Unifying W’African with ECO
West Africa is a huge market of over 400 million people, but lingua franca, state boundaries have created many barriers. Chinedu Eze writes that the introduction of ECO currency may close the segmentation of a people bound by similar cultures and also boost the huge market in the sub-region
A fortnight ago, countries in West Africa hinted that they were at the verge of introducing the sub-regional currency, the ECO, which many believed would unify West African countries in the areas of trade and investments.
The plan to introduce ECO currency had almost tripped into coma before it was suddenly revived to rev the hope of actualising the major objective of building an economic community.
Finance Ministers and Central Bank Governors from the 15 Economic Community of West African States (ECOWAS), met and advanced plans to launch the single currency initiative, known as the ECO.
Reports indicated that the initiative was envisioned to propel economic growth and development throughout the West African sub-region, a plan that had since reviewed Nigeria’s endorsement.
The single currency is part of the features in the three-in-one identity cards planned by the National Identity Management Commission (NIMC) and set for roll-out by August.
A statement from the Ministry of Finance recently stated that Nigeria’s Minister of Finance and Coordinating Minister of the Economy, Mr. Wale Edun, emphasised the critical role the ECO would play in fostering economic growth and development in the region, further emphasising Nigeria’s unwavering commitment to its successful implementation.
The meeting marked a significant milestone on the path towards realising the ambitious goal.
Divisiveness
It has to be noted that the first sub-region in Africa to come together was the countries of West Africa under the ECOWAS. It was established by the Treaty of Lagos in May 1975 to promote economic trade, cooperation, and self-reliance. The organisation had the objective to harmonise agricultural policies and to facilitate the free movement of peoples, services, and capital between members.
Travelling through the first four states of Nigeria, Benin Republic, Togo and Ghana, showed that the idealism that whelped ECOWAS has remained elusive for almost 50 years that the sub-regional body was established.
Reports from the financial circles indicate that the introduction of the ECO would go a long way in bringing the sub-region together through trade, travel and reinventing the old cultural and ancestral affinities.
The Yorubas live between Nigeria and Benin Republic, the Ewe live between Togo and Ghana and so are the Akan community with estimated population of 20 million people that live in both Ghana and Ivory Coast, and they are the largest ethnic group in the two countries. There is also Gur Community that is distributed in Mali, Burkina Faso, Ghana, Togo, Ivory Coast and Benin.
Grueling Road Travel
In West Africa, there are people of similar cultures who are divided by colonial experience and colonial language. They have so much in common but they emphasise on what separates them because of nationhood and loyalty to their colonialists.
This is why travelling through West Africa by road has become such a torture. The diplomatic protocol involved in traveling by road is so cumbersome and grueling that travellers are treated with so much suspicion, as if they are criminals. Yet, more people travel by road than they do by air. Traveling by air across West Africa is simple without much procedure but it is not the same with travelling by road.
There is no rail line that connects any part of West Africa; unlike what obtains in Southern Africa and East Africa. So the main means of travelling across the West African sub-region is road, but because of the barriers to easy movement by road, trade among the nations of the sub-region is significantly curbed.
Recently at the 7th Accra Weizo, a West African travel expo on travel and tourism, speakers pointed out inhibitions to free market in the sub-region, which negates the principle of African Continental Free Trade Area (AfCFTA). There are many tourist destinations, including hotel and resorts along the Atlantic coast in many West African nations. There are beautiful tourism attractions, which are bewildering and amazing but they do not receive enough guests because of inhibitions on road travel across West African states.
The delays at the boundaries, the crude procedures and the covert hostility which a traveler must soften with bribes, leave many who travel by road frustrated. The state diplomatic policies seem to be atavistic to free movement, a system exacerbated by those who implement the rules, whom you must ‘wet their palms’ to thaw at their tough, unfriendly mien. Using one currency across the states in West Africa may ease these inhibitions.
Advantages of ECO
The matter is exacerbated by the fact that you have to change currency at every country you arrive and the value of the currency of each country is different from the other.
Ambassador Uko told THISDAY that part of the problems of travelling, tourism and trade is that you have to change currency on your arrival at every country, noting that the prevailing common currency across the sub-region is the naira and CFA franc.
According to him, ECO will solve the problem of transaction in the sub-region. Citizens across the countries can now trade with one currency, observing that this will enhance travel and tourism.
“You can now pay the bills in one currency in all the countries. It harmonises pricing, but the biggest advantage is ease of transaction. The challenge is always, how do I pay the man in Ghana, in Togo, in Benin Republic, but ECO will solve that challenge,” he said.
Importance of Numbers
The organiser of Accra Weizo, Ambassador Uko, during the event in Accra Ghana two weeks ago, noted that in trade, number is important. He remarked that with over 400 million people, West Africa could become economically empowered with free market and seamless travel.
“Numbers give a lot of power and we have the numbers. What we are trying to do is to get West Africa to operate as a domestic market. There is power in that. This year we decided to go further. We decided that the problem is not at the airport. The problem is at the land border. A lot of people are not privileged to fly like us, so they have to travel by road. So we decided to do a road trip across the four countries that are together, Nigeria, Benin, Togo and Ghana. We did four days road trip together. We don’t want to tell you the stories we met at the border. What happens in Benin stays in Benin. What happens in Togo stays in Togo.
“But it was an exciting experience having to travel with Ghanaian tour operators, Nigerian tour operators, Benin tour operators, Togo tour operators. And we found out that we are neighbors to Togo, but most Ghanaians don’t know Togo. And we discovered other borders, that Aflao is not the only border between Togo and Ghana. We ended up, we are looking for a new lee way, and we ended up at Shia border, right? And we have to enter through there. And the positive thing for me, that is one of the most pleasant borders I have seen in West Africa. It is different from the nightmare of other border posts. But that is the idea behind a seamless travel. Most of us that are friends, we do good business together, and everybody has grown by knowing the other people,” he said.
Ambassador Uko explained that if the governments of West African states encourage seamless travel by road, it would boost business interaction among the people of the sub-region; even if they are citizens of different countries. Such interaction, he posited, would diminish language barriers, create network among potential business partners and overall, increase trade and the ECO can make this come true.
“But if you deal with only Ghana, I assure you, you will only be rich in cedis. But if you deal with your neighbors, your brothers and everybody, even if you don’t make the money, the fact that we can all greatin French, we have acquired new friends. I never knew any tour operator from Togo, but now we have Togolese tour operators. We leave Lagos and we pass Benin, we pass Togo and we come all the way to Ghana. We never knew there were resorts in other places. We enjoyed ourselves at Casa de Papas report. We enjoyed ourselves at Blue Turtle resort. So, the man who never traveled has only probably read a page of the book of life. So if you are West African and you are in this room, and you have never been out of Ghana, can you raise your hand? We will laugh at you, but it will be fun. You are an African and God has given you a whole territory to explore. So, why waste your time in one little place? It is a whole territory under the sun. You don’t even need a visa to go to Ita Cheke in Cote d’Ivoire. And you can do it. And that is the vision in what we are doing today,” he further said.
Reports indicate that a single currency in West Africa can help address West Africa’s monetary problems, such as the lack of independence of central banks and non-convertibility of some currencies. Ultimately, a single currency and its associated regional institutions could also boost investor confidence and promote trade within the sub-region.
It will also enhance travel and create huge markets at the boundaries; just as tourists instead of travelling overseas would prefer to enjoy their holiday in the beautiful resorts along the Coast of Atlantic Ocean and beyond, as they would be spending the same ECO currency anywhere in the sub-region.
