In a bid to solidify their strategic interests and foster economic growth, Mali, Burkina Faso, and Niger joined forces in September 2023 to establish the Alliance of Sahel States (AES). This move came as a response to regional instability, security challenges, and a desire for more autonomy. Departing from ECOWAS due to disagreements over certain policies, the three nations sought to create an independent alliance focused on sovereignty and mutual cooperation.
Since officially forming the AES in January 2024, significant strides have been made towards integration. Initiatives such as abolishing mobile roaming charges within member countries, introducing a common passport, and implementing a unified customs duty on external imports demonstrate a shared commitment to building a robust regional economy.
The recent launch of the Confederal Bank for Investment and Development (BCID-AE) with an initial investment of 500 billion CFA francs marks a pivotal moment in the AES’s journey towards economic independence. International economist Magaye Gaye underscores the significance of this move by stating that it reflects these nations’ determination to finance their own development.
However, challenges lie ahead for the AES. Securing promised capital, attracting key partners like China or sovereign wealth funds from other African nations, and establishing effective governance structures are crucial steps towards sustainable growth. Gaye emphasizes that a clear vision coupled with strategic partnerships will be essential for success.
The shift towards economic self-sufficiency also has implications for international relationships. Gaye suggests that financial institutions must adapt their approaches when engaging with AES countries. Rather than seeking isolation, these nations aim for diversified support systems and enhanced internal resources.
One ambitious proposal under consideration is the introduction of a common currency among AES members. With their substantial combined landmass and population share within WAEMU, there is potential for creating a strong monetary union. However, caution is advised to avoid past pitfalls related to economic policy formulation.
Gaye warns against repeating mistakes such as prioritizing inflation control over growth and job creation. He stresses the importance of redefining fundamental economic principles like tax harmonization and balanced budgets while addressing trade imbalances effectively.
The future success of the Alliance of Sahel States hinges on its ability to navigate these challenges while embracing accelerated economic integration without isolating itself from global markets.
