Understanding the Eco

The Eco represents a significant step towards a more integrated West African economy. Approved by ECOWAS leaders on 29 June 2019, the currency aims to simplify trade and create a cohesive economic environment among member states. Initially scheduled for launch in 2020, the Eco’s rollout has been delayed due to economic disparities, fiscal challenges, and political disagreements among member states.

READ ALSO: ECOWAS Bank’s $16.3M Credit Boosts Africa’s SME Sector

The rollout is planned in two phases. The first phase will see the West African Monetary Zone (WAMZ)—comprising The Gambia, Ghana, Guinea, Liberia, Nigeria, and Sierra Leone—adopt the Eco. The second phase involves merging the Eco with the CFA franc, currently used by the eight French-speaking nations within the West African Economic and Monetary Union (UEMOA). This transition is intended to grant UEMOA countries full fiscal and monetary independence from France while promoting deeper regional economic integration.

In June 2021, ECOWAS Heads of State reaffirmed their commitment to launching the common currency by 2027. This timeline was reiterated in September 2023 as part of broader efforts to unify the region’s payment system, attract foreign direct investment (FDI), promote price stability, and simplify cross-border transactions.

Challenges to the Eco’s Launch

Since its inception, the Eco project has faced numerous obstacles. One of the most significant is the recent withdrawal of the Alliance of Sahel States—comprising Burkina Faso, Mali, and Niger—from ECOWAS following sanctions imposed in response to military coups. This withdrawal, ratified by the ECOWAS Council in January 2025, adds a layer of complexity to the project. However, some analysts suggest that their departure may expedite the Eco’s implementation by removing certain political and economic hurdles that have historically impeded progress.

Economic difficulties in leading nations such as Nigeria and Ghana, characterised by double-digit inflation and soaring public debt, further complicate the situation. According to Wale Edun, Nigeria’s Minister of Finance and Coordinating Minister of the Economy, achieving the Eco currency depends on enhanced monetary and fiscal discipline across all member states. He emphasised that security concerns, inflationary pressures, and global economic disruptions remain critical challenges that must be addressed as part of the roadmap to economic convergence.

A Strategic Opportunity for Regional Stability

Despite these setbacks, ECOWAS leaders view this moment as an opportunity to shape the region’s economic future. The Eco is expected not only to unify the economic landscape of West Africa but also to instil a sense of stability that could attract more foreign investment. Enhanced cooperation through fiscal discipline and collective decision-making could elevate the region’s economic standing on the global stage, making it more resilient to external shocks and internal disruptions.

Minister Edun also highlighted the importance of ongoing engagements with international partners, notably pointing to South Africa’s G20 presidency as a strategic opportunity to align West Africa’s economic agenda with broader African objectives. This could help catalyse further support and collaboration needed for the successful launch of the Eco.

As West Africa navigates the complexities of launching the Eco currency, it is clear that the journey towards economic integration is fraught with challenges but also rich with possibilities. The successful implementation of the Eco could mark a revolutionary shift in how trade and finance operate in the region, fostering greater unity and resilience in an increasingly interconnected world. To realise the full potential of their shared economic future, ECOWAS member states must work collaboratively and remain committed to their long-term vision.

The post ECOWAS Currency: Paving the Way for Economic Integration in West Africa appeared first on African Leadership Magazine.

Africa’s economic dynamism has made it a pivotal player in the Global South coalition. Recent initiatives, such as South Africa’s presidency of the G20, have positioned the continent as a bridge between emerging markets and established economic powers. The Development Bank of Southern Africa underscores the significance of these efforts, noting that African nations are championing dialogues on sustainable development, climate change, and equitable trade practices.

READ ALSO: Celebrating Dr. Ken Giami: A Visionary Leader Bridging Global South-South Cooperation

Economic Transformation

Africa’s evolution from resource dependency to innovation-led economies symbolises a remarkable paradigm shift. Countries like Kenya, Nigeria, and Senegal have become tech hubs, hosting start-ups that address local challenges with global implications. For instance, Kenya’s M-Pesa platform revolutionised financial inclusion, inspiring digital payment systems worldwide. Meanwhile, Nigeria’s fintech industry has attracted over $600 million in investment annually, according to McKinsey & Company.

