Africa: ECOWAS Accelerates Plans for ECO Single Currency Launch by 2027

The Economic Community of West African States (ECOWAS) has intensified efforts to finalize the practical arrangements necessary for the introduction of its long-anticipated single currency, the ECO. This renewed commitment follows a consensus reached during the 65th Ordinary Session, as highlighted in the communiqué issued after the 66th Ordinary Session of the Authority of Heads of State and Government, held in Abuja on Sunday.

New Launch Date Set for 2027

Originally slated for 2020, the ECO’s launch was postponed due to the disruptions caused by the COVID-19 pandemic. ECOWAS has now set a new target date of 2027, reaffirming its commitment to regional integration and economic cooperation.

Member states and central banks have been urged to expedite their financial contributions and operational preparations to ensure the timely establishment of key institutions needed for the currency’s implementation. These include critical systems for monetary policy coordination, fiscal convergence, and payment infrastructure.

Driving Regional Economic Integration

The ECO is envisioned as a transformative tool to lower trade costs, enhance intraregional trade, and address challenges posed by the current use of multiple national currencies within the bloc. By replacing these non-convertible currencies with a unified monetary system, ECOWAS aims to foster stronger economic ties among its 15 member states.

The currency is expected to significantly boost economic prosperity across the region by facilitating seamless cross-border transactions, reducing exchange rate volatility, and attracting foreign investment.

Dual Circulation and Phased Implementation

During the initial phase of the ECO’s implementation, national currencies will circulate alongside the common currency for a transitional period. To ensure a smooth rollout, ECOWAS is considering a two-zone model, where member states would first peg their national currencies to the ECO before full adoption.

Meeting Key Deadlines

The ECOWAS Authority has called for increased efforts to meet the deadlines for establishing and operationalizing the necessary institutions. These measures are critical for achieving convergence criteria, such as fiscal discipline and inflation stability, which remain prerequisites for the single currency’s success.

A Path Towards Economic Unity

The launch of the ECO represents a significant milestone in ECOWAS’s broader vision of economic integration and sustainable development. As member states work collaboratively towards this goal, the ECO is poised to reshape the economic landscape of West Africa, driving inclusive growth and regional unity.