Officials gathered at the 43rd Joint Ordinary Meeting of the Economic and Monetary Affairs Committee and the Operations and Administration Committee of the West African Monetary Agency (WAMA) in Accra, Ghana, have called for intensified efforts to facilitate the launch of the common currency for the Economic Community of West African States (ECOWAS), known as the Eco, by 2027.
In June 2020, ECOWAS leaders adopted a roadmap for the Eco’s launch, which stipulated that all member states must consistently meet the primary convergence criteria by the end of 2026.
However, Momodou Bamba Saho, the Director-General of WAMA, highlighted in his opening address that no ECOWAS member state had achieved all four primary convergence criteria in 2022. These criteria include meeting targets for inflation, overall budget deficit to gross domestic product ratio, central bank financing of the budget deficit, and a cap on foreign exchange reserves.
‘While we have made strides in certain areas, there is a clear need for enhanced strategies and reforms to ensure all member states align with our shared goals. Together, we can navigate these challenges and lay the foundation for a prosperous ECOWAS,’ Saho said.
Ernest Addison, the Governor of the Bank of Ghana, acknowledged the progress made in implementing the roadmap but stressed the necessity of concerted efforts to improve the macroeconomic environment in the region. He highlighted the importance of addressing key aspects of the roadmap, including the establishment of a unified payment and settlement system.
‘Despite the challenges, it is gratifying to note that there is notable progress on the implementation of the roadmap that we should be proud of, although more remains for us to do,’ said Addison.
‘A concerted effort is required to help improve our macroeconomic environment and place the region on a stronger convergence path for a viable monetary union.
We need to pay equal attention to other key areas of the roadmap, including having a unified payment and settlement system,’ he added.
As ECOWAS continues its journey towards a common currency, leaders and officials remain focused on overcoming challenges and fostering a robust monetary union in West Africa.
The road to the Eco’s launch by 2027 is marked by collaboration and collective determination among member states in the region.
