Feature/OPED
Alliance of Sahel States: Beginner’s Guide
By Professor Maurice Okoli
Burkina Faso, Mali, and Niger, the three Francophone West African countries under military government, have established an Alliance of Sahel States (AES, or Alliance des Etats du Sahel in French), which is a confederation formed between the above-mentioned three countries.
It originated as a mutual defence pact and was created by the three countries on September 16, 2023. The confederation was officially established on July 6, 2024. The AES is anti-French and anti-ECOWAS in outlook. All three member states of the AES have had their pro-Western governments overthrown by their militaries, and each is currently ruled by a military junta as part of the coup belt.
In 2002, Mali withdrew from the internationally backed G5 Sahel alliance, and Niger and Burkina Faso followed suit in 2023. This led to the dissolution of the G5 framework by its last two members, Chad and Mauritania. The AES has finally exited the African Union (AU) and the Economic Community of West African States (ECOWAS).
In addition to their enthusiasm to ensure long-term political power, the three have generally joined a growing list of African countries that are turning their economies into better environments for their millions of impoverished citizens.
Burkina Faso, Mali, and Niger, in early July 2024, finally withdrew from the African Union and the Economic Community of West African States (ECOWAS) and have further taken the next collective step to create their own sub-regional bloc referred to as the Alliance of Sahel States (AES).
The treaty underscores a “step towards greater integration” between the signatory countries. The pact is open to new members in the event that the candidate accepts all provisions and the ‘trio’ unanimously agrees on the decision.
In practical terms, the trio has repeatedly explained the primary reasons for the joint action as follows: (i) the AU and the ECOWAS’s significant failure to provide adequate support against fighting the jihadists; (ii) the imposition of ‘illegal sanctions’ that are harming the people; and (iii) that the bloc has fallen under the influence of and indiscriminately manipulated by foreign governments, particularly France. (iv) ECOWAS threatens to intervene to restore civilian rule in Niger.
The Alliance further seeks new members whose political philosophy aligns with the current development challenges. The new confederation’s document outlines various directions on its agenda, including establishing a regional bank and stabilisation fund. It has also issued an executive order to facilitate foreign investment in their territorial space.
The document clip circulated widely on social media, racking up thousands of views and introducing fresh debate around the fact that the former political system was stacked with bureaucracy and conservative policy.
A curious look inside the creation of the Alliance of Sahel States has been making resonating waves. The architects of this alliance, both online and offline, have accordingly been pushing the agenda. The Blueprint Document is open to the public and foreign organisations, the regional bloc ECOWAS, and the continental organisation AU.
Reports have indicated that the inaugural meeting was held on July 6 in Niamey, the capital of Niger, and was attended by President of Burkina Faso Ibrahim Traoré, Transitional President of the Republic of Mali Assimi Goita, and President of Niger’s National Council for the Safeguard of the Homeland, Abdourahamane Tchiani.
The Niamey Declaration, in which the ‘trio’ formally announced the establishment of the new confederation,’s primary multifaceted goals include consolidating joint efforts to ensure security and address the socioeconomic problems of the participating states. The alliance will also pursue and undertake joint development projects as well as address questions relating to trade, industry, and agriculture. The document holds the promise to facilitate the free movement of people, goods, and services.
The Alliance of Sahel States is resonating across the sub-region, across Africa, and beyond. Critics have labelled it a real ‘threat to democracy’ and a step to assert ‘an authoritarian’ takeover of political power and administration, while supporters call it a strategic plan to establish power as one ‘of the people, by the people, and for the people, and probably the irreversible beginning of an end of epoch, 500 years of colonialism.
The Alliance of Sahel States came under the spotlight after their July declaration. As expected in the context of the geopolitical situation and analysing the background of the complexities of the evolving political situation, especially in West Africa, it is very noticeable that the United States, Europe, and a few other external powers have stood on the opposite side.
On the other side, the Russian Ministry of Foreign Affairs said in its weekly media briefing that while consistently advocating for ‘African solutions to African problems’, the initiative by the leaders of Burkina Faso, Mali, and Niger fully meets the interests of the people of those countries. “We are confident that the Alliance of Sahel States will facilitate the formation of a new regional security architecture. Russia reaffirms its intention to continue to provide the necessary support to the countries of the Alliance of Sahel States,” the report said.
