The ECO, the single currency of ECOWAS (Economic Community of West African States), will obviously not see the light of day this year 2020. This is what emerges from the conclusions of the 57th Summit of Heads of State of the Community, where the issue was also on the agenda.

The Heads of State have thus decided to follow a new roadmap, the content of which has not yet been specified, and which, virtually, postpones sine die the launch of this common currency. The Summit thus agrees to "postpone, at a later date, the launch of the single currency", while taking into account the dynamic, originally driven in the WAEMU countries (CFA Franc Countries), to reform their currency.

The adoption of the ECO is made all the more difficult by the fact that the countries have made little progress in the structural preparation of their economies for the common currency, according to the own criteria defined by ECOWAS (remember that only Togo meets these convergence criteria, to date).

It should also be noted that non-Franc countries (WAMZs), namely Nigeria, Gambia, Ghana, Guinea, Liberia, and Sierra Leone, have initiated economic policies, oriented towards these convergence criteria.

The fault of Covid?

It is also necessary to note the negative impact that the Covid-19 crisis, which is ultimately unforeseen, will have had on the economies and public management of States. The pandemic has generated significant economic and financial difficulties for all countries (most will lose several points of growth this year), imposed a certain withdrawal into themselves, and put administrations in front of new emergencies.

As a result, it was also decided to exempt Member States from compliance with the macroeconomic convergence criteria in 2020.

Towards a new convergence pact

However, the Heads of State recalled "their determination to respect the convergence criteria before the creation of the single currency". In this perspective, we should in particular move towards a new convergence and macroeconomic stability pact, for the adoption of the single currency, following the next roadmap.

This postponement, with the choice of the "gradual approach for the launch of the ECO", should make it possible to ease tensions between different countries, particularly vis-à-vis Nigeria (70% of the ECOWAS economy). Indeed, President Buhari did not fail to show his "concerns" about the direction that ECO was taking in the WAEMU countries which, last year, seemed to be moving towards the adoption "unilaterally" of a new currency to replace the CFA.