The economic growth rate among member states of the West African Economic and Monetary Union (WAEMU) has amounted to 5.7% this year, down 0.4% compared to 2021, leaders of the organization stated during a meeting in Abidjan, Ivory Coast.
The 23rd session of the Heads of State and Government of UEMOA (its acronym in French) was held at the Sofitel Ivoire hotel on December 5, 2022. The leaders of eight West African members of the bloc - Benin, Burkina Faso, Guinea-Bissau, Ivory Coast, Mali, Niger, Senegal, and Togo - attended the summit.
Ivorian President Alassane Ouattara, speaking after the summit, stated that the regional bloc had seen a slight decrease in growth rate in 2022 due to global crises and local security demands. Last year, growth across the region was 6.1 %. Moreover, inflation is expected to reach 7.5%, following 3.6% in 2021.
Ouattara noted that the economies have been exposed to the effects of "the deep crises that affect the whole world,” highlighting that they are now gradually recovering from the shock related to the COVID-19 pandemic. He added that despite the slight economic slowdown, member countries have shown "resilience."
He also pointed out that the situation has been aggravated because of security threats caused by an increasing number of terrorist attacks in several WAEMU states, specifically in Burkina Faso and Mali. According to Ouattara, part of the spending that was set to be allocated to the health and education sectors have been diverted to ensure the security and defense capability of member states.
The Abidjan meeting came a day after the summit of a broader West African bloc that addresses political and security issues, the Economic Community of West African States (ECOWAS), which was held in Abuja, Nigeria. During the summit the leaders stressed that they are determined to form a regional force to “intervene in the event of need, whether this is in the area of security, terrorism” or restoration of constitutional order in member states.
According to an earlier report by the ECOWAS Bank for Investment and Development (EBID), the West African economy has never been as adversely impacted as it was in 2020. The report projected that the real GDP growth in ECOWAS member states would reach 3.9% in 2021 and 4.4% in 2022. The organization expected slight economic growth in the region, as countries took their first steps on the path of recovery.
WAEMU is an organization of eight West African states within ECOWAS. It was established in 1994 with the initial goal of enhancing economic integration within the countries that use the West African CFA franc as a common currency.
At the same time, the West African organization is not the only regional bloc demonstrating relatively resilient economic growth despite the effects of COVID-19, negative impacts of geopolitical tensions, climate change, and regional insecurities.
For instance, according to the African Development Bank's latest report, in 2022, East African states experienced an economic slowdown, with GDP growth falling from 5.1% in 2021 to 4% this year. However, the region's economic recovery is expected to be more prominent next year. The projected economic growth rate in East African countries could amount to 4.7% in 2023, making the region one of the best performers in terms of economic recovery across the continent.
A lead economist at the bank highlighted that even though the recovery will be slow, it is expected to be sustained in the medium term as countries all over the world continue to reopen their economies, thereby gradually mitigating the adverse effects. Growth is expected to be strengthened through the restoration of services and industrial activity, recovery of the tourism sector, supportive macroeconomic policies, as well as increasing regional cooperation and integration in East Africa.