Sahel Alliance charts independent economic path with new development bank

Mali,Burkina Faso,and Niger are accelerating economic integration through their Alliance of Sahel States (AES),establishing a Confederal Bank for Investment and Development with 500 billion CFA francs in initial capital as they pursue greater autonomy from traditional West African institutions.

The alliance,formed in September 2023 amid growing dissatisfaction with ECOWAS policies,has taken concrete steps toward integration since the three nations withdrew from the regional bloc in January 2024. These measures include eliminating mobile roaming fees,developing joint passports,and implementing a unified 0.5% customs duty on imports from non-member countries.

International economist Magaye Gaye characterizes the new development bank as “not just a financial move,but a political act of sovereignty,” reflecting the Sahel states’ determination to finance their own development. However,success depends on securing pledged capital,attracting strategic partners from China,BRICS nations,or African sovereign wealth funds,and establishing credible governance structures.

The alliance is also considering creating a common currency,leveraging their significant demographic weight—representing 75% of the West African Economic and Monetary Union’s landmass and 50% of its population. Gaye warns that simply exiting the CFA franc won’t suffice without addressing fundamental economic policy reforms,including harmonized taxation,budgets,and correcting negative trade balances.

The AES strategy emphasizes diversification rather than isolation,seeking to reshape relationships with international financial institutions while strengthening endogenous resources. This approach could fundamentally alter regional economic dynamics,provided ambitious plans are matched with adequate implementation capacity and strategic partnerships that support the alliance’s sovereignty objectives while maintaining necessary international connections.