There are indications that Burkina Faso, Mali, and Niger Republic may potentially isolate themselves from the $702 billion regional economy with their decision to withdraw membership of the Economic Community of West African States (ECOWAS).
The decision, termed as a “silly own goal” by FIM Partners, Charlie Robertson, could have dire consequences for the trio, exposing them to increased tariffs and restrictions on trade.
The landlocked and economically challenged countries, with a per-capita GDP of less than $1,000, risk worsening the prevalent food insecurity and further destabilizing their already fragile economies. The exit would also mean losing access to markets like Nigeria and Ghana, which contribute significantly to the ECOWAS GDP.
The joint statement by the military leaders of Burkina Faso, Mali, and Niger emphasized a departure from the ideals of ECOWAS’ founding fathers and pan-Africanism.
This move may weaken the regional economic bloc’s contribution to the African Continental Free Trade Area and potentially reduce its $277.22 billion trade with the rest of the world.
While the International Monetary Fund’s chief economist, Pierre-Olivier Gourinchas, acknowledged the early stage of assessing the impact, he noted the general belief that an integrated economic area fosters trade and growth. The IMF is closely monitoring the situation, expressing concerns about moving away from such integration.
As the international community watches, the ECOWAS exit raises questions about the future of regional cooperation and economic stability, with potential ramifications on the already complex geopolitical landscape in West Africa.
Burkina Faso, Mali, Niger Risk Exclusion From $702bn Market With Exit From ECOWAS
This is amid food insecurity and fragile state of the three countries' economies.
Latest from Africa
AfDB Announces $1.44 Billion Investment To Support Nigeria’s Infrastructure Development
The African Development Bank (AfDB) has committed $1.44 billion to boost Nigeria’s infrastructure. This investment will target the energy, power, transport, water, and sanitation sectors, as announced at the Nasarawa Investment Summit
South Africa’s Court Bars Jacob Zuma From May 29 Parliamentary Election Over Criminal Conviction
In a landmark ruling on Monday, South Africa’s highest court, the Constitutional Court, has barred former President Jacob Zuma from contesting a seat in Parliament in the upcoming national election. The court’s
Business Diplomacy And Africa’s Development
From May 16 to 17, over 2,000 of Africa’s business leaders, investors, policy makers and political leaders as well as their counterparts from around the world met in Kigali, Rwanda under the
Tinubu, Faye Call For Regional Unity In West Africa To Tackle Challenges
President Bola Tinubu of Nigeria and President Diomaye Faye of Senegal have underscored the urgent need for cohesive regional cooperation in West Africa. The leaders met at the State House to discuss
Djibouti Forum 2024: Unveiling Economic Potential Sparks Global Interest
The inaugural Djibouti Forum concluded on a high note, igniting optimism among investors worldwide. Attended by nearly 400 delegates, including heavyweight institutional investors overseeing $2.5 trillion in assets, the event showcased Djibouti’s
Follow Us