Agriculture, long the backbone of African economies, is undergoing a renaissance driven by technology. Smart farming techniques and agri-tech innovations have increased productivity and bolstered food security. Rwanda’s efforts to digitise farming practices have resulted in a 25% increase in crop yields since 2020, illustrating how technology can revolutionise traditional sectors.

Infrastructure remains the lifeblood of Africa’s economic growth. The African Union’s Agenda 2063 underscores ambitious projects like the African Continental Free Trade Area (AfCFTA), aimed at integrating a market of 1.4 billion people. The AfCFTA, expected to increase intra-African trade by 52% by 2025, reflects the continent’s commitment to creating a unified economic bloc.

Flagship infrastructure projects, including Ethiopia’s Grand Renaissance Dam and Senegal’s Dakar-Diamniadio Toll Highway, symbolise Africa’s determination to overcome logistical challenges and harness its natural resources effectively. According to the African Development Bank, investments in infrastructure could add up to 2% to Africa’s annual GDP growth by 2030.

Harnessing the Power of Partnerships

Africa’s collaboration with other Global South nations has amplified its voice in international forums. Partnerships with China, India, and Brazil have driven investments in renewable energy, technology, and manufacturing. China alone has committed over $300 billion in infrastructure projects across Africa, while India’s trade with the continent exceeded $90 billion in 2023.

The growing emphasis on South-South cooperation is reshaping the geopolitical landscape, enabling Africa to negotiate better terms for trade and investment. Initiatives like the India-Africa Forum Summit and the Forum on China-Africa Cooperation have reinforced this dynamic, fostering mutual growth.

Challenges on the Horizon

While Africa’s ascent is noteworthy, challenges persist. Climate change, political instability, and inadequate access to education and healthcare remain formidable barriers. The continent’s youthful population, while a potential asset, also poses a risk if job creation does not keep pace with demographic growth.

Corruption and bureaucratic inefficiencies continue to hinder progress. According to Transparency International, Africa loses an estimated $50 billion annually to illicit financial flows, funds that could otherwise be channelled into development initiatives.

A Vision for 2030 and Beyond

To sustain its momentum, Africa must adopt a multi-faceted approach:

Investing in Education and Skills Development: Empowering its youth with relevant skills can transform Africa’s demographic bulge into a dividend. Initiatives like Rwanda’s coding academies and Nigeria’s tech hubs are steps in the right direction.

Accelerating Green Growth: Africa holds 60% of the world’s solar energy potential. Countries like South Africa and Morocco are already leading the charge with large-scale renewable energy projects. By harnessing this potential, Africa can not only achieve energy security but also lead global efforts in combating climate change.

Strengthening Governance and Transparency: Addressing corruption and fostering institutional reforms are crucial for attracting foreign investment and ensuring equitable distribution of resources.

Africa’s New Dawn

Africa’s journey to becoming the vanguard of the Global South is not just a tale of economic growth but a testament to its resilience, innovation, and ambition. Like the Baobab tree, deeply rooted yet reaching skyward, Africa’s economic renaissance symbolises strength, adaptability, and boundless potential.

As the continent continues to write its growth narrative, it serves as an inspiration for the Global South, proving that sustainable development is not just a goal but an achievable reality. The world is watching as Africa leads the way—not as a follower, but as a trailblazer.

The post Africa’s Economic Growth Leading the Global South appeared first on African Leadership Magazine.

“We will use this moment to bring the development priorities of the African continent and the Global South more firmly onto the agenda of the G20,” Ramaphosa said.

The presidency, which begins on 1 December 2024, signifies South Africa’s rising prominence in global diplomacy and its capacity to shape global discussions on pressing issues.

READ ALSO:http://Africa’s G20 Membership: Gain or Mere Symbolism?

The G20 and Africa’s Place in It

The G20, established in 1999, was created to bring together the world’s major economies to address global economic challenges and promote international financial stability. South Africa joined the G20 that same year, representing the interests of Africa in a group primarily dominated by wealthier nations. Its membership symbolised a recognition of Africa’s growing economic significance and the need for more diverse representation on global platforms.

