West African Economic and Monetary Union (WAEMU)

Established in 1994, the West African Economic and Monetary Union (WAEMU) has made notable progress in meeting its goal to develop a competitive common market based on the free flow of persons, goods, services, and capital. Members share a common currency, the CFA Franc (pegged to the EURO), with a regional central bank in Dakar and a regional development bank in Lome. WAEMU members have implemented macroeconomic convergence criteria and an effective surveillance mechanism; have adopted a customs union and common external tariff (early 2000); have harmonized indirect taxation regulations; and have initiated regional structural and sectoral policies. The September 2002 IMF SURVEY cited the WAEMU as "the furthest along the path toward integration" of all the regional groupings in Africa. Six of WAEMU’s eight member states are eligible for trade preferences under the African Growth and Opportunity Act and in 2001, WAEMU signed a Trade and Investment Framework Agreement (TIFA) with the United States Trade Representative that establishes a TIFA Council for a structured dialogue on trade and investment issues.

WAEMU has five main objectives:

• To increase the economic and financial competitivity of its member States in the context of an open, competitive market and a rationalized, coherent, judicial environment;
• To ensure the convergence of macroeconomic performance and policy across member States, with the institution of a multilateral control procedure;
• To create a common market for the member States based on the free flow of people, goods, services and capital, the right of individuals to set up businesses within the area, a common eternal customs tariff and a common trade policy;
• To promote the coordination of national sectoral policy and implementation in the areas of agriculture, environment, transport, infrastructure, telecommunications, human resources, energy, industry, mining and crafts; and
• Where necessary for the smooth operation of the common market, to harmonize legislation across member States, particularly the fiscal system.