The Economic Community of West African States (ECOWAS) has ramped up efforts to finalize the practical steps for launching its single currency, ECO, following a consensus reached during the 65th Ordinary Session. This was disclosed in a communiqué issued after the 66th Ordinary Session of the Authority of Heads of State and Government, which took place in Abuja on Sunday.
Initially scheduled for 2020, the launch of the ECO was delayed due to the COVID-19 pandemic. The new target date for the currency’s introduction is 2027.
The Authority confirmed that it had adopted the criteria proposed by the High-Level Committee for selecting member states that will either participate in the initial launch of the ECO or join at a later stage. It instructed the ECOWAS Commission, in partnership with the West African Monetary Agency (WAMA), to ensure these criteria are integrated into the protocol that establishes the ECOWAS Monetary Union Agreement.
The Authority also approved the High-Level Committee’s proposals concerning the costs, funding sources, and mechanisms for financing the required reforms and institutions to facilitate the ECO’s launch. It urged central banks and member states to make the necessary financial contributions to operationalize these institutions as soon as the official launch date for the single currency is decided.
Furthermore, the Heads of State urged the High-Level Committee, in collaboration with the ECOWAS Commission, to accelerate efforts to meet the deadlines for establishing and operationalizing the necessary institutions for the ECO.
The Authority also praised the progress made in implementing the ECOWAS Agricultural Policy (ECOWAP) to promote food security and nutrition. Recognizing the vital role of agriculture in the socio-economic development of ECOWAS member states, the Authority directed the Commission to prioritize the swift implementation of regional strategies such as the Development of Livestock Farming, the Regional Rice Self-Sufficiency Initiative (2025-2035), and the domestication of the Comprehensive African Agriculture Development Programme (CAADP) Action Plan (2026-2035).
In addition, the Authority welcomed strengthened cooperation with technical and financial partners and urged member states to collaborate with regional institutions to ensure the success of these initiatives aimed at achieving food security and improving nutrition.
The ECO is designed to:
- Lower trade costs and enhance intra-regional trade, which is currently limited by the use of non-convertible national currencies within ECOWAS.
- Foster economic growth and prosperity for ECOWAS member countries.
Some anticipate that the transition to the single currency will involve a brief period where both national currencies and the ECO will circulate concurrently. Others propose that the initial phase should involve two distinct ECO zones, where countries peg their national currencies to the ECO.