by Nurat Uthman
In a blow to hard-fought regional integration, Burkina Faso, Mali and Niger, military-led nations that are among the world’s poorest, recently said they would quit the 15-member Economic Community of West African states, ECOWAS bloc after being criticized for their respective coups.
That has left uncertain the future of the junta-led nations in the regional West African Economic and Monetary Union, UEMOA or WAEMU, which uses a common currency, the CFA franc, pegged to the euro.
Asked whether Mali planned to leave UEMOA, Foreign Minister Abdoulaye Diop said, “Mali is withdrawing from ECOWAS but remains a member of UEMOA.”
Speaking separately about their decision to leave ECOWAS, Burkina Faso’s military leader Ibrahim Traore said a departure from the monetary union was on the cards.
“This means that in some time you will tackle the currency, which is the CFA?” journalist Alain Foka asked Traore in a video posted on his YouTube channel. “Probably,” he replied.
The three military governed nations have resisted ECOWAS’ and other outside pressure to restore democracy. They recently created a new pact known as the Alliance of Sahel States and declared their intention to strengthen political, economic and monetary unity.
Critics of the CFA franc see it as a relic of French colonialism while proponents say it has provided financial stability in a turbulent region.
Moody’s ratings agency said economic growth was at risk in the three nations.
“While not our baseline expectation, an exit from WAEMU would be much more detrimental to sovereigns leaving the monetary union because of the credit support that WAEMU membership provides in terms of macroeconomic stability and reduced external vulnerability,” Moody’s said.
The ECOWAS region’s trade and services flows are worth nearly $150 billion a year.