In another related development, Mali’s military leader, Assimi Goita, had spoken by phone with Russian President Vladimir Putin about political developments and his approach to settling the crisis in the region as a whole. Putin stressed “the importance of a peaceful resolution of the situation for a more stable Sahel,” according to the transcript posted to the Kremlin’s website.
Most probably, ECOWAS is now crumbling due to institutional weaknesses combined with being manipulated by external forces. There has been rising anti-western sentiment in the former French colonies. It is also due to the long-standing discontent with and the inability to support effectively in the fight against growing insecurity in the region. Reports say ECOWAS has been working to set up a standing regional force of between 1,500 and 5,000 soldiers, which reports estimate would cost about $2.6bn (£2bn) annually.
But for political observers, their split from ECOWAS comes with many potential ramifications, ranging from economics to security. Buchanan Ismael, a politics professor at the University of Rwanda, believes it “may increase the risk of insecurity” in an already volatile region infested with militant groups.
Hassan Isilow, a political analyst, says in his report that Burkina Faso, Mali, and Niger have cemented their split from ECOWAS and formed their own Alliance of Sahel States.
The West Africa region could be headed for ‘foreign-imposed instability,’ warns the University of South Africa’s Ahmed Jazbhay.
More countries could’separate themselves from ECOWAS, if not through coups, then with anti-Western populists,’ says Rwanda-based analyst Buchanan Ismael.
The fact is that the common theme in their statements was greater integration between their countries—the majority of African states that have slowly but surely been drifting away from traditional regional and Western allies.
Research reports published by The Conversation, Agence France Press, British Broadcasting, and many other reputable media indicated that the unilateral withdrawal of three West African countries would be hit by trade regulations and restrictions, thus impacting the population and the economy.
The three are landlocked and among the poorest in the world; this already illustrates their major disadvantage and limited position. Several narratives further pointed to the fundamental fact that the crisis has the potential to escalate into either a conflict across West Africa or the final disintegration of ECOWAS.
In July 2024, Burkina Faso, Mali, and Niger signed a confederation security pact and formalised their final exit from the Economic Community of West African States (ECOWAS), the regional bloc that imposed sanctions on them after the coups in Mali in 2020, Burkina Faso in 2022, and Niger in 2023.
“This summit marks a decisive step for the future of our common space. Together, we will consolidate the foundations of our true independence, a guarantee of true peace and sustainable development, through the creation of the ‘Alliance of the Sahel States’ Confederation,” Traore said in a statement posted on X.
By creating their own Alliance of Sahel States, it exposes the regional bloc ECOWAS and the continental organisation AU’s powerlessness, multitude of weaknesses, and long-term inability and incompetency to deal with regional problems through mediation.
In the ECOWAS guidelines, Article 91 of the bloc’s treaty stipulates that member countries remain bound by their obligations for a period of one year after notification of their withdrawal. For better or for worse, these interim military governments have adopted a hardline stance, consistently delaying fixing concrete dates to hold democratic elections.
The AU Commission chief, Moussa Faki Mahamat, repainted the ‘bleak picture’ with a ‘litany of difficulties’ confronting many African countries during the 37th Ordinary Session of the Assembly of Heads of State and Government of the African Union (AU) summit held, from February 14 to February 15, at the AU Headquarters in Addis Ababa, Ethiopia. AUC chief Moussa Faki Mahamat assertively spoke of ‘worrying trends’ in North Africa, the Horn of Africa, and also in West Africa.
Moussa Faki Mahamat blasted the failure to counter multiple “unconstitutional changes of government” following a string of coups in West Africa and warned the scourge of “terrorism” was diverting money away from vital social needs to military spending. In practical reality, the summit was now concerned about looking inward, closely protecting their sovereign prerogatives rather than investing in collective security, somehow to fund most of its budget rather than foreign donors. Gabon and Niger were absent from the summit following their suspension over coups last year, joining Mali, Guinea, Sudan, and Burkina Faso, which are also barred for similar reasons.
