Guinea has become the first member of the Economic Community of West African States (ECOWAS) to formally opt out of the planned West African single currency, the eco, choosing instead to retain the Guinean franc.
The decision comes as ECOWAS advances plans for a phased rollout of the regional currency, scheduled to begin in July 2027.
At their summit last month, ECOWAS leaders agreed that only countries meeting key convergence benchmarks—including targets for inflation, public debt and monetary stability—would participate in the first phase of the eco’s implementation, while other member states could join later.
Guinean authorities, however, said adopting the eco at this stage would not be in the country’s economic interest. Officials pointed to Guinea’s limited domestic production capacity and the fact that nearly 80 per cent of its exports are destined for Asian markets as major reasons for retaining the national currency.
Economic analysts say the move reflects concerns that joining the monetary union prematurely could weaken Guinea’s economic flexibility and limit its ability to respond to domestic challenges.
“The country’s major trading partners lie outside West Africa, with about 80 per cent of its exports going to Asia,” economist Mohamed Camara told RFI. “By tying its currency to neighbouring states, Conakry risks losing certain levers of influence.”
Although Guinea is richly endowed with natural resources such as bauxite, gold and iron ore, the country remains heavily reliant on imports for food and manufactured goods, making policymakers cautious about surrendering monetary independence.
ECOWAS has spent more than two decades working towards a common currency aimed at boosting intra-regional trade, lowering transaction costs and strengthening economic integration across West Africa. The initiative also includes plans to establish a West African Central Bank and a unified regional monetary policy framework.
The regional bloc currently has 12 member states following the 2024 withdrawal of Burkina Faso, Mali and Niger, which formed the Alliance of Sahel States.
The ECOWAS Authority of Heads of State and Government is expected to meet again in December to determine which countries will qualify for the first phase of the eco and to finalise the governance structure of the proposed central bank.
Guinea’s decision is expected to feature prominently at the summit as regional leaders weigh the benefits of monetary integration against the economic realities of individual member states.
