May 30, 2017
By Edmund Mingle
The next Heads of State Summit of the
Economic Community of West Africa States (ECOWAS) slated for Monrovia in June,
is expected to take a historic decision that could change the fortunes of the
sub-region.
That make-or-break decision has to do
with the Kingdom of Morocco’s request to join ECOWAS, and the interesting move
by the North African country to join the 15-member West African sub-regional
body, makes the decision to be taken very critical.
It is critical not so much of whether
Morocco qualifies, because although located in North Africa, Morocco’s bid is
in line with provisions of ECOWAS founding treaty and its membership criteria,
which qualifies it to join ECOWAS as a Regional Economic Community.
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| King Mohammed of Morocco |
But it is deemed highly critical because
of what that country brings on board and whether it could offer the needed
impetus in rejuvenating ECOWAS’ drive for active regional integration and
economic growth.
ECOWAS objectives
Founded in
1975 following the Treaty of Lagos in Nigeria, ECOWAS is a 15-member regional group,
including Benin, Burkina Faso, Cape Verde, Cote d’ Ivoire,
The Gambia, Ghana, Guinea, Guinea Bissau,
Liberia, Mali, Niger, Nigeria,
Sierra Leone, Senegal and Togo.
With the aim
of promoting the ideal of collective self-sufficiency for its member states,
the overriding concern
of ECOWAS is to create a single, large trading bloc through economic cooperation. This
will have the effect of reinforcing security and peace on the continent by
creating a borderless region, whereby African citizens will benefit from the
abundant resources of the continent.
These objectives are shared by
Morocco, whose bid to join the ECOWAS is bolstered by its longstanding political
and economic ties with West African countries, anchored on south-south
cooperation, which has resulted in that country being the largest African
investor in the sub-region.
Criticisms
Although the Kingdom insists
that the move to join the sub-regional bloc is to entrench its south-south
cooperation efforts by sharing its resources to support economic growth in the
West, critics say it has turned to West Africa due to the collapse of the Maghreb Arab Union made of
North African countries, most of which are currently in political and economic
distress.
Other critics say the move is an attempt by Morocco
to use ECOWAS as a stepping stop to penetrate other regions in its quest to
dominate the African economy.
Irrespective of the criticisms
which the Kingdom has downplayed, expert analysis clearly indicates that ECOWAS
stands to benefit significantly from the admission of Morocco.
Mutual Benefits
ECOWAS weighs 630 billion dollars,
representing the world’s 21st Gross Domestic Product (GDP), and by
integrating Morocco, ECOWAS would become the 16th largest economy in
the world with an addition 115billion dollars and a GDP approaching 745 billion
dollars, ahead of Turkey and right after Indonesia.
With its strategic geographical and
economic position, Morocco would be a vital platform for ECOWAS countries to
secure the European, American and Arab markets.
In addition, joining the ECOWAS
will help Morocco to strike a balance in its foreign trade by gearing exports
towards Africa instead of the EU, which takes 60 per cent of Morocco’s foreign
trade.
Furthermore, a significant
benefit is that Morocco will contribute towards social economic development in ECOWAS
not through trade but mainly direct investment.
Morocco does not constitute a
threat to ECOWAS, as only six per cent of Moroccan exports are directed to the
15-member States, although 65 per cent of Morocco’s foreign direct investments
are directed to ECOWAS countries, making the country the leading investor in
the region.
Fresh projects
The official request to join ECOWAS
comes after the recent re-admission of that country into the African Union after
its voluntary withdrawal for about three decades.
Before submitting the bid to join the
ECOWAS, King Mohammed VI visited 11 countries in the sub-region which were
crowned by the signing of numerous major agreements that give strong impetus to
bilateral cooperation with the member countries of the regional bloc.
Chiefly among the agreements,
Morocco and Nigeria signed a bilateral cooperative deal for the
construction of a landmark Africa Atlantic Pipeline project, which will help
West Africa bolster its energy security while channeling Nigerian gas across
Africa to as far as Europe.
Apart from the Nigeria gas
pipeline project, it is also investing in the Tangier-Lagos highway that will
benefit the whole of the region. In addition, it is investing in major projects
in the agricultural sector for food security, housing infrastructure and
renewable energy.
In Ghana, the two countries signed 25
major governmental and public-private partnership agreements in different
sectors.
Among other investments, Morocco has
initiated industrial cluster projects in a number of countries in the
sub-region in the areas of manufacturing, agro-business and fertilizers to
attract foreign capital and improve export competitiveness.
Morocco, which holds the third largest reserves
of phosphate rock in the world after China and United States of America, remains
the single largest producer and supplier of fertilizers. Phosphorus, a key
component for fertilizer, is derived from phosphate rock. Prepared to support
the African economy with that competitive advantage, Morocco has initiated
fertilizer plant projects in several African countries as a measure to boost
agriculture production on the continent.
Trust and Cooperation
In his landmark speech in Addis
Ababa on the occasion of Morocco’s recent return to the African Union, King
Mohammed VI lauded the achievements of ECOWAS, saying that intra-regional trade
has reached 10 per cent between the member countries of the west African
sub-region, adding that this grouping offers “a reliable space for free
movement of persons, goods and capital.”
“Africa must trust Africa, and Africa
must work with Africa,” he stressed.
According to Mr. Hamid Chabar, Moroccan
Ambassador to Ghana, his government remains expectant of a positive response
from the ECOWAS Summit, adding that the objective of joining ECOWAS was genuine
and in the spirit of beneficial south-south cooperation and regional
integration.
“Morocco has a lot of experience and expertise
in various sectors, and we are ready to place it at the disposal of other
African countries,” he said during an interaction with journalists in Accra.
Lessons from attempts to enhance the
sub-regional economy point to the need for increased intra regional trade and
cooperation to make the sub-regional economy more competitive.
Convergence criteria
The
failed attempt to establish the “Eco”, which would have been the common
currency for the Anglophone countries in ECOWAS, due to the inability of the
countries to meet the convergence criteria, shows the level of weakness of the
economy of ECOWAS.
The
fresh attempt to introduce a new single currency for the entire ECOWAS by 2020,
pending the meeting of four primary convergence criteria, including a
single-digit inflation, a fiscal deficit (excluding grants) of not more-than
four per cent of GDP and three per cent including grants, central bank financing
of fiscal deficit of not more than 10 per cent of previous year’s tax revenue;
and a gross external reserves of not less than three months of import cover,
would required a lot from ECOWAS members to significantly improve their
economies through increased production
Perhaps,
the anticipated admission of Morocco into ECOWAS could change the production,
export and trade dynamics of the member countries to bolster rapid economic
growth that would support the introduction of a common regional currency.
When
that happens, ECOWAS, and Africa in general will become more economically competitive
in dealing with the rest of the world.
