By Nkiruka Nnorom with agency report
Guinea has become the first member of the Economic Community of West African States (ECOWAS) to formally opt out of the planned West African single currency, the eco, opting instead to retain its national currency, the Guinean franc.
The decision comes as the regional bloc moves toward a phased rollout of the monetary union, scheduled to begin in July 2027.
Last month, ECOWAS leaders agreed that only countries meeting convergence criteria on inflation, public debt and monetary stability would participate in the first phase of the eco’s implementation, while other member states could join later.
However, Guinean authorities said adopting the single currency at this stage would be detrimental to the country’s economy.
Officials cited Guinea’s weak domestic production base and the fact that about 80 per cent of its exports are destined for Asian markets as key reasons for declining to participate in the 2027 launch.
Analysts say the decision reflects concerns that joining the monetary union without adequate productive capacity could constrain economic growth and reduce policy flexibility.
“The country’s major trading partners lie outside West Africa, with about 80 per cent of its exports going to Asia,” economist Mohamed Camara told RFI. “By tying its currency to neighbouring states, Conakry risks losing certain levers of influence.”
Although Guinea is rich in natural resources, including bauxite, gold and iron ore, it remains heavily dependent on imports for food and manufactured goods.
ECOWAS has spent more than two decades pursuing the launch of a single currency to promote intra-regional trade, reduce transaction costs and deepen economic integration across West Africa.
The bloc is now targeting July 2027 for the eco’s launch under a phased implementation plan. The initiative also includes the establishment of a West African Central Bank and a new framework for regional monetary policy.
ECOWAS currently comprises 12 member states following the withdrawal of Burkina Faso, Mali and Niger, which exited the bloc in 2024 to form the Alliance of Sahel States.
The ECOWAS Authority of Heads of State and Government is expected to meet again in December to address outstanding issues, including the list of countries eligible for the first phase of the eco and the governance structure of the proposed central bank.
Guinea’s decision is expected to feature prominently at the summit as regional leaders weigh the benefits of monetary integration against individual countries’ economic realities.
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