How juntas in Burkina Faso, Mali, Niger are increasing costs of West African Trade

The Alliance of Sahel States (AES) came into existence on 16 September 2023 after Mali, Burkina Faso and Niger became signatories to the Liptako-Gourma Charter.

The charter is a mutual defence pact to address issues of terrorism, insecurity and economic instability. Over the last 18 months developmental projects have emerged and advanced in infrastructure, energy, security, agriculture, transportation, and international relations as they continue to synergise resources required for an economic union development with opportunities and abilities for further advancement into a monetary union.

Despite being landlocked countries without access to international waters, which account for over 90% of global trade, AES member states took the bold decision of exit from the Economic Community of West African States (ECOWAS) on 29 January 2025, with a transitional reconsideration period available till 29 July 2025.

ECOWAS was established by the Treaty of Lagos on 28 May 1975 and has commenced several activities, including sporting events, to mark her 50th anniversary as a formidable economic regional bloc. The indication of support from countries within and beyond West Africa to AES member states further raises valid concerns about issues of further divisions and disintegration between Western African states now and in the future.

AES was brought to life by a military coup that ensured President Ibrahim Boubacar Keita was overthrown on 18 August 2020, which led to the president and prime minister being arrested on 24 May 2021 prior to the inauguration of Assimi Goita as the interim head of state on 28 May 2021. On 24 January 2022, a military coup led to President Rosch Marc Christian Kabore being overthrown, and Lieutenant Colonel Paul-Henri Sandaogo Damiba was sworn into office. Lieutenant Colonel Paul-Henri Sandaogo Damiba was dismissed from the military on 30 September 2022, upon which Captain Ibrahim Traore assumed office as the president of Burkina Faso. On 26 July 2023 the military ensured that President Mohamed Bazoum was overthrown while General Abdourahamane Tchiani assumed office as the president of Niger Republic.

Other African countries that also experienced military coups, although not part of the AES between 2020 and date, are Guinea in West Africa and Sudan, which has borders with Egypt, the Red Sea, Ethiopia and Eritrea in Northeast Africa.

The ECOWAS commission, upon approval of the exit of current AES member states, instituted structures to have discussions on the following issues to ensure peaceful interactions and collaboration with prior members of ECOWAS.

Recognition of national passports and identity cards with ECOWAS logo held by Sahel States citizens. Sahel States response to this is the launching of their common passport with the AES logo. Citizens are encouraged to register for the new passports with the AES logo having advanced biometric technology features, while passports having the ECOWAS logo are still valid till expiration.

Treatment of goods and services from the AES states under the umbrella of the ECOWAS Trade Liberalization Scheme (ETLS) and Investment Policy. Sahel States recent response is an imposition of a 0.5% levy on all goods, other than humanitarian aid imported from countries other than the AES member states, as a financing strategy for the economic union.

Visa-free movement, residence and establishment in line with the ECOWAS protocols remain in place until further notice. There are currently no visa restrictions on entry and exit for holders of ECOWAS passports in the AES states. There are also no issues around mobility between ECOWAS state citizens and AES state citizens pending when further developments will be raised on this issue.

There is also provision of full support and cooperation to ECOWAS officials from the AES member states in the course of their assignments for the community. There have been discussions, engagements and deliberations among AES and ECOWAS members on several issues pending when an updated position will be arrived at on this issue.

Some interesting information to note about the AES member states sharing borders with each other and being landlocked is that there are huge economic opportunities for development arising from the vast agricultural land areas; unexplored natural resources like copper, limestone, gold and other natural resources; the common French language introduced by the same colonial master, France; and the common currency of the West African CFA Franc, backed and supported by the French treasury making it relatively stable over the years to the Euro, serving as the national currency among 14 member sovereign states, of which eight are in West Africa.

A review of AES member states reveals Niger Republic as the most populated, with over 26 million people, then Burkina Faso, with over 23 million people, while Mali has about 22 million people. Burkina Faso, Mali and Niger currently serve as regions with low quality of life, health and education, from the assessment of their Human Development Index (HDI) score, all below 0.5. Each AES member state is currently playing to their areas of strength to further validate their sovereignty, political and economic independence, increased acceptance as independent regions by ECOWAS and other African states and regional unions, and other international organisations such as the African Union and the United Nations at large.

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From the analysis of available trade data from the Nigerian Bureau of Statistics (NBS) for the fourth quarter in 2024, Niger Republic and Burkina Faso rank seventh and eighth, respectively, among the top 10 Nigerian West African trading export partners, with a value of ₦25.914 billion for Niger Republic and ₦5.847 billion for Burkina Faso, while the imports to Nigeria from Niger Republic are ₦2.617 billion. Nigeria’s border with the Niger Republic extends beyond 1,500 km, with only a few designated border stations, as the majority of the points of entry and exit between the two countries are non-designated (illegal) border stations. These illegal border zones increase the risk of illegal movement of people and goods between Nigeria and Niger Republic through the use of camels, donkeys, empty fuel tankers, sacks and other means, accounting for 2% – 3.5% of Nigeria’s GDP.

This raises valid concerns about how effective the import levy of 0.5% on goods from Nigeria and other West African states to AES member states is. The AES has not also laid out a structured plan on how to ensure all goods and services consumed within their regional bloc are locally produced and create no need for import.

AES balance of trade has consistently been a deficit as imports into the region exceed exports from the region. As there are currently no available substitutes for goods imported into AES, the import duty of 0.5% should be carefully considered to ensure that the GDP, economic growth and development are not hampered and prevent more AES member states citizens from falling significantly below the poverty line.

Oluwatosin Oladetan is an experienced business strategist, corporate strategist, financial analyst and process improvement officer.