ECOWAS reaffirms 2027 launch of ECO single currency

The Economic Community of West African States (ECOWAS) has reaffirmed its commitment to launching the long-awaited regional single currency, the ECO, in 2027 as part of efforts to strengthen economic integration and promote sustainable growth across the sub-region.

The commitment was announced in the final communiqué issued at the end of the 69th Ordinary Session of the ECOWAS Authority of Heads of State and Government held in Lungi, Sierra Leone.

Regional leaders described the proposed single currency as a key step toward boosting intra-regional trade, facilitating cross-border investment and advancing economic cooperation among member states.

According to the communiqué, the ECO will be introduced in phases, beginning with member countries that meet the agreed macroeconomic convergence criteria. Countries that are yet to satisfy the requirements will receive technical and structural support to help them qualify for subsequent phases of the monetary union.

To participate in the first phase of the rollout, member states are expected to maintain single-digit inflation, keep fiscal deficits below four per cent of Gross Domestic Product (GDP), limit central bank financing of government deficits to no more than 10 per cent of the previous year’s tax revenue, and maintain external reserves capable of covering at least three months of imports.

ECOWAS leaders also welcomed the successful registration of the name “ECO” with the African Intellectual Property Organisation (OAPI) and directed the ECOWAS Commission to pursue broader international trademark protection for the regional currency.

The renewed commitment comes after several postponements of the single currency project due to economic disruptions, rising inflation, security challenges and other regional and global developments that affected the readiness of member states.

Regional finance ministers and central bank governors stressed that sustained fiscal discipline and sound monetary policies remain essential to ensuring the successful implementation and long-term stability of the common currency.

Despite ongoing economic and geopolitical challenges facing the region, ECOWAS leaders said they remain committed to deepening regional integration through stronger institutions and shared economic policies.

The ECO project has long been viewed as one of ECOWAS’ flagship initiatives aimed at creating a unified monetary system, reducing transaction costs, promoting trade and enhancing economic competitiveness across West Africa.