Over the years, South Africa has played a crucial role in advocating for equitable policies that benefit the Global South. Now, as it assumes the presidency, South Africa steps into a leadership role, bringing Africa’s priorities to the forefront of the global agenda.

Handover from Brazil to South Africa

The transition from Brazil to South Africa occurred at the G20 Leaders’ Summit in Rio de Janeiro. President Cyril Ramaphosa, in his acceptance speech, underscored the importance of this historic moment, highlighting Africa’s potential as a contributor to global solutions. “South Africa’s G20 Presidency is not only a testament to our nation’s capabilities but also a beacon of hope for the entire African continent,” he stated.

The handover reflects a symbolic shift towards greater inclusion of emerging economies in global governance. Under Brazil’s presidency, the G20 focused on sustainable development, combating hunger, and fostering partnerships. South Africa has vowed to build on this foundation while amplifying Africa’s unique challenges and opportunities on the global stage.

Priorities of South Africa’s G20 Presidency

President Cyril Ramaphosa announced that South Africa has adopted the G20 Presidency theme of ‘Solidarity, Equality, and Sustainability,’ focusing on advancing the Sustainable Development Goals (SDGs) and the Pact for the Future.

He emphasised the urgency of achieving the SDGs by 2030, noting that solidarity is vital, especially in addressing the hardships faced in conflict zones like Gaza, Sudan, and Ukraine. The presidency will also prioritise public health concerns, including pandemics and the worsening m-pox outbreaks in Africa, urging global cooperation and action to protect vulnerable communities.

The President highlighted the critical need to tackle inequality, which threatens global stability and economic growth. He drew attention to unjust disparities in wealth, the lack of sustainable financing for climate action, and the crippling debt burden that undermines developmental goals in many countries. South Africa’s leadership will ensure that Africa’s development priorities and the Global South’s agenda take centre stage, addressing issues like debt relief and capacity building for sustainable development.

South Africa’s G20 Presidency will advance three high-level priorities: inclusive economic growth, Industrialisation, employment and inequality; food security; and artificial intelligence and innovation for sustainable development. Approximately 130 G20 meetings will be hosted across the nation, fostering collaboration with member countries, multilateral institutions, and invited guests to shape a transformative agenda for the year ahead.

A Voice for Africa

President Ramaphosa has reiterated that South Africa’s presidency is not just a national victory but a milestone for Africa as a whole. The presidency provides a platform to showcase African solutions to global problems, reinforcing Africa’s role as a partner rather than a beneficiary in international affairs.

South Africa’s role is to ensure that African issues, from food insecurity to technological innovation, are prioritised. Ramaphosa emphasised, “This presidency will serve as a clarion call for global solidarity in solving the most pressing challenges of our time.”

South Africa inherits a complex global landscape marked by economic disparities, geopolitical tensions, and climate crises. Balancing these issues while ensuring Africa’s interests are not overshadowed will be a delicate act. However, with its deep ties to both the Global South and the Western world, South Africa is uniquely positioned to mediate and advocate for balanced outcomes.

South Africa’s presidency of the G20 marks a transformative chapter in the continent’s history. For the first time, an African country will lead one of the world’s most influential economic forums. As the nation takes the reins, it carries the hopes of a continent eager to demonstrate its leadership on the global stage.

The post South Africa Assumes G20 Presidency appeared first on African Leadership Magazine.

In September 2023, the African Union (AU) was granted a permanent seat at the prestigious G20 table. This achievement signals Africa’s readiness to influence global priorities and engage in international discussions on critical challenges like climate change, debt relief, and equitable taxation. But, does this development promise transformative gains, or is it merely a symbolic gesture?

The Long-Awaited Seat

For decades, Africa’s voice in global economic affairs has been overshadowed by the dominance of larger economies. With its permanent membership in the G20, Africa finally has a platform to engage with the world’s most powerful economies.

