The Department of Economic Affairs and Agriculture of the ECOWAS Commission has called for expedited implementation of the single currency program in a report to the Sixth Legislature of the ECOWAS Parliament on Monday, 15 July 2024, during the parliament’s First Ordinary Session.
The report highlighted numerous challenges faced by the department and proposed solutions, emphasising on implementing the single currency program.
The report noted that “It is crucial to build consensus between Member States to fast-track the implementation of the ECOWAS Single Currency Programme and provide the Department with the necessary human resources to enable it to carry out its mandate timely.”
Despite continuing to implement approved activities and work programs, the department faces significant challenges that include non-tariff barriers to the free movement of people and goods, economic and financial volatility due to domestic and external shocks, and climate change. Some other challenges are recurring farmer/herder conflicts, and insecurity due to armed conflicts, which have resulted in food insecurity for millions in the region.
The efforts towards the single currency has suffered a major setback as none of the West African Monetary Zone (WAMZ) member states has met the four primary convergence criteria to make it happen.
Speaking at the 48th meeting of the Committee of Governors of the Central Banks of the Member States of West African Monetary Zone (WAMZ) in Abuja in March, the Director General of the organisation, Dr. Olorunsola Olowofeso, explained that the assessment of member states’ performance reveals that as of the end of June 2023, all WAMZ member states failed to meet all the four primary convergence criteria, noting that the zone’s performance score declined to 29.2 per cent compared to 41.7 per cent during the same period in 2022.
The Economic Affairs and Agriculture department report pointed out that the lack of consensus among Member States and insufficient human resources have delayed the creation of the single currency. To address these issues, the report suggested strengthening awareness among States for compliance with community texts, implementing rigorous economic policies, promoting peaceful coexistence, and combating terrorism and violent extremism.
Efforts to meet the compliance requirements of the department in establishing the single currency have witnessed drawbacks, such as the exit of the three Sahel states of Mali, Burkina Faso and Niger, who have proposed the establishment of a single currency for their new Alliance of Sahel States (AES).
The move by the the three states entails risks, with regards to their position within the West African Economic and Monetary Union (WAEMU) and ECOWAS.
The creation of a new currency represents a clear threat to the effectiveness of a wider regional economy. Experts say it could cause the fragmentation of existing economic blocs. In addition, the departure of the three countries could weaken the solidity of the WAEMU and ECOWAS in terms of economic and political influence.
Other issues presented in the department’s report included inclusive and sustainable development. In this area, the ECOWAS commission has also launched a process to develop a regional action plan on plastic waste management, aimed at enhancing environmental governance and capacity building.
The report detailed efforts to support pastoralism, including the vaccination of 392,260,925 livestock by mid-2024. Additionally, the commission has launched a project to access the Green Climate Fund, promoting climate-smart agriculture through sub-projects and climate-adapted technologies.
On food and nutrition security, efforts are being made to improve livestock feed availability through the Research and Innovation Project for productive, resilient and healthy agro-pastoral systems in West Africa (PRISMA). The commission has also developed a regional rice production roadmap to achieve self-sufficiency and held the first General Assembly of the Rice Observatory, bringing together over 150 stakeholders in the rice sector.
The report, covering activities from January to June 2024, highlights the need for continued efforts to advance community projects, with a significant focus on the single currency program.
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