As an expert in geopolitics and regional economic integration, it is important to take a close look at the possible obvious implications. Despite taking this innovative step, there are still obstacles and explicit challenges in the areas of coordination and cooperation. For instance, the fact that the three are geographically landlocked stipulates the questions of access to the coastline, logistics, and delivery of goods through seaports.
The next question that cannot be overemphasised is whether Burkina Faso, Mali, and Niger are members of the West African Economic and Monetary Union, which uses the CFA franc as its common currency. The trio has to create their own currency if they are expelled from the West African Economic and Monetary Union.
Usually referred to as the West African Sahel, it is the vast semi-arid region where Burkina Faso, Mali, Niger, and other countries are located. This West African Sahel region has been plagued by security challenges, including terrorism and organised crime. Terrorist organisations such as Boko Haram, the Islamic State, and al-Qaeda in the Islamic Maghreb (AQIM) have operated in the Sahel, exacerbating violence, extremism, and instability in the region.
According to the latest issue of the Global Terrorism Index, there is a strong link between organised crime and terrorism in this region. Terrorism is on the rise, and the Sahel accounts for almost half of all deaths from terrorism globally.
This is further exacerbated by the cross-border operations of armed groups and rising violent extremism. That, combined with widespread and growing desertification, contributes additional strain to the region’s development. Burkina Faso, Mali, and Niger have a combined population of approximately 80 million people and some of the fastest population growth rates in the world. But development has been assessed as poor, far below what is needed to guarantee a normal living standard.
In addition to insecurity and instability, these countries are engulfed in various socio-economic problems combined with traditional cultural practices that have lessened development. The system of governance and poor policies largely hinder sustainable development.
In light of the above, ECOWAS will have to adapt its strategy to this new geopolitical reality. The AES could seek to establish or strengthen its partnerships with other international actors, such as Russia or China, of the multipolar BRICS Alliance, which have shown growing interest in Africa.
Burkina Faso, Mali, and Niger together comprise some 72 million people, almost a fifth of the regional bloc’s population. It remains one of the least developed countries in the world, with a GDP of $16.23 billion in 2022. Geography and the environment contribute to Burkina Faso’s food insecurity.
Mali’s key industry is agriculture. Cotton is the country’s largest crop export and is exported west throughout Senegal and Ivory Coast. Gold is mined in the southern region, and Mali has the third-highest gold production in Africa (after South Africa and Ghana).
Niger is the second-largest landlocked nation in Africa, behind Chad. Over 80% of its land area lies in the Sahara. In 2021, Niger was the main supplier of uranium to the EU, followed by Kazakhstan and Russia. Despite its large deposit of uranium, Niger has a multidimensional underdevelopment, and 80% of its citizens consistently live in abject poverty.
The Economic Community of West African States (ECOWAS) continues to look for appropriate mechanisms to resolve the ongoing crisis. The regional bloc has come under persistent criticism; it has slackened on its primary responsibilities, while some have called for drastic reforms and personnel changes (overhauling or restructuring), attributing to the complete inefficiency of the organisation.
Consisting of 15 member states, ECOWAS facilitates peacekeeping through systematic collaboration with civil society, cooperation with development policies, and other activities to meet sub-regional security challenges. Established on May 28, 1975, the bloc’s reputation has been at stake and most probably needs new dynamic faces at the Secretariat in Abuja, Nigeria.
Professor Maurice Okoli is a fellow at the Institute for African Studies and the Institute of World Economy and International Relations, Russian Academy of Sciences. He is also a fellow at the North-Eastern Federal University of Russia. He is an expert at the Roscongress Foundation and the Valdai Discussion Club.
As an academic researcher and economist with a keen interest in current geopolitical changes and the emerging world order, Maurice Okoli frequently contributes articles for publication in reputable media portals on different aspects of the interconnection between developing and developed countries, particularly in Asia, Africa, and Europe. With comments and suggestions, he can be reached via email: markolconsult (at) gmail (dot) com.