READ ALSO:http://COP29: Africa’s notes from Baku

Representing over 1.4 billion people and 54 nations, the AU’s inclusion grants the continent an opportunity to advocate for fairer financial reforms. At the 2024 G20 Summit in Rio de Janeiro, African leaders highlighted issues central to their citizens, including debt restructuring and climate finance. This hints at a future where Africa not only participates but takes a leading role in shaping the global agenda. As South Africa’s President Cyril Ramaphosa eloquently stated at the summit’s closing ceremony: “The inclusion of the African Union as a permanent member of the G20 signals a significant moment in our continent’s history. It affirms the importance of Africa’s voice in tackling global challenges and advancing shared prosperity.”

With South Africa as the only individual G20 member from the continent, this new role also serves as a precursor to its presidency of the G20 in 2025.

Symbolism or Substance?

Does this G20 membership a genuine leap forward, or is it a decorative accolade? Critics argue that the G20 has historically prioritised consensus over action, raising doubts about the practical outcomes of Africa’s inclusion.

Nevertheless, it is true symbolism that matters. For Africa, being part of the G20 is more than just optics—it’s about rewriting the narrative of exclusion and showing the world that the continent has the capacity to drive change.

Nigerian President Bola Ahmed Tinubu captured this sentiment during his G20 address, saying:

“Our invitation to the G20 is a signal that Africa has transitioned from being a side character in the story of the world to becoming one of its lead actors. We are here to contribute meaningfully to solutions, not just to partake in discussions.”

A Rising Tide or a Gentle Ripple?

The African Union’s presence at the G20 provides a stronger platform to address urgent issues like debt sustainability. As of 2024, Africa holds over $700 billion in external debt, with nations like Zambia and Ghana navigating tumultuous debt restructures. Through the G20, African leaders are pushing for debt relief frameworks that alleviate long-term economic burdens.

Additionally, Africa’s vulnerability to climate change has made climate finance a rallying cry. Leaders like South Africa’s President Cyril Ramaphosa have called for the fulfilment of the $100 billion annual climate finance pledge, which remains a distant promise. President Tinubu emphasised this in Rio, urging the G20 to take decisive action: “For too long, the burden of debt has crushed our dreams. Debt relief must go beyond restructuring; it must be a pathway to sustainable development, allowing us to focus on building industries, educating our people, and addressing poverty.”

The G20’s recent debt suspension framework offers some hope, but African leaders will need to ensure that such policies lead to tangible outcomes.

South Africa’s G20 Presidency

South Africa’s upcoming G20 presidency in 2025 presents a golden opportunity to champion Africa’s agenda on the global stage. As the only African nation to hold individual G20 membership, South Africa will focus on poverty eradication, tackling inequality, and ensuring fair energy transitions. President Ramaphosa laid the groundwork for this vision in Rio, saying:

“South Africa’s presidency of the G20 will focus on the needs of the Global South, ensuring that Africa’s priorities are at the forefront of the international agenda. Together, we can build a more equitable and sustainable world.”

A Seat at the Table

Africa’s inclusion is a cause for celebration, but it comes with the weight of responsibility. While Nigeria was invited as an observer to the 2024 Summit, this limited participation highlights the need for coordinated leadership. Africa must arrive at the G20 with unified strategies that translate aspirations into actionable plans.

President Tinubu’s call to action serves as a reminder of what is at stake:

“Africa must rise as a united force, not as a fragmented collection of states. This is our moment to rewrite the rules of engagement and demand a fairer global order.”

Turning Symbolism into Reality

Africa’s G20 membership is not an endpoint; it is the beginning of a journey. The challenge lies in ensuring that this symbolic victory translates into real, measurable progress. From equitable trade policies to innovative solutions for energy transitions, Africa’s leaders must use this platform to drive a renaissance that benefits not just the continent but the world. In the words of President Ramaphosa: “The future of Africa is the future of the world. Together, we will chart a path to shared prosperity, leaving no one behind.”

Africa’s G20 membership is both a symbolic victory and a stepping stone toward tangible gains. While challenges abound, the continent now has the stage to amplify its voice and steer the global narrative. Whether this new role will translate into real, measurable outcomes depends on Africa’s ability to capitalize on this historic opportunity.

As the world watches, Africa must transform its symbolic seat into a powerful platform for change, proving that the giant has not just woken but is ready to lead.

The post Africa’s G20 Membership: Gain or Mere Symbolism? appeared first on African Leadership Magazine.

