• ECOWAS and IMF sign cooperation framework to strengthen policy alignment

• West Africa’s growth remains solid but faces inflation and trade risks

• Regional integration faces strain after Sahel countries’ exit

The Economic Community of West African States (ECOWAS) and the International Monetary Fund (IMF) signed an agreement on March 27 in Abuja, Nigeria, aimed at deepening cooperation on macroeconomic governance and regional integration.

LA CEDEAO ET LE FONDS MONÉTAIRE INTERNATIONAL (FMI) SIGNENT UN PROTOCOLE D’ACCORD POUR FAIRE PROGRESSER LA GOUVERNANCE MACROÉCONOMIQUE ET L’INTÉGRATION RÉGIONALE À TRAVERS UN CADRE STRATÉGIQUE*

La Communauté économique des États de l’Afrique de l’Ouest (CEDEAO) et le Fonds…

— Ecowas - Cedeao (@ecowas_cedeao) March 29, 2026

The deal, signed by ECOWAS Commission President Omar Alieu Touray and IMF Executive Director for West Africa Wautabouna Ouattara, sets out a framework to improve coordination of economic policies across member states. It includes plans to strengthen policy dialogue, expand technical support in key areas such as fiscal policy, debt management, and statistics, and enhance regional macroeconomic surveillance.

The partnership is also intended to support progress toward a regional monetary union and to better reflect West Africa’s economic priorities in global policy discussions.

Growth remains uneven across the region

The agreement comes at a time of mixed economic conditions across West Africa. According to the ECOWAS Bank for Investment and Development (EBID), regional economies grew by about 5.1% in 2024, with growth expected to hover near 5% in 2025 before accelerating to 5.4% in 2026. Still, this outlook remains vulnerable to commodity price swings and global trade uncertainty, particularly for countries dependent on oil and agricultural exports.

Macroeconomic stability remains fragile. Inflation across the region is projected to reach 18.6% in 2025 before easing to 15.3% in 2026. Nigeria, Ghana, Sierra Leone, and The Gambia are expected to post double-digit inflation, driven mainly by food and energy costs and exchange rate pressures. In contrast, WAEMU member states are projected to keep inflation below 5%, despite ongoing trade uncertainties.

Public finances also remain under strain, although the regional budget deficit is expected to narrow to about 3.9% of GDP in 2025 and 3.6% in 2026. Public debt is projected to gradually decline to 56.3% of GDP by 2026.

Political shifts are adding new pressure to regional integration. The withdrawal of Burkina Faso, Mali, and Niger from ECOWAS could weigh on intra-regional trade, which averaged 8.6% of total trade over the past three years. EBID estimates that this share could fall to 5.2%, underscoring the challenges facing economic integration efforts.

Within this landscape, some countries—including Côte d’Ivoire and Senegal—continue to post strong growth, supported by infrastructure investment and economic reforms. Others, notably Nigeria and Ghana, are still grappling with high debt levels and exposure to commodity price volatility.

Until now, cooperation between ECOWAS and the IMF has largely taken place through bilateral programs with individual member states. The new agreement marks a shift toward a more structured regional approach, aimed at strengthening macroeconomic stability and advancing economic integration across West Africa.

Charlène N’dimon