West Africa's Single Currency Dreams Remain Elusive Amid Economic Challenges

The West African Economic and Monetary Union (UEMOA) has been working towards introducing a single currency, called the Eco, for over three decades. Despite repeated deadlines, the project remains stalled due to various challenges.

The latest commitment came in July 2022, where plans to introduce the Eco by the end of 2027 were adopted. However, analysts are skeptical about meeting this deadline, citing economic disparities among member states and fiscal instability as major concerns.

Dr. Muda Yusuf, CEO of Nigeria's Centre for the Promotion of Private Enterprise (CPPE), notes that weak economic governance lies at the heart of the problem. 'The quality of economic governance is poor,' he says. 'Policies are arbitrary and inconsistent, making it difficult to achieve macroeconomic convergence required for a common currency.'

The project has faced numerous obstacles, including differing inflation rates across the region, different public debt levels, and inability of governments to keep budget deficits within agreed limits.