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Tag: WAMZ

  • WAMZ pushes for debt relief, export boost for West Africa

    WAMZ pushes for debt relief, export boost for West Africa

    The West Africa Monetary Zone (WAMZ) has called on Nigerian and other West African governments to initiate negotiations for debt relief and concessional loans with external creditors.

    This plea comes as part of a broader strategy outlined in the Report of the 48th Meeting of the Committee of Governors (CoG) of the Central Banks of the WAMZ.

     Chairman of CoG, Mr. Yemi Cardoso, also the Governor of the Central Bank of Nigeria (CBN), delivered this report during the weekend their gathering in Abuja.

    WAMZ said the aim is to ease the burden of debt on these countries and ensure that any new loans acquired were project-based. It also recommended for the adoption of a framework to ensure this.

    Furthermore, governments in the sub-region are encouraged to enhance exports through value addition and import substitution industrialisation.These measures aim to bolster foreign exchange reserves and rationalise foreign exchange allocation for essential goods and services while addressing obstacles to adequate foreign exchange supply.

    In addition to economic strategies, the CoG proposed bilateral discussions between the CBN Governor and relevant stakeholders concerning the financial model Access Bank of Nigeria will adopt in its acquisition of Standard Chartered Bank branches in The Gambia and Sierra Leone.

    Expressing concerns over escalating insecurity in the ECOWAS region, the CoG also highlighted the issue of insecurity in the region, stating that it could reverse the progress made in terms of economic recovery and hinder the convergence process.

    Addressing the broader economic challenges, the CoG proposed stress testing to assess the financial sector’s vulnerability to climate change impacts. Furthermore, it recommended expediting the establishment of a Financial Stability Council within the WAMZ, comprising regulatory bodies such as Security and Exchange Commissions and Pension Regulators.

    On monetary policy, the WAMZ urged member-states to maintain a tight stance to manage inflation expectations and, ultimately, reduce inflation rates. Leveraging biometric systems and considering the adoption of the Global Standing Instruction (GSI) were also pointed out to enhance borrower identification and deter predatory lending practices.

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    To promote capital market development, initiatives such as revitalising stock exchanges, conducting investor education programmes, and incentivising domestic production were proposed. Investment in agriculture was highlighted as crucial for food security, diversification, and resilience against economic shocks.

    Furthermore, recommendations were made to strengthen tax administration, broaden the tax base, and enhance public-private partnerships for infrastructure development. Streamlining tax exemptions and formalising informal sector SMEs were identified as measures to boost revenue mobilisation and fiscal sustainability.

    The report also emphasised the importance of public-private partnerships in improving physical infrastructure and increasing domestic productive capacity.

    It called for the strengthening of tax administration and public financial management to boost revenue mobilisation and reduce fiscal deficits.

    The report also suggested streamlining tax exemptions and formalising small and medium-sized enterprises operating in the informal sector to broaden the tax base.

    Overall, the WAMZ is calling for coordinated efforts among West African governments to address debt burdens, boost exports, enhance financial stability, and promote economic growth and diversification. These measures are seen as crucial for the region’s economic development and stability.

  • Wale Edun elected chair of WAMZ Convergence Council

    Wale Edun elected chair of WAMZ Convergence Council

    • West African Countries fail to meet criteria for common currency

    Nigeria’ Wale Edun has been elected the Chair of the West African Monetary Zone (WAMZ) Convergence Council.

    He takes over from his Ghanaian counterpart in a critical role in the region’s journey towards a single currency, similar to the Euro in Europe.

    While Nigeria’s economy was projected to grow in 2023, Wale Edun the minister of Finance and Coordinating Minister for the Economy warned that this growth may not significantly improve living standards for most Nigerians.

    According to the Finance Minister, “the macroeconomic outlook for Nigeria in 2023 suggests that the country’s economic growth is not expected to significantly improve living standards or socio-economic indicators for a majority of the population.

    “Despite overall growth, many people may not see significant benefits due to existing structural challenges or inequalities within the economy. Addressing these issues is crucial to ensure economic growth translates into tangible improvements in living standards and socio-economic conditions for a broader segment of the Nigerian population,” he said.

    The government’s goal, he noted, is for economic growth to translate into real improvements in people’s lives, such as better jobs and reduced poverty.

    Nigeria, he told the West African gathering acknowledges the challenges it faces, but remains committed to leading the WAMZ Convergence Council.

    The country, he insisted, plans to achieve economic transformation through its National Development Plan and reforms in key sectors.  Additionally, factors like rising oil prices and coordinated economic policies are expected to contribute to a more stable economic environment.

    The WAMZ Convergence Council aims to create a single currency for West Africa.  Nigeria’s leadership role comes at a time when member countries are experiencing slow economic growth due to global factors.

