The Economic Community of West African States (ECOWAS) is gearing up to launch its long-awaited single currency, ECO, with a target date set for 2027.
This announcement follows a consensus reached during the 65th and 66th Ordinary Sessions of the ECOWAS Authority of Heads of State and Government, which convened in Abuja on Sunday.
Originally scheduled for 2020, the launch of the ECO had been delayed due to the disruptions caused by the COVID-19 pandemic.
Now, ECOWAS is focused on practical arrangements for the currency’s introduction, which leaders believe will bring major economic benefits.
“This is a major milestone for the region,” said Nigerian President Bola Tinubu, addressing the session. “The ECO will be a driving force for economic prosperity and integration across West Africa.”
The decision to set 2027 as the new launch date was made after extensive deliberations, reaffirming a commitment to achieve a single currency despite the setbacks caused by the pandemic.
The ECO will be introduced across 15 member countries, aimed at boosting regional trade by reducing transaction costs and overcoming barriers posed by multiple national currencies.
During the meeting, ECOWAS leaders approved criteria for selecting member states that will initially participate in the ECO launch.
The High-Level Committee responsible for the ECO’s development has put forward a roadmap for member countries, with a focus on aligning fiscal and monetary policies to ensure smooth integration.
The bloc has tasked the ECOWAS Commission and the West African Monetary Agency (WAMA) with incorporating these criteria into the ECOWAS Monetary Union Agreement.
To facilitate the transition, the Commission has been instructed to fast-track the creation of institutions that will support the single currency’s launch.
“This is not just about currency; it’s about creating a stronger, more unified economic community,” said ECOWAS Chairman and Ghanaian President Nana Akufo-Addo. “We must ensure the success of the ECO by prioritizing our institutions and financial structures.”
Central banks in the region will also be required to make financial contributions to operationalize these institutions.
“The task ahead is enormous,” said Jean-Claude Kassi Brou, the ECOWAS Commissioner for Economic Affairs. “We are moving forward with a clear roadmap and commitment to meet our deadlines.”
While there are still many technical challenges to address, ECOWAS is optimistic that the ECO will lead to long-term benefits for its member countries.
The introduction of the ECO will be gradual, with initial phases expected to see both national currencies and the ECO circulating together.
Countries may start by pegging their national currencies to the ECO in designated “ECO zones,” where the single currency will first be tested.
Leaders have emphasized that the ECO will not only drive trade but also promote economic stability and integration among the countries.
“We have to ensure that the ECO is a real tool for boosting economic growth, reducing poverty, and creating jobs,” said Ivorian President Alassane Ouattara.
Beyond currency reform, the leaders of ECOWAS also stressed the importance of agriculture in driving regional socio-economic development.
Recognizing the role of agriculture in West Africa’s economy, the heads of state instructed the ECOWAS Commission to expedite the implementation of key regional initiatives aimed at agricultural growth.
These include the Development of Livestock Farming and Pastoral Systems, the Regional Rice Self-Sufficiency Initiative (2025-2035), and the domestication of the Comprehensive African Agriculture Development Programme (CAADP) Action Plan (2026-2035).
“Agriculture is the backbone of our region’s economy, and we must do more to unlock its potential,” said President Muhammadu Buhari of Nigeria.
For ECOWAS, the push towards a single currency is about much more than just financial integration. It is a major step toward achieving a common economic space in which member states can work together to overcome shared challenges and unlock new opportunities for growth.
The ECO is seen as a key tool in driving regional integration, with leaders hopeful it will foster better political and economic cooperation across West Africa.
“We must keep pushing forward,” said Togolese President Faure Gnassingbé. “The ECO will be the glue that holds us together, enabling us to speak with one voice in the global economy.”
While the road ahead is challenging, ECOWAS is resolute in its commitment to creating a single currency that will benefit all its member countries and strengthen the region’s position on the global stage.
The ECO is seen as one of the most ambitious economic projects in the history of West Africa, and its successful launch could set a powerful example for the rest of Africa.
“West Africa is on the verge of a transformative economic revolution,” said ECOWAS President Jean-Claude Kassi Brou. “Together, we will make the ECO a success, and it will change the future of our region for the better.”
