By Dwomoh-Doyen Benjamin
The Economic Community of West African States (ECOWAS) has long been a beacon of regional economic integration and cooperation.
With its member states working together towards a common vision, ECOWAS has the potential to bring about real change and empowerment for the citizens of West Africa.
However, recent delays and setbacks have hindered the realization of critical initiatives, such as the introduction of a unified currency, the ECO.
It is time for ECOWAS to revive these initiatives and take proactive measures towards the betterment of Africa.
The ECO currency, proposed to replace the fragmented array of currencies within the region, held great promise for economic stability and growth.
However, it has stalled due to various challenges and concerns.
It is imperative that ECOWAS renews its commitment to this initiative, addressing the underlying issues and working towards its successful implementation.
The introduction of a common currency would facilitate intra-regional trade, attract foreign investment, and foster economic development, leading to higher standards of living for West African citizens.
Staggering Statistics
In 2021, intra-African trade accounted for only 15% of the continent's total trade, which was increased to around 20% in 2022 through initiatives like Africa Continental Free Trade Area (AfCFTA).
This figure is still significantly lower compared to other regional blocs such as the European Union, where intra-regional trade accounted for over 60%.
ECOWAS, with its diverse member states, has a unique opportunity to substantially increase this figure, spurring economic growth and reducing poverty.
A functioning ECO currency could significantly boost intra-regional trade by eliminating currency exchange hurdles.
To truly empower member states and strengthen democracy, ECOWAS must prioritize the implementation of proactive measures that promote transparency, accountability, and equal distribution of resources.
This approach will not only reduce corruption but also mitigate the potential for political and social unrest.
Corruption hampers economic growth, and erodes trust in public institutions. ECOWAS must take concrete steps to combat corruption.
One crucial step towards empowerment is for ECOWAS to develop alternative economic interventions.
Member states should not solely rely on external sources such as the International Monetary Fund (IMF) or World Bank for loans and bailouts.
ECOWAS can establish internal mechanisms to monitor the development of member states and provide specialized bailouts when necessary.
By so doing, ECOWAS would foster homegrown solutions to African problems, reducing dependency on foreign institutions and fostering self-reliance.
With a combined GDP of $734.8 billion, ECOWAS stands a better chance of bailing out its members when they are in economic distress instead of leaving them at the mercy of very high interest rate lenders.
Such proposed ECOWAS bailout of member states can be easily monitored by member states to reduce corruption related instances often reported in the media.
Brighter Future
In 2021, Africa's external debt was estimated at $644 billion, a significant portion of which consisted of loans from international financial institutions.
ECOWAS has the potential to shift the narrative by strengthening member states' economic stability and reducing the need for excessive external borrowing.
Furthermore, economic empowerment should extend beyond financial support. ECOWAS must prioritize investments in education, healthcare, and infrastructure, ensuring that member states have the tools needed to create sustainable development and address the challenges that their citizens face daily.
These investments will create job opportunities, combat unemployment, and alleviate poverty, leading to a thriving and prosperous West Africa.
Providing quality education and job opportunities is not only a social imperative but also a strategic move to harness the demographic dividend.
ECOWAS can lead the way by investing in human capital development and infrastructure, setting the stage for robust economic growth and job creation.
In addition to tangible initiatives, ECOWAS should actively work with regional governments to engage citizens in decision-making processes.
Regular town hall meetings, public consultations, and engagement with civil society organizations will ensure that the voices and concerns of the people are heard and acted upon.
People-Powered Progress
Empowering citizens to participate in governance is vital for fostering true democracy.
By actively involving the people in shaping policies and holding leaders accountable, ECOWAS can ensure that its initiatives align with the aspirations and needs of the West African population.
ECOWAS has the potential to be a catalyst for positive change in West Africa. To achieve this, it must quicken the ECO currency initiative, empower member states, and prioritize proactive measures over reactive action.
By investing in the well-being of its citizens, fostering true democracy, and reducing corruption, ECOWAS can create a region that is prosperous, stable, and self-reliant. Now is the time for ECOWAS to seize this opportunity and lead the way towards a brighter future for West Africa.
The author, Dwomoh-Doyen Benjamin, Executive Director-African Chamber of Content Producers.
Disclaimer: The viewpoints expressed by the author do not necessarily reflect the opinions, viewpoints and editorial policies of TRT Afrika.
