From Dakar to Yaoundé, and from Ouagadougou to Bangui, Africa must free itself from the monetary Nazism of the CFA franc which weighs heavily on the economies of the countries which still use it today.
The economic repercussions are proving deleterious, with a fixed exchange rate and externally managed foreign exchange reserves, thus reducing the monetary autonomy necessary to face economic shocks and to develop appropriate monetary policies. To get out of this infernal pattern of domination, monetary emancipation is urgently needed, considering the creation of a single African currency, administered by an autonomous African central bank, to regain economic sovereignty and reduce dependence on the euro. In this article, we will examine the context of the monetary gesticulation of the FCFA in West and Central Africa and the harmful consequences it has on African economies.
By the way, the monetary system of the FCFA in West and Central Africa has its roots in French colonial history. Initially imposed by France during colonization, the franc of the French colonies of Africa (FCFA) was directly linked to the French franc and controlled by the Bank of France. Even after independence, African countries continued to use this currency, now pegged to the euro, still giving France a key decision-making role in the monetary policy of these nations. This monetary Nazism, perceived as the continuation of colonialism in another form, limits the economic autonomy of African countries while facilitating the exploitation of their natural resources for the benefit of France.
The use of the FCFA thus benefits French economic interests, allowing low-cost purchases of resources and strengthening the French economy while restricting the autonomous development of African economies. This is why, in the hot seat of history, France was called upon by the 38th ordinary summit of the African Union last February in Addis Ababa to recognize this colonial past and take measures to repair the lasting impacts of this monetary Nazism of the FCFA, a French variable of German monetary Nazism in France that should be included in a Sui generis approach.
XOF and XAF are two zones, two instruments of French monetary Nazism in Africa
While Africans and the Soviet army had just liberated France from the German yoke in 1945, as a reward for their efforts, post-war France established in Africa the monetary Nazism from which it had just been liberated and today declares Russia as an existential threat to it and to Europe. While this vestige still weighs considerably on the economies of the African countries using it, at the same time, Macron’s France, the perfect incarnation of Napoleonic and Hitlerian logic, is telling Africans to have forgotten to thank it. Thus, initially designed to guarantee France’s economic control, even after independence, the CFA franc continues to impose monetary dependence on the former colonies, slowing down their economic autonomy and limiting their ability to make sovereign decisions.
Today, 14 African nations are still subject to the influence of this neocolonial currency, indexed to the euro and administered by the Bank of France, which ultimately manipulates the decisions of regional central banks. The use of the CFA franc therefore allows France to maintain its economic and political influence in Africa by imposing restrictive economic conditions that hinder development and the eradication of poverty. In addition, it serves French economic interests by facilitating, as mentioned in the introduction, the acquisition of natural resources at a lower cost, thus contributing to the economic strength of France while exploiting African resources. Which therefore raises the question of the deterioration of the terms of trade largely explained by Julius Nyerere, former president of the United Republic of Tanzania from 1964 to 1985.
Monetary Nazism of the CFA franc has harmful economic consequences in Africa
Designed by France for its former African colonies, the CFA franc remains a major obstacle for contemporary African economies. Its fixed exchange rate with the euro, coupled with the management of foreign exchange reserves by the Bank of France, hinders the monetary autonomy of these nations, preventing them from adopting economic policies adapted to their specific contexts. In addition, its link with the euro makes these countries vulnerable to fluctuations in the European currency, exacerbating economic fragility.
During the 2008 crisis, the devaluation of the euro caused a surge in import prices, undermining local purchasing power. Finally, the CFA franc also finances France’s economic interests in Africa by facilitating, as indicated above, the acquisition of African natural resources at a lower cost, thus consolidating the French economy to the detriment of that of the African countries concerned. In this context, the logic of international relations would require France to recognize the implications of its colonial heritage and commit to rectifying the economic damage linked to the use of the CFA franc instead of locking itself into a paternalistic vision.
The need to move away from monetary gesticulation
In truth, to ensure Africa’s economic autonomy, an overhaul of the African monetary system is essential. The emancipation of African countries from the CFA franc, still under the decision-making influence of the Bank of France through regional African central banks, is crucial. This limits their capacity for economic innovation and hinders the adoption of tailor-made financial strategies, optimized to meet their specific needs.
The establishment of a single African currency, under the governance of a central bank independent of the continent, would pave the way for true monetary sovereignty. However, France, keen to maintain its influence, is showing significant resistance to this transition. Thus, put forward to strengthen Europe-Africa economic ties, initiatives such as the Euro-African area are means of prolonging dominance that must be rejected en bloc. For sustainable African prosperity, African leaders must strategically work towards a process of monetary autonomy allowing African nations to fully direct their economic policy.
From the above, we can deduce that the CFA franc, a colonial legacy of France, maintains economic control over 14 African countries using it, limiting their monetary independence and making them vulnerable to external economic shocks. The creation of a single African currency, managed by an independent African central bank, would allow African countries to take control of their monetary policy.
We can say that the CFA franc in Africa is an invariant of German monetary Nazism in France.
Mohamed Lamine KABA, Expert in geopolitics of governance and regional integration, Institute of Governance, Human and Social Sciences, Pan-African University