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    Despite these hurdles, Nigeria is confident that member states can achieve their goals through smart planning, collaboration, and decisive action.  The country pledges its full effort to this regional initiative.

    A recent review by the Committee of Governors of the Central Bank of West Africa highlighted concerns.  No member country is currently meeting all the convergence criteria for a single currency, which could delay the launch of the planned ECO currency in 2027.

    These challenges include: Slow economic growth; Unstable food production and high reliance on imports; Rising inflation; Currency exchange rate issues.

    The West African Monetary Zone (WAMZ) Convergence is a framework established by a group of West African countries to work towards the integration and harmonization of their monetary and economic policies.

    The primary goal of WAMZ Convergence is to create conditions for the implementation of a single currency in the region, similar to the Euro in the European Union. This involves coordination in areas such as inflation rates, fiscal deficits, public debt levels, and exchange rate stability among member countries.

    By achieving convergence in these key economic indicators, the member countries aim to foster economic stability, facilitate trade, and promote sustainable growth within the West African region.

    Additionally, WAMZ Convergence serves as a step towards broader economic integration and cooperation among participating countries, ultimately leading to greater regional economic resilience and development.

    The report by the Central Bank Governors acknowledges the challenges member states face.  Policymakers were urged to find lasting solutions instead of quick fixes. Sharing successful strategies from different countries is seen as a key approach to overcoming these common obstacles.

    While Nigeria faces economic hurdles, it remains determined to lead the West African Monetary Zone towards a single currency.  By working together and addressing common challenges, the countries of West Africa can achieve greater economic stability and prosperity for all their citizens.

  • Wale Edun elected chair of WAMZ Convergence Council

    Wale Edun elected chair of WAMZ Convergence Council

    Nigeria’s Wale Edun has been elected Chair of the West African Monetary Zone (WAMZ) Convergence Council.

    He takes over from his Ghanaian counterpart, a critical role in the region’s journey towards a single currency, similar to the Euro in Europe.

    While Nigeria’s economy was projected to grow in 2023, Edun the Minister of Finance and Coordinating Minister for the Economy, warned that this growth may not significantly improve living standards for most Nigerians.

    According to him: “The macroeconomic outlook for Nigeria in 2023 suggests that the country’s economic growth is not expected to significantly improve living standards or socio-economic indicators for a majority of the population.

    “Despite overall growth, many people may not see significant benefits due to existing structural challenges or inequalities within the economy. Addressing these issues is crucial to ensure economic growth translates into tangible improvements in living standards and socio-economic conditions for a broader segment of the Nigerian population.”

    The government’s goal, he noted, is for economic growth to translate into real improvements in people’s lives, such as better jobs and reduced poverty.

    Nigeria, he told the West African gathering, acknowledges the challenges it faces but remains committed to leading the WAMZ Convergence Council. 

    The country, he insisted, plans to achieve economic transformation through its National Development Plan and reforms in key sectors.  Additionally, factors like rising oil prices and coordinated economic policies are expected to contribute to a more stable economic environment.

    The WAMZ Convergence Council aims to create a single currency for West Africa. 

    Nigeria’s leadership role comes at a time when member countries are experiencing slow economic growth due to global factors. 

    Despite these hurdles, Nigeria is confident that member states can achieve their goals through smart planning, collaboration, and decisive action.  The country pledges its full effort to this regional initiative.

    A recent review by the Committee of Governors of the Central Bank of West Africa highlighted concerns. 

    No member country is meeting all the Convergence criteria for a single currency, which could delay the launch of the planned ECO currency in 2027. 

    These challenges include: Slow economic growth; unstable food production and high reliance on imports; rising inflation; currency exchange rate issues.

    The West African Monetary Zone (WAMZ) Convergence is a framework established by a group of West African countries to work towards the integration and harmonization of their monetary and economic policies.

    Read Also: NLC to Fed Govt: let salaries, wages be commensurate with cost of living

    The primary goal of WAMZ Convergence is to create conditions for the implementation of a single currency in the region, similar to the Euro in the European Union. This involves coordination in areas such as inflation rates, fiscal deficits, public debt levels, and exchange rate stability among member countries.

    By achieving convergence in these key economic indicators, the member countries aim to foster economic stability, facilitate trade, and promote sustainable growth within the West African region.

    Additionally, WAMZ Convergence serves as a step towards broader economic integration and cooperation among participating countries, ultimately leading to greater regional economic resilience and development.

    The report by the Central Bank Governors acknowledges the challenges member states face. 

    Policymakers were urged to find lasting solutions instead of quick fixes. Sharing successful strategies from different countries is seen as a key approach to overcoming these common obstacles.

    While Nigeria faces economic hurdles, it remains determined to lead the West African Monetary Zone towards a single currency.  By working together and addressing common challenges, the countries of West Africa can achieve greater economic stability and prosperity for all their citizens.