintain commercial links with almost nine West African countries on average. Countries such as Nigeria, Ghana, Côte d'Ivoire, and Benin are viewed as future growth engines because of their expanding urban populations, rising incomes, and growing food demand.

Business confidence also remains remarkably strong. More than 40% of traders reported improved business performance during the past five years despite inflation and economic uncertainty, while 62% expect further improvement over the next five years. Vegetables and cereals are seen as the food products with the greatest future growth potential, reflecting changing consumer demand across rapidly expanding cities.

For private-sector stakeholders, these trends present significant investment opportunities in agricultural processing, warehousing, transport, digital trade platforms, cold-chain logistics, financial services, and food retail. As regional demand continues to expand, businesses capable of improving supply chain efficiency are likely to benefit the most.

Policy Implementation Will Determine Regional Success

One of the report's strongest messages is that policy awareness remains surprisingly low. Nearly 80% of traders were unaware that agricultural products qualify for tax exemptions under the ECOWAS Trade Liberalisation Scheme, while 87% said they had never benefited from any ECOWAS initiative. Awareness of supportive national government measures was even lower, indicating a significant gap between policy design and implementation.

For policymakers, the findings highlight the need to improve communication, simplify regulations, strengthen security, and make financing more accessible for informal and small businesses. International development partners can support these efforts by investing in transport corridors, digital market information systems, SME financing mechanisms, and regional business networks. Better coordination between governments, ECOWAS, financial institutions, and the private sector could transform West Africa's regional food trade into a powerful driver of food security, job creation, industrial development, and long-term economic resilience.