The Eco Can Wait: Intra-African Trade First
ECOWAS's single currency project, named the eco, rests on strict convergence criteria. These are divided into two categories: four primary criteria and two secondary criteria. Primary criteria: ● Budget deficit: no more than 3% of GDP (grants included, on a commitment basis). ● Inflation rate: no more than 5% per year, with an average targeted in the low single digits. ● Central bank financing of the deficit: no more than 10% of the previous year's tax revenue. ● Foreign exchange reserves: covering at least three months of imports. Secondary criteria: ● Public debt: no more than 70% of GDP. ● Exchange rate variation: kept within a fixed, controlled margin. Yet to date, no ECOWAS country fully meets all of these conditions. Faced with this reality, heads of state have adopted a major shift in strategy: a phased rollout starting in 2027. Meeting on 19 July 2026 in Lungi, Sierra Leone, they confirmed that the eco will not launch simultaneously across all countries: imp...