ECOWAS holds consultative meeting on the implementation of the fund for the development of energy and transport sectors10 Mar, 2022
The 36th session of ECOWAS Heads of State and Government Summit, held in Abuja (Nigeria) on 22nd June 2009, endorsed the creation of a Fund for Development and Financing of ECOWAS Transport and Energy sectors (FODETE). The fund will be dedicated to financing the development of regional infrastructure in the Transport and Energy sectors and is expected to be fed from a levy on the key export resources (Agriculture, Oil & Gas, Natural Minerals etc.) within the region.
The FODETE study was concluded in 2016 and demonstrated FODETE as a viable funding mechanism. Based on the consultants proposed levy rates in the Petroleum, Mining and Agricultural Sectors and its macroeconomic analysis, FODETE is expected to generate over US$ 300 million annually, which continues to increase over a projected period of 20 years, an amount substantial enough to impact on alleviating the infrastructural deficit in our region estimated to require about US$5.2 billion annually.
During discussions on the modalities of the implementation of FODETE, it was deemed necessary to undertake national consultations on FODETE at the level of all Member States. The aim of the national consultations was to allow national experts interrogate the FODETE levy rates proposed by the validated study with a view to coming up with an eventual regional consensus on applicable levy rates in the three sectors from which the FODETE is fed (Agriculture/fisheries, Mining and Oil and Gas).
The ECOWAS Commission organized a consultative meeting on FODETE from 2nd to 4th March 2022 in Dakar, Senegal. The purpose of this meeting was to present the results of the FODETE national consultations to the different Member States and elaborate a roadmap for the next steps. The meeting will contribute towards building a consensus on key issues regarding the levy rates and governance structure of FODETE.
In attendance were Heads of the ECOWAS National Offices, the Vice President Operations of the ECOWAS Bank for Investment and Development (EBID), the ECOWAS Commissioner for Infrastructure and PPDU.
The opening ceremony was marked by a welcome statement by Mr. Pathe Gueye, Commissioner for Infrastructure, ECOWAS Commission, and an opening speech by Ambassador Sylvain Sambou Head of ECOWAS National Office delivered on behalf of the Minster of Foreign Affairs of Senegal.
The speakers emphasized the importance of developing a regional framework and a financing mechanism for the development of Infrastructure as a basis for sustainable development for countries in our community.
The Meeting made several recommendations on the levy rates and governance structure of FODETE.
The meeting reiterated its support for FODETE as an innovative financing mechanism especially for the implementation of the Regional Infrastructure Master Plan 2020-2045 adopted by the Authority of ECOWAS Heads of State and Government. It was noted that this master plan includes 201 regional projects with a financing requirement of USD 131 billion.
The ECOWAS Commission also committed itself to taking the necessary steps to present the FODETE dossier to the statutory bodies of ECOWAS during the year 2022. To this end, a roadmap for the implementation of FODETE was adopted during this meeting.
The meeting concluded with the participants expressing gratitude to the Government and people of Senegal through His Excellency President Macky Sall for the warm welcome and excellent facilities provided at their disposal.