The Member of Parliament for Krachie East, Djabab Kofi Nelson, has renewed calls for the adoption of a common African currency, arguing that the absence of a unified monetary system remains one of the biggest obstacles to trade across the continent.
In an interview with James Advezi on JoyNews on Monday, March 16, Mr Nelson said African economies continue to face unnecessary barriers because traders must navigate multiple national currencies when conducting cross-border business.
Currency Fragmentation Hindering Trade
According to the lawmaker, the long-standing plan by the Economic Community of West African States (ECOWAS) to introduce a single regional currency has made little progress over the years, despite its potential to simplify commerce across the sub-region.
The proposed currency, known as the Eco, was intended to unify monetary systems within West Africa. However, Mr Nelson noted that the initiative has remained largely conceptual, leaving traders to continue dealing with fluctuating exchange rates and conversion costs.
“Let’s look at ECOWAS. It has been a long time since ECOWAS proposed using a single currency known as ECO. That ECO has remained a dream in the minds of West African states,” he said.
Mr Nelson stressed that without a common currency, conversations about improving trade logistics and regional integration risk remaining theoretical rather than practical.
A Major Barrier to Regional Integration
The MP argued that currency disparities among neighbouring countries significantly complicate the free movement of goods and services within the region.
“We cannot develop this. So how do you talk about trade facilitation? We still have this as a major barrier to successful trade in West Africa,” he said. “We need to have a common currency such that member states can trade with this common currency.”
He explained that traders frequently encounter difficulties when crossing borders because their local currencies quickly lose value or become unusable outside their home countries.
“Because you try to cross the border from Ghana to just Togo, and you realise that your cedi you hold becomes useless. You get to Nigeria, the cedi becomes useless. Nigeria gets to Benin, their naira becomes useless. These are common states,” he said.
Strengthening Africa’s Global Economic Influence
Beyond easing cross-border commerce, Mr Nelson believes a shared currency could significantly strengthen Africa’s collective bargaining power in the global economy.
“This will give Africa a kind of power, a force to reckon with,” he stated, suggesting that a unified monetary system would enable African countries to act as a stronger economic bloc.
According to him, the adoption of a common currency would reinforce continental unity and position African markets to compete more effectively with larger global economies.
“We need a common currency that will see us as a united state with a force to reckon with. That is the currency that will be our force. It is on that force that we can spring,” he said.
Questions Over Delayed Implementation
Despite the region’s shared economic goals and geographic proximity, Mr Nelson questioned why countries in West Africa have yet to implement a unified currency system.
“Why can’t we have a common currency that will help us also advance in the area of trade?” he asked.
He concluded that until such a monetary framework is realised, the vision of fully integrated trade across West Africaand the wider African continent may remain difficult to achieve.
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Source: www.myjoyonline.com
