West African economies are witnessing shifting economic dynamics, driven by rising gold production, trade reforms and regional economic policy changes, according to regional analyst Dr David Matsanga.
The growing gold trade across countries such as Senegal, Burkina Faso and Mali is contributing to economic growth and strengthening foreign currency reserves, Matsanga said. He noted that several West African States are increasingly seeking greater control over their natural resources and trading them on global markets on more favourable terms.
Speaking on regional economic trends, Matsanga said gold exports have helped boost revenue while enabling governments to reduce external debt pressures. He argued that African countries should prioritise intra-continental trade and local manufacturing to reduce dependence on imports from Europe, Asia and the United States.
In Senegal, where Dakar remains a major transatlantic trade hub, gold exports are helping support trade balance improvements. However, the country continues to rely heavily on imported fuel and manufactured goods, which remain structural challenges for economic diversification.
Turning to Nigeria, the expected reduction in the country’s repo rate has been welcomed as a potential measure to stimulate economic activity. Analysts say the policy could ease borrowing costs and support businesses, although the impact on ordinary households will depend on whether financial benefits are transmitted to the wider economy.
In the Sahel region, bilateral co-operation is also expanding. Ghana and Burkina Faso have signed several trade agreements, including deals to strengthen agricultural trade, particularly in tomato exports. The agreements come after security concerns affected cross-border trade following attacks by insurgents targeting traders along border areas.
Matsanga said improved agricultural production and irrigation systems in Burkina Faso are boosting food production and export capacity. He added that stronger security co-operation will be essential to protect trade routes and sustain economic growth in the region.
On regional integration, he welcomed moves to strengthen African trade networks, arguing that West African states should deepen economic cooperation rather than rely on external markets.
The analyst also praised Ghana’s decision to rename its main international airport from Kotoka International Airport to Accra International Airport, describing it as a step towards neutral national symbolism. He suggested African countries should honour liberation and Pan-Africanist leaders who contributed to independence struggles.
He concluded that stronger African economic unity, improved security co-operation and increased intra-regional trade will be critical to driving sustainable development across West Africa.
–ChannelAfrica–
