The Economic Community of West African States (ECOWAS) comprises 15 nations located in the western region of the continent, including Benin, Burkina Faso, Cabo Verde, Ivory Coast, Gambia, Ghana, Guinea, Guinea Bissau, Liberia, Mali, Niger, Nigeria, Senegal, Sierra Leone, and Togo. Among these nations, 8 are Francophone, while five are Anglophone countries. The remaining two are Lusophone. ECOWAS was established as a peacemaker with the capacity to deploy joint military forces to intervene in member states facing political instability. As the dominant political entity in the region for years, ECOWAS frequently collaborates with states to address local challenges across various domains, including politics, economics, and security.
Examining the financial aspect of ECOWAS reveals its significant regional and global influence as a thriving commercial force. In 2022, export volumes of the 15 member countries reached $132 billion. Nigeria led the pack with $64.4 billion, followed by Ghana with $21.35 billion, Ivory Coast with $16.40 billion, Guinea with $11.42 billion, and Senegal with $5.72 billion. The remaining $14 billion came from exports by the other 10 member countries. Despite experiencing economic challenges in 2023, Nigeria remains the leading economy in ECOWAS by a considerable margin.
The Sahel region, particularly ECOWAS countries, has been grappling with significant internal upheavals in recent times. While the root cause may be political, the influence of financial factors cannot be overlooked. Military coups, changes in power, and heightened tensions in foreign politics are common repercussions of these crises. Mali, Burkina Faso, and Niger have experienced particularly tense political climates, resulting in substantial financial and reputational losses for these nations. Consequently, these three countries have made decisive shifts in their foreign policies, reducing their affiliations with Europe. They have minimized their ties with France, despite their historically close relationships, and have even discontinued the use of French as their official language. In a joint announcement, Mali, Niger, and Burkina Faso, which share a border in the Sahel region, have declared their intention to withdraw from ECOWAS. This regional organization is currently facing tensions and sanctions. The three countries expressed concerns in their statement, alleging that ECOWAS’s association with foreign powers and abandonment of its principles pose a threat to their security.
ECOWAS faced heightened tensions as a result of coups in Mali (2020), Burkina Faso (2022), and Niger (2023). As a result, ECOWAS imposed strict sanctions on Mali and Niger, intending to remove soldiers from their respective administrations. They also considered conducting a military intervention in Niger. Despite the imposition of sanctions and the decision to use military force, there has been no headway in civilians gaining control in all three countries.
The ongoing political problems in these countries have a direct negative impact on commercial and industrial operations in the region. The instability of regional politics and power issues hinder industrial capacity, strain foreign relations, and ultimately result in financial struggles for the local community.
As an individual well-versed in African trade, I observed that the coup in Niger had a significantly adverse effect on the Sahel region. The ongoing political contradictions in the country have had a major effect on Niger’s involvement in global and regional trade. This has created great uncertainty and insecurity. Due to bank closures and disrupted cash flow in global markets, numerous merchants were unable to fulfill their financial obligations. In a nutshell, the complexity of the situation gave rise to numerous paradoxes, ultimately jeopardising the cohesion of Ecowas.
Benin’s Cotonou port serves as the main point of entry for Niger’s imports, as the country does not have its own port. In light of recent political developments, the Benin government has decided to shut down its port for Niger’s transit passages, citing its strong alliance with France. This has resulted in all Niger cargo being rerouted to the port of Lome. A chaotic situation has led to the formation of countless container convoys, all striving to deliver goods to Niger amidst great difficulties and with the support of security corridors. Both importers and exporters are greatly affected by container hijacking and extortion, which frequently occurs during transportation from Lome to Niamey. The scarcity of goods in the country leads to certain products being sold on the black market, hiking commodity prices.
Ultimately, all of these negative instances are just a reflection of the stalemate that the Ecowas union is facing. Although countries such as Nigeria, Ghana, Ivory Coast and Senegal are trying to increase the rhythm of the union, the political power struggles in the Sahel region are dealing a blow to both the people of the region and the commercial stability of the region. Because, indeed, the Ecowas union has been the face of West African trade opening to the world and the primary operating engine for many years. Permanent instability in the union could cause more serious damage. My sincere wish is for peace to be restored in the region at the earliest opportunity. I also have high hopes for Ecowas to carry out its activities with even greater strength than before.
