Leaders of the Economic Community of West African States (ECOWAS) have decided to extend the December 2009 deadline for the launching of the West Africa Monetary Zone (WAMZ) to 2015, to facilitate the achievement of the convergence and institutional benchmarks.
A communiqué issued at the end of the ninth summit of the Authority of Heads of State and Government, which ended in Abuja on Monday, said the leaders resolved that adequate preparation and time were needed for the launching of the monetary union.
"At the end of its deliberations, the Summit reaffirmed its commitment to the success of the West African Monetary Zone Programme and decided that the December dateline was not feasible for the start of the single currency and monetary union in the WAMZ."
Several Heads of State including the Ghanaian President, Professor John Evans Atta Mills, attended the summit.
President Yahya Jammeh, outgoing Chairman of the Authority of Heads of State and Government of WAMZ, said in an opening speech read on his behalf that the overall progress of the convergence scale was still insufficient despite some progress made on the attainment of the Primary and Six Secondary Criteria.
Only the Gambia, he said, met all the four primary criteria for three consecutive years, 2006 to 2008.
Nigeria met all the four primary criteria in 2006 and 2007, but met only three in 2008; Guinea met only two in 2007 and 2008; Sierra Leone met two in 2004; while Ghana met two criteria in five years up to 2007, but failed to meet any criteria in 2008.
In addition to the global financial recession that badly affected the slightly improved economies of some West African countries, coupled with some successful financial sector reforms, there was also slow implementation of sectoral reforms, insufficient development of telecommunication and transport networks.
President Jammeh said there was also uneven progress among the member countries towards the establishment of an efficient legal and institutional framework to support liberalisation efforts in the financial sector.
He however observed that the postponement of the launch of the Eco for six years might lead to apathy and lack of commitment of some member states, and underlined an urgent need to keep the momentum towards macro-economic convergence.
The leaders decided to extend the mandate of the West Africa Monetary Institute from 2010 to 2015, and to adopt schedule of payments of contributions to the capital of the West Africa Central Bank and the Stabilisation and Co-operation Fund by Member States.
Trade Ministers were also asked to participate fully in the activities of the monetary union to ensure implementation of all ECOWAS trade related protocols. Member States should also expedite the ratification of WAMZ legal instruments to be completed by 2013.