The launch of the ECOWAS single currency, the ECO, has been pushed back to 2027, and while progress has been made, critical issues remain unresolved, according to Dr. Ibrahim Stevens, Governor of the Bank of Sierra Leone.

Speaking at the 46th Joint Ordinary Meeting of the Economic and Monetary Affairs Committee and the Operations and Administration Committee of WAMA in Freetown, Stevens highlighted challenges related to the Central Bank of West Africa (CBWA), including voting rights, hosting arrangements, and the Exchange Rate Mechanism.

The most significant obstacle, he emphasized, is achieving macroeconomic convergence among member states, with only one country projected to meet all primary criteria by 2025.

Stevens noted the diverse economic situations within ECOWAS, with some nations possessing stable external reserves while others struggle with unsustainable levels. He called for stronger policy commitment to the convergence process, citing the region’s challenges with tight financial conditions, inflationary pressures, and geopolitical uncertainties. Despite these headwinds, regional GDP growth is projected to reach 4.5% in 2024, driven by easing global financial conditions and mining sector performance.

Related News

Inflation remains a major concern, fueled by exchange rate depreciation and rising food and fuel costs. Stevens stressed the importance of fiscal responsibility and managing rising public debt. He acknowledged the global economic slowdown, with growth remaining below pre-pandemic levels due to geopolitical tensions, trade disputes, and tightened financial conditions.

However, Stevens offered a positive outlook for Sierra Leone, projecting 4.0% real GDP growth in 2024, driven by agriculture, mining, and the services sector. He highlighted the country’s significant success in curbing inflation, dropping from 54.6% in October 2023 to 13.8% in December 2024, thanks to prudent macroeconomic policies, exchange rate stability, lower global commodity prices, and increased domestic food production. The Bank of Sierra Leone aims to bring inflation to single digits in the medium term.

The Leone has remained relatively stable in 2024, strengthening monetary policy and reducing price volatility. Improving confidence in the foreign exchange market is expected to boost external reserves. Stevens assured that the Bank of Sierra Leone is prepared to take corrective measures to maintain financial stability.

While acknowledging global uncertainties, Stevens expressed cautious optimism about Sierra Leone’s ability to navigate these challenges through careful economic management. He emphasized the country’s proactive steps toward economic stability through prudent policies, strategic investments, and fiscal discipline, positioning Sierra Leone for a brighter future despite the hurdles facing the ECOWAS single currency.