Africa-Press – Zimbabwe. The Economic Community of West African States (ECOWAS) has reaffirmed its commitment to launching its unified currency “ECO” by 2027, adopting a gradual approach that limits the first phase to countries meeting economic convergence criteria and ready to participate, according to the final statement issued after the summit of heads of state and government held in Sierra Leone.
The “ECO” project is presented as a tool to deepen regional integration and support sustainable and inclusive growth, with other countries expected to join subsequently after meeting the requirements.
ECOWAS has abandoned the requirement for all fifteen member states to meet convergence criteria simultaneously before the launch, instead adopting a “multi-speed” approach that does not wait for everyone to be ready, a principle previously proposed in February.
These criteria include a budget deficit not exceeding 3% of GDP, annual inflation below 10%, and total foreign reserves equivalent to at least three months of import coverage. The criteria also encompass levels of public debt and monetary stability.
What is the status of the implementation steps?
ECOWAS has registered the trademark “ECO” with the African Intellectual Property Organization (OAPI) and intends to expand this protection to include other international organizations, according to a local source specializing in African economic news. However, the agency noted that this legal achievement does not resolve fundamental institutional issues.
Among these issues, as reported by a local news outlet, are the operational mechanisms of the future central bank, decision-making and voting rules, and determining which countries will form the initial monetary union.
The local source clarified that the ECOWAS Commission and the West African Monetary Agency (WAMA) have been tasked with intensifying consultations and submitting recommendations to the main working group concerned with the unified currency, which is set to meet before the regular summit scheduled for December 2026.
What are the existing political challenges?
The future of the West African Economic and Monetary Union (UEMOA), which currently shares the West African franc, remains under discussion, as the final statement did not clarify whether these countries would join the first phase.
A local news outlet pointed out that the launch of the “ECO” will have to navigate the changing political landscape in West Africa, following the withdrawal of Burkina Faso, Mali, and Niger from ECOWAS while remaining within the West African Economic and Monetary Union.
The local source noted that the upcoming meeting of the main working group before December 2026 will represent the next major milestone for the regional unified currency project.
