Enhancing resilience in the Mano River Union region by promoting export diversification and regional supply chains under the AfCFTA

The Mano River Union (MRU) region, comprising Côte d’Ivoire, Guinea, Liberia and Sierra Leone, faces persistent structural challenges that constrain sustainable growth and inclusive development. These include limited economic diversification, low levels of industrialization, significant gender inequalities and vulnerability to external economic shocks. Intra-regional trade remains limited, largely informal and concentrated in low value-added products, constraining opportunities for productive transformation and job creation. Nevertheless, the region possesses considerable potential, including abundant natural resources, strong agricultural prospects and a growing young population.

Effective implementation of the African Continental Free Trade Area (AfCFTA) could help these countries build on these strengths by diversifying exports, strengthening regional value chains and increasing the participation of small and medium-sized enterprises (SMEs) in regional markets.

Objective of the project

The project aims to strengthen economic resilience and promote sustainable and inclusive development in Guinea, Liberia and Sierra Leone by supporting export diversification, regional value and supply chain development, and the increased and equitable participation of SMEs in regional markets under the AfCFTA. Particular emphasis will be placed on strengthening productive capacities, facilitating SMEs’ ability to access finance and digital technologies, and supporting women-led SMEs.

Activities

The project will undertake national diagnostic studies and sector-specific assessments to identify export diversification opportunities, priority industries and constraints to SME participation in regional value chains. National consultations, regional policy dialogues and capacity-building workshops will strengthen the capacities of public and private stakeholders to assess trade and industrial development opportunities, improve policy coordination and facilitate the implementation of AfCFTA commitments. The project will also promote peer learning on SME financing, digitalization and regional value chains, while developing and enhancing digital tools for trade data collection, market intelligence and the identification of export opportunities. These activities will be complemented by assessments of digital and financing solutions and targeted capacity-building to support their effective use by policymakers and SMEs.

Intended outcomes

The project is expected to achieve the following outcomes:

• Enhance institutional and policy capacities to promote export diversification and inclusive industrial development.
• Improve SMEs’ access to digital technologies, market information and financing opportunities.
• Strengthen regional partnerships for value-added cross-border trade and the development of regional industrial clusters.
• Foster greater regional economic integration.
• Strengthen the capacities of women-led SMEs and other underserved economic actors.
• Build more diversified, competitive and resilient economies in the MRU region.

Gender equality and women’s economic empowerment

The project will address barriers faced by women engaged in informal trade and small-scale business, particularly in accessing finance, digital technologies and regional market opportunities. It aims to strengthen women’s participation in regional trade and ensure that they benefit from export diversification and more inclusive financing opportunities. The project is classified as GEN II under the African Development Bank (AfDB) Gender Marker System.

Gender is mainstreamed across all project components:

• Assessments and consultations: National consultations will identify gender gaps and opportunities in regional value chains and export diversification. Women and men will be consulted, and their experiences reflected in the studies, assessments and validation workshops.
• Digital technologies: A country gap assessment will examine how small-scale traders, women-owned and women-led businesses and young entrepreneurs use digital technologies along potential supply chains. The cross-border trade mobile application will include options for collecting and analysing sex-disaggregated data.
• AfCFTA and finance: AfCFTA workshops will include an agenda on the operationalization of the Women and Youth Protocol. Links with the AfDB’s Affirmative Finance Action for Women in Africa (AFAWA) initiative and opportunities to access climate finance will be explored for women-led SMEs.
• Regional analysis and dialogue: Two regional reports will assess how leveraging the MRU’s export potential can promote gender equality and environmental sustainability. Women’s associations will take part in the regional stakeholder workshop.

The project will aim for gender parity in participation across its activities, with a target of 50 per cent women and 50 per cent men. Sex-disaggregated data will be collected throughout implementation to monitor participation and results.

Link to regional priorities and the SDGs

The project supports the MRU’s regional integration and economic development priorities, the African Union’s Agenda 2063 and the implementation of the AfCFTA.

The project contributes directly to the achievement of multiple Sustainable Development Goals (SDGs), including:

• SDG 1 - No Poverty: through increased economic opportunities and income generation.
• SDG 5 - Gender Equality: through targeted support to women-led SMEs and women’s economic empowerment.
• SDG 8 - Decent Work and Economic Growth: by promoting productive transformation, entrepreneurship and regional trade.
• SDG 9 - Industry, Innovation and Infrastructure: through support for industrial development, digitalization and strengthened productive capacities and SME participation in regional value chains.
• SDG 10 - Reduced Inequalities: by increasing the participation of women, young entrepreneurs and other underserved groups in economic opportunities.
• SDG 12 - Responsible Consumption and Production: through value addition and more sustainable production systems.
• SDG 13 - Climate Action: by fostering economic resilience and supporting sustainable development pathways.
• SDG 16 - Peace, Justice and Strong Institutions: through strengthened governance, policy coordination and regional cooperation.
• SDG 17 - Partnerships for the Goals: through collaboration among regional institutions, governments, the private sector and development partners to support trade and economic development.