Faith Nyasuguta
The Economic Community of West African States (ECOWAS) remains committed to launching its long-anticipated regional currency, the Eco, by 2027. This initiative aims to enhance economic integration and facilitate trade across the region, despite facing political and financial challenges.
Mohammed Manga, Director of Information and Public Relations at Nigeria’s Ministry of Finance, confirmed the bloc’s determination during the 11th ECOWAS Convergence Council meeting in Abuja. The meeting brought together finance ministers and central bank governors from ECOWAS member states to discuss the necessary steps for implementing the currency. Officials emphasized the importance of financial stability and economic cooperation in ensuring the Eco’s success.
A Vision for Economic Unity
The Eco is a proposed single currency designed to unify the monetary systems of ECOWAS’ 15 member states. Originally announced in June 2019, the currency was intended to promote seamless trade, financial stability, and economic independence.
The plan for implementation was structured in two phases:
1. First Phase -The West African Monetary Zone (WAMZ)- which includes Gambia, Ghana, Guinea, Liberia, Nigeria, and Sierra Leone- was to adopt the Eco first.
2. Second Phase -The Eco would then merge with the CFA franc, currently used by eight French-speaking West African nations in the West African Economic and Monetary Union (UEMOA). This transition was expected to provide these countries with full monetary independence from France.
Originally set for 2020, the launch of the Eco was delayed due to economic disparities, fiscal challenges, and political disagreements. However, ECOWAS reaffirmed its commitment in September 2023, emphasizing that 2027 remains the official target date for its rollout.
Challenges
The Eco’s development has faced major economic and political challenges, particularly in recent years. Some of the key hurdles include:
Economic Instability in Key Economies: Nigeria and Ghana, two of the region’s largest economies, are struggling with high inflation, debt crises, and economic downturns. These financial difficulties could delay convergence criteria needed for a unified currency.
Political Uncertainty: In January 2024, the Alliance of Sahel States (Burkina Faso, Mali, and Niger) announced their withdrawal from ECOWAS. Their exit, ratified by the ECOWAS Council in January 2025, was a response to sanctions imposed after a series of military coups.
Security Concerns: Regional instability, particularly in the Sahel, has complicated efforts to create a stable economic bloc. Ongoing conflicts and governance issues have raised concerns about the Eco’s long-term viability.
Global Economic Disruptions: Rising inflation, global financial volatility, and fluctuating commodity prices have also impacted the economic outlook for ECOWAS member states.
Despite these difficulties, some analysts believe that the departure of Burkina Faso, Mali, and Niger could streamline the Eco’s implementation by reducing internal political obstacles.
Next Steps
According to Nigeria’s Minister of Finance, Wale Edun, the success of the Eco depends on greater monetary and fiscal discipline among member states. Speaking at the ECOWAS Convergence Council meeting, he stressed the importance of addressing inflation, security threats, and macroeconomic stability.
“This is our opportunity to shape the future of our region. We must work together to drive economic stability, growth, and prosperity,” Edun stated.
He also highlighted ongoing engagements with South Africa’s G20 presidency, viewing it as a strategic move to align West Africa’s economic policies with broader African financial goals.
Looking Ahead
The rollout of the Eco is expected to create a more unified and stable regional economy, simplifying cross-border trade, reducing currency exchange risks, and attracting foreign direct investment (FDI). If successful, it could mark a significant shift in West Africa’s economic landscape, strengthening the region’s global economic influence.
However, with persistent financial hurdles and political complexities, the next two years will be crucial in determining whether ECOWAS can meet its 2027 deadline for launching the Eco.
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