Mali, Burkina Faso, and Niger, neighboring nations in West Africa, have declared a 0.5% import tax on goods. The initiative seeks to fund the establishment of a new union among the three countries following the nation’s withdrawal from the broader regional economic bloc, as detailed in an official statement.
The tax, finalized on Friday, will take effect immediately, covering all goods imported from outside the three countries, except for humanitarian aid. According to the statement, the revenue will be allocated to ‘fund the activities’ of the union, though no specific details were disclosed.
The move marks the end of free trade in West Africa, which had previously been facilitated by the Economic Community of West African States (ECOWAS). It highlights the growing divide between the three nations located along the Sahara Desert and major southern democracies like Nigeria and Ghana.
The Alliance of Sahel States, established in 2023, initially served as a security pact among the military leaders of the three nations. Over time, it has evolved into a potential economic union, introducing initiatives like biometric passports and strengthened collaboration in economic and military affairs.
Last year, the military juntas of the three nations revealed the intention to withdraw from ECOWAS, accusing the bloc of inadequately supporting the nation’s efforts to combat Islamist insurgents and address insecurity. ECOWAS imposed economic, political, and financial sanctions on the three nations in an effort to pressure them into restoring constitutional governance. However, the actions have yielded minimal results.
As the Sahel trio moves forward with initiatives like biometric passports and closer military and economic cooperation, the new import tax represents a significant stride toward achieving financial and political autonomy.
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