During the Delhi Summit, the AU’s formal recognition within the G20 aligns it as a primary continental representative in global economic affairs. This elevation positions the AU alongside the European Union as the only regional blocs with full membership status, signifying Africa’s growing influence in shaping global economic policies.

Moussa Faki Mahamat’s proactive engagement and leadership at G20 events reinforce the AU’s vital role and highlight Africa’s representation in global platforms. Prime Minister Narendra Modi’s invitation, symbolising the commitment to empower voices from the Global South, celebrates the AU’s inclusion within the G20, amplifying its potential to fortify both the group and the collective voice of the Global South.

The groundbreaking decision sets the stage for critical discussions on global issues like increased loans to developing nations, debt restructuring, cryptocurrency regulations, and geopolitical influences on food and energy security.

The G20’s inclusion of the African Union marks a significant shift in global economic governance, expanding representation to encompass around 85% of global GDP, over 75% of global trade, and approximately two-thirds of the world’s population.

Africa’s permanent membership acknowledges the continent’s economic relevance and growing global role, providing a platform to address critical issues like infrastructure, debt relief, trade, investment, and climate resilience.

The AU’s G20 involvement propels Africa’s voice in international discussions, fostering collective action for sustainable development, economic prosperity, and equitable global integration.

Contact: King Richard, Head of Editorial at African Leadership Magazine; king.richards@africanleadership.co.uk

The post Moussa Faki Mahamat’s key role; AU’s G20 Membership Impact and the African Influence appeared first on African Leadership Magazine.

The two-day event was attended by ministers, the military, and representatives of international organizations.

“Africa must make an effort on its own security. There must be African solidarity first before calling for foreign solidarity. Then we have to focus on the training of people, Africa’s primary capital. We must take care of the youth”, G5 Sahel defence and security expert, general Mohammed Znagui Ould Sid’Ahmed Ely said.

Senegalese President Macky Sall, the current Chairperson of the African Union, spoke at the opening ceremony of the event, which he hopes will support Africa’s bid for a permanent seat on the G20 and the UN Security Council.

“For us, it is important that Africa positions itself, first of all in terms of multilateralism, Africa needs to be like a giant, and to be considered at the table of the Security Council and to have the right of veto if necessary”, affirmed Bineta Diop is the African Union’s special envoy for Women, Peace, and Security.”

The post Dakar International Forum Focuses On Security Challenges appeared first on African Leadership Magazine.

By Ju-min Park

North Korea fired three ballistic missiles into the sea off its east coast on Monday, South Korea’s military said, as the leaders of the Group of 20 major economies held a summit in China, the North’s main diplomatic ally.

The missiles were fired from a region south of the capital Pyongyang just after noon local time (0300 GMT) and flew about 1,000 km (600 miles), hitting Japan’s air defense identification zone, the South’s Office of the Joint Chiefs of Staff said.

“We are still analyzing details but this is a grave threat to our nation’s security, and we express deep concern,” the Japan Defence Ministry said in a statement.

The missile launches were the latest in a series of launches by the isolated North this year in violation of U.N. Security Council resolutions, supported by China, that ban all ballistic missile-related activities by the North.

Pyongyang rejects the ban as infringing its sovereign right to pursue a space program and self defense.

A passenger watches a TV screen broadcasting a news report on North Korea firing three ballistic missiles into the sea off its east coast, at a railway station in Seoul, South Korea, September 5, 2016. REUTERS/Kim Hong-Ji

Shortly after the missile launches, South Korean President Park Geun-hye and Japanese Prime Minister Shinzo Abe met on the sidelines of the G20 summit and agreed to cooperate on monitoring the situation, a Japanese statement said.

The South’s military said the missiles were medium-range Rodong-class, launched as a show of force timed to coincide with the G20 summit.

In 2014, the North fired two Rodong medium-range missiles just as Park and Abe were meeting U.S. President Barack Obama at the Hague to discuss responding to the North’s arms program.

The latest missiles were launched from a region called Hwangju and came just hours after the leaders of South Korea and China met on the sidelines of the G20 summit in Hangzhou, China.

