What impact is the new 0.5 % tax on imports will the economy of AES countries?


** Burkina Faso, Mali and Niger: a new customs era for an evolution confederation **

On October 7, 2023, the announcement of a new customs right of 0.5 % on products imported from the non -members of the Alliance of the Sahel States (AES) by Burkina Faso, Mali and Niger raised crucial issues not only on its immediate economic impact, but also on the socio -political implications of such a decision. Regularly criticized for its instability, the Sahel region finds in the creation of this confederal levy an opportunity to assert its economic autonomy while reaffirming the growing need for regional solidarity.

### ** A customs paradigm change **

At first glance, the confederal AES levy is not a simple tax formality. By keeping the product of this customs right within the borders of AES, this mechanism creates a marked precedent: each Member State will now have a share of customs income that can enrich its own chests, encourage the development of infrastructure and strengthen economic self -sufficiency. This economic model could, according to some experts, inspire other regional cooperation initiatives on the African continent.

### ** Comparison with other African initiatives **

To understand the scope of this initiative, it is interesting to put it into perspective with other African regional projects. Take the example of the Economic Community of West African States (ECOWAS) and the African continental free trade area (ZLECAF). While ECOWAS aims to create a common market, the ZLECAF offers an ambitious framework for intensifying interafican exchanges. The AES model, with its customs sample, perhaps represents an alternative form of integration which promotes internal income from the dependence of aid or bilateral agreements.

### ** Risk of economic fragmentation? **

However, this approach also raises concerns. By establishing a differentiated taxation towards certain countries, there is a risk of economic fragmentation within the West African region. Products from countries like Ghana or Nigeria, although potentially more expensive to import due to this new tax, could encourage commercial friction. Even more, how will the AU (African Union) understand this new dynamic, and what will its impact on long-term regional cooperation? Fragmentation could also promote the emergence of influence areas, exacerbate tensions or feed protectionist practices prejudicial to the true growth in intra-African trade.

### ** Sociopolitical dimensions and reactions of local populations **

On the socio -political level, this measure is a test for the legitimacy of military leaders in power. Assimi Goïta, in his capacity as president of the AES, must demonstrate that this sample, while seeming technical, turns into a lever for confidence for citizens. In a context where popular satisfaction is threatened by multiple social and economic crises, governments of the region must work hard to justify that this tax will not result in an increase in prices on local markets.

During recent demonstrations in favor of the exit of ECOWAS, a central aspect of discourse was economic sovereignty and the will to make a common front against external interference. The population sees on this initiative a first step towards the management of its own destiny, but it is crucial that these changes result in tangible profits for the economy of these countries.

### ** The future of AES: a road strewn with pitfalls? **

Thinking about the viability of AES requires considering the long term: what are the impacts of this customs policy on sustainable development, social inequalities and agricultural self -sufficiency? The question of transparency in the use of funds thus collected will be crucial to maintain the confidence of citizens, often hesitant to support initiatives perceived as a simple reaffirmation of military power.

The 0.5 % customs direct debit on imported products marks a significant step in the evolution of economic relations within the Sahel, a space where cooperation is more essential. However, it is imperative that the AES states act with caution and responsibility, in order to avoid replicating past errors that led to social discomfort and economic suffering on the continent. The future of this Confederation is based on a fragile balance between policy, economics and individual aspirations of the populations it represents.

Fatshimetrics will continue to follow the consequences of this initiative, providing relevant analyzes of future developments in the region.

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