The departure of nations from Economic Community of West African States (ECOWAS) has presented a fresh challenge for the African Continental Free Trade Area (AfCFTA), a regional economic grouping.

Trade under AfCFTA regime started on January 1, 2021, following the agreement’s signing in March 2019.

According to economic commentators, the withdrawal of these nations would be detrimental to both the individual nations and the continent of Africa.

One of the four main regional blocs of the African Economic Community, which spans the continent, ECOWAS seeks to establish a single, sizable trading bloc in order to help its member states become collectively self-sufficient.

In order facilitate the flow of capital and natural persons, the AfCFTA seeks to establish both a single market for goods and services as well as liberalized market.

Additionally, it facilitates unrestricted trade in communities and services through the African continent.

Nigeria’s imports to Niger reached $33.4 million in 2022, while those to Mali reached $166,000 and those to Burkina Faso reached $40,000.

The three countries’ exit will hurt both parties because market size is a key factor in determining econmic growth.

Further more, it will hinder the sub-region’s ability to move people and non-human resources.

Other forms of social cooperation, such as informal trade, sports and cultural interaction, may suffer some setbacks due to the withdrawal, and the current governments in those nations will eventually give way to democratic leaders.

A unified statement from Mali, Niger and Burkina Faso was read aloud on Niger national television on Sunday, announcing their decision.

As the Sahel states fight to suppress insurgencies linked to Al-Qaeda and the Islamic State, the military chiefs of the three nations have stated that they want to restore security before holding elections.

The three nations are also participants in the eight-nation West African Monetary Union, which used the Euro-pegged West African CFA Franc as its unit of exchange.

Since Abuja has been seen as the primary barrier to the relaxation of sanctions, sentiments toward ECOWAS and especially its largest member, Nigeria, have soured, making the countries decision to leave not all surprising.

https://samsunblog.com/2024/01/29/ecowas-decline-puts-africa-free-trade-zone-in-jeopardy/