South Korea’s Park told Chinese President Xi Jinping that the North’s fourth nuclear test and its ballistic missile launches this year threatened regional peace and posed a challenge to South Korea’s ties with China, Yonhap news agency reported earlier.

During the meeting, Xi reaffirmed China’s commitment to realizing the denuclearization of the Korean peninsula, China’s state news agency Xinhua reported on Monday.

Xi also told Park that Beijing opposed the proposed deployment of a THAAD anti-missile system in South Korea, which Seoul and the United States have said is designed to counter an increasing missile threat from North Korea.

Park said that a THAAD deployment would not threaten any other country’s security interests and would not be needed if the North’s nuclear issue was resolved, Yonhap news agency said.

In July, the North launched three missiles in a single day from the western region that flew across the country and into the sea off its east coast, flying about 500 km and 600 km (300-360 miles).

Reuters

The post North Korea Fires Three Ballistic Missiles As G20 Leaders Meet In China appeared first on African Leadership Magazine.

By Chinese Consul General in Lagos, Chao Xiaoliang

The G20 summit will be held on September 4^th -5^th, 2016 in a beautiful southeast city Hangzhou, China. It is also the first ever G20 summit to be hosted in China. The leaders of Argentina, Australia, Brazil, Canada, China, Chad, Egypt, France, Germany, India, Indonesia, Italy, Japan, Kazakhstan, Laos, Mexico, Republic of Korea, Russia, Saudi Arabia, Senegal, Singapore, South Africa, Spain, Thailand，Turkey, the United Kingdom, the United States, United Nations, the European Union, IMF, World Bank and WTO, etc. will attend the summit. With the highly-expected event approaching, China has got everything ready to welcome its most distinguished guests and partner with all other parties to work out a solution that can lead the world out of the dark tunnel of mired economy.

Since 2008, the world has never been fully recovered from the global financial crisis, and even worse, falling oil and commodity price since 2014 has given a heavy blow to some developing country such as Nigeria. The mediocre economy features rising unemployment, soaring debt, sluggish trade and investment and turbulent financial and commodity markets. Many countries, including both developed and developing countries, resort their solutions to the fiscal stimulus and monetary easing, which to some extent is working but with serious side-effect. For some developing countries, the use of fiscal policies is severely constrained by their high debt level. Added to the already complicated global political and economic situation, Brexit, trade protectionism and terrorism are exacerbating the problem. Now, the world is calling for an effective solution.

Accounting for two thirds of the world’s population and more than 80 percent of global economic output, G20 nations deserve, and are expected, to play a bigger role in managing the world economy. The upcoming summit is undoubtedly a prime opportunity, and has the potential to play a significant role in the rebooting of global growth. The focus of the summit will be sustained global growth. As the host nation, China will use the conference to spur dialogue among developed and developing countries around the potential to foster growth through reforms and innovation.

The G20 summit will also have some reference for the economic development of Nigeria. China and Nigeria share so many similarities, we are both largest economies and populous countries in our respective regions. As developing countries, the difficulties we meet in the process of development are quite similar. With the absorption of Chinese wisdom, the solution proposed by G20 summit will be of reference significance for all developing countries including Nigeria. The G20 summit also offers a golden opportunity to express voices from developing countries. As one of China’s most important partners in Africa, Nigeria’s voice and opinions would be carefully listened to and cherished by China. China will announce concerns and proposals in the summit on behalf of developing countries including Nigeria.

As Chinese President Xi Jinping said: “We should strive to build an innovative, invigorated, interconnected and inclusive global economy and explore new ways to drive development and structural reform, injecting impetus into the growth of individual countries and energizing the global economy, We should embrace the vision of a global community of shared future, enhance economic connectivity and exchanges among countries and improve global economic and financial governance so as to address inequality and imbalance in global development and ensure that the benefits of economic growth will be equitably shared by people of all countries.” The summit offers a new starting position. However, the journey will be fraught with obstacles. To successfully address low growth, nations must put their faith in cooperation, implementation and, sometimes, painful reforms. Although, perhaps, a bitter pill to swallow, the results will speak for themselves.

The post G20 Summit in China, the Light at the End of Tunnel appeared first on African Leadership Magazine.