• Mali, Niger, and Burkina Faso Form New Confederation, Leaving ECOWAS Behind
• Re-routing goods through Sahel states increases costs and risks
• Diplomatic tensions create uncertainty for regional trade and supply chains
'Seun Ibukun-Oni, Abuja
Political tensions in West Africa have sparked a major disruption in trade routes, with Mali, Niger, and Burkina Faso officially severing ties with the Economic Community of West African States (ECOWAS) on Wednesday. This marks a significant shift in regional dynamics following years of deteriorating relations and the formation of the Confederation of Sahel States (AES), a new political and economic bloc led by military juntas in the three countries.
The political upheaval began between 2020 and 2023, when the military leaders overthrew civilian governments, leading to the eventual break with ECOWAS. The bloc had imposed heavy economic sanctions in response to the coups, resulting in a strained diplomatic relationship and forcing the military regimes to seek alternative trade routes. The region, once heavily dependent on ECOWAS for trade and economic integration, is now grappling with the complexities of new partnerships and shifting logistical networks.
Prior to the political fractures, nearly 80 percent of Niger’s freight passed through the southern city of Cotonou in Benin, home to the closest port to the capital, Niamey. However, tensions between the two nations have escalated, particularly after Niger accused Benin of harboring jihadist bases and attempting to destabilize the country. Despite the lifting of ECOWAS sanctions, Niger has refused to reopen its border with Benin, forcing traders to find alternative routes.
The situation is similar in Ivory Coast, where the port of Abidjan has witnessed a sharp drop in road freight, particularly in the first half of 2024. The decline has been attributed to the diplomatic fallout between Ivory Coast and the Sahelian countries, with trade disruptions impacting the region's economy.
In contrast, Togo and Guinea have maintained better relations with the AES countries. As a result, the ports of Lomé and Conakry have become increasingly important transit points. During the height of the sanctions against Mali in 2022, for example, the volume of Malian freight passing through Conakry surged by 243 percent compared to the previous year.
However, the new trade routes come with their own set of challenges. For instance, transiting goods via Togo often requires long and dangerous detours, particularly for trucks headed to Niger, as they must travel through volatile regions plagued by jihadist attacks. This shift has led to a significant increase in logistics costs, with the Organization for Economic Cooperation and Development (OECD) estimating that logistics costs have more than doubled since the re-routing began, driving up food prices and other essential goods.
In Senegal, traders in the Malian market in the capital, Dakar, expressed mixed reactions to the political shift. Some, like Ousmane Diouf, who sells jewelry and other products from Mali, Niger, and Burkina Faso, believe that the break from ECOWAS is a "problem between states" and that it won’t severely impact the supply of goods. However, others, like Malian fabric seller Mohamed Konate, expressed concern about the future, noting that rising customs duties have already placed a strain on trade and could exacerbate the economic challenges faced by businesses in the region.
As the political realignments continue to reshape West Africa’s trade networks, the region is facing a difficult period of transition. With increasing security risks and escalating logistics costs, the future of trade and economic cooperation in West Africa remains uncertain, and countries in the region will need to navigate this complex landscape carefully to maintain stability and economic growth.