Feature/OPED
The Future of Payments: Key Trends to Watch in 2025
By Luke Kyohere
The global payments landscape is undergoing a rapid transformation. New technologies coupled with the rising demand for seamless, secure, and efficient transactions has spurred on an exciting new era of innovation and growth. With 2025 fast approaching, here are important trends that will shape the future of payments:
1. The rise of real-time payments
Until recently, real-time payments have been used in Africa for cross-border mobile money payments, but less so for traditional payments. We are seeing companies like Mastercard investing in this area, as well as central banks in Africa putting focus on this.
2. Cashless payments will increase
In 2025, we will see the continued acceleration of cashless payments across Africa. B2B payments in particular will also increase. Digital payments began between individuals but are now becoming commonplace for larger corporate transactions.
3. Digital currency will hit mainstream
In the cryptocurrency space, we will see an increase in the use of stablecoins like United States Digital Currency (USDC) and Tether (USDT) which are linked to US dollars. These will come to replace traditional cryptocurrencies as their price point is more stable. This year, many countries will begin preparing for Central Bank Digital Currencies (CBDCs), government-backed digital currencies which use blockchain.
The increased uptake of digital currencies reflects the maturity of distributed ledger technology and improved API availability.
4. Increased government oversight
As adoption of digital currencies will increase, governments will also put more focus into monitoring these flows. In particular, this will centre on companies and banks rather than individuals. The goal of this will be to control and occasionally curb runaway foreign exchange (FX) rates.
5. Business leaders buy into AI technology
In 2025, we will see many business leaders buying into AI through respected providers relying on well-researched platforms and huge data sets. Most companies don’t have the budget to invest in their own research and development in AI, so many are now opting to ‘buy’ into the technology rather than ‘build’ it themselves. Moreover, many businesses are concerned about the risks associated with data ownership and accuracy so buying software is another way to avoid this risk.
6. Continued AI Adoption in Payments
In payments, the proliferation of AI will continue to improve user experience and increase security. To detect fraud, AI is used to track patterns and payment flows in real-time. If unusual activity is detected, the technology can be used to flag or even block payments which may be fraudulent.
When it comes to user experience, we will also see AI being used to improve the interface design of payment platforms. The technology will also increasingly be used for translation for international payment platforms.
7. Rise of Super Apps
To get more from their platforms, mobile network operators are building comprehensive service platforms, integrating multiple payment experiences into a single app. This reflects the shift of many users moving from text-based services to mobile apps. Rather than offering a single service, super apps are packing many other services into a single app. For example, apps which may have previously been used primarily for lending, now have options for saving and paying bills.
8. Business strategy shift
Recent major technological changes will force business leaders to focus on much shorter prediction and reaction cycles. Because the rate of change has been unprecedented in the past year, this will force decision-makers to adapt quickly, be decisive and nimble.
As the payments space evolves, businesses, banks, and governments must continually embrace innovation, collaboration, and prioritise customer needs. These efforts build a more inclusive, secure, and efficient payment system that supports local to global economic growth – enabling true financial inclusion across borders.
Luke Kyohere is the Group Chief Product and Innovation Officer at Onafriq
Feature/OPED
Ghana’s Democratic Triumph: A Call to Action for Nigeria’s 2027 Elections
In a heartfelt statement released today, the Conference of Nigeria Political Parties (CNPP) has extended its warmest congratulations to Ghana’s President-Elect, emphasizing the importance of learning from Ghana’s recent electoral success as Nigeria gears up for its 2027 general elections.
In a statement signed by its Deputy National Publicity Secretary, Comrade James Ezema, the CNPP highlighted the need for Nigeria to reclaim its status as a leader in democratic governance in Africa.
“The recent victory of Ghana’s President-Elect is a testament to the maturity and resilience of Ghana’s democracy,” the CNPP stated. “As we celebrate this achievement, we must reflect on the lessons that Nigeria can learn from our West African neighbour.”
The CNPP’s message underscored the significance of free, fair, and credible elections, a standard that Ghana has set and one that Nigeria has previously achieved under former President Goodluck Jonathan in 2015. “It is high time for Nigeria to reclaim its position as a beacon of democracy in Africa,” the CNPP asserted, calling for a renewed commitment to the electoral process.
