Ghana, Nigeria to fast-track into single monetary zone 

Accra (Greater Accra) 22 Dec '99

Ghana and Nigeria have agreed to adopt a fast- track approach towards the achievement of a single monetary zone in the West African Sub-Region.

The process will first involve the creation of a second monetary zone for the Anglophone area of ECOWAS as it is with UEMOA before the subsequent move toward a single monetary zone for the entire 16-nations.

UEMOA is a monetary union of French Speaking West African States, which use the CFA Franc.

This was the outcome of two-days of intensive consultations between Ghana and Nigeria at a high-level ministerial meeting.

Those present at the meeting were the Executive Secretary of ECOWAS, Mr Lansana Kouyate, and officials from the Ministry of Trade and Industry, Central Banks of Ghana and Nigeria and the Economic Commission of Africa.

Mr Victor Gbeho, Ghana's Minister of Foreign Affairs told newsmen that the Accra meeting has resulted from the decisions arrived at the last ECOWAS Summit in Lome, Togo.

ECOWAS nations were given the option to adopt quicker means and strategies to arrive at the realisation of the ECOWAS protocols.

Professor Jerry Gana, Minister of Co-operation and Integration of Nigeria, said the process would involve co-ordination in the areas of finance, commerce and trade, aviation and central banks.

This would involve the establishment of a Convergence Council, which will advice the Heads of State on ways to facilitate the quick move toward the second monetary zone.

He said a technical committee would be established to research into major areas of co-operation to ensure that the meeting's recommendations are carried through.

He noted that the meeting also discussed the role of the private sector in the whole process and agreed to mobilise resources for the implementation of the second monetary zone.

Prof. Gana called for a follow up programme to sustain the momentum of the meeting.

He said the Joint Group of Ministers of the two countries on bilateral matters will meet in the middle of January and second week of February next year before the Heads of State meet in March for the second agreement to come into effect in April 2004.

He said major issues that came up were the establishment of regional infrastructures, implementation of the ECOWAS Trade Liberalisation Scheme, effective establishment of free trade areas and the harmonisation of customs procedures.

"In this regard, Ghana and Nigeria should work on a Lagos to Accra railway line to facilitate the process".

Mr Gbeho described the meeting as highly successful, saying it is different from all the others, "in that this one seeks to find strategies for the implementation of the agreed principles of ECOWAS".

He said given recent trends in the world, it is very important that nations work strongly toward integration." West Africa cannot afford to lag behind. The process of integration is now inevitable".

Mr Gbeho said he was happy that Ghana and Nigeria have taken a decisive turn to move forward.

"It is a happy moment. But not one for celebration yet. Rather it is the beginning of a new challenge".

He expressed the hope that decisions taken at the meeting will help in arriving at the ECOWAS dream.

"Ghana and Nigeria will keep on the momentum until the ECOWAS miracle is attained".

Mr Lansana Kouyate, ECOWAS Executive Secretary later in an interview with the GNA said the meeting has been fruitful especially after several years, where decisions arrived at ECOWAS summits could not be met because it was thought that all the nations should move together at the same pace.

"We are however, happy that the Heads of State at their last meeting in Lome decided for a multi-track approach so that those who are ready can move on".

He said by this Ghana and Nigeria can move for a single currency in the Anglophone zone to run alongside that of UEMOA in the French zone.

"This is important since it is easier to merge two currencies than trying to merge nine currencies in the area of trade and commerce".

GRi../