More than 30 years after it was first conceived, the idea of a single West African currency—the Eco—remains a powerful symbol of economic sovereignty, though its path to reality has been constantly delayed.
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The initial promise of a 2020 rollout has long passed, hampered by economic disparities, fiscal challenges, and political disagreements. As of mid-2025, the Economic Community of West African States (ECOWAS) has set its latest target launch date for the Eco as 2027.
The Symbolic Defeat of the CFA Franc
The most significant effect of the Eco’s eventual adoption will be the end of the CFA franc, the currency used by eight of the 15 ECOWAS member states (Benin, Burkina Faso, Côte d’Ivoire, Guinea-Bissau, Mali, Niger, Senegal, and Togo).
Seen by many as a relic and a strategic tool of French neocolonialism, the CFA franc’s continued existence has been a flashpoint for debate. For over 50 years after nominal independence, France maintained a tight grip:
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Monetary Control: The French Finance Minister effectively influenced the amount of CFA francs in circulation and its exchange rate.
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Reserve Requirement: CFA zone central banks were required to deposit 50% of their currency reserves (recently estimated at around $20 billion) into the French Central Bank, often subject to negative interest.
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Printing Location: CFA notes and coins were historically printed in France.
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Fixed Peg: The CFA’s peg to the euro guaranteed monetary stability and very low inflation compared to other African currencies, but it restricted local central banks’ ability to independently adjust the money supply to match economic growth, limiting access to investment capital for local businesses.
In 2019, France and the West African Economic and Monetary Union (UEMOA) countries did agree to reforms, including changing the currency name from the CFA franc to the Eco for the UEMOA zone, abolishing the reserve deposit obligation, and removing France from decision-making bodies. However, the fixed peg to the euro remained, leading critics to dismiss it as largely a symbolic change. The adoption of the ECOWAS-wide Eco is intended to finally achieve full monetary independence.
The Delayed Roadmap: 2027 Target
Despite the renewed commitment from ECOWAS Heads of State, the rollout is continuously postponed because member states struggle to meet the strict convergence criteria necessary for a stable monetary union.
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Key Convergence Criteria:
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Inflation Rate: Less than 5%.
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Budget Deficit: Less than 3% of GDP (some variations mention 4%).
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Foreign Reserves: Must cover at least three months’ worth of imports.
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Central Bank Deficit Financing: No more than 10% of the previous year’s tax revenues.
As of 2025, no single ECOWAS member state consistently satisfies all the primary criteria. Furthermore, the political landscape is adding complexity, notably with the recent withdrawal of the Alliance of Sahel States (Burkina Faso, Mali, and Niger) from ECOWAS, which introduces geopolitical and economic uncertainty for the single currency project.
The New Dominance Concern
For the romantics, the Eco represents a decisive victory over French influence. However, a new practical concern has emerged: the potential for Nigerian dominance.
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Nigeria represents an estimated two-thirds of the total GDP and about half of the total population of the entire ECOWAS region.
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Commentators fear the Eco zone will be dominated by Nigeria’s economy in a manner that could potentially overshadow the smaller member states, much like Germany’s influence in the Eurozone.
This tension is compounded by Nigeria’s preference for a flexible exchange rate regime (as opposed to the Euro-pegged fixed rate initially proposed by the Francophone countries), which remains a key hurdle for integrating the region’s largest economy.
Despite the risks, the core economic rationale for the Eco is sound: to boost intra-regional trade from its current low of around 10% to 20% or even 30% over the next decade, enhancing economic growth and integration across West Africa.
The latest plan is to launch the Eco in 2027, possibly with a “gradual approach” that allows countries meeting the criteria to launch first, without waiting for all 15 members. The coming years will be critical in determining whether West Africa can finally achieve the monetary independence and regional cohesion it has sought for decades.