Central to CNPP’s message is the insistence that “the will of the people must be supreme in Nigeria’s electoral processes.” The umbrella body of all registered political parties and political associations in Nigeria CNPP emphasized the necessity of an electoral system that genuinely reflects the wishes of the Nigerian populace. “We must strive to create an environment where elections are free from manipulation, violence, and intimidation,” the CNPP urged, calling on the Independent National Electoral Commission (INEC) to take decisive action to ensure the integrity of the electoral process.
The CNPP also expressed concern over premature declarations regarding the 2027 elections, stating, “It is disheartening to note that some individuals are already announcing that there is no vacancy in Aso Rock in 2027. This kind of statement not only undermines the democratic principles that our nation holds dear but also distracts from the pressing need for the current administration to earn the trust of the electorate.”
The CNPP viewed the upcoming elections as a pivotal moment for Nigeria. “The 2027 general elections present a unique opportunity for Nigeria to reclaim its position as a leader in democratic governance in Africa,” it remarked. The body called on all stakeholders — including the executive, legislature, judiciary, the Independent National Electoral Commission (INEC), and civil society organisations — to collaborate in ensuring that elections are transparent, credible, and reflective of the will of the Nigerian people.
As the most populous African country prepares for the 2027 elections, the CNPP urged all Nigerians to remain vigilant and committed to democratic principles. “We must work together to ensure that our elections are free from violence, intimidation, and manipulation,” the statement stated, reaffirming the CNPP’s commitment to promoting a peaceful and credible electoral process.
In conclusion, the CNPP congratulated the President-Elect of Ghana and the Ghanaian people on their remarkable achievements.
“We look forward to learning from their experience and working together to strengthen democracy in our region,” the CNPP concluded.
Feature/OPED
The Need to Promote Equality, Equity and Fairness in Nigeria’s Proposed Tax Reforms
By Kenechukwu Aguolu
The proposed tax reform, involving four tax bills introduced by the Federal Government, has received significant criticism. Notably, it was rejected by the Governors’ Forum but was still forwarded to the National Assembly. Unlike the various bold economic decisions made by this government, concessions will likely need to be made on these tax reforms, which involve legislative amendments and therefore cannot be imposed by the executive. This article highlights the purposes of taxation, the qualities of a good tax system, and some of the implications of the proposed tax reforms.
One of the major purposes of taxation is to generate revenue for the government to finance its activities. A good tax system should raise sufficient revenue for the government to fund its operations, and support economic and infrastructural development. For any country to achieve meaningful progress, its tax-to-GDP ratio should be at least 15%. Currently, Nigeria’s tax-to-GDP ratio is less than 11%. The proposed tax reforms aim to increase this ratio to 18% within the next three years.
A good tax system should also promote income redistribution and equality by implementing progressive tax policies. In line with this, the proposed tax reforms favour low-income earners. For example, individuals earning less than one million naira annually are exempted from personal income tax. Additionally, essential goods and services such as food, accommodation, and transportation, which constitute a significant portion of household consumption for low- and middle-income groups, are to be exempted from VAT.
In addition to equality, a good tax system should ensure equity and fairness, a key area of contention surrounding the proposed reforms. If implemented, the amendments to the Value Added Tax could lead to a significant reduction in the federal allocation for some states; impairing their ability to finance government operations and development projects. The VAT amendments should be holistically revisited to promote fairness and national unity.
The establishment of a single agency to collect government taxes, the Nigeria Revenue Service, could reduce loopholes that have previously resulted in revenue losses, provided proper controls are put in place. It is logically easier to monitor revenue collection by one agency than by multiple agencies. However, this is not a magical solution. With automation, revenue collection can be seamless whether it is managed by one agency or several, as long as monitoring and accountability measures are implemented effectively.
The proposed tax reforms by the Federal Government are well-intentioned. However, all concerns raised by Nigerians should be looked into, and concessions should be made where necessary. Policies are more effective when they are adapted to suit the unique characteristics of a nation, rather than adopted wholesale. A good tax system should aim to raise sufficient revenue, ensure equitable income distribution, and promote equality, equity, and fairness.
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