The West African Economic and Monetary Union (UEMOA) has concluded its fourth regular session of 2024 in Bamako, Mali, with a focus on economic performance, financial reforms, and growth projections for the coming years. The meeting, held on December 20, 2024, brought together key figures such as Ivorian Minister of Finance and Budget Adama Coulibaly, UEMOA Commission President Abdoulaye Diop, BCEAO Governor Jean-Claude kassi Brou, and BOAD President Serge Ekué.Ministers celebrated the “continued strength of economic activity” within the Union, noting a GDP growth of 6% in 2024, up from 5.3% in 2023. Inflation remained relatively stable at 4.1% in the third quarter of 2024. looking ahead, the Union’s GDP is projected to grow by 6.3% in 2025, driven by sectors such as agriculture, extractive industries, manufacturing, and commercial and financial activities. The Council of Ministers also approved the macroeconomic framework for 2024-2029, signaling confidence in the region’s economic trajectory.
Important reforms were adopted during the session, including a new regulation on financial relations outside UEMOA member states, replacing the 2010 text. This update aims to modernize the Union’s regulatory framework. Additionally, financial measures were approved to support small and medium enterprises through the West African Development Bank (BOAD). The Council also adopted a 2025 budget of 149.6 billion FCFA, a 5.3% increase from 2024, which includes the launch of the Strategic Plan of Impact 2030 to enhance the UEMOA Commission’s performance.
In terms of multilateral surveillance, Ministers urged member states to bolster resource mobilization efforts. They also established procedural guidelines for calculating the Harmonized Consumer Price index (HCPI) to strengthen the coherence of economic policies across the Union.
Key Highlights of the UEMOA Council Meeting
| Aspect | Details |
|—————————–|—————————————————————————–|
| GDP Growth (2024) | 6%, up from 5.3% in 2023 |
| Inflation (Q3 2024) | 4.1% |
| GDP Growth Projection (2025) | 6.3% |
| 2025 Budget | 149.6 billion FCFA, a 5.3% increase from 2024 |
| Key reforms | New financial relations regulation, SME financing measures, HCPI guidelines |
The UEMOA’s economic outlook for 2025 appears promising, with robust growth projections and strategic reforms aimed at fostering regional integration and financial stability. For more details, visit the original source.
UEMOA’s Economic Outlook for 2025: Growth, Reforms, adn Regional Integration
The West African Economic and Monetary Union (UEMOA) recently concluded it’s fourth regular session of 2024 in Bamako, Mali, setting the stage for a promising economic trajectory in 2025. With a GDP growth projection of 6.3%,key reforms in financial regulations,and a 5.3% increase in the 2025 budget, the Union is poised to strengthen regional integration and financial stability. To delve deeper into these developments, we spoke with Dr. Aminata Diallo, an economist specializing in West African economic policy and regional integration. Dr. Diallo shared her insights on the Union’s performance, reforms, and future prospects.
Economic Performance and Growth Projections
Senior Editor: Dr. Diallo, UEMOA reported a GDP growth of 6% in 2024, up from 5.3% in 2023. What factors contributed to this growth,and how sustainable is this trajectory?
Dr. aminata Diallo: The growth in 2024 was driven by several key sectors, including agriculture, extractive industries, and manufacturing. These sectors have benefited from improved infrastructure, increased investment, and favorable global commodity prices.Additionally, the Union’s focus on regional trade and financial stability has created a conducive environment for economic activity. While the 6.3% growth projection for 2025 is ambitious,it is indeed achievable if member states continue to implement sound economic policies and attract foreign investment.
Inflation and Financial Stability
Senior Editor: Inflation in UEMOA remained stable at 4.1% in Q3 2024. How has the Union managed to keep inflation in check, and what challenges lie ahead?
Dr. Aminata Diallo: The stability in inflation can be attributed to prudent monetary policies by the Central Bank of West African States (BCEAO) and effective fiscal management by member states. However, external factors such as global supply chain disruptions and fluctuating energy prices remain potential risks.The Union must continue to monitor these variables closely and implement measures to mitigate their impact on domestic prices.
Key Reforms and Their Implications
Senior Editor: UEMOA adopted several reforms during the session, including a new regulation on financial relations and measures to support SMEs. How significant are these reforms for the region’s economic development?
Dr. aminata Diallo: These reforms are crucial for fostering a more integrated and resilient economic environment. The new regulation on financial relations modernizes the Union’s framework, making it easier for member states to engage in international trade and investment. The SME financing measures, supported by the West African Development Bank (BOAD), will empower small and medium enterprises, which are the backbone of the region’s economy. these initiatives, combined with the Harmonized Consumer Price Index (HCPI) guidelines, will enhance policy coherence and economic stability across the Union.
2025 Budget and strategic Priorities
Senior Editor: The 2025 budget of 149.6 billion FCFA represents a 5.3% increase from 2024. What are the key priorities for this budget, and how will it support UEMOA’s long-term goals?
Dr. Aminata Diallo: The budget reflects the Union’s commitment to strategic priorities such as infrastructure development, education, and healthcare. A significant portion will also fund the Strategic Plan of Impact 2030, which aims to enhance the UEMOA Commission’s performance and institutional capacity. By investing in these areas, the Union is laying the groundwork for sustainable development and improved living standards across member states.
Challenges and Opportunities Ahead
Senior Editor: What are the main challenges UEMOA faces in achieving its 2025 goals,and what opportunities should member states leverage?
Dr. Aminata Diallo: one of the primary challenges is ensuring equitable resource mobilization among member states. While some countries have robust revenue systems,others struggle with tax collection and public financial management. Strengthening these systems will be critical.Conversely, the Union has significant opportunities in sectors like renewable energy, digital conversion, and agribusiness. By fostering innovation and public-private partnerships, UEMOA can unlock new growth drivers and create jobs for its youthful population.
Final Thoughts
Senior Editor: as we wrap up, what is your overall assessment of UEMOA’s economic outlook for 2025?
Dr. Aminata diallo: the outlook is undoubtedly positive, with strong growth projections and meaningful reforms in place. Though, success will depend on the collective efforts of member states to implement these policies effectively and address structural challenges. If UEMOA stays the course, it can serve as a model for regional integration and economic resilience in Africa.
For more insights on UEMOA’s economic policies and regional developments, visit the original source.
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