West Africa’s Economy Faces Major Blow as Mali, Niger, and Burkina Faso Exit ECOWAS

West Africa Trade to Suffer as Mali, Niger, and Burkina Faso Exit ECOWAS

Supporters of the Alliance of Sahel States wave flags during a rally celebrating their exit from ECOWAS
Supporters of the Alliance of Sahel States (ASS) wave flags of Burkina Faso and Niger during a rally in Bamako. (Photo by OUSMANE MAKAVELI/AFP via Getty Images)

By Olivier Walther, University of Florida

ECOWAS Loses Three Key Members

The Economic Community of West African States (ECOWAS) has seen its membership shrink from 15 to 12 nations following the withdrawal of Niger, Mali, and Burkina Faso in February 2024. This move threatens regional trade integration and economic stability across West Africa.

Historical Context of ECOWAS

Founded in 1975, ECOWAS was established to create a unified trading bloc through economic cooperation among West African nations. Alongside its sister organization, the West African Economic and Monetary Union (UEMOA), ECOWAS has implemented policies to enhance intra-regional trade and global connectivity.

Despite these efforts, progress has been slow. West Africa remains one of the world’s most expensive regions for business, with intra-regional trade lagging behind other economic blocs. Political elites and informal trade networks have often hindered the implementation of trade facilitation initiatives.

Why the Sahelian Exit Matters

The Sahel region – comprising some of the world’s poorest nations – depends heavily on trade with coastal countries. Burkina Faso, Mali, and Niger primarily export agricultural goods and livestock to markets in the Gulf of Guinea while relying on these coastal nations for industrial imports.

With their exit from ECOWAS, these landlocked countries face:

  • Higher import costs due to tariff barriers
  • Reduced access to vital Gulf of Guinea ports
  • Potential collapse of formal trade networks

Economic Consequences for the Region

The withdrawal will likely:

  1. Boost informal cross-border trade, particularly between Niger and Nigeria
  2. Disrupt supply chains for essential goods in Sahelian countries
  3. Affect millions who depend on regional trade for livelihoods
  4. Impact coastal nations that rely on Sahelian agricultural products

Political Motivations Behind the Exit

The decision appears driven more by political than economic factors. ECOWAS has strict protocols against unconstitutional changes of government, having imposed sanctions on the military juntas now ruling these three nations. Their new Alliance of Sahel States (AES) represents a rejection of ECOWAS’ democratic governance standards.

Looking Ahead

While the AES may provide political alignment for the three nations, it cannot replace the economic benefits of ECOWAS membership. The coming months will reveal the full impact of this decision on regional trade patterns and economic stability in West Africa.

This article is republished from The Conversation under a Creative Commons license. Read the original article.

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