ECOWAS Sets 2027 Launch Date for Single Currency ‘ECO’
West African Nations Prepare for Historic Monetary Integration
The Economic Community of West African States (ECOWAS) has announced concrete steps toward implementing its single currency, the ECO, with a new target launch date of 2027. The announcement came following deliberations at the 66th ordinary session of heads of state and government meeting in Abuja.
The regional bloc has made progress in establishing the framework for this monetary union, marking a crucial step forward after the initial 2020 launch was delayed due to the COVID-19 pandemic. The Authority has now adopted specific selection criteria, proposed by the High-Level Committee, to determine which member states will be first to adopt the ECO and which will join in subsequent phases.
In a significant development, ECOWAS has directed the Commission to work with the West African Monetary Agency to incorporate these selection criteria into the protocol for establishing the ECOWAS Monetary Union Agreement.
Financial preparations are also underway, with the Authority endorsing recommendations regarding funding sources, implementation costs, and operational modalities necessary for the currency’s launch. Member states and their respective central banks have received urgent directives to fulfill their financial commitments, ensuring the smooth operationalization of required institutions once the official launch date is confirmed.
The Authority has emphasized the need for accelerated efforts from both the High-Level Committee and the ECOWAS Commission to meet established deadlines for creating and operationalizing essential institutions that will support the ECO’s implementation.
Beyond monetary integration, the session also addressed regional agricultural development through the ECOWAS Agricultural Policy (ECOWAP). The Commission has been tasked with implementing regional strategies focusing on livestock farming, the Regional Rice Self-sufficiency Initiative, and the Comprehensive African Agriculture Development Programme’s Action Plan for 2026-2035.
The introduction of the ECO is expected to mark a turning point in West African economic integration, with the hope of streamlining trade operations and fostering economic growth across the region. The move toward a single currency represents one of the most ambitious economic projects in West Africa’s history, aimed at strengthening regional economic ties and improving trade efficiency among member states.
The successful implementation of the ECO could transform the economic landscape of West Africa, creating new opportunities for cross-border trade and investment while reducing transaction costs that currently hamper intra-regional commerce.
