AS the Economic Community of West African States (ECOWAS) marks its 50th anniversary, leaders are renewing their push for a single regional currency. Omar Touray, president of the ECOWAS Commission, announced in August that 2027 has been set for the launch of the ECO and stressed that the adoption will be gradual.
‘ECOWAS will no longer wait for all countries to meet convergence criteria,’ Touray said during a meeting with Gambian President Adama Barrow in Banjul. ‘The idea is to launch the single currency with those who are ready.’
This approach follows the option presented in 2020 by President Alassane Ouattara of Côte d’Ivoire, when it was proposed that countries in the CFA franc zone—those with the strongest macroeconomic ratios such as inflation below three per cent, budget deficit below four per cent, and public debt below 70 per cent of GDP—would move first while others, including Nigeria, Ghana, Liberia, Sierra Leone, Guinea and Gambia, prepared to join.
Côte d’Ivoire leads readiness drive
A single currency has long symbolised West Africa’s aspirations for unity and financial independence, and remains a key pillar of the African Union’s Agenda 2063. Ouattara, who first spearheaded the ECO project in Abidjan in 2019, continues to champion the plan despite delays from the Covid-19 pandemic and coups in the Sahel.
‘From next year, Côte d’Ivoire will meet the required convergence criteria,’ Ouattara pledged in October 2024, presenting his country as a model for others. Financial experts note Côte d’Ivoire’s sustained growth, resilient inflation management and external reserves covering nearly four months of imports. While the fiscal deficit was about 5.2 per cent of GDP in 2023—above the four per cent threshold—officials say it is steadily declining.
Ouattara, who is seeking a fourth term in October, has tied his campaign to this progress. He was reported to have been ‘irritated for months’ by the repeated delays but has ‘doubled down’, presenting Côte d’Ivoire’s readiness as both a national achievement and an inspiration for the bloc.
Economic disparities remain
However, achieving consensus within ECOWAS remains a challenge. Nigeria, Ghana and Côte d’Ivoire together account for about 67 per cent of the bloc’s 350 million people, while six of the smallest countries, each with fewer than 10 million inhabitants, represent just seven per cent of the total.
Nigeria alone contributes roughly 67 per cent of ECOWAS’s GDP, while the five smallest member states together produce less than two per cent. These disparities underline the difficulty of balancing influence and fostering integration among the bloc’s diverse economies.
Regional benefits in sight
Despite the obstacles, the ECOWAS Commission believes the ECO will strengthen intra-regional trade, reduce reliance on foreign currency and promote financial stability. Touray has now joined forces with Ouattara to push the project forward, underscoring their shared belief that the ECO could transform West Africa’s economic landDespite the obstacles, the ECOWAS Commission believes the ECO will strengthen intra-regional trade, reduce reliance on foreign currency and promote financial stability. scape.
Credit: Africabriefing
