AES : The economic advantages for Mali following its withdrawal from ECOWAS to join the Sahel States Alliance
On January 28, 2024, Mali announced its withdrawal from the Economic Community of West African States (ECOWAS) alongside Burkina Faso and Niger.
This decision was motivated by perceived unfair sanctions from the organization, a deviation from its founding ideals, and growing concerns about subjugation to foreign powers. Mali’s exit from ECOWAS marks a significant economic turning point, according to statements by the Minister of Economy and Finance, Alousséni Sanou.
According to Mr. Sanou, Mali was losing approximately 120 billion CFA francs annually by remaining a member of ECOWAS, mainly due to the application of the Common External Tariff (CET) and the waiver of certain customs duties. The minister emphasized that this revenue loss represents a substantial sum for the country, which could be better utilized to stimulate economic growth and fund development projects.
In a statement on Mali’s public television on January 31, 2024, Alousséni Sanou asserted that Mali’s departure from ECOWAS would automatically increase its budget by 21 billion CFA francs. These additional funds could be allocated to key sectors such as agriculture and energy, providing new opportunities for economic growth.
The minister also highlighted the benefits of joining the Sahel States Alliance (AES), established by Mali, Burkina Faso, and Niger in September 2023. This alliance, formed to defend against attacks and promote development, offers a space of 70 million inhabitants with immense potential in the agriculture and energy sectors.
Alousséni Sanou emphasized that Mali has significant comparative advantages in these areas, and the withdrawal from ECOWAS will enable the country to develop a robust domestic market. By freeing itself from the constraints imposed by the CET and customs duties, Mali will be able to stimulate economic growth from its internal economy and capitalize on development opportunities within the Sahel States Alliance.
Mali’s withdrawal from ECOWAS to join the Sahel States Alliance appears to be a strategic decision aimed at unlocking the country’s economic potential and fostering sustainable growth.
