ECOWAS leaders have moved to break a decades-long deadlock over the ECO, agreeing that West Africa’s planned single currency should begin with the countries ready to meet its rules rather than wait for the entire bloc to qualify at once. At a meeting in Sierra Leone, heads of state endorsed a phased model under which member states that satisfy the macroeconomic conditions will adopt the ECO first, while others will enter the monetary union once they meet the required thresholds.
For countries seeking to join the first stage, the benchmarks remain clear: inflation must be held to single digits, budget deficits must not exceed 4% of GDP, and central bank financing of government shortfalls must be capped at 10% of the previous year’s tax revenue.
The decision represents a significant turn in ECOWAS’ long-stalled effort to create a common currency. Earlier launch targets – including 2005, 2010, 2015, and 2020 – all slipped after member states were unable to satisfy the convergence criteria at the same time.
