The Challenges of Adoption of Eco Single Currency among ECOWAS Member-States

Abstract

The Economic Community of West African States, ECOWAS, had an agreement to adopt the
Eco as its single currency for the fifteen member-states of the West African Sub-regional
organization. This major objective has failed to materialize after a long period of time. This
paper, therefore seeks to highlight the major challenges confronting the Eco currency project.
Data were collected from secondary sources, using content analysis. The paper of discusses the
challenges facing the proposed Eco single currency in West Africa, discusses the theoretical
framework of monetary integration using Mundell’s factors of Mobility Theory and Mundell’s
Optimum Currency Area Theory applied. Based on the findings, Some of the challenges facing
the proposed Eco currency in ECOWAS include lack of political will, influence of France on its
former territories in West Africa, membership of multiple regional blocs by member states of
ECOWAS and fear of domination of the smaller states in the bigger ones. Other challenges
include; security and political challenges, inadequate legal instruments to enforce treaty
obligations, inadequate modern infrastructure among others. To make this proposed Eco
currency a success, the paper suggests that West Africa Monetary Zone member states must take
concrete action by showing political will towards the creation of Eco currency area in West
Africa. There should be clearly spelt out benefits and costs accruing to each member state in the
proposed Eco community currency area. All member states of ECOWAS must be treated as
equal partners.